Document:

EXHIBIT 10.55

                             THE NEPTUNE SOCIETY, INC.           Debenture No. 2
                              A Florida Corporation

                         AMENDED AND RESTATED DEBENTURE

THE SECURITIES  REPRESENTED BY THIS DEBENTURE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES  ACT OF 1933 (THE "ACT") OR  APPLICABLE  STATE  SECURITIES  LAWS (THE
"STATE  ACTS"),  AND  SHALL  NOT BE SOLD,  PLEDGED,  HYPOTHECATED,  DONATED,  OR
OTHERWISE  TRANSFERRED  (WHETHER OR NOT FOR  CONSIDERATION) BY THE HOLDER EXCEPT
UPON THE ISSUANCE TO THE  CORPORATION  OF A FAVORABLE  OPINION OF ITS COUNSEL OR
SUBMISSION TO THE  CORPORATION OF SUCH OTHER EVIDENCE AS MAY BE  SATISFACTORY TO
COUNSEL FOR THE  CORPORATION,  TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE
IN VIOLATION OF THE ACT AND THE STATE ACTS.

                                  July 31, 2003

US$2,352,896

     THE NEPTUNE SOCIETY,  INC., a Florida corporation (the  "Corporation"),  is
indebted  and, for value  received,  promises to pay to or to the order of D. H.
Blair  Investment  Banking  Corp.,  a New York  corporation  (together  with any
successor  thereto and any other person who becomes a holder of this Amended and
Restated  Debenture,  "DHB"),  on July 31,  2007 (the "Due Date")  (unless  this
Debenture   shall  have  been  repaid  sooner  or  the  amount  owing  hereunder
accelerated  upon the  occurrence of a Default Event as  hereinafter  provided),
upon  presentation  of this  Debenture,  Two  Million  Three  Hundred  Fifty Two
Thousand  Eight  Hundred  Ninety  Six  Dollars  (US$2,352,896)  (the  "Principal
Amount") and to pay interest on the Principal Amount at the rate of thirteen per
cent (13%) per annum as provided  herein.  This Amended and  Restated  Debenture
restates and  supercedes  in its entirety  that  Debenture  No. 2 payable to the
order of DHB dated December 24, 1999, as amended.

     The Corporation has issued this Amended and Restated  Debenture pursuant to
and subject to the terms and  conditions  of a Debenture  Purchase and Amendment
Agreement  dated as of July 31,  2003,  among the  Corporation,  CapEx  L.P.,  a
Delaware  limited  partnership  ("CapEx"),  and DHB (the "Purchase and Amendment
Agreement").  The Purchase and Amendment  Agreement  provides  for,  among other
items,  (a) the  amendment  of the  terms  of that  certain  Debenture  Purchase
Agreement  among the  Corporation,  CapEx and DHB dated  November  24, 1999 (the
"Debenture Purchase Agreement") and that certain Debenture and Warrant Amendment
Agreement dated effective  December 31, 2001, among the Corporation,  CapEx, and
DHB (the "First  Amendment  Agreement");  (b) the additional cash advance of One
Million Five Hundred Thousand Dollars (US$1,500,000) by CapEx to the Corporation
(the "Additional  Advance");  (c) the  cancellation of that certain  Convertible
Debenture  No. 1 issued by the  Corporation  to CapEx in the  initial  principal
amount of Three Million Dollars (US$3,000,000) (the "Original CapEx Debenture");
(d) the cancellation of that certain  Convertible  Debenture No. 2 issued by the
Corporation to DHB in the initial principal amount of

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Two Million  Dollars  (US$2,000,000)  (the  "Original DHB  Debenture");  (e) the
issuance of this  Debenture  to DHB;  (f) the  issuance  of a  Debenture  in the
principal amount of Five Million  Twenty-Nine  Thousand Three Hundred Forty Four
Dollars  (US$5,029,344)  to CapEx (the "CapEx Amended and Restated  Debenture");
(g) the  amendment of that certain  Security  Agreement  among the  Corporation,
CapEx and DHB  dated  December  24,  1999;  (h) the  amendment  of that  certain
Security  Agreement among Neptune Society of America,  Inc., CapEx and DHB dated
December 24, 1999; (i) the amendment of that certain  Security  Agreement  among
Neptune  Management  Corp.,  CapEx  and DHB dated  December  24,  1999;  (j) the
amendment of that certain Security Agreement among Heritage Alternatives,  Inc.,
CapEx and DHB dated  December 24, 1999;  (k) the  amendment of those certain two
warrants dated December 24, 1999 and issued to CapEx; (l) the amendment of those
certain two  warrants  dated  December  24, 1999 and issued to DHB;  and (m) the
execution of the Guaranty  Agreement  and the Security  Agreement  among Trident
Society,  Inc., CapEx and DHB dated July 31, 2003. Pursuant to the provisions of
Section 8 of the Debenture Purchase Agreement,  Section 8 of the First Amendment
Agreement, and Section 9 of the Purchase and Amendment Agreement, CapEx has been
appointed by each  purchaser  thereunder  of a Debenture as its agent,  (in such
capacity,  "Agent")  for the  purposes,  inter alia of electing to exercise  the
rights of DHB under this Debenture, and in connection therewith, the Corporation
shall, in respect of all of its obligations under this Debenture, be entitled to
rely upon the grant and  delegation  of authority to Agent  provided for in such
agreements,  and to deal with Agent without further inquiry, with respect to all
such  obligations  owed by it under this  Debenture  to DHB  (including  without
limitation  all  obligations  of the  Corporation to make payments on account of
principal or interest hereunder).

     The Corporation covenants, promises and agrees as follows:

1.   Interest

     1.1 Interest.  Subject to Section 1.2,  interest  which shall accrue on the
Principal Amount shall be payable as follows:

          (a) From August 1, 2003, until the Due Date, interest shall be paid at
the rate of thirteen  percent  (13%) per annum (such  portion of interest  being
hereinafter   sometimes  referred  to  as  "Interest")  in  arrears  in  monthly
installments  on the first day of each  month in each and  every  calendar  year
until the Principal  Amount and all accrued and unpaid  interest shall have been
paid in full as herein provided.

          (b) Any overdue  installment  of Interest  shall bear  interest at the
aforesaid rate of thirteen percent (13%),  compounded  monthly, on each interest
payment date,  until paid.  All accrued and unpaid  interest shall be payable on
the Due Date or such earlier date on which the Principal Amount shall become due
and payable as herein  provided.  All payments of principal or interest shall be
made  to DHB at 44 Wall  Street,  Second  Floor,  New  York,  New  York,  10005,
Attention: Martin Bell, or at such other place as may be designated by DHB.

     1.2  Default  Interest.  In the event that a Default  Event (as  defined in
Section  7.1) shall occur,  and for so long as such  Default  Event shall remain
unremedied  and Agent  shall not have waived the same,  all amounts  owing under
this Amended and Restated Debenture, whether in respect of the Principal Amount,
Interest or otherwise, shall bear additional interest ("Default

                                       2
<PAGE>

Interest") in addition to the interest  hereinbefore provided for at the rate of
two percent (2%) per month,  compounded  monthly  (or, if such Default  Interest
rate  exceeds  the  maximum  interest  allowed by law, in which case the rate of
Default Interest shall be adjusted to the maximum permitted under applicable law
during the period or periods that the Default  Interest rate otherwise  provided
herein would exceed such rate),  which Default Interest shall be payable on each
interest payment date on which Interest shall be payable,  with Default Interest
accruing on any accrued and unpaid Interest.

2.   Payment of Principal and Interest.

     2.1 Monthly Payments. On the first Business Day of each month, beginning on
September 1, 2003,  the  Corporation  shall make  monthly  payments in an amount
equal to One Hundred  Twenty-Five  Thousand  Dollars  ($125,000.00)  (e.g.,  the
Corporation  shall make level  monthly  debt service  payments in the  aggregate
amount  of  $125,000.00  throughout  the  term  of  this  Amended  and  Restated
Debenture)(the  "Monthly Payments"),  payable as set forth in Section 2.4 below.
"Business  Day"  means any day except a  Saturday,  Sunday or other day on which
commercial banks in Denver, Colorado are authorized by law to close.

     2.2  Periodic  Lump Sum  Payments.  In addition to the payment set forth in
Section  2.1,  the  Corporation  shall  make the  following  aggregate  lump sum
payments on the following  dates (the  "Periodic Lump Sum Payments") and payable
as set forth in Section 2.4 below:

                  December 31, 2003         $250,000
                  July 31, 2004             $750,000
                  July 31, 2005             $700,000
                  July 31, 2006             $1,300,000
                  July 31, 2007             Full remaining balance due

     2.3 Excess Cash Flow  Payments.  In addition to the  payments  set forth in
Sections  2.1 and 2.2,  the  Corporation  shall  make an  additional  payment of
principal  within  forty-five  (45) days of the end of each fiscal quarter in an
amount equal to fifty  percent (50%) of the  Corporation's  Cash Increase in the
Period on its  Consolidated  Statement of Cash Flows,  calculated  in accordance
with generally accepted accounting  principles in the United States ("GAAP") and
as prepared for filing with the United States Securities and Exchange Commission
for that fiscal quarter (the "Excess Cash Flow Payments"),  payable as set forth
in Section 2.4 below.  The first Excess Cash Flow  Payment  shall be paid within
forty-five  (45) days of the fiscal  quarter  ending  September 30, 2003. In the
event that the Corporation  experiences a decrease in cash for a fiscal quarter,
the decrease will be offset  against cash  increases in  immediately  succeeding
quarters  until fully applied  before any further  Excess Cash Payments shall be
made. For example,  if the  Corporation  shows a Cash Increase for the Period of
$500,000  in quarter  one,  the  Corporation  would pay DHB (or,  as  applicable
pursuant to the  provisions  of Section 2.4, the holder of the CapEx Amended and
Restated  Debenture)  $250,000.  If in quarter  two,  the Cash  Increase for the
period is a negative $200,000, there is no Excess Cash Flow Payment due for that
quarter.  In quarter three, if there is a $500,000 Cash Increase for the Period,
the Cash  Increase  for the Period for purposes of this Excess Cash Flow Payment
would be reduced  by  $200,000  to apply the  decrease  from the prior  quarter.
Therefore,  the  Excess  Cash  Flow  Payment  would  be fifty  percent  (50%) of
$300,000, or $150,000.

                                       3
<PAGE>

     2.4 Allocation of Payments. Notwithstanding anything to the contrary herein
or in the CapEx Amended and Restated  Debenture,  the  Corporation  shall not be
required to make concurrent  payments  pursuant to Sections 2.1, 2.2, and 2.3 of
both this  Amended and  Restated  Debenture  and the CapEx  Amended and Restated
Debenture (collectively, the "Amended and Restated Debentures"). Notwithstanding
anything to the contrary in the Amended and Restated Debentures, all payments to
be made  pursuant  to Sections  2.1,  2.2,  and 2.3 of the Amended and  Restated
Debentures, and all prepayments made pursuant to Section 6.1 of both Amended and
Restated Debentures (the "Principal  Pre-payments") shall be made and applied to
amounts  due under the  Amended and  Restated  Debentures  as follows and in the
following order:

     (a)  first,  to CapEx and DHB in an amount  equal to the accrued and unpaid
          interest  due  under  Section  1 of the  CapEx  Amended  and  Restated
          Debenture and under  Section 1 of this Amended and Restated  Debenture
          (such  payments  to be paid on a pro rata basis to CapEx and DHB based
          on to the amount of  outstanding  principal due under this Amended and
          Restated  Debenture and under the CapEx Amended and Restated Debenture
          as of the date of the particular payment),

     (b)  second,  solely  to CapEx (i) to reduce  the  principal  amount of the
          CapEx  Amended and Restated  Debenture and (ii) to pay all accrued and
          outstanding  Interest,  Default  Interest  and costs and  expenses  of
          collection  under the CapEx Amended and Restated  Debenture  until the
          principal balance of the CapEx Amended and Restated Debenture has been
          reduced   by  an   amount   equal   to   the   Additional   Investment
          (US$1,500,000),

     (c)  third,  solely  to DHB (i) to  reduce  the  principal  amount  of this
          Amended  and  Restated  Debenture  and  (ii)  to pay all  accrued  and
          outstanding  Interest,  Default  Interest  and costs and  expenses  of
          collection  under  this  Amended  and  Restated  Debenture  until this
          Amended and Restated Debenture has been paid in full, and

     (d)  fourth,  solely  to CapEx (i) to reduce  the  principal  amount of the
          CapEx  Amended and Restated  Debenture and (ii) to pay all accrued and
          outstanding  Interest,  Default  Interest  and costs and  expenses  of
          collection  under the CapEx Amended and Restated  Debenture  until the
          Principal  Amount and all of the CapEx Amended and Restated  Debenture
          has been paid in full.

     All  payments  shall be applied  first to  satisfy  costs and  expenses  of
collection,  then default interest, then accrued interest, then principal.  Upon
full and  complete  satisfaction  of all  obligations  under  this  Amended  and
Restated  Debenture,  the Holder  shall  surrender  this  Amended  and  Restated
Debenture for  cancellation  and the  concurrent  obligations  to DHB under this
Amended and Restated Debenture shall terminate.

     2.5 All payments shall be in lawful money of the United States of America.

                                       4
<PAGE>

3.   [Intentionally Deleted]

4.   First Right of Refusal

     4.1  First  Right  of  Refusal  Whenever  the  Board  of  Directors  of the
Corporation  shall  authorize the issuance of shares of Common Stock,  any other
securities of the Corporation entitled to participate with the Common Stock in a
distribution of the  Corporation's  remaining assets (after  distribution to all
holders of securities  entitled to such  distribution in priority to the holders
of Common Stock), or any rights,  options or warrants to purchase, or securities
of any type  whatsoever  (except  for stock  options to  employees,  officers or
directors of the  Corporation  or any of its  subsidiaries  pursuant to employee
stock  option  plans  approved  of by Agent not to exceed  10% of the issued and
outstanding  shares of Common Stock) that are, or may become,  convertible into,
or exchangeable for, securities of the type referred to in Section 4.1(a) or (b)
(hereinafter  collectively  referred  to as  "Equity  Securities"),  the  Equity
Securities  shall  first be offered  ratably to the  holders of the  Amended and
Restated  Debentures on the date of the  authorization by the Board of Directors
of such issuance (the "First  Rights").  DHB and the holder of the CapEx Amended
and  Restated  Debenture  (each,  a "First  Rightholder")  shall be  entitled to
exercise  First  Rights for that number of such Equity  Securities  equal to the
greater  of  (1)  their   aggregate   percentage   ownership   interest  in  the
Corporation's  issued and outstanding shares of Common Stock on the day prior to
the  issuance  ("Pro  Rata  Interest")  or (2)  their  aggregate  fully  diluted
percentage  ownership  of shares of the  Corporation's  Common  Stock on the day
prior  to  the  issuance  ("Fully  Diluted  Pro  Rata  Interest").   Each  First
Rightholder  shall be entitled to exercise the First Rights provided herein with
respect  to the  whole of such  Pro Rata  Interest  or  Fully  Diluted  Pro Rata
Interest,  as the  case  may  be,  or  with  respect  to  only  a part  thereof.
Immediately  after Closing (as defined in the  Debenture  Purchase and Amendment
Agreement),   CapEx's  and  DHB's  Fully  Diluted  Pro  Rata  Interest  will  be
14.94887931%  and  9.36121885%,  respectively,  based on 5,773,205  total shares
issued and  outstanding  and 11,024,793  total fully diluted shares  immediately
prior to the Closing of the  transactions  contemplated  by this  Agreement,  as
reflected  in  Exhibit J to the  Purchase  and  Amendment  Agreement.  The Fully
Diluted  Pro Rata  Interest  held by each of CapEx and DHB  shall be  determined
based on the ratio calculated as follows:

<TABLE>
<S>                       <C>                                    <C>            <C>
                          (A) the number of shares of Common                    (A) the number of shares of issued
                          Common Stock owned by CapEx or                        and outstanding Common Stock, plus
Fully Diluted             DHB, as applicable, plus (B) the       divided by     (B) the total number of shares
Pro Rata Interest  =      number of shares acquirable upon                      acquirable upon exercise of issued
                          exercise of convertible securities                    and outstanding convertible securities
                          (including convertible debentures,                    of the Corporation (including convertible
                          convertible notes, warrants and                       debentures, convertible notes, warrants
                          options) by CapEx or DHB, as                          warrants and options)
                          applicable
</TABLE>

     4.2 Consideration for Equity  Securities.  The First Rights provided for in
this Section 4.2 shall entitle Holder to subscribe for,  purchase,  or otherwise
acquire any Equity  Securities  to be offered for sale, at a price or prices not
less  favorable  than the price or prices at which such  Equity  Securities  are
proposed  to be  offered  for  sale  to  others  (net  of any  expenses  of,  or
compensation  for,  underwriting  or  purchase  of  such  Equity  Securities  by
underwriters or

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<PAGE>

dealers). In the event that the Corporation proposes to offer for sale to others
any Equity  Securities for a  consideration  other than cash,  such First Rights
shall be exercisable by a First  Rightholder  for cash, in an amount which shall
equal the Fair Market Value of any  consideration  other than cash determined in
accordance with Section 8.1. The holders of the Amended and Restated  Debentures
may elect to apply  outstanding  Interest  due under the  Amended  and  Restated
Debentures  towards  the  payment of the  purchase  price from such  equity upon
exercise of first right to  participate,  or may elect to  participate by paying
cash.  DHB  shall  notify  the   Corporation  in  writing  of  its  election  to
participate, and the means by which it elects to participate,  within 10 days of
being  notified  of the  Corporation's  plans to offer an equity  financing,  in
accordance with Section 4.4 below.

     4.3 Issuance Notice.  The Corporation shall, on the 10th business day after
the date of authorization of the issuance of any Equity Securities,  give notice
to Agent (the "Issuance  Notice") of such  authorization,  which Issuance Notice
shall  specify the number of shares of Equity  Securities  to be issued,  a full
description of such class of Equity Securities and the offering price thereof.

     4.4 Acceptance or Decline of Offer.  The First Rights  granted  pursuant to
this  Section  4.4 with  respect  to any Equity  Securities  to be issued by the
Corporation shall be exercised by the First Rightholder by the giving of written
notice by Agent of such  exercise  within 10 business days after receipt by such
Holder of the  Issuance  Notice (the "First  Rights  Period").  In the event any
First Rightholder fails or declines to purchase his/her  proportionate  share of
the  Equity  Securities  so  offered  (a  "Declining  Rightholder"),  the Equity
Securities not purchased by the Declining Rightholders shall be offered to those
First Rightholders who shall have duly exercised their First Rights with respect
to that issue (the "Accepting  Rightholders").  Each Accepting Rightholder shall
be entitled to purchase the Equity  Securities  not  purchased by the  Declining
Rightholders  (the "Reoffered  Securities")  in the proportion  which the Equity
Percentage  of the  Accepting  Rightholder  bears to the aggregate of the Equity
Percentages  of  all  Accepting  Rightholders;   provided,  however,  that  each
Accepting  Rightholder  shall be entitled to exercise  his/her  First  Rights to
purchase   Reoffered   Securities  only  with  respect  to  the  whole  of  such
proportionate  share thereof and not with respect to only a part thereof. On the
10th  business  day  after  the  expiration  of the  First  Rights  Period,  the
Corporation  shall give notice (the "Reoffer  Notice") to Agent of the amount of
Reoffered Securities available for purchase.

     4.5 Acceptance or Decline of Reoffered Securities. The First Rights granted
with  respect to the  Reoffered  Securities  shall be exercised by the giving of
notice by Agent on behalf of an Accepting  Rightholder of such exercise within 5
business  days after  receipt by the Agent of the Reoffer  Notice.  In the event
that  any  Accepting   Rightholder  fails  or  declines  to  purchase  his/  her
proportionate  share  of  such  Reoffered  Securities,   then  such  unpurchased
Reoffered   Securities   shall  continue  to  be  offered  in  the  same  manner
proportionately  to those Accepting  Rightholders on whose behalf Agent properly
exercised  their  rights to purchase  the  Reoffered  Securities  most  recently
offered to them,  until such time as all of the Equity  Securities  to be issued
have been purchased or all Accepting  Rightholders shall have failed or declined
to purchase any of the Reoffered  Securities  most recently  offered to them, at
which time the First Rights  granted by this Section 4 shall have been exhausted
with respect to that particular issue of Securities.

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<PAGE>

     4.6 Termination of First Right.  The First Rights granted to DHB under this
Section 4 shall  terminate  immediately  upon the  repayment of this Amended and
Restated  Debenture.  However,  to avoid any confusion,  the parties acknowledge
that those First  Rights  granted to DHB under  Section ___ of the  Purchase and
Amendment  Agreement shall continue,  as set forth in the Purchase and Amendment
Agreement,  until the later of (a) July 31,  2008,  or (b) the date this Amended
and Restated Debenture is paid in full.

5.   Covenants of the Corporation

     The Corporation hereby covenants and agrees with Holder that so long as any
of the Principal Amount or any Interest or Default Interest remains unpaid:

     5.1 To Pay Indebtedness. The Corporation will well, duly and punctually pay
or cause to be paid to Holder all  indebtedness  due  hereunder at the dates and
places,  in the currencies and in the manner  mentioned  herein.  On the date of
this  Amended and  Restated  Debenture,  the  Corporation  shall pay in full all
principal, interest and other amounts outstanding under the Weintraub Obligation
(as defined in the Purchase and Amendment Agreement).

     5.2 To Maintain  Existence.  The  Corporation  will, and will cause each of
Neptune Society of America, Inc., a California  corporation,  Neptune Management
Corp.,  a California  corporation,  Neptune  Pre-Need  Plan,  Inc., a California
corporation,   Heritage  Alternatives,   Inc.,  and  Trident  Society,  Inc.,  a
California  corporation  (collectively,  the  "Subsidiaries")  to,  at all times
maintain its corporate existence.

     5.3 To Carry on Its Business.  The Corporation will, and will cause each of
the Subsidiaries to, carry on its business in a proper and efficient manner, and
will keep or cause to be kept  proper  books of account  and make or cause to be
made therein true and faithful entries of all material dealings and transactions
in  relation  to its  business  and  will  make  available  or  cause to be made
available such books of account for inspection by Holder and its representatives
during normal business hours.

     5.4 To Pay  Taxes.  The  Corporation  will,  and  will  cause  each  of the
Subsidiaries to, pay or cause to be paid all taxes,  rates,  government fees and
dues  levied,  assessed  or imposed  upon it and upon its  property  or any part
thereof,  as and when the same become due and payable,  save and except when and
so  long  as  the  validity  of any  such  taxes,  rates,  fees,  dues,  levies,
assessments or imposts is in good faith by proper legal proceedings contested by
it in which  event it shall  satisfy  Agent and if  requested  by Agent  furnish
security satisfactory to Agent that such contestation will involve no forfeiture
of any of its property and to duly observe and conform to all valid and material
requirements of any governmental  authority  relative to any of its property and
all covenants,  terms and  conditions  upon or under which such property is held
provided, however, that nothing herein contained shall require it to observe any
such  requirements  so long  as it  shall,  in good  faith,  be  contesting  its
obligation to observe such requirements.

     5.5 Not to Amend Articles or By-Laws.  The Corporation  shall not, and will
cause each of the  Subsidiaries  not to,  subsequent to the date of this Amended
and Restated Debenture,  without Agent's prior written consent, amend or restate
its articles of incorporation nor amend,

                                       7
<PAGE>

repeal,  replace or restate  any of its  by-laws or any  unanimous  shareholders
agreement relating to it.

     5.6 To Perform  Obligations and to Renew.  The  Corporation  will, and will
cause each of the  Subsidiaries  to,  from time to time  punctually  observe and
perform all material obligations and pay and discharge all amounts payable under
or by virtue of, and  defend,  and ensure the  enforceability  of any  exclusive
rights to, any patent, trademark, lease, license, concession, franchise or right
held by it so long as the same is of commercial value to it and during such time
will  not  suffer  or  permit  any  default  for  which  any of the  same may be
terminated  so that  its  interest  therein  may at all  times be  preserved  as
unimpaired;  provided  however that nothing herein  contained  shall require the
Corporation  or any  Subsidiary to make any such payments so long as it shall in
good faith contest its liability therefor.

     5.7 Not to Sell Assets, Issue Options,  Mergers, Etc. The Corporation shall
not, and will cause each of the Subsidiaries  not to,  subsequent to the date of
this Amended and Restated Debenture:

          (a)  sell, lease or otherwise  transfer the undertaking,  property and
               assets of any of its operating  divisions or  subsidiaries  as an
               entirety  or   substantially  as  an  entirety  in  one  or  more
               transactions,  or,  sell,  lease  or  otherwise  dispose  of  its
               undertaking,  property and assets as an entirety or substantially
               as an entirety or of its  controlling  interest in any subsidiary
               of the Corporation or any Subsidiary in one or more transactions;

          (b)  [Intentionally Deleted]

          (c)  in the case of each  Subsidiary,  issue  shares  of any  class of
               stock to any person other than the sole shareholder of all issued
               and outstanding stock prior thereto; or

          (d)  amalgamate  or merge  with any other  corporation  or effect  any
               corporate reorganization;

without the prior written consent of Agent.

     5.8  To  Repair.   The  Corporation  will,  and  will  cause  each  of  the
Subsidiaries  to, at all  times,  repair  and keep in repair  and good order and
condition,  or cause to be so  repaired  and kept in repair  and good  order and
condition, all buildings,  erections,  machinery, plant and equipment used in or
in connection  with its business which are necessary for efficient  operation up
to a modern standard of usage,  and renew and replace or cause to be renewed and
replaced  all  and  any  of  the  same  which  may  become  worn,   dilapidated,
unserviceable,  inconvenient, obsolete or destroyed, even by a fortuitous event,
fire or other cause,  and which are necessary for efficient  operation,  and, at
all  reasonable  times  during  normal  business  hours  allow Agent or its duly
authorized agent access to its premises in order to view the state and condition
of the same.

                                       8
<PAGE>

     5.9 To Insure.

          (a) Property Cover.  The Corporation  will, and will cause each of the
Subsidiaries to, insure at its own expense the assets of the Corporation or such
Subsidiary  at all  times  during  the term  hereof  to an  amount  equal to the
replacement  value thereof with a company or companies that are nationally known
or are approved by Agent, against loss or damage by fire, lightning,  explosion,
windstorm,  aircraft or vehicles or other insurable hazards which are now or may
hereafter  from time to time be insured  against by the terms of a standard fire
extended  coverage  insurance  or  additional  perils  supplemental  contract of
insurance including, if applicable, boiler and pressure vessel insurance against
loss or damage to property of a class or kind similar to the property and assets
of  the  Corporation.  The  Corporation  shall,  and  will  cause  each  of  the
Subsidiaries  to, also  maintain  such other  insurance  policies as Agent shall
reasonably  require in connection with the Corporation and the  Subsidiaries and
their business including,  without restriction,  business interruption insurance
and liability insurance.

          (b)  Renewal  Receipt.  The  Corporation  shall,  15 days prior to the
expiry of any insurance policy required hereby, deliver or cause to be delivered
to Agent a renewal  receipt,  binder or new policy,  or otherwise  satisfy Agent
that such insurance has been renewed.

     5.10 Compliance With Laws. The  Corporation  shall,  and will cause each of
the  Subsidiaries  to,  carry on its  business in material  compliance  with all
applicable laws, regulations,  by-laws and orders including, without limitation,
all laws relating to environment  protection,  the  maintenance  and disposal of
hazardous materials and wastes, land use and occupational safety and health. The
Corporation  shall  give  notice to Agent of any  notice  received  by it or any
Subsidiary  of any  material  violation  of such laws,  regulations,  by-laws or
orders  of  any  impending  or  threatened   investigations  or  proceedings  in
connection therewith or of any material  proceedings  commenced or threatened by
any other person in connection with environmental, health or safety matters.

     5.11 To Grant Security. To secure payment of its indebtedness,  liabilities
and obligations  under this Amended and Restated  Debenture (a) the Subsidiaries
have each delivered their guarantee agreements  ("Guarantees") to Agent; and (b)
the Corporation and the  Subsidiaries  have each executed and delivered to Agent
concurrently with this Amended and Restated Debenture  security  agreements (the
"Security  Agreements")  granting  to Agent a  security  interest  in all of the
Corporation's  and each  such  Subsidiary's  property  now  owned  or  hereafter
acquired.  At any and all times the Corporation will, and will cause each of the
Subsidiaries  to, at its expense,  do, execute,  acknowledge and deliver or will
cause to be done,  executed,  acknowledged  and  delivered  all and  every  such
further  mortgages,  security  agreements  or other  instruments,  transfers and
assurances  as Agent  shall  reasonably  require,  for the  purpose of giving to
Agent,  and preserving in favor of Agent, a valid mortgage or security  interest
of  the  nature  specified  in  the  Security   Agreements,   upon  all  of  the
Corporation's and the Subsidiaries' real and personal  property.  In particular,
without  restriction,   the  Corporation  will,  and  will  cause  each  of  the
Subsidiaries  to, upon request by Agent,  deliver a mortgage on any and all real
property  hereafter  acquired by the Corporation or any Subsidiary and, upon the
acquisition by the Corporation or such Subsidiary of any real property,  subject
only to  encumbrances  approved  of in writing  by Agent and other  encumbrances
permitted by Section 5.12. The Corporation shall not, and will cause each of the
Subsidiaries not to, at any time have its chief executive

                                       9
<PAGE>

office or assets (other than  inventory and mobile  equipment  used to transport
inventory)  having an aggregate  recorded book value to it in excess of $250,000
located in  jurisdictions  in which the Agent has not been given  prior  written
notice and the opportunity to first record or register the Security Agreement or
other  security  in  favor of Agent in all  appropriate  public  offices  at the
Corporation's expense.

     5.12 Not to Permit Encumbrances.  The Corporation shall not, and will cause
each of the  Subsidiaries  not to,  create  or  permit  to  exist  any  security
interest,  mortgage,  charge, pledge, lien or other encumbrance upon its assets,
subsequent to the date of this Amended and Restated Debenture, provided that the
foregoing shall not apply to prevent, and there shall be permitted:

          (a)  [Intentionally Deleted]

          (b)  (i) liens for  current  property  taxes not yet due and  payable,
               (ii) liens imposed by law and incurred in the ordinary  course of
               business for obligations  not yet due to carriers,  warehousemen,
               laborers,  materialmen  and the like,  (iii)  liens in respect of
               pledges or deposits  under workers'  compensation  laws, and (iv)
               liens  voluntarily  created in the  ordinary  course of business,
               which liens under this Section  5.12(b)(iv)  aggregate  less than
               $50,000,  provided that the Corporation  shall cause such lien(s)
               to be  removed  from its  assets  within  sixty  (60) days of the
               Corporation's receipt of written notice of such lien(s);

          (c)  Purchase Money Mortgages (as hereinafter  defined) existing as of
               the date hereof or entered into after the date hereof under which
               the Corporation or a Subsidiary is the primary obligor,  provided
               such Purchase Money  Mortgages do not in the aggregate  secure an
               amount in excess of $350,000. For the purposes hereof,  "Purchase
               Money  Mortgage"  means any mortgage,  security  interest,  title
               retention,  lien or other encumbrance on property given,  assumed
               or  arising  by  operation  of law to  secure  payment  of, or to
               provide the  obligor  with funds to pay the whole or any part of,
               the  consideration  for the acquisition of such property (and for
               such  purposes any capital or operating  lease shall be deemed to
               be a Purchase  Money  Mortgage in the amount of the  aggregate of
               all  remaining  lease  payments  required to be made  thereunder,
               other than under  extensions  exercisable only by the Corporation
               or the  Subsidiary  party  thereto),  or to secure  any  renewal,
               extension   or  refunding   of  such   encumbrance   and  of  the
               indebtedness  represented thereby upon the same property provided
               that the indebtedness  secured thereby and the security  therefor
               are not increased thereby.

     5.13 Not to Incur Indebtedness for Borrowed Money;  Non-Equity  Securities.
The  Corporation  shall not,  and will cause  each of the  Subsidiaries  not to,
incur,  guarantee or otherwise become liable in respect of, any indebtedness for
borrowed money (including without limitation Purchase Money Mortgages), or issue
any class of shares or other securities other than Equity Securities, subsequent
to the date  hereof  without  the prior  written  consent  of Agent,  except for
Purchase Money Mortgages in accordance with Section 5.12.

                                       10
<PAGE>

     5.14 To Pay  Expenses.  The  Corporation  shall pay all costs,  charges and
expenses  (including legal fees not to exceed $17,000 and  disbursements)  of or
incurred  by Agent and  Holder in  connection  with this  Amended  and  Restated
Debenture,  the Security  Agreements and any other security documents  delivered
after the date hereof to Agent,  and all ancillary  documents or the enforcement
hereof and of such security.

     5.15 Key Man  Insurance.  The  Corporation  will use its  best  efforts  to
maintain the 10-year minimum,  level premium, term life insurance on the life of
Marco Markin, the Chief Executive Officer (the "Chief Executive Officer") of the
Corporation, in the amount of at least $7,500,000,  naming Agent as beneficiary,
and will pay all premiums  thereunder  during the term thereof.  In the event of
the Chief Executive Officer's death while any portion of the Principal Amount or
any interest remains  outstanding  hereunder or under the other debenture issued
by the Corporation,  pursuant to the Debenture Purchase  Agreement,  as amended,
the proceeds of such life insurance shall be deposited into a collateral account
with a financial  institution  acceptable  to the Agent,  which account (and all
rights  therein and proceeds  thereof)  shall be assigned by the  Corporation to
Agent  as  additional  collateral  security  for the  Corporation's  obligations
hereunder,  and shall be released to the Corporation  only upon the repayment in
full of the Principal Amount and all other amounts outstanding hereunder. At any
time and from time to time prior to the Chief  Executive  Officer's  death where
the Principal  Amount and the principal  amount owing under the other  debenture
issued by the  Corporation  pursuant to the Debenture  Purchase  Agreement  (the
"Total  Debenture  Purchase  Amount") is less than  $7,500,000,  the Corporation
shall be entitled, by notice given to the Agent, but not required, to reduce the
amount of such insurance (or replace such insurance policy with a like policy in
such less  amount),  provided  that the new amount of insurance is not less than
the  Total  Debenture  Principal  Amount  at that  time.  Upon  satisfaction  by
repayment of the Total  Debenture  Principal  Amount and all other  indebtedness
owing under the Amended and Restated  Debentures,  the Agent shall do all things
necessary  to  assign  the  benefit  of  such  life  insurance   policy  to  the
Corporation.  It is hereby  expressly  acknowledged by the Agent,  CapEx and DHB
that the proceeds of such life insurance  policy or policies shall be payable to
Agent  solely as  additional  collateral  security  for the  obligations  of the
Corporation  under the Amended and Restated  Debentures  and the  Security,  and
under no  circumstances  shall Agent or the holders of the Amended and  Restated
Debentures  be  entitled  to any  portion  of such  proceeds  in  excess of such
obligations, but shall be required to remit such excess to the Corporation after
full satisfaction of such obligations forthwith upon request.

     5.16 [Intentionally Deleted].

     5.17 Reporting Requirements.  The Corporation shall provide and deliver the
following financial statements and other reports to Agent:

          (a) Balance Sheet, Income Statement,  and Cash Flow Statement.  Within
forty-five (45) days after the last day of each fiscal quarter of Corporation, a
copy of Corporation's  consolidated  balance sheet,  income statement,  and cash
flow statement prepared by Corporation as of the end of and for such quarter and
certified  by the Chief  Financial  Officer  of the  Corporation  to be true and
correct and to accurately reflect the financial condition of the Corporation and
to  have  been  prepared  in  accordance  with  generally  accepted   accounting
principles that are consistent with those  previously  applied in  Corporation's
most recent financial

                                       11
<PAGE>

statement.  In  order  for  the  financial  statements  to be  complete  and  in
compliance  with the  requirements  of this Section  5.17,  the Chief  Financial
Officer  must  attach to such  financial  statements  a  certification  that the
Corporation  is in compliance  with the covenants  contained in this Amended and
Restated  Debenture,  specifically  including the covenants contained in Section
5.18.

          (b) Financial Statements. Upon preparation, but in any event within 90
days after the last day of each fiscal year of the  Corporation,  the  financial
statements of the  Corporation as of the end of and for such fiscal year setting
forth in comparative form the correspondence figures of the financial statements
showing the balance sheet,  the income  statement and the source and application
of funds statement as of the end of the preceding fiscal year, all in reasonable
detail and  certified  by a firm of  independent  certified  public  accountants
acceptable to Holder.

          (c) Additional Information. Such further information as may reasonably
be  necessary  or as Holder may  reasonably  request to  determine  whether  the
Corporation is complying with its obligations  under this  Agreement,  the Notes
and the security  documents,  or to  determine  the  financial  condition of the
Corporation.

     5.18 Financial Covenant.  The Corporation and its Subsidiaries shall at all
times maintain (on a  consolidated  basis) the following  Fixed Charge  Coverage
Ratios for the following periods:

                                                             Fixed Charge
                   Period                                   Coverage Ratio
                   ------                                   --------------

       Each of the Three Month Periods Ended                 1.10:1.0
       December 31, 2003 through June 30, 2006

       Three Month Period Ended September 30, 2006
                                                              0.95:1.0
       Three Month Period Ended December 31, 2006
                                                              0.95:1.0
       Three Month Period Ended March 31, 2007
                                                              1.10:1.0

Provided,  however,  that DHB shall  allow  non-compliance  with the above Fixed
Charge Coverage Ratios for any given quarter, so long as the Corporation and its
Subsidiaries  are in compliance  with the above Fixed Charge  Coverage Ratios in
the subsequent quarter.

          (a)  "Cash  Flow"  means  with  respect  to the  Corporation  and  its
Subsidiaries,  for any  quarter,  the sum of (i) GAAP  EBITDA  (earnings  before
interest,  taxes,  depreciation  and  amortization)  for the  quarter,  (ii) net
deferred pre-need revenue,  and (iii)  stock-based  compensation,  less (iv) net
deferred charges related to pre-need contracts,  (v) capital expenditures,  (vi)
any taxes paid, and (vii) permitted distributions.

                                       12
<PAGE>

          (b)  "Fixed  Charges"  means the sum of,  for the  quarter,  excluding
Excess  Cash Flow  Payments:  (i) all  principal  payments,  (ii) cash  interest
payments,   (iii)  capitalized  lease  payments  and  (iv)  payments  under  the
settlement agreement with Rodney Bagley.

          (c) "Fixed Charge Coverage  Ratio" means, as calculated  based on data
in the Corporation's  financial statements prepared in accordance with GAAP, for
the full fiscal  quarter  ending on or prior to the date of  determination,  the
ratio of Cash Flow of the  Corporation  for such period to the Fixed  Charges of
the  Corporation  for such  period.  The  Fixed  Charge  Coverage  Ratio and net
pre-need  revenue and related  sales costs are to be  accounted  for in the same
manner as  detailed  in the  Bridging  Schedule  to Net  Income  (Loss)  for the
year-GAAP Basis submitted to the holders of the Amended and Restated  Debentures
and  attached  hereto as Exhibit A. The first  test  shall be  calculated  as of
December  31,  2003 for the  trailing  six  months.  The  second  test  shall be
calculated  as of March 31,  2004 for the  trailing  nine  months.  Tests  shall
thereafter  occur as of the end of each quarter for a trailing  period of twelve
months (the intention is to include quarterly performance beginning July 1, 2003
and increase the trailing calculation to a four-quarter trailing formula). Tests
including  the first twelve  months shall exclude the final payment to Weintraub
made  at the  Closing  of the  transactions  contemplated  in the  Purchase  and
Amendment Agreement dated July 31, 2003.

     5.19 [Intentionally Deleted]

     5.20 Agent Entitled to Perform Covenants. If the Corporation shall fails to
perform any covenant on its part herein contained, Agent may, in its discretion,
perform  any such  covenant  capable of being  performed  by it and, if any such
covenant  requires the payment or expenditure of money,  Agent may make payments
or expenditures  with its own funds, or with money borrowed by or advanced to it
for such  purposes,  but shall be under no  obligation so to do; and all sums so
expended or advanced  shall be at once payable by the  Corporation on demand and
shall bear interest at the annual rate of fifteen  percent (15%) until paid, and
shall  be  payable  out of any  funds  coming  into the  possession  of Agent in
priority to the other indebtedness hereunder, but no such performance or payment
shall be deemed to relieve the Corporation from any default  hereunder nor shall
the right of Agent under this  subsection  impose any  obligation  upon Agent to
perform any covenant of the Corporation.

     5.21 [Intentionally Deleted]

     5.22 [Intentionally Deleted]

     5.23  Approval of  Agreements.  The  Corporation  agrees  that,  until this
Amended and Restated  Debenture is paid in full,  the  Corporation  will not (a)
amend or renew any  existing  employment  or  independent  contractor  agreement
arrangement  that  provides  that the employee or  contractor  shall  receive in
excess of $75,000 in cash or equity  interests more than any amount to which the
employee or contractor is entitled under a contract  arrangement in effect as of
July 31, 2003, or (b) enter into any new  employment or  independent  contractor
agreement  arrangement  under which an employee or  contractor  may be paid more
than $200,000 per year in cash or equity interests or under which an employee or
contractor  may  receive  more than  $100,000 in cash or equity  interests  upon
termination of the agreement or  arrangement,  without the prior written consent
of Agent.

                                       13
<PAGE>

     5.24 Board Meetings.  The Corporation agrees to give Agent notice of and to
allow  Agent's  representative  to attend  all  meetings  (including  telephonic
meetings)  and all  adjournments  of meetings of the Board of Directors  and any
committee  thereof  (including   committees  comprised  of  both  directors  and
non-directors).  Such representative  shall sign a confidentiality  agreement as
may  reasonably be required by the  Corporation to comply with  applicable  law,
including but not limited to Regulation FD as  promulgated  by the SEC, and such
representative  shall have no voting  rights at any such  meeting,  but shall be
entitled to participate fully in all discussions that take place thereat.

6.   Redemption and Prepayment

     6.1 Generally.  The Corporation  shall have the right to prepay any portion
of  the  Principal  Amount  at  any  time  without  penalty,   except  that  the
Corporation's  right to prepay this Amended and Restated Debenture and the CapEx
Amended and Restated Debenture shall be subject to the repayment  provisions set
forth in Section 2.4 of this Amended and Restated Debenture.  Except as provided
in this Article 6 and in Section 7.1,  Holder shall have no right to require any
portion of the Principal Amount to be prepaid.

     6.2 [Intentionally Deleted]

     6.3 [Intentionally Deleted]

     6.4 [Intentionally Deleted]

     6.5 [Intentionally Deleted]

     6.6 [Intentionally Deleted]

     6.7 [Intentionally Deleted]

     6.8 [Intentionally Deleted]

7.   Default

     7.1 Default Events.  The entire unpaid balance of the Principal  Amount and
all  Interest  and  Default  Interest  accrued  and unpaid on this  Amended  and
Restated  Debenture  shall, at the election of Agent, be and become  immediately
due and  payable,  and the  Security  Agreement  and any and all other  security
documents  held  by  Agent  shall  become  immediately  enforceable,   upon  the
occurrence  of any of the  following  events,  subsequent  to the  date  of this
Amended and Restated Debenture (a "Default Event"):

          (a)  the  non-payment  by the  Corporation  when due of principal  and
               interest or of any other  payment as provided in this Amended and
               Restated Debenture or with respect to any other indebtedness owed
               by the Corporation;

                                       14
<PAGE>

          (b)  default by the  Corporation  in the  performance of or compliance
               with  any  term  or  any  provision  of  the  Debenture  Purchase
               Agreement,  the First  Amendment  Agreement,  or the Purchase and
               Amendment Agreement;

          (c)  default by the  Corporation  in the  performance of or compliance
               with any term or provision of this Amended and Restated Debenture
               or  the  Security  Agreement  (specifically  including,  but  not
               limited  to,  full  compliance   with  the  covenant   concerning
               financial  reporting and  certification set forth in Section 5.17
               above),  where such  default is not remedied  within  thirty (30)
               days after Agent gives Corporation written notice thereof;

          (d)  the occurrence of a breach by Mr. Marco Markin of his obligations
               under  Section 7 of the Right of First  Refusal  Agreement  dated
               December 24, 1999 between him, the Corporation, CapEx and DHB;

          (e)  the  occurrence  of a material  breach  (excluding  death) by Mr.
               Marco Markin under his employment  agreement with the Corporation
               (as such agreement is constituted on the date entered into and as
               the same may be  amended  with the  written  consent of Agent and
               without consideration thereof of any waiver by the Corporation);

          (f)  Mr.  Marco Markin  ceasing to hold the office of Chief  Executive
               Officer of the  Corporation  (except  in the case of his  death),
               unless,  prior to his  termination,  the Corporation has obtained
               the  consent  of DHB and the  holder  of the  CapEx  Amended  and
               Restated  Debenture  (which  consent  may be given or withheld at
               their sole discretion) to hire a new Chief Executive Officer;

          (g)  the  Corporation  (i) applies for or consents to the  appointment
               of, or if there shall be a taking of  possession  by, a receiver,
               custodian,  trustee or liquidator  for the  Corporation or any of
               its property;  (ii) becomes  generally unable to pay its debts as
               they become due; (iii) makes a general assignment for the benefit
               of creditors or becomes  insolvent;  (iv) files or is served with
               any petition for relief under the Bankruptcy  Code or any similar
               federal or state statute; (v) has any judgment entered against it
               in excess of  $250,000 in any one  instance  or in the  aggregate
               during any  consecutive  12-month period or has any attachment or
               levy made to or  against  any of its  property  or  assets;  (vi)
               defaults  with  respect  to  any  evidence  of   indebtedness  or
               liability for borrowed money, or any such indebtedness  shall not
               be paid as and when due and  payable;  or (vii) has  assessed  or
               imposed  against  it, or if there  shall  exist,  any  general or
               specific  lien for any  federal,  state or local taxes or charges
               against any of its property or assets; or

          (h)  any failure by the  Corporation  to issue and  deliver  shares of
               Common Stock as provided  herein upon  exercise of a warrant held
               by CapEx or DHB.

                                       15
<PAGE>

     7.2 Payment of Prior Ranking Indebtedness. Upon the occurrence of a Default
Event, in addition to (and not in substitution  for,  exclusive of nor dependent
on) any other remedies  contained herein,  in the Security  Agreements or in any
existing or future  security  document  granted by the Corporation or any of the
Subsidiaries to Agent, and to all other remedies existing at law or in equity or
by statute,  Agent shall be permitted to make  payments to parties  having prior
charges or encumbrances on properties  owned by the Corporation or on properties
on which the Corporation may hold charges or  encumbrances,  and the full amount
of such  payments  shall be due and payable  upon demand by Agent,  and shall be
added to and  shall  form  part of the  Principal  Amount  of this  Amended  and
Restated   Debenture,   on  which  interest  shall  accrue  and  be  payable  as
hereinbefore provided, and in respect of which the Security shall secure the due
and prompt repayment thereof.

     7.3 Remedies Cumulative. Each right, power or remedy of Agent, on behalf of
Holder, upon the occurrence of any Default Event as provided for in this Amended
and Restated  Debenture  or now or hereafter  existing at law or in equity or by
statute shall be  cumulative  and  concurrent  and shall be in addition to every
other right, power or remedy provided for in this Amended and Restated Debenture
or now or hereafter existing at law or in equity or by statute, and the exercise
or beginning of the  exercise by the holder or  transferee  hereof of any one or
more of such rights,  powers or remedies shall not preclude the  simultaneous or
later  exercise  by Agent,  on behalf of DHB,  of any or all such other  rights,
powers or remedies.

8.   General

     8.1 Fair Market  Value.  The term Fair Market Value as used in this Amended
and  Restated  Debenture  with  respect to assets or  property  received  by the
Corporation  or any other person shall be the fair market  value,  regardless of
any prior accounting treatment,  of such assets or property,  determined in good
faith by agreement of Agent and the Board of  Directors of the  Corporation.  If
Agent and the Board of Directors shall be unable to agree as to such fair market
value,  the fair market value shall be determined by the  independent  certified
public  accountant at that time retained by the  Corporation  to audit its books
and records, and a determination by such independent certified public accountant
shall be  final,  conclusive  and  binding  or,  if  there  be none,  or if such
accountant shall refuse or be unable to make such a determination  then the sole
issue of fair  market  value  shall  be  submitted  to and  settled  by  binding
arbitration  under and pursuant to the Colorado Uniform  Arbitration Act and the
rules and regulations of the American Arbitration Association,  and the decision
or award of the arbitrator or arbitrators  in such  arbitration  shall be final,
conclusive and binding and a final judgment may be entered  thereon by any court
of competent jurisdiction.

     8.2 Failure to Act and Waiver. No failure or delay by Holder to insist upon
the strict  performance of any term of this Amended and Restated Debenture or to
exercise any right,  power or remedy  consequent upon a default  hereunder shall
constitute  a waiver of any such term or of any such breach,  or preclude  Agent
from  exercising any such right,  power or remedy at any later time or times. By
accepting  payment  after the due date of any amount  payable under this Amended
and Restated  Debenture,  Agent shall not be deemed to waive the right either to
require  payment when due of all other  amounts  payable  under this Amended and
Restated  Debenture,  or to declare a default for failure to effect such payment
of any such other amount.

                                       16
<PAGE>

     The  failure  of Agent to give  notice  of any  failure  or  breach  of the
Corporation  under this Amended and Restated  Debenture  shall not  constitute a
waiver of any right or remedy in respect of such continuing failure or breach or
any subsequent failure or breach.

     8.3 Consent to  Jurisdiction.  The  Corporation  hereby agrees and consents
that any action,  suit or  proceeding  arising out of this  Amended and Restated
Debenture  may be brought  in any  appropriate  court in the State of  Colorado,
including the United States  District Court for the District of Colorado,  or in
any other court having  jurisdiction  over the subject  matter,  all at the sole
election  of Agent,  and by the  issuance  and  execution  of this  Amended  and
Restated Debenture the Corporation  irrevocably  consents to the jurisdiction of
each such court.

     8.4 Transfer.  This Amended and Restated  Debenture may only be transferred
in accordance  with the  provisions  of Section 10.4 of the  Debenture  Purchase
Agreement and the requirements set out in the legend on the first page hereof.

     8.5  Notices.  All notices  required  or  permitted  hereunder  shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to the
party to be  notified;  (ii) when sent by  confirmed  telex or facsimile if sent
during normal business hours of the recipient, if not, then on the next business
day; (iii) five (5) days after having been sent by registered or certified mail,
return receipt  requested,  postage prepaid;  or (iv) one (1) business day after
deposit  with a  nationally  recognized  overnight  courier,  special  next  day
delivery, with verification of receipt. All communications shall be sent:

          to the Corporation at:

                 The Neptune Society Inc.
                 4312 Woodman Avenue, 3rd Floor
                 Sherman Oaks, California 91423
                 Telecopier No. (818) 953-9844
                 Attention:  Marco Markin, Chief Executive Officer

          with a copy to:

                 Dorsey & Whitney LLP
                 1420 Fifth Avenue, Suite 3400
                 Seattle, Washington
                 Telecopier No. (206) 903-8820
                 Attention:  Randal R. Jones, Esq.

                                       17
<PAGE>

          to Holder at:

                 D. H. Blair Investment Banking Corp. Attention:
                 Martin Bell 44 Wall Street, Second Floor New York,
                 New York 10005

          and to Agent, on behalf of Holder at:

                 c/o CapEx, L.P.
                 518 17th Street, Suite 1700
                 Denver, CO 80202
                 Telecopier No. (303) 869-4644
                 Telephone No. (303) 869-4700
                 Attention:  Evan Zucker, Managing Partner

or at such other address as the Corporation,  Holder,  or Agent may designate by
ten (10) days advance written notice to the other parties hereto.

     8.6 Governing Law. This Amended and Restated Debenture shall be governed by
and construed and enforced in accordance  with the laws of the State of Colorado
without regard to conflicts of law principles, or, where applicable, the laws of
the United States.

                                       18
<PAGE>

     IN WITNESS  WHEREOF,  the  Corporation has caused this Amended and Restated
Debenture to be duly executed under its corporate seal.

ATTEST:                               THE NEPTUNE SOCIETY, INC.

                                      By:
-----------------------------              ------------------------------------
____________________, Secretary            Marco Markin, Chief Executive Officer

ACKNOWLEDGED:

D.H. BLAIR INVESTMENT BANKING CORP.

By:
    ---------------------------------
    J. Morton Davis, Chairman

                                       19
<PAGE>

                                    EXHIBIT A

         BRIDGING SCHEDULE TO NET INCOME (LOSS) FOR THE YEAR--GAAP BASIS

                                       20EXHIBIT 10.56

                                     WARRANT

THIS  WARRANT AND THE SHARES  DELIVERABLE  UPON  EXERCISE  THEREOF HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933
ACT") OR THE  SECURITIES  LAWS OF ANY  STATE  OF THE  UNITED  STATES  AND MAY BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (i) TO THE COMPANY, (ii) OUTSIDE THE
UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT, IF
AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, (iii) IN
COMPLIANCE WITH THE EXEMPTION FROM  REGISTRATION  UNDER THE 1933 ACT PROVIDED BY
RULE 144 THEREUNDER, IF APPLICABLE,  AND IN COMPLIANCE WITH ANY APPLICABLE STATE
SECURITIES LAWS, (iv) IN COMPLIANCE WITH ANOTHER EXEMPTION FROM REGISTRATION AND
ANY APPLICABLE  STATE  SECURITIES  LAWS, IN EACH CASE AFTER  PROVIDING  EVIDENCE
SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER MAY BE MADE WITHOUT  REGISTRATION
UNDER THE 1933 ACT.

THIS WARRANT MAY NOT BE EXERCISED WITHIN THE UNITED STATES OR BY OR ON BEHALF OF
A U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THE SHARES  DELIVERABLE UPON
EXERCISE HEREOF ARE REGISTERED UNDER THE 1933 ACT AND THE SECURITIES LAWS OF ALL
APPLICABLE  STATES OF THE UNITED STATES OR AN EXEMPTION  FROM SUCH  REGISTRATION
REQUIREMENTS IS AVAILABLE.  "UNITED STATES" AND "U.S.  PERSON" ARE AS DEFINED BY
REGULATION S UNDER THE 1933 ACT.

              WARRANT TO PURCHASE 1,000,000 SHARES OF COMMON STOCK

                            THE NEPTUNE SOCIETY, INC.
                             (a Florida Corporation)

                     Not Transferable or Exercisable Except
                        Upon Conditions Herein Specified
                          Void after 5:00 O'clock P.M.,
          Pacific Daylight Time, on the Expiry Date (as herein defined)

     THE NEPTUNE SOCIETY INC., a Florida  corporation  (the  "Company"),  hereby
certifies  that CapEx,  L.P., a Delaware  limited  partnership,  its  registered
successors  and  permitted  assigns  registered  on the  books  of  the  Company
maintained for such purposes as the registered holder hereof (the "Holder"), for
value  received,  is entitled  to purchase  from the Company the number of fully
paid and non-assessable  shares of Common Stock of the Company ("Shares") stated
above at a purchase  price of Three and No/100  Dollars  ($3.00)  per Share (the
"Exercise  Price")  (the number of Shares and  Exercise  Price being  subject to
adjustment  as  hereinafter  provided)  upon the  terms  and  conditions  herein
provided.

<PAGE>

1.   Exercise of Warrants.

     (a)  Subject to Section  1(b),  upon  presentation  and  surrender  of this
Warrant,  with the attached Exercise Form duly executed, at the principal office
of the Company at 4312  Woodman  Avenue,  3rd Floor,  Sherman  Oaks,  California
91423,  or at such other  place as the Company  may  designate  by notice to the
Holder hereof, with and upon payment (which may be in the form of a certified or
bank  cashier's  check  payable  to the order of the  Company  or in the form of
electronic funds transfer to the Company's account,  the wiring instructions for
which  shall be  provided  upon  request  by the  Holder)  in the  amount of the
aggregate  Exercise  Price for the Shares  being  purchased,  the Company  shall
deliver  to  the  Holder  hereof,  as  promptly  as  practicable,   certificates
representing the Shares being purchased.  This Warrant may be exercised in whole
or in part;  and, in case of exercise  hereof in part only,  the  Company,  upon
surrender  hereof,  will  deliver to the  Holder a new  Warrant  Certificate  or
Warrant  Certificates  of like tenor entitling the Holder to purchase the number
of Shares as to which this Warrant has not been exercised.

     (b) This  Warrant may be exercised in whole or in part at any time prior to
5:00 o'clock P.M., Pacific Daylight Time, on July 31, 2007 (the "Expiry Date").

2.   Net or "Cashless" Exercise.

     In lieu of exercising this Warrant in the manner provided above, the Holder
may elect to receive  shares  equal to the value of this Warrant (or the portion
thereof  being  canceled)  by surrender of this Warrant at the address set forth
above,  together with notice of such election,  in which event the Company shall
issue to the Holder that number of Shares computed using the following formula:

                X   =   Y(A-B)
                        ------
                          A

Where:          X   =   The number of shares of Common Stock to be issued to the
                        Holder

                Y   =   The number of Shares purchasable under this Warrant
                        (at the date of such calculation) with respect to
                        which this Warrant is exercised

                A   =   The current market price of one share of Common
                        Stock (at the date of exercise of this Warrant)

                B   =   The Exercise Price (as adjusted to the date of such
                        calculation)

For purposes  hereof,  the current  market price per Share at any date shall be:
(i) if the Shares are listed on any national  securities  exchange,  the closing
price for the trading day  immediately  before the day in question;  and (ii) if
the Shares are not listed on any national  securities exchange but are quoted on
the National Association of Securities Dealers,  Inc. Automated Quotation System
("NASDAQ"),  the  average of the high and low bids as reported by NASDAQ for the
trading day immediately before the day in question.

                                        2
<PAGE>

3.   Exchange of Warrant.

     This Warrant at any time prior to the exercise  hereof,  upon  presentation
and surrender to the Company, may be exchanged,  alone or with other Warrants of
like tenor  registered in the name of the Holder,  for another  Warrant or other
Warrants  of like  tenor in the  name of such  Holder  exercisable  for the same
aggregate number of Shares as the Warrant or Warrants surrendered.

4.   Rights and Obligations of Warrant Holder.

     (a) The Holder of this Warrant  Certificate shall not, by virtue hereof, be
entitled  to any rights of a  stockholder  in the  Company,  either at law or in
equity;  provided,  however, in the event that any certificate  representing the
Shares is issued to the Holder hereof upon exercise of this Warrant, such Holder
shall,  for all purposes,  be deemed to have become the holder of record of such
Shares  on the date on which  this  Warrant  Certificate,  together  with a duly
executed  Exercise Form, was  surrendered  and payment of the Exercise Price was
made, irrespective of the date of delivery of such Share certificate. The rights
of the Holder of this  Warrant  are  limited to those  expressed  herein and the
Holder of this Warrant,  by its acceptance hereof,  consents to and agrees to be
bound by and to comply  with all the  provisions  of this  Warrant  Certificate,
including,  without  limitation,  all the  obligations  imposed  upon the Holder
hereof by Section 5 hereof. In addition, the Holder of this Warrant Certificate,
by accepting the same,  agrees that the Company may deem and treat the person in
whose name this Warrant  Certificate  is  registered on the books of the Company
maintained  for such  purpose as the  absolute,  true and  lawful  owner for all
purposes whatsoever,  notwithstanding any notation of ownership or other writing
thereon, and the Company shall not be affected by any notice to the contrary.

     (b) No Holder of this Warrant  Certificate,  as such,  shall be entitled to
vote or  receive  distributions  or to be deemed  the  holder of Shares  for any
purpose,  nor shall anything contained in this Warrant  Certificate be construed
to confer  upon any  Holder of this  Warrant  Certificate,  as such,  any of the
rights of a  stockholder  of the Company or any right to vote,  give or withhold
consent to any action by the Company,  whether upon any recapitalization,  issue
of stock,  reclassification of stock, merger,  conveyance or otherwise,  receive
notice of meetings or other action  affecting  stockholders  (except for notices
provided for herein), receive distributions,  subscription rights, or otherwise,
until this Warrant shall have been exercised and the Shares purchasable upon the
exercise  thereof shall have become  deliverable as provided  herein;  provided,
however, that any such exercise on any date when the stock transfer books of the
Company shall be closed shall  constitute the person or persons in whose name or
names the certificate or  certificates  for those Shares are to be issued as the
record holder or holders  thereof for all purposes at the opening of business on
the next  succeeding  day on which such stock  transfer  books are open, and the
Warrant  surrendered shall not be deemed to have been exercised,  in whole or in
part as the case may be, until the next  succeeding  day on which stock transfer
books are open for the purpose of determining  entitlement to  distributions  on
the Company's common stock.

                                        3
<PAGE>

5.   Shares Underlying Warrants.

     The Company covenants and agrees that all Shares delivered upon exercise of
this Warrant  shall,  upon  delivery and payment  therefor,  be duly and validly
authorized and issued,  fully-paid and  non-assessable,  and free from all stamp
taxes, liens, and charges with respect to the purchase thereof. In addition, the
Company agrees at all times to reserve and keep  available an authorized  number
of Shares sufficient to permit the exercise in full of this Warrant.

6.   Disposition of Warrants or Shares.

     (a) The holder of this Warrant  Certificate and any transferee hereof or of
the Shares  issuable  upon the  exercise  of the Warrant  Certificate,  by their
acceptance hereof, hereby understand and agree that this Warrant, and the Shares
issuable upon the exercise hereof, have not been registered under either the Act
or the State  Acts and shall not be sold,  pledged,  hypothecated,  donated,  or
otherwise  transferred  (whether  or not  for  consideration)  except  upon  the
issuance to the Company of a favorable  opinion of counsel or  submission to the
Company of such evidence as may be  satisfactory  to counsel to the Company,  in
each such case, to the effect that any such  transfer  shall not be in violation
of the Act and the State Acts.  It shall be a condition  to the transfer of this
Warrant that any transferee thereof deliver to the Company its written agreement
to accept and be bound by all of the terms and conditions of this Warrant.

     (b) The stock  certificates of the Company that will evidence the shares of
Common  Stock with  respect to which this  Warrant  may be  exercisable  will be
imprinted with conspicuous legend in substantially the following form:

          "The  securities   represented  by  this  certificate  have  not  been
          registered  under  either the  Securities  Act of 1933 (the  "Act") or
          applicable  state  securities laws (the "State Acts") and shall not be
          sold, pledged, hypothecated, donated or otherwise transferred (whether
          or not for  consideration)  by the holder  except upon the issuance to
          the Company of a favorable opinion of its counsel or submission to the
          company of such other  evidence as may be  satisfactory  to counsel of
          the Company,  in each such case,  to the effect that any such transfer
          shall not be in violation of the Act and the State Acts."

Except as provided in the  Debenture  Purchase  and  Amendment  Agreement by and
among the Company,  CapEx,  L.P., and D.H. Blair Investment  Banking Corp. dated
July 31,  2003 (in which the  Company  has agreed to file and to cause to become
effective a  registration  statement  covering the shares for which this Warrant
may be exercisable),  the Company has not agreed to register any of the holder's
shares of Common  Stock of the Company with respect to which this Warrant may be
exercisable for distribution in accordance with the provisions of the Act or the
State Acts and,  the Company has not agreed to comply  with any  exemption  from
registration  under the Act or the  State  Acts for the  resale of the  holder's
shares of Common  Stock of the Company with respect to which this Warrant may be
exercised. Hence, it is the understanding of the holders of this Warrant that by
virtue of the  provisions of certain rules  respecting  "restricted  securities"
promulgated by the Securities and Exchange Commission, the shares of Common

                                        4
<PAGE>

Stock of the Company with respect to which this Warrant may be  exercisable  may
be required to be held  indefinitely,  unless and until registered under the Act
and the State Acts, unless an exemption from such registration is available,  in
which  case the Holder may still be limited as to the number of shares of Common
Stock of the Company with  respect to which this  Warrant may be exercised  that
may be sold.

7.   Adjustments.

     The  number of Shares  purchasable  upon the  exercise  of each  Warrant is
subject to adjustment from time to time upon the occurrence of any of the events
enumerated below.

     (a) In case the Company shall: (i) pay a dividend in Shares; (ii) subdivide
its  outstanding  Shares  into a greater  number of Shares;  (iii)  combine  its
outstanding  Shares  into a  smaller  number  of  Shares;  the  amount of Shares
purchasable  upon the exercise of each Warrant and the Exercise  Price in effect
immediately prior immediately prior thereto shall be proportionately adjusted to
reflect the  reduction  or increase in the value of each such Shares so that the
Holder shall be entitled to receive upon  exercise of the Warrant that number of
Shares which such Holder would have owned or would have been entitled to receive
after  the  happening  of such  event  had such  Holder  exercised  the  Warrant
immediately  prior to the  record  date,  in the case of such  dividend,  or the
effective  date, in the case of any such  subdivision or  combination;  provided
however,  in no event  shall the  Exercise  Price  exceed  $3.00 per share  (the
"Maximum Exercise Price").  For greater certainty and by way of example,  if the
Company's issued and outstanding  Shares shall be combined into a smaller number
of shares of Common Stock on a four (old share) for one (new share)  basis,  the
Warrant will be  exercisable  to acquire  250,000 Shares at an Exercise Price of
$3.00 per share,  notwithstanding  the fact that the  Exercise  Price would have
been $12.00 per Share,  but for the Maximum  Exercise  Price. An adjustment made
pursuant to this  Section  7(a) shall be made  whenever any of such events shall
occur, but shall become effective  retroactively  after such record date or such
effective date, as the case may be, as to Warrants exercised between such record
date or effective date and the date of happening of any such event.

     (b) In case of any  capital  reorganization,  any  reclassification  of the
stock of the Company (other than as a result of a stock dividend or subdivision,
split up or  combination  of shares),  or the merger of the Company with or into
another  person or entity  (other  than a merger  in which  the  Company  is the
continuing  Company and which does not result in any change in the Common Stock)
or of the  sale,  exchange,  lease,  transfer  or  other  disposition  of all or
substantially  all of the properties and assets of the Company as an entirety or
the  participation  by the Company in share exchange as the Company the stock of
which is to be acquired,  the amount of Shares  purchasable upon the exercise of
each Warrant  immediately  prior  thereto  shall be adjusted  (effective  on the
opening of business on the date after the effective date of such reorganization,
reclassification, merger, sale or exchange, lease, transfer or other disposition
or share exchange) so that the Holder shall be entitled to receive upon exercise
of the  Warrant  the kind and number of shares of stock or other  securities  or
property of the Company or of the  corporation  resulting  from  surviving  such
merger or to which such  properties and assets shall have been sold,  exchanged,
leased,  transferred or otherwise  disposed or which was the  corporation  whose
securities  were  exchanged  for those of the Company to which the holder of the
number of Shares  deliverable (at the close of business on the date  immediately
preceding the

                                        5
<PAGE>

effective date of such reorganization, reclassification, merger, sale, exchange,
lease, transfer or other disposition or share exchange) would have been entitled
upon such  reorganization,  reclassification,  merger,  sale,  exchange,  lease,
transfer or other disposition or share exchange.  The provisions of this Section
7(b) shall  similarly  apply to successive  reorganizations,  reclassifications,
mergers,  sales,  exchanges,  leases,  transfers or other  dispositions or other
share exchanges.

     (c) If and whenever any Additional Shares (as hereinafter defined) shall be
issued by the  Company  (i) for a cash  consideration  less than the  amount per
share  determined by dividing (1) $3.00 by (2) the ratio (the "Initial  Exchange
Ratio") of (A) the number of Shares  with  respect  to which  this  Warrant  was
exercisable  into (taking into account all  adjustments  thereto  required to be
made  hereunder)  at the  close of  business  on the  business  day  immediately
preceding  the day of such  issue  (the  "Initial  Number  of  Shares"),  to (B)
1,000,000, or (ii) without consideration,  then in each such case, the number of
Shares  purchasable  upon the  exercise  of this  Warrant  Certificate  shall be
increased effective as of the opening of business on the date of such issue (the
"Issue  Date") by  multiplying  the  Initial  Number  of  Shares  by that  ratio
obtained:  (1) by multiplying (A) $3.00 times (B) the aggregate number of Shares
issued and  outstanding  at the close of  business on the Issue Date (the "Issue
Date Shares") and (2) by dividing the product thus  determined by the sum of the
following  clauses (3) and (4):  (3) $3.00  divided by (x) the Initial  Exchange
Ratio and the quotient  thus  determined  multiplied by (y) the number of Shares
issued and  outstanding at the close of business on the business day immediately
preceding  the Issue  Date;  plus (4) the amount of the  consideration  (if any)
received by the Company for the Additional  Shares issued on the Issue Date. For
greater  certainty and by way of example,  the adjustments made pursuant to this
Section 7(c) shall be  calculated  in  accordance  with the example set forth on
Schedule 7(c) attached hereto.

     (d) In case of the issuance of any  Additional  Shares for a  consideration
part or all of which  shall  be  cash,  the  amount  of the  cash  consideration
therefor  shall be deemed to be the amount of the cash  received  by the Company
for such shares,  or, if such  Additional  Shares are offered by the Company for
subscription,  the subscription  price,  or, if such Additional  Shares shall be
sold to  underwriters  or dealers  pursuant to a public  offering  other than by
subscription,  the initial  public  offering  price,  less any  compensation  or
discount  in the sale,  underwriting  or  purchase  thereof by  underwriters  or
dealers or others  performing  similar services or for any expenses  incurred in
connection therewith.

     (e) In case of the issuance of any  Additional  Shares for a  consideration
part or all of which shall be other than cash,  the amount of the  consideration
therefor  other than cash shall be deemed to be the Fair  Market  Value for such
consideration  as determined in accordance with Section 7(j) hereof.  In case of
the  reclassification  of  securities  into  Shares,  the Shares  issued in such
reclassification  shall be deemed to have been issued for a consideration  other
than cash  immediately  prior to the close of business on the date fixed for the
determination of the stockholders entitled to receive such Shares.

     (f) Additional  Shares issued by way of dividend or other  distribution  on
any class of stock of the Company  shall be deemed to have been  issued  without
consideration  and  shall be deemed to have  been  issued as of the  opening  of
business on the business day immediately

                                        6
<PAGE>

following the date fixed for the  determination of the stockholders  entitled to
receive such dividend or other distribution.

     (g) The term  "Additional  Shares" as used herein shall mean all Shares (or
shares of any other  class of  securities  of the Company  entitling  the holder
thereof to participate in any  distribution  of the Company's  remaining  assets
after  payment  to  the  holders  of  securities   entitled  to  a  preferential
distribution  upon any  dissolution,  liquidation  or winding-up of the Company)
issued by the  Company on or after July 31,  2003,  whether or not  subsequently
reacquired or retired by the Company other than:

          (i) Shares issued upon the exercise of this Warrant;

          (ii) shares issued by way of dividend or other  distribution on Shares
referred to in Section  7(g)(i) or on Shares  resulting from any  subdivision or
combination of Shares referred to in Section 7(g)(i); or

          (iii)  shares   ("Acquisition   Shares")  issued  by  the  Company  in
connection with and as  consideration  for the acquisition by the Company or any
Subsidiary of the assets or stock of another corporation pursuant to a bona fide
purchase and sale  transaction  with one or more persons  acting at arm's length
from the Company, the Subsidiaries and their respective directors,  officers and
significant shareholders, provided such transaction is in good faith approved by
the Board of Directors of the Company.

     (h) In case of the issuance of

          (i) options to purchase or rights to subscribe for Shares,

          (ii) securities by their terms  convertible into, or exchangeable for,
Shares, or

          (iii) options to purchase or rights to subscribe for such  convertible
or exchangeable securities,

then in each such case,  for all purposes of this  Section 7 (including  without
limitation for the purpose of determining  the Issue Date Shares  referred to in
Section 7(c) and the number of Shares issued and outstanding  immediately  prior
to the Issue Date referred to in Section 7(c)):

          (iv) The aggregate maximum number of Shares  deliverable upon exercise
of such options to purchase or rights to subscribe for Shares shall be deemed to
be  Additional  Shares at the time such  options or rights were issued and for a
consideration  equal to the consideration  (determined in the manner provided in
Sections  7(c) and 7(d)) if any,  received by the Company  upon the  issuance of
such options or rights plus the minimum  purchase price provided in such options
or rights for the Shares covered thereby.

          (v) The aggregate number of Shares  deliverable upon conversion of, or
in exchange for, any such  convertible  or  exchangeable  securities or upon the
exercise of options to purchase or rights to subscribe for such  convertible  or
exchangeable  securities and subsequent  conversion or exchange thereof shall be
deemed to be Additional  Shares at the time such  securities were issued or such
options or rights were issued and for a consideration equal to the

                                        7
<PAGE>

consideration received by the Company for any such securities or related options
or rights (excluding any cash received on account of accrued interest or accrued
distributions), plus the additional consideration, if any, to be received by the
Company upon the  conversion  or exchange of such  securities or the exercise of
any related options or rights (the  consideration  in each case to be determined
in the manner provided in Sections 7(c) and 7(d)).

          (vi) In the event of any  change in the  number of Shares  deliverable
upon  exercise of any such options or rights or  securities  other than a change
resulting  from the  antidilution  provisions  thereof,  the  number  of  Shares
purchasable  upon the exercise of this Warrant shall be readjusted  effective as
of the date of such change to the number which would have been  obtained had the
adjustment  made upon the issuance of such options or rights or  securities  not
converted  prior to such  change or options or rights or  securities  related to
such  securities  not  converted  prior to such change been made on the basis of
such change.

          (vii) On the expiration of any such options or rights, the termination
of any such rights to convert or exchange  or the  expiration  of any options or
rights related to such  convertible or  exchangeable  securities,  the number of
Shares  purchasable  upon  the  exercise  of this  Warrant  shall  forthwith  be
readjusted  to such number as would have obtained had the  adjustment  made upon
the issuance of such options, rights, securities or options or rights related to
such  securities  been made upon the basis of the issuance of only the number of
Shares  actually  issued upon the exercise of such  options or rights,  upon the
conversion or exchange of such  securities,  or upon the exercise of the options
or rights  related to such  securities  and  subsequent  conversion  or exchange
thereof.

     (i) No adjustment shall be required unless such adjustment would require an
increase  or  decrease  of at  least  1% in the  number  of  Shares  purchasable
hereunder;  provided,  however,  that any  adjustments  which by  reason of this
subsection  (i) are not  required to be made shall be carried  forward and taken
into account in any subsequent adjustment. All calculations under this Section 7
shall be made to the nearest one-hundredth of a Share.

     (j) The term Fair Market  Value as used in this  Warrant  Certificate  with
respect to assets or property  received by the Company or any other person shall
be the fair market value,  regardless of any prior accounting treatment, of such
assets or property,  determined in good faith by agreement of the Holder and the
Board of  Directors  of the  Company.  If the Holder and the Board of  Directors
shall be unable to agree as to such fair market  value,  the fair  market  value
shall be determined by the independent  certified public accountant at that time
retained by the Company to audit its books and records,  and a determination  by
such  independent  certified public  accountant  shall be final,  conclusive and
binding or, if there be none, or if such accountant shall refuse or be unable to
make such a  determination  then the sole issue of fair  market  value  shall be
submitted  to and  settled  by binding  arbitration  under and  pursuant  to the
Colorado  Uniform  Arbitration Act and the rules and regulations of the American
Arbitration  Association,  and  the  decision  or  award  of the  arbitrator  or
arbitrators  in such  arbitration  shall be final,  conclusive and binding and a
final judgment may be entered thereon by any court of competent jurisdiction.

                                        8
<PAGE>

8.   Notice to Warrant Holders of Adjustment.

     Whenever the number of Shares  purchasable  hereunder is adjusted as herein
provided,  the Company shall cause to be mailed to the Holder in accordance with
the  provisions of this Section 8 a notice (i) stating that the number of Shares
purchasable upon exercise of this Warrant have been adjusted, (ii) setting forth
the adjusted number of Shares  purchasable  upon the exercise of a Warrant,  and
(iii) showing in reasonable detail the computations and the facts, including the
amount of consideration received or deemed to have been received by the Company,
upon which such adjustments are based.

9.   Fractional Shares.

     The Company shall not be required to issue any fraction of a Share upon the
exercise of Warrants. If more than one Warrant shall be surrendered for exercise
at one time by the  same  Holder,  the  number  of full  Shares  which  shall be
issuable upon  exercise  thereof shall be computed on the basis of the aggregate
number of Shares  with  respect  to which  this  Warrant  is  exercised.  If any
fractional  interest in a Share shall be  deliverable  upon the exercise of this
Warrant,  the Company  shall make an  adjustment  therefor in cash equal to such
fraction  multiplied  by the current  market price of the Shares on the business
day next preceding the day of exercise.

10.  Loss or Destruction.

     Upon receipt of evidence  satisfactory  to the Company of the loss,  theft,
destruction,  or mutilation of this Warrant  Certificate and, in the case of any
such loss, theft or destruction, upon delivery of an indemnity agreement or bond
satisfactory in form, substance and amount to the Company or, in the case of any
such mutilation,  upon surrender and  cancellation of this Warrant  Certificate,
the Company at its expense  will  execute and deliver,  in lieu  thereof,  a new
Warrant Certificate of like tenor.

11.  Survival.

     The various rights and obligations of the Holder hereof as set forth herein
shall survive the exercise of the Warrants  represented hereby and the surrender
of this Warrant Certificate.

12.  Notices.

     Whenever any notice,  payment of any purchase price, or other communication
is required to be given or delivered  under the terms of this Warrant,  it shall
be in writing and  delivered by hand  delivery or United  States  registered  or
certified mail, return receipt requested, postage prepaid, and will be deemed to
have been given or delivered on the date such  notice,  purchase  price or other
communication  is so  delivered  or posted,  as the case may be;  and, if to the
Company,  it will be addressed to the address specified in Section 1 hereof, and
if to the Holder,  it will be addressed to the registered  Holder at its, his or
her address as it appears on the books of the Company.

                                        9
<PAGE>

                                         THE NEPTUNE SOCIETY, INC.

ATTEST:                                  By:
                                             -----------------------------------
                                         Name:
                                             -----------------------------------
--------------------------------         Title:
Secretary                                    -----------------------------------
                                         Date:
                                             -----------------------------------

                                       10

<PAGE>

                                  EXERCISE FORM

TO: THE NEPTUNE SOCIETY, INC.

The undersigned hereby exercises the right to acquire _________ shares of Common
Stock  in the  capital  stock  of THE  NEPTUNE  SOCIETY,  INC.  (the  "Company")
according to the terms of the Warrant Certificate.

     The  undersigned  hereby  represents and warrants to the Company as follows
(circle one):

     (a) the  undersigned  has executed and delivered to the Company  Schedule A
attached hereto; or

     (b) the  undersigned  has  delivered  to the  Company a written  opinion of
counsel to the effect that the exercise of the Warrant by the undersigned is not
subject to  registration  under the United  States  Securities  Act of 1933,  as
amended  (the "1933  Act"),  or the  securities  laws of any state of the United
States.

"United States" and "U.S.  person" are as defined by Regulation S under the 1933
Act.

Number of Common Stock: _______________________

     DATED  at  ______________________,  this  ______  day  of  _______________,
_______.

------------------------------      -----------------------------------------
Witness Signature                   Signature of Warrant Holder, to be the same
                                    as appears on the face of this Warrant
                                    Certificate

                                    Print Name of Warrant Holder

                                    Address

                                    City, State, and Zip Code

                                       11
<PAGE>

                                   SCHEDULE A

In  connection  with the  exercise  of the  Warrant to which this  Schedule A is
attached, the undersigned (the "Subscriber") covenants,  represents and warrants
to The Neptune Society, Inc. (the "Company") that:

(a)  the  Subscriber has such knowledge and experience in financial and business
     matters  as  to be  capable  of  evaluating  the  merits  and  risks  of an
     investment  in the Shares and it is able to bear the economic  risk of loss
     of its entire investment;

(b)  the Company has provided to it the opportunity to ask questions and receive
     answers  concerning the terms and conditions of the offering and it has had
     access to such  information  concerning  the  Company as it has  considered
     necessary or  appropriate  in connection  with its  investment  decision to
     acquire the Shares;

(c)  the Subscriber is acquiring the Shares for its own account,  for investment
     purposes  only and not  with a view to any  resale,  distribution  or other
     disposition  of the Shares in  violation  of the United  States  securities
     laws;

(d)  the Subscriber understands that, except as otherwise agreed by the Company,
     the Shares have not been and will not be registered under the United States
     Securities Act of 1933, as amended (the "1933 Act") or the securities  laws
     of any state of the United States and that the sale contemplated  hereby is
     being made in reliance on an exemption from such registration requirements;

(e)  the  Subscriber  satisfies one or more of the  categories  indicated  below
     (please place an "X" on the appropriate lines):

     _____ Category 1.       An organization described in Section 501(c)(3) of
                             the United States Internal Revenue Code, a
                             corporation, a Massachusetts or similar business
                             trust or partnership, not formed for the specific
                             purpose of acquiring the Shares, with total assets
                             in excess of US$5,000,000;

     _____ Category 2.       A natural person whose individual net worth, or
                             joint net worth with that person's spouse, at the
                             date hereof exceeds US$1,000,000;

     _____ Category 3.       A natural person who had an individual income in
                             excess of US$200,000 in each of the two most recent
                             years or joint income with that person's spouse in
                             excess of US$300,000 in each of those years and has
                             a reasonable expectation of reaching the same
                             income level in the current year;

     _____ Category 4.       A trust that (a) has total assets in excess of
                             US$5,000,000, (b) was not formed for the specific
                             purpose of acquiring the Shares and (c) is directed
                             in its purchases of securities by a

                                       12
<PAGE>

                             person who has such knowledge and experience in
                             financial and  business matters that he/she is
                             capable of evaluating the merits and risks of an
                             investment in the Shares;

     _____ Category 5.       An investment company registered under the
                             Investment Company Act of 1940 or a business
                             development company as defined in Section 2(a)(48)
                             of that ct;

     _____ Category 6.       A Small Business Investment Company licensed by the
                             U.S. Small Business Administration under Section
                             301(c) or (d) of the Small Business Investment Act
                             of 1958;

     _____ Category 7.      A private business development company as defined in
                            Section 202(a)(22) of the Investment Advisors Acts
                            of 1940; or

     _____ Category 8.      An entity in which all of the equity owners satisfy
                            the requirements of one or more of the foregoing
                            categories.

(f)  the  Subscriber  has not  purchased  the  Shares as a result of any form of
     general  solicitation  or general  advertising,  including  advertisements,
     articles,  notices  or other  communications  published  in any  newspaper,
     magazine or similar media or broadcast over radio,  or  television,  or any
     seminar  or  meeting   whose   attendees   have  been  invited  by  general
     solicitation or general advertising;

(g)  if the Subscriber  decides to offer, sell or otherwise  transfer any of the
     Shares,  it will not offer,  sell or otherwise  transfer any of such Shares
     directly or indirectly, unless:

     (i)  the sale is to the Company;

     (ii) the sale is made outside the United  States in a  transaction  meeting
          the requirements of Rule 904 of Regulation S under the 1933 Act and in
          compliance with applicable local laws and regulations;

     (iii) the Shares have been registered under the 1933 Act;

     (iv) the sale is made  pursuant  to the  exemption  from  the  registration
          requirements under the 1933 Act provided by Rule 144 thereunder and in
          accordance with any applicable state securities or "Blue Sky" laws; or

     (v)  the  Shares  are  sold  in  a   transaction   that  does  not  require
          registration  under  the 1933  Act or any  applicable  state  laws and
          regulations  governing  the offer and sale of  securities,  and it has
          prior to such sale  furnished  to the  Company  an  opinion of counsel
          reasonably satisfactory to the Company;

(h)  the  certificates  representing  the Shares will bear a legend stating that
     such shares have not been  registered  under the 1933 Act or the securities
     laws of any state of the United  States

                                       13
<PAGE>

     and may not be offered  for sale or sold unless  registered  under the 1933
     Act and the securities  laws of all applicable  states of the United States
     or an exemption from such registration requirements is available; and

(i)  the Subscriber  consents to the Company making a notation on its records or
     giving  instructions  to any  transfer  agent  of the  Company  in order to
     implement the restrictions on transfer set forth and described herein.

     Dated this ______ day of __________________, ____.

                                       -----------------------------------------
                                       (Name of Subscriber - please print)

                                       By:
                                            ------------------------------------
                                            (Authorized Signature)

                                            ------------------------------------
                                            (Official Capacity or Title)

                                            ------------------------------------
                                            (Please print name of individual
                                            whose signature appears above if
                                            different than the name of the
                                            Subscribed printed above)

                                            ------------------------------------
                                            Date

                                       14

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