Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Medicure Inc. - Exhibit 4u

EMPLOYMENT AGREEMENT

 THIS AGREEMENT made the 1st day of October, 2001.

BETWEEN:

      MEDICURE INC., 

  a corporation incorporated under the federal laws of Canada,

  (hereinafter referred to as the "Employer"), 

- and - 

      DAWSON REIMER, 

  of the City of Winnipeg, in the Province of Manitoba,

  (hereinafter referred to the "Employee"). 

                     WHEREAS
  the Employer is engaged in the Business;

                     AND
  WHEREAS the Employer desires to employ or to continue to employ the Employee
  in its Business, and the Employee desires to be so employed or to be so continued
  to be employed; 

                     NOW
  THEREFORE in consideration of the premises and of the mutual covenants herein
  contained, the parties hereto agree as follows: 

 1.                
   Definitions 

                     Capitalized
  terms used in this Agreement shall have the meanings set forth in Schedule A
  hereto.

 2.                
   Employment 

                     The
  Employer hereby agrees to employ the Employee for the purpose set forth in Schedule
  B attached hereto, and the Employee hereby accepts such employment, all on the
  terms and conditions herein set forth. 

	 3.                Commencement
      and Termination 
	 
	 	 (a)      	 Employment shall commence on the date set forth
        in Schedule B, and shall continue until this Agreement is terminated by
        either party hereto in accordance with the provisions hereof. 

 2

	 	 (b)      
	 Either party may terminate this Agreement
        at any time, without cause, on two weeks written notice to the other party
        or, in the case of termination by the Employer, payment of the Employee's
        salary for two weeks in lieu of such notice. The Employer may terminate
        this Agreement at any time for cause immediately upon notifying the Employee
        in writing to this effect. For purposes of this Agreement, "cause" shall
        include any breach of this Agreement by the Employee, receipt by the Employer
        of notice from any client or customer of the Employer that the performance
        of the Employee is unsuitable, or, subject to the Employer's duty to reasonably
        attempt to accommodate the Employee, in the event the Employee becomes
        "totally disabled". For certainty, "totally disabled" means the occurrence
        of: 

	 
	 	 	 (i)     
      
	 a court of competent jurisdiction making an order certifying the mental
      incompetency of the Employee, or appointing a committee or legal guardian
      to administer the estate of the Employee; or 
	 
	 	 	 (ii)      
	 the Employee being incapable of performing his normal responsibilities
      in connection with the operation of the business of the Employer, on a full-time
      basis or on a part-time basis, such incapacity being caused by disease,
      bodily injury, mental infirmity or drug or alcohol abuse and continuing
      for a period of 180 consecutive days. 
	 
	 	 (c)      
	 Notwithstanding paragraph (b) of this
        section 3, in the event the Employee has not already been employed by
        the Employer for at least three months, the first three months of employment
        under this Agreement shall be considered a probationary period, during
        which period such employment may be terminated by the Employer without
        notice and without payment in lieu of notice if the Employee's services
        are not satisfactory to the Employer. 

	 
	 	 (d)      
	 In the event the Employee seeks to terminate
        this Agreement but does not provide two weeks notice as required by paragraph
        (b) of this section 3, the Employer may recover an equivalent amount from
        the Employee in lieu of such notice by set off against any and all amounts
        then owing by the Employer to the Employee including, without limitation,
        vacation pay. 

	 
	 	 (e)      
	 In the event of any termination of employment
        under this Agreement for any reason whatsoever, the Employee acknowledges
        and agrees that the Employee will have no claim against the Employer for
        damages or otherwise except for accrued remuneration due and owing to
        the Employee as of the effective date of such termination. 

 3

	 	 (f)      	 Notwithstanding any other provision of this section
        3, this Agreement shall terminate immediately upon any termination of
        any contract which the Employer has entered into and which is referred
        to in Schedule B. 

	 
	 	 (g)      	 In the event of any termination of employment under
        this Agreement for any reason whatsoever, or upon the request of the Employer
        from time to time, the Employee shall immediately return to the Employer
        all materials, including all copies in whatever form, containing any Confidential
        Information which are in the Employee's possession or under the Employee's
        control, together with anything else that could provide access to any
        Confidential Information as well as all records or personal notes of any
        nature whatsoever prepared by the Employee and relating to work performed
        by the Employee while employed by the Employer, including all copies in
        whatever form as well as all other property of the Employer then in the
        possession or under the control of the Employee including, without limitation,
        all computer equipment (hardware, software, and documentation), all other
        equipment, all tools, all materials, all merchandise, and all promotional
        information of any nature whatsoever. 

 4.                
  Compensation 

                     The
  Employee's compensation shall be the amount calculated and paid in the manner
  set forth in Schedule B. 

 5.                
  General Duties 

                     During
  the period of employment of the Employee by the Employer, the Employee shall:

	 	 (a)      	 devote full working time and best efforts, judgment,
        skill, and ability to the performance of all duties as may be assigned
        to the Employee by the Employer, from time to time; 

	 
	 	 (b)      	 comply with all lawful instructions of the Employer
        as may be in effect from time to time, and abide by any and all rules,
        policies, and procedures enacted by the Employer and brought to the attention
        of the Employee as same may be in effect from time to time including,
        without limitation, those regarding attendance, professional conduct,
        and security; 

	 
	 	 (c)      	 reflect the highest standards of integrity, honesty,
        and responsibility in dealings with the Employer's or its Affiliates'
        clients, prospective clients, customers, prospective customers, suppliers,
        and employees; and 

	 
	 	 (d)      	 use his best efforts to faithfully, honestly, and
        diligently serve and endeavour to further the best interests of the Employer.
      

4

 6.                
   Confidential Information 

                     The
  Employee acknowledges that during the course of employment with the Employer
  the Employee may become aware of, see or receive copies of, have access to or
  become knowledgeable in respect of Confidential Information. The Employee acknowledges
  and agrees that the Employee shall not acquire any right, title or interest
  in or to any Confidential Information, by virtue of being employed by the Employer
  or otherwise, and that the Employer or its Affiliates, clients, customers or
  suppliers, as the case may be, owns the Confidential Information. 

 7.                
   Non-Disclosure of Confidential Information 

                     At
  all times during the Employee's employment with the Employer and at all times
  subsequent thereto, the Employee shall: 

	 	 (a)      	 keep in strictest confidence and trust all Confidential
        Information; 

	 
	 	 (b)      	 take all necessary precautions against unauthorized
        disclosure of any Confidential Information; 

	 
	 	 (c)      	 not directly or indirectly disclose, allow access
        to, transmit or transfer any Confidential Information to a third party;
        and 

	 
	 	 (d)      	 not copy or reproduce any Confidential Information
        except as may be reasonably required for the Employee to perform his duties
        for the Employer. 

                   For
  certainty, at all times during the Employee's employment with the Employer and
  all times subsequent thereto, the Employee acknowledges that he shall not disclose
  or use any Confidential Information in any manner whatsoever except as reasonably
  required for the Employee to perform his duties for the Employer. 

 8.                
  Developments 

                     The
  Employee agrees to be bound by the Employer's Developments Policy as set forth
  in Schedule C to this Agreement. 

 9.                
  Non-Competition 

                     The
  Employee agrees that while the Employee is employed by the Employer, and for
  a period of one (1) year immediately following the termination of the Employee's
  employment with the Employer for any reason whatsoever, without the prior written
  approval of the President of the Employer, the Employee shall not, either individually
  or in partnership or in conjunction with any person, firm, association, syndicate,
  corporation or entity as principal, agent, shareholder, employee, owner, investor,
  partner (inactive or otherwise), director or officer of a corporation or in
  any other manner whatsoever, directly or indirectly, carry on or be engaged

 5

 in or be concerned with or interested in or advised, to lend
  money to, and guarantee the debts or obligations of or permit his name or any
  part thereof to be used or employed by any person, firm, association, syndicate,
  corporation or entity engaged in or concerned with or interested in, within
  North America, the Business, or any business similar to the Business carried
  on by the Employer or any Affiliate, or that could reasonably be viewed as being
  competitive with the Business of the Employer or any Affiliate. 

                     The
  Employee hereby agrees that all restrictions in this section 9 are reasonable
  and valid and all defences to the strict enforcement thereof by the Employer
  are hereby waived by the Employee.

 10.              Non-solicitation

                     The
  Employee agrees that while the Employee is employed by the Employer, and for
  one (1) year immediately following the termination of the Employee's employment
  with the Employer for any reason whatsoever, the Employee shall not, without
  the prior written consent of the Employer, directly or indirectly, either personally
  or by agent or by letters, circulars or advertisements, whether on his own behalf
  or on behalf of any other person, firm, association, syndicate, corporation
  or entity: 

	 	 (a)      	 contact, canvass, solicit, induce or attempt to
        induce or do business of a similar nature as that of the Employer, with
        any person, firm, association, syndicate, corporation, or entity which
        was a client, customer, employee of or an independent contractor to the
        Employer or any Affiliate at the time of such termination or any time
        during the twelve (12) month period immediately preceding such termination;
      

	 
	 	 (b)      	 hire any employee of or independent contractor to
        the Employer or any Affiliate, or contact, canvass, solicit, induce or
        attempt to induce any person who was an employee of or an independent
        contractor to the Employer or any Affiliate at the time of such termination
        or any time during the twelve (12) month period immediately preceding
        such termination, to terminate their employment or independent contracting
        agreement with the Employer or any Affiliate. 

                     The
  Employee hereby agrees that all restrictions in this section 10 are reasonable
  and valid and all defences to the strict enforcement thereof by the Employer
  are hereby waived by the Employee.

 11.              
  Security Clearance Requirements 

                     The
  Employee shall forthwith comply with each and every security clearance requirement
  communicated by the Employer to the Employee. In particular, the Employee acknowledges
  and agrees that continued employment by the Employer may be conditional upon
  the Employee complying with such security clearance requirements.

 

 6

12.              Enforcement

                     The
  Employee acknowledges and agrees that the Employee's faithful observance of
  all covenants in this Agreement is an essential condition to his employment,
  and that the Employer requires absolute compliance. The Employee further acknowledges
  and agrees that damages may not be an adequate remedy to compensate the Employer
  for any breach of the Employee's obligations contained in this Agreement, and
  accordingly the Employee agrees that in addition to any and all other remedies
  available, the Employer shall be entitled to obtain relief by way of a temporary
  or permanent injunction to enforce the obligations contained in this Agreement.
  The Employee further acknowledges and agrees that any breach of this Agreement,
  including, without limitation, the Employer's Technology Protection Policy,
  if any, in effect from time to time, shall constitute grounds for discipline
  up to and including immediate termination of employment for cause. 

13.              Entire
  Agreement

                     This
  Agreement, together with any schedule which may be attached hereto from time
  to time, constitutes the entire agreement between the Employer and the Employee
  pertaining to the subject matter hereof and supercedes all prior formal and
  informal agreements, proposals, promises, inducements, representations, conditions,
  warranties, understandings, negotiations, and discussions, whether oral or written,
  of the Employer and the Employee. 

 14.              Governing
  Law 

                     This
  Agreement shall be governed by and interpreted in accordance with the laws in
  effect in the Province of Manitoba. 

 15.              No
  Assignment 

                     Neither
  this Agreement, nor any rights or obligations hereunder, shall be assignable
  by the Employee.

 16.              Waivers

                     No
  waiver by the Employer of any breach of any of the covenants, provisoes, conditions
  or stipulations herein contained, whether express or implied or negative or
  positive in form, by the Employee, shall have any effect or be binding upon
  the Employer unless the same shall be in writing under the authority of the
  Employer, and any waiver shall extend only to the particular breach so waived
  and shall not limit or affect the rights of the Employer with respect to any
  other or further breach by the Employee. 

17.              Severability

                     Each
  and every term and provision in this Agreement shall be severable, one from
  the other, and should any court of competent jurisdiction interpreting this
  Agreement determine any provision or term hereof to be void or unenforceable,
  then the same shall be struck from this

 7

 Agreement without in any way affecting the validity of any
  other term or provision of this Agreement. 

 18.              Time
  of the Essence 

                     Time
  shall in all respects be of the essence of this Agreement.

 19.              Successors
  and Assigns 

                     This
  Agreement shall enure to the benefit of and be binding upon the Employer and
  the Employee, and their respective heirs, executors, administrators, successors,
  and other legal representatives and their respective successors.

 20.              Gender
  and Number 

                     In
  this Agreement, words importing the singular include the plural and vice versa,
  and words importing gender include all genders. 

 THE EMPLOYEE HEREBY ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT,
  UNDERSTANDS IT, HAS HAD THE OPPORTUNITY TO OBTAIN INDEPENDENT LEGAL ADVICE IN
  RESPECT OF IT, AND AGREES TO ITS TERMS. The Employee acknowledges having received
  a fully executed copy of this Agreement. 

                     IN
  WITNESS WHEREOF the parties hereto have duly executed this Agreement on the
  day and year first written above. 

	  	  	 MEDICURE INC.  
	  	 	 	 
	  	  	 Per:  	 "Albert D. Friesen"  
	  	  	  	 President & CEO  
	  	 	 	 
	  	 	 	 
	 "Ryan Wilkes"  	  	 Per:  	 "Dawson Reimer"  
	 (Signature of witness)  	  	  	 Dawson Reimer  

8

 SCHEDULE A

 TO

 MEDICURE INC.

 EMPLOYMENT AGREEMENT

                     DEFINITIONS

                     For
  purposes of the Employment Agreement utilized by Medicure Inc. (the "Employer"),
  together with any Schedule thereto, the following capitalized terms shall have
  the following meanings: 

	 1.      	 "Affiliate" means the Employer,
        together with any other corporation, regardless of its jurisdiction of
        incorporation, that: 

	 
	 	 (a)      
	 is a wholly owned subsidiary of the Employer; or
      

	 
	 	 (b)      
	 is controlled by the Employer or by the same person
        that controls the Employer; or 

	 
	 	 (c)     
      
	 is the parent corporation of the Employer. 

	 
	 	 For greater certainty, if pursuant to
        the foregoing definition two corporations are each affiliated with a third
        corporation at the same time they are deemed to be affiliated with each
        other. 

	 
	 2.      	 "Agreement" means, collectively,
        the Employment Agreement executed by an Employee together with all Schedules
        then or thereafter attached thereto including, without limitation, the
        following Schedules: 

	 

	 	 	 Schedule A  	 -  	 Definitions  
	 	 	 Schedule B  	 -  	 Purpose of Employment  
	 	 	 Schedule C  	 -  	 Developments Policy  

	 3.      	 "Business" means the business of planning,
        supporting, financing, conducting, negotiating, contracting, sub-contracting
        or otherwise conducting or planning to conduct the activities associated
        with research, development, clinical trials, regulatory testing, compliance,
        manufacturing, distribution, marketing, sales, licensing, sub-licensing
        or other exploitation of cardiovascular products, and in particular such
        business in Canada and in the United States associated with the development
        of compounds which are currently or are planned for research and development
        by the Employer or any Affiliate and associated with target markets as
        selected by the Employer or any Affiliate. 

 9

	 4.      	 "Confidential Information" includes
        all of the following: 

	 
	 	 (a)      
	 any and all versions of the technology and related
        documentation owned or marketed or being developed by the Employer or
        any Affiliate, as well as the software and documentation owned by the
        Employer's suppliers and used internally by the Employer, including all
        related algorithms, concepts, data, designs, flowcharts, ideas, programming
        techniques, programmer's notes, electronic artwork, specifications, and
        source code listings; 

	 
	 	 (b)      
	 all Developments; 

	 
	 	 (c)     
      
	 any and all information regarding existing or proposed
        services of the Employer or any Affiliate; 

	 
	 	 (d)      
	 any and all information regarding the Employer's
        or any Affiliate's business operations, methods, and practices, including
        sources of information, sales leads, marketing strategies, product and
        service pricing, margins and hourly rates for staff and information regarding
        the financial affairs of the Employer or that Affiliate; 

	 
	 	 (e)      
	 any and all concepts or ideas in or reasonably related
        to the Business of the Employer or any Affiliate that are not generally
        known outside of the Employer or that Affiliate; 

	 
	 	 (f)      
	 the names of the Employer's or any Affiliate's clients
        or customers and the names of suppliers of computer services and software
        to the Employer or any Affiliate, and the nature of the Employer's or
        that Affiliate's relationships with these clients, customers, and suppliers;
      

	 
	 	 (g)      
	 any and all technical and business information of
        or regarding the clients or customers of the Employer or any Affiliate
        obtained in order for the Employer or that Affiliate to provide such clients
        or customers with products and/or services, including information regarding
        the data processing requirements and the business operations, methods
        and practices, and product plans of such clients or customers; 

	 
	 	 (h)      
	 any and all information received from others that
        the Employer or any Affiliate is obligated to treat as confidential; 

	 
	 	 (i)      
	 all Trade Secrets; 

	 
	 	 (j)      
	 any other confidential or proprietary information
        in the possession or control of the Employer or any Affiliate, regardless
        of whether or not it has a copyright notice or a claim to copyright thereon;
      

	 
	 	 (k)      
	 any other information concerning or with respect
        to the Employer or any Affiliate and its respective business and affairs
        the dissemination of any knowledge whereof might prove prejudicial to
        the Employer or to that Affiliate; and 

 10

	 	 (l)      
	 such information as a director, officer or senior
        employee of the Employer or any Affiliate may from time to time designate
        to the Employee as being included in the expression "Confidential Information";
      

	 
	 	 	 whether the same may be contained in papers, microfilm,
        recordings, computer disks, magnetic storage or, without limitation, any
        other medium of storage of information; provided that Confidential Information
        does not include information which is or becomes generally available to
        the public without the fault of the Employee. 

	 
	 5.      
	 "Developments" means: 

	 
	 	 (a)      
	 all reports, products, scientific, and technical
        information or material; 

	 
	 	 (b)     
      
	 all inventions, devices, discoveries, concepts,
        ideas, algorithms, formulae, specifications, proposals, models, designs,
        processes, techniques, systems and improvements, test results and reports,
        analyses, simulation results, tables of operating conditions, materials,
        components, industrial skills, operating and testing procedures, know-how
        and show-how, whether patentable or not; and 

	 
	 	 (c)      
	 all software, documentation, data, designs, reports,
        flowcharts, trademarks, specifications and source code listings, and any
        related works, including any enhancements, modifications or additions
        to the products owned, marketed, licensed or used by the Employer or any
        Affiliate; 

	 
	 	 conceived, developed, created, generated,
        produced or reduced to practice by the Employee, alone or jointly with
        others, during the Employee's employment with the Employer and which:
      

	 
	 	 (d)      
	 are complimentary to or could reasonably be viewed
        as being competitive with any of the products owned or marketed by the
        Employer or any Affiliate; or 

	 
	 	 (e)      
	 result from tasks assigned to the Employee by the
        Employer or any Affiliate; or 

	 
	 	 (f)      
	 result from the use of the premises or property
        (including equipment, supplies, materials or Confidential Information)
        owned, leased or licensed by the Employer or any Affiliate. 

	 
	 	 Any Development so conceived, developed,
        created, generated, produced or reduced to practice shall constitute Confidential
        Information immediately upon such conception, development, creation, generation,
        production or reduction to practice. 

	 
	 6.      
	 "Trade Secrets" means all information
        concerning or with respect to the Employer or any Affiliate and its respective
        business and affairs that: 

	 
	 	 (a)      
	 derives economic value, actual or potential, from
        not being generally known to, and not being readily ascertainable by proper
        means by, other persons who can obtain economic value from the disclosure
        or use thereof; and 

11

	 	(b) 	 is the subject of efforts that are reasonable under the circumstances
      to maintain the secrecy thereof.  
	 	 	  
	 	 In essence, Trade Secrets are the distinctive
        features of the operations of the Employer or any Affiliate that make
        the products or services of that corporation, and the way that that corporation
        conducts business, special, even unique.  

 12

 SCHEDULE B

 TO

 MEDICURE INC.

 EMPLOYMENT AGREEMENT

	 PURPOSE OF EMPLOYMENT  	  
	 	 	 
	 Purpose of Employment:  	 Directing the business development function of the Employer,
      including overseeing investor relations,  
	 	  	 partnering initiatives, and strategic milestones.  
	 	 	 
	 Commencement Date:  	 October 1, 2001  
	 	 	 
	 Hours:  	 Minimum 40 hours per week  
	 	 	 
	 Compensation:  	  
	 	 	 
	 	 Amount per hour or  	  
	 	 per annum, as applicable:  	 $45,600.00 per annum  
	 	 	 
	 	 Payment:  	 Twice monthly  
	 	 	 
	 Benefits:  	  
	 	 	 
	 	 Vacation:  	 3 weeks with pay per year during a period approved by 
    
	 	  	 Medicure Inc.  
	 	 	 
	 	 Bonuses:  	 Determined and payable at Medicure Inc.'s sole discretion. 
    
	 	 	 
	 Contract (for purposes of  section 3(f): 
    	None.  

 13

 SCHEDULE C 

 TO 

 MEDICURE INC. 

 EMPLOYMENT AGREEMENT 

 DEVELOPMENTS POLICY

  Violation of this Policy is grounds for discipline up to and including
  immediate dismissal for cause. 

 All Employees of Medicure Inc. (the "Employer") MUST comply with this
  Policy. By signing the Employer's Employment Agreement, each Employee agrees
  as follows: 

	 1.      	 To make full disclosure to the Employer of each
        Development promptly after its conception, development, creation, generation,
        production or reduction to practise. 

	 
	 2.      	 To be deemed to have assigned and transferred to
        the Employer, automatically upon the conception, development, creation,
        generation, production or reduction to practise of any Development, and
        without further consideration, all of the Employee's right, title, and
        interest in and to each Development throughout the world, including all
        trade secrets, patent rights, copyrights, and all other intellectual property
        rights therein, with such deemed assignment and transfer to be treated
        in all respects as a formal assignment in writing. 

	 
	 3.      	 To recognize the Employer as the exclusive owner
        of all of the Employee's right, title, and interest in and to each Development
        throughout the world, including all trade secrets, patent rights, copyrights
        and all other intellectual property rights therein. 

	 
	 4.      	 To cooperate fully at all times during and subsequent
        to the Employee's employment with the Employer with respect to signing
        further documents and doing such acts and other things reasonably requested
        by the Employer to confirm such assignment and transfer of ownership of
        rights, including any and all intellectual property rights, effective
        at or after the time any Development is conceived, developed, created,
        generated, produced or reduced to practise and to obtain patents or copyrights
        or the like covering any Development. 

	 
	 5.      	 To not require the Employer, its successors, assignees,
        and licensees to designate the Employee as the author of any Development.
      

	 
	 6.      	 To be deemed to have waived in whole all moral rights
        which the Employee may have in any Development, including the right to
        the integrity of the Development, the right to be associated with the
        Development, the right to restrain or claim damages for any distortion,
        mutilation or other modification of the Development, and the right to
        restrain use or reproduction of any Development in any context and in
        connection with any product, service, cause or institution, with such
        deemed waiver to be treated as a formal waiver in writing. 

	 
	 7.      	 To not knowingly infringe the intellectual property
        rights, including copyright, of any third party in the Employee's work
        creating any Development.EXHIBIT 10.1
                                                                    ------------

THIS SECURED DEBENTURE, AND THE SECURITIES INTO WHICH IT IS CONVERTIBLE
(COLLECTIVELY, THE "SECURITIES"), HAVE NOT BEEN REGISTERED WITH THE UNITED
STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE. THE SECURITIES ARE BEING OFFERED PURSUANT TO A SAFE HARBOR FROM
REGISTRATION UNDER REGULATION D PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). THE SECURITIES ARE "RESTRICTED" AND MAY NOT BE OFFERED OR
SOLD UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT, PURSUANT TO REGULATION
D OR PURSUANT TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE
ACT AND THE COMPANY WILL BE PROVIDED WITH OPINION OF COUNSEL OR OTHER SUCH
INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH EXEMPTIONS ARE
AVAILABLE. FURTHER HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE MADE
EXCEPT IN COMPLIANCE WITH THE ACT.

                                SECURED DEBENTURE

                           CORPORATE STRATEGIES, INC.

                        5% SECURED CONVERTIBLE DEBENTURE

                                DUE JUNE 25, 2007

No. CCP-1                                                               $500,000

     This Secured Debenture is issued by Corporate Strategies, Inc., a Delaware
corporation (the "Company"), to Cornell Capital Partners L.P. (together with its
permitted successors and assigns, the "Holder") pursuant to exemptions from
registration under the Securities Act of 1933, as amended.

                                   ARTICLE I.

     SECTION 1.01 PRINCIPAL AND INTEREST. For value received, on June 25, 2004
the Company hereby promises to pay to the order of the Holder in lawful money of
the United States of America and in immediately available funds the principal
sum of Five Hundred Thousand Dollars ($500,000), together with interest on the
unpaid principal of this Debenture at the rate of five percent (5%) per year
(computed on the basis of a 365-day year and the actual days elapsed) from the
date of this Debenture until paid. At the Company's option, the entire principal
amount and all accrued interest shall be either (a) paid to the Holder on the
second (2nd) year anniversary from the date hereof or (b) converted in
accordance with Section 1.02 herein provided, however, that in no event shall
the Holder be entitled to convert this Debenture for a number of shares of
Common Stock in excess of that number of shares of Common Stock which, upon
giving effect
<PAGE>

to such conversion, would cause the aggregate number of shares of Common Stock
beneficially owned by the Holder and its affiliates to exceed 4.99% of the
outstanding shares of the Common Stock following such conversion (which
provision may be waived by the Investor by written notice from the Investor to
the Company, which notice shall be effective 61 days after the date of such
notice). This limitation shall not apply to an automatic conversion pursuant to
Section 4.03 hereof.

     SECTION 1.02 OPTIONAL CONVERSION. The Holder is entitled, at its option, to
convert, and sell on the same day, at any time and from time to time, until
payment in full of this Debenture, all or any part of the principal amount of
the Debenture, plus accrued interest, into shares (the "Conversion Shares") of
the Company's common stock, par value $0.001 per share ("Common Stock"), at the
price per share (the "Conversion Price") equal to the lesser of (a) an amount
equal to one hundred twenty percent (120%) of the initial bid price of the
Common Stock as listed on a Principal Market (as defined herein), as quoted by
Bloomberg L.P. (the "Closing Bid Price") as made by a market maker, submitted on
Form 211 to and approved by the NASD, or (b) an amount equal to eighty percent
(80%) of the lowest closing bid price of the Company's Common Stock, as quoted
by Bloomberg, LP (the "Closing Bid Price"), for the five (5) trading days
immediately preceding the Conversion Date (as defined herein). Subparagraphs (a)
and (b) above are individually referred to as a "Conversion Price". As used
herein, "Principal Market" shall mean The National Association of Securities
Dealers Inc.'s Over-The-Counter Bulletin Board, Nasdaq SmallCap Market, or
American Stock Exchange. If the Common Stock is not traded on a Principal
Market, the Closing Bid Price shall mean the reported Closing Bid Price for the
Common Stock, as furnished by the National Association of Securities Dealers,
Inc., for the applicable periods. No fraction of shares or scrip representing
fractions of shares will be issued on conversion, but the number of shares
issuable shall be rounded to the nearest whole share. To convert this Debenture,
the Holder hereof shall deliver written notice thereof, substantially in the
form of Exhibit "A" to this Debenture, with appropriate insertions (the
"Conversion Notice"), to the Company at its address as set forth herein. The
date upon which the conversion shall be effective (the "Conversion Date") shall
be deemed to be the date set forth in the Conversion Notice.

     SECTION 1.03 RESERVATION OF COMMON STOCK. The Company shall reserve and
keep available out of its authorized but unissued shares of Common Stock, solely
for the purpose of effecting the conversion of this Debenture, such number of
shares of Common Stock as shall from time to time be sufficient to effect such
conversion, based upon the Conversion Price. If at any time the Company does not
have a sufficient number of Conversion Shares authorized and available, then the
Company shall call and hold a special meeting of its stockholders within sixty
(60) days of that time for the sole purpose of increasing the number of
authorized shares of Common Stock.

     SECTION 1.04 RIGHT OF REDEMPTION. The Company at its option shall have the
right to redeem, with fifteen (15) days advance written notice (the "Redemption
Notice"), a portion or all outstanding convertible debenture. The redemption
price shall be one hundred twenty percent (120%) of the amount redeemed plus
accrued interest.

     SECTION 1.05 REGISTRATION RIGHTS. The Company is obligated to register the
resale of the Conversion Shares under the Securities Act of 1933, as amended,
pursuant to the terms of a

                                        2
<PAGE>

Registration Rights Agreement of even date herewith between the Company and the
Holder (the "Investor Registration Rights Agreement").

     SECTION 1.06 INTEREST PAYMENTS. Accrued interest shall be paid at the time
of maturity or conversion to the person in whose name this Debenture is
registered. At the time such interest is payable, the Holder, in its sole
discretion, may elect to receive the interest in cash (via wire transfer or
certified funds) or in the form of Common Stock. In the event of default, as
described in Article III Section 3.01 hereunder, the Holder may elect that the
interest be paid in cash (via wire transfer or certified funds) or in the form
of Common Stock. If paid in the form of Common Stock, the amount of stock to be
issued will be calculated as follows: the value of the stock shall be the
Closing Bid Price on: (i) the date the interest payment is due; or (ii) if the
interest payment is not made when due, the date the interest payment is made. A
number of shares of Common Stock with a value equal to the amount of interest
due shall be issued. No fractional shares will be issued; therefore, in the
event that the value of the Common Stock per share does not equal the total
interest due, the Company will pay the balance in cash.

     SECTION 1.07 PAYING AGENT AND REGISTRAR. Initially, the Company will act as
paying agent and registrar. The Company may change any paying agent, registrar,
or Company-registrar by giving the Holder not less than ten (10) business days'
written notice of its election to do so, specifying the name, address, telephone
number and facsimile number of the paying agent or registrar. The Company may
act in any such capacity.

     SECTION 1.08 SECURED NATURE OF DEBENTURE. This Debenture is secured by
certain assets and property of the Company and Aim American Mortgage, Inc., a
majority owned subsidiary of the Company, as more fully described in two
Security Agreements of even date herewith, one of which is between the Company
and the Holder and the other is between Aim American Mortgage, Inc. and the
Holder.

                                   ARTICLE II.

     SECTION 2.01 AMENDMENTS AND WAIVER OF DEFAULT. The Debenture may not be
amended without the consent of the Holder. Notwithstanding the above, without
the consent of the Holder, the Debenture may be amended to cure any ambiguity,
defect or inconsistency, to provide for assumption of the Company obligations to
the Holder or to make any change that does not adversely affect the rights of
the Holder.

                                  ARTICLE III.

     SECTION 3.01 EVENTS OF DEFAULT. An Event of Default is defined as follows:
(a) failure by the Company to pay amounts due hereunder within fifteen (15) days
of the date of maturity of this Debenture; (b) failure by the Company to comply
with the terms of the Irrevocable Transfer Agent Instructions; (c) failure by
the Company's transfer agent to issue freely tradeable Common Stock to the
Holder within five (5) days of the Company's receipt of the attached Notice of
Conversion from Holder; (d) failure by the Company for ten (10) days after
notice to it to comply with any of its other agreements in the Debenture; (e)
events of bankruptcy or insolvency; (f) a breach by the Company of its
obligations under the Securities Purchase Agreement, the Escrow Agreement, the
Security Agreement, the Investor Registration Rights

                                        3
<PAGE>

Agreement or any other agreement entered into on the date hereof between the
Company and the Holder which is not cured by the Company within ten (10) days
after receipt of written notice thereof. Upon the occurrence of an Event of
Default, the Holder may, in its sole discretion, accelerate full repayment of
all debentures outstanding and accrued interest thereon or may, notwithstanding
any limitations contained in this Debenture and/or the Securities Purchase
Agreement of even date herewith between the Company and Cornell Capital
Partners, L.P. (the "Securities Purchase Agreement"), convert all debentures
outstanding and accrued interest thereon into shares of Common Stock pursuant to
Section 1.02 herein.

     SECTION 3.02 FAILURE TO ISSUE UNRESTRICTED COMMON STOCK. As indicated in
Article III Section 3.01, a breach by the Company of its obligations under the
Investor Registration Rights Agreement shall be deemed an Event of Default,
which if not cured within ten (10) days, shall entitle the Holder to accelerate
full repayment of all debentures outstanding and accrued interest thereon or,
notwithstanding any limitations contained in this Debenture and/or the
Securities Purchase Agreement, to convert all debentures outstanding and accrued
interest thereon into shares of Common Stock pursuant to Section 1.02 herein.
The Company acknowledges that failure to honor a Notice of Conversion shall
cause irreparable harm to the Holder.

                                   ARTICLE IV.

     SECTION 4.01 RIGHTS AND TERMS OF CONVERSION. This Debenture, in whole or in
part, may be converted at any time following the date of closing into shares of
Common Stock at a price equal to the Conversion Price as described in Section
1.02 above.

     SECTION 4.02 RE-ISSUANCE OF DEBENTURE. When the Holder elects to convert a
part of the Debenture, then the Company shall reissue a new Debenture in the
same form as this Debenture to reflect the new principal amount.

     SECTION 4.03 TERMINATION OF CONVERSION RIGHTS. The Holder's right to
convert the Debenture into the Common Stock in accordance with paragraph 4.01
shall terminate on the date that is the second (2nd) year anniversary from the
date hereof and this Debenture shall be automatically converted on that date in
accordance with the formula set forth in Section 4.01 hereof, and the
appropriate shares of Common Stock and amount of interest shall be issued to the
Holder.

                                   ARTICLE V.

     SECTION 5.01 ANTI-DILUTION. In the event that the Company shall at any time
subdivide the outstanding shares of Common Stock, or shall issue a stock
dividend on the outstanding Common Stock, the Conversion Price in effect
immediately prior to such subdivision or the issuance of such dividend shall be
proportionately decreased, and in the event that the Company shall at any time
combine the outstanding shares of Common Stock, the Conversion Price in effect
immediately prior to such combination shall be proportionately increased,
effective at the close of business on the date of such subdivision, dividend or
combination as the case may be.

     SECTION 5.02 CONSENT OF HOLDER TO SELL CAPITAL STOCK OR GRANT SECURITY
INTERESTS. Except for the Standby Equity Distribution Agreement dated the date
hereof between the Company and Cornell Capital Partners, LP. so long as any of
the principal of or interest on this

                                        4
<PAGE>

Note remains unpaid and unconverted, the Company shall not, without the prior
consent of the Holder, issue or sell (i) any Common Stock or Preferred Stock
without consideration or for a consideration per share less than its fair market
value determined immediately prior to its issuance, (ii) issue or sell any
Preferred Stock, warrant, option, right, contract, call, or other security or
instrument granting the holder thereof the right to acquire Common Stock without
consideration or for a consideration per share less than such Common Stock's
fair market value determined immediately prior to its issuance, or (iii (iv)
file any registration statement on Form S-8.

                                   ARTICLE VI.

     SECTION 6.01 NOTICE. Notices regarding this Debenture shall be sent to the
parties at the following addresses, unless a party notifies the other parties,
in writing, of a change of address:

If to the Company, to:      Corporate Strategies, Inc.
                            1770 St. James Place, Suite 116
                            Houston, Texas  77056
                            Attention: Tim Connolly
                            Telephone: (713) 621-2737
                            Facsimile: (713) 586-6678

With a copy to:             Seth A. Farbman, Esq.
                            150 West 46th Street
                            New York, NY 10036
                            Telephone: (212) 730-4073
                            Facsimile: (646) 349-9655

If to the Holder:           Cornell Capital Partners, LP
                            101 Hudson Street, Suite 3700
                            Jersey City, NJ  07303
                            Attention: Mark Angelo
                            Telephone: (201) 985-8300
                            Facsimile: (201) 985-8266

With a copy to:             Cornell Capital Partners, LP
                            101 Hudson Street, Suite 3700
                            Jersey City, NJ  07303
                            Attention: Troy J. Rillo, Esq.
                            Telephone: (201) 985-8300
                            Facsimile: (201) 985-8266

     SECTION 6.02 GOVERNING LAW. This Debenture shall be deemed to be made under
and shall be construed in accordance with the laws of the State of New Jersey
without giving effect to the principals of conflict of laws thereof. Each of the
parties consents to the exclusive jurisdiction of the U.S. District Court
sitting in the District of the State of New Jersey or the state courts of the
State of New Jersey sitting in Hudson County, New Jersey in connection with

                                        5
<PAGE>

any dispute arising under this Debenture and hereby waives, to the maximum
extent permitted by law, any objection, including any objection based on forum
non conveniens to the bringing of any such proceeding in such jurisdictions.

     SECTION 6.03 SEVERABILITY. The invalidity of any of the provisions of this
Debenture shall not invalidate or otherwise affect any of the other provisions
of this Debenture, which shall remain in full force and effect.

     SECTION 6.04 ENTIRE AGREEMENT AND AMENDMENTS. This Debenture represents the
entire agreement between the parties hereto with respect to the subject matter
hereof and there are no representations, warranties or commitments, except as
set forth herein. This Debenture may be amended only by an instrument in writing
executed by the parties hereto.

     SECTION 6.05 COUNTERPARTS. This Debenture may be executed in multiple
counterparts, each of which shall be an original, but all of which shall be
deemed to constitute on instrument.

     IN WITNESS WHEREOF, with the intent to be legally bound hereby, the Company
as executed this Debenture as of the date first written above.

                                                   CORPORATE STRATEGIES, INC.

                                                   By:_______________________
                                                   Name:  Tim Connolly
                                                   Title: President

                                        6
<PAGE>

                                   EXHIBIT "A"
                                   -----------

                              NOTICE OF CONVERSION
                              --------------------

        (TO BE EXECUTED BY THE HOLDER IN ORDER TO CONVERT THE DEBENTURE)

TO:

     The undersigned hereby irrevocably elects to convert $______________ of the
principal amount of the above Debenture into Shares of Common Stock of Corporate
Strategies, Inc., according to the conditions stated therein, as of the
Conversion Date written below.

CONVERSION DATE:                       _________________________________________

APPLICABLE CONVERSION PRICE:           _________________________________________

SIGNATURE:                             _________________________________________

NAME:                                  _________________________________________

ADDRESS:                               _________________________________________

AMOUNT TO BE CONVERTED:                $________________________________________

AMOUNT OF DEBENTURE UNCONVERTED:       $________________________________________

CONVERSION PRICE PER SHARE:            $________________________________________

NUMBER OF SHARES OF COMMON STOCK
TO BE ISSUED:                          _________________________________________

PLEASE ISSUE THE SHARES OF COMMON
STOCK IN THE FOLLOWING NAME AND
TO THE FOLLOWING ADDRESS:              _________________________________________

ISSUE TO:                              _________________________________________

AUTHORIZED SIGNATURE:                  _________________________________________

NAME:                                  _________________________________________

TITLE:                                 _________________________________________

PHONE NUMBER:                          _________________________________________

BROKER DTC PARTICIPANT CODE:           _________________________________________

ACCOUNT NUMBER:                        _________________________________________

                                       A-1

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