Document:

Exhibit  4.14

                                 PROMISSORY NOTE

FACE  AMOUNT                                     $90,000
PRICE                                               $75,000
INTEREST  RATE                                     0%  per  month
NOTE  NUMBER                                     March  -  2005-101
ISSUANCE  DATE                                     March  11,  2005
MATURITY  DATE                                     April  11,  2005

     FOR  VALUE  RECEIVED,  Xtreme  Companies,  Inc.,  a Nevada corporation (the
"Company"),  (OTC  BB:  XTME)  hereby  promises to pay DUTCHESS PRIVATE EQUITIES
FUND,  II,  L.P. (the "Holder") within the Maturity Date, or earlier, the Amount
of Ninety Thousand Dollars ($90,000) U.S., in such amounts, at such times and on
such  terms  and  conditions  as  are  specified  herein  (this  "Note").

Article  1          Method  of  Payment

     Payments  made  by  the  Company  in  satisfaction  of  this  Note  (each a
"Payment,"  and  collectively,  the  "Payments")  shall  be  made  from the next
available financing or available funds from sales of the Company.  Failure to do
so  will  constitute an Event of Default under this Agreement and the Holder may
immediately seek to take actions as described under Article 4 of this Agreement.

Article  2             RESERVED

Article  3             UNPAID  AMOUNTS

     In  the  event  that  on  the  Maturity  Date the Company has any remaining
amounts  unpaid  on  this  Note (the "Residual Amount"), shall cause an Event of
Default under this Agreement and the Holder may immediately seek to take actions
as  described  under  Article  4  of  this  Agreement.

Article  4          DEFAULTS  AND  REMEDIES

Section 4.1     Events of Default.  An "Event of Default" or "Default" occurs if
     (a)  the  Company does not make the Payment of the Face Amount of this Note
within  two  (2)  business  days  of  the  Maturity  Date,  as  applicable, upon
redemption  or  otherwise, (b) the Company, pursuant to or within the meaning of
any  Bankruptcy  Law  (as hereinafter defined):  (i) commences a voluntary case;
(ii)  consents  to the entry of an order for relief against it in an involuntary
case;  (iii) consents to the appointment of a Custodian (as hereinafter defined)
of  it  or  for  all  or substantially all of its property; (iv) makes a general
assignment  for  the  benefit  of  its  creditors;  or  (v) a court of competent
jurisdiction  enters  an  order or decree under any Bankruptcy Law that:  (A) is
for  relief against the Company in an involuntary case; (B) appoints a Custodian
of  the  Company  or for all or substantially all of its property; or (C) orders
the  liquidation of the Company, and the order or decree remains unstayed and in
effect  for  sixty (60) calendar days; (c) the Company's $0.001 par value common
stock (the "Common Stock") is suspended or is no longer listed on any recognized
exchange, including an electronic over-the-counter bulletin board, for in excess
of  two  (2) consecutive trading days; or (d) the registration statement for the
underlying  shares in the Investment Agreement does not remain effective for any
reason or (e) the Company fails to comply with the Articles of this Agreement as
outlined.  As used in this Article 4.1, the term "Bankruptcy Law" means Title 11
of  the United States Code or any similar federal or state law for the relief of
debtors.  The term "Custodian" means any receiver, trustee, assignee, liquidator
or  similar  official  under  any  Bankruptcy  Law.

     In  the  Event  of Default, the Holder may elect to secure a portion of the
Company's  assets  not to exceed 200% of the Face Amount of the Note, including,
but not limited to: accounts receivable, cash, marketable securities, equipment,
building  or  land or inventory.  The Holder may also elect to garnishee Revenue
from  the  Company  in  an  amount  that  will repay the Holder on the schedules
outlined  in  this  Agreement.

     In  the  Event  of  Default,  as outlined in this Agreement, the Holder can
exercise  its  right to increase the Face Amount of the Debenture by ten percent
(10%)  as an initial penalty and for each Event of Default under this Agreement.
In  addition,  the  Holder  may  elect  to  increase  the Face Amount by two and
one-half  percent  (2.5%)  per  month  paid  as  a  penalty for liquated damages
("Liquidated  Damages").  The  Liquated Damages will be compounded daily.  It is
the  intention  and  acknowledgement of both parties that the Liquidated Damages
not  be  deemed  as  interest.

In  the  event  of a Default , the Holder shall also have the right, but not the
obligation,  to  1)  switch  the  Residual  Amount to a three-year ("Convertible
Maturity  Date"),  10%  interest  bearing  convertible  debenture  at  the terms
described in Article 4.2 (the "Convertible Debenture"). At such time of Default,
the  Convertible  Debenture  shall  be  considered  closed ("Convertible Closing
Date").  If  the  Holder chooses to convert the Residual Amount to a Convertible
Debenture,  the Company shall have twenty (20) business days after notice of the
same  (the  "Notice  of Convertible Debenture") to file a registration statement
covering  an  amount  of  shares  equal  to  300%  of  the Residual Amount. Such
registration  statement  shall be declared effective under the Securities Act of
1933,  as  amended  (the  "Securities  Act"),  by  the  Securities  and Exchange
Commission  (the  "Commission")  within 40 business days of the date the Company
files such Registration Statement.   In the event the Company does not file such
registration  statement  within  twenty  (20)  business  days  of  the  Holder's
request,  or such registration statement is not declared by the Commission to be
effective  under the Securities Act within the time period described above , the
Residual  Amount  shall increase by $1,000 per day.  In the event the Company is
given the option for accelerated effectiveness of the registration statement, it
agrees  that it shall cause such registration statement to be declared effective
as  soon  as reasonably practicable.  In the event that the Company is given the
option  for accelerated effectiveness of the registration statement, but chooses
not  to  cause  such  registration  statement  to  be declared effective on such
accelerated  basis,  the  Residual  Amount  shall  increase  by  $1,000  per day
commencing  on  the  earliest date as of which such registration statement would
have  been  declared to be effective if subject to accelerated effectiveness; or
2)  the  Holder  may  increase  the  Payment Amount described under Article 1 to
fulfill  the  repayment  of the Residual Amount.  The Company shall provide full
cooperation  to  the  Holder in directing funds owed to the Holder on any Put to
the  Investor.    The  Company agrees to diligently carry out the terms outlined
in  the  Investment Agreement for delivery of any such shares.  In the event the
Company  is not diligently fulfilling its obligation to direct funds owed to the
Holder  from  Puts  to the Investor, as reasonably determined by the Holder, the
Holder  may,  after  giving the Company two (2) business days' advance notice to
cure  the  same,  elect to increase the Residual Amount of the Note by 2.5% each
day,  compounded  daily.

     Article  4.2  Conversion  Privilege

(a)     The  Holder  shall  have  the right to convert the Convertible Debenture
into  shares  of Common Stock at any time following the Convertible Closing Date
which  is  before  the  close of business on the Convertible Maturity Date.  The
number of shares of Common Stock issuable upon the conversion of the Convertible
     Debenture  shall  be  determined pursuant to Article 4.3, but the number of
shares  issuable shall be rounded up or down, as the case may be, to the nearest
whole  share.

(b)     The Convertible Debenture may be converted, whether in whole or in part,
     at  any  time  and  from  time  to  time.

(c)     In  the  event  all  or any portion of the Convertible Debenture remains
outstanding  on the Convertible Maturity Date (the "Debenture Residual Amount"),
the  unconverted  portion  of  such  Convertible Debenture will automatically be
converted  into  shares  of Common Stock on such date in the manner set forth in
Article  4.3.

     Article  4.3  Conversion  Procedure.

     The Residual Amount may be converted, in whole or in part any time and from
time  to time, following the Convertible Closing Date.  Such conversion shall be
effectuated  by  surrendering  to  the Company, or its attorney, the Convertible
Debenture  to  be  converted together with a facsimile or original of the signed
notice  of  conversion  (the  "Notice  of  Conversion").   The date on which the
Notice  of Conversion is effective ("Conversion Date") shall be deemed to be the
date on which the Holder has delivered to the Company a facsimile or original of
the  signed  Notice  of  Conversion,  as  long  as  the  original  Convertible
Debenture(s)  to  be  converted  are  received  by  the  Company within five (5)
business  days thereafter.  At such time that the original Convertible Debenture
has  been received by the Company, the Holder can elect  whether a reissuance of
the  Convertible  Debenture  is warranted, or whether the Company can retain the
Convertible  Debenture  as  to  a  continual  conversion  by  the  Holder.
Notwithstanding  the  above,  any Notice of Conversion received by 4:00 P.M. EST
shall  be deemed to have been received the following business day (receipt being
via  a  confirmation  of  the  time  such facsimile to the Company is received).

(a)     Common  Stock  to  be Issued.     Upon the conversion of any Convertible
Debentures,  and  upon  receipt by the Company or its attorney of a facsimile or
original of the Holder's signed Notice of Conversion, the Company shall instruct
     its  transfer agent to issue stock certificates without restrictive legends
or  stop  transfer instructions, if at that time the aforementioned registration
statement  described  in Article 4.1 has been declared effective (or with proper
restrictive  legends  if the registration statement has not as yet been declared
effective), in such denominations to be specified at conversion representing the
number  of  shares of Common Stock issuable upon such conversion, as applicable.
In  the event that the Debenture is aged one year and deemed sellable under Rule
144, the Company shall, upon a Notice of Conversion, instruct the transfer agent
to issue free trading certificates without restrictive legends, subject to other
applicable  securities  laws.  The  Company  is responsible to provide all costs
associated  with  the  issuance  of the shares, including but not limited to the
opinion  letter,  FedEx  of the certificates and any other costs that arise. The
Company  shall  act  as  registrar  and  shall  maintain  an  appropriate ledger
containing the necessary information with respect to each Convertible Debenture.
The  Company  warrants that no instructions, other than these instructions, have
been  given  or  will  be  given to the transfer agent and that the Common Stock
shall  otherwise  be freely resold, except as may be set forth herein or subject
to  applicable  law.

(b)     Conversion  Rate.  Holder  is entitled to convert the Debenture Residual
Amount , plus accrued interest, anytime following the Convertible Maturity Date,
     at  the  lesser  of  (i) 75% of the average of the lowest closing bid price
during  the  fifteen  (15)  trading  days  immediately preceding the Convertible
Maturity  Date  or  (ii) 75% of the lowest bid price for the twenty (20) trading
days  immediately  preceding  the  Convertible  Maturity Date ("Fixed Conversion
Price").   No  fractional  shares or scrip representing fractions of shares will
be  issued  on conversion, but the number of shares issuable shall be rounded up
or  down,  as  the  case  may  be,  to  the  nearest  whole  share.

(c)     Nothing  contained  in  the  Convertible  Debenture  shall  be deemed to
establish  or  require the payment of interest to the Holder at a rate in excess
of  the  maximum rate permitted by governing law.  In the event that the rate of
interest  required  to  be  paid exceeds the maximum rate permitted by governing
law,  the rate of interest required to be paid thereunder shall be automatically
reduced  to  the  maximum rate permitted under the governing law and such excess
shall  be  returned  with  reasonable  promptness  by the Holder to the Company.

(d)     It  shall  be the Company's responsibility to take all necessary actions
and  to  bear  all  such  costs  to  issue  the Common Stock as provided herein,
including  the  responsibility and cost for delivery of an opinion letter to the
transfer  agent,  if  so  required.  Holder shall be treated as a shareholder of
record  on  the  date  Common Stock is issued to the Holder. If the Holder shall
designate  another  person  as  the  entity  in  the  name  of  which  the stock
certificates  issuable  upon  conversion  of the Convertible Debenture are to be
issued  prior  to the issuance of such certificates, the Holder shall provide to
the  Company evidence that either no tax shall be due and payable as a result of
such  transfer  or  that  the applicable tax has been paid by the Holder or such
person. Upon surrender of any Convertible Debentures that are to be converted in
     part,  the  Company  shall  issue to the Holder a new Convertible Debenture
equal  to  the  unconverted  amount,  if  so requested in writing by the Holder.

(e)     Within  five  (5)  business  days  after  receipt  of  the documentation
referred  to  above in Article 4.2, the Company shall deliver a certificate, for
the number of shares of Common Stock issuable upon the conversion.  In the event
     the  Company  does  not  make delivery of the Common Stock as instructed by
Holder  within  five  (5)  business days after the Conversion Date, then in such
event the Company shall pay to the Holder one percent (1%) in cash of the dollar
value  of  the  Debenture  Residual  Amount  remaining  after  said  conversion,
compounded  daily, per each day after the fifth (5th) business day following the
Conversion  Date  that  the  Common  Stock  is  not  delivered to the Purchaser.

           The Company acknowledges that its failure to deliver the Common Stock
within five (5) business days after the Conversion Date will cause the Holder to
suffer  damages  in an amount that will be difficult to ascertain.  Accordingly,
the  parties  agree  that it is appropriate to include in this  Note a provision
for  liquidated  damages  The  parties acknowledge and agree that the liquidated
damages  provision  set forth in this section represents the parties' good faith
effort  to quantify such damages and, as such, agree that the form and amount of
such  liquidated  damages are reasonable and will not constitute a penalty.  The
payment of liquidated damages shall not relieve the Company from its obligations
to deliver the Common Stock pursuant to the terms of this Convertible Debenture.

(f)     The  Company  shall  at  all  times reserve (or make alternative written
arrangements  for  reservation or contribution of shares) and have available all
Common  Stock necessary to meet conversion of the Convertible Debentures  by the
Holder  of  the entire amount of Convertible Debentures then outstanding. If, at
any time the Holder submits a Notice of Conversion and the Company does not have
     sufficient  authorized  but unissued shares of Common Stock (or alternative
shares  of  Common  Stock  as may be contributed by stockholders of the Company)
available  to  effect,  in  full,  a conversion of the Convertible Debentures (a
"Conversion  Default,"  the date of such default being referred to herein as the
"Conversion  Default  Date"),  the  Company shall issue to the Holder all of the
shares  of  Common Stock which are available, and the Notice of Conversion as to
any  Convertible  Debentures  requested  to  be converted but not converted (the
"Unconverted  Convertible Debentures"), may be deemed null and void upon written
notice  sent  by the Holder to the Company.  The Company shall provide notice of
such  Conversion  Default  ("Notice  of  Conversion  Default") to the Holder, by
facsimile  within  three  (3)  business  days of such default (with the original
delivered  by  overnight  mail  or  two  day courier), and the Holder shall give
notice  to  the Company by facsimile within five (5) business days of receipt of
the  original  Notice  of  Conversion  Default  (with  the original delivered by
overnight  mail or two day courier) of its election to either nullify or confirm
the  Notice  of  Conversion.

     The  Company  agrees  to  pay  the Holder payments for a Conversion Default
("Conversion  Default  Payments")  in  the amount of (N/365), multiplied by .24,
multiplied  by the initial issuance price of the outstanding or tendered but not
converted  Convertible  Debentures  held  by the Holder, where N = the number of
days  from  the  Conversion  Default Date to the date (the "Authorization Date")
that  the  Company  authorizes  a sufficient number of shares of Common Stock to
effect  conversion  of  all remaining Convertible Debentures.  The Company shall
send  notice  ("Authorization  Notice")  to the Holder that additional shares of
Common  Stock  have  been  authorized, the Authorization Date, and the amount of
Holder's  accrued  Conversion  Default Payments.  The accrued Conversion Default
shall  be  paid  in  cash  or  shall  be  convertible  into  Common Stock at the
conversion  rate set forth in the first sentence of this paragraph, upon written
notice  sent  by  the  Holder  to the Company, which Conversion Default shall be
payable  as follows:  (i) in the event the Holder elects to take such payment in
cash,  cash  payments shall be made to the Holder  by the fifth (5th) day of the
following  calendar  month,  or  (ii)  in  the  event Holder elects to take such
payment  in  stock, the Holder may convert such payment amount into Common Stock
at  the conversion rate set forth in the first sentence of this paragraph at any
time  after  the  fifth  (5th)  day of the calendar month following the month in
which  the  Authorization  Notice  was  received,  until  the  expiration of the
mandatory  three  (3)  year  conversion  period.

     The  Company  acknowledges that its failure to maintain a sufficient number
of authorized but unissued shares of Common Stock to effect in full a conversion
of  the  Convertible  Debentures  will  cause the Holder to suffer damages in an
amount that will be difficult to ascertain.  Accordingly, the parties agree that
it  is  appropriate  to  include  in  this  Agreement a provision for liquidated
damages.  The  parties  acknowledge  and  agree  that  the  liquidated  damages
provision set forth in this section represents the parties' good faith effort to
quantify  such  damages  and,  as  such,  agree that the form and amount of such
liquidated  damages  are  reasonable  and  will  not  constitute a penalty.  The
payment of liquidated damages shall not relieve the Company from its obligations
to deliver the Common Stock pursuant to the terms of this Convertible Debenture.

(g)     If,  by  the  fifth  (5th) business day after the Conversion Date of any
portion of the Convertible Debentures to be converted (the "Delivery Date"), the
     transfer  agent  fails  for  any  reason  to  deliver the Common Stock upon
conversion  by the Holder and after such Delivery Date, the Holder purchases, in
an  open  market transaction or otherwise, shares of Common Stock (the "Covering
Shares")  solely  in  order to make delivery in satisfaction of a sale of Common
Stock  by the Holder (the "Sold Shares"), which delivery such Holder anticipated
to  make  using  the  Common  Stock  issuable  upon conversion (a "Buy-In"), the
Company  shall pay to the Holder, in addition to any other amounts due to Holder
pursuant  to  this  Convertible  Debenture,  and not in lieu thereof, the Buy-In
Adjustment  Amount  (as  defined  below).  The "Buy In Adjustment Amount" is the
amount  equal  to  the  excess, if any, of (x) the Holder's total purchase price
(including  brokerage  commissions, if any) for the Covering Shares over (y) the
net  proceeds  (after brokerage commissions, if any) received by the Holder from
the sale of the Sold Shares.  The Company shall pay the Buy-In Adjustment Amount
to  the  Holder  in immediately available funds within five (5) business days of
written  demand  by the Holder.  By way of illustration and not in limitation of
the  foregoing,  if  the  Holder purchases shares of Common Stock having a total
purchase  price  (including  brokerage commissions) of $11,000 to cover a Buy-In
with  respect to shares of Common Stock it sold for net proceeds of $10,000, the
Buy-In Adjustment Amount which the Company will be required to pay to the Holder
will  be  $1,000.

     (h)     The  Company shall defend, protect, indemnify and hold harmless the
Holder  and  all  of  its shareholders, officers, directors, employees, counsel,
and  direct  or  indirect  investors and any of the foregoing person's agents or
other  representatives  (including,  without  limitation,  those  retained  in
connection  with the transactions contemplated by this Agreement) (collectively,
the  "Article  4.3(h) Indemnitees") from and against any and all actions, causes
of  action,  suits,  claims,  losses,  costs,  penalties,  fees, liabilities and
damages,  and expenses in connection therewith (irrespective of whether any such
Article  4.3(h)  Indemnitee  is  a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys' fees and disbursements
(the  "Article  4.3(h) Indemnified Liabilities"), incurred by any Article 4.3(h)
Indemnitee  as  a  result  of,  or  arising  out  of,  or  relating  to  (i) any
misrepresentation  or  breach  of  any  representation  or  warranty made by the
Company  in  the  Transaction  Documents or any other certificate, instrument or
document  contemplated  hereby  or  thereby,  (ii)  any  breach of any covenant,
agreement,  or  obligation of the Company contained in the Transaction Documents
or  any  other  certificate,  instrument,  or  document  contemplated  hereby or
thereby,  (iii) any cause of action, suit, or claim brought or made against such
Article  4.3(h) Indemnitee by a third party and arising out of or resulting from
the  execution,  delivery,  performance,  or  enforcement  of  the  Transaction
Documents  or any other certificate, instrument, or document contemplated hereby
or thereby, (iv) any transaction financed or to be financed in whole or in part,
directly  or  indirectly,  with the proceeds of the issuance of the Common Stock
underlying  the  Convertible  Debenture ("Securities"), or (v) the status of the
Holder or holder of the Securities as an investor in the Company, except insofar
as  any  such  misrepresentation, breach or any untrue statement, alleged untrue
statement,  omission,  or  alleged  omission  is  made  in  reliance upon and in
conformity  with  written  information furnished to the Company by the Holder or
the  Investor which is specifically intended by the Holder or the Investor to be
relied  upon  by  the  Company, including for use in the preparation of any such
registration  statement,  preliminary  prospectus, or prospectus, or is based on
illegal trading of the Common Stock by the Holder or the Investor. To the extent
that  the  foregoing  undertaking  by  the  Company may be unenforceable for any
reason,  the  Company  shall  make  the  maximum contribution to the payment and
satisfaction  of  each  of the Indemnified Liabilities that is permissible under
applicable  law.  The indemnity provisions contained herein shall be in addition
to  any  cause  of  action  or  similar  rights  the  Holder  may  have, and any
liabilities  the  Holder  may  be  subject  to.

Article  5           REGISTRATION

     The  Company agrees not to file any registration statement (including those
on Form S-8) without the prior written approval of the Holder.  In the event the
Company  does  file a registration statement without the express written consent
of  the Holder, it shall be deemed an Event of Default, and the Holder may elect
to  take  actions  under  Article  4.  The Company must also issue the Holder an
equal  number  of Shares included in the Registration Statement as an additional
penalty  for  liquidated  damages.

Article  6          MERGERS

          The  Company  shall  not consolidate or merge into, or transfer all or
substantially  all  of  its assets to, any person, unless such person assumes in
writing  the  obligations  of  the Company under this Note and immediately after
such  transaction  no  Event  of  Default  exists.  Any  reference herein to the
Company  shall  refer  to  such  surviving  or  transferee  corporation  and the
obligations of the Company shall terminate upon such written assumption. Failure
to do so will constitute an Event of Default under this Agreement and the Holder
may  immediately  seek  to  take  actions  as  described under Article 4 of this
Agreement.

Article  7             ADDITIONAL  FINANCING

          The  Company  will  not enter into any additional financing agreements
without  prior  expressed  written  consent  from the Holder, which shall not be
unreasonably  withheld.  In  the  Event  the  Company  does  enter  into another
financing  arrangement  without  written  consent it will constitute an Event of
Default under this Agreement and the Holder may immediately seek to take actions
as  described  under  Article  4 of this Agreement. Proceeds from any additional
Financing  will  immediately  be  used  toward  a  Payment.

Article  8             NOTICE

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

If  to  the  Company:

Xtreme  Companies,  Inc.
11782  Western  Avenue,  Unit  18
Stanton,  CA  90680
Telephone:  714-895-0944
Facsimile:  714-895-7139

If  to  the  Holder:

     Dutchess  Private  Equities  Fund,  II,  LP
     Douglas  Leighton
     312  Stuart  Street,  Third  Floor
     Boston,  MA  02116
     (617)  960-3570

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

Article  9            TIME
     Where  this  Note  authorizes  or  requires  the  payment  of  money or the
performance of a condition or obligation on a Saturday or Sunday or a holiday in
which  the United States Stock Markets ("US Markets") are closed ("Holiday"), or
authorizes or requires the payment of money or the performance of a condition or
obligation  within,  before  or  after  a period of time computed from a certain
date,  and such period of time ends on a Saturday or a Sunday or a Holiday, such
payment  may be made or condition or obligation performed on the next succeeding
business  day,  and  if the period ends at a specified hour, such payment may be
made  or condition performed, at or before the same hour of such next succeeding
business  day,  with  the  same  force  and  effect  as  if made or performed in
accordance  with  the  terms of this Note.  A "business day" shall mean a day on
which  the  US  Markets  are  open  for  a  full  day  or  half  day of trading.

Article  10            NO  ASSIGNMENT
     This  Note  shall  not  be  assigned.

Article  11           RULES  OF  CONSTRUCTION.
     In  this Note, unless the context otherwise requires, words in the singular
number  include the plural, and in the plural include the singular, and words of
the  masculine gender include the feminine and the neuter, and when the tense so
indicates,  words of the neuter gender may refer to any gender.  The numbers and
titles  of  sections  contained  in  the  Note  are  inserted for convenience of
reference  only,  and  they  neither form a part of this Note nor are they to be
used  in  the  construction or interpretation hereof.  Wherever, in this Note, a
determination of the Company is required or allowed, such determination shall be
made  by  a majority of the Board of Directors of the Company and, if it is made
in  good  faith,  it  shall  be  conclusive and binding upon the Company and the
Holder.

Article  12            GOVERNING  LAW
     The  validity,  terms,  performance  and  enforcement of this Note shall be
governed  and construed by the provisions hereof and in accordance with the laws
of  the  Commonwealth  of  Massachusetts  applicable  to  agreements  that  are
negotiated,  executed,  delivered  and  performed  solely in the Commonwealth of
Massachusetts.

Article  13          LITIGATION

The  parties  to  this  agreement  will  submit  all disputes arising under this
agreement  to arbitration in Boston, Massachusetts before a single arbitrator of
the  American Arbitration Association ("AAA").  The arbitrator shall be selected
by  application  of the rules of the AAA, or by mutual agreement of the parties,
except that such arbitrator shall be an attorney admitted to practice law in the
Commonwealth  of  Massachusetts.  No  party to this agreement will challenge the
jurisdiction  or  venue  provisions  as  provided  in  this  section.

Article  14             THRESHOLD  AMOUNT

          The  Company  of  an  aggregate amount of one dollar ($1) in financing
("Threshold  Amount")  from  Holder or another source, including exercise of any
existing  Warrants  ,  the  Company  shall pay back 100% of the amount above the
Threshold  Amount  to  the  Repayment  of  the  Note.  The payment shall be made
regardless  of  whether  a  payment  is  due  at  the time the Company reach the
Threshold  Amount,  and for each financing.  Failure to do so will constitute an
Event  of  Default  under  this Agreement and the Holder may immediately seek to
take  actions  as  described  under  Article  4  of  this  Agreement.

Article  15             RESERVED

Article  16             INDEMNIFICATION

     In  consideration  of the Holder's execution and delivery of this Agreement
and  the  acquisition  and  funding  by  the Holder of the Note hereunder and in
addition  to  all  of  the  Company's  other  obligations  under  the  documents
contemplated  hereby,  the  Company  shall  defend,  protect, indemnify and hold
harmless the Holder and all of its shareholders, officers, directors, employees,
counsel,  and  direct  or  indirect  investors and any of the foregoing person's
agents  or  other representatives (including, without limitation, those retained
in  connection  with  the  transactions  contemplated  by  this  Agreement)
(collectively,  the  "Indemnities") from and against any and all actions, causes
of  action,  suits,  claims,  losses,  costs,  penalties,  fees, liabilities and
damages,  and expenses in connection therewith (irrespective of whether any such
Indemnitee  is  a  party  to  the  action for which indemnification hereunder is
sought),  and  including  reasonable  attorneys'  fees  and  disbursements  (the
"Indemnified  Liabilities"  ),  incurred  by  any  Indemnitee as a result of, or
arising  out  of,  or  relating  to  (i)  any misrepresentation or breach of any
representation  or  warranty  made  by  the  Company  in  the Note, or any other
certificate,  instrument  or  document  contemplated  hereby or thereby (ii) any
breach  of any covenant, agreement or obligation of the Company contained in the
Note  or  any  other certificate, instrument or document  contemplated hereby or
thereby,  except  insofar  as  any  such misrepresentation, breach or any untrue
statement,  alleged  untrue  statement,  omission or alleged omission is made in
reliance  upon  and  in  conformity  with  written  information furnished to the
Company  by,  or  on behalf of, the Holder or is based on illegal trading of the
Common  Stock by the Holder. To the extent that the foregoing undertaking by the
Company  may be unenforceable for any reason, the Company shall make the maximum
contribution  to  the  payment  and  satisfaction  of  each  of  the Indemnified
Liabilities  that  is permissible under applicable law. The indemnity provisions
contained  herein  shall be in addition to any cause of action or similar rights
the  Holder  may  have,  and  any  liabilities  the  Holder  may  be subject to.

Article  17          RESERVED

Article  18            USE  OF  PROCEEDS

The  Company  will  use proceeds for general corporate working capital purposes.
This  shall  not  to  be  used  to  pay  down  long-term  debt  to any financial
institution.  The  use  of  proceeds  is  attached  hereto  as  Exhibit  B  and
incorporated  by  reference.

Article  19            SENIOR  OBLIGATION

     The  Company  shall  cause  this  Note  and  all  other  existing Notes and
Debentures with the Holder ("Holder's Debt") to be senior in right of payment to
all  other  Indebtedness  of  the  Company.

     Any  misrepresentations  shall  be considered a breach of contract and will
constitute  an  Event  of  Default  under  this  Agreement  and  the  Holder may
immediately seek to take actions as described under Article 4 of this Agreement.
                                      *****

IN WITNESS WHEREOF, the Company has duly executed this Note as of the date first
written  above.
                         XTREME  COMPANIES,  INC.

                         By     /s/  Kevin  Ryan
                                ----------------
                         Name:       Kevin  Ryan
                         Title:       Chief  Executive  Officer

                              DUTCHESS  PRIVATE  EQUITIES  FUND,  II,  L.P.
                              BY  ITS  GENERAL  PARTNER  DUTCHESS
                              CAPITAL  MANAGEMENT,  LLC

                         By:_/s/  Douglas  Leighton
                         Name:  Douglas  H.  Leighton
                         Title:  A  Managing  MemberExhibit  10.26

          BUSINESS  SERVICES  AGREEMENT

THIS  AGREEMENT  ("AGREEMENT")  DATED  MARCH  1,  2005  IS BY AND BETWEEN XTREME
COMPANIES,  INC.,  A NEVADA CORPORATION (THE "COMPANY" ) AND DUTCHESS  ADVISORS,
LLC  A  CONNECTICUT  LLC  LOCATED  AT 312 STUART ST., 3RD FLOOR, BOSTON, MA (THE
"CONSULTANT").

WHEREAS,  the  Company  is  engaged  in  manufacturing and selling boats through
Xtreme  Companies  and  Challenger  Offshore.
WHEREAS,  Consultant  is  engaged  in  providing  business  services  for
publicly-traded  companies.
WHEREAS,  the  Company desires to obtain the benefits of Consultant's experience
and  know-how,  and accordingly, the Company has offered to engage Consultant to
render  consulting  and  advisory  services  to  the  Company  on  the terms and
conditions  hereinafter  set  forth.
WHEREAS,  Consultant  desires  to  accept  such  engagement  upon such terms and
conditions  hereinafter  set  forth.

NOWTHEREFORE  in  consideration  of the foregoing, the parties agree as follows:

SECTION  1.               SERVICES  RENDERED
                          ------------------

Consultant  shall  (i)  advise  the Company with respect to operations, business
strategy,  capital  structure  and  other  matters pertaining to the Business as
shall  be  specified  from  time  to time by the Company's President and/or such
other  officer(s)  as  the  Company's Board of Directors shall designate to have
principal  responsibility  for  the operation of the Business and (ii) assist in
reviewing  material  transactions.
SECTION  2.               COMPENSATION
                          ------------

For  services  rendered under Section 1, Consultant shall be paid the following,
by  the  Company:

(a)  CONSULTING FEES. In consideration for the availability of Consultant during
the  term  hereunder  and  the  services  rendered  pursuant  to this Agreement,
promptly  upon execution of this Agreement, the Company will issue to Consultant
as payment 2,229,101 fully paid and non-assessable shares of Common Stock of the
Company  (the  "Shares").

(b)  REIMBURSEMENT OF EXPENSES. The Company shall reimburse Consultant for those
reasonable  and  necessary  out-of-pocket expenses (including but not limited to
travel,  transportation,  lodging,  meals  etc.) which have been approved by the
President  of the Company prior to their incurrence and which have been incurred
by  Consultant  in  connection  with  the  rendering  of services hereunder. Any
reimbursement  to  be made by the Company pursuant to this Section shall be made
following submission to the Company by Consultant of reasonable documentation of
the  expenses  incurred.

SECTION  3.               RELATIONSHIP  OF  PARTIES
                          -------------------------

     This  Agreement  shall not constitute an employer-employee relationship. It
is  the  intention  of  each  party  that  Consultant  shall  be  an independent
contractor  and  not  an  employee  of  the  Company.  All  compensation paid to
Consultant  shall  constitute earnings to Consultant and be classified as normal
income.  The Company shall not withhold any amounts therefrom as U.S. federal or
state  income tax withholding, or as employee contribution to Social Security or
any  other  employer  withholding  applicable  under  state  or  federal  law.

SECTION  4.               TERM
                          ----

     The  term  of this Agreement shall be twenty-four (24) months commencing on
the  date  and  year  first  above  written.

SECTION  5.               EXCLUSIVITY
                          -----------

The  Company  shall  deem  Consultant  to  be its exclusive advisor for services
performed  as  outlined  under  SECTION  1.  of this Agreement. The Company also
agrees it will not retain other agents, brokers, bankers, consultants, advisors,
finders  or other parties for the purpose of performing any of those services as
outlined  under  SECTION  1.  of  this  Agreement,  unless waived in writing, by
Consultant.

SECTION  6.               TERMINATION
                          -----------

This Agreement may be terminated by either party with cause only, and only under
the  following  circumstances;  when  either  party  (i)  knowing  and willfully
breaches  any  term(s)  of this Agreement, or (ii) knowing and willfully commits
any  act(s) related to the normal conduct of business which are unlawful, or any
serious  criminal action as promulgated pursuant to local, state, or federal law
or  laws  governing  the  sovereignty  of  Israel.

Termination  of  the Agreement does not relieve the Company of its obligation to
remunerate Consultant pursuant to the terms of this Agreement. Upon termination,
any  outstanding remuneration due Consultant for services rendered shall be paid
within  3  (three)  business  days  following  termination.

SECTION  7.               INDEMNIFICATION
                          ---------------

(a)               In  consideration of Consultant' execution and delivery of the
this  Agreement  in
addition  to  all  of  The Company's other obligations under this Agreement, The
Company shall defend, protect, indemnify and hold harmless Consultant and all of
its  officers,  directors, employees and direct or indirect investors and any of
the  foregoing  person's  agents  or  other  representatives (including, without
limitation,  those  retained in connection with the transactions contemplated by
this  Agreement)  (collectively,  the "CONSULTANT INDEMNITEES") from and against
any  and all actions, causes of action, suits, claims, losses, costs, penalties,
fees,  liabilities  and  damages,  and  expenses  in  connection  therewith
(irrespective  of whether any such Indemnitee is a party to the action for which
indemnification  hereunder  is sought), and including reasonable attorneys' fees
and  disbursements  (the  "CONSULTANT INDEMNIFIED LIABILITIES'), incurred by any
Indemnitee  as  a  result  of,  or  arising  out  of,  or  relating  to  (i) any
misrepresentation  or  breach  of  any  representation  or  warranty made by The
Company  in  this  Agreement  or  any  other certificate, instrument or document
contemplated  hereby  or  thereby  (ii) any breach of any covenant, agreement or
obligation  of The Company contained in this Agreement or any other certificate,
instrument  or  document  contemplated  hereby  or  thereby,  (iii) any cause of
action,  suit  or claim brought or made against such Indemnitee by a third party
and  arising  out  of  or resulting from the execution, delivery, performance or
enforcement  of  this Agreement or any other certificate, instrument or document
contemplated  hereby  or  thereby, except insofar as any such misrepresentation,
breach  or  any  untrue statement, alleged untrue statement, omission or alleged
omission  is  made  in  reliance upon and in conformity with written information
furnished  to  Consultant  by  The  Company.  To  the  extent that the foregoing
undertaking  by  The  Company  may  be unenforceable for any reason, The Company
shall  make  the maximum contribution to the payment and satisfaction of each of
the  Consultant  Indemnified  Liabilities  which is permissible under applicable
law. The indemnity provisions contained herein shall be in addition to any cause
of  action or similar rights Consultant may have, and any liabilities Consultant
may  be  subject  to.

(b)     In  consideration  of  The  Company's execution and delivery of the this
Agreement and in addition to all of the Consultant' other obligations under this
     Agreement,  Consultant  shall  defend, protect, indemnify and hold harmless
The  Company  and all of its subsidiaries, shareholders, officers, directors and
employees  and  any  of  the  foregoing person's agents or other representatives
(including,  without  limitation,  those  retained  in  connection  with  the
transactions  contemplated  by  this  Agreement) (collectively, the "THE COMPANY
INDEMNITEES")  from  and  against  any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such The Company Indemnitee is
a  party  to  the  action  for  which  indemnification hereunder is sought), and
including  reasonable  attorneys'  fees  and  disbursements  (the  "THE  COMPANY
INDEMNIFIED  LIABILITIES'),  incurred  by any The Company Indemnitee as a result
of, or arising out of, or relating to (i) any misrepresentation or breach of any
representation  or  warranty  made  by  Consultant in the Agreement or any other
certificate,  instrument  or  document  contemplated hereby or thereby, (ii) any
breach  of  any covenant, agreement or obligation of Consultant contained in the
Agreement  or  any other certificate, instrument or document contemplated hereby
or  thereby,  (iii)  any  cause of action, suit or claim brought or made against
such  The  Company  Indemnitee  by a third party and arising out of or resulting
from the execution, delivery, performance or enforcement of the Agreement or any
other  certificate,  instrument  or document contemplated hereby or thereby, and
except  insofar  as  any such misrepresentation, breach or any untrue statement,
alleged  untrue statement, omission or alleged omission is made in reliance upon
and  in  conformity  with  written  information  furnished  to  The  Company  by
Consultant.  To  the  extent that the foregoing undertaking by Consultant may be
unenforceable  for any reason, Consultant shall make the maximum contribution to
the  payment and satisfaction of each of the The Company Indemnified Liabilities
which  is  permissible  under applicable law. The indemnity provisions contained
herein shall be in addition to any cause of action or similar rights The Company
may  have,  and  any  liabilities  The  Company  may  be  subject  to.

(c)     Indemnification  Procedure.  Any party entitled to indemnification under
        --------------------------
this  Section  (an  "INDEMNIFIED  PARTY")  will  give  written  notice  to  the
indemnifying  party  of  any matters giving rise to a claim for indemnification;
provided, that the failure of any party entitled to indemnification hereunder to
give  notice  as provided herein shall not relieve the indemnifying party of its
obligations  under this Section except to the extent that the indemnifying party
is  actually  prejudiced  by  such  failure  to give notice. In case any action,
proceeding  or claim is brought against an indemnified party in respect of which
indemnification is sought hereunder, the indemnifying party shall be entitled to
participate  in  and,  unless  in  the  reasonable  judgment  of  counsel to the
indemnified  party  a conflict of interest between it and the indemnifying party
may  exist  with  respect  to  such  action,  proceeding or claim, to assume the
defense  thereof  with counsel reasonably satisfactory to the indemnified party.
In  the  event  that the indemnifying party advises an indemnified party that it
will contest such a claim for indemnification hereunder, or fails, within thirty
(30)  days  of receipt of any indemnification notice to notify, in writing, such
person  of  its  election  to defend, settle or compromise, at its sole cost and
expense,  any  action,  proceeding  or claim (or discontinues its defense at any
time  after  it  commences such defense), then the indemnified party may, at its
option,  defend,  settle or otherwise compromise or pay such action or claim. In
any  event,  unless and until the indemnifying party elects in writing to assume
and  does  so  assume  the  defense of any such claim, proceeding or action, the
indemnified party's costs and expenses arising out of the defense, settlement or
compromise  of  any  such action, claim or proceeding shall be losses subject to
indemnification  hereunder. The indemnified party shall cooperate fully with the
indemnifying  party in connection with any settlement negotiations or defense of
any  such  action  or  claim  by the indemnifying party and shall furnish to the
indemnifying party all information reasonably available to the indemnified party
which  relates  to  such  action or claim. The indemnifying party shall keep the
indemnified party fully apprised at all times as to the status of the defense or
any  settlement  negotiations  with  respect  thereto. If the indemnifying party
elects  to  defend any such action or claim, then the indemnified party shall be
entitled  to  participate in such defense with counsel of its choice at its sole
cost  and expense. The indemnifying party shall not be liable for any settlement
of  any  action, claim or proceeding effected without its prior written consent.
Notwithstanding anything in this Section to the contrary, the indemnifying party
shall  not,  without  the  indemnified  party's prior written consent, settle or
compromise  any  claim  or  consent  to entry of any judgment in respect thereof
which  imposes  any future obligation on the indemnified party or which does not
include,  as  an  unconditional  term thereof, the giving by the claimant or the
plaintiff to the indemnified party of a release from all liability in respect of
such  claim.  The  indemnification  required  by  this  Section shall be made by
periodic  payments  of  the amount thereof during the course of investigation or
defense, as and when bills are received or expense, loss, damage or liability is
incurred,  within  ten  (10)  Business  Days  of  written  notice thereof to the
indemnifying party so long as the indemnified party irrevocably agrees to refund
such  moneys if it is ultimately determined by a court of competent jurisdiction
that  such  party  was not entitled to indemnification. The indemnity agreements
contained  herein  shall  be  in  addition to (a) any cause of action or similar
rights  of  the  indemnified party against the indemnifying party or others, and
(b)  any  liabilities  the  indemnifying  party  may  be  subject  to.

SECTION  8.               GOVERNING  LAW
                          --------------

     Any  controversy,  claim or dispute arising from the interpretation of this
Agreement,  or  breach  thereof,  shall  settled by arbitration in the County of
Suffolk,  Commonwealth of Massachusetts, USA in accordance with the rules of the
American  Arbitration  Association  there  in  effect,  except  that the parties
thereto  shall  have  any  right  to discovery as would permitted by the Federal
Rules  of  Civil  Procedure.  The  prevailing  Party  shall  be  entitled  to
reimbursement  of  actual costs and attorney's fees from the arbitration and the
decision  of  the  Arbitrator(s)  shall  be  final.

SECTION  9               ASSIGNABILITY.
                         -------------

     This  Agreement  and the rights and obligations of the parties hereto shall
bind  and  inure  to the benefit of Consultant and its legal representatives and
heirs  and  the  Company  and  any  successor  or  successors  of the Company by
reorganization,  merger,  or  consolidation  and  any  assignee  of  all  or
substantially  all  of  its  business and properties, but, except as to any such
legal  representatives  or  heirs  of Consultant or successor or assignee of the
Company,  neither  this  Agreement  nor  any rights or benefits hereunder may be
assigned by the Company or the Executive.  Nothing in this Agreement, express or
implied, is intended to or shall confer upon any other person any right, benefit
or  remedy  of  any  nature  whatsoever  under  or  by reason of this Agreement.

SECTION  10.               ENTIRE  AGREEMENT
                           -----------------

     This  Agreement  constitutes  the  entire  agreement of the Company and the
Consultant  as  to  the subject matter hereof, superseding all prior written and
prior  or  contemporaneous  oral  understanding  or  agreements,  including  any
previous  agreements,  or  understandings  with  respect  to  the subject matter
covered  in  this Agreement.  This Agreement may not be modified or amended, nor
may  any  right  be  waived,  except by a writing which expressly refers to this
Agreement, states that it is intended to be a modification, amendment, or waiver
and  is  signed by both parties in the case of a modification or amendment or by
the  party  granting  the  waiver.  No  course of conduct or dealing between the
parties  and  no custom or trade usage shall be relied upon to vary the terms of
this  Agreement.  The  failure of a party to insist upon strict adherence to any
term  of  this  Agreement  on  any  occasion shall not be considered a waiver or
deprive  that  party  of the right thereafter to insist upon strict adherence to
that  term  or  any  other  term  of  this  Agreement.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
and  year  first  above  written.

BY  XTREME  COMPANIES

/s/  Kevin  Ryan
          Kevin  Ryan
          President

BY  DUTCHESS  ADVISORS,  LLC

/s/  Michael  Novielli
     Michael  Novielli
          Managing  Partner

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