Document:

Exhibit 4.35
                                REGISTRATION RIGHTS AGREEMENT
                                -----------------------------

REGISTRATION  RIGHTS  AGREEMENT (this "Agreement"), dated as of August 24, 2005,
by  and  between  Xtreme  Companies, Incorporated, a company organized under the
laws  of  State  of  Nevada,  with  its  principal  executive  office  at Xtreme
Companies, Incorporated, 11782 Western Avenue, Unit 18 Stanton, California 90680
(the  "Company"),  and  Preston  Capital  Partners,  LLC  (the  "Investor").

WHEREAS,  in connection with the Investment Agreement by and between the Company
and the Investor of even date herewith (the "Investment Agreement"), the Company
has  agreed  to  issue  and  sell to the Investor (i) an indeterminate number of
shares  of  the  Company's  common  stock, .001 par value per share (the "Common
Stock"), to be purchased pursuant to the terms and subject to the conditions set
forth  in  the  Investment  Agreement;  and

WHEREAS, to induce the Investor to execute and deliver the Investment Agreement,
the  Company  has  agreed  to  provide  certain  registration  rights  under the
Securities Act of 1933, as amended, and the rules and regulations thereunder, or
any  similar  successor  statute  (collectively, the "1933 Act"), and applicable
state  securities  laws,  with  respect  to  the shares of Common Stock issuable
pursuant  to  the  Investment  Agreement.

NOW,  THEREFORE,  in  consideration  of  the  foregoing  premises and the mutual
covenants  contained  hereinafter and other good and valuable consideration, the
receipt  and  sufficiency  of which are hereby acknowledged, the Company and the
Investor  hereby  agree  as  follows:

1.  DEFINITIONS.
As  used  in  this  Agreement,  the  following  terms  shall  have the following
meanings:

a.  "Execution  Date" means the date this Agreement and the Investment Agreement
are  signed  by  the  Company  and  the  Investor.

b.  "Holder"  means  Preston  Capital  Partners.,  a  Delaware  LLC.

c.  "Person" means a corporation, a limited liability company, an association, a
partnership,  an  organization,  a  business,  an  individual, a governmental or
political  subdivision  thereof  or  a  governmental  agency.

d.  "Potential Material Event" means any of the following: (i) the possession by
the  Company  of  material information not ripe for disclosure in a Registration
Statement, which shall be evidenced by determinations in good faith by the Board
of  Directors  of  the  Company  that  disclosure  of  such  information  in the
Registration  Statement  would be detrimental to the business and affairs of the
Company, or (ii) any material engagement or activity by the Company which would,
in  the  good  faith  determination of the Board of Directors of the Company, be
adversely affected by disclosure in a Registration Statement at such time, which
determination shall be accompanied by a good faith determination by the Board of
Directors  of  the  Company  that the Registration Statement would be materially
misleading  absent  the  inclusion  of  such  information.

e.  "Principal  Market"  shall  mean  The  American  Stock  Exchange  , National
Association  of  Securities  Dealer's,  Inc.  OTC electronic bulletin board, the
NASDAQ National Market or The NASDAQ Small Cap Market whichever is the principal
market  on  which  the  Common  Stock  is  listed.

f. "Register," "Registered," and "Registration" refer to a registration effected
by  preparing  and filing one or more Registration Statements in compliance with
the  1933  Act and pursuant to Rule 415 under the 1933 Act or any successor rule
providing  for  offering  securities on a continuous basis ("Rule 415"), and the
declaration  or  ordering  of effectiveness of such Registration Statement(s) by
the  United  States  Securities  and  Exchange  Commission  (the  "SEC").

g.  "Registrable  Securities"  means  (i)  the  shares of Common Stock issued or
issuable  pursuant  to  the Investment Agreement, and (ii) any shares of capital
stock issued or issuable with respect to such shares of Common Stock, if any, as
a  result  of  any  stock  split,  stock dividend, recapitalization, exchange or
similar  event  or otherwise, which have not been (x) included in a Registration
Statement  that  has  been  declared  effective  by  the  SEC  or (y) sold under
circumstances  meeting  all  of  the  applicable  conditions of Rule 144 (or any
similar  provision  then  in  force)  under  the  1933  Act.

h.  "Registration Statement" means a registration statement of the Company filed
under  the  1933  Act  covering  the  Registrable  Securities.

All  capitalized  terms  used in this Agreement and not otherwise defined herein
shall  have  the  same  meaning ascribed to them as in the Investment Agreement.

2.  REGISTRATION.
a.  Mandatory  Registration.  On  or before the execution of this Agreement, the
Company  shall  have  a  draft  of  the  Registration  Statement  covering  the
Registrable Securities. The Company shall, as soon as practicable, but not later
than  fifteen (15) calendar days following the Execution Date, file with the SEC
a  Registration  Statement  or Registration Statements (as is necessary) on Form
SB-2  (or,  if  such  form is unavailable for such a registration, on such other
form as is available for such a registration), covering the resale of all of the
Registrable  Securities,  which  Registration  Statement(s) shall state that, in
accordance  with  Rule  416  promulgated  under  the 1933 Act, such Registration
Statement  also  covers such indeterminate number of additional shares of Common
Stock  as  may  become  issuable  upon  stock splits, stock dividends or similar
transactions.  The  Company shall initially register for resale 1,000,000 shares
of  Common Stock which would be issuable on the date preceding the filing of the
Registration  Statement  based  on the closing bid price of the Company's Common
Stock  on  such date and the amount reasonably calculated that represents Common
Stock  issuable  to  other  parties  as  set  forth in the Investment Agreement,
however, the Company may file a different amount if the SEC requires the Company
to  change  the  amount  registered  as  a  condition  to  effectiveness.
b.  The Company shall use its best efforts to have the Registration Statement(s)
declared  effective  by  the  SEC  within  ninety  (90)  calendar days after the
Execution  Date.
c.  The  Company  agrees not to include any other securities in the Registration
Statement  covering  the Registrable Securities without Investor's prior consent
which  Investor  may withhold in its sole discretion, other than securities held
by  Dutchess Private Equities Fund, LP ("Dutchess") or authorized to be included
tin the Registration Statement by Dutchess. Furthermore, the Company agrees that
it  will  not  file any other Registration Statement for other securities, until
ten  (10)  calendar  days  after  the Registration Statement for the Registrable
Securities  is  declared  effective  by  the  SEC.

3.  RELATED  OBLIGATIONS.
At  such  time  as  the  Company is obligated to prepare and file a Registration
Statement  with  the  SEC  pursuant to Section 2(a), the Company will affect the
registration  of  the  Registrable  Securities  in  accordance with the intended
method  of disposition thereof and, with respect thereto, the Company shall have
the  following  obligations:

a.  The  Company shall use its best efforts to cause such Registration Statement
relating  to  the  Registrable Securities to become effective within ninety (90)
days  after  it is filed with the SEC and shall keep such Registration Statement
effective  until the earlier to occur of (i) the date as of which the Holder may
sell  all  of  the  Registrable  Securities without restriction pursuant to Rule
144(k) promulgated under the 1933 Act (or successor thereto) or (ii) the date on
which  (A) the Holder shall have sold all the Registrable Securities and (B) the
Investor has no right to acquire any additional shares of Common Stock under the
Investment  Agreement  (the  "Registration  Period")  or  (iii)  36  months. The
Registration  Statement  (including  any  amendments  or supplements thereto and
prospectuses  contained  therein)  shall  not  contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein, or
necessary to make the statements therein, in light of the circumstances in which
they  were  made,  not  misleading.  The  Company  shall use its best efforts to
respond  to all SEC comments within seven (7) business days from receipt of such
comments  by  the  Company. The Company shall use it's best efforts to cause the
Registration  Statement  relating  to  the  Registrable  Securities  to  become
effective  no  later than three (3) business days after notice from the SEC that
the  Registration  Statement  may  be  declared  effective. The Holder agrees to
provide  all  information which it is required by law to provide to the Company,
including  the  intended method of disposition of the Registrable Securities and
responses  to SEC comments directed to the Holder, and the Company's obligations
set  forth  above  shall  be  conditioned  on  the  receipt of such information.

b.  The  Company  shall prepare and file with the SEC such amendments (including
post-effective  amendments)  and supplements to a Registration Statement and the
prospectus used in connection with such Registration Statement, which prospectus
is  to  be  filed pursuant to Rule 424 promulgated under the 1933 Act, as may be
necessary  to keep such Registration Statement effective during the Registration
Period, and, during such period, comply with the provisions of the 1933 Act with
respect  to the disposition of all Registrable Securities of the Company covered
by  such  Registration  Statement  until  such  time  as all of such Registrable
Securities  shall  have been disposed of in accordance with the intended methods
of  disposition  by  the  Investor  thereof  as  set  forth in such Registration
Statement.  In  the  event  the  number  of  shares of Common Stock covered by a
Registration  Statement  filed  pursuant  to  this  Agreement  is  at  any  time
insufficient to cover all of the Registrable Securities, the Company shall amend
such  Registration Statement, or file a new Registration Statement (on the short
form  available  therefore,  if  applicable), or both, so as to cover all of the
Registrable  Securities,  in each case, as soon as practicable, but in any event
within  thirty (30) calendar days after the necessity therefore arises (based on
the  then Purchase Price of the Common Stock and other relevant factors on which
the  Company  reasonably  elects  to  rely), assuming the Company has sufficient
authorized  shares at that time, and if it does not, within thirty (30) calendar
days  after such shares are authorized. The Company shall use it best efforts to
cause  such  amendment  and/or new Registration Statement to become effective as
soon  as  practicable  following  the  filing  thereof.

c  The  Company shall make available to the Holders whose Registrable Securities
are  included in any Registration Statement and its legal counsel without charge
(i) promptly after the same is prepared and filed with the SEC at least one copy
of such Registration Statement and any amendment(s) thereto, including financial
statements  and  schedules,  all documents incorporated therein by reference and
all  exhibits, the prospectus included in such Registration Statement (including
each  preliminary  prospectus)  and,  with  regards  to  such  Registration
Statement(s),  any  correspondence  by or on behalf of the Company to the SEC or
the staff of the SEC and any correspondence from the SEC or the staff of the SEC
to  the  Company  or  its  representatives,  (ii)  upon the effectiveness of any
Registration Statement, one copy of the prospectus included in such Registration
Statement  and  all  amendments  and  supplements  thereto  and (iii) such other
documents,  including  copies  of  any  preliminary  or final prospectus, as the
Holders  may  reasonably  request  from  time to time in order to facilitate the
disposition  of the Registrable Securities. However, to the extent any documents
covered  by  this paragraph are available on EDGAR - the Holder will acquire any
copies  the  Holder  needs  at  the  Holder's  expense.

d.  The  Company  shall  use  best  efforts  to  (i)  register  and  qualify the
Registrable  Securities  covered  by  a  Registration Statement under such other
securities  or "blue sky" laws of such states in the United States as any Holder
reasonably  requests,  (ii)  prepare  and  file  in  those  jurisdictions,  such
amendments  (including  post-effective  amendments)  and  supplements  to  such
registrations  and  qualifications  as  may  be  necessary  to  maintain  the
effectiveness  thereof  during  the  Registration  Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in
effect  at  all  times  during  the Registration Period, and (iv) take all other
actions  reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required  in connection therewith or as a condition thereto to (x) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this Section 3(d), or (y) subject itself to general taxation in any such
jurisdiction.  The  Company  shall  promptly  notify  each  Holder  who  holds
Registrable  Securities  of  the receipt by the Company of any notification with
respect  to  the  suspension  of the registration or qualification of any of the
Registrable  Securities  for sale under the securities or "blue sky" laws of any
jurisdiction  in  the  United  States  or  its  receipt  of actual notice of the
initiation  or  threatening  of  any  proceeding  for  such  purpose.

e.  As  promptly  as practicable after becoming aware of such event, the Company
shall notify each Holder in writing of the happening of any event as a result of
which  the  prospectus  included in a Registration Statement, as then in effect,
includes  an untrue statement of a material fact or omission to state a material
fact  required to be stated therein or necessary to make the statements therein,
in  light  of  the  circumstances  under  which  they  were made, not misleading
("Registration  Default")  and  use  all  diligent efforts to promptly prepare a
supplement  or  amendment  to  such  Registration  Statement  and take any other
necessary  steps  to cure the Registration Default, (which, if such Registration
Statement  is  on Form S-3, may consist of a document to be filed by the Company
with  the  SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as
defined below) and to be incorporated by reference in the prospectus) to correct
such untrue statement or omission, and make available on Edgar or otherwise such
supplement  or  amendment to each Holder (or such other number of copies as such
Holder  may reasonably request). Failure to cure the Registration Default within
ten  (10) business days shall result in the Company paying liquidated damages in
cash  of  2.0%  of the cost of any and all Common Stock then held by the Holders
for  each  thirty  (30) calendar day period or portion thereof, beginning on the
date  of suspension. The Company shall also promptly notify each Holder (i) when
a  prospectus  or any prospectus supplement or post-effective amendment has been
filed,  and  when  a  Registration Statement or any post-effective amendment has
become  effective  (notification  of  such effectiveness prepared by the Company
shall  be  delivered  to  each  Holder  by  facsimile  on  the  same day of such
effectiveness  and  by  overnight  mail),  (ii)  of  any  request by the SEC for
amendments  or  supplements  to  a Registration Statement or related prospectus,
(iii)  of the Company's reasonable determination that a post-effective amendment
to  a  Registration  Statement  would  be  appropriate,  (iv)  in  the event the
Registration  Statement is no longer effective or, (v) if Registration Statement
is  stale  as a result of the Company's failure to timely file its financials or
otherwise.

The  Company  acknowledges  that  its  failure  to cure the Registration Default
within  ten  (10)  business days will cause the Investor to suffer damages in an
amount  that will be difficult to ascertain. Accordingly, the parties agree that
it  is  appropriate  to  include a provision for liquidated damages. The parties
acknowledge  and  agree  that the liquidated damages provision set forth in this
section  represents the parties' good faith effort to quantify such damages and,
as  such,  agree  that  the  form  and  amount  of  such  liquidated damages are
reasonable  and  will  not  constitute  a  penalty.

It  is the intention of the parties that interest payable under any of the terms
of  this  Agreement  shall  not  exceed  the  maximum amount permitted under any
applicable law. If a law, which applies to this Agreement which sets the maximum
interest  amount, is finally interpreted so that the interest in connection with
this  Agreement  exceeds the permitted limits, then: (1) any such interest shall
be  reduced  by  the  amount  necessary  to reduce the interest to the permitted
limit; and (2) any sums already collected (if any) from the Company which exceed
the permitted limits will be refunded to the Company. The Investor may choose to
make  this  refund  by  reducing  the  amount  that  the Company owes under this
Agreement  or by making a direct payment to the Company. If a refund reduces the
amount  that  the  Company owes the Investor, the reduction will be treated as a
partial  payment.  In case any provision of this Agreement is held by a court of
competent  jurisdiction  to  be  excessive  in  scope  or  otherwise  invalid or
unenforceable, such provision shall be adjusted rather than voided, if possible,
so  that  it is enforceable to the maximum extent possible, and the validity and
enforceability of the remaining provisions of this Agreement will not in any way
be  affected  or  impaired  thereby.

f.  The  Company  shall use its best efforts to prevent the issuance of any stop
order  or  other suspension of effectiveness of a Registration Statement, or the
suspension of the qualification of any of the Registrable Securities for sale in
any  jurisdiction  and,  if such an order or suspension is issued, to obtain the
withdrawal  of  such  order or suspension at the earliest possible moment and to
notify  each  Holder who holds Registrable Securities being sold of the issuance
of  such order and the resolution thereof or its receipt of actual notice of the
initiation  or  threat  of  any  proceeding  for  such  purpose.

g.  The  Company  shall  permit  Holder and one legal counsel, designated by the
Dutchess, to review and comment upon a Registration Statement and all amendments
and  supplements  thereto  at least five (5) business days prior to their filing
with  the  SEC,  and  not  file  any  document  in  a form to which such counsel
reasonably  objects.  The  Company  shall  not  submit  to the SEC a request for
acceleration  of  the effectiveness of a Registration Statement or file with the
SEC  a Registration Statement or any amendment or supplement thereto without the
prior  approval  of  such  counsel,  which  approval  shall  not be unreasonably
withheld.

h.  reserved

i.  The  Company  shall make available for inspection by (i) Holder and (ii) one
firm  of  attorneys  and one firm of accountants or other agents retained by the
Holders  (collectively,  the  "Inspectors")  all  pertinent  financial and other
records,  and  pertinent  corporate  documents  and  properties  of  the Company
(collectively,  the  "Records"), as shall be reasonably deemed necessary by each
Inspector,  and  cause the Company's officers, directors and employees to supply
all  information  which any Inspector may reasonably request; provided, however,
that  each  Inspector  shall  hold  in  strict confidence and shall not make any
disclosure  (except to a Holder) or use of any Record or other information which
the  Company  determines  in  good  faith  to  be  confidential,  and  of  which
determination  the Inspectors are so notified, unless (a) the disclosure of such
Records  is  necessary  to  avoid  or  correct a misstatement or omission in any
Registration  Statement  or  is  otherwise  required under the 1933 Act, (b) the
release  of such Records is ordered pursuant to a final, non-appealable subpoena
or  order  from a court or government body of competent jurisdiction, or (c) the
information  in such Records has been made available to the public other than by
disclosure  in  violation  of this or any other agreement of which the Inspector
has  knowledge.  Each Holder agrees that it shall, upon learning that disclosure
of  such  Records  is  sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt notice to the Company and allow
the  Company,  at  its  expense,  to  undertake  appropriate  action  to prevent
disclosure  of,  or  to  obtain  a  protective  order  for,  the  Records deemed
confidential.

j.  The  Company  shall  hold  in  confidence  and  not  make  any disclosure of
information  concerning  Holder provided to the Company unless (i) disclosure of
such  information  is necessary to comply with federal or state securities laws,
(ii)  the  disclosure  of  such  information  is necessary to avoid or correct a
misstatement  or  omission  in  any Registration Statement, (iii) the release of
such  information  is  ordered  pursuant  to  a  subpoena  or  other  final,
non-appealable  order  from  a  court  or  governmental  body  of  competent
jurisdiction,  or (iv) such information has been made generally available to the
public  other  than  by  disclosure  in violation of this Agreement or any other
agreement.  The  Company  agrees that it shall, upon learning that disclosure of
such  information concerning a Holder is sought in or by a court or governmental
body  of  competent  jurisdiction  or  through  other means, give prompt written
notice  to  such  Holder  and  allow  such  Holder,  at the Holder's expense, to
undertake appropriate action to prevent disclosure of, or to obtain a protective
order  for,  such  information.

k.  The Company shall use its best efforts to secure or maintain designation and
quotation  of  all  the  Registrable  Securities  covered  by  any  Registration
Statement  on  the Principal Market. If, despite the Company's best efforts, the
Company  is  unsuccessful in satisfying the preceding sentence, it shall use its
best efforts to cause all the Registrable Securities covered by any Registration
Statement  to be listed on each other national securities exchange and automated
quotation system, if any, on which securities of the same class or series issued
by  the  Company  are  then  listed,  if any, if the listing of such Registrable
Securities  is  then  permitted  under the rules of such exchange or system. If,
despite  the  Company's  best efforts, the Company is unsuccessful in satisfying
the  two  preceding  sentences,  The  Company shall pay all fees and expenses in
connection  with  satisfying  its  obligation  under  this  Section  3(k).

l.  The  Company  shall  cooperate  with  the  Investor to facilitate the prompt
preparation  and  delivery  of certificates (not bearing any restrictive legend)
representing the Registrable Securities to be offered pursuant to a Registration
Statement  and  enable such certificates to be in such denominations or amounts,
as  the  case  may  be,  as  the  Holders  may  reasonably  request.

m. The Company shall provide a transfer agent for all the Registrable Securities
not  later  than  the  effective  date of the first Registration Statement filed
pursuant  hereto.

n.  If  requested  by  the  Holder,  the Company shall (i) as soon as reasonably
practical  incorporate  in  a  prospectus supplement or post-effective amendment
such information as such Holder reasonably determines should be included therein
relating  to  the  sale  and  distribution of Registrable Securities, including,
without  limitation, information with respect to the offering of the Registrable
Securities  to  be sold in such offering; (ii) make all required filings of such
prospectus  supplement  or  post-effective  amendment as soon as notified of the
matters  to  be  incorporated  in  such  prospectus supplement or post-effective
amendment; and (iii) supplement or make amendments to any Registration Statement
if  reasonably  requested  by  such  Holder.

o.  The  Company  shall use its best efforts to cause the Registrable Securities
covered  by  the  applicable  Registration  Statement  to  be registered with or
approved  by such other governmental agencies or authorities as may be necessary
to  consummate  the  disposition  of  such  Registrable  Securities.

p.  The  Company  shall  otherwise  use  its  best  efforts  to  comply with all
applicable  rules and regulations of the SEC in connection with any registration
hereunder.

s. The Company shall take all other reasonable actions necessary to expedite and
facilitate  disposition  by  the Holders of Registrable Securities pursuant to a
Registration  Statement.

4.  OBLIGATIONS  OF  THE  HOLDERS.

a. At least five (5) calendar days prior to the first anticipated filing date of
a  Registration Statement the Company shall notify Holder of the information the
Company requires from each such Holder if such Holder elects to have any of such
Holder's  Registrable  Securities  included  in  such Registration Statement. It
shall be a condition precedent to the obligations of the Company to complete the
registration  pursuant  to  this  Agreement  with  respect  to  the  Registrable
Securities  of  a particular Holder that such Holder shall furnish in writing to
the  Company  such information regarding itself, the Registrable Securities held
by  it and the intended method of disposition of the Registrable Securities held
by  it  as  shall  be  required  to  effect the registration of such Registrable
Securities and shall execute such documents in connection with such registration
as the Company may reasonably request. Each Holder covenants and agrees that, in
connection  with  any  sale  of  Registrable  Securities  by  it  pursuant  to a
Registration  Statement, it shall comply with the "Plan of Distribution" section
of  the  current  prospectus  relating  to  such  Registration  Statement.

b.  Each  Holder,  by  such  Holder's  acceptance of the Registrable Securities,
agrees  to  cooperate with the Company as reasonably requested by the Company in
connection  with  the  preparation  and  filing  of  any  Registration Statement
hereunder,  unless  such  Holder  has  notified  the  Company in writing of such
Holder's  election  to  exclude all of such Holder's Registrable Securities from
such  Registration  Statement.

c.  Each  Holder agrees that, upon receipt of written notice from the Company of
the  happening  of  any event of the kind described in Section 3(f) or the first
sentence  of  3(e),  such  Holder  will  immediately  discontinue disposition of
Registrable  Securities  pursuant to any Registration Statement(s) covering such
Registrable  Securities  until  such  Holder's  receipt  of  the  copies  of the
supplemented  or  amended  prospectus  contemplated by Section 3(f) or the first
sentence  of  3(e).

5.  EXPENSES  OF  REGISTRATION.

All  expenses,  other than underwriting discounts and commissions and other than
as  set  forth  in  the  Investment  Agreement,  incurred  in  connection  with
registrations,  filings  or  qualifications  pursuant  to  Sections  2  and  3,
including,  without  limitation,  all  registration,  listing and qualifications
fees,  printing  and  accounting fees, and fees and disbursements of counsel for
the Company shall be paid by the Company. The Holder is responsible for expenses
related to its own counsel, accountants and agents. The Holder is liable for its
own  tax  obligation  as  a  result  of  the  sale  of  the  common  stock.

6.  INDEMNIFICATION.

In the event any Registrable Securities are included in a Registration Statement
under  this  Agreement:

a.  To  the  fullest extent permitted by law, the Company will, and hereby does,
indemnify,  hold  harmless  and  defend  each  Holder who holds such Registrable
Securities,  the  directors,  officers,  partners,  employees,  counsel, agents,
representatives of, and each Person, if any, who controls, any Holder within the
meaning  of the 1933 Act or the Securities Exchange Act of 1934, as amended (the
"1934  Act"),  (each,  an  "Indemnified Person"), against any reasonable losses,
claims,  damages,  liabilities,  judgments,  fines,  penalties,  charges, costs,
attorneys'  fees,  amounts  paid  in  settlement  or  expenses, joint or several
(collectively,  "Claims"), incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing  by  or  before  any  court  or  governmental, administrative or other
regulatory  agency,  body  or the SEC, whether pending or threatened, whether or
not  an  indemnified party is or may be a party thereto ("Indemnified Damages"),
to  which  any  of them may become subject insofar as such Claims (or actions or
proceedings,  whether  commenced or threatened, in respect thereof) arise out of
or  are  based  upon:  (i) any untrue statement or alleged untrue statement of a
material  fact  in  a  Registration  Statement  or  any post-effective amendment
thereto  or  in  any  filing  made  in  connection with the qualification of the
offering  under  the  securities or other "blue sky" laws of any jurisdiction in
which Registrable Securities are offered ("Blue Sky Filing"), or the omission or
alleged  omission  to  state  a  material  fact required to be stated therein or
necessary  to  make  the statements therein, in light of the circumstances under
which  the  statements  therein  were  made,  not  misleading,  (ii)  any untrue
statement  or alleged untrue statement of a material fact contained in the final
prospectus  (as  amended  or  supplemented,  if  the Company files any amendment
thereof  or supplement thereto with the SEC) or the omission or alleged omission
to  state  therein  any  material  fact  necessary  to  make the statements made
therein,  in  light of the circumstances under which the statements therein were
made, not misleading, or (iii) any violation or alleged violation by the Company
of the 1933 Act, the 1934 Act, any other law, including, without limitation, any
state securities law, or any rule or regulation thereunder relating to the offer
or  sale of the Registrable Securities pursuant to a Registration Statement (the
matters  in  the  foregoing  clauses  (i)  through  (iii)  being,  collectively,
"Violations").  Subject  to  the  restrictions  set  forth  in Section 6(c) with
respect  to the number of legal counsel, the Company shall reimburse the Holders
and  each such controlling person, promptly as, for any reasonable legal fees or
other  reasonable  expenses incurred by them in connection with investigating or
defending  any  such  Claim.  Notwithstanding anything to the contrary contained
herein,  the indemnification agreement contained in this Section 6(a): (i) shall
not  apply  to  a Claim arising out of or based upon a Violation which is due to
the  inclusion  in  the  Registration  Statement of the information furnished in
writing to the Company by any Indemnified Person expressly for use in connection
with the preparation of the Registration Statement or any such amendment thereof
or  supplement  thereto; (ii) shall not be available to the extent such Claim is
based  on (a) a failure of the Holder to deliver or to cause to be delivered the
prospectus  made available by the Company or (b) the Indemnified Person's use of
an incorrect prospectus despite being promptly advised in advance by the Company
in  writing  not to use such incorrect prospectus; (iii) any claims based on the
manner of sale of the Registrable Securities by the Holder; (iv) any omission of
the  Holder  to notify the Company of any material fact that should be stated in
the Registration Statement or prospectus relating to the Holder or the manner of
sale;  or (v) shall not apply to amounts paid in settlement of any Claim if such
settlement  is  effected without the prior written consent of the Company, which
consent  shall not be unreasonably withheld. Such indemnity shall remain in full
force  and  effect  regardless  of any investigation made by or on behalf of the
Indemnified Person and shall survive the resale of the Registrable Securities by
the  Holders  pursuant  to  the  Registration  Statement.

b.  In  connection  with  any  Registration  Statement  in  which  a  Holder  is
participating,  each  such Holder agrees to severally and not jointly indemnify,
hold  harmless  and  defend, to the same extent and in the same manner as is set
forth  in Section 6(a), the Company, each of its directors, each of its officers
who  signs  the  Registration  Statement,  each Person, if any, who controls the
Company  within  the  meaning  of the 1933 Act or the 1934 Act and the Company's
agents  (collectively  and  together with an Indemnified Person, an "Indemnified
Party"),  against  any  Claim  or  Indemnified  Damages to which any of them may
become  subject,  under the 1933 Act, the 1934 Act or otherwise, insofar as such
Claim  or  Indemnified  Damages arise out of or are based upon any Violation, in
each  case  to the extent, and only to the extent, that such Violation is due to
the inclusion in the Registration Statement of the written information furnished
to  the  Company  by  such  Holder  expressly  for  use  in connection with such
Registration Statement; and, subject to Section 6(c), such Holder will reimburse
any  legal  or  other  expenses  reasonably  incurred by them in connection with
investigating or defending any such Claim; provided, however, that the indemnity
agreement  contained  in  this  Section  6(b)  and the agreement with respect to
contribution  contained  in  Section  7  shall  not  apply  to  amounts  paid in
settlement of any Claim if such settlement is effected without the prior written
consent  of  such  Holder,  which  consent  shall  not be unreasonably withheld;
provided,  further,  however, that the Holder shall be liable under this Section
6(b)  for  only that amount of a Claim or Indemnified Damages as does not exceed
the  net  proceeds  to  such  Holder  as  a  result  of  the sale of Registrable
Securities  pursuant to such Registration Statement. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of
such  Indemnified  Party  and  shall  survive  the  resale  of  the  Registrable
Securities  by  the  Holders  pursuant  to  the  Registration  Statement.
Notwithstanding  anything  to the contrary contained herein, the indemnification
agreement  contained  in  this  Section  6(b)  with  respect  to any preliminary
prospectus shall not inure to the benefit of any Indemnified Party if the untrue
statement  or  omission of material fact contained in the preliminary prospectus
were  corrected  on  a  timely  basis  in  the  prospectus,  as  then amended or
supplemented.  This  indemnification  provision  shall  apply separately to each
Investor  and  liability  hereunder  shall  not  be  joint  and  several.

c.  Promptly  after  receipt by an Indemnified Person or Indemnified Party under
this  Section  6  of  notice  of  the  commencement  of any action or proceeding
(including  any  governmental  action  or  proceeding)  involving  a Claim, such
Indemnified  Person or Indemnified Party shall, if a Claim in respect thereof is
to  be  made against any indemnifying party under this Section 6, deliver to the
indemnifying  party  a  written  notice  of  the  commencement  thereof, and the
indemnifying  party  shall  have the right to participate in, and, to the extent
the  indemnifying  party  so  desires, jointly with any other indemnifying party
similarly  noticed,  to  assume  control  of  the  defense  thereof with counsel
mutually  satisfactory  to  the indemnifying party and the Indemnified Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person  or Indemnified Party shall have the right to retain its own
counsel  with the fees and expenses to be paid by the indemnifying party, if, in
the  reasonable  opinion  of  counsel  retained  by  the  Indemnified  Person or
Indemnified  Party,  the  representation by counsel of the Indemnified Person or
Indemnified  Party  and  the  indemnifying  party  would be inappropriate due to
actual  or  potential  differing  interests  between  such Indemnified Person or
Indemnified  Party  and  any  other  party  represented  by such counsel in such
proceeding. The indemnifying party shall pay for only one separate legal counsel
for  the Indemnified Persons or the Indemnified Parties, as applicable, and such
counsel  shall  be  selected  by  the  Holders,  if  the Holders are entitled to
indemnification  hereunder,  or  the  Company,  if  the  Company  is entitled to
indemnification  hereunder,  as applicable. The Indemnified Party or Indemnified
Person  shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or Claim by the indemnifying party and
shall  furnish to the indemnifying party all information reasonably available to
the  Indemnified  Party  or  Indemnified  Person which relates to such action or
Claim.  The  indemnifying  party shall keep the Indemnified Party or Indemnified
Person  fully  appraised  at  all  times  as to the status of the defense or any
settlement  negotiations  with  respect  thereto. No indemnifying party shall be
liable  for  any  settlement of any action, claim or proceeding affected without
its  written  consent,  provided, however, that the indemnifying party shall not
unreasonably  withhold,  delay  or  condition its consent. No indemnifying party
shall,  without  the  consent  of  the  Indemnified Party or Indemnified Person,
consent  to  entry  of  any  judgment  or  enter  into  any  settlement or other
compromise which does not include as an unconditional term thereof the giving by
the  claimant  or plaintiff to such Indemnified Party or Indemnified Person of a
release  from  all liability in respect to such Claim. Following indemnification
as  provided  for  hereunder,  the indemnifying party shall be surrogated to all
rights  of the Indemnified Party or Indemnified Person with respect to all third
parties,  firms or corporations relating to the matter for which indemnification
has  been  made. The failure to deliver written notice to the indemnifying party
within  a  reasonable  time  of  the  commencement  of any such action shall not
relieve  such  indemnifying  party of any liability to the Indemnified Person or
Indemnified  Party  under  this  Section  6,  except  to  the  extent  that  the
indemnifying  party  is  prejudiced  in  its  ability  to  defend  such  action.

d.  The  indemnification  required  by  this Section 6 shall be made by periodic
payments  of  the  amount  thereof  during  the  course  of the investigation or
defense,  as  and  when  bills are received or Indemnified Damages are incurred.

e.  The  indemnity  agreements  contained herein shall be in addition to (i) any
cause  of action or similar right of the Indemnified Party or Indemnified Person
against  the  indemnifying  party  or  others,  and  (ii)  any  liabilities  the
indemnifying  party  may  be  subject  to  pursuant  to  the  law.

7.  CONTRIBUTION.
To  the  extent  any  indemnification  by an indemnifying party is prohibited or
limited  by  law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section
6  to  the  fullest  extent  permitted  by  law; provided, however, that: (i) no
contribution  shall  be  made under circumstances where the maker would not have
been  liable  for indemnification under the fault standards set forth in Section
6;  (ii)  no  seller  of  Registrable  Securities  guilty  of  fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled  to  contribution from any seller of Registrable Securities who was not
guilty  of fraudulent misrepresentation; and (iii) contribution by any seller of
Registrable  Securities shall be limited in amount to the net amount of proceeds
received  by  such  seller  from  the  sale  of  such  Registrable  Securities.

8.  REPORTS  UNDER  THE  1934  ACT.
With  a  view  to  making  available  to  the  Holders  the benefits of Rule 144
promulgated  under  the  1933 Act or any other similar rule or regulation of the
SEC that may at any time permit the Holders to sell securities of the Company to
the  public  without  registration  ("Rule  144"),  the  Company  agrees  to:
a. make and keep public information available, as those terms are understood and
defined  in  Rule  144;
b. file with the SEC in a timely manner all reports and other documents required
of  the  Company  under  the  1933  Act  and the 1934 Act so long as the Company
remains  subject  to  such requirements (it being understood that nothing herein
shall  limit  the  Company's  obligations  under  Section 5(c) of the Investment
Agreement)  and  the  filing of such reports and other documents is required for
the  applicable  provisions  of  Rule  144;  and
c.  make  available  to  the  Investor,  promptly  upon  request,  (i) a written
statement by the Company that it has complied with the reporting requirements of
Rule  144,  the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual
or quarterly report of the Company and such other reports and documents so filed
by  the Company, and (iii) such other information as may be reasonably requested
to  permit  the  Investor  to  sell such securities pursuant to Rule 144 without
registration.

9.  NO  ASSIGNMENT  OF  REGISTRATION  RIGHTS.
The  rights  under  this  Agreement  shall  not  be  assignable.

10.  AMENDMENT  OF  REGISTRATION  RIGHTS.
Provisions of this Agreement may be amended only with the written consent of the
Company  and Holders. No such amendment shall be effective to the extent that it
applies  to  less  than  all  of  the  Holders  of  the  Registrable Securities.

11.  MISCELLANEOUS.
a.  A  Person  is  deemed to be a Holder of Registrable Securities whenever such
Person  owns  of  record  such  Registrable  Securities. If the Company receives
conflicting  instructions,  notices  or  elections from two or more Persons with
respect to the same Registrable Securities, the Company shall act upon the basis
of  instructions,  notice or election received from the registered owner of such
Registrable  Securities.
b.  Any  notices or other communications required or permitted to be given under
the  terms  of this Agreement must be in writing and will be deemed to have been
delivered  (i)  upon receipt, when delivered personally; (ii) upon receipt, when
sent  by  facsimile  (provided a confirmation of transmission is mechanically or
electronically  generated  and  kept on file by the sending party); or (iii) one
(1)  day  after deposit with a nationally recognized overnight delivery service,
in  each case properly addressed to the party to receive the same. The addresses
and  facsimile  numbers  for  such  communications  shall  be:
IF  TO  THE  COMPANY:

Kevin  Ryan
Chief  Executive  Officer  and  Chairman
11782  Western  Avenue,  Unit  18
Stanton,  California  90680
Telephone:  (714)  895-0944
Facsimile:  636

With  a  copy  to:
Amy  Trombly
1163  Walnut  Street,  Suite  7
Newton,  MA  02461
Telephone:  617-243-0060
Facsimile:  309-406-1426

IF  TO  THE  INVESTOR:
At  the  address  listed  in  the  Questionnaire.

Each  party shall provide five (5) business days prior notice to the other party
of  any  change  in  address,  phone  number  or  facsimile  number.

c.  Failure of any party to exercise any right or remedy under this Agreement or
otherwise,  or  delay  by  a party in exercising such right or remedy, shall not
operate  as  a  waiver  thereof.

d. The laws of the Commonwealth of Massachusetts shall govern all issues arising
from  or  related to this Agreement without regard to the principles of conflict
of  laws. Each party hereby irrevocably submits to the exclusive jurisdiction of
the  state  and federal courts sitting in the City of Boston, County of Suffolk,
for  the adjudication of any dispute hereunder or in connection herewith or with
any  transaction contemplated hereby or discussed herein, and hereby irrevocably
waives,  and  agrees  not to assert in any suit, action or proceeding, any claim
that  it  is  not personally subject to the jurisdiction of any such court, that
such  suit, action or proceeding is brought in an inconvenient forum or that the
venue  of  such  suit,  action  or  proceeding  is  improper.  Each party hereby
irrevocably  waives  personal  service  of process and consents to process being
served  in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that
such  service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right
to  serve  process  in  any  manner  permitted  by law. If any provision of this
Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or  unenforceability  shall  not  affect  the  validity or enforceability of the
remainder  of  this  Agreement  in  that  jurisdiction  or  the  validity  or
enforceability  of  any  provision  of this Agreement in any other jurisdiction.

e.  This Agreement and the Transaction Documents constitute the entire agreement
among  the parties hereto with respect to the subject matter hereof and thereof.
There  are  no  restrictions,  promises,  warranties or undertakings, other than
those  set  forth  or  referred  to  herein  and  therein.

f.  This  Agreement and the Transaction Documents supersede all prior agreements
and  understandings  among the parties hereto with respect to the subject matter
hereof  and  thereof.

g.  The  headings  in  this  Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof. Whenever required by the
context  of  this Agreement, the singular shall include the plural and masculine
shall  include  the feminine. This Agreement shall not be construed as if it had
been  prepared  by  one  of  the  parties,  but rather as if all the parties had
prepared  the  same.

h. This Agreement may be executed in two or more identical counterparts, each of
which  shall be deemed an original but all of which shall constitute one and the
same  agreement.  This  Agreement, once executed by a party, may be delivered to
the  other  party  hereto  by facsimile transmission of a copy of this Agreement
bearing  the  signature  of  the  party  so  delivering  this  Agreement.

i.  Each party shall do and perform, or cause to be done and performed, all such
further  acts  and  things,  and  shall  execute  and  deliver  all  such  other
agreements,  certificates,  instruments  and  documents,  as the other party may
reasonably  request in order to carry out the intent and accomplish the purposes
of  this Agreement and the consummation of the transactions contemplated hereby.

k.  The language used in this Agreement will be deemed to be the language chosen
by  the  parties  to  express  their  mutual  intent  and  no  rules  of  strict
construction  will  be  applied  against  any  party.
[Remainder  of  Page  Left  Intentionally  Blank]

IN  WITNESS  WHEREOF, the parties have caused this Registration Rights Agreement
to  be  duly  executed  as  of  the  day  and  year  first  above  written.
XTREME  COMPANIES,  INCORPORATED

   By:  /s/ Kevin Ryan
        ------------------------
 Name:  Kevin Ryan
Title:  Chairman

PRESTON  CAPITAL  PARTNERS

     By:  /s/  John  Wykoff
        ---------------------
 Name:  John  Wykoff
Title:    A  Managing  MemberExhibit 10.21

                              INVESTMENT AGREEMENT

INVESTMENT  AGREEMENT  (this  "AGREEMENT"),  dated  as of August 24, 2005 by and
between  XTREME  COMPANIES,  INCORPORATED, a Nevada corporation (the "COMPANY"),
and  Preston  Capital  Partners,  a  Delaware Limited Liability Corporation (the
"INVESTOR").

WHEREAS,  the  parties desire that, upon the terms and subject to the conditions
contained  herein,  the  Investor  shall invest up to $5,000,000 to purchase the
Company's  common  stock,  no  par  value  per  share  (the  "COMMON  STOCK");

WHEREAS,  such  investments  will  be  made  in  reliance upon the provisions of
Section 4(2) under the Securities Act of 1933, as amended (the "1933 ACT"), Rule
506  of  Regulation  D,  and  the  rules and regulations promulgated thereunder,
and/or  upon such other exemption from the registration requirements of the 1933
Act  as may be available with respect to any or all of the investments in Common
Stock  to  be  made  hereunder;  and

WHEREAS,  contemporaneously  with  the execution and delivery of this Agreement,
the  parties hereto are executing and delivering a Registration Rights Agreement
substantially in the form attached hereto as Exhibit A (the "REGISTRATION RIGHTS
AGREEMENT")  pursuant  to  which  the  Company  has  agreed  to  provide certain
registration  rights  under  the  1933  Act,  and  the  rules  and  regulations
promulgated  thereunder,  and  applicable  state  securities  laws.

NOW  THEREFORE,  in  consideration  of  the  foregoing  recitals, which shall be
considered  an integral part of this Agreement, the covenants and agreements set
forth  hereafter,  and  other  good  and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Investor hereby
agree  as  follows:

1.  DEFINITIONS.  As  used in this Agreement, the following terms shall have the
following  meanings  specified  or indicated, and such meanings shall be equally
applicable  to  the  singular  and  plural  forms  of  the  defined  terms.
"1933  ACT"  shall  mean  the  Securities  Act  of  1933,  as it may be amended.
"1934 ACT" shall mean the Securities Exchange Act of 1934, as it may be amended.
"AFFILIATE"  shall  have  the  meaning  specified  in  Section  5(h).
"AGREEMENT"  shall  mean  this  Investment  Agreement.
"BUY-IN"  shall  have  the  meaning  specified  in  Section  6.
"BUY-IN  ADJUSTMENT  AMOUNT"  shall  have  the  meaning  specified in Section 6.
"CLOSING"  shall  have  the  meaning  specified  in  Section  2(h).
"CLOSING  DATE"  shall mean, as defined in Section 2(h), the date which is seven
(7)  Trading  Days  following  the  Put  Notice  Date.
"COMMON  STOCK"  shall  mean  the  Common  Stock  of  the  Company.
"CONTROL"  or  "CONTROLS"  shall  have  the  meaning  specified in Section 5(h).
"COVERING  SHARES"  shall  have  the  meaning  specified  in  Section  6.
"EFFECTIVE  DATE"  shall mean the date the SEC declares effective under the 1933
Act  the  Registration  Statement  covering  the  Securities.
"ENVIRONMENTAL  LAWS"  shall  have  the  meaning  specified  in  Section  4(m).
"EXECUTION  DATE"  shall mean the date all Transaction Documents are executed by
the  Company  and  Investor.
"INDEMNITEES"  shall  have  the  meaning  specified  in  Section  10.
"INDEMNIFIED  LIABILITIES"  shall  have  the  meaning  specified  in Section 10.
"INEFFECTIVE  PERIOD"  shall  mean  any  period  of  time  that the Registration
Statement  or  any  Supplemental  Registration  Statement  (as  defined  in  the
Registration  Rights  Agreement)  becomes ineffective or unavailable for use for
the  sale  or resale, as applicable, of any or all of the Registrable Securities
(as  defined  in  the  Registration  Rights Agreement) for any reason (or in the
event  the  prospectus under either of the above is not current and deliverable)
during  any  time  period  required  under  the  Registration  Rights Agreement.
"INVESTOR"  shall  mean  Preston  Capital  Partners.,  a  Delaware  LLC.
"MAJOR  TRANSACTION"  shall  have  the  meaning  specified  in  Section  2(g).
"MATERIAL  ADVERSE  EFFECT"  shall  have  the meaning specified in Section 4(a).
"MATERIAL  FACTS"  shall  have  the  meaning  specified  in  Section  2(m).
"MAXIMUM  COMMON  STOCK  ISSUANCE"  shall  have the meaning specified in Section
2(j).
"MINIMUM ACCEPTABLE PRICE" with respect to any Put Notice Date shall mean 75% of
the  average  of  the closing bid prices for the fifteen (15) Trading Day period
immediately  preceding  such  Put  Notice  Date.
"OPEN  PERIOD"  shall mean the period beginning on and including the Trading Day
immediately  following  the Effective Date and ending on the earlier to occur of
(i)  the  date  which is 36 (thirty-six) months from the Effective Date and (ii)
termination  of  the  Agreement  in  accordance  with  Section  9.
"PRICING  PERIOD"  shall  mean  the  period beginning on the Put Notice Date and
ending  on  and including the date which is five (5) Trading Days after such Put
Notice  Date.
"PRINCIPAL  MARKET"  shall  mean the American Stock Exchange, Inc., the National
Association  of  Securities  Dealer's,  Inc.  OTC-BB, the NASDAQ National Market
System  or  the  NASDAQ  Small  Cap Market, whichever is the principal market on
which  the  Common  Stock  is  listed.
"PROSPECTUS"  shall mean the prospectus, preliminary prospectus and supplemental
prospectus  used  in  connection  with  the  Registration  Statement.
"PURCHASE  AMOUNT"  shall  mean the total amount being paid by the Investor on a
particular  Closing  Date  to  purchase  the  Securities.
"PURCHASE PRICE" shall mean 95% (ninety-five percent) of the average of the Four
lowest  posted  bid  price  of  the  Common Stock during the Pricing Period in a
Trading  Day.
"PUT  AMOUNT"  shall  have  the  meaning  set  forth  in  Section  2(b)  hereof.
"PUT  NOTICE"  shall  mean  a written notice sent to the Investor by the Company
stating  the  Put  Amount  of Shares the Company intends to sell to the Investor
pursuant  to the terms of the Agreement and stating the current number of Shares
issued  and  outstanding  on  such  date.
"PUT  NOTICE  DATE"  shall mean the Trading Day immediately following the day on
which  the  Investor receives a Put Notice, however a Put Notice shall be deemed
delivered on (x) the Trading Day it is received by facsimile or otherwise by the
Investor  if  such  notice is received prior to 2:00 pm Eastern Time, or (y) the
immediately  succeeding  Trading Day if it is received by facsimile or otherwise
after  2:00  pm  Eastern  Time  on  a  Trading  Day. No Put Notice may be deemed
delivered  on  a  day  that  is  not  a  Trading  Day.
"PUT  RESTRICTION" shall mean the days between the end of the Pricing Period and
the  date  on  which  the  Investor  deems the Put closed. During this time, the
Company  shall  not  be  entitled to deliver another Put Notice unless there has
been  a  release  of  shares.
"REGISTRATION  OPINION  DEADLINE"  shall mean the date that is three (3) Trading
Days  prior  to  each  Put  Notice  Date.
"REGISTRATION  PERIOD"  shall  have  the  meaning  specified  in  Section  5(c).
"REGISTRATION  RIGHTS  AGREEMENT"  shall  mean the Agreement entered into by the
Company  with  Investor  for  the  registration  of  the  Securities.
"REGISTRATION  STATEMENT"  means the registration statement of the Company filed
under  the  1933  Act  covering  the  Common  Stock  issuable  hereunder.
"RELATED  PARTY"  shall  have  the  meaning  specified  in  Section  5(h).
"RESOLUTION"  shall  have  the  meaning  specified  in  Section  8(f).
"SEC"  shall  mean  the  U.S.  Securities  &  Exchange  Commission.
"SEC  DOCUMENTS"  shall  have  the  meaning  specified  in  Section  4(f).
"SECURITIES"  shall mean the shares of Common Stock issued pursuant to the terms
of  the  Agreement.
"SHARES"  shall  mean  the  shares  of common stock of the Company having no par
value  per  share.
"SOLD  SHARES"  shall  have  the  meaning  specified  in  Section  6.
"SUBSIDIARIES"  shall  have  the  meaning  specified  in  Section  4(a).
"TRADING DAY" shall mean any day on which the Principal Market for the Company's
common  stock  is  open  for  trading,  from the hours of 9:30 am until 4:00 pm.
"TRANSACTION  DOCUMENTS"  shall  mean  this  Agreement,  the Registration Rights
Agreement,  the Investor Agreement and each of the other agreements entered into
by  the  parties  hereto  in  connection  with  this  Agreement.

2.  PURCHASE  AND  SALE  OF  COMMON  STOCK

a.  Purchase  and  Sale of Common Stock. Subject to the terms and conditions set
forth herein, the Company shall issue and sell to the Investor, and the Investor
shall purchase from the Company, up to that number of Shares having an aggregate
Purchase  Price  of  $5,000,000.

b.  Delivery  of  Put  Notices.  (i)  Subject to the terms and conditions of the
Transaction Documents, and from time to time during the Open Period, the Company
may,  in  its sole discretion, deliver a Put Notice to the Investor which states
the  Put Amount (designated in shares of Common Stock) which the Company intends
to  sell  to the Investor on a Closing Date. The Put Notice shall be in the form
attached  hereto  as  Exhibit  "F" and incorporated herein by reference. The Put
Amount  designated  by  the  Company  in  the  form  of a Put Notice shall be as
follows:
The  maximum  amount  that  the Company shall be entitled to Put to the Investor
shall  be  $100,000  per  Put.
During the Open Period, the Company shall not be entitled to submit a Put Notice
until  after the previous Closing has been completed. The Purchase Price for the
Common  Stock  identified  in  the Put Notice shall be equal to 95% (ninety-five
percent)  of  the  average  of four lowest posted bid prices of the Common Stock
during  the  Pricing  Period.
(ii)  If the closing bid price during the applicable Pricing Period with respect
to  that  Put  Notice is less than 75% (seventy-five percent) of the closing bid
prices  of  the  Common Stock for the fifteen (15) Trading Days prior to the Put
Notice  Date ("MINIMUM ACCEPTABLE PRICE") the Put Notice will terminate, only at
the  Company's  request,  sent  via FACSIMILE to the Investor, the Investor will
continue  the  Put until the FACSIMILE is received by the Investor. In the event
that  the  closing  bid price for the applicable Pricing Period is less than the
Minimum  Acceptable  Price,  the  Company  may  elect in its sole discretion, by
sending  written notice to the Investor via facsimile, to cancel that portion of
the  Put  Notice  remaining  for that number of Trading Days remaining after the
written  cancellation  notice  is  received by the Investors. The written notice
shall  be deemed received by the Investors on (i) the Trading Day it is actually
received  by  facsimile or otherwise by the Investors if such notice is received
on  or  prior  to  9:00  A.M.  New York time, or (ii) the immediately succeeding
Trading  Day  if  it  is  received  by  facsimile  after  9:00
A.M.  New  York  time  on  a  Trading  Day or at anytime on a day which is not a
Trading  Day.  Notwithstanding  the  foregoing,  there  shall  be a closing with
respect  to, and the Company shall be responsible for delivering, that number of
shares  of  Common Stock to the Investor that were sold by the Investors through
and  including  the  end  of  the Trading Day the written cancellation notice is
received  by  the  Investor.
(iii) Within Thirteen (13) calendar days after the commencement of each calendar
quarter occurring subsequent to the commencement of the Open Period, the Company
undertakes  to  notify  Investor as to its reasonable expectations as to the Put
Amount  it  intends  to  raise during such calendar quarter, if any, through the
issuance  of  Put Notices. Such notification shall constitute only the Company's
good  faith  estimate  with respect to such calendar quarter and shall in no way
obligate  the  Company  to  raise  such  amount  during such calendar quarter or
otherwise limit its ability to deliver Put Notices during such calendar quarter.
The  failure  by  the  Company to comply with this provision can be cured by the
Company's  notifying Investor at any time as to its reasonable expectations with
respect  to  the  current  calendar  quarter.

c.  Interest.  It  is the intention of the parties that any interest that may be
deemed  to  be  payable under this Agreement shall not exceed the maximum amount
permitted  under  any  applicable law. If a law, which applies to this Agreement
which  sets  the  maximum  interest  amount,  is finally interpreted so that the
interest  in  connection with this Agreement exceeds the permitted limits, then:
(1)  any  such  interest  shall be reduced by the amount necessary to reduce the
interest  to the legally permitted limit; and (2) any sums already collected (if
any) from the Company which exceed the legally permitted limits will be refunded
to  the  Company.  The  Investor  may choose to make this refund by reducing the
amount  that the Company owes under this Agreement or by making a direct payment
to  the  Company.  If  a  refund  reduces  the  amount that the Company owes the
Investor,  the  reduction  will  be  treated  as  a partial payment. In case any
provision  of  this Agreement is held by a court of competent jurisdiction to be
excessive  in  scope or otherwise invalid or unenforceable, such provision shall
be  adjusted  rather  than voided, if possible, so that it is enforceable to the
maximum  extent  possible,  and the validity and enforceability of the remaining
provisions  of  this  Agreement  will  not  in  any  way be affected or impaired
thereby.

d. INVESTOR'S OBLIGATION TO PURCHASE SHARES. Subject to the conditions set forth
in  this  Agreement, following the Investor's receipt of a validly delivered Put
Notice,  the  Investor shall be required to purchase from the Company during the
related  Pricing Period that number of Shares having an aggregate Purchase Price
equal  to  the  lesser  of  (i)  the Put Amount set forth in the Put Notice, and
(ii)  20%  of  the  aggregate  trading  volume  of  the  Common Stock during the
applicable Pricing Period times (x) 95% of the average of (4) lowest closing bid
prices  of  the  Company's Common Stock during the specified Pricing Period, but
only if said Shares bear no restrictive legend, are not subject to stop transfer
instructions  and  are  being held in escrow, pursuant to Section 2(h), prior to
the  applicable  Closing  Date.  No put shall exceed $100,000.

e. Limitation on Investor's Obligation to Purchase Shares. In no event shall the
Investor  purchase  Shares other than pursuant to this Agreement until such date
as  this  Agreement  is  terminated.

f.  Conditions  to  Investor's  Obligation  to  Purchase Shares. Notwithstanding
anything to the contrary in this Agreement, the Company shall not be entitled to
deliver  a  Put  Notice  and the Investor shall not be obligated to purchase any
Shares  at  a  Closing (as defined in Section 2(h)) unless each of the following
conditions  are  satisfied:
(i) a Registration Statement shall have been declared effective and shall remain
effective  and  available  for  the resale of all the Registrable Securities (as
defined  in  the  Registration  Rights Agreement) at all times until the Closing
with  respect  to  the  subject  Put  Notice;
(ii) at all times during the period beginning on the related Put Notice Date and
ending  on  and  including the related Closing Date, the Common Stock shall have
been  listed  on  the  Principal  Market  and shall not have been suspended from
trading  thereon  for  a  period of five (5) consecutive Trading Days during the
Open  Period  and  the  Company  shall  not have been notified of any pending or
threatened  proceeding  or  other  action to delist or suspend the Common Stock;
(iii)  the  Company  has  complied  with its obligations and is otherwise not in
breach  of  a  material  provision  of, or in default under, this Agreement, the
Registration  Rights  Agreement  or  any  other agreement executed in connection
herewith  which has not been corrected prior to delivery of the Put Notice Date;
(iv)  no  injunction  shall  have  been  issued  and  remain in force, or action
commenced  by  a  governmental authority which has not been stayed or abandoned,
prohibiting  the  purchase  or  the  issuance  of  the  Securities;  and
(v)  the  issuance  of  the Securities will not violate the shareholder approval
requirements  of  the  Principal  Market.
If  any of the events described in clauses (i) through (v) above occurs during a
Pricing  Period,  then the Investor shall have no obligation to purchase the Put
Amount  of  Common  Stock  set  forth  in  the  applicable  Put  Notice.

g. For purposes of this Agreement, a "MAJOR TRANSACTION" shall be deemed to have
occurred upon the closing of any of the following events: (i) the consolidation,
merger  or other business combination of the Company with or into another person
(other  than  pursuant to a migratory merger effected solely for the purposes of
changing  the  jurisdiction  of  incorporation  of  the  Company or other than a
transaction  in which the Company is the surviving corporation) (ii) the sale or
transfer  of  all  or  substantially  all  of the Company's assets; or (iii) the
consummation  of  a purchase, tender or exchange offer made to, and accepted by,
the holders of more than 30% of the economic interest in, or the combined voting
power  of  all  classes  of  voting  stock  of,  the  Company.

h.  Mechanics  of Purchase of Shares by Investor. Subject to the satisfaction of
the  conditions set forth in Sections 2(f), 7 and 8, the closing of the purchase
by  the  Investor of Shares (a "CLOSING") shall occur on the date which is Seven
(7)  Trading  Days following the applicable Put Notice Date or when deemed close
by  the  investor.  (each  a "CLOSING DATE") Prior to each Closing Date, (i) the
Company  shall  deliver to the Investor, certificates representing the Shares to
be  issued  to  the  Investor  on  such  date  and registered in the name of the
Investor  and  (ii) the Investor shall deliver to the Company the Purchase Price
to be paid for such Shares (after Investor has received such Shares), determined
as  set  forth  in  Section  2(b)  and  (d), by wire transfer. The Company shall
instruct  the  transfer agent to send the certificate via overnight delivery and
supply  the tracking number and amount of shares to Investor via E-mail. In lieu
of  delivering  physical  certificates  representing the Securities and provided
that  the Company's transfer agent then is participating in The Depository Trust
Company  ("DTC")  Fast  Automated  Securities  Transfer  ("FAST")  program, upon
request  of  the  Investor,  the  Company  shall use its commercially reasonable
efforts to cause its transfer agent to electronically transmit the Securities by
crediting  the  account of the Investor's prime broker (which shall be specified
by  the  Investor  a reasonably sufficient time in advance) with DTC through its
Deposit  Withdrawal  Agent  Commission  ("DWAC")  system.
The  Company  understands  that a delay in the issuance of Securities beyond the
Closing  Date could result in economic loss to the Investor. After the Effective
Date,  as  compensation to the Investor for such loss, the Company agrees to pay
late  payments  to  the  Investor  for  late issuance of Securities (delivery of
Securities  after  the applicable Closing Date) in accordance with the following
schedule  (where  "No. of Days Late" is defined as the number of days beyond the
Closing  Date):

Late  Payment  For  Each
     No.  of  Days  Late    $10,000  of  Common  Stock

     1                         $10
     2                         $20
     3                         $30
     4                         $40
     5                         $50
     6                         $60
     7                         $70
     8                         $80
     9                         $90
    10                         $100
   Over  10                    $100  +  $100  for  each
                               Business  Day  late  beyond  10

The  Company  shall  pay any payments incurred under this Section in immediately
available  funds upon demand. Nothing herein shall limit the Investor's right to
pursue  actual  damages  for  the  Company's  failure  to  issue and deliver the
Securities  to  the Investor, except to the extent that such late payments shall
constitute  payment  for  and  offset  any  such  actual  damages alleged by the
Investor,  and  any  Buy  In  Adjustment  Amount.

i.  Reserved.

j.  Overall  Limit  on Common Stock Issuable. Notwithstanding anything contained
herein  to the contrary, if during the Open Period the Company becomes listed on
an  exchange that limits the number of shares of Common Stock that may be issued
without  shareholder approval, then the number of Shares issuable by the Company
and  purchasable  by the Investor, including the shares of Common Stock issuable
to  the Investors pursuant to Section 11(b), shall not exceed that number of the
shares  of  Common  Stock  that  may  be  issuable without shareholder approval,
subject  to  appropriate  adjustment  for  stock  splits,  stock  dividends,
combinations  or  other similar recapitalization affecting the Common Stock (the
"MAXIMUM  COMMON  STOCK ISSUANCE"), unless the issuance of Shares, including any
Common  Stock to be issued to the Investors pursuant to Section 11(b), in excess
of  the  Maximum  Common Stock Issuance shall first be approved by the Company's
shareholders  in  accordance with applicable law and the By-laws and Articles of
Incorporation  of  the Company, if such issuance of shares of Common Stock could
cause a delisting on the Principal Market. The parties understand and agree that
the  Company's  failure  to seek or obtain such shareholder approval shall in no
way adversely affect the validity and due authorization of the issuance and sale
of  Securities  or  the  Investor's  obligation in accordance with the terms and
conditions  hereof  to  purchase  a  number of Shares in the aggregate up to the
Maximum  Common  Stock Issuance limitation, and that such approval pertains only
to the applicability of the Maximum Common Stock Issuance limitation provided in
this  Section  2(j).

3.  INVESTOR'S  REPRESENTATIONS,  WARRANTIES  AND  COVENANTS.
The  Investor  represents  and  warrants  to  the  Company, and covenants, that:

a.  Sophisticated  Investor.  The  Investor  has,  by reason of its business and
financial experience, such knowledge, sophistication and experience in financial
and  business matters and in making investment decisions of this type that it is
capable  of  (A)  evaluating  the  merits  and  risks  of  an  investment in the
Securities  and  making  an informed investment decision, (B) protecting its own
interest  and (C) bearing the economic risk of such investment for an indefinite
period  of  time.

b.  Authorization;  Enforcement.  This  Agreement  has  been  duly  and  validly
authorized,  executed and delivered on behalf of the Investor and is a valid and
binding agreement of the Investor enforceable against the Investor in accordance
with its terms, subject as to enforceability to general principles of equity and
to  applicable  bankruptcy,  insolvency, reorganization, moratorium, liquidation
and  other  similar laws relating to, or affecting generally, the enforcement of
applicable  creditors'  rights  and  remedies.

c.  Section  9 of the 1934 Act. During the Open Period, the Investor will comply
with  the  provisions  of  Section  9 of the 1934 Act, and the rules promulgated
thereunder,  with  respect  to  transactions  involving  the  Common  Stock. The
Investor  agrees  not  to  short,  either  directly  or  indirectly  through its
affiliates,  principals  or advisors, the Company's common stock during the term
of this Agreement, however, it shall not be deemed a short if the Investor sells
common  stock  after  the  delivery  of  the  Put  Notice  from  the  Company.

d.  Accredited  Investor.  Investor  is an "Accredited Investor" as that term is

defined  in  Rule  501(a)(3)  of  Regulation  D  of  the  1933  Act.
e.  No  Conflicts.  The  execution,  delivery and performance of the Transaction
Documents  by  the  Investor  and  the  consummation  by  the  Investor  of  the
transactions  contemplated  hereby and thereby will not result in a violation of
the  Articles of Incorporation, the By-laws or other organizational documents of
the  Investor.

f.  The  Investor has had an opportunity to discuss the business, management and
financial  affairs of the Company with the Company's management and the Investor
has  received  all documents it has requested from the Company as of the date of
this  Agreement;

g.  INVESTMENT  PURPOSES.  The Investor is purchasing the Securities for its own
account  for  investment  purposes  and not with a view towards distribution and
agrees  to  resell  or  otherwise dispose of the Securities solely in accordance
with  the  registration  provisions of the 1933 Act (or pursuant to an exemption
from  such  registration  provisions).

h.  NO REGISTRATION AS A DEALER. The Investor is not and will not be required to
be  registered  as  a  "dealer"  under  the  1934 Act, either as a result of its
execution  and performance of its obligations under this Agreement or otherwise.

i.  THE  INVESTOR  IS A LIMITED PARTNERSHIP, duly organized, validly existing in
good  standing  in  the  State  of  Delaware.

j.  THE  INVESTOR  UNDERSTANDS  IT  IS  LIABLE  FOR  IT  OWN  TAX  LIABILITIES.

k.  THE  INVESTOR  WILL  COMPLY WITH REGULATION M UNDER THE 1934, IF APPLICABLE.

4.  REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY.
Except as set forth in the Schedules attached hereto, the Company represents and
warrants  to  the  Investor  that:

a.  Organization  and Qualification. The Company is a corporation duly organized
and  validly  existing  in good standing under the laws of its jurisdiction, and
has the requisite corporate power and authorization to own its properties and to
carry  on  its  business  as  now  being  conducted. Each of the Company and its
Subsidiaries is duly qualified as a foreign corporation to do business and is in
good  standing  in  every jurisdiction in which its ownership of property or the
nature  of  the  business  conducted  by  it makes such qualification necessary,
except  to the extent that the failure to be so qualified or be in good standing
would  not  have a Material Adverse Effect. As used in this Agreement, "MATERIAL
ADVERSE  EFFECT"  means any material adverse effect on the business, properties,
assets,  operations,  results of operations, financial condition or prospects of
the  Company  and  its  Subsidiaries,  if  any,  taken  as  a  whole,  or on the
transactions  contemplated  hereby  or  by  the agreements and instruments to be
entered  into  in  connection  herewith,  or  on the authority or ability of the
Company  to  perform its obligations under the Transaction Documents (as defined
in  Section  1  and  4(b)below).  The  Company  has  no  subsidiaries.

b.  Authorization;  Enforcement;  Compliance  with  Other  Instruments.  (i) The
Company  has  the  requisite  corporate  power  and  authority to enter into and
perform this Agreement, the Registration Rights Agreement, and each of the other
agreements  entered  into  by  the  parties  hereto  in  connection  with  the
transactions  contemplated  by  this  Agreement  (collectively, the "TRANSACTION
DOCUMENTS"), and to issue the Securities in accordance with the terms hereof and
thereof,  (ii)  the  execution  and delivery of the Transaction Documents by the
Company  and  the consummation by it of the transactions contemplated hereby and
thereby,  including  without  limitation  the  reservation  for issuance and the
issuance  of  the  Securities  pursuant  to  this  Agreement, have been duly and
validly authorized by the Company's Board of Directors and no further consent or
authorization  is  required  by  the  Company,  its  Board  of Directors, or its
shareholders,  (iii)  the  Transaction  Documents  have  been  duly  and validly
executed  and  delivered  by  the  Company,  and  (iv) the Transaction Documents
constitute  the valid and binding obligations of the Company enforceable against
the Company in accordance with their terms, except as such enforceability may be
limited  by  general  principles of equity or applicable bankruptcy, insolvency,
reorganization,  moratorium,  liquidation  or  similar  laws  relating  to,  or
affecting  generally,  the  enforcement  of  creditors'  rights  and  remedies.

c.  Capitalization.  As  of the date hereof, the authorized capital stock of the
Company  consists  of  (i)  100,000,000 shares of Common Stock, no par value per
share,  of  which  as  of  the  date  hereof,  12,684,202  shares are issued and
outstanding;  (as of March 1, 2004) shares of Common Stock are issuable upon the
exercise  of  options,  warrants  and conversion rights. All of such outstanding
shares  have  been,  or upon issuance will be, validly issued and are fully paid
and nonassessable. Except as disclosed in Schedule 4(c) which is attached hereto
and made a part hereof, (i) no shares of the Company's capital stock are subject
to  preemptive  rights  or any other similar rights or any liens or encumbrances
suffered  or  permitted  by  the  Company,  (ii)  there  are no outstanding debt
securities,  (iii)  there  are  no outstanding shares of capital stock, options,
warrants,  scrip,  rights to subscribe to, calls or commitments of any character
whatsoever  relating to, or securities or rights convertible into, any shares of
capital  stock  of  the  Company  or  any  of  its  Subsidiaries,  or contracts,
commitments,  understandings  or arrangements by which the Company or any of its
Subsidiaries  is or may become bound to issue additional shares of capital stock
of the Company or any of its Subsidiaries or options, warrants, scrip, rights to
subscribe  to,  calls or commitments of any character whatsoever relating to, or
securities  or  rights  convertible  into,  any  shares  of capital stock of the
Company or any of its Subsidiaries, (iv) there are no agreements or arrangements
under  which the Company or any of its Subsidiaries is obligated to register the
sale  of  any  of  their  securities under the 1933 Act (except the Registration
Rights Agreement), (v) there are no outstanding securities of the Company or any
of  its  Subsidiaries  which  contain  any redemption or similar provisions, and
there are no contracts, commitments, understandings or arrangements by which the
Company  or  any of its Subsidiaries is or may become bound to redeem a security
of  the  Company  or  any  of  its Subsidiaries, (vi) there are no securities or
instruments  containing  anti-dilution  or  similar  provisions  that  will  be
triggered  by  the  issuance  of  the Securities as described in this Agreement,
(vii) the Company does not have any stock appreciation rights or "phantom stock"
plans  or  agreements  or  any  similar plan or agreement and (viii) there is no
dispute  as  to  the  class  of  any  shares of the Company's capital stock. The
Company  has  furnished  to the Investor, or the Investor has had access through
EDGAR to, true and correct copies of the Company's Articles of Incorporation, as
in  effect  on  the  date  hereof  (the  "ARTICLES  OF  INCORPORATION"), and the
Company's  By-laws,  as  in  effect on the date hereof (the "BY-LAWS '), and the
terms of all securities convertible into or exercisable for Common Stock and the
material  rights  of  the  holders  thereof  in  respect  thereto.

d.  Issuance  of Shares. A sufficient number of Shares issuable pursuant to this
Agreement  has  been  duly  authorized  and  reserved  for  issuance (subject to
adjustment  pursuant  to the Company's covenant set forth in Section 5(f) below)
pursuant to this Agreement. Upon issuance in accordance with this Agreement, the
Securities  will  be  validly issued, fully paid and nonassessable and free from
all taxes, and liens with respect to the issue thereof. In the event the Company
cannot  register  a  sufficient number of Shares, due to the remaining number of
authorized  shares  of Common Stock being insufficient, the Company will use its
best  efforts  to  register  the  maximum  number  of shares it can based on the
remaining balance of authorized shares and will use its best efforts to increase
the  number  of  its  authorized  shares  as  soon  as  reasonably  practicable.

e.  No  Conflicts.  The  execution,  delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the transactions
contemplated  hereby  and  thereby  will  not  (i)  result in a violation of the
Articles  of  Incorporation,  any  Certificate  of Designations, Preferences and
Rights  of  any  outstanding  series  of  preferred  stock of the Company or the
By-laws  or  (ii)  conflict  with, or constitute a material default (or an event
which  with  notice  or  lapse  of time or both would become a material default)
under,  or  give to others any rights of termination, amendment, acceleration or
cancellation  of,  any  material  agreement,  contract,  indenture  mortgage,
indebtedness  or instrument to which the Company or any of its Subsidiaries is a
party, or result in a violation of any law, rule, regulation, order, judgment or
decree  (including  United  States  federal  and  state  securities  laws  and
regulations  and  the rules and regulations of the Principal Market or principal
securities  exchange  or  trading  market on which the Common Stock is traded or
listed)  applicable  to  the  Company or any of its Subsidiaries or by which any
property  or  asset  of  the  Company  or  any  of  its Subsidiaries is bound or
affected.  Except  as  disclosed  in  Schedule 4(e), neither the Company nor its
Subsidiaries  is  in violation of any term of, or in default under, the Articles
of Incorporation, any Certificate of Designations, Preferences and Rights of any
outstanding  series  of  preferred  stock of the Company or the By-laws or their
organizational  charter  or  by-laws,  respectively, or any contract, agreement,
mortgage,  indebtedness, indenture, instrument, judgment, decree or order or any
statute,  rule  or  regulation  applicable  to  the Company or its Subsidiaries,
except  for  possible  conflicts,  defaults,  terminations,  amendments,
accelerations,  cancellations  and  violations that would not individually or in
the aggregate have a Material Adverse Effect. The business of the Company is not
being  conducted,  and shall not be conducted, in violation of any law, statute,
ordinance,  rule,  order  or regulation of any governmental authority or agency,
regulatory  or  self-regulatory agency, or court, except for possible violations
the sanctions for which either individually or in the aggregate would not have a
Material  Adverse  Effect. Except as specifically contemplated by this Agreement
and  as  required  under the 1933 Act, the Company is not required to obtain any
consent,  authorization,  permit or order of, or make any filing or registration
(except  the  filing of a registration statement and filings to comply with Blue
Sky  requirements) with, any court, governmental authority or agency, regulatory
or  self-regulatory  agency  or  other  third  party in order for it to execute,
deliver  or  perform  any  of  its  obligations  under,  or contemplated by, the
Transaction  Documents  in  accordance  with  the  terms  hereof or thereof. All
consents,  authorizations,  permits, orders, filings and registrations which the
Company  is  required  to  obtain  pursuant  to the preceding sentence have been
obtained  or  effected  on or prior to the date hereof and are in full force and
effect  as of the date hereof. Except as disclosed in Schedule 4(e), the Company
and  its Subsidiaries are unaware of any facts or circumstances which might give
rise  to any of the foregoing. The Company is not, and will not be, in violation
of  the  listing  requirements  of the Principal Market as in effect on the date
hereof  and  on  each  of  the Closing Dates and is not aware of any facts which
would  reasonably  lead to delisting of the Common Stock by the Principal Market
in  the  foreseeable  future.

f. SEC Documents; Financial Statements. Since at least January 1999, the Company
has filed all reports, schedules, forms, statements and other documents required
to  be  filed  by  it with the SEC pursuant to the reporting requirements of the
1934  Act  (all of the foregoing filed prior to the date hereof and all exhibits
included  therein  and  financial statements and schedules thereto and documents
incorporated  by  reference  therein  being  hereinafter referred to as the "SEC
DOCUMENTS").  The  Company has delivered to the Investor or its representatives,
or  they  have  had access through EDGAR to, true and complete copies of the SEC
Documents.  As  of  their  respective  dates,  the SEC Documents complied in all
material  respects  with  the  requirements  of  the  1934 Act and the rules and
regulations  of  the SEC promulgated thereunder applicable to the SEC Documents,
and  none  of  the  SEC  Documents,  at  the  time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material
fact  required to be stated therein or necessary to make the statements therein,
in  light of the circumstances under which they were made, not misleading. As of
their  respective dates, the financial statements of the Company included in the
SEC  Documents  complied  as  to  form  in all material respects with applicable
accounting  requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with
generally  accepted  accounting  principles,  consistently  applied,  during the
periods  involved  (except  (i)  as may be otherwise indicated in such financial
statements  or  the  notes  thereto,  or  (ii)  in the case of unaudited interim
statements,  to  the  extent  they  may exclude footnotes or may be condensed or
summary  statements)  and  fairly present in all material respects the financial
position  of  the  Company  as  of  the  dates  thereof  and  the results of its
operations  and  cash  flows for the periods then ended (subject, in the case of
unaudited  statements,  to  normal year-end audit adjustments). No other written
information provided by or on behalf of the Company to the Investor which is not
included  in  the  SEC  Documents,  including,  without  limitation, information
referred  to in Section 4(d) of this Agreement, contains any untrue statement of
a  material  fact  or  omits  to  state  any material fact necessary to make the
statements  therein,  in  the  light of the circumstance under which they are or
were  made,  not  misleading. Neither the Company nor any of its Subsidiaries or
any of their officers, directors, employees or agents have provided the Investor
with  any material, nonpublic information which was not publicly disclosed prior
to  the  date  hereof  and  any  material, nonpublic information provided to the
Investor by the Company or its Subsidiaries or any of their officers, directors,
employees or agents prior to any Closing Date shall be publicly disclosed by the
Company  prior  to  such  Closing  Date.

g. Absence of Certain Changes. Except as disclosed in Schedule 4(g), the Company
does  not  intend  to change the business operations of the Company. The Company
has  not  taken  any  steps, and does not currently expect to take any steps, to
seek  protection  pursuant  to  any  bankruptcy  law nor does the Company or its
Subsidiaries  have  any knowledge or reason to believe that its creditors intend
to  initiate  involuntary  bankruptcy  proceedings.

h.  Absence  of  Litigation.  Except  as set forth in Schedule 4(h), there is no
action,  suit,  proceeding,  inquiry  or  investigation  before or by any court,
public  board,  government  agency, self-regulatory organization or body pending
or,  to  the  knowledge  of  the  executive  officers  of  Company or any of its
Subsidiaries,  threatened  against or affecting the Company, the Common Stock or
any  of  the  Company's  Subsidiaries  or  any of the Company's or the Company's
Subsidiaries'  officers  or  directors  in their capacities as such, in which an
adverse  decision  could  have  a  Material  Adverse  Effect.

i.  Acknowledgment  Regarding  Investor's  Purchase  of  Shares.  The  Company
acknowledges  and  agrees  that the Investor is acting solely in the capacity of
arm's  length  purchaser  with  respect  to  the  Transaction  Documents and the
transactions  contemplated  hereby and thereby. The Company further acknowledges
that  the  Investor  is  not  acting  as a financial advisor or fiduciary of the
Company  (or  in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated hereby and thereby and any advice given by the
Investor  or  any of its respective representatives or agents in connection with
the  Transaction  Documents and the transactions contemplated hereby and thereby
is  merely  incidental to the Investor's purchase of the Securities. The Company
further represents to the Investor that the Company's decision to enter into the
Transaction Documents has been based solely on the independent evaluation by the
Company  and  its  representatives.

j. No Undisclosed Events, Liabilities, Developments or Circumstances. Since June
30,  2003,  no  event,  liability,  development  or circumstance has occurred or
exists,  or to the Company's knowledge is contemplated to occur, with respect to
the  Company  or  its  Subsidiaries  or  their  respective business, properties,
assets,  prospects, operations or financial condition, that would be required to
be  disclosed  by the Company under applicable securities laws on a registration
statement  filed with the SEC relating to an issuance and sale by the Company of
its  Common  Stock  and  which  has  not  been  publicly  announced.
k.  Employee  Relations.  Neither  the  Company  nor  any of its Subsidiaries is
involved  in any union labor dispute nor, to the knowledge of the Company or any
of its Subsidiaries, is any such dispute threatened. Neither the Company nor any
of  its  Subsidiaries  is  a party to a collective bargaining agreement, and the
Company  and  its  Subsidiaries  believe that relations with their employees are
good.  No  executive  officer  (as  defined  in Rule 501(f) of the 1933 Act) has
notified  the Company that such officer intends to leave the Company's employ or
otherwise  terminate  such  officer's  employment  with  the  Company.

l. Intellectual Property Rights. The Company and its Subsidiaries own or possess
adequate  rights  or licenses to use all trademarks, trade names, service marks,
service  mark  registrations, service names, patents, patent rights, copyrights,
inventions,  licenses, approvals, governmental authorizations, trade secrets and
rights necessary to conduct their respective businesses as now conducted. Except
as  set  forth  on Schedule 4(l), none of the Company's trademarks, trade names,
service  marks,  service  mark  registrations,  service  names,  patents, patent
rights,  copyrights, inventions, licenses, approvals, government authorizations,
trade  secrets  or  other  intellectual property rights necessary to conduct its
business  as  now  or as proposed to be conducted have expired or terminated, or
are  expected  to  expire  or  terminate  within two years from the date of this
Agreement.  The  Company  and  its Subsidiaries do not have any knowledge of any
infringement by the Company or its Subsidiaries of trademark, trade name rights,
patents, patent rights, copyrights, inventions, licenses, service names, service
marks,  service  mark  registrations,  trade  secret  or other similar rights of
others,  or  of  any  such  development of similar or identical trade secrets or
technical information by others and, except as set forth on Schedule 4(l), there
is  no  claim,  action  or  proceeding  being made or brought against, or to the
Company's  knowledge,  being threatened against, the Company or its Subsidiaries
regarding  trademark,  trade name, patents, patent rights, invention, copyright,
license,  service names, service marks, service mark registrations, trade secret
or  other  infringement; and the Company and its Subsidiaries are unaware of any
facts  or  circumstances  which  might  give  rise  to any of the foregoing. The
Company  and its Subsidiaries have taken reasonable security measures to protect
the  secrecy, confidentiality and value of all of their intellectual properties.

m.  Environmental  Laws.  The  Company  (i)  is  in  compliance with any and all
applicable  foreign,  federal,  state and local laws and regulations relating to
the protection of human health and safety, the environment or hazardous or toxic
substances  or  wastes,  pollutants or contaminants ("ENVIRONMENTAL LAWS"), (ii)
have  received  all  permits, licenses or other approvals required of them under
applicable  Environmental  Laws to conduct their respective businesses and (iii)
are  in  compliance with all terms and conditions of any such permit, license or
approval  where,  in each of the three foregoing cases, the failure to so comply
would  have,  individually  or  in  the  aggregate,  a  Material Adverse Effect.

n.  Title.  The  Company  has good and marketable title to all personal property
owned  by  them  which  is  material  to  the  business  of  the Company and its
Subsidiaries, in each case free and clear of all liens, encumbrances and defects
except  such  as  are  described  in  Schedule 4(n) or such as do not materially
affect  the  value  of  such property and do not interfere with the use made and
proposed  to  be  made  of  such  property  by the Company Any real property and
facilities  held  under  lease  by  the  Company  are  held  by  it under valid,
subsisting  and  enforceable leases with such exceptions as are not material and
do  not interfere with the use made and proposed to be made of such property and
buildings  by  the  Company  and  its  Subsidiaries.

o.  Insurance.  The Company and each of its Subsidiaries are insured by insurers
of recognized financial responsibility against such losses and risks and in such
amounts  as  management  of  the  Company  reasonably believes to be prudent and
customary  in  the  businesses  in  which  the  Company and its Subsidiaries are
engaged.  Neither  the  Company  nor  any  such  Subsidiary has been refused any
insurance  coverage  sought  or applied for and neither the Company nor any such
Subsidiary  has  any  reason  to  believe  that it will not be able to renew its
existing  insurance  coverage  as  and  when  such coverage expires or to obtain
similar  coverage  from  similar  insurers  as  may be necessary to continue its
business  at  a  cost  that  would  not  have  a  Material  Adverse  Effect.

p.  Regulatory  Permits. The Company and its Subsidiaries have in full force and
effect  all  certificates,  approvals,  authorizations  and  permits  from  the
appropriate  federal,  state,  local  or  foreign  regulatory  authorities  and
comparable foreign regulatory agencies, necessary to own, lease or operate their
respective  properties  and  assets and conduct their respective businesses, and
neither  the  Company  nor  any  such  Subsidiary  has  received  any  notice of
proceedings  relating to the revocation or modification of any such certificate,
approval,  authorization  or  permit,  except  for such certificates, approvals,
authorizations  or  permits  which  if  not  obtained,  or  such  revocations or
modifications  which,  would  not  have  a  Material  Adverse  Effect.

q.  Internal  Accounting  Controls.  The  Company  and  each of its Subsidiaries
maintain  a  system  of  internal  accounting  controls  sufficient  to  provide
reasonable  assurance  that  (i)  transactions  are  executed in accordance with
management's  general or specific authorizations, (ii) transactions are recorded
as  necessary  to  permit preparation of financial statements in conformity with
generally  accepted  accounting principles and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management's general
or  specific  authorization  and  (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is  taken  with  respect  to  any  differences.

r.  No  Materially  Adverse  Contracts,  Etc. Neither the Company nor any of its
Subsidiaries is subject to any charter, corporate or other legal restriction, or
any  judgment,  decree,  order,  rule or regulation which in the judgment of the
Company's  officers  has or is expected in the future to have a Material Adverse
Effect.  Neither  the  Company  nor  any  of  its Subsidiaries is a party to any
contract  or agreement which in the judgment of the Company's officers has or is
expected  to  have  a  Material  Adverse  Effect.

s. Tax Status. The Company has made or filed all United States federal and state
income  and  all  other  tax  returns,  reports and declarations required by any
jurisdiction  to  which  it  is  subject (unless and only to the extent that the
Company  has  set  aside  on  its  books  provisions reasonably adequate for the
payment  of  all  unpaid  and unreported taxes) and has paid all taxes and other
governmental  assessments  and  charges  that  are  material in amount, shown or
determined  to  be  due  on such returns, reports and declarations, except those
being  contested  in  good  faith  and  has  set  aside  on  its books provision
reasonably  adequate  for the payment of all taxes for periods subsequent to the
periods  to  which  such  returns,  reports  or declarations apply. There are no
unpaid taxes in any material amount claimed to be due by the taxing authority of
any  jurisdiction, and the officers of the Company know of no basis for any such
claim.

t.  Certain  Transactions.  Except  as set forth on Schedule 4(t) and in the SEC
Documents  filed at least ten days prior to the date hereof and except for arm's
length transactions pursuant to which the Company makes payments in the ordinary
course  of  business  upon terms no less favorable than the Company could obtain
from third parties and except for transactions that do not exceed $10,000 in one
year, and other than the grant of stock options disclosed on Schedule 4(c), none
of  the officers, directors, or employees of the Company is presently a party to
any transaction with the Company (other than for services as employees, officers
and directors), including any contract, agreement or other arrangement providing
for  the  furnishing  of  services  to  or  by,  providing for rental of real or
personal  property  to  or  from, or otherwise requiring payments to or from any
officer,  director  or  such  employee  or, to the knowledge of the Company, any
corporation,  partnership, trust or other entity in which any officer, director,
or  any  such  employee  has  a substantial interest or is an officer, director,
trustee  or  partner.

u.  Dilutive Effect. The Company understands and acknowledges that the number of
shares  of  Common Stock issuable upon purchases pursuant to this Agreement will
increase in certain circumstances including, but not necessarily limited to, the
circumstance  wherein  the trading price of the Common Stock declines during the
period  between the Effective Date and the end of the Open Period. The Company's
executive officers and directors have studied and fully understand the nature of
the  transactions  contemplated by this Agreement and recognize that they have a
potential  dilutive effect. The board of directors of the Company has concluded,
in  its good faith business judgment that such issuance is in the best interests
of  the  Company.  The  Company  specifically acknowledges that, subject to such
limitations  as  are  expressly  set  forth  in  the  Transaction Documents, its
obligation  to  issue  shares  of  Common  Stock upon purchases pursuant to this
Agreement  is  absolute and unconditional regardless of the dilutive effect that
such  issuance  may have on the ownership interests of other shareholders of the
Company.

v.  No General Solicitation. Neither the Company, nor any of its affiliates, nor
any person acting on its behalf, has engaged in any form of general solicitation
or  general  advertising (within the meaning of Regulation D) in connection with
the  offer  or  sale  of  the  Common  Stock  offered  hereby.

w.  NO  FINDERS  OR  FINANCIAL  ADVISORY FEES will be paid by the Company to the
Investor  with  respect  to  the  transactions  contemplated  by this Agreement.

5.  COVENANTS  OF  THE  COMPANY

a.  Best  Efforts. The Company shall use its best efforts timely to satisfy each
of  the  conditions  to  be  satisfied  by  it  as provided in Section 7 of this
Agreement.

b.  Blue Sky. The Company shall, at its sole cost and expense, on or before each
of the Closing Dates, take such action as the Company shall reasonably determine
is  necessary  to  qualify  the  Securities  for,  or  obtain  exemption for the
Securities  for,  sale  to the Investor at each of the Closings pursuant to this
Agreement  under  applicable securities or "Blue Sky" laws of such states of the
United  States,  as reasonably specified by Investor, and shall provide evidence
of any such action so taken to the Investor on or prior to the Closing Date. The
Company  shall,  at  its  sole  cost  and  expense, make all filings and reports
relating  to  the offer and sale of the Securities required under the applicable
securities or "Blue Sky" laws of such states of the United States following each
of  the  Closing  Dates.

c.  Reporting  Status. Until the earlier to occur of (i) the first date which is
after  the  date this Agreement is terminated pursuant to Section 9 and on which
the  Holders  (as that term is defined in the Registration Rights Agreement) may
sell  all  of  the  Securities  without  restriction  pursuant  to  Rule  144(k)
promulgated  under  the  1933  Act  (or successor thereto), and (ii) the date on
which  (A) the Holders shall have sold all the Securities and (B) this Agreement
has  been  terminated  pursuant  to  Section  9 (the "REGISTRATION PERIOD"), the
Company shall file all reports required to be filed with the SEC pursuant to the
1934  Act, and the Company shall not terminate its status as a reporting company
under  the  1934  Act.

d.  Use  of  Proceeds.  The  Company  will use the proceeds from the sale of the
Shares  (excluding  amounts  paid  by  the  Company for fees as set forth in the
Transaction  Documents)  for  general  corporate and working capital purposes or
other  appropriate  uses  as  approved  by  the  Company's  Board  of Directors.

e.  Financial  Information. The Company agrees to make available to the Investor
via  EDGAR  or  other  electronic means the following to the Investor during the
Registration  Period:  (i) within five (5) Trading Days after the filing thereof
with the SEC, a copy of its Annual Reports on Form 10-KSB, its Quarterly Reports
on  Form 10-QSB, any Current Reports on Form 8-K and any Registration Statements
or  amendments  filed  pursuant  to  the  1933  Act; (ii) on the same day as the
release thereof, facsimile copies of all press releases issued by the Company or
any  of its Subsidiaries, (iii) copies of any notices and other information made
available  or  given  to  the  shareholders  of  the  Company  generally,
contemporaneously  with  the  making  available  or  giving  thereof  to  the
shareholders  and  (iv)  within  two  (2)  calendar  days  of filing or delivery
thereof, copies of all documents filed with, and all correspondence sent to, the
Principal Market, any securities exchange or market, or the National Association
of  Securities  Dealers,  Inc.,  unless  such  information is material nonpublic
information.

f.  Reservation  of Shares. Subject to the following sentence, the Company shall
take  all action necessary to at all times have authorized, and reserved for the
purpose  of  issuance,  a sufficient number of shares of Common Stock to provide
for  the  issuance  of  the  Securities hereunder. In the event that the Company
determines  that  it  does  not have a sufficient number of authorized shares of
Common  Stock  to  reserve  and keep available for issuance as described in this
Section  5(f),  the Company shall use its best efforts to increase the number of
authorized  shares  of  Common  Stock  by  seeking  shareholder approval for the
authorization  of  such  additional  shares.

g. Listing. The Company shall promptly secure and maintain the listing of all of
the  Registrable  Securities  (as  defined in the Registration Rights Agreement)
upon  the  Principal  Market  and  each  other  national securities exchange and
automated  quotation  system, if any, upon which shares of Common Stock are then
listed (subject to official notice of issuance) and shall maintain, such listing
of  all Registrable Securities from time to time issuable under the terms of the
Transaction  Documents.  The  Company  shall  maintain  the  Common  Stock's
authorization for quotation on the Principal Market. Neither the Company nor any
of  its Subsidiaries shall take any action which would be reasonably expected to
result  in  the  delisting  or  suspension  of the Common Stock on the Principal
Market  (excluding  suspensions  of not more than one trading day resulting from
business  announcements  by  the Company). The Company shall promptly provide to
the  Investor  copies  of  any  notices  it  receives  from the Principal Market
regarding  the  continued  eligibility  of  the Common Stock for listing on such
automated  quotation  system  or  securities exchange. The Company shall pay all
fees  and  expenses  in  connection  with  satisfying its obligations under this
Section  5(g).

h.  Reserved.

i.  Filing  of  Form  8-K. On or before the date which is three (3) Trading Days
after  the  Execution  Date, the Company shall file a Current Report on Form 8-K
with  the  SEC  describing  the  terms  of  the  transaction contemplated by the
Transaction  Documents  in  the form required by the 1934 Act, if such filing is
required.

j.  Corporate  Existence. The Company shall use its best efforts to preserve and
continue  the  corporate  existence  of  the  Company.

k.  Notice of Certain Events Affecting Registration; Suspension of Right to Make
a  Put. The Company shall promptly notify Investor upon the occurrence of any of
the  following  events  in  respect  of  a  Registration  Statement  or  related
prospectus  in  respect  of  an  offering  of the Securities: (i) receipt of any
request  for  additional  information  by  the SEC or any other federal or state
governmental  authority  during  the period of effectiveness of the Registration
Statement for amendments or supplements to the Registration Statement or related
prospectus;  (ii)  the  issuance  by  the  SEC  or  any  other  federal or state
governmental  authority  of  any  stop order suspending the effectiveness of any
Registration  Statement  or  the initiation of any proceedings for that purpose;
(iii)  receipt  of  any  notification  with  respect  to  the  suspension of the
qualification  or exemption from qualification of any of the Securities for sale
in  any jurisdiction or the initiation or threatening of any proceeding for such
purpose;  (iv)  the happening of any event that makes any statement made in such
Registration  Statement  or  related  prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or
that  requires  the making of any changes in the Registration Statement, related
prospectus  or  documents  so  that, in the case of a Registration Statement, it
will  not  contain  any untrue statement of a material fact or omit to state any
material  fact required to be stated therein or necessary to make the statements
therein  not misleading, and that in the case of the related prospectus, it will
not  contain  any  untrue  statement  of  a  material  fact or omit to state any
material  fact required to be stated therein or necessary to make the statements
therein,  in  the  light  of  the  circumstances under which they were made, not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment  to  the  Registration Statement would be appropriate, and the Company
shall  promptly  make  available to Investor any such supplement or amendment to
the related prospectus. The Company shall not deliver to Investor any Put Notice
during  the  continuation  of  any  of  the  foregoing  events.

6.  COVER.  If  the  number  of  Shares  represented  by  any Put Notices become
restricted  or  are  no  longer  freely  trading  for  any reason, and after the
applicable  Closing  Date, the Investor purchases, in an open market transaction
or  otherwise,  the  Company's  Common Stock (the "Covering Shares") in order to
make  delivery  in  satisfaction  of a sale of Common Stock by the Investor (the
"Sold  Shares"),  which  delivery  such  Investor  anticipated to make using the
Shares  represented by the Put Notice (a "Buy-In"), the Company shall pay to the
Investor the Buy-In Adjustment Amount (as defined below). The "Buy-In Adjustment
Amount"  is  the amount equal to the excess, if any, of (a) the Investor's total
purchase price (including brokerage commissions, if any) for the Covering Shares
over  (b) the net proceeds (after brokerage commissions, if any) received by the
Investor  from  the  sale  of  the Sold Shares. The Company shall pay the Buy-In
Adjustment  Amount  to  the  Investor in immediately available funds immediately
upon demand by the Investor. By way of illustration and not in limitation of the
foregoing,  if the Investor purchases Common Stock having a total purchase price
(including  brokerage  commissions) of $11,000 to cover a Buy-In with respect to
the  Common  Stock  it  sold  for net proceeds of $10,000, the Buy-In Adjustment
Amount which the Company will be required to pay to the Investor will be $1,000

7.  CONDITIONS  OF  THE  COMPANY'S  OBLIGATION  TO  SELL.
The  obligation hereunder of the Company to issue and sell the Securities to the
Investor is further subject to the satisfaction, at or before each Closing Date,
of  each  of  the following conditions set forth below. These conditions are for
the  Company's  sole benefit and may be waived by the Company at any time in its
sole  discretion.

a.  The Investor shall have executed each of this Agreement and the Registration
Rights  Agreement  and  delivered  the  same  to  the  Company.

b.  The Investor shall have delivered to the Investor the Purchase Price for the
Securities  being  purchased  by  the  Investor at the Closing (after receipt of
confirmation  of  delivery  of  such Securities) by wire transfer of immediately
available  funds  pursuant  to  the  wire instructions provided by the Investor.

c.  The representations and warranties of the Investor shall be true and correct
as of the date when made and as of the applicable Closing Date as though made at
that time (except for representations and warranties that speak as of a specific
date),  and  the  Investor shall have performed, satisfied and complied with the
covenants, agreements and conditions required by the Transaction Documents to be
performed,  satisfied  or  complied  with  by  the  Investor at or prior to such
Closing  Date.

d.  No  statute, rule, regulation, executive order, decree, ruling or injunction
shall  have  been  enacted,  entered,  promulgated  or  endorsed by any court or
governmental  authority  of  competent  jurisdiction  which  prohibits  the
consummation  of  any  of  the  transactions  contemplated  by  this  Agreement.

e.  Reserved.

8.  FURTHER  CONDITIONS  OF  THE  INVESTOR'S  OBLIGATION  TO  PURCHASE.
The  obligation  of  the Investor hereunder to purchase Shares is subject to the
satisfaction,  on  or  before  each  Closing  Date,  of  each  of  the following
conditions  set  forth  below.

a.  The  Company  shall  have  executed  each  of  the Transaction Documents and
delivered  the  same  to  the  Investor.

b.  The  Common  Stock shall be authorized for quotation on the Principal Market
and  trading  in the Common Stock shall not have been suspended by the Principal
Market  or  the  SEC,  at  any time beginning on the date hereof and through and
including  the  respective  Closing Date (excluding suspensions of not more than
one  Trading  Day resulting from business announcements by the Company, provided
that  such  suspensions  occur prior to the Company's delivery of the Put Notice
related  to  such  Closing).

c.  The  representations and warranties of the Company shall be true and correct
as of the date when made and as of the applicable Closing Date as though made at
that  time  (except  for  (i)  representations and warranties that speak as of a
specific  date  and  (ii)  with  respect to the representations made in Sections
4(g),  (h)  and  (j) and the third sentence of Section 4(k) hereof, events which
occur  on  or  after the date of this Agreement and are disclosed in SEC filings
made  by  the Company at least ten (10) Trading Days prior to the applicable Put
Notice  Date)  and the Company shall have performed, satisfied and complied with
the  covenants,  agreements and conditions required by the Transaction Documents
to  be  performed,  satisfied  or complied with by the Company on or before such
Closing  Date.  The  Investor  may  request  an  update  as of such Closing Date
regarding  the  representation  contained  in  Section  4(c)  above.

d.  reserved

e.  The  Company  shall  have  executed  and  delivered  to  the  Investor  the
certificates  representing,  or have executed electronic book-entry transfer of,
the  Securities  (in  such  denominations  as such Investor shall request) being
purchased  by  the  Investor  at  such  Closing.

f.  The  Board  of  Directors  of  the  Company  shall  have adopted resolutions
consistent  with Section 4(b)(ii) above (the "RESOLUTIONS") and such Resolutions
shall  not  have  been  amended  or  rescinded  prior  to  such  Closing  Date.

g.  reserved

h.  No  statute, rule, regulation, executive order, decree, ruling or injunction
shall  have  been  enacted,  entered,  promulgated  or  endorsed by any court or
governmental  authority  of  competent  jurisdiction  which  prohibits  the
consummation  of  any  of  the  transactions  contemplated  by  this  Agreement.

i.  The  Registration  Statement  shall be effective on each Closing Date and no
stop  order  suspending the effectiveness of the Registration statement shall be
in  effect  or shall be pending or threatened. Furthermore, on each Closing Date
(i) neither the Company nor Investor shall have received notice that the SEC has
issued  or  intends  to  issue  a  stop  order with respect to such Registration
Statement or that the SEC otherwise has suspended or withdrawn the effectiveness
of such Registration Statement, either temporarily or permanently, or intends or
has  threatened  to  do  so  (unless  the SEC's concerns have been addressed and
Investor  is  reasonably  satisfied  that  the  SEC  no longer is considering or
intends  to  take  such  action),  and  (ii)  no  other suspension of the use or
withdrawal  of  the  effectiveness  of  such  Registration  Statement or related
prospectus  shall  exist.

j.  At  the  time  of  each  Closing,  the  Registration  Statement  (including
information  or  documents incorporated by reference therein) and any amendments
or supplements thereto shall not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make  the  statements  therein  not  misleading  or  which  would require public
disclosure  or  an  update  supplement  to  the  prospectus.

k.  If  applicable,  the  shareholders  of  the  Company shall have approved the
issuance  of  any  Shares  in  excess  of  the  Maximum Common Stock Issuance in
accordance  with  Section  2(j).

l.  The  conditions  to  such  Closing set forth in Section 2(f) shall have been
satisfied  on  or  before  such  Closing  Date.

m.  The  Company  shall  have  certified to the Investor the number of shares of
Common Stock outstanding as of a date within ten (10) Trading Days prior to such
Closing  Date.

n.  Reserved.

o.  On or before the execution of this Agreement, the Company shall have a draft
of  the  Registration  Statement  covering  the  Securities.

9. TERMINATION. This Agreement shall terminate upon any of the following events:
(i)  when  the  Investor  has purchased an aggregate of $5,000,000 in the Common
Stock  of  the  Company  pursuant to this Agreement; provided that the Company's
representations, warranties and covenants contained in this Agreement insofar as
applicable  to the transactions consummated hereunder prior to such termination,
shall survive the termination of this Agreement for the period of any applicable
statute  of  limitations,
(ii)  on  the  date  which  is  36 (thirty-six) months after the Effective Date;
(iii)  the  trading  of  the Common Stock is suspended by the SEC, the Principal
Market  or the NASD for a period of five (5) consecutive Trading Days during the
Open  Period;
(iv)  the  Company  shall  not  have filed with the SEC the initial Registration
Statement with respect to the resale of the Registrable Securities in accordance
with  the  terms of the initial Registration Rights Agreement within One Hundred
and  twenty (120) calendar days of the date hereof or the Registration Statement
has not been declared effective within one hundred eighty (180) calendar days of
the  date  hereof;  or
(v)  The  Common  Stock  ceases to be registered under the 1934 Act or listed or
traded  on  the  Principal  Market;  or  Upon  the  occurrence  of  one  of  the
above-described  events,  the Company shall send written notice of such event to
the  Investor.

10.  INDEMNIFICATION.  In consideration of the Investor's execution and delivery
of  the  this  Agreement and the Registration Rights Agreement and acquiring the
Shares hereunder and in addition to all of the Company's other obligations under
the Transaction Documents, the Company shall defend, protect, indemnify and hold
harmless  the  Investor  and  all  of  their  shareholders, officers, directors,
employees,  counsel,  and  direct or indirect investors and any of the foregoing
person's  agents  or other representatives (including, without limitation, those
retained  in  connection  with  the transactions contemplated by this Agreement)
(collectively,  the  "INDEMNITEES") from and against any and all actions, causes
of  action,  suits,  claims,  losses,  costs,  penalties,  fees, liabilities and
damages,  and expenses in connection therewith (irrespective of whether any such
Indemnitee  is  a  party  to  the  action for which indemnification hereunder is
sought),  and  including  reasonable  attorneys'  fees  and  disbursements  (the
"INDEMNIFIED  LIABILITIES'),  incurred  by  any  Indemnitee  as  a result of, or
arising  out  of,  or  relating  to  (i)  any misrepresentation or breach of any
representation  or  warranty made by the Company in the Transaction Documents or
any  other  certificate,  instrument  or document contemplated hereby or thereby
(ii)  any  breach  of  any  covenant,  agreement  or  obligation  of the Company
contained  in  the Transaction Documents or any other certificate, instrument or
document  contemplated  hereby  or  thereby,  (iii) any cause of action, suit or
claim  brought  or made against such Indemnitee by a third party and arising out
of  or resulting from the execution, delivery, performance or enforcement of the
Transaction  Documents  or  any  other  certificate,  instrument  or  document
contemplated  hereby or thereby, (iv) any transaction financed or to be financed
in  whole  or in part, directly or indirectly, with the proceeds of the issuance
of  the Securities or (v) the status of the Investor or holder of the Securities
as  an  investor  in  the Company, except insofar as any such misrepresentation,
breach  or  any  untrue statement, alleged untrue statement, omission or alleged
omission  is  made  in  reliance upon and in conformity with written information
furnished  to  the Company by the Investor which is specifically intended by the
Investor  for  use  in  the  preparation  of  any  such  Registration Statement,
preliminary  prospectus  or  prospectus  or  based on illegal or alleged illegal
trading  of  the  Shares  by  the  Investor.  To  the  extent that the foregoing
undertaking  by  the  Company  may  be unenforceable for any reason, the Company
shall  make  the maximum contribution to the payment and satisfaction of each of
the  Indemnified  Liabilities  which  is  permissible  under applicable law. The
indemnity  provisions  contained  herein  shall  be  in addition to any cause of
action or similar rights the Investor may have, and any liabilities the Investor
may  be  subject  to.

11.  GOVERNING  LAW;  MISCELLANEOUS.

a.  Governing  Law.  This  Agreement  shall  be  governed  by and interpreted in
accordance  with the laws of the Commonwealth of Massachusetts without regard to
the principles of conflict of laws. Each party hereby irrevocably submits to the
exclusive  jurisdiction  of  the state and federal courts sitting in the City of
Boston,  County  of Suffolk, for the adjudication of any dispute hereunder or in
connection  herewith  or  with  any transaction contemplated hereby or discussed
herein,  and  hereby  irrevocably  waives, and agrees not to assert in any suit,
action  or  proceeding,  any  claim  that  it  is  not personally subject to the
jurisdiction  of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each  party hereby irrevocably waives personal service of process and
consents  to  process  being  served  in  any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service  of process and notice thereof. Nothing contained herein shall be deemed
to  limit  in any way any right to serve process in any manner permitted by law.
If  any  provision  of  this  Agreement shall be invalid or unenforceable in any
jurisdiction,  such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity  or  enforceability  of  any  provision  of this Agreement in any other
jurisdiction.

b.   Legal  Fees;
(i) Except as otherwise set forth in the Transaction Documents, each party shall
pay  the  fees  and expenses of its advisers, counsel, the accountants and other
experts,  if  any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement.
Any  attorneys'  fees  and  expenses  incurred  by  either the Company or by the
Investor in connection with the preparation, negotiation, execution and delivery
of any amendments to this Agreement or relating to the enforcement of the rights
of  any party, after the occurrence of any breach of the terms of this Agreement
by  another party or any default by another party in respect of the transactions
contemplated  hereunder, shall be paid on demand by the party which breached the
Agreement  and/or defaulted, as the case may be. The Company shall pay all stamp
and  other  taxes  and  duties  levied  in  connection  with the issuance of any
Securities.

c.  Counterparts.  This  Agreement  may  be  executed  in  two or more identical
counterparts,  all  of  which shall be considered one and the same agreement and
shall  become  effective  when  counterparts  have been signed by each party and
delivered  to  the  other  party;  provided  that a facsimile signature shall be
considered  due  execution  and shall be binding upon the signatory thereto with
the  same force and effect as if the signature were an original, not a facsimile
signature.

d. Headings; Singular/Plural. The headings of this Agreement are for convenience
of  reference  and shall not form part of, or affect the interpretation of, this
Agreement.  Whenever  required  by  the  context of this Agreement, the singular
shall  include  the  plural  and  masculine  shall  include  the  feminine.

e.  Severability.  If  any  provision  of  this  Agreement  shall  be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction  or  the  validity  or  enforceability  of  any  provision  of this
Agreement  in  any  other  jurisdiction.

f.  Entire Agreement; Amendments. This Agreement supersedes all other prior oral
or  written  agreements  between the Investor, the Company, their affiliates and
persons acting on their behalf with respect to the matters discussed herein, and
this  Agreement  and  the  instruments  referenced  herein  (including the other
Transaction  Documents)  contain  the  entire  understanding of the parties with
respect  to  the  matters covered herein and therein and, except as specifically
set  forth  herein  or  therein,  neither the Company nor the Investor makes any
representation,  warranty, covenant or undertaking with respect to such matters.
No  provision  of  this  Agreement may be amended other than by an instrument in
writing  signed  by the Company and the Investor, and no provision hereof may be
waived  other  than by an instrument in writing signed by the party against whom
enforcement  is  sought.

g.  Notices.  Any  notices  or  other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed to
have  been  delivered  (i)  upon  receipt,  when delivered personally; (ii) upon
receipt,  when  sent  by  facsimile  (provided  confirmation  of transmission is
mechanically or electronically generated and kept on file by the sending party);
or  (iii)  one  (1)  day  after  deposit  with a nationally recognized overnight
delivery  service,  in  each case properly addressed to the party to receive the
same.  The  addresses  and  facsimile  numbers for such communications shall be:
IF  TO  THE  COMPANY:

Kevin  Ryan
Chief  Executive  Officer  and  Chairman
11782  Western  Avenue,  Unit  18
Stanton,  California  90680
Telephone:  (714)  895-0944

With  a  copy  to:
Amy  Trombly,  Esq.
1163  Walnut  Street,  Suite  7
Newton,  MA  02461

IF  TO  THE  INVESTOR:
John  Wykoff
34  Myrtle  St
Boston,  MA  02108

Each  party shall provide five (5) days' prior written notice to the other party
of  any  change  in  address  or  facsimile  number.

h.  No  Assignment.  This  Agreement  may  not  be  assigned.

i.  No  Third Party Beneficiaries. This Agreement is intended for the benefit of
the  parties  hereto and is not for the benefit of, nor may any provision hereof
be  enforced  by,  any  other  person.

j.  Survival. The representations and warranties of the Company and the Investor
contained  in  Sections  2  and  3,  the  agreements  and covenants set forth in
Sections  4  and  5, and the indemnification provisions set forth in Section 10,
shall  survive  each  of  the  Closings  and  the termination of this Agreement.

k.  Publicity. The Company and Investor shall consult with each other in issuing
any  press  releases  or  otherwise making public statements with respect to the
transactions contemplated hereby and no party shall issue any such press release
or  otherwise  make  any  such public statement without the prior consent of the
other  parties,  which  consent  shall  not be unreasonably withheld or delayed,
except that no prior consent shall be required if such disclosure is required by
law,  in  which  such  case the disclosing party shall provide the other parties
with  prior  notice of such public statement. Notwithstanding the foregoing, the
Company  shall  not  publicly  disclose  the  name of Investor without the prior
written consent of such Investor, except to the extent required by law. Investor
acknowledges  that  this  Agreement and all or part of the Transaction Documents
may  be  deemed  to  be  "material  contracts"  as  that term is defined by Item
601(b)(10)  of Regulation S-K, and that the Company may therefore be required to
file  such  documents  as  exhibits  to reports or registration statements filed
under  the Securities 1933 Act or the 1934 Act. Investor further agrees that the
status of such documents and materials as material contracts shall be determined
solely  by  the  Company,  in  consultation  with  its  counsel.

l.  Further Assurances. Each party shall do and perform, or cause to be done and
performed,  all  such further acts and things, and shall execute and deliver all
such  other  agreements,  certificates,  instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

m.  Placement  Agent.  The Company agrees to pay U.S. Euro Securities, ("USE") a
registered  broker  dealer, 1% of the Put Amount on each draw as a fee, until an
aggregate  amount of $7,500. USE will also act as an unaffiliated broker dealer.
The  Investor  shall have no obligation with respect to any fees or with respect
to  any  claims  made by or on behalf of other persons or entities for fees of a
type  contemplated  in  this  Section  that  may  be  due in connection with the
transactions  contemplated  by  the  Transaction  Documents.  The  Company shall
indemnify  and hold harmless the Investor, their employees, officers, directors,
agents,  and  partners,  and  their  respective affiliates, from and against all
claims,  losses,  damages,  costs  (including  the  costs  of  preparation  and
attorney's  fees)  and  expenses  incurred  in  respect  of  any such claimed or
existing  fees,  as  such  fees  and  expenses  are  incurred.

n. No Strict Construction. The language used in this Agreement will be deemed to
be  the  language  chosen  by the parties to express their mutual intent, and no
rules  of  strict  construction  will  be  applied  against  any  party.

o.  Remedies.  The  Investor and each holder of the Shares shall have all rights
and  remedies  set forth in this Agreement and the Registration Rights Agreement
and  all  rights  and  remedies which such holders have been granted at any time
under  any  other agreement or contract and all of the rights which such holders
have  under  any  law.  Any person having any rights under any provision of this
Agreement shall be entitled to enforce such rights specifically (without posting
a bond or other security), to recover damages by reason of any default or breach
of  any  provision  of  this  Agreement,  including  the  recovery of reasonable
attorneys  fees  and  costs,  and  to  exercise all other rights granted by law.

p. Payment Set Aside. To the extent that the Company makes a payment or payments
to  the  Investor hereunder or the Registration Rights Agreement or the Investor
enforces  or  exercises  its rights hereunder or thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any part thereof are
subsequently  invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by or are required to be refunded, repaid or otherwise
restored  to  the Company, a trustee, receiver or any other person under any law
(including, without limitation, any bankruptcy law, state or federal law, common
law  or  equitable  cause of action), then to the extent of any such restoration
the  obligation  or  part  thereof  originally intended to be satisfied shall be
revived  and  continued in full force and effect as if such payment had not been
made  or  such  enforcement  or  setoff  had  not  occurred.

q. Pricing of Common Stock. For purposes of this Agreement, the bid price of the
Common  Stock  in  this  Agreement  shall  be  as  reported  on  Bloomberg.

XTREME  COMPANIES,  INCORPORATED
INVESTMENT  AGREEMENT  SIGNATURE  PAGE

Your  signature  on  this Signature Page evidences your agreement to be bound by
the terms and conditions of the Investment Agreement and the Registration Rights
Agreement.
1.  The  undersigned  signatory  hereby  certifies  that  he/she  has  read  and
understands  the  Investment  Agreement,  and  the  representations  made by the
undersigned  in  this  Investment  Agreement  are  true  and  accurate.

PRESTON  CAPITAL  PARTNERS,  LLC

                                   By:  /s/  John  P  Wykoff
                                          --------------------
                                   Name:  John  P  Wykoff
                                  Title:   A  Managing  Member

XTREME  COMPANIES,  INCORPORATED

                                       By:  /s/  Kevin Ryan
                                          --------------------
                                        Kevin Ryan, CEO

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