VIRAL GENETICS INC /DE/
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>ex10-1_8k.txt
<TEXT>
Exhibit 10.1
Form 8-K, August 2002
Viral Genetics, Inc.
File No. 000-26875
                            Top Hat Investments Inc.
                                 347 Bay Street
                                   Suite 1002
                                Toronto, Ontario
                                     M5W 1G2

                            Telephone (416) 360-5398
                               Fax (416) 363-4188

--------------------------------------------------------------------------------
June 28, 2002

Haig Keledjian
Viral Genetics, Inc.
905 Mission Street
South Pasadena, CA  91030

                                RE: subscription

Dear Sir:

This letter shall confirm that the total amount of our  subscription  for shares
of Viral Genetics, Inc. is USD$1,323,221.60, which is calculated as follows:

      Invoice                               $  593,946.67
      Promissory Note - direct to Top Hat   $  449,000.00
      Assigned related party notes payable  $  280,275.00
                                           ---------------
                                     TOTAL  $1,323,221.60
                                           ---------------

The  subscription,  attached  hereto,  is therefore for 1,654,027 Units of Viral
Genetics,  Inc. which Units are composed of 1,654,027  common shares and 827,013
warrants to purchase common shares.

Please  have the shares  certificate  issued in the name of Top Hat  Investments
Inc. with the following mailing address:

      25 The Esplanade
      Station A, Box 636
      Toronto, Ontario M5W 1G2

Fedex  the  share  certificates,  a copy of the  executed  subscription  and the
warrant to:

      347 Bay Street
      Toronto, Ontario  M5H 2R7

Should you have any questions, please contact the undersigned.

Regards,

/s/ per Phillip W. Knight


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