Document:

Exhibit 10.1

                      FLEXXTECH CORPORATION
                    PLACEMENT AGENT AGREEMENT

                                                 Dated as of: August 14, 2001
May Davis Group, Inc.
c/o National Securities
28th Floor
120 Broadway
New York, New York 10271

Ladies and Gentlemen:

      The undersigned, Flexxtech Corporation (the "Company"), a corporation
incorporated under the laws of the State of Nevada, hereby agrees with May
Davis Group, Inc. (the "Placement Agent"), a Maryland Corporation, as follows:

      1.  Offering.  (i)  This Agreement confirms the terms and conditions
under which the Company has engaged the Placement Agent to act as its
placement agent on a "best efforts" basis in connection with (a) the
Securities Purchase Agreement (the "Purchase Agreement"), dated the date
hereof, between the Company and the buyers named therein, pursuant to which
the Company will sell, issue and deliver to such buyers its Convertible
Debentures (the "Debentures") in the aggregate principal amount of not less
than $300,000 and not more than $500,000, and (b) the Equity Line of Credit
Agreement (the "Line of Credit Agreement"), dated the date hereof, between the
Company and the investors named therein (collectively, the "Investors"),
pursuant to which such Investors will purchase shares of the Company's Common
Stock, par value $0.001 per share (the "Common Stock"), at a price per share
equal to the Purchase Price (as is defined in the Line of Credit Agreement)
for an aggregate Purchase Price of up to $10,000,000.  As used in this
Agreement, the "Securities" shall mean the Debentures and the shares of the
Common Stock to be purchased and sold pursuant to the Line of Credit Agreement
and the "Offering Agreements" shall mean the Purchase Agreement and the Line
of Credit Agreement.  The offering of the Securities by the Placement Agent is
referred to in this Agreement as the "Offering."

               (ii)  Pursuant to the Purchase Agreement, the Company will
issue and deliver to the Placement Agent or its designee(s) warrants (the "MD
Warrants") exercisable during the two (2) years after the date of issuance and
substantially in the form of Exhibit A annexed hereto, to acquire shares of
the Common Stock, which number of shares shall equal 80 shares for each
$100.00 principal amount of Debentures placed by the Placement Agent.

               (iii)  Pursuant to the Line of Credit Agreement, the Company
will issue and deliver to the Placement Agent or its designee(s) that number
of shares of Common Stock as shall be equal to (X) $120,000.00 divided by (Y)
the closing bid price of the Company's Common Stock on the date this Agreement
is executed by the Placement Agent and the Company (the "MD Restricted
Shares").  As used herein, the "MD Securities" means the MD Warrants, the
shares of the Common Stock underlying the MD Warrants and the MD Restricted
Shares.  Pursuant to the Purchase Agreement and the Line of Credit Agreement,
the Company will grant to the holders thereof certain registration rights with
respect to the MD Restricted Shares and the shares of Common Stock that
underlie the MD Warrants, all as more fully set forth in the MD Registration
Rights Agreement (as defined below in this Agreement).

               (iv)  Notwithstanding any provision of this Agreement to the
contrary, the Placement Agent is not obligated to sell any Securities.

               (v)  The documents to be executed and delivered in connection
with the Offering, including but not limited to this Agreement, the Offering
Agreements, the registration rights agreement relating to the shares of the
Common Stock issued under the Line of Credit Agreement (the "Investor
Registration Rights Agreement"), the Securities and the MD Registration Rights
Agreement are hereinafter referred to collectively as the "Offering
Documents."

               (vi)  All capitalized terms used herein and not otherwise
defined shall have the same meanings given to them as in the Line of Credit
Agreement.

      2.  Compensation.

               (i)  Upon the purchase and sale of the Debentures under the
Purchase Agreement, the Company shall issue, sell and deliver the MD Warrants
to the persons named in Exhibit B annexed hereto and made a part hereof at an
exercise price of $1.80  per share.

               (ii)  Upon the purchase and sale of the Debentures under the
Purchase Agreement, the Company will pay the Placement Agent its fee in the
cash amount equal to eight percent (8%) of the gross proceeds of the
Debentures.

               (iii) Upon the first Advance Closing under the Line of Credit
Agreement, the Company shall issue, sell and deliver the MD Restricted Shares
to the persons named in Exhibit C annexed hereto and made a part hereof.

               (iv) Upon the first and each subsequent Advance Closing, the
Company will also pay the Placement Agent cash compensation in an amount equal
to two and eight-tenths of one percent (2.8%) of the gross proceeds of such
Advance funded at that Advance Closing.

               (v)  The holders of the MD Warrants and the MD Restricted
Shares will be entitled to certain demand registration rights with respect to
the shares of Common Stock issuable upon exercise of the MD Warrants and the
MD Restricted Shares pursuant to a registration rights agreement (the "MD
Registration Rights Agreement") substantially in the form annexed hereto as
Exhibit D.

      3.  Representations, Warranties and Covenants of the Placement Agent.

            A.  The Placement Agent represents, warrants and covenants as
follows:

               (i)  The Placement Agent has the requisite corporate power to
enter into this Agreement and the MD Registration Rights Agreement, and to
consummate the transactions contemplated hereby and thereby.

               (ii)  The execution and delivery by the Placement Agent of this
Agreement and the MD Registration Rights Agreement, and the consummation of
the transactions contemplated herein and therein, will not result in any
violation of, or be in conflict with, or constitute a default under, any
agreement or instrument to which the Placement Agent is a party or by which
the Placement Agent or its properties are bound, or any judgment, decree,
order or, to the Placement Agent's knowledge, any statute, rule or regulation
applicable to the Placement Agent.  This Agreement and the MD Registration
Rights Agreement, when executed and delivered by the Placement Agent, will
constitute the legal, valid and binding obligations of the Placement Agent,
enforceable in accordance with their respective terms, except to the extent
that (a) the enforceability hereof or thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws from time to time in
effect and affecting the rights of creditors generally, (b) the enforceability
hereof or thereof is subject to general principles of equity or (c) the
indemnification provisions hereof or thereof may be held to violate public
policy.

               (iii)  The Placement Agent will deliver documents related to
the Offering only to persons that it reasonably believes to be an Accredited
Investor.

               (iv)  The Placement Agent will not intentionally take any
action that it reasonably believes would cause the Offering to violate the
provisions of the Securities Act of 1933, as amended (the "1933 Act"), the
Securities Exchange Act of 1934, as amended (the "1934 Act"), the respective
rules and regulations promulgated thereunder (the "Rules and Regulations") or
applicable "Blue Sky" laws of any state or jurisdiction.

               (v)  The Placement Agent shall use all reasonable efforts to
determine (a) whether the intended purchasers of the securities are Accredited
Investors and (b) that any information furnished by the Investors is true and
accurate.  The Placement Agent shall have no obligation to insure that (x) any
check, note, draft or other means of payment for the Common Stock will be
honored, paid or enforceable against the Investors in accordance with its
terms, or (y) subject to the performance of the Placement Agent's obligations
and the accuracy of the Placement Agent's representations and warranties
hereunder, (1) the Offering is exempt from the registration requirements of
the 1933 Act or any applicable state "Blue Sky" law, or (2) each purchase of
any of the securities is an Accredited Investor.

      4.  Representations and Warranties of the Company.

            A.  The Company represents and warrants as to the Placement Agent
follows:

               (i)  The execution, delivery and performance of each of the
Offering Documents has been duly and validly authorized by the Company.  Each
of the Offering Documents, when executed and delivered by the Company, will
constitute the legal, valid and binding obligations of the Company,
enforceable in accordance with its respective terms, except to the extent that
(a) the enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws from time to time in effect and
affecting the rights of creditors generally, (b) the enforceability thereof is
subject to general principles of equity or (c) the indemnification provisions
thereof may be held to violate of public policy.  The Securities to be issued
pursuant to the transactions contemplated by the Line of Credit Agreement and
this Agreement have been duly authorized and, when issued and paid for in
accordance with this Agreement or the Offering Agreements, as the case shall
be, the certificates/instruments representing such Securities will constitute
the legal, valid and binding obligations of the Company, enforceable in
accordance with their respective terms, except to the extent that (1) the
enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws from time to time in effect and
affecting the rights of creditors generally, and (2) the enforceability
thereof is subject to general principles of equity.  All corporate action
required to be taken for the authorization, issuance and sale of the
Securities has been duly and validly taken by the Company.

               (ii)  The Company has been duly authorized, issued and has
outstanding capitalization as set forth in the disclosure schedules to the
Line of Credit Agreement.  Except as specifically set forth in the Disclosure
Schedules to the Line of Credit Agreement, the Company is not a party to or
bound by any instrument, agreement or other arrangement requiring it to issue
any capital stock or any rights, warrants, options or other securities to
acquire shares of capital stock, except for this Agreement, the Securities,
the MD Restricted Shares and the Warrants.  All issued and outstanding
securities of the Company, have been duly authorized and validly issued and
are fully paid and non-assessable; the holders thereof have no rights of
rescission or preemptive rights with respect thereto and are not subject to
personal liability solely by reason of being security holders; and none of
such securities was issued in violation of the preemptive or similar rights of
any holders of any security of the Company.

               (iii)  The Securities have been duly authorized, and, when
issued and paid for in accordance with the Line of Credit Agreement and the
Purchase Agreement, the shares of Common Stock to be issued and sold
thereunder will be validly issued, fully paid and non-assessable shares of the
Company's capital stock.

               (iv)  The Company and each of its subsidiaries has good and
marketable title to, or valid and enforceable leasehold estates in, all items
of real and personal property necessary to conduct its business (including,
without limitation any real or personal property stated in the Offering
Documents to be owned or leased by the Company or its subsidiaries), free and
clear of all liens, encumbrances, claims, security interests and defects of
any material nature whatsoever, other than those set forth in the SEC
Documents or those disclosed in the schedules to the Offering Documents and
liens for taxes not yet due and payable.

               (v)  There is no litigation or governmental proceeding pending
or, to the best of the Company's knowledge, threatened against, or involving
the properties or business of the Company or any of its subsidiaries, except
as set forth in the SEC Documents or the schedules to the Offering Documents.

               (vi)  The Company has been duly organized and is validly
existing as a corporation in good standing under the laws of the State of
Nevada.  Except as set forth in the SEC Documents or the Schedules to the
Offering Documents, neither the Company nor any of its subsidiaries owns or
controls, directly or indirectly, an interest in any other corporation,
partnership, trust, joint venture or other business entity.  The Company and
each of its subsidiaries is duly qualified or licensed and in good standing as
a foreign corporation in each jurisdiction in which the character of its
operations requires such qualification or licensing and where failure to so
qualify would have a material adverse effect on the Company or any of its
subsidiaries.  The Company and each of its subsidiaries has all requisite
corporate power and authority, and all material and necessary authorizations,
approvals, orders, licenses, certificates and permits of and from all
governmental regulatory officials and bodies (domestic and foreign) to conduct
its businesses as described in the SEC Documents. Any disclosures in the SEC
Documents concerning the effects of foreign, federal, state and local
regulation on the businesses of the Company or any of its subsidiaries as
currently conducted and as contemplated are correct in all material respects
and do not omit to state a material fact.  The Company has all corporate power
and authority to enter the Offering Documents to carry out the provisions and
conditions hereof and thereof, and all consents, authorizations, approvals and
orders required in connection herewith and therewith have been obtained.  No
consent, authorization or order of, and no filing with, any court, government
agency or other body is required by the Company for the issuance of the
Securities, the MD Securities or execution and delivery of the Offering
Documents, except for consents and filings required by applicable federal and
state securities laws.  Neither the Company nor any of its subsidiaries, since
their respective inceptions, has incurred any liability arising under or as a
result of the application of any of the provisions of the 1933 Act, the 1934
Act or the Rules and Regulations.

               (vii)  There has been no material adverse change in the
condition or prospects of the Company and its subsidiaries taken as a whole,
financial or otherwise, from the latest dates as of which such condition or
prospects, respectively, are set forth in the SEC Documents, and the
outstanding debt, the property and the business of the Company conform in all
material respects to the descriptions thereof contained in the SEC Documents.

               (viii)  Except as set forth in the SEC Documents or the
Schedules to the Offering Documents, neither the Company nor any of its
subsidiaries is in breach of, or in default under, any term or provision of
any material indenture, mortgage, deed of trust, lease, note, loan or line of
credit agreement or any other material agreement or instrument evidencing an
obligation for borrowed money, or any other material agreement or instrument
to which it is a party or by which any of them or any of their respective
properties may be bound or affected, which breach or default would not have a
material adverse effect on the Company.  Neither the Company nor any of its
subsidiaries is in violation of any provision of its charter or by-laws or in
violation of any franchise, license, permit, judgment, decree or order, or in
violation of any material statute, rule or regulation, which violation will
not have a material adverse effect on the Company.  Neither the execution and
delivery of any of the Offering Documents, nor the issuance and sale or
delivery of the Securities or the MD Securities, nor the consummation of any
of the transactions contemplated in any of the Offering Documents, nor the
compliance by the Company with the terms and provisions hereof or thereof, has
conflicted with or will conflict with, or has resulted in or will result in a
breach of, any of the terms and provisions of, or has constituted or will
constitute a default under, or has resulted in or will result in the creation
or imposition of any lien, charge or encumbrance upon any property or assets
of the Company or any of its subsidiaries or pursuant to the terms of, any
indenture, mortgage, deed of trust, note, loan or credit agreement or any
other agreement or instrument evidencing an obligation for borrowed money, or
any other agreement or instrument to which the Company or any of its
subsidiaries is or may be bound or to which any of the property or assets of
the Company or any of its subsidiaries is or may be subject, except where such
default, lien, charge or encumbrance would not have a material adverse effect
on the Company and its subsidiaries taken as a whole, nor will such action
result in any violation of the provisions of the Articles of Incorporation or
the by-laws of the Company or, assuming the due performance by the Placement
Agent of its obligations hereunder, any material statute or any material
order, rule or regulation applicable to the Company or any of its subsidiaries
of any court or of any foreign, federal, state or other regulatory authority
or other government body having jurisdiction over the Company or any of its
subsidiaries.

               (ix)  Subsequent to the dates as of which information is given
in the SEC Documents, and except as may otherwise be indicated or contemplated
herein or therein or disclosed in the Schedules to the Offering Documents,
neither the Company nor any of its subsidiaries has (a) issued any securities
or incurred any liability or obligation, direct or contingent, for borrowed
money, or (b) entered into any transaction other than in the ordinary course
of business, or (c) declared or paid any dividend or made any other
distribution on or in respect of its capital stock.  Except as described in
the SEC Documents, neither the Company nor any of its subsidiaries has any
outstanding obligations to any officer or director of the Company.

               (x)  There are no claims for services in the nature of a
finder's or origination fee with respect to the sale of the Common Stock or
any other arrangements, agreements or understandings that may affect the
Placement Agent's compensation, as determined by the National Association of
Securities Dealers, Inc.
(x)  The Company and each of its subsidiaries owns or possesses, free and
clear of all liens or encumbrances and rights thereto or therein by third
parties, the requisite licenses or other rights to use all trademarks, service
marks, copyrights, service names, trade names, patents, patent applications
and licenses necessary to conduct its business (including, without limitation,
any such licenses or rights described in the SEC Documents as being owned or
possessed by the Company) and, except as set forth in the SEC Documents or
disclosed in the Schedules to the Offering Documents, there is no claim or
action by any person pertaining to, or proceeding, pending or threatened,
which challenges the exclusive rights of the Company or any of its
subsidiaries with respect to any trademarks, service marks, copyrights,
service names, trade names, patents, patent applications and licenses used in
the conduct of the businesses of the Company or any of its subsidiaries
(including, without limitation, any such licenses or rights described in the
SEC Documents as being owned or possessed by the Company), except any claim or
action that would not have a material adverse effect on the Company and its
subsidiaries, taken as a whole; the current products, services or processes of
the Company and its subsidiaries do not infringe or will not infringe on the
patents currently held by any third party.

               (xii)  Subject to the performance by the Placement Agent of its
obligations hereunder, the Offering Agreements and the offer and sale of the
Securities comply, and will continue to comply, up to the Commitment Period
(as defined in the Line of Credit Agreement) in all material respects with the
requirements of Rule 506 of Regulation D promulgated by the SEC pursuant to
the 1933 Act and any other applicable federal and state laws, rules,
regulations and executive orders. None of the Offering Documents nor any
amendment or supplement thereto, the SEC Documents or the Schedules to the
Offering Documents and any documents prepared by the Company in connection
with the Offering; will contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading.  All statements of material facts in the Offering
Documents and the SEC Documents are true and correct in all material aspects
as of the date of the Offering Documents.

               (xiii)  Except as disclosed in the Schedules to the Offering
Documents, all material taxes which are due and payable from the Company and
its subsidiaries have been paid in full, or adequate provision has been made
for such taxes on the books of the Company except for those taxes disputed in
good faith, neither the Company nor any of its subsidiaries has any tax
deficiency or claim outstanding assessed or proposed against it.

      5.  Certain Covenants and Agreements of the Company.

      The Company covenants and agrees at its expense and without any expense
to the Placement Agent as follows:

            A.  To advise the Placement Agent of any material adverse change
in the Company's financial condition, prospects or business or of any
development materially affecting the Company or rendering untrue or misleading
any material statement in the Offering Documents occurring at any time prior
to any Advance Date as soon as the Company is either informed or becomes aware
thereof.

            B.  To use its best efforts to cause the Common Stock issuable in
connection with the Line of Credit Agreement to be qualified or registered for
sale on terms consistent with those stated in the Investor Registration Rights
Agreement, and under the securities laws of such jurisdictions as the
Placement Agent and the Investors shall reasonably request; provided, that
such states and jurisdictions do not require the Company to qualify as a
foreign corporation or take other action that could adversely affect the
Company.  Qualification, registration and exemption charges and fees shall be
at the sole cost and expense of the Company.

            C.  Upon written request, to provide and continue to provide to
each holder of Securities, copies of all quarterly financial statements and
audited annual financial statements prepared by or on behalf of the Company,
other reports prepared by or on behalf of the Company for public disclosure
and all documents delivered to the Company's stockholders.

            D.  To deliver, during the Commitment Period, to the Placement
Agent, upon the Placement Agent's request, in the manner provided in Section
9(B) of this Agreement, within forty five (45) days after the end of each of
the first three quarters of each fiscal year of the Company, commencing with
the first quarter ending after the Commitment Period, a statement of its
income for each such quarterly period, and its balance sheet and a statement
of changes in stockholders' equity as of the end of such quarterly period, all
in reasonable detail, certified by its principal financial or accounting
officer; (ii) within ninety (90) days after the close of each fiscal year, its
balance sheet as of the close of such fiscal year, together with a statement
of income, a statement of changes in stockholders' equity and a statement of
cash flow for such fiscal year, such balance sheet, statement of income,
statement of changes in stockholders' equity and statement of cash flow to be
in reasonable detail and accompanied by a copy of the certificate or report
thereon of independent auditors if audited financial statements are prepared;
and (iii) a copy of all documents, reports and information furnished to its
stockholders at the time that such documents, reports and information are
furnished to its stockholders.  The Company may satisfy its obligations under
this Paragraph 5(D) by providing the Placement Agent with copies of or access
to the Company's filings made under the 1934 Exchange Act.

            E.  To comply with the terms of the Offering Documents.

            F.  To ensure that any transactions between the Company and any of
its officers, directors and affiliates be on terms and conditions that are no
less favorable to the Company, than the terms and conditions that would be
available in an "arm's length" transaction with an independent third party.

      6.  Indemnification.

            A.  The Company hereby agrees that it will indemnify and hold the
Placement Agent and each officer, director, shareholder, employee or
representative of the Placement Agent, and each person controlling, controlled
by or under common control with the Placement Agent within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act or the SEC's rules
and regulations promulgated thereunder (the "Rules and Regulations") (the
Placement Agent, the officers, directors, shareholders, employees and
representatives of the Placement Agent and the persons controlling, controlled
by or under common control with the Placement Agent are referred to
collectively as "MD Indemnified Persons"), harmless from and against any and
all loss, claim, damage, liability, cost or expense whatsoever (including, but
not limited to, any and all reasonable legal fees and other expenses and
disbursements incurred in connection with investigating, preparing to defend
or defending any action, suit or proceeding, including any inquiry or
investigation, commenced or threatened, or any claim whatsoever or in
appearing or preparing for appearance as a witness in any action, suit or
proceeding, including any inquiry, investigation or pretrial proceeding such
as a deposition) to which any MD Indemnified Person may become subject under
the 1933 Act, the 1934 Act, the Rules and Regulations, or any other federal or
state law or regulation, common law or otherwise, arising out of or based upon
(i) any untrue statement or alleged untrue statement of a material fact
contained in (a) Section 4 of this Agreement, (b) the Offering Documents
(except those written statements relating to the Placement Agent given by an
indemnified person for inclusion therein), (c) any application or other
document or written communication executed by the Company or based upon
written information furnished by the Company filed in any jurisdiction in
order to qualify the Common Stock under the securities laws thereof, or any
state securities commission or agency; (ii) the omission or alleged omission
from documents described in clauses (a), (b) or (c) above of a material fact
required to be stated therein or necessary to make the statements therein not
misleading; or (iii) the breach of any representation, warranty, covenant or
agreement made by the Company in this Agreement.  The Company further agrees
that upon demand by any MD Indemnified Person, at any time or from time to
time, it will promptly reimburse such indemnified person for any loss, claim,
damage, liability, cost or expense actually and reasonably paid by the MD
Indemnified Person as to which the Company has indemnified such person
pursuant hereto.  Notwithstanding the foregoing provisions of this Section
6(A), any such payment or reimbursement by the Company of fees, expenses or
disbursements incurred by an indemnified person in any proceeding in which a
final judgment by a court of competent jurisdiction (after all appeals or the
expiration of time to appeal) is entered against such MD Indemnified Person as
a direct result of the Placement Agent or such person's gross negligence or
willful misfeasance will be promptly repaid to the Company.
A.  The Placement Agent hereby agrees that it will indemnify and hold the
Company and each officer, director, shareholder, employee or representative of
the Company, and each person controlling, controlled by or under common
control with the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act or the Rules and Regulations (the Company, the
officers, directors, shareholders, employees and representatives of the
Placement Agent and the persons controlling, controlled by or under common
control with the Company are referred to collectively as "Company Indemnified
Persons"), harmless from and against any and all loss, claim, damage,
liability, cost or expense whatsoever (including, but not limited to, any and
all reasonable legal fees and other expenses and disbursements incurred in
connection with investigating, preparing to defend or defending any action,
suit or proceeding, including any inquiry or investigation, commenced or
threatened, or any claim whatsoever or in appearing or preparing for
appearance as a witness in any action, suit or proceeding, including any
inquiry, investigation or pretrial proceeding such as a deposition) to which
any Company Indemnified Person may become subject under the 1933 Act, the 1934
Act, the Rules and Regulations, or any other federal or state law or
regulation, common law or otherwise, arising out of or based upon (i) the
conduct of the Placement Agent or its officers, employees or representatives
in its acting as Placement Agent for the Offering or (ii) the breach of any
representation, warranty, covenant or agreement made by the Placement Agent in
this Agreement (iii) any false or misleading information provided to the
Company by one of the Placement Agent  indemnified persons.

            B.  Promptly after receipt by a MD Indemnified Person or a Company
Indemnified Person (in either case, an "Indemnified Person") of notice of
commencement of any action covered by Section 6(A) or 6(B), the party to be
indemnified shall, within five (5) business days, notify the Indemnifying
Person of the commencement thereof; the omission by one Indemnified Person to
so notify the person obligated to indemnify pursuant to Section 6(A) or 6(B)
(in either such case, the "Indemnifying Person") shall not relieve the
indemnifying party of its obligation to indemnify any other Indemnified Person
that has given such notice and shall not relieve the Indemnifying Person of
any liability outside of this indemnification if not materially prejudiced
thereby.  If any action is brought against the Indemnified Person, the
Indemnifying Person will be entitled to participate therein and, to the extent
it may desire, to assume and control the defense thereof with counsel chosen
by it which is reasonably acceptable to the Indemnified Person.  After notice
from the indemnifying person to such indemnified party of its election to so
assume the defense thereof, the indemnifying person will not be liable to such
indemnified party under such Section 6(A) or 6(B) for any legal or other
expenses subsequently incurred by such indemnified party in connection with
the defense thereof, but the indemnified party may, at its own expense,
participate in such defense by counsel chosen by it, without, however,
impairing the indemnifying party's control of the defense.  Subject to the
provision of this sentence and notwithstanding any other statement to the
contrary contained herein, the Indemnified Persons shall have the right to
choose its or their own counsel and control the defense of any action, all at
the expense of the Indemnifying Person if, (i) the employment of such counsel
shall have been authorized in writing by the Indemnifying Person in connection
with the defense of such action at the expense of the Indemnifying Person, or
(ii) the Indemnifying Person shall not have employed counsel reasonably
satisfactory to such Indemnified Person to have charge of the defense of such
action within a reasonable time after notice of commencement of the action, or
(iii) such Indemnified Persons shall have reasonably concluded that there may
be defenses available to it or them which are different from or additional to
those available to one or all of the indemnifying parties (in which case the
Indemnifying Persons shall not have the right to direct the defense of such
action on behalf of the Indemnified Persons), in any of which events such fees
and expenses of one additional counsel shall be borne by the Indemnifying
Person; provided, that the Indemnifying Person shall not, in connection with
any one action or separate but substantially similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstance,
be liable for the reasonable fees and expenses of more than one separate firm
of attorneys at any time for all such Indemnified Persons.  No settlement of
any action or proceeding against an indemnified party shall be made without
the consent of the Indemnifying Person.

            C.  In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in Section 6(A) or
6(B) is due in accordance with its terms but is for any reason held by a court
to be unavailable on grounds of policy or otherwise, the Company and the
Placement Agent shall contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in
connection with the investigation or defense of same) which the other may
incur in such proportion so that the Placement Agent shall be responsible for
such percent of the aggregate of such losses, claims, damages and liabilities
as shall equal the percentage of the gross proceeds paid to the Placement
Agent and the Company shall be responsible for the balance; provided, however,
that no person guilty of fraudulent misrepresentation within the meaning of
Section 11(f) of the 1933 Act shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.  For purposes
of this Section 6(D), any person controlling, controlled by or under common
control with the Placement Agent, or any partner, director, officer, employee,
representative or any agent of any thereof, shall have the same rights to
contribution as the Placement Agent and each person controlling, controlled by
or under common control with the Company within the meaning of Section 15 of
the 1933 Act or Section 20 of the 1934 Act and each officer of the Company and
each director of the Company shall have the same rights to contribution as the
Company.  Any party entitled to contribution will, promptly after receipt of
notice of commencement of any action, suit or proceeding against such party in
respect of which a claim for contribution may be made against the other party
under this Section 6(D), notify such party from whom contribution may be
sought, but the omission to so notify such party shall not relieve the party
from whom contribution may be sought from any obligation they may have
hereunder or otherwise if the party from whom contribution may be sought is
not materially prejudiced thereby.  The indemnity and contribution agreements
contained in this Section 6 shall remain operative and in full force and
effect regardless of any investigation made by or on behalf of any indemnified
person or any termination of this Agreement.

      7.  Payment of Expenses.

      The Company will bear all of the expenses in connection with the
Offering, including, but not limited to the following: SEC and other filing
fees, printing and duplicating costs, advertisements, postage and mailing
expenses with respect to the transmission of Offering Documents, registrar and
transfer agent fees, Escrow Agent fees and expenses, fees of the Company's
counsel and accountants, issue and transfer taxes, if any.

      8.  Termination.

      The terms of this Agreement shall terminate upon the same terms and
conditions contained in the Line of Credit Agreement.  The rights of the
Investors and the obligations of the Company under the Investor Registration
Rights Agreement, and the rights of the Placement Agent and the obligations of
the Company under the Warrants and the MD Registration Rights Agreement shall
survive the termination of this Agreement.

      9.  Miscellaneous.

            A.  This Agreement may be executed in separate counterparts, each
of which, when so executed, shall be deemed to be an original, but all which
shall be deemed to be one and the same agreement.

            B.  Any notice required or permitted to be given hereunder shall
be given in writing and shall be deemed effective when deposited in the United
States mail, postage prepaid, or when received if personally delivered or
faxed (upon confirmation of receipt received by the sending party), addressed
as follows:

To the Placement Agent:

        May Davis Group, Inc.
        c/o National Securities
        28th Floor
        120 Broadway
        New York, New York 10271
        Attention:  Mr. Hunter Singer

With a copy to:

        McGuireWoods LLP
        9 West 57th Street
        Suite 1620
        New York, NY  10019
        Telephone No.: (212) 548-2160
        Fax No.: (212) 548-2150
        Attention:  William A. Newman, Esq.

To the Company:

        Flexxtech Corporation
        5777 West Century Boulevard
        Los Angeles, CA 94010
        Telephone No.: (310) 342-0794
        Fax No.: (310) 342-0791
        Attention:  Greg Mardock
        President

With a copy to:

        Bell, Nunnally & Martin LLP
        3232 McKinney Avenue
        Suite 1400
        Dallas, TX  75204-2429
        Telephone No.: (214) 740-1400
        Fax No.: (214) 740-1499
        Attention: William E. Swart, Esq.

or to such other address of which written notice is given to the others.

            C.  This Agreement shall be governed by and construed in all
respects under the internal laws of the State of New York, without reference
to its conflict of laws rules or principles.  Any suit, action, proceeding or
litigation arising out of or relating to this Agreement shall be brought and
prosecuted in such federal or state court or courts located within the State
of New York as provided by law.  The parties hereby irrevocably and
unconditionally consent to the jurisdiction of each such court or courts
located within the State of New York and to service of process by registered
or certified mail, return receipt requested, or by any other manner provided
by applicable law, and hereby irrevocably and unconditionally waive any right
to claim that any suit, action, proceeding or litigation so commenced has been
commenced in an inconvenient forum.

            D.  This Agreement and the other agreements referenced herein
contain the entire understanding between the parties hereto with respect to
the subject matter of this Agreement.  This Agreement may not be modified or
amended except by a writing duly signed by the party against whom enforcement
of the modification or amendment is sought.

            E.  If any provision of this Agreement shall be held to be invalid
or unenforceable, such invalidity or unenforceability shall not affect any
other provision of this Agreement.

                    [SIGNATURE PAGE TO FOLLOW]

      IN WITNESS WHEREOF, the parties hereto have executed this Placement
Agent Agreement as of the date first written above.

                                FLEXXTECH CORPORATION

                             By:
                                Name: Greg Mardock
                                Title:   President and Chief Executive Officer

                                MAY DAVIS GROUP, INC.

                             By:
                                Name:
                                Title:

<PAGE>

                             WARRANT

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM
REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE
144 UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT.

                      FLEXXTECH CORPORATION
                 WARRANT TO PURCHASE COMMON STOCK

Warrant No.: 1                                      Number of Shares: 112,500

Date of Issuance: September 21, 2001

      Flexxtech Corporation (the "Company"), a corporation incorporated under
the laws of the State of Nevada, hereby certifies that, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Jason Goldstein, the registered holder hereof, or his permitted assigns (the
"Holder"), is entitled, subject to the terms set forth below, to purchase from
the Company upon surrender of this Warrant, at any time or times on or after
the date hereof, but not after 11:59 P.M. Eastern Time on the Expiration Date
(as defined herein) 112,500 fully paid and nonassessable shares of Common
Stock (as defined herein) of the Company (the "Warrant Shares") at the Warrant
Exercise Price as defined in Section 1(a)(xvii) below.

      Section 1.
      ----------

         (a)  Definitions.  The following words and terms as used in this
Warrant shall have the following meanings:

            (i)   "Approved Stock Plan" means any employee benefit plan which
has been approved by the Board of Directors of the Company, pursuant to which
the Company's securities may be issued to any consultants, employee, officer
or director for services provided to the Company.

            (ii)   "Business Day" means any day other than Saturday, Sunday or
other day on which commercial banks in the City of New York are authorized or
required by law to remain closed.

            (iii)  "Closing Bid Price" means the closing bid price of Common
Stock as quoted on the Principal Market (as reported by Bloomberg Financial
Markets ("Bloomberg") through its "Volume at Price" function).

            (iv)  "Closing Date" has the meaning given it in the Securities
Purchase Agreement.

            (v)  "Common Stock" means (i) the Company's common stock, par
value $.001 per share, and (ii) any capital stock into which such Common Stock
shall have been changed or any capital stock resulting from a reclassification
of such Common Stock.

            (vi)   "Excluded Securities" means, if such security is issued at
a price which is greater than or equal to the arithmetic average of the
Closing Bid Prices of the Common Stock for the ten (10) consecutive trading
days immediately preceding the date of issuance, any of the following: (a) any
issuance by the Company of securities in connection with a strategic
partnership or a joint venture (the primary purpose of which is not to raise
equity capital), (b) any issuance by the Company of securities as
consideration for a merger or consolidation or the acquisition of a business,
product, license, or other assets of another person or entity and (c) options
to purchase shares of Common Stock, provided, that such options are issued in
accordance with the applicable terms and conditions of the plan authorizing
the same.

            (vii)  "Expiration Date" means the date two (2) years from the
Issuance Date or, if such date falls on a Saturday, Sunday or other day on
which banks are required or authorized to be closed in the City of New York or
the State of New York or on which trading does not take place on the Principal
Exchange or automated quotation system on which the Common Stock is traded (a
"Holiday"), the next date that is not a Holiday.

            (viii)   "Issuance Date" means the date of this Warrant.

            (ix)  "Registration Rights Agreement" means the Registration
Rights Agreement dated, as of August 14, 2001, between the Company and the
Persons named on Schedule A thereto with respect to the registration rights
pertaining to the Common Stock issuable upon exercise of this Warrant.

            (x)   "Options" means any rights, warrants or options to subscribe
for or purchase Common Stock or Convertible Securities.

            (xi)   "Other Securities" means (i) those options and warrants of
the Company issued prior to, and outstanding on, the Issuance Date, (ii) the
shares of Common Stock issuable on exercise of such options and warrants,
provided such options and warrants are not amended after the Issuance Date,
(iii) the shares of Common Stock issuable upon exercise of this Warrant and
(iv) those commitments to issue shares of Common Stock or securities
convertible into shares of Common Stock that are described on Schedule 4.3 to
the Equity Line of Credit Agreement dated the date hereof between the Company
and the Investors named therein.

            (xii)   "Person" means an individual, a limited liability company,
a partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a government or any department or agency thereof.

            (xiii)   "Principal Market" means the New York Stock Exchange, the
American Stock Exchange, the Nasdaq National Market, the Nasdaq SmallCap
Market, whichever is at the time the principal trading exchange or market for
such security, or the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg or, if no bid or sale information
is reported for such security by Bloomberg on the electronic bulletin board,
then the "pink sheets" distributed by the National Quotation Bureau, Inc.

            (xiv)   "Securities Act" means the Securities Act of 1933, as
amended.

            (xv)  "Securities Purchase Agreement" means the Securities
Purchase Agreement, dated as of August 14, 2001, between the Company and the
Investors named therein for the purchase of Convertible Debentures by the
Investors.

            (xvi)   "Warrant" means this Warrant and all Warrants issued in
exchange, transfer or replacement thereof.

            (xvii)   "Warrant Exercise Price" shall be $1.80 per share.

            (xviii)  "Warrant Shares" means the shares of Common Stock
issuable at any time upon exercise of this Warrant.

         (b)  Other Definitional Provisions.

            (i)  Except as otherwise specified herein, all references herein
(A) to the Company shall be deemed to include the Company's successors and (B)
to any applicable law defined or referred to herein shall be deemed references
to such applicable law as the same may have been or may be amended or
supplemented from time to time.

            (ii)  When used in this Warrant, the words "herein", "hereof", and
"hereunder" and words of similar import, shall refer to this Warrant as a
whole and not to any provision of this Warrant, and the words "Section",
"Schedule", and "Exhibit" shall refer to Sections of, and Schedules and
Exhibits to, this Warrant unless otherwise specified.

            (iii)  Whenever the context so requires, the neuter gender
includes the masculine or feminine, and the singular number includes the
plural, and vice versa.

     Section 2.  Exercise of Warrant.
     -------------------------------

         (a)  Subject to the terms and conditions hereof, this Warrant may be
exercised by the holder hereof then registered on the books of the Company,
pro rata as hereinafter provided, at any time on any Business Day on or after
the opening of business on such Business Day, commencing with the first day
after the Issuance Date, and prior to 11:59 P.M. Eastern Time on the
Expiration Date, by (i) delivery of a written notice, in the form of the
subscription notice attached as Exhibit A hereto (the "Exercise Notice"), of
such holder's election to exercise this Warrant, which notice shall specify
the number of Warrant Shares to be purchased, (ii) (A) payment to the Company
of an amount equal to the Warrant Exercise Price(s) applicable to the Warrant
Shares being purchased, multiplied by the number of Warrant Shares (at the
applicable Warrant Exercise Price) as to which this Warrant is being exercised
(plus any applicable issue or transfer taxes) (the "Aggregate Exercise Price")
in cash or wire transfer of immediately available funds or (B) notification to
the Company that this Warrant is being exercised pursuant to a Cashless
Exercise (as defined in Section 2(f)) and (iii) the surrender of this Warrant
(or an indemnification undertaking with respect to this Warrant in the case of
its loss, theft or destruction) to a common carrier for overnight delivery to
the Company as soon as practicable following such date.  In the event of any
exercise of the rights represented by this Warrant in compliance with this
Section 2(a), the Company shall on the fifth (5th) Business Day following the
date of receipt of the Exercise Notice, the Aggregate Exercise Price (or
notice of a Cashless Exercise) and this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or
destruction) and, except for a Cashless Exercise, the receipt of the
representations of the holder specified in Section 6 hereof, if requested by
the Company (the "Exercise Delivery Documents"), and if the Common Stock is
DTC eligible credit such aggregate number of shares of Common Stock to which
the holder shall be entitled to the holder's or its designee's balance account
with The Depository Trust Company; provided, that if the holder who submitted
the Exercise Notice has requested physical delivery of any or all of the
Warrant Shares, or, if the Common Stock is not DTC eligible  then the Company
shall, on or before the fifth (5th) Business Day following receipt of the
Exercise Delivery Documents, issue and surrender to a common carrier for
overnight delivery to the address specified in the Exercise Notice, a
certificate, registered in the name of the holder, for the number of shares of
Common Stock to which the holder shall be entitled pursuant to such request.
Upon delivery of the Exercise Notice and Aggregate Exercise Price referred to
in clause (ii)(A) above or notification to the Company of a Cashless Exercise
referred to in Section 2(f), the holder of this Warrant shall be deemed for
all corporate purposes to have become the holder of record of the Warrant
Shares with respect to which this Warrant has been exercised.  In the case of
a dispute as to the determination of the Warrant Exercise Price, the Closing
Bid Price or the arithmetic calculation of the Warrant Shares, the Company
shall promptly issue to the holder the number of Warrant Shares that is not
disputed and shall submit the disputed determinations or arithmetic
calculations to the holder via facsimile within three (3) Business Day of
receipt of the holder's Exercise Notice.  If the holder and the Company are
unable to agree upon the determination of the Warrant Exercise Price or
arithmetic calculation of the Warrant Shares within one (1) day of such
disputed determination or arithmetic calculation being submitted to the
holder, then the Company shall immediately submit via facsimile (i) the
disputed determination of the Warrant Exercise Price or the Closing Bid Price
to an independent, reputable investment banking firm or (ii) the disputed
arithmetic calculation of the Warrant Shares to its independent, outside
accountant   The Company shall cause the investment banking firm or the
accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the holder of the results no later than five (5)
business days from the time it receives the disputed determinations or
calculations.  Such investment banking firm's or accountant's determination or
calculation, as the case may be, shall be deemed conclusive absent manifest
error.

         (b)  Unless the rights represented by this Warrant shall have expired
or shall have been fully exercised, the Company shall, as soon as practicable
and in no event later than five (5) Business Days after any exercise and at
its own expense, issue a new Warrant identical in all respects to this Warrant
exercised except it shall represent rights to purchase the number of Warrant
Shares purchasable immediately prior to such exercise under this Warrant
exercised, less the number of Warrant Shares with respect to which such
Warrant is exercised.

         (c)  No fractional Warrant Shares are to be issued upon any pro rata
exercise of this Warrant, but rather the number of Warrant Shares issued upon
such exercise of this Warrant shall be rounded up or down to the nearest whole
number.

         (d)  If the Company or its transfer agent shall fail for any reason
or for no reason to issue to the holder within ten (10) Business Days of
receipt of the Exercise Delivery Documents, a certificate for the number of
Warrant Shares to which the holder is entitled or to credit the holder's
balance account with The Depository Trust Company for such number of Warrant
Shares to which the holder is entitled upon the holder's exercise of this
Warrant, the Company shall, in addition to any other remedies under this
Warrant or the Placement Agent Agreement or otherwise available to such
holder, pay as additional damages in cash to such holder on each day the
issuance of such certificate for Warrant Shares is not timely effected an
amount equal to 0.5% of the product of (A) the sum of the number of Warrant
Shares not issued to the holder on a timely basis and to which the holder is
entitled, and (B) the Closing Bid Price of the Common Stock for the trading
day immediately preceding the last possible date which the Company could have
issued such Common Stock to the holder without violating this Section 2.

         (e)  If within ten (10)  Business Days after the Company's receipt of
the Exercise Delivery Documents, the Company fails to deliver a new Warrant to
the holder for the number of Warrant Shares to which such holder is entitled
pursuant to Section 2(b) hereof, then, in addition to any other available
remedies under this Warrant or the Placement Agent Agreement, or otherwise
available to such holder, the Company shall pay as additional damages in cash
to such holder on each day after such  tenth  (10th) Business Day that such
delivery of such new Warrant is not timely effected in an amount equal to
0.25% of the product of (A) the number of Warrant Shares represented by the
portion of this Warrant which is not being exercised and (B) the Closing Bid
Price of the Common Stock for the trading day immediately preceding the last
possible date which the Company could have issued such Warrant to the holder
without violating this Section 2.

         (f)  Notwithstanding any provision of this Warrant, the holder of
this Warrant may, at its election exercised in its sole discretion, exercise
this Warrant to the extent then exercisable, and in lieu of making payment of
the Aggregate Exercise Price in cash, elect instead to receive upon such
exercise the "Net Number" of shares of Common Stock determined according to
the following formula (a "Cashless Exercise"):

        Net Number = (A x B) - (A x C)
                     -----------------
                             B

            For purposes of the foregoing formula:

                 A= the total number of Warrant Shares with respect to
                 which this Warrant is then being exercised.

                 B= the Closing Bid Price of the Common Stock on the
                 date of exercise of the Warrant.

                 C= the Warrant Exercise Price then in effect for the
                 applicable Warrant Shares at the time of such exercise.

      Section 3.  Covenants as to Common Stock. The Company hereby covenants
and agrees as follows:

         (a)  This Warrant is, and any Warrants issued in substitution for or
replacement of this Warrant will upon issuance be, duly authorized and validly
issued.

         (b)  All Warrant Shares which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be validly issued,
fully paid and nonassessable and free from all taxes, liens and charges with
respect to the issue thereof.

         (c)  During the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized and
reserved at least 100% of the number of shares of Common Stock needed to
provide for the exercise of the rights then represented by this Warrant and
the par value of said shares will at all times be less than or equal to the
applicable Warrant Exercise Price.

         (d)  The Company shall promptly file a registration statement with
the Securities and Exchange Commission to secure the listing of the Warrant
Shares on the Principal Market in accordance with the terms and conditions
regarding the registration rights of holders of Warrants set forth in the
Registration Rights Agreement and shall maintain, so long as any other shares
of Common Stock shall be so listed, such listing of all Warrant Shares from
time to time issuable upon the exercise of this Warrant; and the Company shall
so list on each national securities exchange or automated quotation system, as
the case may be, and shall maintain such listing of, any other shares of
capital stock of the Company issuable upon the exercise of this Warrant if and
so long as any shares of the same class shall be listed on such national
securities exchange or automated quotation system.

         (e)  The Company will not, by amendment of its Articles of
Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed by it hereunder, but will at all
times in good faith assist in the carrying out of all the provisions of this
Warrant and in the taking of all such action as may reasonably be requested by
the holder of this Warrant in order to protect the exercise privilege of the
holder of this Warrant against dilution or other impairment, consistent with
the tenor and purpose of this Warrant.  The Company will not (i) increase the
par value of any shares of Common Stock receivable upon the exercise of this
Warrant above the Warrant Exercise Price then in effect, and (ii) will take
all such actions as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable shares of Common
Stock upon the exercise of this Warrant.

         (f)  This Warrant will be binding upon any entity succeeding to the
Company by merger, consolidation or acquisition of all or substantially all of
the Company's assets.

    Section 4.  Taxes.  The Company shall pay any and all taxes, except any
applicable withholding, which may be payable with respect to the issuance and
delivery of Warrant Shares upon exercise of this Warrant.

      Section 5.  Warrant Holder Not Deemed a Stockholder.  Except as
otherwise specifically provided herein, no holder, as such, of this Warrant
shall be entitled to vote or receive dividends or be deemed the holder of
shares of capital stock of the Company for any purpose, nor shall anything
contained in this Warrant be construed to confer upon the holder hereof, as
such, any of the rights of a stockholder of the Company or any right to vote,
give or withhold consent to any corporate action (whether any reorganization,
issue of stock, reclassification of stock, consolidation, merger, conveyance
or otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the holder of this Warrant of
the Warrant Shares which he or she is then entitled to receive upon the due
exercise of this Warrant.  In addition, nothing contained in this Warrant
shall be construed as imposing any liabilities on such holder to purchase any
securities (upon exercise of this Warrant or otherwise) or as a stockholder of
the Company, whether such liabilities are asserted by the Company or by
creditors of the Company.  Notwithstanding this Section 5, the Company will
provide the holder of this Warrant with copies of the same written notices and
other information given to the stockholders of the Company generally,
contemporaneously with the giving thereof to the stockholders.

      Section 6.  Representations of Holder.  The holder of this Warrant, by
the acceptance hereof, represents that it is acquiring this Warrant and the
Warrant Shares for its own account for investment only and not with a view
towards, or for resale in connection with, the public sale or distribution of
this Warrant or the Warrant Shares, except pursuant to sales registered or
exempted under the Securities Act; provided, however, that by making the
representations herein, the holder does not agree to hold this Warrant or any
of the Warrant Shares for any minimum or other specific term and reserves the
right to dispose of this Warrant and the Warrant Shares at any time in
accordance with or pursuant to a registration statement or an exemption under
the Securities Act.  The holder of this Warrant further represents, by
acceptance hereof, that, as of this date, such holder is an "accredited
investor" as such term is defined in Rule 501(a)(1) of Regulation D
promulgated by the Securities and Exchange Commission under the Securities Act
(an "Accredited Investor").  Upon exercise of this Warrant, other than
pursuant to a Cashless Exercise, the holder shall, if requested by the
Company, confirm in writing, in a form satisfactory to the Company, that the
Warrant Shares so purchased are being acquired solely for the holder's own
account and not as a nominee for any other party, for investment, and not with
a view toward distribution or resale and that such holder is an Accredited
Investor.  If such holder cannot make such representations because they would
be factually incorrect, it shall be a condition to such holder's exercise of
this Warrant, other than pursuant to a Cashless Exercise, that the Company
receive such other representations as the Company considers reasonably
necessary to assure the Company that the issuance of its securities upon
exercise of this Warrant shall not violate any United States or state
securities laws.

      Section 7.  Ownership and Transfer.
      ----------------------------------

         (a)  The Company shall maintain at its principal executive offices
(or such other office or agency of the Company as it may designate by notice
to the holder hereof), a register for this Warrant, in which the Company shall
record the name and address of the person in whose name this Warrant has been
issued, as well as the name and address of each transferee.  The Company may
treat the person in whose name any Warrant is registered on the register as
the owner and holder thereof for all purposes, notwithstanding any notice to
the contrary, but in all events recognizing any transfers made in accordance
with the terms of this Warrant.

         (b)  The Company is obligated to register the Warrant Shares for
resale under the Securities Act pursuant to the Registration Rights Agreement
and the initial holder of this Warrant (and certain assignees thereof) is
entitled to the registration rights in respect of the Warrant Shares as set
forth in the Registration Rights Agreement.

      Section 8.  Adjustment of Warrant Exercise Price and Number of Shares.
The Warrant Exercise Price and the number of shares of Common Stock issuable
upon exercise of this Warrant shall be adjusted from time to time as follows:

         (a)  Adjustment of Warrant Exercise Price and Number of Shares upon
Issuance of Common Stock.  If and whenever on or after the Issuance Date of
this Warrant, the Company issues or sells, or is deemed to have issued or
sold, any shares of Common Stock (other than (i) Excluded Securities and (ii)
shares of Common Stock which are issued or deemed to have been issued by the
Company in connection with an Approved Stock Plan or upon exercise or
conversion of the Other Securities) for a consideration per share less than a
price (the "Applicable Price") equal to the Warrant Exercise Price in effect
immediately prior to such issuance or sale, then immediately after such issue
or sale the Warrant Exercise Price then in effect shall be reduced to an
amount equal to such consideration per share.  Upon each such adjustment of
the Warrant Exercise Price hereunder, the number of Warrant Shares issuable
upon exercise of this Warrant shall be adjusted to the number of shares
determined by multiplying the Warrant Exercise Price in effect immediately
prior to such adjustment by the number of Warrant Shares issuable upon
exercise of this Warrant immediately prior to such adjustment and dividing the
product thereof by the Warrant Exercise Price resulting from such  adjustment.

         (b)  Effect on Warrant Exercise Price of Certain Events.  For
purposes of determining the adjusted Warrant Exercise Price under Section 8(a)
above, the following shall be applicable:

            (i)  Issuance of Options.  If after the date hereof,  the Company
in any manner grants any Options and the lowest price per share for which one
share of Common Stock is issuable upon the exercise of any such Option or upon
conversion or exchange of any convertible securities issuable upon exercise of
any such Option is less than the Applicable Price, then such share of Common
Stock shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the granting or sale of such Option for such price
per share.  For purposes of this Section 8(b)(i), the lowest price per share
for which one share of Common Stock is issuable upon exercise of such Options
or upon conversion or exchange of such Convertible Securities shall be equal
to the sum of the lowest amounts of consideration (if any) received or
receivable by the Company with respect to any one share of Common Stock upon
the granting or sale of the Option, upon exercise of the Option or upon
conversion or exchange of any Convertible Security issuable upon exercise of
such Option.  No further adjustment of the Warrant Exercise Price shall be
made upon the actual issuance of such Common Stock or of such Convertible
Securities upon the exercise of such Options or upon the actual issuance of
such Common Stock upon conversion or exchange of such Convertible Securities.

            (ii)  Issuance of Convertible Securities.  If the Company in any
manner issues or sells any Convertible Securities and the lowest price per
share for which one share of Common Stock is issuable upon the conversion or
exchange thereof is less than the Applicable Price, then such share of Common
Stock shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the issuance or sale of such Convertible Securities
for such price per share.  For the purposes of this Section 8(b)(ii), the
lowest price per share for which one share of Common Stock is issuable upon
such conversion or exchange shall be equal to the sum of the lowest amounts of
consideration (if any) received or receivable by the Company with respect to
one share of Common Stock upon the issuance or sale of the Convertible
Security and upon conversion or exchange of such Convertible Security.  No
further adjustment of the Warrant Exercise Price shall be made upon the actual
issuance of such Common Stock upon conversion or exchange of such Convertible
Securities, and if any such issue or sale of such Convertible Securities is
made upon exercise of any Options for which adjustment of the Warrant Exercise
Price had been or are to be made pursuant to other provisions of this Section
8(b), no further adjustment of the Warrant Exercise Price shall be made by
reason of such issue or sale.

            (iii)  Change in Option Price or Rate of Conversion.  If the
purchase price provided for in any Options, the additional consideration, if
any, payable upon the issue, conversion or exchange of any Convertible
Securities, or the rate at which any Convertible Securities are convertible
into or exchangeable for Common Stock changes at any time, the Warrant
Exercise Price in effect at the time of such change shall be adjusted to the
Warrant Exercise Price which would have been in effect at such time had such
Options or Convertible Securities provided for such changed purchase price,
additional consideration or changed conversion rate, as the case may be, at
the time initially granted, issued or sold and the number of Warrant Shares
issuable upon exercise of this Warrant shall be correspondingly readjusted.
For purposes of this Section 8(b)(iii), if the terms of any Option or
Convertible Security that was outstanding as of the Issuance Date of this
Warrant are changed in the manner described in the immediately preceding
sentence, then such Option or Convertible Security and the Common Stock deemed
issuable upon exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such change.  No adjustment pursuant to this
Section 8(b) shall be made if such adjustment would result in an increase of
the Warrant Exercise Price then in effect.

         (c)  Effect on Warrant Exercise Price of Certain Events.  For
purposes of determining the adjusted Warrant Exercise Price under Sections
8(a) and 8(b), the following shall be applicable:

            (i)  Calculation of Consideration Received.  If any Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, the consideration received therefore will be deemed
to be the net amount received by the Company therefore.  If any Common Stock,
Options or Convertible Securities are issued or sold for a consideration other
than cash, the amount of such consideration received by the Company will be
the fair value of such consideration, except where such consideration consists
of marketable securities, in which case the amount of consideration received
by the Company will be the Market Price of such securities on the date of
receipt of such securities.  If any Common Stock, Options or Convertible
Securities are issued to the owners of the non-surviving entity in connection
with any merger in which the Company is the surviving entity, the amount of
consideration therefore will be deemed to be the fair value of such portion of
the net assets and business of the non-surviving entity as is attributable to
such Common Stock, Options or Convertible Securities, as the case may be.  The
fair value of any consideration other than cash or securities will be
determined jointly by the Company and the holders of Warrants representing at
least two-thirds (2/3) of the Warrant Shares issuable upon exercise of the
Warrants then outstanding.  If such parties are unable to reach agreement
within ten (10) days after the occurrence of an event requiring valuation (the
"Valuation Event"), the fair value of such consideration will be determined
within five (5) Business Days after the tenth (10th) day following the
Valuation Event by an independent, reputable appraiser jointly selected by the
Company and the holders of Warrants representing at least two-thirds (2/3) of
the Warrant Shares issuable upon exercise of the Warrants then outstanding.
The determination of such appraiser shall be final and binding upon all
parties and the fees and expenses of such appraiser shall be borne jointly by
the Company and the holders of Warrants.  The Company and the holders of the
Warrants shall each pay one half (1/2) of the cost of the appraiser.

            (ii)  Integrated Transactions.  In case any Option is issued in
connection with the issue or sale of other securities of the Company, together
comprising one integrated transaction in which no specific consideration is
allocated to such Options by the parties thereto, the Options will be deemed
to have been issued for a consideration of $0.01.

            (iii)  Treasury Shares.  The number of shares of Common Stock
outstanding at any given time does not include shares owned or held by or for
the account of the Company, and the disposition of any shares so owned or held
will be considered an issue or sale of Common Stock.

            (iv)  Record Date.  If the Company takes a record of the holders
of Common Stock for the purpose of entitling them (1) to receive a dividend or
other distribution payable in Common Stock, Options or in Convertible
Securities or (2) to subscribe for or purchase Common Stock, Options or
Convertible Securities, then such record date will be deemed to be the date of
the issue or sale of the shares of Common Stock deemed to have been issued or
sold upon the declaration of such dividend or the making of such other
distribution or the date of the granting of such right of subscription or
purchase, as the case may be.

         (d)  Adjustment of Warrant Exercise Price upon Subdivision or
Combination of Common Stock.  If the Company at any time after the date of
issuance of this Warrant subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares
of Common Stock into a greater number of shares, any Warrant Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced
and the number of shares of Common Stock obtainable upon exercise of this
Warrant will be proportionately increased.  If the Company at any time after
the date of issuance of this Warrant combines (by combination, reverse stock
split or otherwise) one or more classes of its outstanding shares of Common
Stock into a smaller number of shares, any Warrant Exercise Price in effect
immediately prior to such combination will be proportionately increased and
the number of Warrant Shares issuable upon exercise of this Warrant will be
proportionately decreased.  Any adjustment under this Section 8(d) shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

         (e)  Distribution of Assets.  If the Company shall declare or make
any dividend or other distribution of its assets (or rights to acquire its
assets) to holders of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other
securities, property or options by way of a dividend, spin off,
reclassification, corporate rearrangement or other similar transaction) (a
"Distribution"), at any time after the issuance of this Warrant, then, in each
such case:

            (i)  any Warrant Exercise Price in effect immediately prior to the
close of business on the record date fixed for the determination of holders of
Common Stock entitled to receive the Distribution shall be reduced, effective
as of the close of business on such record date, to a price determined by
multiplying such Warrant Exercise Price by a fraction of which (A) the
numerator shall be the Closing Sale Price of the Common Stock on the trading
day immediately preceding such record date minus the value of the Distribution
(as determined in good faith by the Company's Board of Directors) applicable
to one share of Common Stock, and (B) the denominator shall be the Closing
Sale Price of the Common Stock on the trading day immediately preceding such
record date; and

            (ii)  either (A) the number of Warrant Shares obtainable upon
exercise of this Warrant shall be increased to a number of shares equal to the
number of shares of Common Stock obtainable immediately prior to the close of
business on the record date fixed for the determination of holders of Common
Stock entitled to receive the Distribution multiplied by the reciprocal of the
fraction set forth in the immediately preceding clause (i), or (B) in the
event that the Distribution is of common stock of a company whose common stock
is traded on a national securities exchange or a national automated quotation
system, then the holder of this Warrant shall receive an additional warrant to
purchase Common Stock, the terms of which shall be identical to those of this
Warrant, except that such warrant shall be exercisable into the amount of the
assets that would have been payable to the holder of this Warrant pursuant to
the Distribution had the holder exercised this Warrant immediately prior to
such record date and with an exercise price equal to the amount by which the
exercise price of this Warrant was decreased with respect to the Distribution
pursuant to the terms of the immediately preceding clause (i).

         (f)  Certain Events.  If any event occurs of the type contemplated by
the provisions of this Section 8 but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the
Company's Board of Directors will make an appropriate adjustment in the
Warrant Exercise Price and the number of shares of Common Stock obtainable
upon exercise of this Warrant so as to protect the rights of the holders of
the Warrants; provided, except as set forth in section 8(d),that no such
adjustment pursuant to this Section 8(f) will increase the Warrant Exercise
Price or decrease the number of shares of Common Stock obtainable as otherwise
determined pursuant to this Section 8.

         (g)  Notices.

            (i)  Immediately upon any adjustment of the Warrant Exercise
Price, the Company will give written notice thereof to the holder of this
Warrant, setting forth in reasonable detail, and certifying, the calculation
of such adjustment.

            (ii)  The Company will give written notice to the holder of this
Warrant at least ten (10) days prior to the date on which the Company closes
its books or takes a record (A) with respect to any dividend or distribution
upon the Common Stock, (B) with respect to any pro rata subscription offer to
holders of Common Stock or (C) for determining rights to vote with respect to
any Organic Change (as defined below), dissolution or liquidation, provided
that such information shall be made known to the public prior to or in
conjunction with such notice being provided to such holder.

            (iii)  The Company will also give written notice to the holder of
this Warrant at least ten (10) days prior to the date on which any Organic
Change, dissolution or liquidation will take place, provided that such
information shall be made known to the public prior to or in conjunction with
such notice being provided to such holder.

      Section 9.  Purchase Rights; Reorganization, Reclassification,
Consolidation, Merger or Sale.

         (a)  In addition to any adjustments pursuant to Section 8 above, if
at any time the Company grants, issues or sells any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property
pro rata to the record holders of any class of Common Stock (the "Purchase
Rights"), then the holder of this Warrant will be entitled to acquire, upon
the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which such holder could have acquired if such holder had held the number of
shares of Common Stock acquirable upon complete exercise of this Warrant
immediately before the date on which a record is taken for the grant, issuance
or sale of such Purchase Rights, or, if no such record is taken, the date as
of which the record holders of Common Stock are to be determined for the
grant, issue or sale of such Purchase Rights.

         (b)  Any recapitalization, reorganization, reclassification,
consolidation, merger, sale of all or substantially all of the Company's
assets to another Person or other transaction in each case which is effected
in such a way that holders of Common Stock are entitled to receive (either
directly or upon subsequent liquidation) stock, securities or assets with
respect to or in exchange for Common Stock is referred to herein as an
"Organic Change".  Prior to the consummation of any (i) sale of all or
substantially all of the Company's assets to an acquiring Person or (ii) other
Organic Change following which the Company is not a surviving entity, the
Company will secure from the Person purchasing such assets or the successor
resulting from such Organic Change (in each case, the "Acquiring Entity") a
written agreement (in form and substance satisfactory to the holders of
Warrants representing at least two-thirds (2/3) of the Warrant Shares issuable
upon exercise of the Warrants then outstanding) to deliver to each holder of
Warrants in exchange for such Warrants, a security of the Acquiring Entity
evidenced by a written instrument substantially similar in form and substance
to this Warrant and satisfactory to the holders of the Warrants (including an
adjusted warrant exercise price equal to the value for the Common Stock
reflected by the terms of such consolidation, merger or sale, and exercisable
for a corresponding number of shares of Common Stock acquirable and receivable
upon exercise of the Warrants without regard to any limitations on exercise,
if the value so reflected is less than any Applicable Warrant Exercise Price
immediately prior to such consolidation, merger or sale).  Prior to the
consummation of any other Organic Change, the Company shall make appropriate
provision (in form and substance satisfactory to the holders of Warrants
representing a majority of the Warrant Shares issuable upon exercise of the
Warrants then outstanding) to insure that each of the holders of the Warrants
will thereafter have the right to acquire and receive in lieu of or in
addition to (as the case may be) the Warrant Shares immediately theretofore
issuable and receivable upon the exercise of such holder's Warrants (without
regard to any limitations on exercise), such shares of stock, securities or
assets that would have been issued or payable in such Organic Change with
respect to or in exchange for the number of Warrant Shares which would have
been issuable and receivable upon the exercise of such holder's Warrant as of
the date of such Organic Change (without taking into account any limitations
or restrictions on the exercisability of this Warrant).

      Section 10.  Lost, Stolen, Mutilated or Destroyed Warrant.  If this
Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
on receipt of an indemnification undertaking (or, in the case of a mutilated
Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
this Warrant so lost, stolen, mutilated or destroyed.

      Section 11.  Notice.  Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Warrant must be in writing and will be deemed to have been delivered:  (i)
upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of receipt is received by the sending party
transmission is mechanically or electronically generated and kept on file by
the sending party); or (iii) one Business 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 Holder:

                        Mr. Hunter Singer
                        c/o May Davis Group, Inc.
                        1 World Trade Center, Suite 8735
                        New York, NY 10048
                        Telephone: (212) 775-7400
                        Facsimile: (212) 775-8166
     With a copy to:

                        McGuireWoods LLP
                        9 West 57th Street
                        Suite 1620
                        New York, NY 10019
                        Telephone: (212) 548-2166
                        Facsimile: (212) 548-2150
                        Attention: William A. Newman, Esq.

If to the Company:

                        Flexxtech Corporation
                        577 W. Century Boulevard, Suite 767
                        Los Angeles, CA 94010
                        Telephone (310) 342-0794
                        Facsimile: (310) 342-0791
                        Attention: Greg Mardock
     With a copy to:
                        Bell, Nunnally & Martin LLP
                        3232 McKinney Avenue
                        Suite 1400
                        Dallas, TX  75204-2429
                        Telephone: (214) 740-1400
                        Facsimile:  (214) 740-1499
                        Attention:  William E. Swart, Esq.

      If to a holder of this Warrant, to it at the address and facsimile
number set forth in the Purchase Agreement, with copies to such holder's
representatives as set forth in such Purchase Agreement, or at such other
address and facsimile as shall be delivered to the Company upon the issuance
or transfer of this Warrant.

      Each party shall provide five days' prior written notice to the other
party of any change in address or facsimile number.  Written confirmation of
receipt (A) given by the recipient of such notice, consent, facsimile, waiver
or other communication, (or (B) provided by a nationally recognized overnight
delivery service shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service
in accordance with clause (i), (ii) or (iii) above, respectively.

      Section 12.  Date.  The date of this Warrant is the date first set forth
above.  This Warrant, in all events, shall be wholly void and of no effect
after the close of business on the Expiration Date, except that
notwithstanding any other provisions hereof, the provisions of Section 8(b)
shall continue in full force and effect after such date as to any Warrant
Shares or other securities issued upon the exercise of this Warrant.

      Section 13.  Amendment and Waiver.  Except as otherwise provided herein,
the provisions of the Warrants may be amended and the Company may take any
action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company has obtained the written consent of the
holders of Warrants representing at least two-thirds of the Warrant Shares
issuable upon exercise of the Warrants then outstanding; provided that, except
for Section 8(d), no such action may increase the Warrant Exercise Price or
decrease the number of shares or class of stock obtainable upon exercise of
any Warrant without the written consent of the holder of such Warrant.

      Section 14.  Descriptive Headings; Governing Law.  The descriptive
headings of the several sections and paragraphs of this Warrant are inserted
for convenience only and do not constitute a part of this Warrant.  The
corporate laws of the State of New York shall govern all issues concerning the
relative rights of the Company and its stockholders.  All other questions
concerning the construction, validity, enforcement and interpretation of this
Warrant shall be governed by the internal laws of the State of New York,
without giving effect to any choice of law or conflict of law provision or
rule (whether of the State of New York, or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of
New York.

           [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

      IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
its President and Chief Executive Officer, as of this ___ day of August, 2001.

                                FLEXXTECH CORPORATION

                             By:  ______________________________
                             Name:  Greg Mardock
                             Title:  President and Chief Executive Officer
<PAGE>

                       EXHIBIT A TO WARRANT
                        SUBSCRIPTION FORM
 TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT
                      FLEXXTECH CORPORATION

      The undersigned holder hereby exercises the right to purchase One
Hundred and Twelve Thousand Five Hundred (112,500) of the shares of Common
Stock ("Warrant Shares") of Flexxtech Corporation, a Nevada corporation (the
"Company"), evidenced by the attached Warrant (the "Warrant").  Capitalized
terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant.

      1.  Form of Warrant Exercise Price.  The Holder intends that payment of
the Warrant Exercise Price shall be made as:

      ____________    a "Cash Exercise" with respect to _________________
                      Warrant Shares; and/or
____
      _____________   a "Cashless Exercise" with respect to _______________
                      Warrant Shares (to the extent permitted by the terms of
                      the Warrant).

      2.  Payment of Warrant Exercise Price.  In the event that the holder has
elected a Cash Exercise with respect to some or all of the Warrant Shares to
be issued pursuant hereto, the holder shall pay the sum of $__________________
to the Company in accordance with the terms of the Warrant.

      3.  Delivery of Warrant Shares.  The Company shall deliver to the holder
__________ Warrant Shares in accordance with the terms of the Warrant.

Date: _______________ __, ______

   Name of Registered Holder

By:
Name:
Title:

<PAGE>

                       EXHIBIT B TO WARRANT
                      FORM OF WARRANT POWER

     FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to
________________, Federal Identification No. __________, a warrant to purchase
____________ shares of the capital stock of Flexxtech Corporation, a Nevada
corporation, represented by warrant certificate no. _____, standing in the
name of the undersigned on the books of said corporation.  The undersigned
does hereby irrevocably constitute and appoint ______________, attorney to
transfer the warrants of said corporation, with full power of substitution in
the premises.

Dated:  _________, ____

____________________________________
By:  _____________________________
Its:  _____________________________

<PAGE>

                             WARRANT
THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM
REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE
144 UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT.

                      FLEXXTECH CORPORATION

                 WARRANT TO PURCHASE COMMON STOCK

Warrant No.: 2                                       Number of Shares: 30,000
Date of Issuance: September 21, 2001

      Flexxtech Corporation (the "Company"), a corporation incorporated under
the laws of the State of Nevada, hereby certifies that, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Shay Keren, the registered holder hereof, or his permitted assigns (the
"Holder"), is entitled, subject to the terms set forth below, to purchase from
the Company upon surrender of this Warrant, at any time or times on or after
the date hereof, but not after 11:59 P.M. Eastern Time on the Expiration Date
(as defined herein) 30,000 fully paid and nonassessable shares of Common Stock
(as defined herein) of the Company (the "Warrant Shares") at the Warrant
Exercise Price as defined in Section 1(a)(xvii) below.

      Section 1.

         (a)  Definitions.  The following words and terms as used in this
Warrant shall have the following meanings:

            (i)   "Approved Stock Plan" means any employee benefit plan which
has been approved by the Board of Directors of the Company, pursuant to which
the Company's securities may be issued to any consultants, employee, officer
or director for services provided to the Company.

            (ii)   "Business Day" means any day other than Saturday, Sunday or
other day on which commercial banks in the City of New York are authorized or
required by law to remain closed.

            (iii)  "Closing Bid Price" means the closing bid price of Common
Stock as quoted on the Principal Market (as reported by Bloomberg Financial
Markets ("Bloomberg") through its "Volume at Price" function).

            (iv)  "Closing Date" has the meaning given it in the Securities
Purchase Agreement.

            (v)  "Common Stock" means (i) the Company's common stock, par
value $.001 per share, and (ii) any capital stock into which such Common Stock
shall have been changed or any capital stock resulting from a reclassification
of such Common Stock.

            (vi)   "Excluded Securities" means, if such security is issued at
a price which is greater than or equal to the arithmetic average of the
Closing Bid Prices of the Common Stock for the ten (10) consecutive trading
days immediately preceding the date of issuance, any of the following: (a) any
issuance by the Company of securities in connection with a strategic
partnership or a joint venture (the primary purpose of which is not to raise
equity capital), (b) any issuance by the Company of securities as
consideration for a merger or consolidation or the acquisition of a business,
product, license, or other assets of another person or entity and (c) options
to purchase shares of Common Stock, provided, that such options are issued in
accordance with the applicable terms and conditions of the plan authorizing
the same.

            (vii)  "Expiration Date" means the date two (2) years from the
Issuance Date or, if such date falls on a Saturday, Sunday or other day on
which banks are required or authorized to be closed in the City of New York or
the State of New York or on which trading does not take place on the Principal
Exchange or automated quotation system on which the Common Stock is traded (a
"Holiday"), the next date that is not a Holiday.

            (viii)   "Issuance Date" means the date of this Warrant.

            (ix)  "Registration Rights Agreement" means the Registration
Rights Agreement dated, as of August 14, 2001, between the Company and the
Persons named on Schedule A thereto with respect to the registration rights
pertaining to the Common Stock issuable upon exercise of this Warrant.

            (x)   "Options" means any rights, warrants or options to subscribe
for or purchase Common Stock or Convertible Securities.

            (xi)   "Other Securities" means (i) those options and warrants of
the Company issued prior to, and outstanding on, the Issuance Date, (ii) the
shares of Common Stock issuable on exercise of such options and warrants,
provided such options and warrants are not amended after the Issuance Date,
(iii) the shares of Common Stock issuable upon exercise of this Warrant and
(iv) those commitments to issue shares of Common Stock or securities
convertible into shares of Common Stock that are described on Schedule 4.3 to
the Equity Line of Credit Agreement dated the date hereof between the Company
and the Investors named therein.

            (xii)   "Person" means an individual, a limited liability company,
a partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a government or any department or agency thereof.

            (xiii)   "Principal Market" means the New York Stock Exchange, the
American Stock Exchange, the Nasdaq National Market, the Nasdaq SmallCap
Market, whichever is at the time the principal trading exchange or market for
such security, or the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg or, if no bid or sale information
is reported for such security by Bloomberg on the electronic bulletin board,
then the "pink sheets" distributed by the National Quotation Bureau, Inc.

            (xiv)   "Securities Act" means the Securities Act of 1933, as
amended.

            (xv)  "Securities Purchase Agreement" means the Securities
Purchase Agreement, dated as of August 14, 2001, between the Company and the
Investors named therein for the purchase of Convertible Debentures by the
Investors.

            (xvi)   "Warrant" means this Warrant and all Warrants issued in
exchange, transfer or replacement thereof.

            (xvii)   "Warrant Exercise Price" shall be $1.80 per share.

            (xviii)  "Warrant Shares" means the shares of Common Stock
issuable at any time upon exercise of this Warrant.

         (b)  Other Definitional Provisions.

            (i)  Except as otherwise specified herein, all references herein
(A) to the Company shall be deemed to include the Company's successors and (B)
to any applicable law defined or referred to herein shall be deemed references
to such applicable law as the same may have been or may be amended or
supplemented from time to time.

            (ii)  When used in this Warrant, the words "herein", "hereof", and
"hereunder" and words of similar import, shall refer to this Warrant as a
whole and not to any provision of this Warrant, and the words "Section",
"Schedule", and "Exhibit" shall refer to Sections of, and Schedules and
Exhibits to, this Warrant unless otherwise specified.

            (iii)  Whenever the context so requires, the neuter gender
includes the masculine or feminine, and the singular number includes the
plural, and vice versa.

      Section 2.  Exercise of Warrant.

         (a)  Subject to the terms and conditions hereof, this Warrant may be
exercised by the holder hereof then registered on the books of the Company,
pro rata as hereinafter provided, at any time on any Business Day on or after
the opening of business on such Business Day, commencing with the first day
after the Issuance Date, and prior to 11:59 P.M. Eastern Time on the
Expiration Date, by (i) delivery of a written notice, in the form of the
subscription notice attached as Exhibit A hereto (the "Exercise Notice"), of
such holder's election to exercise this Warrant, which notice shall specify
the number of Warrant Shares to be purchased, (ii) (A) payment to the Company
of an amount equal to the Warrant Exercise Price(s) applicable to the Warrant
Shares being purchased, multiplied by the number of Warrant Shares (at the
applicable Warrant Exercise Price) as to which this Warrant is being exercised
(plus any applicable issue or transfer taxes) (the "Aggregate Exercise Price")
in cash or wire transfer of immediately available funds or (B) notification to
the Company that this Warrant is being exercised pursuant to a Cashless
Exercise (as defined in Section 2(f)) and (iii) the surrender of this Warrant
(or an indemnification undertaking with respect to this Warrant in the case of
its loss, theft or destruction) to a common carrier for overnight delivery to
the Company as soon as practicable following such date.  In the event of any
exercise of the rights represented by this Warrant in compliance with this
Section 2(a), the Company shall on the fifth (5th) Business Day following the
date of receipt of the Exercise Notice, the Aggregate Exercise Price (or
notice of a Cashless Exercise) and this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or
destruction) and, except for a Cashless Exercise, the receipt of the
representations of the holder specified in Section 6 hereof, if requested by
the Company (the "Exercise Delivery Documents"), and if the Common Stock is
DTC eligible credit such aggregate number of shares of Common Stock to which
the holder shall be entitled to the holder's or its designee's balance account
with The Depository Trust Company; provided, that if the holder who submitted
the Exercise Notice has requested physical delivery of any or all of the
Warrant Shares, or, if the Common Stock is not DTC eligible  then the Company
shall, on or before the fifth (5th) Business Day following receipt of the
Exercise Delivery Documents, issue and surrender to a common carrier for
overnight delivery to the address specified in the Exercise Notice, a
certificate, registered in the name of the holder, for the number of shares of
Common Stock to which the holder shall be entitled pursuant to such request.
Upon delivery of the Exercise Notice and Aggregate Exercise Price referred to
in clause (ii)(A) above or notification to the Company of a Cashless Exercise
referred to in Section 2(f), the holder of this Warrant shall be deemed for
all corporate purposes to have become the holder of record of the Warrant
Shares with respect to which this Warrant has been exercised.  In the case of
a dispute as to the determination of the Warrant Exercise Price, the Closing
Bid Price or the arithmetic calculation of the Warrant Shares, the Company
shall promptly issue to the holder the number of Warrant Shares that is not
disputed and shall submit the disputed determinations or arithmetic
calculations to the holder via facsimile within three (3) Business Day of
receipt of the holder's Exercise Notice.  If the holder and the Company are
unable to agree upon the determination of the Warrant Exercise Price or
arithmetic calculation of the Warrant Shares within one (1) day of such
disputed determination or arithmetic calculation being submitted to the
holder, then the Company shall immediately submit via facsimile (i) the
disputed determination of the Warrant Exercise Price or the Closing Bid Price
to an independent, reputable investment banking firm or (ii) the disputed
arithmetic calculation of the Warrant Shares to its independent, outside
accountant   The Company shall cause the investment banking firm or the
accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the holder of the results no later than five (5)
business days from the time it receives the disputed determinations or
calculations.  Such investment banking firm's or accountant's determination or
calculation, as the case may be, shall be deemed conclusive absent manifest
error.

         (b)  Unless the rights represented by this Warrant shall have expired
or shall have been fully exercised, the Company shall, as soon as practicable
and in no event later than five (5) Business Days after any exercise and at
its own expense, issue a new Warrant identical in all respects to this Warrant
exercised except it shall represent rights to purchase the number of Warrant
Shares purchasable immediately prior to such exercise under this Warrant
exercised, less the number of Warrant Shares with respect to which such
Warrant is exercised.

         (c)  No fractional Warrant Shares are to be issued upon any pro rata
exercise of this Warrant, but rather the number of Warrant Shares issued upon
such exercise of this Warrant shall be rounded up or down to the nearest whole
number.

         (d)  If the Company or its transfer agent shall fail for any reason
or for no reason to issue to the holder within ten (10) Business Days of
receipt of the Exercise Delivery Documents, a certificate for the number of
Warrant Shares to which the holder is entitled or to credit the holder's
balance account with The Depository Trust Company for such number of Warrant
Shares to which the holder is entitled upon the holder's exercise of this
Warrant, the Company shall, in addition to any other remedies under this
Warrant or the Placement Agent Agreement or otherwise available to such
holder, pay as additional damages in cash to such holder on each day the
issuance of such certificate for Warrant Shares is not timely effected an
amount equal to 0.5% of the product of (A) the sum of the number of Warrant
Shares not issued to the holder on a timely basis and to which the holder is
entitled, and (B) the Closing Bid Price of the Common Stock for the trading
day immediately preceding the last possible date which the Company could have
issued such Common Stock to the holder without violating this Section 2.

         (e)  If within ten (10)  Business Days after the Company's receipt of
the Exercise Delivery Documents, the Company fails to deliver a new Warrant to
the holder for the number of Warrant Shares to which such holder is entitled
pursuant to Section 2(b) hereof, then, in addition to any other available
remedies under this Warrant or the Placement Agent Agreement, or otherwise
available to such holder, the Company shall pay as additional damages in cash
to such holder on each day after such  tenth  (10th) Business Day that such
delivery of such new Warrant is not timely effected in an amount equal to
0.25% of the product of (A) the number of Warrant Shares represented by the
portion of this Warrant which is not being exercised and (B) the Closing Bid
Price of the Common Stock for the trading day immediately preceding the last
possible date which the Company could have issued such Warrant to the holder
without violating this Section 2.

         (f)  Notwithstanding any provision of this Warrant, the holder of
this Warrant may, at its election exercised in its sole discretion, exercise
this Warrant to the extent then exercisable, and in lieu of making payment of
the Aggregate Exercise Price in cash, elect instead to receive upon such
exercise the "Net Number" of shares of Common Stock determined according to
the following formula (a "Cashless Exercise"):

      Net Number = (A x B) - (A x C)
                    ----------------
                           B

      For purposes of the foregoing formula:

          A= the total number of Warrant Shares with respect to which this
          Warrant is then being exercised.

          B= the Closing Bid Price of the Common Stock on the date of exercise
          of the Warrant.

          C= the Warrant Exercise Price then in effect for the applicable
          Warrant Shares at the time of such exercise.

      Section 3.  Covenants as to Common Stock.  The Company hereby covenants
and agrees as follows:

         (a)  This Warrant is, and any Warrants issued in substitution for or
replacement of this Warrant will upon issuance be, duly authorized and validly
issued.

         (b)  All Warrant Shares which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be validly issued,
fully paid and nonassessable and free from all taxes, liens and charges with
respect to the issue thereof.

         (c)  During the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized and
reserved at least 100% of the number of shares of Common Stock needed to
provide for the exercise of the rights then represented by this Warrant and
the par value of said shares will at all times be less than or equal to the
applicable Warrant Exercise Price.

         (d)  The Company shall promptly file a registration statement with
the Securities and Exchange Commission to secure the listing of the Warrant
Shares on the Principal Market in accordance with the terms and conditions
regarding the registration rights of holders of Warrants set forth in the
Registration Rights Agreement and shall maintain, so long as any other shares
of Common Stock shall be so listed, such listing of all Warrant Shares from
time to time issuable upon the exercise of this Warrant; and the Company shall
so list on each national securities exchange or automated quotation system, as
the case may be, and shall maintain such listing of, any other shares of
capital stock of the Company issuable upon the exercise of this Warrant if and
so long as any shares of the same class shall be listed on such national
securities exchange or automated quotation system.

         (e)  The Company will not, by amendment of its Articles of
Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed by it hereunder, but will at all
times in good faith assist in the carrying out of all the provisions of this
Warrant and in the taking of all such action as may reasonably be requested by
the holder of this Warrant in order to protect the exercise privilege of the
holder of this Warrant against dilution or other impairment, consistent with
the tenor and purpose of this Warrant.  The Company will not (i) increase the
par value of any shares of Common Stock receivable upon the exercise of this
Warrant above the Warrant Exercise Price then in effect, and (ii) will take
all such actions as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable shares of Common
Stock upon the exercise of this Warrant.

         (f)  This Warrant will be binding upon any entity succeeding to the
Company by merger, consolidation or acquisition of all or substantially all of
the Company's assets.

      Section 4.  Taxes.  The Company shall pay any and all taxes, except any
applicable withholding, which may be payable with respect to the issuance and
delivery of Warrant Shares upon exercise of this Warrant.

      Section 5.  Warrant Holder Not Deemed a Stockholder.  Except as
otherwise specifically provided herein, no holder, as such, of this Warrant
shall be entitled to vote or receive dividends or be deemed the holder of
shares of capital stock of the Company for any purpose, nor shall anything
contained in this Warrant be construed to confer upon the holder hereof, as
such, any of the rights of a stockholder of the Company or any right to vote,
give or withhold consent to any corporate action (whether any reorganization,
issue of stock, reclassification of stock, consolidation, merger, conveyance
or otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the holder of this Warrant of
the Warrant Shares which he or she is then entitled to receive upon the due
exercise of this Warrant.  In addition, nothing contained in this Warrant
shall be construed as imposing any liabilities on such holder to purchase any
securities (upon exercise of this Warrant or otherwise) or as a stockholder of
the Company, whether such liabilities are asserted by the Company or by
creditors of the Company.  Notwithstanding this Section 5, the Company will
provide the holder of this Warrant with copies of the same written notices and
other information given to the stockholders of the Company generally,
contemporaneously with the giving thereof to the stockholders.

      Section 6.  Representations of Holder.  The holder of this Warrant, by
the acceptance hereof, represents that it is acquiring this Warrant and the
Warrant Shares for its own account for investment only and not with a view
towards, or for resale in connection with, the public sale or distribution of
this Warrant or the Warrant Shares, except pursuant to sales registered or
exempted under the Securities Act; provided, however, that by making the
representations herein, the holder does not agree to hold this Warrant or any
of the Warrant Shares for any minimum or other specific term and reserves the
right to dispose of this Warrant and the Warrant Shares at any time in
accordance with or pursuant to a registration statement or an exemption under
the Securities Act.  The holder of this Warrant further represents, by
acceptance hereof, that, as of this date, such holder is an "accredited
investor" as such term is defined in Rule 501(a)(1) of Regulation D
promulgated by the Securities and Exchange Commission under the Securities Act
(an "Accredited Investor").  Upon exercise of this Warrant, other than
pursuant to a Cashless Exercise, the holder shall, if requested by the
Company, confirm in writing, in a form satisfactory to the Company, that the
Warrant Shares so purchased are being acquired solely for the holder's own
account and not as a nominee for any other party, for investment, and not with
a view toward distribution or resale and that such holder is an Accredited
Investor.  If such holder cannot make such representations because they would
be factually incorrect, it shall be a condition to such holder's exercise of
this Warrant, other than pursuant to a Cashless Exercise, that the Company
receive such other representations as the Company considers reasonably
necessary to assure the Company that the issuance of its securities upon
exercise of this Warrant shall not violate any United States or state
securities laws.

      Section 7.  Ownership and Transfer.

         (a)  The Company shall maintain at its principal executive offices
(or such other office or agency of the Company as it may designate by notice
to the holder hereof), a register for this Warrant, in which the Company shall
record the name and address of the person in whose name this Warrant has been
issued, as well as the name and address of each transferee.  The Company may
treat the person in whose name any Warrant is registered on the register as
the owner and holder thereof for all purposes, notwithstanding any notice to
the contrary, but in all events recognizing any transfers made in accordance
with the terms of this Warrant.

         (b)  The Company is obligated to register the Warrant Shares for
resale under the Securities Act pursuant to the Registration Rights Agreement
and the initial holder of this Warrant (and certain assignees thereof) is
entitled to the registration rights in respect of the Warrant Shares as set
forth in the Registration Rights Agreement.

      Section 8.  Adjustment of Warrant Exercise Price and Number of Shares.
The Warrant Exercise Price and the number of shares of Common Stock issuable
upon exercise of this Warrant shall be adjusted from time to time as follows:

         (a)  Adjustment of Warrant Exercise Price and Number of Shares upon
Issuance of Common Stock.  If and whenever on or after the Issuance Date of
this Warrant, the Company issues or sells, or is deemed to have issued or
sold, any shares of Common Stock (other than (i) Excluded Securities and (ii)
shares of Common Stock which are issued or deemed to have been issued by the
Company in connection with an Approved Stock Plan or upon exercise or
conversion of the Other Securities) for a consideration per share less than a
price (the "Applicable Price") equal to the Warrant Exercise Price in effect
immediately prior to such issuance or sale, then immediately after such issue
or sale the Warrant Exercise Price then in effect shall be reduced to an
amount equal to such consideration per share.  Upon each such adjustment of
the Warrant Exercise Price hereunder, the number of Warrant Shares issuable
upon exercise of this Warrant shall be adjusted to the number of shares
determined by multiplying the Warrant Exercise Price in effect immediately
prior to such adjustment by the number of Warrant Shares issuable upon
exercise of this Warrant immediately prior to such adjustment and dividing the
product thereof by the Warrant Exercise Price resulting from such  adjustment.

        (b)  Effect on Warrant Exercise Price of Certain Events.  For purposes
of determining the adjusted Warrant Exercise Price under Section 8(a) above,
the following shall be applicable:

            (i)  Issuance of Options.  If after the date hereof,  the Company
in any manner grants any Options and the lowest price per share for which one
share of Common Stock is issuable upon the exercise of any such Option or upon
conversion or exchange of any convertible securities issuable upon exercise of
any such Option is less than the Applicable Price, then such share of Common
Stock shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the granting or sale of such Option for such price
per share.  For purposes of this Section 8(b)(i), the lowest price per share
for which one share of Common Stock is issuable upon exercise of such Options
or upon conversion or exchange of such Convertible Securities shall be equal
to the sum of the lowest amounts of consideration (if any) received or
receivable by the Company with respect to any one share of Common Stock upon
the granting or sale of the Option, upon exercise of the Option or upon
conversion or exchange of any Convertible Security issuable upon exercise of
such Option.  No further adjustment of the Warrant Exercise Price shall be
made upon the actual issuance of such Common Stock or of such Convertible
Securities upon the exercise of such Options or upon the actual issuance of
such Common Stock upon conversion or exchange of such Convertible Securities.

            (ii)  Issuance of Convertible Securities.  If the Company in any
manner issues or sells any Convertible Securities and the lowest price per
share for which one share of Common Stock is issuable upon the conversion or
exchange thereof is less than the Applicable Price, then such share of Common
Stock shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the issuance or sale of such Convertible Securities
for such price per share.  For the purposes of this Section 8(b)(ii), the
lowest price per share for which one share of Common Stock is issuable upon
such conversion or exchange shall be equal to the sum of the lowest amounts of
consideration (if any) received or receivable by the Company with respect to
one share of Common Stock upon the issuance or sale of the Convertible
Security and upon conversion or exchange of such Convertible Security.  No
further adjustment of the Warrant Exercise Price shall be made upon the actual
issuance of such Common Stock upon conversion or exchange of such Convertible
Securities, and if any such issue or sale of such Convertible Securities is
made upon exercise of any Options for which adjustment of the Warrant Exercise
Price had been or are to be made pursuant to other provisions of this Section
8(b), no further adjustment of the Warrant Exercise Price shall be made by
reason of such issue or sale.

            (iii)  Change in Option Price or Rate of Conversion.  If the
purchase price provided for in any Options, the additional consideration, if
any, payable upon the issue, conversion or exchange of any Convertible
Securities, or the rate at which any Convertible Securities are convertible
into or exchangeable for Common Stock changes at any time, the Warrant
Exercise Price in effect at the time of such change shall be adjusted to the
Warrant Exercise Price which would have been in effect at such time had such
Options or Convertible Securities provided for such changed purchase price,
additional consideration or changed conversion rate, as the case may be, at
the time initially granted, issued or sold and the number of Warrant Shares
issuable upon exercise of this Warrant shall be correspondingly readjusted.
For purposes of this Section 8(b)(iii), if the terms of any Option or
Convertible Security that was outstanding as of the Issuance Date of this
Warrant are changed in the manner described in the immediately preceding
sentence, then such Option or Convertible Security and the Common Stock deemed
issuable upon exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such change.  No adjustment pursuant to this
Section 8(b) shall be made if such adjustment would result in an increase of
the Warrant Exercise Price then in effect.

         (c)  Effect on Warrant Exercise Price of Certain Events.  For
purposes of determining the adjusted Warrant Exercise Price under Sections
8(a) and 8(b), the following shall be applicable:

            (i)  Calculation of Consideration Received.  If any Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, the consideration received therefore will be deemed
to be the net amount received by the Company therefore.  If any Common Stock,
Options or Convertible Securities are issued or sold for a consideration other
than cash, the amount of such consideration received by the Company will be
the fair value of such consideration, except where such consideration consists
of marketable securities, in which case the amount of consideration received
by the Company will be the Market Price of such securities on the date of
receipt of such securities.  If any Common Stock, Options or Convertible
Securities are issued to the owners of the non-surviving entity in connection
with any merger in which the Company is the surviving entity, the amount of
consideration therefore will be deemed to be the fair value of such portion of
the net assets and business of the non-surviving entity as is attributable to
such Common Stock, Options or Convertible Securities, as the case may be.  The
fair value of any consideration other than cash or securities will be
determined jointly by the Company and the holders of Warrants representing at
least two-thirds (2/3) of the Warrant Shares issuable upon exercise of the
Warrants then outstanding.  If such parties are unable to reach agreement
within ten (10) days after the occurrence of an event requiring valuation (the
"Valuation Event"), the fair value of such consideration will be determined
within five (5) Business Days after the tenth (10th) day following the
Valuation Event by an independent, reputable appraiser jointly selected by the
Company and the holders of Warrants representing at least two-thirds (2/3) of
the Warrant Shares issuable upon exercise of the Warrants then outstanding.
The determination of such appraiser shall be final and binding upon all
parties and the fees and expenses of such appraiser shall be borne jointly by
the Company and the holders of Warrants.  The Company and the holders of the
Warrants shall each pay one half (1/2) of the cost of the appraiser.

            (ii)  Integrated Transactions.  In case any Option is issued in
connection with the issue or sale of other securities of the Company, together
comprising one integrated transaction in which no specific consideration is
allocated to such Options by the parties thereto, the Options will be deemed
to have been issued for a consideration of $0.01.

            (iii)  Treasury Shares.  The number of shares of Common Stock
outstanding at any given time does not include shares owned or held by or for
the account of the Company, and the disposition of any shares so owned or held
will be considered an issue or sale of Common Stock.

            (iv)  Record Date.  If the Company takes a record of the holders
of Common Stock for the purpose of entitling them (1) to receive a dividend or
other distribution payable in Common Stock, Options or in Convertible
Securities or (2) to subscribe for or purchase Common Stock, Options or
Convertible Securities, then such record date will be deemed to be the date of
the issue or sale of the shares of Common Stock deemed to have been issued or
sold upon the declaration of such dividend or the making of such other
distribution or the date of the granting of such right of subscription or
purchase, as the case may be.

         (d)  Adjustment of Warrant Exercise Price upon Subdivision or
Combination of Common Stock.  If the Company at any time after the date of
issuance of this Warrant subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares
of Common Stock into a greater number of shares, any Warrant Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced
and the number of shares of Common Stock obtainable upon exercise of this
Warrant will be proportionately increased.  If the Company at any time after
the date of issuance of this Warrant combines (by combination, reverse stock
split or otherwise) one or more classes of its outstanding shares of Common
Stock into a smaller number of shares, any Warrant Exercise Price in effect
immediately prior to such combination will be proportionately increased and
the number of Warrant Shares issuable upon exercise of this Warrant will be
proportionately decreased.  Any adjustment under this Section 8(d) shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

         (e)  Distribution of Assets.  If the Company shall declare or make
any dividend or other distribution of its assets (or rights to acquire its
assets) to holders of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other
securities, property or options by way of a dividend, spin off,
reclassification, corporate rearrangement or other similar transaction) (a
"Distribution"), at any time after the issuance of this Warrant, then, in each
such case:

            (i)  any Warrant Exercise Price in effect immediately prior to the
close of business on the record date fixed for the determination of holders of
Common Stock entitled to receive the Distribution shall be reduced, effective
as of the close of business on such record date, to a price determined by
multiplying such Warrant Exercise Price by a fraction of which (A) the
numerator shall be the Closing Sale Price of the Common Stock on the trading
day immediately preceding such record date minus the value of the Distribution
(as determined in good faith by the Company's Board of Directors) applicable
to one share of Common Stock, and (B) the denominator shall be the Closing
Sale Price of the Common Stock on the trading day immediately preceding such
record date; and

            (ii)  either (A) the number of Warrant Shares obtainable upon
exercise of this Warrant shall be increased to a number of shares equal to the
number of shares of Common Stock obtainable immediately prior to the close of
business on the record date fixed for the determination of holders of Common
Stock entitled to receive the Distribution multiplied by the reciprocal of the
fraction set forth in the immediately preceding clause (i), or (B) in the
event that the Distribution is of common stock of a company whose common stock
is traded on a national securities exchange or a national automated quotation
system, then the holder of this Warrant shall receive an additional warrant to
purchase Common Stock, the terms of which shall be identical to those of this
Warrant, except that such warrant shall be exercisable into the amount of the
assets that would have been payable to the holder of this Warrant pursuant to
the Distribution had the holder exercised this Warrant immediately prior to
such record date and with an exercise price equal to the amount by which the
exercise price of this Warrant was decreased with respect to the Distribution
pursuant to the terms of the immediately preceding clause (i).

         (f)  Certain Events.  If any event occurs of the type contemplated by
the provisions of this Section 8 but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the
Company's Board of Directors will make an appropriate adjustment in the
Warrant Exercise Price and the number of shares of Common Stock obtainable
upon exercise of this Warrant so as to protect the rights of the holders of
the Warrants; provided, except as set forth in section 8(d),that no such
adjustment pursuant to this Section 8(f) will increase the Warrant Exercise
Price or decrease the number of shares of Common Stock obtainable as otherwise
determined pursuant to this Section 8.

         (g)  Notices.

            (i)  Immediately upon any adjustment of the Warrant Exercise
Price, the Company will give written notice thereof to the holder of this
Warrant, setting forth in reasonable detail, and certifying, the calculation
of such adjustment.

            (ii)  The Company will give written notice to the holder of this
Warrant at least ten (10) days prior to the date on which the Company closes
its books or takes a record (A) with respect to any dividend or distribution
upon the Common Stock, (B) with respect to any pro rata subscription offer to
holders of Common Stock or (C) for determining rights to vote with respect to
any Organic Change (as defined below), dissolution or liquidation, provided
that such information shall be made known to the public prior to or in
conjunction with such notice being provided to such holder.

            (iii)  The Company will also give written notice to the holder of
this Warrant at least ten (10) days prior to the date on which any Organic
Change, dissolution or liquidation will take place, provided that such
information shall be made known to the public prior to or in conjunction with
such notice being provided to such holder.

      Section 9.  Purchase Rights; Reorganization, Reclassification,
Consolidation, Merger or Sale.

         (a)  In addition to any adjustments pursuant to Section 8 above, if
at any time the Company grants, issues or sells any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property
pro rata to the record holders of any class of Common Stock (the "Purchase
Rights"), then the holder of this Warrant will be entitled to acquire, upon
the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which such holder could have acquired if such holder had held the number of
shares of Common Stock acquirable upon complete exercise of this Warrant
immediately before the date on which a record is taken for the grant, issuance
or sale of such Purchase Rights, or, if no such record is taken, the date as
of which the record holders of Common Stock are to be determined for the
grant, issue or sale of such Purchase Rights.

         (b)  Any recapitalization, reorganization, reclassification,
consolidation, merger, sale of all or substantially all of the Company's
assets to another Person or other transaction in each case which is effected
in such a way that holders of Common Stock are entitled to receive (either
directly or upon subsequent liquidation) stock, securities or assets with
respect to or in exchange for Common Stock is referred to herein as an
"Organic Change".  Prior to the consummation of any (i) sale of all or
substantially all of the Company's assets to an acquiring Person or (ii) other
Organic Change following which the Company is not a surviving entity, the
Company will secure from the Person purchasing such assets or the successor
resulting from such Organic Change (in each case, the "Acquiring Entity") a
written agreement (in form and substance satisfactory to the holders of
Warrants representing at least two-thirds (2/3) of the Warrant Shares issuable
upon exercise of the Warrants then outstanding) to deliver to each holder of
Warrants in exchange for such Warrants, a security of the Acquiring Entity
evidenced by a written instrument substantially similar in form and substance
to this Warrant and satisfactory to the holders of the Warrants (including an
adjusted warrant exercise price equal to the value for the Common Stock
reflected by the terms of such consolidation, merger or sale, and exercisable
for a corresponding number of shares of Common Stock acquirable and receivable
upon exercise of the Warrants without regard to any limitations on exercise,
if the value so reflected is less than any Applicable Warrant Exercise Price
immediately prior to such consolidation, merger or sale).  Prior to the
consummation of any other Organic Change, the Company shall make appropriate
provision (in form and substance satisfactory to the holders of Warrants
representing a majority of the Warrant Shares issuable upon exercise of the
Warrants then outstanding) to insure that each of the holders of the Warrants
will thereafter have the right to acquire and receive in lieu of or in
addition to (as the case may be) the Warrant Shares immediately theretofore
issuable and receivable upon the exercise of such holder's Warrants (without
regard to any limitations on exercise), such shares of stock, securities or
assets that would have been issued or payable in such Organic Change with
respect to or in exchange for the number of Warrant Shares which would have
been issuable and receivable upon the exercise of such holder's Warrant as of
the date of such Organic Change (without taking into account any limitations
or restrictions on the exercisability of this Warrant).

    Section 10.  Lost, Stolen, Mutilated or Destroyed Warrant.  If this
Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
on receipt of an indemnification undertaking (or, in the case of a mutilated
Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
this Warrant so lost, stolen, mutilated or destroyed.
Section 25.  Notice.  Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Warrant must be in
writing and will be deemed to have been delivered:  (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of receipt is received by the sending party transmission is
mechanically or electronically generated and kept on file by the sending
party); or (iii) one Business 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 Holder:

              Mr. Hunter Singer
              c/o May Davis Group, Inc.
              1 World Trade Center, Suite 8735
              New York, NY 10048
              Telephone: (212) 775-7400
              Facsimile: (212) 775-8166

         With a copy to:

              McGuireWoods LLP
              9 West 57th Street
              Suite 1620
              New York, NY 10019
              Telephone: (212) 548-2166
              Facsimile: (212) 548-2150
              Attention: William A. Newman, Esq.

         If to the Company:

              Flexxtech Corporation
              577 W. Century Boulevard, Suite 767
              Los Angeles, CA 94010
              Telephone (310) 342-0794
              Facsimile: (310) 342-0791
              Attention: Greg Mardock

         With a copy to:

              Bell, Nunnally & Martin LLP
              3232 McKinney Avenue
              Suite 1400
              Dallas, TX  75204-2429
              Telephone: (214) 740-1400
              Facsimile:  (214) 740-1499
              Attention:  William E. Swart, Esq.

      If to a holder of this Warrant, to it at the address and facsimile
number set forth in the Purchase Agreement, with copies to such holder's
representatives as set forth in such Purchase Agreement, or at such other
address and facsimile as shall be delivered to the Company upon the issuance
or transfer of this Warrant.

      Each party shall provide five days' prior written notice to the other
party of any change in address or facsimile number.  Written confirmation of
receipt (A) given by the recipient of such notice, consent, facsimile, waiver
or other communication, (or (B) provided by a nationally recognized overnight
delivery service shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service
in accordance with clause (i), (ii) or (iii) above, respectively.

      Section 12.  Date.  The date of this Warrant is the date first set forth
above.  This Warrant, in all events, shall be wholly void and of no effect
after the close of business on the Expiration Date, except that
notwithstanding any other provisions hereof, the provisions of Section 8(b)
shall continue in full force and effect after such date as to any Warrant
Shares or other securities issued upon the exercise of this Warrant.

      Section 13.  Amendment and Waiver.  Except as otherwise provided herein,
the provisions of the Warrants may be amended and the Company may take any
action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company has obtained the written consent of the
holders of Warrants representing at least two-thirds of the Warrant Shares
issuable upon exercise of the Warrants then outstanding; provided that, except
for Section 8(d), no such action may increase the Warrant Exercise Price or
decrease the number of shares or class of stock obtainable upon exercise of
any Warrant without the written consent of the holder of such Warrant.

      Section 14.  Descriptive Headings; Governing Law.  The descriptive
headings of the several sections and paragraphs of this Warrant are inserted
for convenience only and do not constitute a part of this Warrant.  The
corporate laws of the State of New York shall govern all issues concerning the
relative rights of the Company and its stockholders.  All other questions
concerning the construction, validity, enforcement and interpretation of this
Warrant shall be governed by the internal laws of the State of New York,
without giving effect to any choice of law or conflict of law provision or
rule (whether of the State of New York, or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of
New York.

           [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

      IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
its President and Chief Executive Officer, as of this ___ day of August, 2001.

                            FLEXXTECH CORPORATION

                       By:  ______________________________
                       Name:  Greg Mardock
                       Title:  President and Chief Executive Officer

<PAGE>

<PAGE>
                       EXHIBIT A TO WARRANT

                        SUBSCRIPTION FORM
 TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT
                      FLEXXTECH CORPORATION

      The undersigned holder hereby exercises the right to purchase Thirty
Thousand (30,000) of the shares of Common Stock ("Warrant Shares") of
Flexxtech Corporation, a Nevada corporation (the "Company"), evidenced by the
attached Warrant (the "Warrant").  Capitalized terms used herein and not
otherwise defined shall have the respective meanings set forth in the Warrant.

    1.  Form of Warrant Exercise Price.  The Holder intends that payment of
the Warrant Exercise Price shall be made as:

           ____________    a "Cash Exercise" with respect to________________
                              Warrant Shares; and/or

           ____________    a "Cashless Exercise" with respect to____________
              _______________ Warrant Shares (to the extent permitted by the
                              terms of the Warrant).

    2.  Payment of Warrant Exercise Price.  In the event that the holder has
elected a Cash Exercise with respect to some or all of the Warrant Shares to
be issued pursuant hereto, the holder shall pay the sum of $________________
to the Company in accordance with the terms of the Warrant.

    3.  Delivery of Warrant Shares.  The Company shall deliver to the holder
__________ Warrant Shares in accordance with the terms of the Warrant.

Date: _______________ __, ______

   Name of Registered Holder

By:
Name:
Title:

<PAGE>

                       EXHIBIT B TO WARRANT
                      FORM OF WARRANT POWER

     FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to
________________, Federal Identification No. __________, a warrant to purchase
____________ shares of the capital stock of Flexxtech Corporation, a Nevada
corporation, represented by warrant certificate no. _____, standing in the
name of the undersigned on the books of said corporation.  The undersigned
does hereby irrevocably constitute and appoint ______________, attorney to
transfer the warrants of said corporation, with full power of substitution in
the premises.

Dated:  _________, ____

____________________________________
By:  _____________________________
Its:  _____________________________Exhibit 10.2

                  SECURITIES PURCHASE AGREEMENT

      THIS SECURITIES PURCHASE AGREEMENT, (the, "Agreement"), dated as of the
date of acceptance set forth below, is entered into by and among FLEXXTECH
CORPORATION, a Nevada corporation, with headquarters located at 5777 W.
Century Boulevard, Suite 767, Los Angeles, California 94010 (the "Company"),
and each entity named on the signature page hereto and permitted assigns
(each, a "Buyer") (each agreement with a Buyer being deemed a separate and
independent agreement between the Company and such Buyer, except that each
Buyer acknowledges and consents to the rights granted to each other Buyer
under such agreement and the Transaction Agreements (as defined below).

                       W I T N E S S E T H:

      WHEREAS, the Company and the Buyers are executing and delivering this
Agreement in accordance with and in reliance upon the exemption from
securities registration afforded, inter alia, by Rule 506 under Regulation D
("Regulation D") as promulgated by the United States Securities and Exchange
Commission (the "SEC") under the Securities Act of 1933, as amended (the "1933
Act"), and/or Section 4(2) of the 1933 Act; and

      WHEREAS, the Buyers wish to purchase, upon the terms and subject to the
conditions of this Agreement, a minimum of $300,000.00 and a maximum of
original principal amount of $500,000.00 of debentures of the Company (the
"Debentures"), which will be convertible into shares of Common Stock, par
value $.001 per share, of the Company (the "Common Stock"), upon the terms and
subject to the conditions of such Debentures, and subject to acceptance of
this Agreement by the Company;

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

      1.    AGREEMENT TO PURCHASE; PURCHASE PRICE.

      a.    Purchase.

      (i)    The undersigned Buyers hereby, severally and not jointly, agree
to purchase from the Company Debentures in the principal amount of not less
than $300,000.00 and not more than $500,000.00, each such Debenture having the
terms and conditions and being in the form attached hereto as Exhibit B.

      (ii)    Subject to the terms and conditions of this Agreement and the
other Transaction Agreements (as defined below), the Buyers will purchase the
Debentures at a closing (the "Closing") held on the Closing Date (as defined
below).

      (iii)    The purchase price to be paid by each Buyer shall equal the
face amount of the Debentures, as the case may be, being purchased on the
Closing Date (as defined below)

<PAGE>

by such Buyer as set forth on the signature page to this Agreement, and shall
be payable in United States Dollars.

      b.    Certain Definitions.    As used herein, each of the following
terms has the meaning set forth below, unless the context otherwise requires:

      (i)    "Affiliate" means, with respect to a specific Person referred to
in the relevant provision, another Person who or which controls or is
controlled by or is under common control with such specified Person.

      (ii)    "Certificates" means the relevant Debentures duly executed on
behalf of the Company and issued in the name of the respective Buyer.

      (iii)    "Closing Date" means the date of the Closing.

      (iv)    "Conversion Shares" means the shares of Common Stock issuable
upon conversion of the Debentures.

      (v)    "Debentures" means all or any portion of the Debentures.

      (vi)    "Effective Date" means the effective date of the Registration
Statement covering the Registrable Securities (as those terms are defined in
the Registration Rights Agreement defined below) for the Debentures issued on
the Closing Date.

      (vii)    "Person" means any living person or any entity, such as, but
not necessarily limited to, a corporation, partnership or trust.

      (viii)    "Purchase Price" means the purchase price for the Debentures.

      (ix)    "Schedules" means the disclosure schedules attached hereto as
Exhibit "A".

      (x)    Securities" means the Debentures and the Common Stock issuable
upon conversion of the Debentures.

      (xi)    "Shares" means the shares of Common Stock representing any or
all of the Conversion Shares.

       c.    Form of Payment; Delivery of Certificates.

      (i)    Each Buyer shall pay the Purchase Price to be paid by such Buyer
for the relevant Debentures by delivering immediately available good funds in
United States Dollars to the Company at the Closing on the Closing Date,
subject to the payment of fees and expenses as provided in Section 12(a) and
12(b).

<PAGE>

      (ii)    No later than the Closing Date, but in any event promptly
following payment by each Buyer to the Company of the Purchase Price to be
paid by such Buyer, the Company shall deliver the relevant Certificates to
such Buyer.

      d.    Method of Payment.  Payment to the Company of the Purchase Price
shall be made at the Closing by wire transfer of funds to:

         Beneficiary Account Name:

                                  NORTH TEXAS CIRCUIT BOARD CO., INC.
                                  1501 W. Shady Grove Road
                                  Grand Prairie, Texas 75050

         Beneficiary Account No.: 867713
         ABA/Transit No:          111901234
         Beneficiary Bank:        Legacy Bank of Texas
         With notice to:          Steve Young

      2.    BUYERS REPRESENTATIONS, WARRANTIES, ETC.; ACCESS TO INFORMATION;
INDEPENDENT INVESTIGATION.

      Each Buyer, severally and not jointly, represents and warrants to, and
covenants and agrees with, the Company as follows:

      a.  Without limiting any Buyer's right to sell the Common Stock pursuant
to the Registration Statement, each Buyer is purchasing the Debentures and
will be acquiring the Shares for its own account for investment only and not
with a view towards the public sale or distribution thereof and not with a
view to or for sale in connection with any distribution thereof.

      b.  Each Buyer is (i) an "accredited investor" as that term is defined
in Rule 501 of the General Rules and Regulations under the 1933 Act by reason
of Rule 501(a)(3), (ii) experienced in making investments of the kind
described in this Agreement and the related documents, (iii) able, by reason
of the business and financial experience of its officers (if an entity) and
professional advisors (who are not affiliated with or compensated in any way
by the Company or any of its affiliates or selling agents), to protect its own
interests in connection with the transactions described in this Agreement, and
the related documents, and (iv) able to afford the entire loss of its
investment in the Securities.

      c.  All subsequent offers and sales of the Debentures and the Shares by
each Buyer shall be made pursuant to registration of the Shares under the 1933
Act or pursuant to an exemption from registration and will comply with
applicable states' securities laws.

      d.  Each Buyer understands that the Debentures are being offered and
sold to it in reliance on specific exemptions from the registration
requirements of United States federal and

<PAGE>

state securities laws and that the Company is relying upon the truth and
accuracy of, and the Buyer's compliance with, the representations, warranties,
agreements, acknowledgments and understandings of the Buyers set forth herein
in order to determine the availability of such exemptions and the eligibility
of the Buyers to acquire the Debentures.

      e.  Each Buyer and its advisors, if any, have been furnished with all
materials relating to the business, finances and operations of the Company and
materials relating to the offer and sale of the Debentures and the offer of
the Shares which have been requested by the Buyer.  Each Buyer and its
advisors, if any, have been afforded the opportunity to ask questions of the
Company and have received complete and satisfactory answers to any such
inquiries.  Without limiting the generality of the foregoing, each Buyer has
also had the opportunity to obtain and to review the Company's (1) Annual
Report on Form 10-KSB for the fiscal year ended December 31, 2000, (2)
Quarterly Report on Form 10-QSB for the fiscal quarter ended March 31, 2001
(the "Company's SEC Documents") and (3) all other filings made by the Company
under the Securities Exchange Act of 1934 (the "Company's SEC Documents.").

      f.  Each Buyer understands that its investment in the Securities
involves a high degree of risk.

      g.  Each Buyer understands that no United States federal or state agency
or any other government or governmental agency has passed on or made any
recommendation or endorsement of the Securities.

      h.  Each Buyer is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization.  This Agreement and
the Transaction Agreements have been duly and validly authorized, executed and
delivered on behalf of the Buyer and create a valid and binding agreement of
the Buyer enforceable in accordance with its terms, subject as to
enforceability to general principles of equity and to bankruptcy, insolvency,
moratorium and other similar laws affecting the enforcement of creditors'
rights generally.

      i.  Such Buyer has not employed any broker or finder in connection with
the transactions contemplated by this Agreement.

      j.  The state in which any offer to purchase shares hereunder was made
to or accepted by such Buyer in the state shown as the Buyer's address on
Schedule I hereto.

      k.  Each Buyer was not formed for the purpose of investing solely in the
Securities which may be acquired hereunder.

      l.  Each Buyer is able to bear the complete loss of such Buyer's
investment in the Securities.

      m.  Each Buyer's execution, delivery and performance under this
Agreement will not breach the provisions of any agreement to which the Buyer
is a party.

<PAGE>

      3.    COMPANY REPRESENTATIONS, ETC.   The Company represents and
warrants to the Buyers that, except as disclosed in the Schedules:

      a.  Concerning the Debentures and the Shares.   There are no preemptive
rights of any stockholder of the Company to acquire the Debentures or the
Shares.

      b.  Reporting Company Status.  The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State
of Nevada and has the requisite corporate power to own its properties and to
carry on its business as now being conducted.  The Company is duly qualified
as a foreign corporation to do business and is in good standing in each
jurisdiction where the nature of the business conducted or property owned by
it makes such qualification necessary, other than those jurisdictions in which
the failure to so qualify would not have a material adverse effect on the
business, operations or condition (financial or otherwise) or results of
operation of the Company and its subsidiaries taken as a whole (a "Material
Adverse Effect").  The Company has registered its Common Stock pursuant to
Section 12 of the 1934 Act, and the Common Stock is listed and traded on the
OTC Bulletin Board Market of the National Association of Securities Dealers,
Inc.  The Company has received no notice, either oral or written, with respect
to the continued eligibility of the Common Stock for such listing, and the
Company has maintained all requirements for the continuation of such listing.

      c.  Authorized Shares.  The authorized capital stock of the Company
consists of  100,000,000 shares of Common Stock, par value $0.001 per share,
of which 15,194,862 shares are issued and outstanding as of the date of this
Agreement.  All issued and outstanding shares of Common Stock have been duly
authorized and validly issued and are fully paid and nonassessable.  The
Company has sufficient authorized and unissued shares of Common Stock as may
be necessary to effect the issuance of the Shares. The Shares have been duly
authorized and, when issued upon conversion of, or as interest on, the
Debentures will be duly and validly issued, fully paid and non-assessable and
will not subject the holder thereof to personal liability by reason of being
such holder.  At all times, the Issuer shall keep available Common Stock duly
authorized for issuance against the Debentures.

      d.  Securities Purchase Agreement; Registration Rights Agreement.  This
Agreement and the Registration Rights Agreement, between the Company and the
Buyers, substantially in the form of Exhibit C annexed hereto (the
"Registration Rights Agreement"), and the transactions contemplated thereby,
have been duly and validly authorized by the Company, this Agreement has been
duly executed and delivered by the Company.  Each of this Agreement, the
Debentures and the Registration Rights Agreement, when executed and delivered
by the Company, are and will be, valid and binding agreements of the Company
enforceable in accordance with their respective terms, subject as to
enforceability to general principles of equity and to bankruptcy, insolvency,
moratorium, and other similar laws affecting the enforcement of creditors'
rights generally.

      e.  Non-contravention.  The execution and delivery of this Agreement,
the Debenture and the Registration Rights Agreement by the Company, the
issuance of the Securities, and the consummation by the Company of the other
transactions contemplated by this

<PAGE>

Agreement, the Registration Rights Agreement, and the Debentures do not and
will not conflict with or result in a breach by the Company of any of the
terms or provisions of, or constitute a default under (i) the articles of
incorporation or by-laws of the Company, each as currently in effect, (ii) to
its actual knowledge, any indenture, mortgage, deed of trust, or other
material agreement or instrument to which the Company is a party or by which
it or any of its properties or assets are bound, including any listing
agreement for the Common Stock, except as herein set forth, (iii) to its
actual knowledge, any existing applicable law, rule, or regulation or any
applicable decree, judgment, or order of any court, United States federal or
state regulatory body, administrative agency, or other governmental body
having jurisdiction over the Company or any of its properties or assets, or
(iv) the Company's listing agreement for its Common Stock, except such
conflict, breach or default which would not have a Material Adverse Effect.

      f.  Approvals.  No authorization, approval or consent of any court,
governmental body, regulatory agency, self-regulatory organization, or stock
exchange or market or the stockholders of the Company is required to be
obtained by the Company for the issuance and sale of the Securities to the
Buyers as contemplated by this Agreement, except such authorizations,
approvals and consents that have been obtained, or such authorizations,
approvals and consents, the failure of which to obtain would not have a
Material Adverse Effect.

      g.  SEC Filings.  None of the Company's SEC Documents contained, at the
time they were filed, any untrue statement of a material fact or omitted to
state any material fact required to be stated therein or necessary to make the
statements made therein in light of the circumstances under which they were
made, not misleading.  The Company has since December 31, 2000 timely filed
all requisite forms, reports and exhibits thereto with the SEC.

      h.  Absence of Certain Changes.  Since December 31, 2000, there has been
no Material Adverse Effect, except as disclosed in the Company's SEC
Documents. Since December 31, 2000, except as provided in the Company's SEC
Documents, neither the Company nor any of its subsidiaries has (i) incurred or
become subject to any material liabilities (absolute or contingent) except
liabilities incurred in the ordinary course of business consistent with past
practices; (ii) discharged or satisfied any material lien or encumbrance or
paid any material obligation or liability (absolute or contingent), other than
current liabilities paid in the ordinary course of business consistent with
past practices; (iii) declared or made any payment or distribution of cash or
other property to stockholders with respect to its capital stock, or purchased
or redeemed, or made any agreements to purchase or redeem, any shares of its
capital stock; (iv) sold, assigned or transferred any other tangible assets,
or canceled any debts or claims, except in the ordinary course of business
consistent with past practices; (v) suffered any substantial losses or waived
any rights of material value, whether or not in the ordinary course of
business, or suffered the loss of any material amount of existing business;
(vi) made any changes in employee compensation, except in the ordinary course
of business consistent with past practices; or (vii) experienced any material
problems with labor or management in connection with the terms and conditions
of their employment.

<PAGE>

      i.  Full Disclosure.  There is no fact actually known to the Company
(other than general economic conditions known to the public generally or as
disclosed in the Company's SEC Documents) that has not been disclosed in
writing to the Buyers that (i) would reasonably be expected to have a Material
Adverse Effect, (ii) would reasonably be expected to materially and adversely
affect the ability of the Company to perform its obligations pursuant to this
Agreement or any of the agreements contemplated hereby (collectively,
including this Agreement, the "Transaction Agreements"), or (iii) would
reasonably be expected to materially and adversely affect the value of the
rights granted to the Buyers in the Transaction Agreements.

      j.  Absence of Litigation.  Except as set forth in the Company's SEC
Documents, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board or body pending or, to the knowledge of
the Company, threatened against or affecting the Company or any of its
subsidiaries, wherein an unfavorable decision, ruling or finding would have a
Material Adverse Effect or which would adversely affect the validity or
enforceability of, or the authority or ability of the Company and its
subsidiaries taken as a whole to perform its obligations under, any of the
Transaction Agreements.

      k.  Absence of Events of Default.  Except as set forth in Section 3(e)
hereof, no Event of Default (or its equivalent term), as defined in the
respective agreement to which the Company or any of its subsidiaries is a
party, and no event which, with the giving of notice or the passage of time or
both, would become an Event of Default (or its equivalent term) (as so defined
in such agreement), has occurred and is continuing, which would have a
Material Adverse Effect.

      l.  Prior Issues. Except as set forth in the Company's SEC Documents,
during the twelve (12) months preceding the date hereof, the Company has not
issued any convertible securities or any shares of  Common Stock that was not
disclosed in the SEC Documents.

      m.  No Undisclosed Liabilities or Events.  The Company has no
liabilities or obligations other than those disclosed in the Company's SEC
Documents or those incurred in the ordinary course of the Company's business
since December 31, 1999, and which individually or in the aggregate, do not or
would not have a Material Adverse Effect.  No event or circumstances has
occurred or exists with respect to the Company or its properties, business,
condition (financial or otherwise), or results of operations, which, under
applicable law, rule or regulation, requires public disclosure or announcement
prior to the date hereof by the Company but which has not been so publicly
announced or disclosed.  There are no proposals currently under consideration
or currently anticipated to be under consideration by the Board of Directors
or the executive officers of the Company which proposal would (x) change the
articles of incorporation or other charter document or by-laws of the Company,
each as currently in effect, with or without shareholder approval, which
change would reduce or otherwise adversely affect the rights and powers of the
shareholders of the Common Stock or (y) materially or substantially change the
business, assets or capital of the Company, including its interests in
subsidiaries.

      n.  No Default.  Neither the Company nor any of its subsidiaries is in
default in the performance or observance of any material obligation,
agreement, covenant or condition

<PAGE>

contained in any material indenture, mortgage, deed of trust or other material
instrument or agreement to which it is a party or by which it or its property
is bound.

      o.  No Integrated Offering.  Neither the Company nor any of its
affiliates nor any person acting on its or their behalf has, directly or
indirectly, at any time since December 31, 2000, made any offer or sales of
any security or solicited any offers to buy any security under circumstances
that would eliminate the availability of the exemption from registration under
Rule 506 of Regulation D in connection with the offer and sale of the
Securities as contemplated hereby.

      p.  Dilution.  The number of Shares issuable upon conversion of the
Debentures may increase substantially in certain circumstances, including, but
not necessarily limited to, the circumstance wherein the market price of the
Common Stock declines prior to the conversion of the Debentures.  The
Company's executive officers and directors have studied and fully understand
the nature of the securities being sold hereby and recognize that they have a
potential dilutive effect and further that the conversion of the Debenture
and/or sale of the Conversion Shares may have an adverse effect on the market
price of the Common Stock.  The board of directors of the Company has
concluded, in its business judgment, that such issuance is in the best
interests of the Company.  The Company specifically acknowledges that its
obligation to issue the Shares upon conversion of the Debentures is binding
upon the Company and enforceable regardless of the dilution such issuance may
have on the ownership interests of other shareholders of the Company.

      4.    CERTAIN COVENANTS AND ACKNOWLEDGMENTS.

      a.  Transfer Restrictions.  The Buyers acknowledge that (1) the
Debentures have not been and are not being registered under the provisions of
the 1933 Act and, except as provided in the Registration Rights Agreement, the
Shares have not been and are not being registered under the 1933 Act, and may
not be transferred unless (A) subsequently registered thereunder or (B) the
Buyers shall have delivered to the Company an opinion of counsel, reasonably
satisfactory in form, scope and substance to the Company, to the effect that
the Securities to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration; (2) any sale of the Securities made in
reliance on Rule 144 promulgated under the 1933 Act may be made only in
accordance with the terms of said Rule and further, if said Rule is not
applicable, any resale of such Securities under circumstances in which the
seller, or the person through whom the sale is made, may be deemed to be an
underwriter, as that term is used in the 1933 Act, may require compliance with
some other exemption under the 1933 Act or the rules and regulations of the
SEC thereunder; (3) the Buyers may not sell or transfer the Debentures unless
the amount sold or transferred exceeds twenty percent (20%) of the Debentures;
and (4) neither the Company nor any other person is under any obligation to
register the Securities (other than pursuant to the Registration Rights
Agreement) under the 1933 Act or to comply with the terms and conditions of
any exemption thereunder.

      b.  Restrictive Legend.  The Buyers acknowledge and agree that the
Debentures, and, until such time as the Shares have been registered under the
1933 Act as contemplated by

<PAGE>

the Registration Rights Agreement and sold in accordance with an effective
Registration Statement, certificates and other instruments representing any of
the Securities shall bear a restrictive legend in substantially the following
form (and a stop-transfer order may be placed against transfer of any such
Securities):

           THESE SECURITIES (THE "SECURITIES") HAVE NOT BEEN
           REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
           AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES
           LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED
           FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
           STATEMENT FOR THE SECURITIES OR AN OPINION OF
           COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE
           CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

      c.  Registration Rights Agreement.  The parties hereto agree to enter
into the Registration Rights Agreement on or before the Closing Date.

      d.  Filings.  The Company undertakes and agrees to make all necessary
filings in connection with the sale of the Securities to the Buyers required
under any United States laws and regulations applicable to the Company, or by
any domestic securities exchange or trading market, and to promptly provide a
copy thereof to the Buyers after written request.

      e.  Reporting Status.  So long as the any of the Buyers beneficially own
any of the Securities, the Company shall file all reports required to be filed
with the SEC pursuant to Section 13 or 15(d) of the 1934 Act, and the Company
shall not terminate its status as an issuer required to file reports under the
1934 Act even if the 1934 Act or the rules and regulations thereunder would
permit such termination.  Except as otherwise set forth in this Agreement and
the Transaction Agreements, the Company will take all reasonable action under
its control to obtain and to continue the listing and trading of its Common
Stock (including, without limitation, all Registrable Securities) on the OTC
Bulletin Board Market of the National Association of Securities Dealers, Inc.
and will comply in all material respects with the Company's reporting, filing
and other obligations under the by-laws or rules of the National Association
of Securities Dealers, Inc. ("NASD").

      f.  Use of Proceeds.   The Company will use the proceeds from the sale
of the Debentures (excluding amounts paid by the Company for legal fees in
connection with the sale of the Debentures) for internal working capital
purposes.

      g.  Certain Agreements.  The Company covenants and agrees that it will
not, without the prior written consent of the Buyers, enter into any
subsequent or further offer or sale of Common Stock or securities convertible
into Common Stock (collectively, "New Common Stock")  with any third party
pursuant to a transaction which in any manner permits the sale of the New
Common Stock on any date which is earlier than ninety (90) days from the last
day of the calendar month in which the Effective Date occurs. The limitations
described in this section shall not apply to (w) any underwritten offering of
securities made pursuant to a written

<PAGE>

underwriting agreement with a nationally- or regionally-recognized investment
bank, (x) any issuance of securities or assumption of debt made in connection
with a merger, acquisition of or purchase of the assets of another entity
where the purpose of such issuance is not to raise equity capital, or (y) any
issuance of warrants made to a bank or other commercial lending institution in
connection with a loan made to the Company by such bank or institution.

      h.  Available Shares.  The Company shall have at all times authorized
and reserved for issuance, free from preemptive rights, shares of Common Stock
sufficient to yield two hundred percent (200%) of the number of shares of
Common Stock issuable at conversion as may be required to satisfy the
conversion rights of the Buyers pursuant to the terms and conditions of the
Debentures which have been issued and not yet converted. If at any time, the
Company does not have available an amount of authorized and non-issued Shares
necessary to satisfy full Conversion of the then outstanding amount of the
Debentures, the Company shall call and hold a special meeting within 30 days
of such occurrence, for the sole purpose of increasing the number of shares
authorized.  Management of the Company shall recommend to shareholders to vote
in favor of increasing the number of Common Stock authorized.  Management
shall also vote all of its shares in favor of increasing the number of Common
Stock authorized.

      i.   Reimbursement.  If (i) any Buyer, other than by reason of its gross
negligence, willful misconduct or breach of law or this Agreement, becomes
involved in any capacity in any action, proceeding or investigation brought by
any stockholder of the Company, in connection with or as a result of the
consummation of the transactions contemplated by the Transaction Agreements,
or if such Buyer is impleaded in any such action, proceeding or investigation
by any Person, or (ii) any Buyer, other than by reason of its gross
negligence, willful misconduct or breach of law, becomes involved in any
capacity in any action, proceeding or investigation brought by the SEC against
or involving the Company or in connection with or as a result of the
consummation of the transactions contemplated by the Transaction Agreements,
or if such Buyer is impleaded in any such action, proceeding or investigation
by any Person, then in any such case, the Company will reimburse such Buyer
for its reasonable legal and other expenses (including the cost of any
investigation and preparation) incurred in connection therewith, as such
expenses are incurred. The reimbursement obligations of the Company under this
paragraph shall be in addition to any liability which the Company may
otherwise have, shall extend upon the same terms and conditions to any
affiliates of the Buyers who are actually named in such action, proceeding or
investigation, and partners, directors, agents, employees and controlling
persons (if any), as the case may be, of the Buyers and any such Affiliate,
and shall be binding upon and inure to the benefit of any successors, assigns,
heirs and personal representatives of the Company, the Buyers and any such
Affiliate and any such Person.  Except as otherwise set forth in the
Transaction Agreements, the Company also agrees that neither any Buyer nor any
such Affiliate, partners, directors, agents, employees or controlling persons
shall have any liability to the Company or any person asserting claims on
behalf of or in right of the Company in connection with or as a result of the
consummation of the Transaction Agreements except to the extent that any
losses, claims, damages, liabilities or expenses incurred by the Company
result from the gross negligence or willful misconduct of such Buyer or  from
a breach of the representations, covenants and conditions contained herein or
from a breach of law.

<PAGE>

      5.    TRANSFER AGENT INSTRUCTIONS.

      a.  Promptly following the purchase by the Buyers of the Debentures in
accordance with Section 1(c) hereof, the Company will irrevocably instruct its
transfer agent to issue Common Stock from time to time upon conversion of the
Debentures in such amounts as specified from time to time by the Company to
the transfer agent, bearing the restrictive legend specified in Section 4(b)
of this Agreement prior to registration of the Shares under the 1933 Act,
registered in the name of the respective Buyer or its permitted assigns and in
such denominations to be specified by such Buyer in connection with each
conversion of the Debentures.  The Company warrants that if the Buyer is not
in breach of the representations and warranties contained in this Agreement,
no instruction other than such instructions referred to in this Section 5 and
stop transfer instructions to give effect to Section 4(a) hereof prior to
registration and sale of the Shares under the 1933 Act will be given by the
Company to the transfer agent and that the Shares shall otherwise be freely
transferable on the books and records of the Company as and to the extent
provided in this Agreement, the Registration Rights Agreement, and applicable
law.  Nothing in this Section shall affect in any way the Buyers' obligations
and agreement to comply with all applicable securities laws upon resale of the
Securities.  If any Buyer provides the Company with an opinion of counsel
reasonably satisfactory to the Company that registration of a resale by such
Buyer of any of the Securities in accordance with clause (1)(B) of Section
4(a) of this Agreement is not required under the 1933 Act, the Company shall
(except as provided in clause (2) of Section 4(a) of this Agreement) permit
the transfer of the Securities and, in the case of the Converted Shares or the
Warrant Shares, as the case may be, promptly instruct the Company's transfer
agent to issue one or more certificates for Common Stock without legend in
such name and in such denominations as specified by the Buyer.

      b. (i) The Company will permit the Buyers to exercise their rights to
             convert the Debentures by telecopying or delivering an executed
             and completed Notice of Conversion to the Company and delivering,
             within five (5) business days thereafter, the original Debentures
             being converted to the Company by express courier, with a copy to
             the transfer agent.

         (ii)the term "Conversion Date" means, with respect to any conversion
             elected by the holder of the Debentures, the date specified in
             the Notice of Conversion, provided the copy of the Notice of
             Conversion is given either via mail or facsimile to or otherwise
             delivered to the Company in accordance with the provisions hereof
             so that it is received by the Company on or before such specified
             date.

        (iii)The Company will transmit the certificates representing the
             Converted Shares issuable upon conversion of any Debentures
             (together, unless otherwise instructed by the Buyer, with
             Debentures not being so converted) to the Buyer at the address
             specified in the Notice of Conversion (which may be the Buyer's
             address for notices as contemplated by Section 11 hereof or a
             different address) via express courier, by electronic transfer or
             otherwise, within five (5) business days if the address for
             delivery is in the United States and within seven (7) business
             days if the address for delivery is outside the United States
             (such fifth business day or seventh business day, as the case may
             be, the "Delivery Date") after (A) the business day on which the
             Company has received both of the Notice of Conversion (by
             facsimile or other delivery) and the original Debentures being
             converted (and if the same are not delivered to the Company on
             the same date, the date of delivery of the second of such items)
             or (B) the date an interest payment on the Debenture, which the
             Company has elected to pay by the issuance of Common Stock, as
             contemplated by the Debentures, was due.

      c.  From and after the date on which the Shares have been registered
under the 1933 Act as contemplated by the Registration Rights Agreement, the
failure to issue unrestricted, freely tradable Shares to the Buyers upon
Conversion shall be considered an Event of Default, which if not cured after
ten (10) days prior written notice, shall entitle the Buyers to accelerate
full repayment of the Debentures then outstanding.  The Company acknowledges
that the failure to honor a Notice of Conversion shall cause definable
financial hardship on the Buyers.

      d.  The Company will authorize its transfer agent to give information to
a Buyer or such Buyer's representative relating to the transfer of the
Company's shares of Common Stock to the Buyer, upon the reasonable request of
the Buyer or any such representative.  The Company will provide such Buyer
with a copy of the authorization so given to the transfer agent.

      e.    Each Buyer shall be entitled to exercise its conversion privilege
with respect to the Debentures notwithstanding the commencement of any case
under 11 U.S.C. 101 et seq. (the "Bankruptcy Code").  In the event the Company
is a debtor under the Bankruptcy Code, the Company hereby waives, to the
fullest extent permitted, any rights to relief it may have under 11 U.S.C. 362
in respect of such Buyer's conversion privilege.  The Company hereby waives,
to the fullest extent permitted, any rights to relief it may have under 11
U.S.C. 362 in respect of the conversion of the Debentures.  The Company
agrees, without cost or expense to such Buyer, to take or to consent to any
and all action necessary to effectuate relief under 11 U.S.C. 362.

      6.    CLOSING DATE.

      a.  The Closing Date shall occur on the date which is the first trading
day after each of the conditions contemplated by Sections 7 and 8 hereof shall
have either been satisfied or been waived by the party in whose favor such
conditions run.

      b.  The Closing of the purchase and issuance of Debentures shall occur
on the Closing Date at the offices of McGuireWoods LLP, 9 West 57th Street,
Suite 1620, New York, NY and shall take place no later than 3:00 P.M., New
York time, on such day or such other time as is mutually agreed upon by the
Company and the Buyers.

      7.    CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

<PAGE>

      Each Buyer understands that the Company's obligation to sell the
Debentures to the Buyer pursuant to this Agreement on the Closing Date is
conditioned upon:

      a.  The execution and delivery of this Agreement by those Buyers who are
purchasing, in the aggregate, at least $300,000.00 in principal amount of
Debentures;

      b.  Delivery by the Buyers to the Company of good funds as payment in
full of an amount equal to the Purchase Price for the Debentures in accordance
with this Agreement;

      c.  The accuracy on the Closing Date of the representations and
warranties of the Buyers contained in this Agreement, each as if made on such
date, and the performance by the Buyers on or before such date of all
covenants and agreements of the Buyers required to be performed on or before
such date; and

      d.  There shall not be in effect any law, rule or regulation prohibiting
or restricting the transactions contemplated hereby, or requiring any consent
or approval which shall not have been obtained.

      8.    CONDITIONS TO THE BUYERS' OBLIGATION TO PURCHASE.

      The Company understands that the Buyers' obligation to purchase the
Debentures on the Closing Date is conditioned upon:

      a.  The execution and delivery of this Agreement and the Registration
Rights Agreement by the Company;

      b.  Delivery by the Company to the Escrow Agent of the Certificates in
accordance with this Agreement;

      c.  The accuracy in all material respects on the Closing Date of the
representations and warranties of the Company contained in this Agreement,
each as if made on such date, and the performance by the Company on or before
such date of all covenants and agreements of the Company required to be
performed on or before such date;

      d.  On the Closing Date, the Buyers shall have received an opinion of
counsel for the Company, dated as of the Closing Date, in form, scope and
substance reasonably satisfactory to the Buyers, substantially to the effect
set forth in Exhibit D annexed hereto;

      e.   There shall not be in effect any law, rule or regulation
prohibiting or restricting the transactions contemplated hereby, or requiring
any consent or approval which shall not have been obtained; and

      f.  From and after the date hereof to and including the Closing Date,
the trading of the Common Stock shall not have been suspended by the SEC or
the NASD and trading in securities generally on the New York Stock Exchange or
The NASDAQ/National  Market

<PAGE>

System shall not have been suspended or limited, nor shall minimum prices been
established for securities traded on The NASDAQ/National Market System, nor
shall there be any outbreak or escalation of hostilities involving the United
States or any material adverse change in any financial market that in either
case in the reasonable judgment of the Buyers makes it impracticable or
inadvisable to purchase the Debentures.

      9.    GOVERNING LAW:  MISCELLANEOUS.

      a.  This Agreement shall be governed by and interpreted in accordance
with the laws of the State of New York for contracts to be wholly performed in
such state and without giving effect to the principles thereof regarding the
conflict of laws.  Each of the parties consents to the jurisdiction of the
federal courts whose districts encompass any part of the City of New York or
the state courts of the State of New York sitting in the City of New York in
connection with any dispute arising under this Agreement 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. To the extent determined by such court, the Company shall
reimburse the Buyers for any reasonable legal fees and disbursements incurred
by the Buyers in enforcement of or protection of any of its rights under any
of the Transaction Agreements.

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

      c.  This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of each of the parties hereto.

      d.  All pronouns and any variations thereof refer to the masculine,
feminine or neuter, singular or plural, as the context may require.

      e.  A facsimile transmission of this signed Agreement shall be legal and
binding on all parties hereto.

      f.  This Agreement may be signed in one or more counterparts, each of
which shall be deemed an original.

      g.  The headings of this Agreement are for convenience of reference and
shall not form part of, or affect the interpretation of, this Agreement.

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

<PAGE>

      i.  This Agreement may be amended only by the written consent of a
majority in interest of the holders of the Debentures and an instrument in
writing signed by the Company.

      j.  This Agreement supersedes all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof.

      10.    NOTICES.  Any notice required or permitted hereunder shall be
given in writing (unless otherwise specified herein) and shall be deemed
effectively given on the earliest of

      (a) the date delivered, if delivered by personal delivery as against
          written receipt therefor or by confirmed facsimile transmission,

      (b) the seventh business day after deposit, postage prepaid, in the
          United States Postal Service by registered or certified mail, or

      (c) the third business day after mailing by next-day express courier,
          with delivery costs and fees prepaid, in each case, addressed to
          each of the other parties thereunto entitled at the following
          addresses (or at such other addresses as such party may designate by
          ten (10) days' advance written notice similarly given to each of the
          other parties hereto):

COMPANY:         FLEXXTECH CORPORATION
                 5777 W. Century Boulevard, Suite 767
                 Los Angeles, California 94010
                 ATTN:  Greg Mardock
                 Telephone No.: (310) 342-0794
                 Telecopier No.: (310) 342-0791

with a copy to:  Bell, Nunnally & Martin LLP
                 3232 McKinney Avenue
                 Suite 1400
                 Dallas, TX  75204-2429
                 ATTN:  William E. Swart, Esq.
                 Telephone No.: (214) 740-1400
                 Telecopier No.: (214) 740-1499

BUYERS:          At the address set forth on the signature page of this
                 Agreement.

<PAGE>

with copies to:  Mr. Hunter Singer
                 c/o May Davis Group, Inc.
                 c/o National Securities
                 28th Floor
                 120 Broadway
                 New York, NY 10272

                 and

                 William A. Newman, Esq.
                 c/o McGuireWoods LLP
                 9 West 57th Street, Suite 1620
                 New York, New York 10019
                 Telephone No.: (212) 548-2160
                 Telecopier No.: (212) 548-2150

      11.    SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The Company's and the
Buyers' representations and warranties herein shall survive for a period of
twelve (12) months after the execution and delivery of this Agreement and
shall inure to the benefit of the Buyers and the Company and their respective
successors and assigns.

      12.    FEES; EXPENSES.

      a.  At the Closing May Davis Group, Inc. shall receive cash compensation
equal to 8% of the principal amount of the Debentures purchased by the Buyers
under this Agreement and the Company shall issue to such persons as May Davis
Group, Inc. shall designate one or more warrants to purchase shares of the
Common Stock at the rate of 80 shares for each $100.00 principal amount of the
Debentures purchased by the Buyers under this Agreement.  The cash fees may be
deducted from the proceeds of the sale of the Debentures.

      b.  At the Closing, the Company shall pay McGuireWoods LLP the sum of
$15,000 for legal fees and expenses incurred in the transaction consummated
hereunder, which fees may be deducted from the proceeds of the sale of the
Debentures.

<PAGE>

      IN WITNESS WHEREOF, this Agreement has been duly executed by the Buyers
and the Company as of the date set forth below.
Date:    as of August _____, 2001

COMPANY:

FLEXXTECH CORPORATION

By:

Title:

BUYERS:

Name of Buyer:                         Name of Buyer:
By:                                    By:
   (Signature of Authorized Person)       (Signature of Authorized Person)

Printed Name and Title                 Printed Name and Title
Address:                               Address:
Telephone:                             Telephone:
Facsimile:                             Facsimile:
Jurisdiction of Incorporation:         Jurisdiction of Incorporation:
Principal Amount of Debentures         Principal Amount of Debentures
to be Purchased:                       to be Purchased:

Name of Buyer:                         Name of Buyer:
By:                                    By:
   (Signature of Authorized Person)       (Signature of Authorized Person)

Printed Name and Title                 Printed Name and Title
Address:                               Address:
Telephone:                             Telephone:
Facsimile:                             Facsimile:
Jurisdiction of Incorporation:         Jurisdiction of Incorporation:
Principal Amount of Debentures         Principal Amount of Debentures
 to be Purchased:                      to be Purchased:

<PAGE>

Name of Buyer:                         Name of Buyer:
By:                                    By:
   (Signature of Authorized Person)       (Signature of Authorized Person)

Printed Name and Title                 Printed Name and Title
Address:                               Address:
Telephone:                             Telephone:
Facsimile:                             Facsimile:
Jurisdiction of Incorporation:         Jurisdiction of Incorporation:
Principal Amount of Debentures         Principal Amount of Debentures
 to be Purchased:                      to be Purchased:

Name of Buyer:                         Name of Buyer:
By:                                    By:
   (Signature of Authorized Person)       (Signature of Authorized Person)

Printed Name and Title                 Printed Name and Title
Address:                               Address:
Telephone:                             Telephone:
Facsimile:                             Facsimile:
Jurisdiction of Incorporation:         Jurisdiction of Incorporation:
Principal Amount of Debentures         Principal Amount of Debentures
 to be Purchased:                      to be Purchased:

<PAGE>

Schedule I     SCHEDULE OF BUYERS
Exhibit A    DISCLOSURE SCHEDULES
Exhibit B    FORM OF DEBENTURE
Exhibit C    REGISTRATION RIGHTS AGREEMENT
Exhibit D    OPINION OF COUNSEL

<PAGE>

                                                                    Exhibit B
                                                            to the Securities
                                                           Purchase Agreement

                        FORM OF DEBENTURE

          NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON
          CONVERSION  HEREOF HAVE BEEN  REGISTERED  WITH THE UNITED
          STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
          COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933,
          AS AMENDED.  THE SECURITIES ARE RESTRICTED AND MAY NOT BE
          OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED
          UNDER THE ACT PURSUANT TO REGISTRATION REQUIREMENTS THEREOF
          OR EXEMPTION THEREFROM.

No.______                                                        $___________

                      FLEXXTECH CORPORATION

            CONVERTIBLE DEBENTURE DUE AUGUST 13, 2003

      FOR VALUE RECEIVED, FLEXXTECH CORPORATION, a corporation organized and
existing under the laws of the State of Nevada (the "Company"), hereby
promises to pay to ___________________, a __________________, having its
address at ______________________ or its assigns (the "Holder"), the principal
sum of ________ and 00/100 Dollars ($____________) on August ___, 2003 (the
"Maturity Date") and to pay simple interest on the principal sum outstanding
from time to time in arrears (i) upon conversion as provided herein or (ii) on
the Maturity Date, at the rate of 6% per annum.  Interest shall commence to
accrue on this Debenture on the first such business day to occur after the
date hereof and shall continue on a daily basis until payment in full of the
principal sum has been made or duly provided for or until the full outstanding
amount of this Debenture has been converted in accordance with the provisions
hereof.

      This Debenture is the Debenture referred to in the Securities Purchase
Agreement (the "Securities Purchase Agreement") dated August 14, 2001, between
the Company and the Holder, is subject to the provisions of the Securities
Purchase Agreement and further is subject to the following additional
provisions:

      1.      This Debenture has been issued subject to investment
representations of the original purchaser hereof and may be transferred or
exchanged only in compliance with the Securities Act  and other applicable
state and foreign securities laws.  In the event of any proposed transfer of
this Debenture, the Company may require, prior to issuance of a new Debenture
in the name of such other person, that it receive reasonable transfer
documentation including legal opinions that the issuance of the Debenture in
such other name does not and will not cause a violation of the Securities Act
or any applicable state or foreign securities laws. Prior to due presentment
for transfer of this Debenture, the Company and any agent of the Company may
treat the person in whose name this Debenture is duly registered on the
Company's Debenture Register as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this
Debenture be overdue, and neither the Company nor any such agent shall be
affected by notice to the contrary.

       2.   A.  The Holder is entitled to, at any time or from time to time,
convert the Conversion Amount into shares of Common Stock of the Company, par
value $.001 per share ("Common Stock"), at a conversion price for each share
of Common Stock (the "Conversion Price") equal to the lower of (x) 120% of the
closing bid price per share (as reported by Bloomberg, LP) on the Closing
Date, and (y) 80% of the lowest closing bid price per share (as reported by
Bloomberg, LP) of the Company's Common Stock for the five (5) Trading Days
immediately preceding the date of conversion.  The Conversion Price will be
adjusted as provided in Section 6.

            B.      For purposes of this Debenture, the following terms have
the meanings indicated below:

            (i)     "Conversion Amount" shall mean the sum of (A) all or any
portion of the outstanding principal amount of this Debenture, as designated
by the Holder upon exercise of its right of conversion and (B) all interest
that has accrued on the portion of the principal amount that has been
designated for payment pursuant to (A).

            (ii)    "Market Price of the Common Stock" means (x) the closing
bid price of the Common Stock for the period indicated in the relevant
provision hereof (unless a different relevant period is specified in the
relevant provision), as reported by Bloomberg, LP or, if not so reported, as
reported on the over-the-counter market or (y) if the Common Stock is listed
on a stock exchange, the closing price on such exchange, as reported in The
Wall Street Journal.

            (iii)   "Trading Day" shall mean any day on which the New York
Stock Exchange is open for business.

            C.      Conversion shall be effectuated by surrendering the
Debentures to be converted to the Company's transfer agent, Pacific Stock
Transfer Co. located at 5844 South Pecos, Suite D, Las Vegas, Nevada 89120,
accompanied by or preceded by facsimile or other delivery to the Company of
the form of conversion notice attached hereto as Exhibit A, executed by the
Holder of the Debenture evidencing such Holder's intention to convert this
Debenture or a specified portion hereof, and accompanied, if required by the
Company, by proper assignment hereof in blank.  No fractional shares of Common
Stock 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.
The date on which notice of conversion is given (the "Conversion Date") shall
be deemed to be the date on which the Company receives by fax or by mail the
conversion notice ("Notice of Conversion"), substantially in the form annexed
hereto as Exhibit A, duly executed, to the Company; provided that the Holder
shall deliver to the Company's transfer agent or the Company the original
Debentures being converted within five (5) business days thereafter (and if
not so delivered within such time, the Conversion Date shall be the date on
which the later of the Notice of Conversion and the original Debentures being
converted is received by the Company). Facsimile delivery of the Notice of
Conversion shall be accepted by the Company at facsimile number (310) 342-0791
ATTN: Corporate Secretary. Except as otherwise provided, certificates
representing Common Stock upon conversion will be delivered within five (5)
business days from the date of delivery of the Notice of Conversion.

      3.    Unless demand has otherwise been made in writing for payment in
cash by the Holder, any Debentures not previously received for conversion as
of the Maturity Date shall be deemed to have been surrendered for conversion,
without further action of any kind by the Company or any of its agents,
employees or representatives, as of the Maturity Date at the Conversion Price
applicable on the Maturity Date ("Mandatory Conversion").

      4.    No provision of this Debenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to Convert
this Debenture into Common Stock, at the time, place, and rate herein
prescribed.  This Debenture is a direct obligation of the Company.

     5.     If the Company (a) merges or consolidates with another corporation
or after business entity and the Company is not the surviving entity or (b)
sells or transfers all or substantially all of its assets to another person
and the holders of the Common Stock are entitled to receive stock, securities
or property in respect of or in exchange for Common Stock, then as a condition
of such merger, consolidation, sale or transfer, the Company and any such
successor, purchaser or transferee will agree that this Debenture may
thereafter be converted on the terms and subject to the conditions set forth
above into the kind and amount of stock, securities or property receivable
upon such merger, consolidation, sale or transfer by a holder of the number of
shares of Common Stock into which this Debenture might have been converted
immediately before such merger, consolidation, sale or transfer, subject to
adjustments which shall be as nearly equivalent as may be practicable.  In the
event of any (i) proposed merger or consolidation where the Company is not the
surviving entity or (ii) sale or transfer of all or substantially all of the
assets of the Company (in either such case, a "Sale"), the Holder shall have
the right to convert by delivering a Notice of Conversion to the Company
within fifteen (15) days of receipt of notice of such Sale from the Company.

      6.      If, at any time while any portion of this Debenture remains
outstanding, the Company effectuates a stock split or reverse stock split of
its Common Stock or issues a dividend on its Common Stock consisting of shares
of Common Stock or otherwise recapitalizes its Common Stock, the Conversion
Price shall be equitably adjusted to reflect such action.  By way of
illustration, and not in limitation, of the foregoing (i) if the Company
effectuates a 2:1 split of its Common Stock, thereafter, with respect to any
conversion for which the Company issues the shares after the record date of
such split, the Conversion Price shall be deemed to be one-half of what it had
been calculated to be immediately prior to such split; (ii) if the Company
effectuates a 1:10 reverse split of its Common Stock, thereafter, with respect
to any conversion for which the Company issues the shares after the record
date of such reverse split, the Conversion Price shall be deemed to be the
amount of such Conversion Price calculated immediately prior to the record
date multiplied by 10; and (iii) if the Company declares a stock dividend of
one share of Common Stock for every 10 shares outstanding, thereafter, with
respect to any conversion for which the Company issues the shares after the
record date of such dividend, the Conversion Price shall be deemed to be the
amount of such Conversion Price calculated immediately prior to such record
date multiplied by a fraction, of which the numerator is the number of shares
(10) for which a dividend share will be issued and the denominator is such
number of shares plus the dividend share(s) issuable or issued thereon (11).

      7.      All payments contemplated hereby to be made "in cash" shall be
made by wire transfer of immediately available funds in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts.  All payments of cash and each delivery
of shares of Common Stock issuable to the Holder as contemplated hereby shall
be made to the Holder to an account designated by the Holder to the Company
and if the Holder has not designated any such accounts at the address last
appearing on the Debenture Register of the Company as designated in writing by
the Holder from time to time; except that the Holder may designate, by notice
to the Company, a different delivery address for any one or more specific
payments or deliveries.

      8.      The Holder of the Debenture, by acceptance hereof, agrees that
this Debenture is being acquired for investment and that such Holder will not
offer, sell or otherwise dispose of this Debenture or the Shares of Common
Stock issuable upon conversion thereof except in compliance with the terms of
the Securities Purchase Agreement and the Registration Rights Agreement and
under circumstances which will not result in a violation of the Securities Act
or any applicable state Blue Sky or foreign laws or similar laws relating to
the sale of securities.

      9.      This Debenture shall be governed by and construed in accordance
with the laws of the State of New York. Each of the parties consents to the
jurisdiction of the federal courts whose districts encompass any part of the
City of New York or the state courts of the State of New York sitting in the
City of New York in connection with any dispute arising under this Agreement
and hereby waives, to the maximum extent permitted by law, any objection,
including any objection based on forum non coveniens, to the bringing of any
such proceeding in such jurisdictions.  To the extent determined by such
court, the Company shall reimburse the Holder for any reasonable legal fees
and disbursements incurred by the Holder in enforcement of or protection of
any of its rights under this Debenture or the Securities Purchase Agreement.

       10.      The following shall constitute an "Event of Default":

            a.      The Company fails in the payment of principal or interest
on this Debenture as required hereunder and the same shall continue for a
period of three (3) days; or

            b.      Any of the representations or warranties made by the
Company herein, in the Securities Purchase Agreement, the Registration Rights
Agreement, dated August 14, 2001 between the Company and the Investors therein
(the "Registration Rights Agreement"), or in any certificate or financial or
other written statements heretofore or hereafter furnished by the Company in
connection with the execution and delivery of this Debenture or the Securities
Purchase Agreement shall be false or misleading in any material respect at the
time made; or

            c.      The Company fails to issue shares of Common Stock to the
Holder or to cause its Transfer Agent to issue shares of Common Stock upon
exercise by the Holder of the conversion rights of the Holder in accordance
with the terms of this Debenture, fails to transfer or to cause its Transfer
Agent to transfer any certificate for shares of Common Stock issued to the
Holder upon conversion of this Debenture and when required by this Debenture
or the Registration Rights Agreement, and such transfer is otherwise lawful,
or fails to remove any restrictive legend or to cause its Transfer Agent to
transfer any certificate or any shares of Common Stock issued to the Holder
upon conversion of this Debenture as and when required by this Debenture, the
Agreement or the Registration Rights Agreement and such legend removal is
otherwise lawful, and any such failure shall continue uncured for five (5)
business days after written notice from the Holder of such failure; or

            d.      The Company shall fail to perform or observe, in any
material respect, any other covenant, term, provision, condition, agreement or
obligation of the Debenture and, except the case of Section 5, such failure
shall continue uncured for a period of thirty (30) days after written notice
from the holder of such failure. The Company shall fail to perform or observe,
in any material respect, any covenant, term, provision, condition, agreement
or obligation of the Company under the Securities Purchase Agreement or the
Registration Rights Agreement and such failure  shall continue uncured for a
period of thirty (30) days after written notice from the Holder of such
failure; or

            e.      The Company shall (1) admit in writing its inability to
pay its debts generally as they mature; (2) make an assignment for the benefit
of creditors or commence proceedings for its dissolution; or (3) apply for or
consent to the appointment of a trustee, liquidator or receiver for its or for
a substantial part of its property or business; or

            f.      A trustee, liquidator or receiver shall be appointed for
the Company or for a substantial part of its property or business without its
consent and shall not be discharged within sixty (60) days after such
appointment; or

            g.      Any governmental agency or any court of competent
jurisdiction at the instance of any governmental agency shall assume custody
or control of the whole or any substantial portion of the properties or assets
of the Company and shall not be dismissed within sixty (60) days thereafter;
or

            h.      Any final money judgment, writ or warrant of attachment,
or similar process, not subject to appeal, in excess of One-Hundred Thousand
($100,000) Dollars in the aggregate shall be entered or filed against the
Company or any of its properties or other assets and shall remain unpaid,
unvacated, unbonded or unstayed for a period of sixty (60) days or in any
event later than five (5) days prior to the date of any proposed sale
thereunder; or

            i.      Bankruptcy, reorganization, insolvency or liquidation
proceedings or other proceedings for relief under any bankruptcy law or any
law for the relief of debtors shall be instituted by or against the Company
and, if instituted against the Company, shall not be dismissed within sixty
(60) days after such institution or the Company shall by any action or answer
approve of, consent to, or acquiesce in any such proceedings or admit the
material allegations of, or default in answering a petition filed in any such
proceeding; or

            j.      The Company shall have its Common Stock suspended or
delisted from an exchange for a period in excess of five (5) trading days.

Then, or at any time thereafter, and in each and every such case, unless such
Event of Default shall have been waived in writing by a majority in interest
of the Holders of the Debentures (which waiver shall not be deemed to be a
waiver of any subsequent default) at the option of a majority in interest of
the Holders and in the discretion of a majority in interest of the Holders,
the Holder may at its option and discretion declare this Debenture, together
with all accrued and unpaid interest herein, to be immediately due and
payable, without presentment, demand, protest or notice of any kinds, all of
which are hereby expressly waived, anything herein or in any note or other
instruments contained to the contrary notwithstanding, and a majority in
interest of the Holders may immediately enforce any and all of the Holder's
rights and remedies provided herein or any other rights or remedies afforded
by law.

      11.      Nothing contained in this Debenture shall be construed as
conferring upon the Holder the right to vote or to receive dividends or to
consent or receive notice as a shareholder in respect of any meeting of
shareholders or any rights whatsoever as a shareholder of the Company, unless
and to the extent converted in accordance with the terms hereof.

      12.      This Debenture may be amended only by the written consent of
the parties hereto.

      13.      No waivers or consents in regard to any provision of this
Debenture may be given other than by an instrument in writing signed by the
Holder.
      IN WITNESS WHEREOF, the Company has caused this Debenture to be duly
executed by an officer thereunto duly authorized.

Dated: August ___, 2001              FLEXXTECH CORPORATION

                                By:______________________________________

                                 ________________________________________
                                (Print Name)
                                 _________________________________________
                                (Title)

<PAGE>

                            EXHIBIT A
                       NOTICE OF CONVERSION

(To be Executed by the Registered Holder in order to Convert the Debenture)
The undersigned hereby irrevocably elects to convert $ ________________ of the
principal
amount of the above Debenture No. ___ into Shares of Common Stock of FLEXXTECH
CORPORATION  (the "Company") according to the conditions hereof, as of the
date written below.

Conversion Date*
_____________________________________________________________________________

Applicable Conversion Price
_____________________________________________________________________________

Signature

_____________________________________________________________________________
                      [Name]

Address:
        _____________________________________________________________________

* This original Debenture must be received by the Company or its transfer
agent by the fifth business date following the Conversion Date.

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