Document:

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

                        CALLABLE SECURED CONVERTIBLE NOTE

New York,, New York
_______, 2005                                                           $_______

                  FOR  VALUE  RECEIVED,  Astrata  Group  Incorporated,  a Nevada
corporation  (hereinafter called the "Borrower"),  hereby promises to pay to the
order of ___________ or registered assigns (the "Holder") the sum of $________ ,
on ___________, 200_ (the "Maturity Date"). Any amount of principal on this Note
which is not paid when due shall bear  interest  at the rate of fifteen  percent
(15%)  per annum  from the due date  thereof  until  the same is paid  ("Default
Interest").  All payments due hereunder (to the extent not converted into common
stock,  $0.0001 par value per share (the "Common  Stock") in accordance with the
terms hereof) shall be made in lawful money of the United States of America. All
payments shall be made at such address as the Holder shall hereafter give to the
Borrower by written notice made in accordance  with the provisions of this Note.
Whenever any amount  expressed to be due by the terms of this Note is due on any
day which is not a  business  day,  the same  shall  instead  be due on the next
succeeding day which is a business day. As used in this Note, the term "business
day"  shall  mean  any day  other  than a  Saturday,  Sunday  or a day on  which
commercial banks in the city of New York, New York are authorized or required by
law or executive order to remain closed.  Each capitalized term used herein, and
not otherwise  defined,  shall have the meaning ascribed thereto in that certain
Securities  Purchase  Agreement,  dated October 7, 2005,  pursuant to which this
Note was originally issued (the "Purchase Agreement").

      This Note is free from all  taxes,  liens,  claims and  encumbrances  with
respect to the issue  thereof and shall not be subject to  preemptive  rights or
other  similar  rights  of  stockholders  of the  Borrower  and will not  impose
personal  liability  upon the holder  thereof.  The  obligations of the Borrower
under  this  Note  shall be  secured  by that  certain  Security  Agreement  and
Intellectual  Property  Security  Agreement,  each dated  October 7, 2005 by and
between the Borrower and the Holder.

<PAGE>

         The following terms shall apply to this Note:

                          ARTICLE I. CONVERSION RIGHTS

      1.1 Conversion  Right.  The Holder shall have the right from time to time,
and at any time on or prior to the earlier of (i) the Maturity Date and (ii) the
date of payment of the Default  Amount (as defined in Article  III)  pursuant to
Section  1.6(a) or Article III, the  Optional  Prepayment  Amount (as defined in
Section 5.1 in respect of the  remaining  outstanding  principal  amount of this
Note to convert all or any part of the outstanding and unpaid  principal  amount
of this Note into fully paid and non-assessable  shares of Common Stock, as such
Common Stock exists on the Issue Date,  or any shares of capital  stock or other
securities  of the  Borrower  into which such Common  Stock shall  hereafter  be
changed  or  reclassified  at the  conversion  price  (the  "Conversion  Price")
determined as provided herein (a "Conversion");  provided,  however,  that in no
event shall the Holder be entitled to convert any portion of this Note in excess
of that portion of this Note upon  conversion of which the sum of (1) the number
of shares of Common Stock  beneficially  owned by the Holder and its  affiliates
(other  than  shares of Common  Stock  which  may be deemed  beneficially  owned
through the ownership of the unconverted portion of the Notes or the unexercised
or unconverted portion of any other security of the Borrower (including, without
limitation,  the  warrants  issued  by the  Borrower  pursuant  to the  Purchase
Agreement)  subject to a limitation on  conversion or exercise  analogous to the
limitations  contained  herein)  and (2) the  number of  shares of Common  Stock
issuable  upon the  conversion of the portion of this Note with respect to which
the  determination  of this proviso is being made,  would  result in  beneficial
ownership by the Holder and its affiliates of more than 4.99% of the outstanding
shares of  Common  Stock  and  provided  further  that the  Holder  shall not be
entitled  to  convert  any  portion of this Note  during  any month  immediately
succeeding a Determination  Date on which the Borrower  exercises its prepayment
option  pursuant to Section 5.1 of this Note. For purposes of the proviso to the
immediately  preceding  sentence,  beneficial  ownership  shall be determined in
accordance  with  Section  13(d) of the  Securities  Exchange  Act of  1934,  as
amended,  and  Regulations  13D-G  thereunder,  except as otherwise  provided in
clause (1) of such  proviso.  The number of shares of Common  Stock to be issued
upon each conversion of this Note shall be determined by dividing the Conversion
Amount (as defined below) by the applicable  Conversion  Price then in effect on
the date specified in the notice of conversion,  in the form attached  hereto as
Exhibit A (the "Notice of Conversion"),  delivered to the Borrower by the Holder
in accordance with Section 1.4 below;  provided that the Notice of Conversion is
submitted by facsimile (or by other means  resulting in, or reasonably  expected
to result in, notice) to the Borrower  before 6:00 p.m., New York, New York time
on such conversion date (the "Conversion  Date").  The term "Conversion  Amount"
means, with respect to any conversion of this Note, the sum of (1) the principal
amount  of this  Note  to be  converted  in such  conversion  plus  (2)  Default
Interest, if any, on the amounts referred to in the immediately preceding clause
(1) plus (3) at the Holder's option,  any amounts owed to the Holder pursuant to
Sections  1.3 and 1.4(g)  hereof or  pursuant  to Section  2(c) of that  certain
Registration  Rights  Agreement,  dated  as of  October  7,  2005,  executed  in
connection with the initial  issuance of this Note and the other Notes issued on
the Issue Date (the "Registration  Rights  Agreement").  The term "Determination
Date" means the last business day of each month after the Issue Date.

      1.2 Conversion Price.

                                       2
<PAGE>

            (a) Calculation of Conversion  Price.  The Conversion Price shall be
the lesser of (i) the Variable Conversion Price (as defined herein) and (ii) the
Fixed Conversion Price (as defined herein) (subject,  in each case, to equitable
adjustments  for  stock  splits,  stock  dividends  or rights  offerings  by the
Borrower  relating  to  the  Borrower's  securities  or  the  securities  of any
subsidiary of the Borrower, combinations,  recapitalization,  reclassifications,
extraordinary distributions and similar events). The "Variable Conversion Price"
shall mean the  Applicable  Percentage  (as defined  herein)  multiplied  by the
Market Price (as defined herein). "Market Price" means the average of the lowest
five (5)  Trading  Prices (as  defined  below) for the Common  Stock  during the
twenty  (20)  Trading  Day period  ending one  Trading Day prior to the date the
Conversion  Notice is sent by the  Holder to the  Borrower  via  facsimile  (the
"Conversion Date").  "Trading Price" means, for any security as of any date, the
intraday trading price on the  Over-the-Counter  Bulletin Board (the "OTCBB") as
reported  by  a  reliable  reporting  service  ("Reporting   Service")  mutually
acceptable  to  Borrower  and Holder and  hereafter  designated  by Holders of a
majority in interest of the Notes and the  Borrower  or, if the OTCBB is not the
principal  trading market for such security,  the intraday trading price of such
security  on the  principal  securities  exchange or trading  market  where such
security is listed or traded or, if no intraday  trading  price of such security
is  available  in any of the  foregoing  manners,  the  average of the  intraday
trading  prices of any market  makers for such  security  that are listed in the
"pink  sheets" by the Pink Sheets LLC. If the Trading Price cannot be calculated
for such security on such date in the manner provided  above,  the Trading Price
shall be the fair market  value as mutually  determined  by the Borrower and the
holders of a majority in interest  of the Notes  being  converted  for which the
calculation  of the  Trading  Price  is  required  in  order  to  determine  the
Conversion  Price of such Notes.  "Trading  Day" shall mean any day on which the
Common  Stock  is  traded  for any  period  on the  OTCBB,  or on the  principal
securities exchange or other securities market on which the Common Stock is then
being traded.  "Applicable  Percentage"  shall mean 60.0%. The "Fixed Conversion
Price"  shall  mean  $2.50.  Notwithstanding  anything  contained  herein to the
contrary,  the  Conversion  Price  shall be not less  than  the  product  of the
Applicable  Percentage multiplied by the Initial Market Price, which product may
be subject to the provisions of Section 1.6 hereof.

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

                                       3
<PAGE>

Borrower  (in the case of clause (i) above) or the  person,  group or entity (in
the case of clause (ii) above) consummates or publicly announces the termination
or abandonment of the proposed  transaction or tender offer (or takeover scheme)
which caused this Section 1.2(b) to become operative.

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

      If, at any time a Holder of this Note submits a Notice of Conversion,  and
the Borrower does not have  sufficient  authorized but unissued shares of Common
Stock  available to effect such  conversion in accordance with the provisions of
this Article I (a  "Conversion  Default"),  subject to Section 4.8, the Borrower
shall  issue to the  Holder  all of the  shares of Common  Stock  which are then
available to effect such  conversion.  The portion of this Note which the Holder
included in its  Conversion  Notice and which  exceeds the amount  which is then
convertible  into available  shares of Common Stock (the "Excess Amount") shall,
notwithstanding  anything to the contrary  contained herein,  not be convertible
into Common Stock in accordance with the terms hereof until (and at the Holder's
option  at any time  after)  the date  additional  shares  of  Common  Stock are
authorized  by the  Borrower  to  permit  such  conversion,  at  which  time the
Conversion  Price in respect  thereof shall be the lesser of (i) the  Conversion
Price on the Conversion  Default Date (as defined below) and (ii) the Conversion
Price on the  Conversion  Date  thereafter  elected  by the  Holder  in  respect
thereof. In addition, the Borrower shall pay to the Holder payments ("Conversion
Default  Payments") for a Conversion Default in the amount of (x) the sum of (1)
the then outstanding principal amount of this Note plus (2) Default Interest, if
any, on the amounts referred to in clause (1), multiplied by (y) .24, multiplied
by (z) (N/365),  where N = the number of days from the day the holder  submits a
Notice of  Conversion  giving  rise to a  Conversion  Default  (the  "Conversion
Default  Date")  to the  date  (the  "Authorization  Date")  that  the  Borrower
authorizes a sufficient number of shares of Common Stock to effect conversion of
the full outstanding principal balance of this Note.

                                       4
<PAGE>

The Borrower  shall use its best  efforts to  authorize a  sufficient  number of
shares of Common Stock as soon as practicable  following the earlier of (i) such
time that the  Holder  notifies  the  Borrower  or that the  Borrower  otherwise
becomes  aware  that there are or likely  will be  insufficient  authorized  and
unissued shares to allow full conversion thereof and (ii) a Conversion  Default.
The Borrower shall send notice to the Holder of the  authorization of additional
shares  of Common  Stock,  the  Authorization  Date and the  amount of  Holder's
accrued Conversion Default Payments. The accrued Conversion Default Payments for
each calendar  month shall be paid in cash or shall be  convertible  into Common
Stock (at such time as there are sufficient  authorized  shares of Common Stock)
at the applicable Conversion Price, at the Borrower's option, as follows:

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

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

      The Holder's election shall be made in writing to the Borrower at any time
prior to 6:00  p.m.,  New  York,  New York  time,  on the third day of the month
following the month in which  Conversion  Default  payments have accrued.  If no
election is made,  the Holder shall be deemed to have  elected to receive  cash.
Nothing  herein shall limit the Holder's  right to pursue actual damages (to the
extent in excess of the Conversion  Default Payments) for the Borrower's failure
to maintain a sufficient  number of authorized  shares of Common Stock, and each
holder shall have the right to pursue all remedies available at law or in equity
(including degree of specific performance and/or injunctive relief).

      1.4 Method of Conversion.

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

            (b) Surrender of Note Upon Conversion.  Notwithstanding  anything to
the contrary set forth herein,  upon  conversion of this Note in accordance with
the terms hereof, the Holder shall not be required to physically  surrender this
Note to the Borrower unless the entire unpaid  principal  amount of this Note is
so converted.  The Holder and the Borrower  shall maintain  records  showing the
principal  amount so converted  and the dates of such  conversions  or shall use
such other method, reasonably satisfactory to the Holder and the Borrower, so as
not to require physical surrender of this Note upon each such conversion. In the
event of any  dispute or  discrepancy,  such  records of the  Borrower  shall be
controlling and

                                       5
<PAGE>

determinative in the absence of manifest error.  Notwithstanding  the foregoing,
if any  portion  of this Note is  converted  as  aforesaid,  the  Holder may not
transfer this Note unless the Holder first  physically  surrenders  this Note to
the Borrower,  whereupon the Borrower will forthwith  issue and deliver upon the
order of the Holder a new Note of like  tenor,  registered  as the Holder  (upon
payment  by  the  Holder  of  any  applicable   transfer   taxes)  may  request,
representing  in the  aggregate the remaining  unpaid  principal  amount of this
Note. The Holder and any assignee,  by acceptance of this Note,  acknowledge and
agree that, by reason of the provisions of this paragraph,  following conversion
of a portion of this Note, the unpaid and unconverted  principal  amount of this
Note  represented  by this Note may be less than the  amount  stated on the face
hereof.

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

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

            (e) Obligation of Borrower to Deliver Common Stock.  Upon receipt by
the  Borrower of a Notice of  Conversion,  the Holder  shall be deemed to be the
holder  of  record of the  Common  Stock  issuable  upon  such  conversion,  the
outstanding  principal  amount and the amount of accrued and unpaid  interest on
this Note shall be reduced to reflect such conversion,  and, unless the Borrower
defaults on its obligations under this Article I, all rights with respect to the
portion of this Note being so converted  shall  forthwith  terminate  except the
right to receive the Common Stock or other securities,  cash or other assets, as
herein provided, on such conversion.  If the Holder shall have given a Notice of
Conversion as provided  herein,  the Borrower's  obligation to issue and deliver
the  certificates  for  Common  Stock  shall  be  absolute  and   unconditional,
irrespective of the absence of any action by the Holder to enforce the same, any
waiver or consent with  respect to any  provision  thereof,  the recovery of any
judgment  against any person or any action to enforce  the same,  any failure or
delay in the  enforcement of any other  obligation of the Borrower to the holder
of record, or any setoff, counterclaim,  recoupment,  limitation or termination,
or any breach or alleged breach by the Holder of any

                                       6
<PAGE>

obligation to the Borrower,  and  irrespective of any other  circumstance  which
might  otherwise  limit  such  obligation  of  the  Borrower  to the  Holder  in
connection with such conversion.  The Conversion Date specified in the Notice of
Conversion  shall be the Conversion  Date so long as the Notice of Conversion is
received by the  Borrower  before 6:00 p.m.,  New York,  New York time,  on such
date.

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

            (g) Failure to Deliver  Common Stock Prior to  Deadline.  Without in
any way limiting the Holder's right to pursue other remedies,  including  actual
damages  and/or  equitable  relief,  the  parties  agree that if delivery of the
Common Stock issuable upon conversion of this Note is more than two (2) business
days after the Deadline (other than a failure due to the circumstances described
in Section 1.3 above,  which  failure  shall be governed  by such  Section)  the
Borrower  shall pay to the Holder $500 per day in cash,  for each day beyond the
Deadline that the Borrower fails to deliver such Common Stock.  Such cash amount
shall be paid to Holder by the  fifth  day of the month  following  the month in
which it has accrued  or, at the option of the Holder (by written  notice to the
Borrower  by the  first  day of the  month  following  the month in which it has
accrued),  shall be added to the  principal  amount of this Note, in which event
interest shall accrue thereon in accordance with the terms of this Note and such
additional principal amount shall be convertible into Common Stock in accordance
with the terms of this Note.

      1.5  Concerning  the  Shares.  The shares of Common  Stock  issuable  upon
conversion  of this Note may not be sold or  transferred  unless (i) such shares
are sold pursuant to an effective  registration  statement under the Act or (ii)
the Borrower or its transfer  agent shall have been furnished with an opinion of
counsel  (which  opinion  shall be in form,  substance  and scope  customary for
opinions of counsel in comparable transactions) to the effect that the shares to
be sold or transferred may be sold or transferred  pursuant to an exemption from
such registration or (iii) such shares are sold or transferred  pursuant to Rule
144 under the Act (or a  successor  rule)  ("Rule  144") or (iv) such shares are
transferred  to an  "affiliate"  (as  defined in Rule 144) of the  Borrower  who
agrees to sell or  otherwise  transfer the shares only in  accordance  with this
Section  1.5 and who is an  Accredited  Investor  (as  defined  in the  Purchase
Agreement).  Except as otherwise provided in the Purchase Agreement (and subject
to the removal  provisions  set forth  below),  until such time as the shares of
Common Stock issuable upon  conversion of this Note have been  registered  under
the Act as contemplated by the Registration Rights Agreement or otherwise may be
sold pursuant to Rule 144 without any restriction as to the number of securities
as of a particular date that can then be immediately  sold, each certificate for
shares of Common Stock  issuable upon  conversion of this Note that has not been
so included in an  effective  registration  statement  or that has not been sold
pursuant to an effective  registration  statement  or an exemption  that permits
removal of the legend,  shall bear a legend substantially in the following form,
as appropriate:

                                       7
<PAGE>

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

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

      1.6 Effect of Certain Events.

            (a) Effect of Merger,  Consolidation,  Etc.  Except as  permitted by
Sections  4(e)  and  4(j)  of  the  Securities  Purchase  Agreement,  the  sale,
conveyance  or  disposition  of all or  substantially  all of the  assets of the
Borrower, the effectuation by the Borrower of a transaction or series of related
transactions  in which  more than 50% of the  voting  power of the  Borrower  is
disposed of, or the consolidation,  merger or other business  combination of the
Borrower  with or into any other  Person (as defined  below) or Persons when the
Borrower is not the survivor shall, at the option of the Holder,  either: (i) be
deemed to be an Event of Default (as defined in Article  III)  pursuant to which
the Borrower shall be required to pay to the Holder upon the consummation of and
as a condition to such  transaction  an amount  equal to the Default  Amount (as
defined in Article III) or (ii) be treated  pursuant to Section  1.6(b)  hereof.
"Person" shall mean any  individual,  corporation,  limited  liability  company,
partnership, association, trust or other entity or organization.

            (b)  Adjustment Due to Merger,  Consolidation,  Etc. If, at any time
when this Note is issued and  outstanding  and prior to conversion of all of the
Notes,   there  shall  be  any  merger,   consolidation,   exchange  of  shares,
recapitalization,  reorganization,  or other

                                       8
<PAGE>

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

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

      Reserved.

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

                                       9
<PAGE>

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

      1.7 Reserved.

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

                         ARTICLE II. CERTAIN COVENANTS

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

                                       10
<PAGE>

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

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

      2.4 Sale of Assets.  So long as the  Borrower  shall  have any  obligation
under this Note, the Borrower  shall not,  except as prescribed in sections 4.e.
and 4.j. of the Securities Purchase Agreement,  sell, lease or otherwise dispose
of any  significant  portion  of its  assets  outside  the  ordinary  course  of
business,  without first obtaining the Holder's written  consent,  which consent
shall not be  unreasonably  denied,  withheld  or  delayed.  Any  consent to the
disposition  of any assets may be conditioned on a specified use of the proceeds
of disposition.

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

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

                         ARTICLE III. EVENTS OF DEFAULT

      If any of the following  events of default  (each,  an "Event of Default")
shall occur:

                                       11
<PAGE>

      3.1 Failure to Pay  Principal.  The  Borrower  fails to pay the  principal
hereof  when  due on this  Note,  whether  at  maturity,  upon  acceleration  or
otherwise;

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

      3.3  Failure  to Timely  File  Registration  or Effect  Registration.  The
Borrower fails to file the Registration  Statement  within  forty-five (45) days
following  the Closing  Date (as defined in the  Purchase  Agreement)  or obtain
effectiveness  with the Securities and Exchange  Commission of the  Registration
Statement  within one hundred and five (105) days following the Closing Date (as
defined in the Purchase  Agreement)  or such  Registration  Statement  lapses in
effect (or sales  cannot  otherwise  be made  thereunder  effective,  whether by
reason of the Borrower's failure to amend or supplement the prospectus  included
therein in accordance with the  Registration  Rights Agreement or otherwise) for
more than ten (10)  consecutive  days or twenty  (20) days in any  twelve  month
period after the Registration Statement becomes effective;

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

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

      3.6 Receiver or Trustee.  The Borrower or any  subsidiary  of the Borrower
shall make an assignment  for the benefit of creditors,  or apply for or consent
to the appointment of a receiver or trustee for it or for a substantial  part of
its  property or  business,  or such a receiver or trustee  shall  otherwise  be
appointed;  provided,  however, that if a receiver or trustee has been appointed
but is discharged within forty-five (45) thereafter,  such appointment shall not
constitute an Event of Default;

                                       12
<PAGE>

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

      3.8  Bankruptcy.  Bankruptcy,  insolvency,  reorganization  or liquidation
proceedings or other  proceedings for relief under any bankruptcy law or any law
for the relief of debtors  shall be instituted by or against the Borrower or any
subsidiary of the Borrower;  provided,  however,  that if such  proceedings have
been  instituted  against the  Borrower but  dismissed  within  forty-five  (45)
thereafter, such occurrence shall not constitute an Event of Default;

      3.9  Delisting of Common  Stock.  The Borrower  shall fail to maintain the
listing of the Common  Stock on any of the Nasdaq  National  Market,  the Nasdaq
SmallCap Market, the New York Stock Exchange,  or the American Stock Exchange or
shall fail to file its periodic  reports in accordance with the  requirements of
the Securities  Exchange Act of 1934, as amended,  such that its common stock no
longer  qualifies  to be  quoted  on  the  OTCBB  or an  equivalent  replacement
quotation medium; or

      3.10 Default  Under Other  Notes.  An Event of Default has occurred and is
continuing  under  any  of the  other  Notes  issued  pursuant  to the  Purchase
Agreement,

then,  upon the occurrence and during the  continuation  of any Event of Default
specified in Section 3.1,  3.2,  3.3, 3.4, 3.5, 3.7, 3.9, or 3.10, at the option
of  the  Holders  of a  majority  of  the  aggregate  principal  amount  of  the
outstanding Notes issued pursuant to the Purchase Agreement  exercisable through
the delivery of written  notice to the  Borrower by such  Holders (the  "Default
Notice"),  and upon the  occurrence of an Event of Default  specified in Section
3.6 or 3.8, the Notes shall become  immediately due and payable and the Borrower
shall pay to the Holder, in full satisfaction of its obligations  hereunder,  an
amount  equal to the  greater of (i) 130% times the then  outstanding  principal
amount of this Note (the "Mandatory Prepayment Date") plus (y) Default Interest,
if any,  on the  amounts  referred  to in  clauses  (w)  and/or (x) plus (z) any
amounts  owed to the  Holder  pursuant  to  Sections  1.3 and  1.4(g)  hereof or
pursuant  to  Section  2(c)  of the  Registration  Rights  Agreement  (the  then
outstanding  principal  amount  of this  Note to the  date of  payment  plus the
amounts  referred to in clauses (x), (y) and (z) shall  collectively be known as
the "Default  Sum") or (ii) the "parity value" of the Default Sum to be prepaid,
where  parity  value  means (a) the  highest  number  of shares of Common  Stock
issuable  upon  conversion  of or  otherwise  pursuant  to such  Default  Sum in
accordance  with Article I, treating the Trading Day  immediately  preceding the
Mandatory  Prepayment Date as the "Conversion  Date" for purposes of determining
the lowest  applicable  Conversion  Price,  unless the Default Event arises as a
result of a breach in respect of a specific  Conversion  Date in which case such
Conversion  Date shall be the  Conversion  Date),  multiplied by (b) the highest
Closing  Price for the Common Stock  during the period  beginning on the date of
first  occurrence  of the  Event of  Default  and  ending  one day  prior to the
Mandatory  Prepayment Date (the "Default  Amount") and all other amounts payable
hereunder  shall  immediately  become  due  and  payable,  all  without  demand,
presentment or notice,  all of which hereby are expressly waived,  together with
all  costs,  including,   without  limitation,   legal  fees  and  expenses,  of
collection,  and the Holder  shall be entitled to exercise  all

                                       13
<PAGE>

other rights and remedies  available at law or in equity.  If the Borrower fails
to pay the Default  Amount within five (5) business days of written  notice that
such  amount is due and  payable,  then the  Holder  shall have the right at any
time, so long as the Borrower  remains in default (and so long and to the extent
that there are  sufficient  authorized  shares),  to require the Borrower,  upon
written notice, to immediately  issue, in lieu of the Default Amount, the number
of shares of Common Stock of the Borrower equal to the Default Amount divided by
the Conversion  Price then in effect.  Notwithstanding  anything to the contrary
contained herein, in the Purchase  Agreement,  or in any other agreement between
the parties hereto in respect of any of the transactions  contemplated hereby or
thereby,  no default in the payment of principal or interest due hereunder shall
be deemed an Event of Default unless and until written notice thereof shall have
been provided in writing by the Holder to the Maker and,  through the expiration
of the 45-day period immediately  thereafter,  the Maker shall not have tendered
to the Holder all of such  unpaid  principal  payment and any accrued and unpaid
interest  due  concurrently  with  such  principal  payment.  Further,  upon the
expiration of such 45-day  period,  if uncured,  such Event of Default shall not
act as any  cross-default in respect of any other Callable  Secured  Convertible
Note of the Maker in favor of any person or entity  that  purchased  the same in
the transactions contemplated by the Purchase Agreement.

                           ARTICLE IV. MISCELLANEOUS

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

      4.2 Notices.  Any notice herein required or permitted to be given shall be
in  writing  and may be  personally  served or  delivered  by courier or sent by
United  States  mail and  shall be deemed to have been  given  upon  receipt  if
personally served (which shall include telephone line facsimile transmission) or
sent by courier or three (3) days after  being  deposited  in the United  States
mail, certified,  with postage pre-paid and properly addressed, if sent by mail.
For the  purposes  hereof,  the  address of the Holder  shall be as shown on the
records of the Borrower;  and the address of the Borrower  shall be 1801 Century
Park East, Suite 1830, Los Angeles,  CA 90067,  facsimile number:  310-226-8553.
Both the Holder and the  Borrower  may change the address for service by service
of written notice to the other as herein provided.

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

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

                                       14
<PAGE>

      4.5 Cost of  Collection.  If default is made in the  payment of this Note,
the  Borrower  shall  pay the  Holder  hereof  costs  of  collection,  including
reasonable attorneys' fees.

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

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

      4.8 Allocations of Maximum Share Amount and Reserved  Amount.  The Maximum
Share Amount and Reserved  Amount shall be allocated  pro rata among the Holders
of Notes based on the principal amount of such Notes issued to each Holder. Each
increase to the Maximum Share Amount and Reserved  Amount shall be allocated pro
rata among the Holders of Notes based on the principal amount of such Notes held
by each  Holder  at the time of the

                                       15
<PAGE>

increase in the Maximum Share Amount or Reserved  Amount.  In the event a Holder
shall sell or otherwise  transfer any of such Holder's  Notes,  each  transferee
shall be allocated a pro rata portion of such transferor's  Maximum Share Amount
and Reserved Amount.  Any portion of the Maximum Share Amount or Reserved Amount
which  remains  allocated  to any person or entity which does not hold any Notes
shall be  allocated  to the  remaining  Holders of Notes,  pro rata based on the
principal amount of such Notes then held by such Holders.

      4.9 Damages Shares. The shares of Common Stock that may be issuable to the
Holder  pursuant to Sections 1.3 and 1.4(g)  hereof and pursuant to Section 2(c)
of the  Registration  Rights  Agreement  ("Damages  Shares") shall be treated as
Common Stock issuable upon  conversion of this Note for all purposes  hereof and
shall be subject to all of the limitations and afforded all of the rights of the
other shares of Common Stock issuable  hereunder,  including without limitation,
the right to be included in the  Registration  Statement  filed  pursuant to the
Registration Rights Agreement.

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

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

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

      4.13  Remedies.  The  Borrower  acknowledges  that a  breach  by it of its
obligations  hereunder will cause  irreparable harm to the Holder,  by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly,  the
Borrower acknowledges that

                                       16
<PAGE>

the  remedy  at law for a breach  of its  obligations  under  this  Note will be
inadequate  and  agrees,  in the event of a breach or  threatened  breach by the
Borrower of the provisions of this Note,  that the Holder shall be entitled,  in
addition to all other available remedies at law or in equity, and in addition to
the penalties  assessable  herein, to an injunction or injunctions  restraining,
preventing  or curing any breach of this Note and to  enforce  specifically  the
terms and provisions thereof, without the necessity of showing economic loss and
without any bond or other security being required.

                             ARTICLE V. CALL OPTION

      5.1 Call Option.  Notwithstanding  anything to the  contrary  contained in
this  Article V, so long as (i) no Event of Default  shall have  occurred and be
continuing,  (ii) the Borrower has a sufficient  number of authorized  shares of
Common Stock  reserved for issuance upon full  conversion of the Notes,  then at
any time after the Issue Date, and (iii) the Common Stock is trading at or below
$2.55 per share, the Borrower shall have the right, exercisable on not less than
ten (10)  Trading Days prior  written  notice to the Holders of the Notes (which
notice  may not be sent to the  Holders  of the  Notes  until  the  Borrower  is
permitted to prepay the Notes  pursuant to this Section  5.1),  to prepay all of
the  outstanding  Notes in  accordance  with this  Section  5.1.  Any  notice of
prepayment  hereunder  (an  "Optional  Prepayment")  shall be  delivered  to the
Holders of the Notes at their  registered  addresses  appearing on the books and
records of the Borrower and shall state (1) that the Borrower is exercising  its
right to prepay  all of the Notes  issued on the Issue  Date and (2) the date of
prepayment (the "Optional Prepayment Notice").  On the date fixed for prepayment
(the  "Optional  Prepayment  Date"),  the  Borrower  shall  make  payment of the
Optional  Prepayment  Amount  (as  defined  below)  to or upon the  order of the
Holders as  specified by the Holders in writing to the Borrower at least one (1)
business day prior to the Optional  Prepayment  Date. If the Borrower  exercises
its right to prepay the Notes, the Borrower shall make payment to the holders of
an amount in cash (the  "Optional  Prepayment  Amount") equal to either (i) 125%
(for prepayments occurring within thirty (30) days of the Issue Date), (ii) 130%
for  prepayments  occurring  between  thirty-one (31) and sixty (60) days of the
Issue Date, or (iii) 135% (for  prepayments  occurring after the sixtieth (60th)
day following the Issue Date), multiplied by the sum of (w) the then outstanding
principal amount of this Note plus (y) Default Interest,  if any, on the amounts
referred  to in clause (w) plus (z) any amounts  owed to the Holder  pursuant to
Sections 1.3 and 1.4(g)  hereof or pursuant to Section 2(c) of the  Registration
Rights Agreement (the then outstanding principal amount of this Note to the date
of  payment  plus the  amounts  referred  to in clauses  (x),  (y) and (z) shall
collectively be known as the "Optional Prepayment Sum").  Notwithstanding notice
of an Optional Prepayment,  the Holders shall at all times prior to the Optional
Prepayment Date maintain the right to convert all or any portion of the Notes in
accordance with Article I and any portion of Notes so converted after receipt of
an Optional  Prepayment  Notice and prior to the  Optional  Prepayment  Date set
forth in such notice and payment of the  aggregate  Optional  Prepayment  Amount
shall be deducted from the principal amount of Notes which are otherwise subject
to  prepayment  pursuant to such notice.  If the  Borrower  delivers an Optional
Prepayment  Notice and fails to pay the  Optional  Prepayment  Amount due to the
Holders  of the Notes  within  two (2)  business  days  following  the  Optional
Prepayment  Date,  the Borrower  shall  forever  forfeit its right to redeem the
Notes pursuant to this Section 5.1.

                                       17
<PAGE>

      5.2  Partial  Call  Option.   Notwithstanding  anything  to  the  contrary
contained  in this  Article V, in the event that the Average  Daily Price of the
Common Stock,  as reported by the Reporting  Service,  for each day of the month
ending on any Determination Date is below the Initial Market Price, the Borrower
may, at its option,  prepay a portion of the outstanding principal amount of the
Notes equal to 104% of the principal  amount hereof  divided by thirty-six  (36)
plus one month's interest.  The term "Initial Market Price" means shall mean the
volume weighted  average price of the Common Stock for the five (5) Trading Days
immediately preceding the Closing which is $1.20.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       18
<PAGE>

      IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name
by its duly authorized officer this ___ day of ___________, 2005.

                                                ASTRATA GROUP INCORPORATED

                                                By:
                                                         -----------------------
                                                         Martin Euler
                                                         Chief Financial Officer

                                       19
<PAGE>

                                    EXHIBIT A

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

      The undersigned hereby irrevocably elects to convert $__________ principal
amount of the Note (defined below) into shares of common stock, par value $.0001
per share ("Common Stock"), of Astrata Group Incorporated,  a Nevada corporation
(the  "Borrower")  according to the conditions of the  convertible  Notes of the
Borrower  dated as of  __________,  2005 (the  "Notes"),  as of the date written
below.  If  securities  are to be issued in the name of a person  other than the
undersigned,  the  undersigned  will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates.  No fee will be charged to
the Holder for any conversion, except for transfer taxes, if any. A copy of each
Note is attached hereto (or evidence of loss, theft or destruction thereof).

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

         Name of DTC Prime Broker:
                                  ----------------------------------------------
         Account Number:
                        --------------------------------------------------------

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

         Name:
              ------------------------------------------------------------------
         Address:
                 ---------------------------------------------------------------

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

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

                                       20Exhibit 10.1
                                                        Share Exchange Agreement
--------------------------------------------------------------------------------

                            SHARE EXCHANGE AGREEMENT

                                  by and among

                          LEXICON UNITED INCORPORATED,
                                   as Acquiror

                        ATN CAPITAL & PARTICIPACOES LTDA.
                             as the acquired Company

                                       and

                               the Shareholders of
                        ATN CAPITAL & PARTICIPACOES LTDA.

--------------------------------------------------------------------------------

<PAGE>

                            SHARE EXCHANGE AGREEMENT

         SHARE EXCHANGE AGREEMENT, dated December 12, 2005 by and among LEXICON
UNITED INCORPORATED, a Delaware corporation (hereinafter referred to as
"Lexicon"), ATN CAPITAL & PARTICIPACOES LTDA, a Brazilian limited company
(hereinafter referred to as the "Company"), and Omar Malheiro Silva Araujo and
Manuel da Costa Fraguas, each shareholders of the Company (hereinafter referred
to as the "Shareholders").

                                    RECITALS:

         A. The Shareholders own, in the aggregate one hundred percent (100%) of
the issued and outstanding capital stock of the Company and will be exchanging
pursuant to this Agreement Four Hundred Thousand (400,000) shares of the
Company's capital stock (the "Shares") constituting 80% of the Company's issued
and outstanding capital stock in the aggregate.

         B. Lexicon is willing to acquire the Shares making the Company a
majority-owned subsidiary of Lexicon, and the Shareholders desire to exchange
their shares for cash and shares of Lexicon's authorized but unissued Common
Stock as hereinafter provided.

         NOW, THEREFORE, in consideration of the mutual covenants, agreements,
representations and warranties contained in this Agreement, the parties hereto
agree as follows:

         1.  EXCHANGE OF SHARES

         1.1 Exchange of Shares and Cash Consideration. Lexicon is paying to the
Shareholders on the date hereof cash in immediately available funds in the
amount of One Hundred and Seven Thousand, Six Hundred and Ninety-Two Dollars
($107,692.00), in the aggregate, as partial consideration for the Shares. If the
Closing does not occur for any reason, then the Shareholders must immediately
return such cash amount without interest. Lexicon and the Shareholders hereby
agree that the Shareholders shall, on the Closing Date (as hereinafter defined),
exchange the Shares for 2,000,000 shares, in the aggregate, of Lexicon Common
Stock, $0.001 par value (the "Lexicon Shares"). The number of shares of capital
stock owned by the Shareholders and the number of Lexicon Shares and cash which
the Shareholders will be entitled to receive in the Exchange is set forth in
Exhibit A hereto.

         1.2 Delivery of Shares. On the Closing Date, the Shareholders will
deliver to Lexicon the certificates representing the Shares, duly endorsed (or
with executed stock powers) so as to make Lexicon the sole owner thereof.
Simultaneously, Lexicon will deliver certificates representing the Lexicon
Shares to the Shareholders.

         1.3 Investment Intent. The Lexicon Shares have not been registered
under the Securities Act of 1933, as amended, and may not be resold unless the
Lexicon Shares are registered under the Act or an exemption from such
registration is available. The Shareholders represent and warrant that they are
acquiring the Lexicon Shares for their own account, for investment, and not with
a view to the sale or distribution of such Shares. Each certificate representing
the Lexicon Shares will have a legend thereon referring to the transfer
restrictions of the Securities Act of 1933, as amended.

<PAGE>

         2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE SHAREHOLDERS

         The Company and the Shareholders hereby jointly, and severally,
represent and warrant that, the statements contained in this Section 2 are
correct and complete as of the date of this Agreement and will be correct and
complete as of the Closing Date (as though made then and as though the Closing
Date were substituted for the date of this Agreement throughout this Section 2),
except as set forth in the disclosure schedule attached hereto as Schedule B
hereto (the "Disclosure Schedule"). The Disclosure Schedule will be arranged in
paragraphs corresponding to the lettered and numbered paragraphs contained in
this Section 2.

         2.1 Organization and Good Standing; Ownership of Shares. The Company is
a limited company duly organized, validly existing and in good standing under
the laws of Brazil, and is entitled to own or lease its properties and to carry
on its business as and in the places where such properties are now owned, leased
or operated and such business is now conducted. The Company does not have any
subsidiaries. There are no outstanding subscriptions, rights, options, warrants
or other agreements obligating either the Company or the Shareholders to issue,
sell or transfer any stock or other securities of the Company.

         2.2 Ownership of Shares. The Shareholders are the owners of record and
beneficially of the Shares, all of which Shares are free and clear of all
rights, claims, liens and encumbrances, and have not been sold, pledged,
assigned or otherwise transferred except pursuant to this Agreement. Section 2.2
of the Disclosure Schedule contains a true and accurate list of all of the
stockholders of the Company and the number of shares of the Company's capital
stock held by each stockholder. The Shares constitute Eighty Percent (80%) of
the issued and outstanding share capital of the Company on the date hereof.

         2.3 Financial Statements, Books and Records. There has been previously
delivered to Lexicon the audited balance sheets of the Company as at December
31, 2004 (the "Balance Sheet") and December 31, 2003, and the related audited
statement of operations and retained earnings and cash flows for the periods
then ended (the "Financial Statements"). The Financial Statements are true and
accurate and fairly represent the financial position of the Company as at such
dates and the results of its operations for the periods then ended.

         2.4 No Material Adverse Changes. Since the date of the Balance Sheet
there has not been:

                  (i) any material adverse change in the assets, operations,
condition (financial or otherwise) or prospective business of the Company;

                                        2
<PAGE>

                  (ii) any damage, destruction or loss materially affecting the
assets, prospective business, operations or condition (financial or otherwise)
of the Company, whether or not covered by insurance;

                  (iii) any declaration, setting aside or payment of any
dividend or distribution with respect to any redemption or repurchase of the
Company's capital stock;

                  (iv) any sale of an asset (other than in the ordinary course
of business) or any mortgage or pledge by the Company of any properties or
assets; or

                  (v) adoption of any pension, profit sharing, retirement, stock
bonus, stock option or similar plan or arrangement.

         2.5 Taxes. The Company has prepared and filed all appropriate foreign,
federal, state and local tax returns for all periods prior to and through the
date hereof for which any such returns have been required to be filed by it and
has paid all taxes shown to be due by said returns or on any assessments
received by it or has made adequate provision for the payment thereof.

         2.6 Compliance with Laws. The Company has complied with all foreign,
federal, state, county and local laws, ordinances, regulations, inspections,
orders, judgments, injunctions, awards or decrees applicable to it or its
business which, if not complied with, would materially and adversely affect the
business of the Company.

         2.7 No Breach. The execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby will not:

                  (i) violate any provision of the charter documents or other
constituent instruments of the Company;

                  (ii) violate, conflict with or result in the breach of any of
the terms of, result in a material modification of, otherwise give any other
contracting party the right to terminate, or constitute (or with notice or lapse
of time or both constitute) a default under, any contract or other agreement to
which the Company is a party or by or to which it or any of its assets or
properties may be bound or subject;

                  (iii) violate any order, judgment, injunction, award or decree
of any court, arbitrator or governmental or regulatory body against, or binding
upon, the Company, or upon the properties or business of the Company; or

                  (iv) violate any statute, law or regulation of any
jurisdiction applicable to the transactions contemplated herein which could have
a materially adverse effect on the business or operations of the Company.

                                        3
<PAGE>

         2.8 Actions and Proceedings. There is no outstanding order, judgment,
injunction, award or decree of any court, governmental or regulatory body or
arbitration tribunal against or involving the Company. There is no action, suit
or claim or legal, administrative or arbitral proceeding or (whether or not the
defense thereof or liabilities in respect thereof are covered by insurance)
pending or threatened against or involving the Company or any of its properties
or assets.

         2.9 Brokers or Finders. No broker's or finder's fee will be payable by
the Company in connection with the transactions contemplated by this Agreement,
nor will any such fee be incurred as a result of any actions by the Company or
the Shareholders.

         2.10 Liabilities. The Company does not have any direct or indirect
indebtedness, liability, claim, loss, damage, deficiency, obligation or
responsibility, known or unknown, fixed or unfixed, liquidated or unliquidated,
secured or unsecured, accrued or absolute, contingent or otherwise, including,
without limitation, any liability on account of taxes, any other governmental
charge or lawsuit (all of the foregoing collectively defined to as
"Liabilities"), which were not fully, fairly and adequately reflected on the
Balance Sheet or in the Disclosure Schedule. As of the Closing Date, the Company
will not have any Liabilities, other than Liabilities fully and adequately
reflected on the Balance Sheet or the Disclosure Schedule, except for
Liabilities incurred in the ordinary course of business.

         2.11 Operations of the Company. Except as set forth in the Disclosure
Schedule, since the date of the Balance Sheet and through the Closing Date, the
Company has not and will not have:

                  (i) incurred any indebtedness for borrowed money;

                  (ii) declared or paid any dividend or declared or made any
distribution of any kind to any shareholder, or made any direct or indirect
redemption, retirement, purchase or other acquisition of any shares in its
capital stock;

                  (iii) made any loan or advance to any shareholder, officer,
director, employee, consultant, agent or other representative or made any other
loan or advance otherwise than in the ordinary course of business;

                  (iv) except in the ordinary course of business, incurred or
assumed any indebtedness or liability (whether or not currently due and
payable);

                  (v) disposed of any assets of the Company except in the
ordinary course of business;

                  (vi) increased, terminated amended or otherwise modified any
plan for the benefit of employees of the Company;

                                        4
<PAGE>

                  (vii) issued any equity securities or rights to acquire such
equity securities; or

                  (viii) except in the ordinary course of business, entered into
or modified any contract, agreement or transaction.

         2.12 Real Estate. Except as set forth in the Disclosure Schedule, the
Company neither owns real property nor is a party to any leasehold agreement.

         2.13 Tangible Assets. The Company has full title and interest in all
machinery, equipment, furniture, leasehold improvements, fixtures, vehicles,
structures, owned or leased by the Company, any related capitalized items or
other tangible property material to the business of the Company (the "Tangible
Assets"). The Company holds all rights, title and interest in all the Tangible
Assets owned by it on the most recent Balance Sheet or acquired by it after the
date of the most recent Balance Sheet, free and clear of all liens, pledges,
mortgages, security interests, conditional sales contracts or any other
encumbrances except as set forth in the Disclosure Schedule. All of the Tangible
Assets are in good operating condition and repair and are usable in the ordinary
course of business of the Company and conform to all applicable laws, ordinances
and governmental orders, rules and regulations relating to their construction
and operation.

         2.14 Capitalization. The authorized capital stock of the Company
consists of 500,000 shares of common stock of which Five Hundred Thousand
(500,000) shares are presently issued and outstanding. Neither the Company nor
the Shareholders has granted, issued or agreed to grant, issue or make available
any warrants, options, subscription rights or any other commitments of any
character relating to the issued or unissued shares of capital stock of the
Company.

         2.15 Investment Representations. (a) the Shareholders are acquiring the
Lexicon Shares for their own account for investment and not for the account of
any other person and not with a view to or for distribution, assignment or
resale in connection with any distribution within the meaning of the Securities
Act, (b) the Shareholders have knowledge and experience in financial and
business matters such that they are capable of evaluating the merits and risks
of an investment in Lexicon, (c) the Shareholders were provided the opportunity
ask questions and receive answers regarding the terms and conditions of the
offering and to obtain any additional information which we possessed or were
able to acquire without unreasonable effort and expense, and (d) the
Shareholders have adequate means of providing for their current needs and
possible personal contingencies, anticipate no need now or in the foreseeable
future to sell the shares and can afford the loss of the entire investment.

         2.16 Full Disclosure. No representation or warranty by the Company or
the Shareholders in this Agreement will contain any untrue statement of a
material fact or omits or will omit to state any fact necessary to make any
statement herein not materially misleading or necessary to a complete and
correct presentation of all material aspects of the businesses of the Company.

                                        5
<PAGE>

         2.17 Representations and Warranties on Closing Date. The
representations and warranties contained in this Section 2 shall be true and
complete on the Closing Date with the same force and effect as though such
representations and warranties had been made on and as of the Closing Date.

         3. REPRESENTATIONS AND WARRANTIES OF LEXICON

         Lexicon hereby represents and warrants that, the statements contained
in this ?Section 3 are correct and complete as of the date of this Agreement and
will be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement
throughout this Section 3), except as set forth in the disclosure schedule
attached hereto as Schedule B hereto (the "Disclosure Schedule"). The Disclosure
Schedule will be arranged in paragraphs corresponding to the lettered and
numbered paragraphs contained in this 3.

         3.1 Organization and Good Standing. Lexicon is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and is entitled to own or lease its properties and to carry on its
business as and in the places where such properties are now owned, leased, or
operated and such business is now conducted. As of the Closing Date, the
authorized capital stock of Lexicon will consist of 50,000,000 shares, of which,
40,000,000 shares are designated as Common Stock, of which 6,456,250 shares will
be issued and outstanding immediately prior to the Closing, and 10,000,000
shares are designated as Preferred Stock, of which no shares will be issued and
outstanding immediately prior to the Closing. Lexicon is duly licensed or
qualified and in good standing as a foreign corporation where the character of
the properties owned by Lexicon or the nature of the business transacted by it
make such license or qualification necessary. Lexicon does not have any
subsidiaries.

         3.2 The Lexicon Shares. The Lexicon Shares to be issued to the
Shareholders have been or will have been duly authorized for issuance by all
requisite corporate and stockholder action required under the General
Corporation Law of the State of Delaware and no other corporate or shareholder
action is required to authorize the Lexicon Shares for issuance and, when so
issued in accordance with the terms of this Agreement, the Lexicon Shares will
be validly issued, fully paid and non-assessable.

         3.3 Financial Statements; Books and Records. There has been previously
delivered to the Company, the audited balance sheet of Lexicon as at December
31, 2004 and December 31, 2003 (the "Lexicon Balance Sheets") and the related
audited statements of operations and cash flows for the periods then ended (the
"Financial Statements"). The Financial Statements are true and accurate and
fairly represent the financial position of the Company as at such dates and the
results of its operations for the periods then ended, and have been prepared in
accordance with U.S. generally accepted accounting principles consistently
applied.

         3.4 No Material Adverse Changes. Since the date of the most recent
Lexicon Balance Sheet and except as otherwise disclosed in the Disclosure
Schedule or in Lexicon's reports or filings made under the Securities Exchange
Act of 1934, there has not been:

                                        6
<PAGE>

                  (i) any material adverse change in the assets, operations,
condition (financial or otherwise) or prospective business of Lexicon;

                  (ii) any damage, destruction or loss materially affecting the
assets, prospective business, operations or condition (financial or otherwise)
of Lexicon, whether or not covered by insurance;

                  (iii) any declaration, setting aside or payment of any
dividend or distribution with respect to any redemption or repurchase of
Lexicon's capital stock;

                  (iv) any sale of an asset (other than in the ordinary course
of business) or any mortgage or pledge by Lexicon of any properties or assets;
or

                  (v) adoption of any pension, profit sharing, retirement, stock
bonus, stock option or similar plan or arrangement.

         3.5 Compliance with Laws. Lexicon has complied with all federal, state,
county and local laws, ordinances, regulations, inspections, orders, judgments,
injunctions, awards or decrees applicable to their businesses, including Federal
and State securities laws, which, if not complied with, would materially and
adversely affect the business of Lexicon or the trading market for the shares of
Lexicon's Common Stock.

         3.6 No Breach. The execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby will not:

                  (i) violate any provision of the Articles of Incorporation or
By-Laws of Lexicon;

                  (ii) violate, conflict with or result in the breach of any of
the terms of, result in a material modification of, otherwise give any other
contracting party the right to terminate, or constitute (or with notice or lapse
of time or both constitute) a default under, any contract or other agreement to
which Lexicon is a party or by or to which it or any of its assets or properties
may be bound or subject;

                  (iii) violate any order, judgment, injunction, award or decree
of any court, arbitrator or governmental or regulatory body against, or binding
upon, Lexicon or upon the properties or business of Lexicon; or

                  (iv) violate any statute, law or regulation of any
jurisdiction applicable to the transactions contemplated herein which could have
a material adverse effect on the business or operations of Lexicon..

                                        7
<PAGE>

         3.7 Actions and Proceedings. There is no outstanding order, judgment,
injunction, award or decree of any court, governmental or regulatory body or
arbitration tribunal against or involving Lexicon. There is no action, suit or
claim or legal, administrative or arbitral proceeding or (whether or not the
defense thereof or liabilities in respect thereof are covered by insurance)
pending or threatened against or involving Lexicon or any of its properties or
assets. Except as set forth on Schedule 3.7, there is no fact, event or
circumstances that may give rise to any suit, action, claim, investigation or
proceeding.

         3.8 Brokers or Finders. Except as set forth in the Disclosure Schedule,
no broker's or finder's fee will be payable by Lexicon in connection with the
transactions contemplated by this Agreement.

         3.9 Liabilities. Lexicon does not have any direct or indirect
indebtedness, liability, claim, loss, damage, deficiency, obligation or
responsibility, known or unknown, fixed or unfixed, liquidated or unliquidated,
secured or unsecured, accrued or absolute, contingent or otherwise, including,
without limitation, any liability on account of taxes, any other governmental
charge or lawsuit (all of the foregoing collectively defined to as
"Liabilities"), which were not fully, fairly and adequately reflected on the
Lexicon Balance Sheet.

         3.10 Operations of Lexicon. Except as set forth in the Disclosure
Schedule or in Lexicon' reports or filings made under the Securities Exchange
Act of 1934, since the date of the most recent Lexicon Balance Sheet and through
the Closing Date hereof, Lexicon has not and will not have:

                  (i) incurred any indebtedness for borrowed money;

                  (ii) declared or paid any dividend or declared or made any
distribution of any kind to any shareholder, or made any direct or indirect
redemption, retirement, purchase or other acquisition of any shares in its
capital stock;

                  (iii) made any loan or advance to any shareholder, officer,
director, employee, consultant, agent or other representative or made any other
loan or advance otherwise than in the ordinary course of business;

                  (iv) except in the ordinary course of business, incurred or
assumed any indebtedness or liability (whether or not currently due and
payable);

                  (v) disposed of any assets of Lexicon except in the ordinary
course of business; or

                  (vi) increased, terminated amended or otherwise modified any
plan for the benefit of employees of Lexicon;

                  (vii) issued any equity securities or rights to acquire such
equity securities; or

                  (viii) except in the ordinary course of business, entered into
or modified any contract, agreement or transaction.

                                        8
<PAGE>

         3.11 Authority to Execute and Perform Agreements. Lexicon has the full
legal right and power and all authority and approval required to enter into,
execute and deliver this Agreement and to perform fully their obligations
hereunder. This Agreement has been duly executed and delivered and is the valid
and binding obligation of Lexicon enforceable in accordance with its terms. The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby and the performance by Lexicon of this
Agreement, in accordance with its respective terms and conditions will not:

                  (i) require the approval or consent of any governmental or
regulatory body, the Shareholders of Lexicon, or the approval or consent of any
other person;

                  (ii) conflict with or result in any breach or violation of any
of the terms and conditions of, or constitute (or with any notice or lapse of
time or both would constitute) a default under, any order, judgment or decree
applicable to Lexicon, or any instrument, contract or other agreement to which
Lexicon is a party or by or to which it is bound or subject; or

                  (iii) result in the creation of any lien or other encumbrance
on the assets or properties of Lexicon.

         3.12 Delivery of Periodic Reports; Compliance with 1934 Act. Lexicon
has provided the Company and Shareholders with all of its Periodic Reports filed
with the Securities and Exchange Commission since January 1, 2005. Lexicon has
filed all required Periodic Reports and is in compliance with its reporting
obligations under the Securities Exchange Act of 1934. All reports filed
pursuant to such Act are complete and correct in all material respects. All
material contracts relative to Lexicon are included in the Periodic Reports.

         3.13 Full Disclosure. No representation or warranty by Lexicon in this
Agreement contains or will contain any untrue statement of a material fact or
omit or will omit to state any fact necessary to make any statement herein not
materially misleading or necessary to a complete and correct presentation of all
material aspects of the business of Lexicon.

         3.14 Representations and Warranties on Closing Date. The
representations and warranties contained in this Section 3 shall be true and
complete on the Closing Date with the same force and effect as through such
representations and warranties had been made on and as of the Closing Date.

         4. COVENANTS OF COMPANY AND SHAREHOLDERS

         The Company and the Shareholders covenant to Lexicon as follows:

         4.1 Conduct of Business. From the date hereof through the Closing Date,
the Shareholders and the Company shall cause the Company to conduct its business
in the ordinary course and, without the prior written consent of Lexicon, shall
ensure that the Company does not undertake any of the actions specified in
Section 2.11 hereof.

                                        9
<PAGE>

         4.2 Preservation of Business. From the date hereof through the Closing
Date, the Shareholders and the Company shall cause the Company to use its best
efforts to preserve its business organization intact, keep available the
services of its present employees, consultants and agents, maintain its present
suppliers and customers and preserve its goodwill.

         4.3 Litigation. The Company shall promptly notify Lexicon of any
lawsuits, claims, proceedings or investigations which after the date hereof are
threatened or commenced against the Company or against any officer, director,
employee, consultant, agent, shareholder or other representative with respect to
the affairs of the Company.

         4.4 Continued Effectiveness of Representations and Warranties. From the
date hereof through the Closing Date, the Shareholders and the Company shall
cause the Company to conduct its business in such a manner so that the
representations and warranties contained in Section 2 shall continue to be true
and correct on and as of the Closing Date and as if made on and as of the
Closing Date, and shall:

                  (i) promptly give notice to the Company or any event,
condition or circumstance occurring from the date hereof through the Closing
Date which would render any of the representations or warranties materially
untrue, incomplete, insufficient or constitute a violation or breach of this
Agreement; and

                  (ii) supplement the information contained herein in order that
the information contained herein is kept current, complete and accurate in all
material respects.

         5   COVENANTS OF LEXICON

         Lexicon covenants to the Company and the Shareholders as follows:

         5.1 Conduct of Business. From the date hereof through the Closing Date,
Lexicon shall conduct its business in the ordinary course and, without the prior
written consent of the Company, shall ensure that Lexicon does not undertake any
of the actions specified in Section 3.10 hereof.

         5.2 Preservation of Business. From the date hereof through the Closing
Date, Lexicon shall preserve its business organization intact and use its best
efforts to preserve Lexicon's goodwill.

         5.3 Litigation. Lexicon shall promptly notify the Company of any
lawsuits, claims, proceedings or investigations which after the date hereof are
threatened or commenced against Lexicon or against any officer, director,
employee, consultant, agent, or stockholder with respect to the affairs of
Lexicon.

                                       10
<PAGE>

         5.4 Continued Effectiveness of Representations and Warranties. From the
date hereof through the Closing Date, Lexicon shall conduct its business in such
a manner so that the representations and warranties contained in Section 3 shall
continue to be true and correct on and as of the Closing Date and as if made on
and as of the Closing Date, and shall:

                  (i) promptly give notice to the Company of any event,
condition or circumstance occurring from the date hereof through the Closing
Date which would render any of the representations or warranties materially
untrue, incomplete, insufficient or constitute a violation or breach of this
Agreement; and

                  (ii) supplement the information contained herein in order that
the information contained herein is kept current, complete and accurate in all
material respects.

         6. COVENANTS

         6.1 Corporate Examinations and Investigations. Prior to the Closing
Date, the parties acknowledge that they have been entitled, through their
employees and representatives, to make such investigation of the assets,
properties, business and operations, books, records and financial condition of
the other as they each may reasonably require. No investigation by a party
hereto shall, however, diminish or waive in any way any of the representations,
warranties, covenants or agreements of the other party under this Agreement.

         6.2 Expenses. Each party hereto agrees to pay its own costs and
expenses incurred in negotiating this Agreement and consummating the
transactions described herein. Notwithstanding the foregoing, Lexicon shall be
responsible for all of the costs and expenses incurred by the Company in
connection with the audit of the Company's financial statements for the fiscal
years ended December 31, 2004 and 2003 and for any further interim period and
for the preparation of a registration statement and other reports necessary to
make Lexicon (post-Closing) compliant with all of the rules and regulations of
the U.S. Securities and Exchange Commission.

         6.3 Further Assurances. The parties shall execute such documents and
other papers and take such further actions as may be reasonably required or
desirable to carry out the provisions hereof and the transactions contemplated
hereby. Each such party shall use its best efforts to fulfill or obtain the
fulfillment of the conditions to the Closing, including, without limitation, the
execution and delivery of any documents or other papers, the execution and
delivery of which are necessary or appropriate to the Closing.

         6.4 Confidentiality. In the event the transactions contemplated by this
Agreement are not consummated, each of the parties hereto agree to keep
confidential any information disclosed to each other in connection therewith for
a period of one (1) year from the date hereof; provided, however, such
obligation shall not apply to information which:

                                       11
<PAGE>

                  (i) at the time of disclosure was public knowledge;

                  (ii) after the time of disclosure becomes public knowledge
(except due to the action of the receiving party); or

                  (iii) the receiving party had within its possession at the
time of disclosure.

         7. CONDITIONS PRECEDENT TO THE OBLIGATION OF LEXICON TO CLOSE

         The obligation of Lexicon to enter into and complete the Closing is
subject, at the option of Lexicon, to the fulfillment on or prior to the Closing
Date of the following conditions, any one or more of which may be waived by
Lexicon in writing.

         7.1 Representations and Covenants. The representations and warranties
of the Company and the Shareholders contained in this Agreement shall be true in
all material respects on and as of the Closing Date with the same force and
effect as though made on and as of the Closing Date. The Company and the
Shareholders shall have performed and complied in all material respects with all
covenants and agreements required by this Agreement to be performed or complied
with by the Company and the Shareholders on or prior to the Closing Date. The
Company and the Shareholders shall have delivered to Lexicon, if requested, a
certificate, dated the Closing Date, to the foregoing effect.

         7.2 Governmental Permits and Approvals; Corporate Resolutions. Any and
all permits and approvals from any governmental or regulatory body required for
the lawful consummation of the Closing shall have been obtained. The Board of
Directors or the Shareholders of the Company shall have approved the
transactions contemplated by this Agreement and the Company shall have delivered
to Lexicon, if requested by Lexicon resolutions by its Board of Directors,
certified by the Secretary of the Company authorizing the transactions
contemplated by this Agreement.

         7.3 Third Party Consents. All consents, permits and approvals from
parties to any contracts, loan agreements or other agreements with the Company
which may be required in connection with the performance by the Company of its
obligations under such contracts or other agreements after the Closing shall
have been obtained.

         7.4 Litigation. No action, suit or proceeding shall have been
instituted before any court or governmental or regulatory body or instituted or
threatened by any governmental or regulatory body to restrain, modify or prevent
the carrying out of the transactions contemplated hereby or to seek damages or a
discovery order in connection with such transactions, or which has or may have,
in the reasonable opinion of Lexicon, a materially adverse effect on the assets,
properties, business, operations or condition (financial or otherwise) of the
Company.

                                       12
<PAGE>

         7.5 Stock Certificates: At the Closing, the Shareholders shall have
delivered the certificates representing the Shares, duly endorsed (or with
executed stock powers) so as to make Lexicon the sole owner thereof.

         7.6 Employment and Noncompetition Agreement. The Company and the
Shareholders shall have entered into two-year employment and non-competition
agreements and such other key employees of the Company and the Company shall
have entered into similar agreements. The non-competition agreements shall have
a period of two year's following the termination of the employee's employment
with the Company.

         7.7 Releases. The Shareholders and other key employees designated by
Lexicon shall have executed releases that release the Company from any
obligations owed to the Shareholders and such other key employees, except for
obligations specifically referred to in such releases.

         7.8 Opinion. Lexicon shall have received an opinion of counsel to the
Company and the Shareholders that is in form and substance reasonably
satisfactory to Lexicon containing opinions that are customary for transactions
of this type, including, an opinion regarding the ownership by Lexicon of the
Shares following the Closing.

         7.9 Other Documents. The Company and the Shareholders shall have
delivered such other documents, instruments and certificates, if any, as are
required to be delivered pursuant to the provisions of this Agreement or which
may be reasonably requested in furtherance of the provisions of this Agreement.

         8. CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY AND
SHAREHOLDERS TO CLOSE

         The obligation of the Company and the Shareholders to enter into and
complete the Closing is subject, at the option of the Company and the
Shareholders, to the fulfillment on or prior to the Closing Date of the
following conditions, any one or more of which may be waived in writing by the
Company.

         8.1 Representations and Covenants. The representations and warranties
of Lexicon contained in this Agreement shall be true in all material respects on
the Closing Date with the same force and effect as though made on and as of the
Closing Date. Lexicon shall have performed and complied with all covenants and
agreements required by the Agreement to be performed or complied with by Lexicon
on or prior to the Closing Date. Lexicon shall have delivered to the Company and
the Shareholders, if requested, a certificate, dated the Closing Date and signed
by an executive officer of Lexicon, to the foregoing effect.

         8.2 Governmental Permits and Approvals; Corporate Resolutions. Any and
all permits and approvals from any governmental or regulatory body required for
the lawful consummation of the Closing shall have been obtained. The Board of
Directors or the Shareholders of Lexicon shall have approved the transactions
contemplated by this Agreement and Lexicon shall have delivered to the Company,
if requested by the Company resolutions by its Board of Directors, certified by
the Secretary of the Company authorizing the transactions contemplated by this
Agreement.

                                       13
<PAGE>

         8.3 Third Party Consents. All consents, permits and approvals from
parties to any contracts, loan agreements or other agreements with Lexicon which
may be required in connection with the performance by Lexicon of their
obligations under such contracts or other agreements after the Closing shall
have been obtained.

         8.4 Litigation. No action, suit or proceeding shall have been
instituted before any court or governmental or regulatory body or instituted or
threatened by any governmental or regulatory body to restrain, modify or prevent
the carrying out of the transactions contemplated hereby or to seek damages or a
discovery order in connection with such transactions, or which has or may in the
reasonable opinion of the Company, have a materially adverse effect on the
assets, properties, business, operations or condition (financial or otherwise)
of Lexicon.

         8.5 Stock Certificates and Cash. At the Closing, the Shareholders shall
receive certificates representing the securities to be received pursuant hereto
and the cash payment required hereby.

         8.6 Employment and Noncompetition Agreement. The Company and the
Shareholders shall have entered into two-year employment and non-competition
agreements and such other key employees of the Company and the Company shall
have entered into similar agreements. The non-competition agreements shall have
a period of two year's following the termination of the employee's employment
with the Company.

         8.7 Other Documents. Lexicon shall have delivered such other
instruments, documents and certificates, if any, as are required to be delivered
pursuant to the provisions of this Agreement or which may be reasonably
requested in furtherance of the provisions of this Agreement.

         9. SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF LEXICON

         Notwithstanding any right of the Company and the Shareholders fully to
investigate the affairs of Lexicon, the former shall have the right to rely
fully upon the representations, warranties, covenants and agreements of Lexicon
contained in this Agreement or in any document delivered by Lexicon or any of
its representatives, in connection with the transactions contemplated by this
Agreement. All such representations, warranties, covenants and agreements shall
survive the execution and delivery hereof and the Closing Date hereunder for
twelve (12) months following the Closing.

         10. SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE
SHAREHOLDERS

                                       14
<PAGE>

         Notwithstanding any right of Lexicon fully to investigate the affairs
of the Company, Lexicon has the right to rely fully upon the representations,
warranties, covenants and agreements of the Company and the Shareholders
contained in this Agreement or in any document delivered to Lexicon by the
latter or any of their representatives in connection with the transactions
contemplated by this Agreement. All such representations, warranties, covenants
and agreements shall survive the execution and delivery hereof and the Closing
Date hereunder for twelve (12) months following the Closing.

         11. INDEMNIFICATION

         11.1 Obligation of Lexicon to Indemnify. Subject to the limitations on
the survival of representations and warranties contained in Section 9, Lexicon
hereby agrees to indemnify, defend and hold harmless the Company and the
Shareholders from and against any losses, liabilities, damages, deficiencies,
costs or expenses (including interest, penalties and reasonable attorneys' fees
and disbursements) (a "Loss") based upon, arising out of or otherwise due to any
inaccuracy in or any breach of any representation, warranty, covenant or
agreement of Lexicon contained in this Agreement or in any document or other
writing delivered pursuant to this Agreement.

         11.2 Obligation of the Company and the Shareholders to Indemnify.
Subject to the limitations on the survival of representations and warranties
contained in Section 10, the Company and the Shareholders agree to indemnify,
defend and hold harmless Lexicon from and against any Loss, based upon, arising
out of or otherwise due to any inaccuracy in or any breach of any
representation, warranty, covenant or agreement made by any of them and
contained in this Agreement or in any document or other writing delivered
pursuant to this Agreement.

         12. THE CLOSING

         The Closing shall take place on the second business day following the
satisfaction or waiver of the conditions to closing specified herein or on such
other date as the Parties may agree. The parties expect the Closing to occur on
or before December 31, 2005. At the Closing, the parties shall provide each
other with such documents as may be necessary or appropriate in order to
consummate the transactions contemplated hereby including evidence of due
authorization of the Agreement and the transactions contemplated hereby.

         13. MISCELLANEOUS

         13.1 Waivers. The waiver of a breach of this Agreement or the failure
of any party hereto to exercise any right under this Agreement shall in no event
constitute waiver as to any future breach whether similar or dissimilar in
nature or as to the exercise of any further right under this Agreement.

                                       15
<PAGE>

         13.2 Amendment. This Agreement may be amended or modified only by an
instrument of equal formality signed by Lexicon and the Company and a majority
in interest of the Shareholders of the Company or the duly authorized
representatives of the respective parties.

         13.3 Assignment. This Agreement is not assignable except by operation
of law.

         13.4 Notices. Until otherwise specified in writing, the mailing
addresses of the parties of this Agreement shall be as follows:

              If to Lexicon, to:              4500 Steiner Ranch Blvd.
                                              Suite # 1708, Austin, Texas 78732

              If to the Company or the
                 Shareholders                 177 Av. Rio Branco
                                              7th Floor
                                              Rio de Janeiro, Brazil  20040-007

Any notice or statement given under this Agreement shall be deemed to have been
given if sent by registered mail addressed to the other party at the address
indicated above or at such other address which shall have been furnished in
writing to the addressor.

         13.5 Governing Law. This Agreement shall be construed, and the legal
relations be the parties determined, in accordance with the laws of the State of
New York, thereby precluding any choice of law rules which may direct the
applicable of the laws of any other jurisdiction.

         13.6 Publicity. No publicity release or announcement concerning this
Agreement or the transactions contemplated hereby shall be issued by either
party hereto at any time from the signing hereof without advance approval in
writing of the form and substance thereof by the other party.

         13.7 Entire Agreement. This Agreement (including the Exhibits and
Schedules hereto) contains the entire agreement among the parties with respect
to the exchange of the Shares for the Lexicon Shares and related transactions,
and supersede all prior agreements, written or oral, with respect thereto.

         13.8 Headings. The headings in this Agreement are for reference
purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

         13.9 Severability of Provisions. The invalidity or unenforceability of
any term, phrase, clause, paragraph, restriction, covenant, agreement or other
provision of this Agreement shall in no way affect the validity or enforcement
of any other provision or any part thereof.

         13.10 Counterparts; Facsimile Execution. This Agreement may be executed
in any number of counterparts, each of which when so executed, shall constitute
an original copy hereof, but all of which together shall consider but one and
the same document. Facsimile execution and delivery of this Agreement is legal,
valid and binding for all purposes.

                                       16
<PAGE>

         13.11 Abandonment Or Deferral. At any time before the Closing, this
Agreement may be terminated and the share exchange may be abandoned by the Board
of Directors of either or both of Lexicon and the Company, notwithstanding the
approval of this Agreement by the shareholders of either of Lexicon or the
Company, or the Closing may be deferred for a reasonable period of time if, in
the opinion of the Board of Directors of Lexicon and the Company, such action
would be in the best interests of such corporations. In the event of termination
of this Agreement, this Agreement shall become void and of no effect and there
shall be no liability on the part of either Lexicon or the Company or their
respective Boards of Directors or shareholders with respect thereto.

                            [signature page follows]

                                       17
<PAGE>

                            [Lexicon Signature Page]

         IN WITNESS WHEREOF, Lexicon has executed this Share Exchange Agreement
on the date first above written.

                                    LEXICON UNITED INCORPORATED

                                    By:   /s/ Elie Saltoun
                                          ----------------------------------
                                    Name: Elie Saltoun
                                          ----------------------------------
                                    Its:  Chief Executive Officer
                                          ----------------------------------

                                       18

<PAGE>

                            [Company Signature Page]

         IN WITNESS WHEREOF, the Company has executed this Share Exchange
Agreement on the date first above written.

                        ATN CAPITAL & PARTICIPACOES LTDA.

<TABLE>
<CAPTION>
<S>                                       <C>
By:    /s/ Manuel da Costa Fraguas        By:      /s/ Omar Malheiro da Silva Araujo
    -------------------------------             -------------------------------------
Name:  Manuel da Costa Fragua             Name:    Omar Malheiro da Silva Araujo
     ------------------------------             -------------------------------------
Its:   Director                           Its:     Director
     ------------------------------             -------------------------------------
</TABLE>

                                       19

<PAGE>

                          [Shareholder Signature Page]

         IN WITNESS WHEREOF, the undersigned Shareholder of the Company has
executed this Share Exchange Agreement on the date first above written.

                                    By:      /s/ Omar Malheiro da Silva Araujo
                                        --------------------------------------
                                             Omar Malheiro Silva Araujo

                                    By:      /s/ Manuel da Costa Fraguas
                                        --------------------------------------
                                             Manuel da Costa Fraguas

                                       20

<PAGE>

                                    EXHIBIT A

                              EXCHANGE WITH LEXICON

<TABLE>
<CAPTION>
------------------------------- ---------------------------- ---------------------------- ----------------------------
Name of Shareholder             Number of Shares to Be       Number of Lexicon Shares     Amount of Cash
                                Exchanged                    to Be Received               Consideration to be
                                                                                          Received
------------------------------- ---------------------------- ---------------------------- ----------------------------
<S>                             <C>                           <C>                         <C>
Omar Malheiro Silva Araujo      280,000                      1,400,000                    $75,384.40
------------------------------- ---------------------------- ---------------------------- ----------------------------
Manuel da Costa Fraguas         120,000                      600,000                      $32,307.60
------------------------------- ---------------------------- ---------------------------- ----------------------------
                                400,000                      2,000,000                    $107,692.00
------------------------------- ---------------------------- ---------------------------- ----------------------------
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}]]