Document:

EX-4.1
                       SECURITIES PURCHASE AGREEMENT

                       SECURITIES PURCHASE AGREEMENT

     Securities Purchase Agreement dated as of January 27, 2006 (this
"Agreement") by and between RMD Technologies, Inc., a California
corporation, with principal executive offices located at 308 West 5th
Street, Holtville, California 92250 (the "Company"), and La Jolla
Cove Investors, Inc. ("Holder").

     WHEREAS, Holder desires to purchase from the Company, and the
Company desires to issue and sell to Holder, upon the terms and
subject to the conditions of this Agreement, a         Convertible
Debenture of the Company in the aggregate principal amount of
$100,000 (the "Debenture"); and

     WHEREAS, in conjunction with the Debenture, the Company has
issued a Warrant to Purchase Common Stock to the Holder (the
"Warrant"); and

     WHEREAS, upon the terms and subject to the conditions set forth
in the Debenture and the Warrant, the Debenture and Warrant are
convertible and exercisable, respectively, into shares of the
Company's Common Stock (the "Common Stock").

     NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, the parties hereto, intending to be
legally bound, hereby agree as follows:

     I.  PURCHASE AND SALE OF DEBENTURE

     A.  Transaction.  Holder hereby agrees to purchase from the
Company, and the Company has offered and hereby agrees to issue and
sell to Holder in a transaction exempt from the registration and
prospectus delivery requirements of the Securities Act of 1933, as
amended (the "Securities Act"), the Debenture.

     B.  Purchase Price; Form of Payment.  The purchase price for the
Debenture to be purchased by Holder hereunder shall be $100,000 (the
"Purchase Price").  Simultaneously with the execution of this
Agreement, Holder shall pay the Purchase Price by wire transfer of
immediately available funds to the Company.  Simultaneously with the
execution of this Agreement, the Company shall deliver the Convertible
Debenture and the Warrants (which shall have been duly authorized,
issued and executed I/N/O Holder or, if the Company otherwise has been
notified, I/N/O Holder's nominee).

     II.  HOLDER'S REPRESENTATIONS AND WARRANTIES

     Holder represents and warrants to and covenants and agrees with
the Company as follows:

     A.  Holder is purchasing the Debenture and the Common Stock
issuable upon conversion or redemption of the Debenture (the
"Conversion Shares" and, collectively with the Debenture and the
Warrant Shares, the "Securities") for its own account, for investment
purposes only and not with a view towards or in connection with the
public sale or distribution thereof in violation of the Securities Act.

     B.  Holder is (i) an "accredited investor" within the meaning of
Rule 501 of Regulation D under the Securities Act, (ii) experienced in
making investments of the kind contemplated by this Agreement, (iii)
capable, by reason of its business and financial experience, of
evaluating the relative merits and risks of an investment in the
Securities, and (iv) able to afford the loss of its investment in the
Securities.

     C.  Holder understands that the Securities are being offered and
sold by the Company in reliance on an exemption from the registration
requirements of the Securities Act and equivalent state securities and
"blue sky" laws, and that the Company is relying upon the accuracy of,
and Holder's compliance with, Holder's representations, warranties and
covenants set forth in this Agreement to determine the availability of
such exemption and the eligibility of Holder to purchase the
Securities;

     D.  Holder understands that the Securities have not been
approved or disapproved by the Securities and Exchange Commission (the
"Commission") or any state or provincial securities commission.

     E.  This Agreement has been duly and validly authorized,
executed and delivered by Holder and is a valid and binding agreement
of Holder enforceable against it in accordance with its terms, subject
to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and similar laws affecting creditors'
rights and remedies generally and except as rights to indemnity and
contribution may be limited by federal or state securities laws or the
public policy underlying such laws.

     III.  THE COMPANY'S REPRESENTATIONS

     The Company represents and warrants to Holder that:

     A.  Capitalization.

     1.  The authorized capital stock of the Company consists of
one hundred million (100,000,000) shares of Common Stock and zero (0)
shares of Series A Preferred Stock of which fifteen million two
thousand three hundred (15,002,300) shares are issued and outstanding
as of the date hereof and are fully paid and nonassessable.  The
amount, exercise, conversion or subscription price and expiration date
for each outstanding option and other security or agreement to
purchase shares of Common Stock is accurately set forth on Schedule II.A.1.

     2.  The Conversion Shares and the Warrant Shares have been
duly and validly authorized and reserved for issuance by the Company,
and, when issued by the Company upon conversion of the Debenture, will
be duly and validly issued, fully paid and nonassessable and will not
subject the holder thereof to personal liability by reason of being
such holder.

     3.  Except as disclosed on Schedule II.A.3., there are no
preemptive, subscription, "call," right of first refusal or other
similar rights to acquire any capital stock of the Company or other
voting securities of the Company that have been issued or granted to
any person and no other obligations of the Company to issue, grant,
extend or enter into any security, option, warrant, "call," right,
commitment, agreement, arrangement or undertaking with respect to any
of their respective capital stock.

     B.  Organization; Reporting Company Status.

     1.  The Company is a corporation duly organized, validly
existing and in good standing under the laws of the state or
jurisdiction in which it is incorporated and is duly qualified as a
foreign corporation in all jurisdictions in which the failure so to
qualify would reasonably be expected to have a material adverse effect
on the business, properties, prospects, condition (financial or
otherwise) or results of operations of the Company or on the
consummation of any of the transactions contemplated by this Agreement
(a "Material Adverse Effect").

     2.  The Company is subject to the reporting requirements of
the Securities Exchange Act of 1934, as amended (the "Exchange Act").
The Common Stock is traded on the OTC Bulletin Board service of the
National Association of Securities Dealers, Inc. ("OTCBB") and the
Company has not received any notice regarding, and to its knowledge
there is no threat of, the termination or discontinuance of the
eligibility of the Common Stock for such trading.

     C.  Authorization.  The Company (i) has duly and validly
authorized and reserved for issuance shares of Common Stock, which is
a number sufficient for the conversion of the Debenture and the
exercise of the Warrant and (ii) at all times from and after the date
hereof shall have a sufficient number of shares of Common Stock duly
and validly authorized and reserved for issuance to satisfy the
conversion of the Debenture in full and the exercise of the Warrant.
The Company understands and acknowledges the potentially dilutive
effect on the Common Stock of the issuance of the Conversion Shares
and the Warrant Shares.  The Company further acknowledges that its
obligation to issue Conversion Shares upon conversion of the
Debenture and the exercise of the Warrant in accordance with this
Agreement is absolute and unconditional regardless of the dilutive
effect that such issuance may have on the ownership interests of
other stockholders of the Company and 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 the conversion of the Debenture.  The Company agrees,
without cost or expense to Holder, to take or consent to any and all
action necessary to effectuate relief under 11 U.S.C.   362.

     D.  Authority; Validity and Enforceability.  The Company has
the requisite corporate power and authority to enter into the
Documents (as such term is hereinafter defined) and to perform all of
its obligations hereunder and thereunder (including the issuance,
sale and delivery to Holder of the Securities).  The execution,
delivery and performance by the Company of the Documents and the
consummation by the Company of the transactions contemplated hereby
and thereby (including, without limitation, the issuance of the
Debenture and the issuance and reservation for issuance of the
Conversion Shares and the Warrant Shares) have been duly and validly
authorized by all necessary corporate action on the part of the
Company.  Each of the Documents has been duly and validly executed
and delivered by the Company and each Document constitutes a valid
and binding obligation of the Company enforceable against it in
accordance with its terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and
similar laws affecting creditors' rights and remedies generally and
except as rights to indemnity and contribution may be limited by
federal or state securities laws or the public policy underlying such
laws.  The Securities have been duly and validly authorized for
issuance by the Company and, when executed and delivered by the
Company, will be valid and binding obligations of the Company
enforceable against it in accordance with their respective terms,
subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and similar laws affecting creditors'
rights and remedies generally.  For purposes of this Agreement, the
term "Documents" means (i) this Agreement; (ii) the Registration
Rights Agreement dated as of even date herewith between the Company
and Holder;  (iii) the Debenture; and (iv) the Warrant.

     E.  Validity of Issuance of the Securities.  The Debenture, the
Conversion Shares upon their issuance in accordance with the
Debenture, and the Warrant Shares will be validly issued and
outstanding, fully paid and nonassessable, and not subject to any
preemptive rights, rights of first refusal, tag-along rights, drag-
along rights or other similar rights.

     F.  Non-contravention.  The execution and delivery by the
Company of the Documents, the issuance of the Securities, and the
consummation by the Company of the other transactions contemplated
hereby and thereby do not, and compliance with the provisions of this
Agreement and other Documents will not, conflict with, or result in
any violation of, or default (with or without notice or lapse of
time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation or loss of a material
benefit under, or result in the creation of any Lien (as such term is
hereinafter defined) upon any of the properties or assets of the
Company or any of its Subsidiaries under, or result in the
termination of, or require that any consent be obtained or any notice
be given with respect to (i) the Articles or Certificate of
Incorporation or By-Laws of the Company or the comparable charter or
organizational documents of any of its Subsidiaries, in each case as
amended to the date of this Agreement, (ii) any loan or credit
agreement, Debenture, bond, mortgage, indenture, lease, contract or
other agreement, instrument or permit applicable to the Company or
any of its Subsidiaries or their respective properties or assets or
(iii) any Law (as such term is hereinafter defined) applicable to, or
any judgment, decree or order of any court or government body having
jurisdiction over, the Company or any of its Subsidiaries or any of
their respective properties or assets.

     G.  Approvals.  No authorization, approval or consent of any
court or public or governmental authority is required to be obtained
by the Company for the issuance and sale of the Securities to Holder
as contemplated by this Agreement, except such authorizations,
approvals and consents as have been obtained by the Company prior to
the date hereof.

     H.  Commission Filings.  The Company has properly and timely
filed with the Commission all reports, proxy statements, forms and
other documents required to be filed with the Commission under the
Securities Act and the Exchange Act since becoming subject to such
Acts (the "Commission Filings").  As of their respective dates, (i)
the Commission Filings complied in all material respects with the
requirements of the Securities Act or the Exchange Act, as the case
may be, and the rules and regulations of the Commission promulgated
thereunder applicable to such Commission Filings and (ii) none of the
Commission Filings contained at the time of its filing any untrue
statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they
were made, not misleading.  The financial statements of the Company
included in the Commission Filings, as of the dates of such
documents, were true and complete in all material respects and
complied with applicable accounting requirements and the published
rules and regulations of the Commission with respect thereto, were
prepared in accordance with generally accepted accounting principles
in the United States ("GAAP") (except in the case of unaudited
statements permitted by Form 10-Q under the Exchange Act) applied on
a consistent basis during the periods involved (except as may be
indicated in the notes thereto) and fairly presented the consolidated
financial position of the Company and its Subsidiaries as of the
dates thereof and the consolidated results of their operations and
cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments that in
the aggregate are not material and to any other adjustment described
therein).

     I.  Full Disclosure.  There is no fact known to the Company
(other than general economic or industry conditions known to the
public generally) that has not been fully disclosed in the Commission
Filings that (i) reasonably could be expected to have a Material
Adverse Effect or (ii) reasonably could be expected to materially and
adversely affect the ability of the Company to perform its
obligations pursuant to the Documents.

     J.  Absence of Events of Default.  No "Event of Default" (as
defined in any agreement or instrument to which the Company is a
party) and no event which, with notice, lapse of time or both, would
constitute an Event of Default (as so defined), has occurred and is
continuing.

     K.  Securities Law Matters.  Assuming the accuracy of the
representations and warranties of Holder set forth in Article I.C,
the offer and sale by the Company of the Securities is exempt from
(i) the registration and prospectus delivery requirements of the
Securities Act and the rules and regulations of the Commission
thereunder and (ii) the registration and/or qualification provisions
of all applicable state and provincial securities and "blue sky"
laws.  The Company shall not directly or indirectly take, and shall
not permit any of its directors, officers or Affiliates directly or
indirectly to take, any action (including, without limitation, any
offering or sale to any person or entity of any security similar to
the Debenture) which will make unavailable the exemption from
Securities Act registration being relied upon by the Company for the
offer and sale to Holder of the Debenture, the Conversion Shares and
the Warrant Shares as contemplated by this Agreement.  No form of
general solicitation or advertising has been used or authorized by
the Company or any of its officers, directors or Affiliates in
connection with the offer or sale of the Debenture (and the
Conversion Shares) as contemplated by this Agreement or any other
agreement to which the Company is a party.

     L.  Registration Rights.  Except as set forth on
Schedule II.L., no Person has, and as of the Closing (as such term is
hereinafter defined), no Person shall have, any demand, "piggy-back"
or other rights to cause the Company to file any registration
statement under the Securities Act relating to any of its securities
or to participate in any such registration statement.

     M.  Interest.  The timely payment of interest on the Debenture
is not prohibited by the Articles or Certificate of Incorporation or
By-Laws of the Company, in each case as amended to the date of this
Agreement, or any agreement, contract, document or other undertaking
to which the Company is a party.

     N.  No Misrepresentation.  No representation or warranty of the
Company contained in this Agreement or any of the other Documents,
any schedule, annex or exhibit hereto or thereto or any agreement,
instrument or certificate furnished by the Company to Holder pursuant
to this Agreement contains any untrue statement of a material fact or
omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.

     O.  Finder's Fee.  There is no finder's fee, brokerage
commission or like payment in connection with the transactions
contemplated by this Agreement for which Holder is liable or
responsible.

     IV.  CERTAIN COVENANTS AND ACKNOWLEDGMENTS

     A.  Filings.  The Company shall make all necessary Commission
Filings and "blue sky" filings required to be made by the Company in
connection with the sale of the Securities to Holder as required by
all applicable laws, and shall provide a copy thereof to Holder
promptly after such filing.

     B.  Reporting Status.  So long as Holder beneficially owns any
of the Securities, the Company shall timely file all reports required
to be filed by it with the Commission pursuant to Section 13 or 15(d)
of the Exchange Act.

     C.  Listing.  Except to the extent the Company lists its Common
Stock on The New York Stock Exchange, The American Stock Exchange or
The Nasdaq Stock Market, the Company shall use its best efforts to
maintain its listing of the Common Stock on OTCBB.  If the Common
Stock is delisted from OTCBB, the Company will use its best efforts
to list the Common Stock on the most liquid national securities
exchange or quotation system that the Common Stock is qualified to be
listed on.

     D.  Reserved Conversion Common Stock.  The Company at all times
from and after the date hereof shall have such number of shares of
Common Stock duly and validly authorized and reserved for issuance as
shall be sufficient for the conversion in full of the Debenture and
the exercise of the Warrant.

     E.  Information.  Each of the parties hereto acknowledges and
agrees that Holder shall not be provided with, nor be given access
to, any material non-public information relating to the Company.

     F.  Accounting and Reserves.  The Company shall maintain a
standard and uniform system of accounting and shall keep proper books
and records and accounts in which full, true, and correct entries
shall be made of its transactions, all in accordance with GAAP
applied on consistent basis through all periods, and shall set aside
on such books for each fiscal year all such reserves for
depreciation, obsolescence, amortization, bad debts and other
purposes in connection with its operations as are required by such
principles so applied.

     G.  Transactions with Affiliates.  So long as the Debenture is
outstanding, neither the Company nor any of its Subsidiaries shall,
directly or indirectly, enter into any material transaction or
agreement with any stockholder, officer, director or Affiliate of the
Company or family member of any officer, director or Affiliate of the
Company, unless the transaction or agreement is (i) reviewed and
approved by a majority of Disinterested Directors (as such term is
hereinafter defined) and (ii) on terms no less favorable to the
Company or the applicable Subsidiary than those obtainable from a
nonaffiliated person.  A "Disinterested Director" shall mean a
director of the Company who is not and has not been an officer or
employee of the Company and who is not a member of the family of,
controlled by or under common control with, any such officer or
employee.

     H.  Certain Restrictions.  So long as the Debenture is
outstanding, no dividends shall be declared or paid or set apart for
payment nor shall any other distribution be declared or made upon any
capital stock of the Company, nor shall any capital stock of the
Company be redeemed, purchased or otherwise acquired (other than a
redemption, purchase or other acquisition of shares of Common Stock
made for purposes of an employee incentive or benefit plan (including
a stock option plan) of the Company or pursuant to any of the
security agreements listed on Schedule III.H) for any consideration
by the Company, directly or indirectly, nor shall any moneys be paid
to or made available for a sinking fund for the redemption of any
Common Stock.

     I.  Short Selling.  So long as the Debenture is outstanding,
Holder agrees and covenants on its behalf and on behalf of its
affiliates that neither Holder nor its affiliates shall at any time
engage in any short sales with respect to the Company's Common Stock,
or sell put options or similar instruments with respect to the
Company's Common Stock. The parties acknowledge that Holder shall be
entitled to sell the Common Stock from each Debenture conversion and
Warrant exercise immediately upon submission of the applicable
Debenture Conversion Notice and Warrant Notice of Exercise, and
payment of the purchase price, to the Company, for such Common Stock.

     V.  ISSUANCE OF COMMON STOCK

     A.  The Company undertakes and agrees that no instruction other
than the instructions referred to in this Article V and customary
stop transfer instructions prior to the registration and sale of the
Common Stock pursuant to an effective Securities Act registration
statement shall be given to its transfer agent for the Conversion
Shares and the Warrant Shares and that the Conversion Shares and the
Warrant 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 contained in this Section V.A. shall affect in any way
Holder's obligations and agreement to comply with all applicable
securities laws upon resale of such Common Stock.

     B.  Holder shall have the right to convert the Debenture and
exercise the Warrant by telecopying an executed and completed
Conversion Notice (as such term is defined in the Debenture) or
Warrant Notice of Exercise (as such term is defined in the Warrant)
to the Company.  Each date on which a Conversion Notice or Warrant
Notice of Exercise is telecopied to and received by the Company in
accordance with the provisions hereof shall be deemed a Conversion
Date (as such term is defined in the Debenture).  The Company shall
cause the transfer agent to transmit the certificates evidencing the
Common Stock issuable upon conversion of the Debenture (together with
a new debenture, if any, representing the principal amount of the
Debenture not being so converted) or exercise of the Warrant
(together with a new Warrant, if any, representing the amount of the
Warrant not being so exercised) to Holder via express courier, or if
a Registration Statement covering the Common Stock has been declared
effective by the SEC by electronic transfer, within two (2) business
days after receipt by the Company of the Conversion Notice or Warrant
Notice of Exercise (the "Delivery Date").

     C.  Upon the conversion of the Debenture or exercise of the
Warrant or part thereof, the Company shall, at its own cost and
expense, take all necessary action (including the issuance of an
opinion of counsel) to assure that the Company's transfer agent shall
issue stock certificates in the name of Holder (or its nominee) or
such other persons as designated by Holder and in such denominations
to be specified at conversion representing the number of shares of
common stock issuable upon such conversion or exercise. The Company
warrants that the Conversion Shares and Warrant Shares will be
unlegended, free-trading, and freely transferable, and will not
contain a legend restricting the resale or transferability of the
Company Common Stock provided the Conversion Shares and Warrant
Shares are being sold pursuant to an effective registration statement
covering the Common Stock to be sold or is otherwise exempt from
registration when sold.

     D.  The Company understands that a delay in the delivery of the
Common Stock in the form required pursuant to this section, or the
Mandatory Redemption Amount described in Section E hereof, beyond the
Delivery Date or Mandatory Redemption Payment Date (as hereinafter
defined) could result in economic loss to the Holder. As compensation
to the Holder for such loss, the Company agrees to pay late payments
to the Holder for late issuance of Common Stock in the form required
pursuant to Section E hereof upon Conversion of the Debenture or late
payment of the Mandatory Redemption Amount, in the amount of $100 per
business day after the Delivery Date or Mandatory Redemption Payment
Date, as the case may be, for each $10,000 of Debenture principal
amount being converted or redeemed. The Company shall pay any
payments incurred under this Section in immediately available funds
upon demand. Furthermore, in addition to any other remedies which may
be available to the Holder, in the event that the Company fails for
any reason to effect delivery of the Common Stock by the Delivery
Date or make payment by the Mandatory Redemption Payment Date, the
Holder will be entitled to revoke all or part of the relevant Notice
of Conversion or rescind all or part of the notice of Mandatory
Redemption by delivery of a notice to such effect to the Company
whereupon the Company and the Holder shall each be restored to their
respective positions immediately prior to the delivery of such
notice, except that late payment charges described above shall be
payable through the date notice of revocation or rescission is given
to the Company.

     E.  Mandatory Redemption. In the event the Company is
prohibited from issuing Common Stock, or fails to timely deliver
Common Stock on a Delivery Date, or upon the occurrence of an Event
of Default (as defined in the Debenture) or for any reason other than
pursuant to the limitations set forth herein, or upon the occurrence
of an Event of Default as defined in the Debenture, then at the
Holder's election, the Company must pay to the Holder ten (10)
business days after request by the Holder or on the Delivery Date (if
requested by the Holder) a sum of money determined by multiplying up
to the outstanding principal amount of the Debenture designated by
the Holder by 130%, together with accrued but unpaid interest thereon
("Mandatory Redemption Payment"). The Mandatory Redemption Payment
must be received by the Holder on the same date as the Company Common
Stock otherwise deliverable or within ten (10) business days after
request, whichever is sooner ("Mandatory Redemption Payment Date").
Upon receipt of the Mandatory Redemption Payment, the corresponding
Debenture principal and interest will be deemed paid and no longer
outstanding.

     F.  Buy-In. In addition to any other rights available to the
Holder, if the Company fails to deliver to the Holder such Common
Stock issuable upon conversion of a Debenture or exercise of a
Warrant by the Delivery Date and if ten (10) days after the Delivery
Date the Holder purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Common Stock which the Holder anticipated
receiving upon such conversion (a "Buy-In"), then the Company shall
pay in cash to the Holder (in addition to any remedies available to
or elected by the Holder) the amount by which (A) the Holder's total
purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (B) the aggregate
principal and/or interest amount of the Debenture or Warrant for
which such conversion or exercise was not timely honored, together
with interest thereon at a rate of 15% per annum, accruing until such
amount and any accrued interest thereon is paid in full (which amount
shall be paid as liquidated damages and not as a penalty). For
example, if the Holder purchases shares of Common Stock having a
total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of $10,000 of Debenture or Warrant principal
and/or interest, the Company shall be required to pay the Holder
$1,000, plus interest. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of the
Buy-In.

     G.  The Securities shall be delivered by the Company to the
Holder pursuant to Section I.B. hereof on a "delivery-against-payment
basis" at the Closing.

     VI.  CLOSING DATE

     The Closing shall occur by the delivery: (i) to the Holder of
the certificate evidencing the Debenture and all other Agreements,
and (ii) to the Company the Purchase Price.

     VII.  CONDITIONS TO THE COMPANY'S OBLIGATIONS

     Holder understands that the Company's obligation to sell the
Debenture on the Closing Date to Holder pursuant to this Agreement is
conditioned upon:

     A.  Delivery by Holder to the Company of the Initial Purchase
Price;

     B.  The accuracy on the Closing Date of the representations and
warranties of Holder contained in this Agreement as if made on the
Closing Date (except for representations and warranties which, by
their express terms, speak as of and relate to a specified date, in
which case such accuracy shall be measured as of such specified date)
and the performance by Holder in all material respects on or before
the Closing Date of all covenants and agreements of Holder required
to be performed by it pursuant to this Agreement on or before the
Closing Date; and

     There shall not be in effect any law or order, ruling, judgment or
writ of any court or public or governmental authority restraining,
enjoining or otherwise prohibiting any of the transactions
contemplated by this Agreement.

     VIII.  CONDITIONS TO HOLDER'S OBLIGATIONS

     The Company understands that Holder's obligation to purchase the
Securities on the Closing Date pursuant to this Agreement is
conditioned upon:

     A.  Delivery by the Company of the Debenture, the Warrant and
the other Agreements (I/N/O Holder or I/N/O Holder's nominee);

     B.  The accuracy on the Closing Date of the representations and
warranties of the Company contained in this Agreement as if made on
the Closing Date (except for representations and warranties which, by
their express terms, speak as of and relate to a specified date, in
which case such accuracy shall be measured as of such specified date)
and the performance by the Company in all respects on or before the
Closing Date of all covenants and agreements of the Company required
to be performed by it pursuant to this Agreement on or before the
Closing Date, all of which shall be confirmed to Holder by delivery
of the certificate of the chief executive officer of the Company to
that effect;

     C.  There not having occurred (i) any general suspension of
trading in, or limitation on prices listed for, the Common Stock on
the OTCBB/Pink Sheet, (ii) the declaration of a banking moratorium or
any suspension of payments in respect of banks in the United States,
(iii) the commencement of a war, armed hostilities or other
international or national calamity directly or indirectly involving
the United States or any of its territories, protectorates or
possessions or (iv) in the case of the foregoing existing at the date
of this Agreement, a material acceleration or worsening thereof;

     D.  There not having occurred any event or development, and
there being in existence no condition, having or which reasonably and
foreseeably could have a Material Adverse Effect;

     E.  There shall not be in effect any law, order, ruling,
judgment or writ of any court or public or governmental authority
restraining, enjoining or otherwise prohibiting any of the
transactions contemplated by this Agreement;

     F.  The Company shall have obtained all consents, approvals or
waivers from governmental authorities and third persons necessary for
the execution, delivery and performance of the Documents and the
transactions contemplated thereby, all without material cost to the
Company;

     G.  Holder shall have received such additional documents,
certificates, payment, assignments, transfers and other deliveries as
it or its legal counsel may reasonably request and as are customary
to effect a closing of the matters herein contemplated;

     H.  Delivery by the Company of an enforceability opinion from
its outside counsel in form and substance satisfactory to Holder

     IX.  SURVIVAL; INDEMNIFICATION

     A.  The representations, warranties and covenants made by each
of the Company and Holder in this Agreement, the annexes, schedules
and exhibits hereto and in each instrument, agreement and certificate
entered into and delivered by them pursuant to this Agreement shall
survive the Closing and the consummation of the transactions
contemplated hereby.  In the event of a breach or violation of any of
such representations, warranties or covenants, the party to whom such
representations, warranties or covenants have been made shall have
all rights and remedies for such breach or violation available to it
under the provisions of this Agreement or otherwise, whether at law
or in equity, irrespective of any investigation made by or on behalf
of such party on or prior to the Closing Date.

     B.  The Company hereby agrees to indemnify and hold harmless
Holder, its affiliates and their respective officers, directors,
partners and members (collectively, the "Holder Indemnitees") from
and against any and all losses, claims, damages, judgments,
penalties, liabilities and deficiencies (collectively, "Losses") and
agrees to reimburse Holder Indemnitees for all out-of-pocket expenses
(including the fees and expenses of legal counsel), in each case
promptly as incurred by Holder Indemnitees and to the extent arising
out of or in connection with:

     1.  any misrepresentation, omission of fact or breach of
any of the Company's representations or warranties contained in this
Agreement or the other Documents, or the annexes, schedules or
exhibits hereto or thereto or any instrument, agreement or
certificate entered into or delivered by the Company pursuant to this
Agreement or the other Documents;

     2.  any failure by the Company to perform any of its
covenants, agreements, undertakings or obligations set forth in this
Agreement or the other Documents or any instrument, certificate or
agreement entered into or delivered by the Company pursuant to this
Agreement or the other Documents;

     3.  the purchase of the Debenture, the conversion of the
Debenture, the payment of interest on the Debenture, the issuance of
the Warrant Shares, the consummation of the transactions contemplated
by this Agreement and the other Documents, the use of any of the
proceeds of the Purchase Price by the Company, the purchase or
ownership of any or all of the Securities, the performance by the
parties hereto of their respective obligations hereunder and under
the Documents or any claim, litigation, investigation, proceedings or
governmental action relating to any of the foregoing, whether or not
Holder is a party thereto; or

     4.  resales of the Common Stock by Holder in the manner
and as contemplated by this Agreement and the Registration Rights
Agreement.

     C.  Holder hereby agrees to indemnify and hold harmless the
Company, its Affiliates and their respective officers, directors,
partners and members (collectively, the "Company Indemnitees") from
and against any and all Losses, and agrees to reimburse the Company
Indemnitees for all out-of-pocket expenses (including the fees and
expenses of legal counsel), in each case promptly as incurred by the
Company Indemnitees and to the extent arising out of or in connection with:

     1.  any misrepresentation, omission of fact or breach of
any of Holder's representations or warranties contained in this
Agreement or the other Documents, or the annexes, schedules or
exhibits hereto or thereto or any instrument, agreement or
certificate entered into or delivered by Holder pursuant to this
Agreement or the other Documents; or

     2.  any failure by Holder to perform in any material
respect any of its covenants, agreements, undertakings or obligations
set forth in this Agreement or the other Documents or any instrument,
certificate or agreement entered into or delivered by Holder pursuant
to this Agreement or the other Documents.

     D.  Promptly after receipt by either party hereto seeking
indemnification pursuant to this Article VIII (an "Indemnified
Party") of written notice of any investigation, claim, proceeding or
other action in respect of which indemnification is being sought
(each, a "Claim"), the Indemnified Party promptly shall notify the
party against whom indemnification pursuant to this Article VIII is
being sought (the "Indemnifying Party") of the commencement thereof,
but the omission so to notify the Indemnifying Party shall not
relieve it from any liability that it otherwise may have to the
Indemnified Party except to the extent that the Indemnifying Party is
materially prejudiced and forfeits substantive rights or defenses by
reason of such failure.  In connection with any Claim as to which
both the Indemnifying Party and the Indemnified Party are parties,
the Indemnifying Party shall be entitled to assume the defense
thereof.  Notwithstanding the assumption of the defense of any Claim
by the Indemnifying Party, the Indemnified Party shall have the right
to employ separate legal counsel and to participate in the defense of
such Claim, and the Indemnifying Party shall bear the reasonable
fees, out-of-pocket costs and expenses of such separate legal counsel
to the Indemnified Party if (and only if): (x) the Indemnifying Party
shall have agreed to pay such fees, out-of-pocket costs and expenses,
(y) the Indemnified Party and the Indemnifying Party reasonably shall
have concluded that representation of the Indemnified Party and the
Indemnifying Party by the same legal counsel would not be appropriate
due to actual or, as reasonably determined by legal counsel to the
Indemnified Party, potentially differing interests between such
parties in the conduct of the defense of such Claim, or if there may
be legal defenses available to the Indemnified Party that are in
addition to or disparate from those available to the Indemnifying
Party or (z) the Indemnifying Party shall have failed to employ legal
counsel reasonably satisfactory to the Indemnified Party within a
reasonable period of time after notice of the commencement of such
Claim.  If the Indemnified Party employs separate legal counsel in
circumstances other than as described in clauses (x), (y) or (z)
above, the fees, costs and expenses of such legal counsel shall be
borne exclusively by the Indemnified Party.  Except as provided
above, the Indemnifying Party shall not, in connection with any Claim
in the same jurisdiction, be liable for the fees and expenses of more
than one firm of legal counsel for the Indemnified Party (together
with appropriate local counsel).  The Indemnifying Party shall not,
without the prior written consent of the Indemnified Party (which
consent shall not unreasonably be withheld), settle or compromise any
Claim or consent to the entry of any judgment that does not include
an unconditional release of the Indemnified Party from all
liabilities with respect to such Claim or judgment.

     E.  In the event one party hereunder should have a claim for
indemnification that does not involve a claim or demand being
asserted by a third party, the Indemnified Party promptly shall
deliver notice of such claim to the Indemnifying Party.  If the
Indemnified Party disputes the claim, such dispute shall be resolved
by mutual agreement of the Indemnified Party and the Indemnifying
Party or by binding arbitration conducted in accordance with the
procedures and rules of the American Arbitration Association.
Judgment upon any award rendered by any arbitrators may be entered in
any court having competent jurisdiction thereof.

     X.  GOVERNING LAW

     This Agreement shall be governed by and interpreted in
accordance with the laws of the State of California, without regard
to the conflicts of law principles of such state.

     XI.  SUBMISSION TO JURISDICTION

     Each of the parties hereto consents to the exclusive
jurisdiction of the federal courts whose districts encompass any part
of the City of San Diego or the state courts of the State of
California sitting in the City of San Diego in connection with any
dispute arising under this Agreement and the other Documents.  Each
party hereto hereby irrevocably and unconditionally waives, to the
fullest extent it may effectively do so, any defense of an
inconvenient forum or improper venue to the maintenance of such
action or proceeding in any such court and any right of jurisdiction
on account of its place of residence or domicile.  Each party hereto
irrevocably and unconditionally consents to the service of any and
all process in any such action or proceeding in such courts by the
mailing of copies of such process by registered or certified mail
(return receipt requested), postage prepaid, at its address specified
in Article XVII.  Each party hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner
provided by law.

     XII.  WAIVER OF JURY TRIAL

     TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE PARTIES
HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OTHER DOCUMENT OR
ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
AGREEMENT AND OTHER DOCUMENTS.  EACH PARTY HERETO (i) CERTIFIES THAT
NEITHER OF THEIR RESPECTIVE REPRESENTATIVES, AGENTS OR ATTORNEYS HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND
(ii) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS HEREIN.

     XIII.  COUNTERPARTS; EXECUTION

     This Agreement may be executed in counterparts, each of which
when so executed and delivered shall be an original, but both of
which counterparts shall together constitute one and the same
instrument.  A facsimile transmission of this signed Agreement shall
be legal and binding on both parties hereto.

     XIV.  HEADINGS

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

     XV.  SEVERABILITY

     In the event any one or more of the provisions contained in this
Agreement or in the other Documents should be held invalid, illegal
or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein or
therein shall not in any way be affected or impaired thereby.  The
parties shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions,
the economic effect of which comes as close as possible to that of
the invalid, illegal or unenforceable provisions.

     XVI.  ENTIRE AGREEMENT; REMEDIES, AMENDMENTS AND WAIVERS

     This Agreement and the Documents constitute the entire agreement
between the parties hereto pertaining to the subject matter hereof
and supersede all prior agreements, understandings, negotiations and
discussions, whether oral or written, of such parties.  No
supplement, modification or waiver of this Agreement shall be binding
unless executed in writing by both parties.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provision hereof (whether or not similar), nor
shall such waiver constitute a continuing waiver unless otherwise
expressly provided.

     XVII.  NOTICES

     Except as may be otherwise provided herein, any notice or other
communication or delivery required or permitted hereunder shall be in
writing and shall be delivered personally, or sent by telecopier
machine or by a nationally recognized overnight courier service, and
shall be deemed given when so delivered personally, or by telecopier
machine or overnight courier service as follows:

     A.  if to the Company, to:

     RMD Technologies, Inc.
     308 West 5th Street
     Holtville, California 92250
     Telephone:  (760) 356-2039
     Facsimile:  (760) 356-2013

     B.  if to Holder, to:

     La Jolla Cove Investors, Inc.
     7817 Herschel Avenue, Suite 200
     La Jolla, California 92037
     Telephone:  (858) 551-8789
     Facsimile:  (858) 551-8779

     The Company or Holder may change the foregoing address by notice
given pursuant to this Article XVII.

     XVIII.  CONFIDENTIALITY

     Each of the Company and Holder agrees to keep confidential and
not to disclose to or use for the benefit of any third party the
terms of this Agreement or any other information which at any time is
communicated by the other party as being confidential without the
prior written approval of the other party; provide, however, that
this provision shall not apply to information which, at the time of
disclosure, is already part of the public domain (except by breach of
this Agreement) and information which is required to be disclosed by
law (including, without limitation, pursuant to Item 601(b)(10) of
Regulation S-K under the Securities Act and the Exchange Act).

     XIX.  ASSIGNMENT

     This Agreement shall not be assignable by either of the parties
hereto.

     IN WITNESS WHEREOF, the parties hereto have duly caused this
Agreement to be executed and delivered on the date first above written.

RMD Technologies, Inc.                 La Jolla Cove Investors, Inc.

By: /s/  Patrick A. Galliher           By: /s/  Travis W. Huff
Patrick A. Galliher                    Travis W. Huff
Title: President                       Title: Portfolio ManagerEX-4.2
                            CONVERTIBLE DEBENTURE

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF
ANY STATE, AND IS BEING OFFERED AND SOLD PURSUANT TO AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
LAWS.  THIS SECURITY MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT OR SUCH OTHER LAWS.

                         7 3/4 % CONVERTIBLE DEBENTURE

Company: RMD Technologies, Inc.
Company Address: 308 West 5th Street, Holtville, California 92250
Closing Date: January 27, 2006
Maturity Date: January 27, 2009
Principal Amount: $100,000
First Payment Due Date: March 15, 2006

     RMD Technologies, Inc., a California corporation, and any
successor or resulting corporation by way of merger, consolidation,
sale or exchange of all or substantially all of the assets or
otherwise  (the "Company"), for value received, hereby promises to
pay to the Holder (as such term is hereinafter defined), or such
other Person (as such term is hereinafter defined) upon order of the
Holder, on the Maturity Date, the Principal Amount (as such term is
hereinafter defined), as such sum may be adjusted pursuant to Article
3, and to pay interest thereon from the Closing Date, monthly in
arrears, on the 15th day of each month (each an "Interest Payment Due
Date" and collectively, the "Interest Payment Due Dates"), commencing
on the First Payment Due Date, at the rate of seven and three-quarter
percent (7 3/4 %) per annum (the "Debenture Interest Rate"), until the
Principal Amount of this Debenture has been paid in full.  All
interest payable on the Principal Amount of this Debenture shall be
calculated on the basis of a 360-day year for the actual number of
days elapsed.  Payment of interest on this Debenture shall be in cash
or, at the option of the Holder, in shares of Common Stock of the
Company valued at the then applicable Conversion Price (as defined
herein). This Debenture may not be prepaid without the written
consent of the Holder.

                                 ARTICLE 1
                                 DEFINITIONS

     Section 1.1  Definitions.  The terms defined in this Article
whenever used in this Debenture have the following respective
meanings:

     (i)  "Affiliate" has the meaning ascribed to such term in
Rule 12b-2 under the Securities Exchange Act of 1934, as amended.

     (ii)  "Bankruptcy Code" means the United States Bankruptcy
Code of 1986, as amended (11 U.S.C.    101 et. seq.).

     (iii)  "Business Day" means a day other than Saturday,
Sunday or any day on which banks located in the State of California
are authorized or obligated to close.

     (iv)  "Capital Shares" means the Common Stock and any other
shares of any other class or series of capital stock, whether now or
hereafter authorized and however designated, which have the right to
participate in the distribution of earnings and assets (upon
dissolution, liquidation or winding-up) of the Company.

     (v)  "Common Shares" or "Common Stock" means shares of the
Company's Common Stock.

     (vi)  "Common Stock Issued at Conversion", when used with
reference to the securities deliverable upon conversion of this
Debenture, means all Common Shares now or hereafter Outstanding and
securities of any other class or series into which this Debenture
hereafter shall have been changed or substituted, whether now or
hereafter created and however designated.

     (vii)  "Conversion" or "conversion" means the repayment
by the Company of the Principal Amount of this Debenture (and, to the
extent the Holder elects as permitted by Section 3.1, accrued and
unpaid interest thereon) by the delivery of Common Stock on the terms
provided in Section 3.2, and "convert," "converted," "convertible"
and like words shall have a corresponding meaning.

     (viii)  "Conversion Date" means any day on which all or any
portion of the Principal Amount of this Debenture is converted in
accordance with the provisions hereof.

     (ix)  "Conversion Notice" means a written notice of
conversion substantially in the form annexed hereto as Exhibit A.

     (x)  "Conversion Price" on any date of determination means
the applicable price for the conversion of this Debenture into Common
Shares on such day as set forth in Section 3.1(a).

     (xi)  "Current Market Price" on any date of determination
means the closing price of a Common Share on such day as reported on
the NASDAQ OTCBB Exchange; provided that, if such security is not
listed or admitted to trading on the NASDAQ OTCBB, as reported on the
principal national security exchange or quotation system on which
such security is quoted or listed or admitted to trading, or, if not
quoted or listed or admitted to trading on any national securities
exchange or quotation system, the closing bid price of such security
on the over-the-counter market on the day in question as reported by
Bloomberg LP or a similar generally accepted reporting service, as
the case may be.

     (xii)  "Deadline" means the date that is the 90th day
from the Closing Date.

     (xiii)  "Debenture" or "Debentures" means this
Convertible Debenture of the Company or such other convertible
debenture(s) exchanged therefor as provided in Section 2.1.

     (xiv)  "Discount Multiplier" has the meaning set forth
in Section 3.1(a).

     (xv)  "Event of Default" has the meaning set forth in
Section 6.1.

     (xvi)  "Holder" means La Jolla Cove Investors, Inc., any
successor thereto, or any Person to whom this Debenture is
subsequently transferred in accordance with the provisions hereof.

     (xvii)  "Interest Payment Due Date" has the meaning set
forth in the opening paragraph of this Debenture.

     (xviii)  "Market Disruption Event" means any event that
results in a material suspension or limitation of trading of the
Common Shares.

     (xix)  "Market Price" per Common Share means the lowest
price of the Common Shares during any Trading Day as reported on the
NASDAQ OTCBB; provided that, if such security is not listed or
admitted to trading on the NASDAQ OTCBB, as reported on the principal
national security exchange or quotation system on which such security
is quoted or listed or admitted to trading, or, if not quoted or
listed or admitted to trading on any national securities exchange or
quotation system, the lowest price of the Common Shares during any
Trading Day on the over-the-counter market as reported by Bloomberg
LP or a similar generally accepted reporting service, as the case may be.

     (xx)  "Maximum Rate" has the meaning set forth in Section 6.4.

     (xxi)  "Outstanding" when used with reference to Common
Shares or Capital Shares (collectively, "Shares") means, on any date
of determination, all issued and outstanding Shares, and includes all
such Shares issuable in respect of outstanding scrip or any
certificates representing fractional interests in such Shares;
provided, however, that any such Shares directly or indirectly owned
or held by or for the account of the Company or any Subsidiary of the
Company shall not be deemed "Outstanding" for purposes hereof.

     (xxii)  "Person" means an individual, a corporation, a
partnership, an association, a limited liability company, an
unincorporated business organization, a trust or other entity or
organization, and any government or political subdivision or any
agency or instrumentality thereof.

     (xxiii)  "Principal Amount" means, for any date of
calculation, the principal sum set forth in the first paragraph of
this Debenture (but only such principal amount as to which the Holder
has (a) actually advanced pursuant to the Securities Purchase
Agreement, and (b) not theretofore furnished a Conversion Notice in
compliance with Section 3.2).

     (xxiv)  "Registration Rights Agreement" means that
certain Registration Rights Agreement of even date herewith by and
between the Company and Holder, as the same may be amended from time
to time.

     (xxv)  "SEC" means the United States Securities and
Exchange Commission.

     (xxvi)  "Securities Act" means the Securities Act of
1933, as amended, and the rules and regulations of the SEC
thereunder, all as in effect at the time.

     (xxvii)  "Securities Purchase Agreement" means that
certain Securities Purchase Agreement of even date herewith by and
among the Company and Holder, as the same may be amended from time to
time.

     (xxviii)  "Subsidiary" means any entity of which securities
or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other persons performing
similar functions are owned directly or indirectly by the Company.

     (xxix)  "Trading Day" means any day on which (i)
purchases and sales of securities on the principal national security
exchange or quotation system on which the Common Shares are traded
are reported thereon, or, if not quoted or listed or admitted to
trading on any national securities exchange or quotation system, as
reported by Bloomberg LP or a similar generally accepted reporting
service, as the case may be, (ii) at least one bid for the trading of
Common Shares is reported and (iii) no Market Disruption Event occurs.

     (xxx)  "Volume Weighted Average Price" per Common
Share means the volume weighted average price of the Common Shares
during any Trading Day as reported on the NASDAQ OTCBB; provided
that, if such security is not listed or admitted to trading on the
NASDAQ OTCBB, as reported on the principal national security exchange
or quotation system on which such security is quoted or listed or
admitted to trading, or, if not quoted or listed or admitted to
trading on any national securities exchange or quotation system, the
volume weighted average price of the Common Shares during any Trading
Day on the over-the-counter market as reported by Bloomberg LP or a
similar generally accepted reporting service, as the case may be.

     All references to "cash" or "$" herein means currency of
the United States of America.

                                ARTICLE 2
                     EXCHANGES, TRANSFER AND REPAYMENT

     Section 2.1  Registration of Transfer of Debentures. This
Debenture, when presented for registration of transfer, shall (if so
required by the Company) be duly endorsed, or be accompanied by a
written instrument of transfer in form reasonably satisfactory to the
Company duly executed, by the Holder duly authorized in writing.

     Section 2.2  Loss, Theft, Destruction of Debenture.  Upon
receipt of evidence satisfactory to the Company of the loss, theft,
destruction or mutilation of this Debenture and, in the case of any
such loss, theft or destruction, upon receipt of indemnity or
security reasonably satisfactory to the Company, or, in the case of
any such mutilation, upon surrender and cancellation of this
Debenture, the Company shall make, issue and deliver, in lieu of such
lost, stolen, destroyed or mutilated Debenture, a new Debenture of
like tenor and unpaid Principal Amount dated as of the date hereof
(which shall accrue interest from the most recent Interest Payment
Due Date on which an interest payment was made in full).  This
Debenture shall be held and owned upon the express condition that the
provisions of this Section 2.2 are exclusive with respect to the
replacement of a mutilated, destroyed, lost or stolen Debenture and
shall preclude any and all other rights and remedies notwithstanding
any law or statute existing or hereafter enacted to the contrary with
respect to the replacement of negotiable instruments or other
securities without the surrender thereof.

     Section 2.3  Who Deemed Absolute Owner.  The Company may deem
the Person in whose name this Debenture shall be registered upon the
registry books of the Company to be, and may treat it as, the
absolute owner of this Debenture (whether or not this Debenture shall
be overdue) for the purpose of receiving payment of or on account of
the Principal Amount of this Debenture, for the conversion of this
Debenture and for all other purposes, and the Company shall not be
affected by any notice to the contrary.  All such payments and such
conversions shall be valid and effectual to satisfy and discharge the
liability upon this Debenture to the extent of the sum or sums so
paid or the conversion or conversions so made.

     Section 2.4  Repayment at Maturity.  At the Maturity Date, the
Company shall repay the outstanding Principal Amount of this
Debenture in whole in cash, together with all accrued and unpaid
interest thereon, in cash, to the Maturity Date.

                               ARTICLE 3
                        CONVERSION OF DEBENTURE

     Section 3.1  Conversion; Conversion Price; Valuation Event.

     (a)  At the option of the Holder, this Debenture may be
converted, either in whole or in part, up to the full Principal
Amount hereof into Common Shares (calculated as to each such
conversion to the nearest 1/100th of a share), at any time and from
time to time on any Business Day, subject to compliance with Section
3.2. The number of Common Shares into which this Debenture may be
converted is equal to the dollar amount of the Debenture being
converted multiplied by eleven, minus the product of the Conversion
Price multiplied by ten times the dollar amount of the Debenture
being converted, and the entire foregoing result shall be divided by
the Conversion Price. In addition, the Company shall pay to the
Holder on the Conversion Date, in cash, any accrued and unpaid
interest on the Debenture being converted not included at the option
of the Holder in clause (i) of the immediately preceding sentence.
The "Conversion Price" shall be equal to the lesser of (i) 80% of the
average of the 3 lowest Volume Weighted Average Prices during the 20
Trading Days prior to Holder's election to convert, or (ii) 80% of
the Volume Weighted Average Price on the Trading Day prior to
Holder's election to convert (the percentage figure being a "Discount
Multiplier"); provided, that in the event the Registration Statement
has not been declared effective by the SEC by the Deadline then the
applicable Discount Multiplier shall decrease by three percentage
points for each month or partial month occurring after the Deadline
that the Registration Statement is not effective or, if the
Registration Statement has theretofore been declared effective but is
not thereafter effective, then the applicable Discount Multiplier
shall decrease by three percentage points for each week or partial
week that the Registration Statement is not effective. In addition,
if the Registration Statement has theretofore been declared effective
but is not thereafter effective, Holder, at its option, shall be
entitled to the Conversion Price on the date that the Registration
Statement is no longer effective, for a period beginning on the date
that the Registration Statement is declared effective and continuing
for the number of days that a Registration Statement was not effective.

     Beginning in the first full calendar month after the
Registration Statement is declared effective, Holder shall convert at
least 5% of the face value of the Debenture per calendar month into
Common Shares of the Company, provided that the Common Shares are
available, registered and freely tradable. If Holder converts more
than 5% of the face value of the Debenture in any calendar month, the
excess over 5% shall be credited against the next month's minimum
conversion amount. In the event Holder does not convert at least 5%
of the Debenture in any particular calendar month, the Company's
remedy shall be limited to Holder not being entitled to collect
interest on the Debenture for that month if the Company gives Holder
written notice, at least 5 business days prior to the end of the
month, of Holder's failure to convert the minimum required amount for
that month.

     (b)  Notwithstanding the provisions of Section 3.1(a), in the
event the Company's Registration Statement has not been declared
effective by the Deadline or, if the Registration Statement has
theretofore been declared effective but is not thereafter effective,
the following will also apply in addition to any damages incurred by
the Holder as a result thereof:

     (i)  The Holder may demand repayment of one hundred and
fifty percent (150%) of the Principal Amount of the Debenture,
together with all accrued and unpaid interest thereon, in cash, at
any time prior to the Company's Registration Statement being declared
effective by the SEC or during the period that the Company's
Registration Statement is not effective, such repayment to be made
within three (3) business days of such demand.  In the event that the
Debenture is so accelerated, in addition to the repayment of one
hundred and fifty percent (150%) of the Principal Amount together
with accrued interest as aforesaid, the Company shall immediately
issue and pay, as the case may be, to the Holder 50,000 Shares of
Common Stock and $15,000 for each thirty (30) day period, or portion
thereof, during which the Principal Amount, including interest
thereon, remains unpaid, with the monthly payment amount to increase
to $20,000 for each thirty (30) day period, or portion thereof, after
the first ninety (90) day period;

     (ii)  If the Holder does not elect to accelerate the
Debenture, the Company shall immediately issue or pay, as the case
may be, to Holder 50,000 Shares of Common Stock and $15,000 for each
thirty (30) day period, or portion thereof, that the Registration
Statement is not effective, with the monthly payment amount to
increase to $20,000 for each thirty (30) day period, or portion
thereof, after the first ninety (90) day period.

     (iii)  If the SEC indicates that the Company's
Registration Statement will be declared effective upon request by the
Company, and the Company does not, within 3 business days of the SEC
indication, request that the Registration Statement become effective,
the amounts set forth in subsections (ii) and (iii) above shall double.

     Section 3.2  Exercise of Conversion Privilege.

     (a)  Conversion of this Debenture may be exercised on any
Business Day by the Holder by telecopying an executed and completed
Conversion Notice to the Company.  Each date on which a Conversion
Notice is telecopied to the Company in accordance with the provisions
of this Section 3.2 shall constitute a Conversion Date.  The Company
shall convert this Debenture and issue the Common Stock Issued at
Conversion in the manner provided below in this Section 3.2, and all
voting and other rights associated with the beneficial ownership of
the Common Stock Issued at Conversion shall vest with the Holder,
effective as of the Conversion Date at the time specified in the
Conversion Notice.  The Conversion Notice also shall state the name
or names (with addresses) of the persons who are to become the
holders of the Common Stock Issued at Conversion in connection with
such conversion. As promptly as practicable after the receipt of the
Conversion Notice as aforesaid, but in any event not more than two
(2) Business Days after the Company's receipt of such Conversion
Notice, the Company shall (i) issue the Common Stock Issued at
Conversion in accordance with the provisions of this Article 3 and
(ii) cause to be mailed for delivery by overnight courier, or if a
Registration Statement covering the Common Stock has been declared
effective by the SEC cause to be electronically transferred, to
Holder (x) a certificate or certificate(s) representing the number of
Common Shares to which the Holder is entitled by virtue of such
conversion, (y) cash, as provided in Section 3.3, in respect of any
fraction of a Common Share deliverable upon such conversion and (z)
cash or shares of Common Stock, as applicable, representing the
amount of accrued and unpaid interest on this Debenture as of the
Conversion Date.  Such conversion shall be deemed to have been
effected at the time at which the Conversion Notice indicates, and at
such time the rights of the Holder of this Debenture, as such (except
if and to the extent that any Principal Amount thereof remains
unconverted), shall cease and the Person and Persons in whose name or
names the Common Stock Issued at Conversion shall be issuable shall
be deemed to have become the holder or holders of record of the
Common Shares represented thereby, and all voting and other rights
associated with the beneficial ownership of such Common Shares shall
at such time vest with such Person or Persons.  The Conversion Notice
shall constitute a contract between the Holder and the Company,
whereby the Holder shall be deemed to subscribe for the number of
Common Shares which it will be entitled to receive upon such
conversion and, in payment and satisfaction of such subscription (and
for any cash adjustment to which it is entitled pursuant to Section
3.4), to surrender this Debenture and to release the Company from all
liability thereon (except if and to the extent that any Principal
Amount thereof remains unconverted).  No cash payment aggregating
less than $1.00 shall be required to be given unless specifically
requested by the Holder.

     (b)  If, at any time after the date of this Debenture, (i) the
Company challenges, disputes or denies the right of the Holder hereof
to effect the conversion of this Debenture into Common Shares or
otherwise dishonors or rejects any Conversion Notice delivered in
accordance with this Section 3.2 or (ii) any third party who is not
and has never been an Affiliate of the Holder commences any lawsuit
or legal proceeding or otherwise asserts any claim before any court
or public or governmental authority which seeks to challenge, deny,
enjoin, limit, modify, delay or dispute the right of the Holder
hereof to effect the conversion of this Debenture into Common Shares,
then the Holder shall have the right, but not the obligation, by
written notice to the Company, to require the Company to promptly
redeem this Debenture for cash at one hundred and fifty (150%) of the
Principal Amount thereof, together with all accrued and unpaid
interest thereon to the date of redemption.  Under any of the
circumstances set forth above, the Company shall be responsible for
the payment of all costs and expenses of the Holder, including
reasonable legal fees and expenses, as and when incurred in defending
itself in any such action or pursuing its rights hereunder (in
addition to any other rights of the Holder).

     (c)  The Holder shall be entitled to exercise its conversion
privilege notwithstanding the commencement of any case under 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 the Holder'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 this
Debenture.  The Company agrees, without cost or expense to the
Holder, to take or consent to any and all action necessary to
effectuate relief under 11 U.S.C.   362.

     Section 3.3  Fractional Shares.  No fractional Common Shares
or scrip representing fractional Common Shares shall be delivered
upon conversion of this Debenture.  Instead of any fractional Common
Shares which otherwise would be delivered upon conversion of this
Debenture, the Company shall pay a cash adjustment in respect of such
fraction in an amount equal to the same fraction multiplied by the
Current Market Price on the Conversion Date.  No cash payment of less
than $1.00 shall be required to be given unless specifically
requested by the Holder.

     Section 3.4  Adjustments.  The Conversion Price and the number
of shares deliverable upon conversion of this Debenture are subject
to adjustment from time to time as follows:

     (i)  Reclassification, Etc.  In case the Company shall
reorganize its capital, reclassify its capital stock, consolidate or
merge with or into another Person (where the Company is not the
survivor or where there is a change in or distribution with respect
to the Common Stock of the Company), sell, convey, transfer or
otherwise dispose of all or substantially all its property, assets or
business to another Person, or effectuate a transaction or series of
related transactions in which more than fifty percent (50%) of the
voting power of the Company is disposed of (each, a "Fundamental
Corporate Change") and, pursuant to the terms of such Fundamental
Corporate Change, shares of common stock of the successor or
acquiring corporation, or any cash, shares of stock or other
securities or property of any nature whatsoever (including warrants
or other subscription or purchase rights) in addition to or in lieu
of common stock of the successor or acquiring corporation ("Other
Property") are to be received by or distributed to the holders of
Common Stock of the Company, then the Holder of this Debenture shall
have the right thereafter, at its sole option, to (x) require the
Company to prepay this Debenture for cash at one hundred and fifty
percent (150%) of the Principal Amount thereof, together with all
accrued and unpaid interest thereon to the date of prepayment,
(y) receive the number of shares of common stock of the successor or
acquiring corporation or of the Company, if it is the surviving
corporation, and Other Property as is receivable upon or as a result
of such Fundamental Corporate Change by a holder of the number of
shares of Common Stock into which the outstanding portion of this
Debenture may be converted at the Conversion Price applicable
immediately prior to such Fundamental Corporate Change or (z) require
the Company, or such successor, resulting or purchasing corporation,
as the case may be, to, without benefit of any additional
consideration therefor, execute and deliver to the Holder a debenture
with substantial identical rights, privileges, powers, restrictions
and other terms as this Debenture in an amount equal to the amount
outstanding under this Debenture immediately prior to such
Fundamental Corporate Change.  For purposes hereof, "common stock of
the successor or acquiring corporation" shall include stock of such
corporation of any class which is not preferred as to dividends or
assets over any other class of stock of such corporation and which is
not subject to prepayment and shall also include any evidences of
indebtedness, shares of stock or other securities which are
convertible into or exchangeable for any such stock, either
immediately or upon the arrival of a specified date or the happening
of a specified event and any warrants or other rights to subscribe
for or purchase any such stock.  The foregoing provisions shall
similarly apply to successive Fundamental Corporate Changes.

     Section 3.5  Certain Conversion Limits.

     For a period of one year after the Closing Date, if and to the
extent that, on any date, the holding by the Holder of this Debenture
would result in the Holder's being deemed the beneficial owner of
more than 9.99% of the then Outstanding shares of Common Stock, then
the Holder shall not have the right, and the Company shall not have
the obligation, to convert any portion of this Debenture as shall
cause such Holder to be deemed the beneficial owner of more than
9.99% of the then Outstanding shares of Common Stock.  If any court
of competent jurisdiction shall determine that the foregoing
limitation is ineffective to prevent a Holder from being deemed the
beneficial owner of more than 9.99% of the then Outstanding shares of
Common Stock, then the Company shall prepay such portion of this
Debenture as shall cause such Holder not to be deemed the beneficial
owner of more than 9.99% of the then Outstanding shares of Common
Stock.  Upon such determination by a court of competent jurisdiction,
the Holder shall have no interest in or rights under such portion of
the Debenture.  Any and all interest paid on or prior to the date of
such determination shall be deemed interest paid on the remaining
portion of this Debenture held by the Holder.  Such prepayment shall
be for cash at a prepayment price of one hundred and fifty percent
(150%) of the Principal Amount thereof, together with all accrued and
unpaid interest thereon to the date of prepayment.

     Section 3.6  Surrender of Debentures.  Upon any
redemption of this Debenture pursuant to Sections 3.2, 3.5 or 6.2, or
upon maturity pursuant to Section 2.4, the Holder shall either
deliver this Debenture by hand to the Company at its principal
executive offices or surrender the same to the Company at such
address by nationally recognized overnight courier.  Payment of the
redemption price or the amount due on maturity specified in Section
2.4, shall be made by the Company to the Holder against receipt of
this Debenture (as provided in this Section 3.5) by wire transfer of
immediately available funds to such account(s) as the Holder shall
specify by written notice to the Company.  If payment of such
redemption price is not made in full by the redemption date, or the
amount due on maturity is not paid in full by the Maturity Date, the
Holder shall again have the right to convert this Debenture as
provided in Article 3 hereof or to declare an Event of Default.

                                 ARTICLE 4
                    STATUS; RESTRICTIONS ON TRANSFER

     Section 4.1  Status of Debenture.  This Debenture constitutes
a legal, valid and binding obligation of the Company, enforceable in
accordance with its terms subject, as to enforceability, to general
principles of equity and to principles of bankruptcy, insolvency,
reorganization and other similar laws of general applicability
relating to or affecting creditors' rights and remedies generally.

     Section 4.2  Restrictions on Transfer.  This Debenture, and
any Common Shares deliverable upon the conversion hereof, have not
been registered under the Securities Act.  The Holder by accepting
this Debenture agrees that this Debenture and the shares of Common
Stock to be acquired as interest on and upon conversion of this
Debenture may not be assigned or otherwise transferred unless and
until (i) the Company has received the opinion of counsel for the
Holder that this Debenture or such shares may be sold pursuant to an
exemption from registration under the Securities Act or (ii) a
registration statement relating to this Debenture or such shares has
been filed by the Company and declared effective by the SEC.

     Each certificate for shares of Common Stock deliverable
hereunder shall bear a legend as follows unless and until such
securities have been sold pursuant to an effective registration
statement under the Securities Act:

     "The securities represented by this certificate
     have not been registered under the Securities Act
     of 1933, as amended (the "Securities Act").  The
     securities may not be offered for sale, sold or
     otherwise transferred except (i) pursuant to an
     effective registration statement under the
     Securities Act or (ii) pursuant to an exemption
     from registration under the Securities Act in
     respect of which the issuer of this certificate
     has received an opinion of counsel satisfactory
     to the issuer of this certificate to such effect.
     Copies of the agreement covering both the
     purchase of the securities and restrictions on
     their transfer may be obtained at no cost by
     written request made by the holder of record of
     this certificate to the Secretary of the issuer
     of this certificate at the principal executive
     offices of the issuer of this certificate."

                               ARTICLE 5
                               COVENANTS

     Section 5.1  Conversion.  The Company shall cause the transfer
agent, not later than two (2) Business Days after the Company's
receipt of a Conversion Notice, to issue and deliver to the Holder
the requisite shares of Common Stock Issued at Conversion. Such
delivery shall be by electronic transfer if a Registration Statement
covering the Common Stock has been declared effective by the SEC.

     Section 5.2  Notice of Default.  If any one or more events
occur which constitute or which, with notice, lapse of time, or both,
would constitute an Event of Default, the Company shall forthwith
give notice to the Holder, specifying the nature and status of the
Event of Default or such other event(s), as the case may be.

     Section 5.3  Payment of Obligations.  So long as this
Debenture shall be outstanding, the Company shall pay, extend, or
discharge at or before maturity, all its respective material
obligations and liabilities, including, without limitation, tax
liabilities, except where the same may be contested in good faith by
appropriate proceedings.

     Section 5.4  Compliance with Laws.  So long as this Debenture
shall be outstanding, the Company shall comply with all applicable
laws, ordinances, rules, regulations and requirements of governmental
authorities, except for such noncompliance which would not have a
material adverse effect on the business, properties, prospects,
condition (financial or otherwise) or results of operations of the
Company and the Subsidiaries.

     Section 5.5  Inspection of Property, Books and Records.  So
long as this Debenture shall be outstanding, the Company shall keep
proper books of record and account in which full, true and correct
entries shall be made of all material dealings and transactions in
relation to its business and activities and shall permit
representatives of the Holder at the Holder's expense to visit and
inspect any of its respective properties, to examine and make
abstracts from any of its respective books and records, not
reasonably deemed confidential by the Company, and to discuss its
respective affairs, finances and accounts with its respective
officers and independent public accountants, all at such reasonable
times and as often as may reasonably be desired.

     Section 5.6  Right of First Refusal on Other Financing.  In
the event that the Company obtains a commitment for any other
financing (either debt, equity, or a combination thereof) which is to
close during the term of this Debenture, Holder shall be entitled to
a right of first refusal to enable it to, at Holder's option, either:
(i) match the terms of the other financing, or (ii) add additional
principal to this Debenture, in the amount of such other financing,
on the same terms and conditions as this Debenture. The Company shall
deliver to Holder, at least 10 days prior to the proposed closing
date of such transaction, written notice describing the proposed
transaction, including the terms and conditions thereof, and
providing Holder an option during the 10 day period following
delivery of such notice to either provide the financing being offered
in such transaction on the same terms as contemplated by such
transaction, or to add additional principal to this Debenture, in the
amount of such other financing, on the same terms and conditions as
this Debenture.

                                 ARTICLE 6
                       EVENTS OF DEFAULT; REMEDIES

     Section 6.1  Events of Default.  "Event of Default" wherever
used herein means any one of the following events:

     (i)  the Company shall default in the payment of principal
of or interest on this Debenture as and when the same shall be due
and payable and, in the case of an interest payment default, such
default shall continue for five (5) Business Days after the date such
interest payment was due, or the Company shall fail to perform or
observe any other covenant, agreement, term, provision, undertaking
or commitment under this Debenture, the Warrants (as defined in the
Securities Purchase Agreement), the Securities Purchase Agreement or
the Registration Rights Agreement and such default shall continue for
a period of ten (10) Business Days after the delivery to the Company
of written notice that the Company is in default hereunder or thereunder;

     (ii)  any of the representations or warranties made by the
Company herein, in the Securities Purchase Agreement, the
Registration Rights Agreement or in any certificate or financial or
other written statements heretofore or hereafter furnished by or on
behalf of the Company in connection with the execution and delivery
of this Debenture, the Warrants, the Securities Purchase Agreement or
the Registration Rights Agreement shall be false or misleading in a
material respect on the Closing Date;

     (iii)  under the laws of any jurisdiction not otherwise
covered by clauses (iv) and (v) below, the Company or any Subsidiary
(A) becomes insolvent or generally not able to pay its debts as they
become due, (B) admits in writing its inability to pay its debts
generally or makes a general assignment for the benefit of creditors,
(C) institutes or has instituted against it any proceeding seeking
(x) to adjudicate it a bankrupt or insolvent, (y) liquidation,
winding-up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any law relating to
bankruptcy, insolvency, reorganization or relief of debtors including
any plan of compromise or arrangement or other corporate proceeding
involving or affecting its creditors or (z) the entry of an order for
relief or the appointment of a receiver, trustee or other similar
person for it or for any substantial part of its properties and
assets, and in the case of any such official proceeding instituted
against it (but not instituted by it), either the proceeding remains
undismissed or unstayed for a period of sixty (60) calendar days, or
any of the actions sought in such proceeding (including the entry of
an order for relief against it or the appointment of a receiver,
trustee, custodian or other similar official for it or for any
substantial part of its properties and assets) occurs or (D) takes
any corporate action to authorize any of the above actions;

     (iv)  the entry of a decree or order by a court having
jurisdiction in the premises adjudging the Company or any Subsidiary
a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or
in respect of the Company under the Bankruptcy Code or any other
applicable Federal or state law, or appointing a receiver,
liquidator, assignee, trustee or sequestrator (or other similar
official) of the Company or of any substantial part of its property,
or ordering the winding-up or liquidation of its affairs, and any
such decree or order continues and is unstayed and in effect for a
period of sixty (60) calendar days;

     (v)  the institution by the Company or any Subsidiary of
proceedings to be adjudicated a bankrupt or insolvent, or the consent
by it to the institution of bankruptcy or insolvency proceedings
against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under the Bankruptcy Code or any
other applicable federal or state law, or the consent by it to the
filing of any such petition or to the appointment of a receiver,
liquidator, assignee, trustee or sequestrator (or other similar
official) of the Company or of any substantial part of its property,
or the making by it of an assignment for the benefit of creditors, or
the admission by it in writing of its inability to pay its debts
generally as and when they become due, or the taking of corporate
action by the Company in furtherance of any such action;
a final judgment or final judgments for the payment of money shall
have been entered by any court or courts of competent jurisdiction
against the Company and remains undischarged for a period (during
which execution shall be effectively stayed) of thirty (30) days,
provided that the aggregate amount of all such judgments at any time
outstanding (to the extent not paid or to be paid, as evidenced by a
written communication to that effect from the applicable insurer, by
insurance) exceeds One Hundred Thousand Dollars ($100,000);

     (vi)  it becomes unlawful for the Company to perform or
comply with its obligations under this Debenture, the Conversion
Warrant, the Securities Purchase Agreement or the Registration Rights
Agreement in any respect;

     (vii)  the Common Shares shall be delisted from the
NASDAQ OTCBB (the "Trading Market" or, to the extent the Company
becomes eligible to list its Common Stock on any other national
security exchange or quotation system, upon official notice of
listing on any such exchange or system, as the case may be, it shall
be the "Trading Market") or suspended from trading on the Trading
Market, and shall not be reinstated, relisted or such suspension
lifted, as the case may be, within five (5) days or;

     (viii)  the Company shall default (giving effect to any
applicable grace period) in the payment of principal or interest as
and when the same shall become due and payable, under any
indebtedness, individually or in the aggregate, of more than One
Hundred Thousand Dollars ($100,000);

     Section 6.2  Acceleration of Maturity; Rescission and
Annulment.  If an Event of Default occurs and is continuing, then and
in every such case the Holder may, by a notice in writing to the
Company, rescind any outstanding Conversion Notice and declare that
all amounts owing or otherwise outstanding under this Debenture are
immediately due and payable and upon any such declaration this
Debenture shall become immediately due and payable in cash at a price
of one hundred and fifty percent (150%) of the Principal Amount
thereof, together with all accrued and unpaid interest thereon to the
date of payment; provided, however, in the case of any Event of
Default described in clauses (iii), (iv), (v) or (vii) of Section
6.1, such amount automatically shall become immediately due and
payable without the necessity of any notice or declaration as aforesaid.

     Section 6.3  Late Payment Penalty.  If any portion of the
principal of or interest on this Debenture shall not be paid within
ten (10) days of when it is due, the Discount Multiplier under this
Debenture shall decrease by one percentage point (1%) for all
conversions of this Debenture thereafter.

     Section 6.4  Maximum Interest Rate.  Notwithstanding anything
herein to the contrary, if at any time the applicable interest rate
as provided for herein shall exceed the maximum lawful rate which may
be contracted for, charged, taken or received by the Holder in
accordance with any applicable law (the "Maximum Rate"), the rate of
interest applicable to this Debenture shall be limited to the Maximum
Rate.  To the greatest extent permitted under applicable law, the
Company hereby waives and agrees not to allege or claim that any
provisions of this Note could give rise to or result in any actual or
potential violation of any applicable usury laws.

     Section 6.5  Remedies Not Waived.  No course of dealing
between the Company and the Holder or any delay in exercising any
rights hereunder shall operate as a waiver by the Holder.

     Section 6.6  Remedies.  The Company acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction
contemplated hereby. Accordingly, the Company acknowledges that the
remedy at law for a breach of its obligations under this Debenture
will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this Debenture, that the
Holder shall be entitled to all other available remedies at law or in
equity, and in addition to the penalties assessable herein, to an
injunction or injunctions restraining, preventing or curing any
breach of this Debenture and to enforce specifically the terms and
provisions thereof, without the necessity of showing economic loss
and without any bond or other security being required.

     Section 6.7  Payment of Certain Amounts.  Whenever pursuant
to this Debenture the Company is required to pay an amount in excess
of the Principal Amount plus accrued and unpaid interest, the Company
and the Holder agree that the actual damages to the Holder from the
receipt of cash payment on this Debenture may be difficult to
determine and the amount to be so paid by the Company represents
stipulated damages and not a penalty and is intended to compensate
the Holder in part for loss of the opportunity to convert this
Debenture and to earn a return from the sale of shares of Common
Stock acquired upon conversion of this Debenture at a price in excess
of that price paid for such shares pursuant to this Debenture. The
Company and the Holder hereby agree that such amount of stipulated
damages is not disproportionate to the possible loss to the Holder
from the receipt of a cash payment without the opportunity to convert
this Debenture into shares of Common Stock.

                                  ARTICLE 7
                                MISCELLANEOUS

     Section 7.1  Notice of Certain Events.  In the case of the
occurrence of any event described in Section 3.4 of this Debenture,
the Company shall cause to be mailed to the Holder of this Debenture
at its last address as it appears in the Company's security registry,
at least twenty (20) days prior to the applicable record, effective
or expiration date hereinafter specified (or, if such twenty (20)
days' notice is not possible, at the earliest possible date prior to
any such record, effective or expiration date), a notice thereof,
including, if applicable, a statement of (y) the date on which a
record is to be taken for the purpose of such dividend, distribution,
issuance or granting of rights, options or warrants, or if a record
is not to be taken, the date as of which the holders of record of
Common Stock to be entitled to such dividend, distribution, issuance
or granting of rights, options or warrants are to be determined or
(z) the date on which such reclassification, consolidation, merger,
sale, transfer, dissolution, liquidation or winding-up is expected to
become effective, and the date as of which it is expected that
holders of record of Common Stock will be entitled to exchange their
shares for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale transfer, dissolution,
liquidation or winding-up.

     Section 7.2  Register.  The Company shall keep at its
principal office a register in which the Company shall provide for
the registration of this Debenture.  Upon any transfer of this
Debenture in accordance with Articles 2 and 4 hereof, the Company
shall register such transfer on the Debenture register.

     Section 7.3  Withholding.  To the extent required by
applicable law, the Company may withhold amounts for or on account of
any taxes imposed or levied by or on behalf of any taxing authority
in the United States having jurisdiction over the Company from any
payments made pursuant to this Debenture.

     Section 7.4  Transmittal of Notices.  Except as may be
otherwise provided herein, any notice or other communication or
delivery required or permitted hereunder shall be in writing and
shall be delivered personally, or sent by telecopier machine or by a
nationally recognized overnight courier service, and shall be deemed
given when so delivered personally, or by telecopier machine or
overnight courier service as follows:

     (1)  if to the Company, to:

     RMD Technologies, Inc.
     308 West 5th Street
     Holtville, California 92250
     Telephone:  (760) 356-2039
     Facsimile:  (760) 356-2013

     (2)  if to the Holder, to:

     La Jolla Cove Investors, Inc.
     7817 Herschel Avenue, Suite 200
     La Jolla, California 92037
     Telephone:  (858) 551-8789
     Facsimile:  (858) 551-8779

     Each of the Holder or the Company may change the foregoing address by
notice given pursuant to this Section 7.4.

     Section 7.5  Attorneys' Fees.  Should any party hereto employ
an attorney for the purpose of enforcing or construing this
Debenture, or any judgment based on this Debenture, in any legal
proceeding whatsoever, including insolvency, bankruptcy, arbitration,
declaratory relief or other litigation, the prevailing party shall be
entitled to receive from the other party or parties thereto
reimbursement for all reasonable attorneys' fees and all reasonable
costs, including but not limited to service of process, filing fees,
court and court reporter costs, investigative costs, expert witness
fees, and the cost of any bonds, whether taxable or not, and that
such reimbursement shall be included in any judgment or final order
issued in that proceeding.  The "prevailing party"  means the party
determined by the court to most nearly prevail and not necessarily
the one in whose favor a judgment is rendered.

     Section 7.6  Governing Law.  This Debenture shall be governed
by, and construed in accordance with, the laws of the State of
California (without giving effect to conflicts of laws principles).
With respect to any suit, action or proceedings relating to this
Debenture, the Company irrevocably submits to the exclusive
jurisdiction of the courts of the State of California sitting in San
Diego and the United States District Court located in the City of San
Diego and hereby waives, to the fullest extent permitted by
applicable law, any claim that any such suit, action or proceeding
has been brought in an inconvenient forum.  Subject to applicable
law, the Company agrees that final judgment against it in any legal
action or proceeding arising out of or relating to this Debenture
shall be conclusive and may be enforced in any other jurisdiction
within or outside the United States by suit on the judgment, a
certified copy of which judgment shall be conclusive evidence thereof
and the amount of its indebtedness, or by such other means provided
by law.

     Section 7.7  Waiver of Jury Trial. To the fullest extent
permitted by law, each of the parties hereto hereby knowingly,
voluntarily and intentionally waives its respective rights to a jury
trial of any claim or cause of action based upon or arising out of
this Debenture or any other document or any dealings between them
relating to the subject matter of this Debenture and other documents.
Each party hereto (i) certifies that neither of their respective
representatives, agents or attorneys has represented, expressly or
otherwise, that such party would not, in the event of litigation,
seek to enforce the foregoing waivers and (ii) acknowledges that it
has been induced to enter into this Debenture by, among other things,
the mutual waivers and certifications herein.

     Section 7.8  Headings.  The headings of the Articles and
Sections of this Debenture are inserted for convenience only and do
not constitute a part of this Debenture.

     Section 7.9  Payment Dates.  Whenever any payment hereunder
shall be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.

     Section 7.10  Binding Effect.  Each Holder by accepting this
Debenture agrees to be bound by and comply with the terms and
provisions of this Debenture.

     Section 7.11  No Stockholder Rights.  Except as otherwise
provided herein, this Debenture shall not entitle the Holder to any
of the rights of a stockholder of the Company, including, without
limitation, the right to vote, to receive dividends and other
distributions, or to receive any notice of, or to attend, meetings of
stockholders or any other proceedings of the Company, unless and to
the extent converted into shares of Common Stock in accordance with
the terms hereof.

     Section 7.12  Facsimile Execution.    Facsimile execution shall
be deemed originals.

     IN WITNESS WHEREOF, the Company has caused this Debenture to be
signed by its duly authorized officer on the date of this Debenture.

                                       RMD Technologies, Inc.

                                       By: /s/  Patrick A. Galliher
                                       Title: President

                                   EXHIBIT A
                          DEBENTURE CONVERSION NOTICE

TO:  RMD Technologies, Inc.

     The undersigned owner of this Convertible Debenture due January
27, 2009 (the "Debenture") issued by RMD Technologies, Inc. (the
"Company") hereby irrevocably exercises its option to convert
$__________ Principal Amount of the Debenture into shares of Common
Stock in accordance with the terms of the Debenture.  The undersigned
hereby instructs the Company to convert the portion of the Debenture
specified above into shares of Common Stock Issued at Conversion in
accordance with the provisions of Article 3 of the Debenture.  The
undersigned directs that the Common Stock and certificates therefor
deliverable upon conversion, the Debenture reissued in the Principal
Amount not being surrendered for conversion hereby, [the check or
shares of Common Stock in payment of the accrued and unpaid interest
thereon to the date of this Notice,] together with any check in
payment for fractional Common Stock, be registered in the name of
and/or delivered to the undersigned unless a different name has been
indicated below.  All capitalized terms used and not defined herein
have the respective meanings assigned to them in the Debenture.  The
conversion pursuant hereto shall be deemed to have been effected at
the date and time specified below, and at such time the rights of the
undersigned as a Holder of the Principal Amount of the Debenture set
forth above shall cease and the Person or Persons in whose name or
names the Common Stock Issued at Conversion shall be registered shall
be deemed to have become the holder or holders of record of the
Common Shares represented thereby and all voting and other rights
associated with the beneficial ownership of such Common Shares shall
at such time vest with such Person or Persons.

Date and time:  __________________
By: ___________________________
Title: _________________________
Fill in for registration of Debenture:
Please print name and address
(including ZIP code number):

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