SKYBRIDGE WIRELESS INC
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SKYBRIDGE WIRELESS, INC. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ATTACHED: </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>DOCUMENT 1.
    SECURITIES PURCHASE AGREEMENT</U> </FONT></P>





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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM OF DEBENTURE </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM OF DEBENTURE
CONVERSION NOTICE </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURE PAGE /
SECURITIES PURCHASE AGREEMENT </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ACCEPTANCE PAGE BY
COMPANY (FORM) </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>DOCUMENT 2.    INVESTOR
QUESTIONNAIRE (and additional signature page)</U> </FONT></P>



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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>DOCUMENT 3.    ESCROW
AGENT INFO: PAYMENT </U></FONT></P>










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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SECURITIES PURCHASE
AGREEMENT </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
SECURITIES PURCHASE AGREEMENT (&#147;Agreement&#148;), is made, by and between <B>SkyBridge
Wireless, Inc.,</B> a Nevada corporation, with headquarters located at 6565 Spencer Street,
Suite 205, Las Vegas, NV 89119 (the &#147;Company&#148;), and the investor(s) named on the
signature page(s) hereto, together with their permitted transferees (singly the
&#147;Investor&#148; cumulatively the &#147;Investors&#148;), and is effective as of the
date of acceptance, by signature, of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOTE:
IF YOU INTEND TO SUBSCRIBE, PLEASE COMPLETE THE SIGNATURE PAGE, SIGN IT, AND COMPLETE AND
SIGN THE ATTACHED QUESTIONNAIRE, AND PAY FOR THE SECURITIES PREFERABLY BY WIRE TRANSFER
PER THE INSTRUCTIONS ATTACHED, AND RETURN THE SIGNED SIGNATURE PAGE TO THE ESCROW AGENT,
BELOW, AND ONE FULL SET OF COMPLETE SIGNED DOCUMENTS TO THE COMPANY BY OVERNIGHT TO:
SKYBRIDGE WIRELESS, INC., ATT: PRESIDENT, 6565 SPENCER STREET, SUITE 205, LAS VEGAS, NV
89119.</B> </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RECITALS: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The Company and the Investors are executing and delivering this Agreement in
          reliance upon the exemption from securities registration afforded by
          Section&nbsp;4(2) of the Securities Act of 1933, as amended (the
          &#147;Securities Act) and, if any, other applicable exemption as determined by
          the Company, with each signed copy of this Agreement by each Investor to be
          presented to the Company as a subscription for acceptance or rejection by the
          Company; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          the Investors confirm their purchase, upon the terms and conditions stated in
          this Agreement, for an aggregate purchase price of up to $1,000,000
          (&#147;Maximum&#148;) of Convertible Debentures (the &#147;Offering&#148;);
          therefore, </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
consideration of the premises and the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and the Investors hereby agree as follows: </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I<BR> PURCHASE AND
SALE OF SECURITIES  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1
<U>Offering and Purchase and Sale of Securities.</U> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A.&nbsp;&nbsp;&nbsp;&nbsp;
          THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
          OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND ARE BEING OFFERED
          AND SOLD IN RELIANCE UPON EXEMPTION(S) FROM THE REGISTRATION REQUIREMENTS OF
          SAID ACT AND SUCH LAWS. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.&nbsp;&nbsp;&nbsp;&nbsp;
          The Company is offering the &#147;Securities&#148; (below) and at the
          &#147;Closing&#148; (defined below), the Company will sell to the Investor
          Convertible Debentures in the face amount equal to the Purchase Price (amount
          invested), minimum debenture $10,000 (the &#147;Securities&#148;). The terms of
          the Convertible Debentures are contained in the form of Convertible Debenture
          attached hereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities are the Convertible
Debentures, and include also shares issuable upon any conversion. </FONT></P>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company will deliver the signed Convertible Debenture following payment, to be sent out
following the Closing, for prompt delivery as soon as practicable thereafter. Once the
Minimum is reached and the initial Closing occurs, any subsequent subscription funds for
subscriptions accepted by the Company, up to the Maximum, shall be delivered directly to
the Company or promptly released to the Company by the Escrow Agent and the Company will
also deliver certificates representing the Securities as soon as practicable thereafter.
Except if the Minimum is not reached by the scheduled Closing date, including extension as
stated below, unless otherwise stated below, the subscription is irrevocable and all
payments are non-refundable. </FONT>
</TD>
</TR>
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<BR>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTE:
For the purpose of this Agreement, the Escrow Agent information is attached under the
document titled: ESCROW AGENT. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE II<BR> INVESTOR&#146;S
REPRESENTATIONS AND CONVERSION DEBENTUREIES  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Investor (he/she/it) represents and Conversion Debentures to the Company with respect to
itself and its purchase hereunder that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1
<U>Investment Purpose</U>. The Investor is purchasing the Securities for its own account and not
with a present view toward the public sale or distribution thereof, except pursuant to
sales registered or exempted from registration under the Securities Act; provided,
however, that by making the representation herein, the Investor does not agree to hold
any of the Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to a registration
statement or an exemption under the Securities Act.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2
<U>Ownership</U>. The Investor is limited in the amount of shares it may own. In no event
shall the Investor be entitled to hold Convertible Debentures convertible with ownership
of any other shares into that number of shares of Common Stock which would be in excess
of that amount for which the number of shares of Common Stock beneficially owned (as such
term is defined under Section 13(d) and Rule 13d-3 of the Securities Exchange Act of
1934, as amended (the &#147;1934 Act&#148;)) by the Investor would result in beneficial
ownership, at any one point in time, by the Investor of more than 9.99% of the
outstanding shares of Common Stock of the Company, as determined in accordance with
Rule13d-1(j) and related rules.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nothing stated herein shall restrict
the Investor from beneficially owning in the aggregate more than 9.99% of the outstanding
shares of Common Stock of the Company, as long as the 9.99% is not owned by such Investor
at any one point in time. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ownership includes if such Investor
is deemed to act in concert with other owners, and includes shares underlying Conversion
Debentures and other rights, and each Investor hereby agrees not to vote or sell ownership
in any manner individually or by mutual agreement with other owners for any reason
including to directly or indirectly take control of the Management of the Company or
effect or manipulate the trading price of the Common Stock or act in a way which causes a
Material Adverse Effect, defined herein, on the Company by short selling or otherwise. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.3 Accredited Investor Status. The
Investor is an &#147;accredited investor&#148; as defined in Section 2(a) (15) of the
Securities Act and SEC Rule 215 promulgated under the Securities Act. The Investor has
delivered an Investor Questionnaire in the form of Exhibit hereto to the Company. The
Investor hereby represents that, either by reason of the Investor&#146;s business or
financial experience or the business or financial experience of the Investor&#146;s
advisors, if any, the Investor has the capacity to protect the Investor&#146;s own
interests in connection with the transaction contemplated hereby and is a
&#147;sophisticated&#148; investor. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>NOTE: In limited cases, the Company
may approve an Investor who is not an &#147;accredited investor.&#148;</U></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4
<U>Reliance on Exemptions</U>. The Investor understands that the Securities are being offered
and sold to it in reliance upon specific exemptions from the registration requirements of
United States federal and state securities laws and that the Company is relying upon the
truth and accuracy of, and the Investor&#146;s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Investor set forth
herein in order to determine the availability of such exemptions and the eligibility of
the Investor to acquire the Securities.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5
<U>Information</U>. The Investor and its advisors, if any, have either had access through the
Electronic Data Gathering, Analysis, and Retrieval System (&#147;EDGAR&#148;) or from the
SEC website as to all filed information on the Company and has been given all public
available information that has been requested by the Investor or its advisors, if any,
including, without limitation the Company annual and periodic reports filed with the SEC (&#147;SEC
Documents&#148;). The Investor and its advisors, if any, have been afforded the
opportunity to ask questions of the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6
<U>Acknowledgement of Risk/Escrow Agent</U>. The Investor acknowledges and understands
that its investment in the Securities involves a significant degree of risk, including,
without limitation, (i) the Company remains a business with limited operating history and
requires substantial funds in addition to the proceeds from the sale of Securities; (ii)
an investment in the Company is highly speculative, and only investors who can afford the
loss of their entire investment should consider investing in the Company and the
Securities; (iii) the Investor may not be able to liquidate its investment; (iv)
transferability of the Securities is extremely limited; (v) in the event of a disposition
of the Securities, the Investor could sustain the loss of its entire investment and (vi)
the Company has not paid any dividends on its Common Stock since inception and does not
anticipate the payment of dividends in the foreseeable future. Additional information and
risks are more fully set forth in the SEC Documents (described herein). Escrow Agent is
not responsible in any way to Investors for risks or otherwise, other than ministerial
act of holding and disposing of funds as expressly stated herein.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7
<U>Governmental Review</U>. The Investor understands that no United States federal or state
agency or any other government or governmental agency has passed upon or made any
recommendation or endorsement of the Company or the Securities or an investment therein.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8
     <U>Transfer or Resale</U>.  The Investor understands that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;          except
as otherwise provided in Article V, the Securities have not been and are           not
being registered under the Securities Act or any applicable state securities
          laws and, consequently, the Investor may have to bear the risk of owning the
          Securities for an indefinite period of time because the Securities may not be
          transferred unless (i)&nbsp;the resale of the Securities is registered pursuant
          to an effective registration statement under the Securities Act; (ii)&nbsp;the
          Investor has delivered to the Company an opinion of counsel (in form, substance
          and scope customary for opinions of counsel in comparable transactions) to the
          effect that the Securities to be sold or transferred may be sold or transferred
          pursuant to an exemption from such registration; or (iii)&nbsp;the Securities
          are sold or transferred pursuant to Rule&nbsp;144;  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;          any
sale of the Securities made in reliance on Rule&nbsp;144 may be made only in
          accordance with the terms of Rule&nbsp;144 and, if Rule&nbsp;144 is not
          applicable, any resale of the Securities under circumstances in which the
seller           (or the person through whom the sale is made) may be deemed to be an
underwriter           (as that term is defined in the Securities Act) may require
compliance with some           other exemption under the Securities Act or the rules and
regulations of the SEC           thereunder; and  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;          except
as set forth in Article V, neither the Company nor any other person is           under
any obligation to register the Securities under the Securities Act or any           state
securities laws or to comply with the terms and conditions of any           exemption
thereunder.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9
<U>Legends and Rescission</U>.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A.&nbsp;&nbsp;&nbsp;&nbsp;
          The Investor understands the certificates representing the Securities will bear
          a restrictive legend in substantially the following form (and a stop-transfer
          order may be placed against transfer of the certificates for such Securities): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED ANY STATE OF THE
UNITED STATES. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS,
OR UNLESS OFFERED, SOLD OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THOSE LAWS. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.&nbsp;&nbsp;&nbsp;&nbsp;
          ONE OR MORE STATES MAY REQUIRE AN INVESTOR BE PROVIDED WITH A STATUTORY RIGHT TO
          RESCISSION. IT IS THE DETERMINATION OF THE COMPANY TO ALSO VOLUNTARILY OFFER A
          RIGHT OF RESCISSION TO EACH INVESTOR. THEREFORE, ANY INVESTOR MAY WITHDRAW THE
          RELATED SUBSCRIPTION AGREEMENT AND RECEIVE A FULL REFUND OF ALL MONIES PAID,
          WITHIN THREE BUSINESS DAYS AFTER THE DATE CONSIDERATION FOR SUCH SECURITY IS
          DELIVERED TO THE ESCROW AGENT. ANY INVESTOR THAT PURCHASES SECURITIES IS
          ENTITLED TO EXERCISE THE FOREGOING RESCISSION RIGHT BY TELEGRAM OR LETTER NOTICE
          TO THE COMPANY AT: 6565 SPENCER STREET, SUITE 205, LAS VEGAS, NV 89119 AND TO
          THE ESCROW AGENT AT THE ADDRESS FOR THE ESCROW AGENT SET FORTH HEREIN. ANY
          TELEGRAM OR LETTER SHOULD BE SENT OR POSTMARKED PRIOR TO THE END OF THE THIRD
          BUSINESS DAY. A LETTER SHOULD BE MAILED BY CERTIFIED MAIL, RETURN RECEIPT
          REQUESTED, TO ENSURE ITS RECEIPT AND TO EVIDENCE THE TIME OF MAILING. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10
<U>Authorization; Enforcement</U>. This Agreement has been duly and validly authorized, executed
and delivered on behalf of the Investor and represents the valid and binding obligations
of the Investor enforceable in accordance with its terms.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11
<U>Residency</U>. The Investor is a resident of the jurisdiction set forth immediately below
such Investor&#146;s name on the signature pages hereto.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12
<U>Acknowledgements Regarding Fees and Expenses</U>. The Company has engaged the firm of May
Davis Group, NY, NY, to assist, on a best efforts basis, in the placement of the
Securities. The Company will pay, from the Offering proceeds, in its discretion and
without notice, fees and expenses relating to legal, escrow, related placement,
consulting, accounting and/or other Offering related matters, and such expenditures may
include cash payments equal to approximately 13% of the gross amount of the purchase of
Convertible Debentures. The Company shall also pay a total of 4 million shares of
restricted under SEC Rule 144 (in general, subject to a one year hold) Common Stock, pro
rata based upon $500,000 relative to proceeds actually received, which is in addition to
2 million shares already paid.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13
<U>Information</U>. The Investor hereby acknowledges receipt of this Agreement, including all
exhibits thereto, and any documents which may have been made available upon request as
reflected therein (collectively referred to as the &#147;Offering Materials&#148;) and
hereby represents that the Investor has been furnished by the Company during the course of
the Offering with all information regarding the Company, the terms and conditions of the
Offering and any additional information that the Investor has requested or desired to
know, and has been afforded the opportunity to ask questions of and receive answers from
duly authorized officers or other representatives of the Company concerning the Company
and the terms and conditions of the Offering. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14
<U>No Review</U>. The Investor hereby acknowledges that the Offering has not been reviewed by the
United States Securities and Exchange Commission (the &#147;SEC&#148;) nor any state
regulatory authority since the Offering is intended to be exempt from the registration
requirements of Section 5 of the Securities Act. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15
<U>Power</U>. The Investor represents that the Investor has full power and authority (corporate,
statutory and otherwise) to execute and deliver this Agreement and to purchase the
Securities. This Agreement constitutes the legal, valid and binding obligation of the
Investor, enforceable against the Investor in accordance with its terms. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16
<U>Authorization</U>. If the Investor is a corporation, partnership, limited liability company,
trust, employee benefit plan, individual retirement account, Keogh Plan, or other
tax-exempt entity, it is authorized and qualified to invest in the Company and the person
signing this Agreement on behalf of such entity has been duly authorized by such entity to
do so. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17
<U>NASD</U>. The Investor acknowledges that if he or she is a Registered Representative of an
NASD member firm, he or she must give such firm the notice required by the NASD&#146;s
Rules of Fair Practice, receipt of which must be acknowledged by such firm in the Investor
Questionnaire which is attached hereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18
<U>Anti-Money Laundering</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;          <U>In
General.</U> Investor acknowledges that due to anti-money laundering requirements
          operating in the United States, the Company and all affiliates and others,
          natural or otherwise, assisting as to the Offering (the &#147;Protected
          Persons&#148;) hereby rely upon the Investor&#146;s representation that the
          purchase price paid for the Securities is legal monies as to all applicable
laws           and regulations though the Company may require further identification of
the           Investor and the source of purchase funds before this Agreement can be
processed           and purchase monies accepted.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Protected Persons shall be held harmless and indemnified against any loss arising as a
result of a misrepresentation of the Investor in this or any other regard. Investor
represents that all purchase payments transferred to the Company pursuant to this
Agreement originated directly from a bank or brokerage account in the name of Investor. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Investor is subscribing on behalf of a Beneficial Owner, below, then Investor represents
that all purchase payments transferred to Investor with respect to such Beneficial Owner
originated directly from a bank or brokerage account in the name of such Beneficial Owner. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor
represents that acceptance by the Company of this Agreement, together with acceptance of
the appropriate remittance, will not breach any applicable rules and regulations designed
to avoid money laundering. Specifically, Investor represents and Conversion Debentures
that all information provided by Investor is genuine and all related information furnished
and to be furnished, upon request of the Company, is accurate. The Company may withdraw
the Offering or accept or reject any subscription at any time. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; <U>Beneficial
Ownership.</U> Investor represents that it is subscribing for Investor&#146;s own
account and own risk, and, unless Investor advises Company to the contrary in
writing prior to investment and identifies with specificity each beneficial
owner on whose behalf Investor is acting, Investor represents that it is not
acting as a nominee for any other person or entity. Investor also represents
that it does not have the intention or obligation to sell, distribute or
transfer the Securities, directly or indirectly, to any other person or entity
or to any nominee account. If the Investor is (A) acting as trustee, agent,
representative or disclosed nominee for another person or entity, or (B) an
entity (other than a publicly-traded company listed on an organized exchange
(or a subsidiary or a pension fund of such a company) based in a Financial
Action Task Force (&#147;FATF&#148;) Compliant Jurisdiction) investing on
behalf of underlying investors (including a Fund-of-Funds) (the persons,
entities and underlying investors referred to in (A) and (B) being referred to
collectively as the &#147;Beneficial Owners&#148;), Investor represents and
Conversion           Debentures that:  </FONT></P>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Investor understands and acknowledges the representations, warranties, and
               agreements made herein are made by Investor(A) with respect to Investor and (B)
               with respect to each of the Beneficial Owners; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Investor has all requisite power and authority from each of the Beneficial
               Owners to execute and perform the obligations under this Agreement; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Investor has adopted and implemented anti-money laundering policies, procedures
               and controls that comply with, and will continue to comply in all respects with,
               the requirements of applicable anti-money laundering laws and regulations; and </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Investor has established the identity of all Beneficial Owners, holds evidence
               of such identities and will make such information available to the Company upon
               request, and has procedures in place to ensure that the Beneficial Owners are
               not Prohibited Investors (as defined in (e) below). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Prohibited Investor</U>. Investor further represents that neither it or to the best
          of its knowledge and belief, the Beneficial Owners, nor any person controlling,
          controlled by, or under common control with it or the Beneficial Owners, nor any
          person having a beneficial or economic interest in it or the Beneficial Owners,
          is a Prohibited Investor (defined below) and Investor is not and will not
          purchase the Securities on behalf or for the benefit of any Prohibited Investor. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Suspension of Purchase Rights.</U> Investor acknowledges that if, following its
          purchase of Securities pursuant to this Agreement, the Company reasonably
          believes that Investor is a Prohibited Investor or has otherwise breached its
          representations and warranties, herein, the Company may retroactively terminate
          this purchase (if possible), by rejecting this Agreement (even after full
          execution) and not completing this transaction, freezing such Investor&#146;s
          funds forwarded by such Investor pursuant to this Agreement, and/or stopping the
          delivery of Securities in accordance with applicable regulations, and/or placing
          a &#147;stop order&#148; with the Transfer Agent or the Company, and/or
          retaining any payment from or for Investor as liquidated damages, and Investor
          shall have no claim against the Company or any Protected Persons for any form of
          damages or liabilities as a result of any of the aforementioned actions. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;          <U>Definitions.</U>  </FONT></P>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>FATF</U> means the Financial Action Task Force on Money Laundering. FATF-Compliant
               Jurisdiction is a jurisdiction that (A) is a member in good standing of FATF and
               (B) has undergone two rounds of FATF mutual evaluations. (The following
               jurisdictions, as determined by the FATF, may currently be considered to be
               compliant: Argentina; Australia; Austria; Belgium; Brazil; Canada; Denmark;
               European Commission; Finland; France; Germany; Greece; Gulf Cooperation Council;
               Hong Kong; Iceland; Ireland; Italy; Japan; Luxembourg; Mexico; Kingdom of The
               Netherlands; New Zealand; Norway; Portugal; Singapore; Spain; Sweden;
               Switzerland; Turkey; United Kingdom; and the United States of America. The list
               of FATF compliant jurisdictions is amended periodically. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Foreign Bank</U> means an organization that (A) is organized under the laws of a
               non-U.S. country; (B) engages in the business of banking; (C) is recognized as a
               bank by the bank supervisory or monetary authority of the country of its
               organization or principal banking operations; (D) receives deposits to a
               substantial extent in the regular course of its business; and (E) has the power
               to accept demand deposits, but does not include the U.S. branches or agencies of
               a non-U.S. bank. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Foreign Shell Bank</U> means a Foreign Bank without a Physical Presence in any
               country, but does not include a Regulated Affiliate. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Non-Cooperative Jurisdiction</U> means any non-U.S. country that has been designated
               as non-cooperative with international anti-money laundering principles or
               procedures by an intergovernmental group or organization, such as the FATF, of
               which the United States is a member and with which designation the United States
               representative to the group or organization continues to concur. (The current
               list of non-cooperative countries and territories, as determined by the FATF,
               is: Cook Islands; Egypt; Guatemala; Indonesia; Myanmar; Nauru; Nigeria;
               Philippines; St. Vincent and the Grenadines; and Ukraine. The list of
               Non-Cooperative Countries and Territories is amended periodically. For a current
               list of Non-Cooperative Countries and Territories, refer to the Financial Action
               Task Force website, http://www.oecd.org/fatf/NCCT_en.htm.) </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Physical Presence</U> means a place of business that is maintained by a Foreign Bank
               and is located at a fixed address, other than solely a post office box or an
               electronic address, in a country in which the Foreign Bank is authorized to
               conduct banking activities, at which location the Foreign Bank (i) employs one
               or more individuals on a full-time basis; (ii) maintains operating records
               related to its banking activities; and (iii) is subject to inspection by the
               banking authority that licensed the Foreign Bank to conduct banking activities. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Prohibited Investor</U> means (i) a terrorist, or a person or entity whose name
               appears on the List of Specially Designated Nationals and Blocked Persons
               maintained by the U.S. Office of Foreign Assets Control; (ii) a Foreign Shell
               Bank; or (iii) a person or entity resident in or organized or chartered under
               the laws of a Non-Cooperative Jurisdiction or whose purchase funds are
               transferred from or through a Foreign Shell Bank, a bank organized or chartered
               under the laws of a Non-Cooperative Jurisdiction or a Sanctioned Regime. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(vi) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Regulated Affiliate</U> means a Foreign Shell Bank that (i) is an affiliate of a
               depository institution, credit union, or Foreign Bank that maintains a Physical
               Presence in the United States or a non-U.S. country, as applicable; and (ii) is
               subject to supervision by a banking authority in the country regulating such
               affiliated depository institution, credit union, or Foreign Bank. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(vii)  </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Sanctioned
Regimes</U> means targeted foreign countries, terrorism sponsoring           organizations
and international narcotics traffickers in respect of which OFAC           administers
and enforces economic and trade sanctions based on U.S. foreign           policy and
national security goals. (OFAC has imposed sanctions upon Balkans,           Burma
(Myanmar), Cuba, Iran, Iraq, Liberia, Libya, North Korea, Sierra Leone,           Sudan,
and Zimbabwe.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;    All
representations made by Investor shall survive any Closing.  </FONT></P>

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<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ARTICLE III<BR>REPRESENTATIONS AND
CONVERSION DEBENTUREIES OF THE COMPANY</B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company represents and Conversion Debentures to the Investors that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1
<U>Organization and Qualification</U>. The Company, and each of its material subsidiaries, is
duly incorporated, validly existing and in good standing under the laws of the
jurisdiction in which they are incorporated, with full power and authority (corporate and
other) to own, lease, use and operate their properties and to carry on their businesses
as and where now owned, leased, used, operated and conducted. The Company, and its
material subsidiaries, is duly qualified to do business and is in good standing in every
jurisdiction in which the nature of the business conducted by them makes such
qualification necessary, except where the failure to be so qualified or in good standing
would not have a Material Adverse Effect.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2
<U>Authorization; Enforcement</U>. (a)&nbsp;The Company has all requisite corporate power and
authority to enter into and to perform its obligations under this Agreement, to
consummate the transactions contemplated hereby and thereby and to issue the Securities
in accordance with the terms hereof; (b)&nbsp;the execution, delivery and performance of
this Agreement by the Company and the consummation by it of the transactions contemplated
hereby (including without limitation the issuance of the Securities) have been duly
authorized by the Company&#146;s Board of Directors and no further consent or
authorization of the Company, its Board of Directors, or its shareholders is required; (c)&nbsp;this
Agreement has been duly executed by the Company; and (d)&nbsp; this Agreement constitutes
a legal, valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, subject to the effect of any applicable bankruptcy,
insolvency, reorganization, or moratorium or similar laws affecting the rights of
creditors generally and the application of general principles of equity.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3
<U>Issuance of Securities</U>. The Securities are duly authorized and, upon issuance in
accordance with the terms of this Agreement, will be validly issued, fully paid and
non-assessable, free from all taxes, liens, claims, encumbrances and charges with respect
to the issue thereof, will not be subject to preemptive rights or other similar rights of
stockholders of the Company, and will not impose personal liability on the holders
thereof.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4
<U>No Conflicts; No Violation</U>.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;    The
execution, delivery and performance of this Agreement by the Company and the
          consummation by the Company of the transactions contemplated hereby and thereby
          (including, without limitation, the issuance of the Securities) will not
          (i)&nbsp;conflict with or result in a violation of any provision of its
          Certificate of Incorporation or Bylaws or (ii)&nbsp;violate or conflict with,
or           result in a breach of any provision of, or constitute a default (or an event
          which with notice or lapse of time or both could become a default) under, or
          give to others any rights of termination, amendment (including without
          limitation, the triggering of any anti-dilution provision), acceleration or
          cancellation of, any agreement, indenture, patent, patent license, or
instrument           to which the Company is a party, or (iii)&nbsp;result in a violation
of any law,           rule, regulation, order, judgment or decree (including U.S. federal
and state           securities laws and regulations and regulations of any
self-regulatory           organizations to which the Company or its securities are
subject) applicable to           the Company or by which any property or asset of the
Company is bound or           affected (except for such conflicts, breaches, defaults,
terminations,           amendments, accelerations, cancellations and violations as would
not,           individually or in the aggregate, have a Material Adverse Effect).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;The
Company is not in violation of its Certificate of Incorporation, Bylaws or
          other organizational documents and the Company is not in default (and no event
          has occurred which with notice or lapse of time or both could put the Company
in           default) under any agreement, indenture or instrument to which the Company
is a           party or by which any property or assets of the Company is bound or
affected,           except for possible defaults as would not, individually or in the
aggregate,           have a Material Adverse Effect.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;   The
Company is not conducting its business in violation of any law, ordinance or
          regulation of any governmental entity, the failure to comply with which would,
          individually or in the aggregate, have a Material Adverse Effect.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;      Except
as specifically contemplated by this Agreement and as required under the
          Securities Act and any applicable state securities laws or any listing
agreement           with any securities exchange or automated quotation system, the
Company is not           required to obtain any consent, authorization or order of, or
make any filing or           registration with, any court or governmental agency or any
regulatory or self           regulatory agency in order for it to execute, deliver or
perform any of its           obligations under this Agreement in accordance with the
terms hereof, or to           issue and sell the Securities in accordance with the terms
hereof. All consents,           authorizations, orders, filings and registrations which
the Company is required           to obtain pursuant to the preceding sentence have been
obtained or effected on           or prior to the date hereof.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5
<U>SEC Documents, Financial Statements</U>. Since January 1, 2004, the Company has timely filed
all reports, schedules, forms, statements and other documents required to be filed by it
with the SEC pursuant to the reporting requirements of the Exchange Act (all of the
foregoing filed prior to the date hereof and all exhibits included therein and financial
statements and schedules thereto and documents (other than exhibits) incorporated by
reference therein, being hereinafter referred to herein as the &#147;SEC Documents&#148;).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has delivered to each
Investor, or each Investor has had access to, true and complete copies of the SEC
Documents, except for such exhibits and incorporated documents. As of their respective
dates, the SEC Documents complied in all material respects with the requirements of the
Exchange Act or the Securities Act, as the case may be, and the rules and regulations of
the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC
Documents, at the time they were filed with the SEC, contained 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. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of their respective dates, the
financial statements of the Company included in the SEC Documents complied as to form in
all material respects with applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto. Such financial statements have been prepared
in accordance with U.S. generally accepted accounting principles, consistently applied,
during the periods involved (except (i)&nbsp;as may be otherwise indicated in such
financial statements or the notes thereto, or (ii)&nbsp;in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed or summary
statements) and fairly present in all material respects the financial position of the
Company as of the dates thereof and the results of its operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit
adjustments). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6
<U>Absence of Litigation</U>. Except as disclosed in the SEC Documents or on Schedule 3.8, there
is no action, suit, claim, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending or, to the
knowledge of the Company, threatened against or affecting the Company or any of its
officers or directors acting as such that could, individually or in the aggregate, have a
Material Adverse Effect.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7
<U>Intellectual Property Rights</U>. The Company owns or possesses licenses or rights to use all
patents, patent applications, patent rights, inventions, know-how, trade secrets,
trademarks, trademark applications, service marks, service names, trade names and
copyrights necessary to enable it to conduct its business as now operated (the &#147;Intellectual
Property&#148;). Except as set forth in the SEC Documents, there are no material
outstanding options, licenses or agreements relating to the Intellectual Property, nor is
the Company bound by or a party to any material options, licenses or agreements relating
to the patents, patent applications, patent rights, inventions, know-how, trade secrets,
trademarks, trademark applications, service marks, service names, trade names or
copyrights of any other person or entity. Except as disclosed in the SEC Documents, there
is no claim or action or proceeding pending or, to the Company&#146;s knowledge,
threatened that challenges the right of the Company with respect to any Intellectual
Property.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8
<U>Tax Status</U>. The Company has timely made or filed all federal, state and foreign income
and all other tax returns, reports and declarations required by any jurisdiction to which
it is subject (unless and only to the extent that the Company has set aside on its books
provisions reasonably adequate for the payment of all unpaid and unreported taxes) and
has timely paid all taxes and other governmental assessments and charges that are
material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith, and has set aside on its books
provisions reasonably adequate for the payment of all taxes for periods subsequent to the
periods to which such returns, reports or declarations apply. To the knowledge of the
Company, there are no unpaid taxes in any material amount claimed to be due by the taxing
authority of any jurisdiction, and the officers of the Company know of no basis for any
such claim. The Company has not executed a waiver with respect to the statute of
limitations relating to the assessment or collection of any foreign, federal, state or
local tax. None of the Company&#146;s tax returns is presently being audited by any
taxing authority.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9
<U>Environmental Laws</U>. The Company (i)&nbsp;is in compliance with all applicable foreign
federal, state and local laws and regulations relating to the protection of human health
and safety, the environment or hazardous or toxic substances or wastes, pollutants or
contaminants (&#147;Environmental Laws&#148;), (ii)&nbsp;has received all permits,
licenses or other approvals required of them under applicable Environmental Laws to
conduct its business and (iii)&nbsp;is in compliance with all terms and conditions of any
such permit, license or approval where, in each of the three foregoing clauses, the
failure to so comply would have, individually or in the aggregate, a Material Adverse
Effect  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10
<U>No Bad Offerings</U>. Neither the Company, nor any of its affiliates, nor any person acting
on its or their behalf, will directly or indirectly make any offers or sales in any
security or solicit any offers to buy any security under circumstances that would be
deemed in violation of laws during the Offering.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11
<U>Employment Matters</U>. The Company is in compliance with all federal, state, local and
foreign laws and regulations respecting employment and employment practices, terms and
conditions of employment and wages and hours except where failure to be in compliance
would not have a Material Adverse Effect. The Company is not bound by or subject to (and
none of its assets or properties is bound by or subject to) any written or oral, express
or implied, contract, commitment or arrangement with any labor union, and no labor union
has requested or, to the Company&#146;s knowledge, has sought to represent any of the
employees, representatives or agents of the Company. There is no strike or other labor
dispute involving the Company pending, or to the Company&#146;s knowledge, threatened,
that could have a Material Adverse Effect nor is the Company aware of any labor
organization activity involving its employees. The Company is not aware that any officer
or key employee, or that any group of officers or key employees, intends to terminate
their employment with the Company, nor does the Company have a present intention to
terminate the employment of any of the foregoing.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12
<U>Investment Company Status</U>. The Company is not and upon consummation of the sale of the
Securities will not be an &#147;investment company,&#148; a company controlled by an
&#147;investment company&#148;or an &#147;affiliated person&#148; of, or &#147;promoter&#148; or
&#147;principal underwriter&#148; for, an &#147;investment company&#148; as such terms
are defined in the Investment Company Act of 1940, as amended.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13
<U>Subsidiaries</U>. Except as set forth in the SEC Documents, the Company does not presently
own or control, directly or indirectly, any interest in any other corporation,
association, joint venture, partnership or other business entity and the Company is not a
direct or indirect participant in any joint venture or partnership.  </FONT></P>

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<h1 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IV <BR>COVENANTS </FONT></h1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1
<U>Form D; Blue Sky Laws</U>. The Company may timely file a Notice of Sale of Securities on Form
D with respect to the Securities, as required by Form D. The Company may take such action
as it reasonably determines to be necessary to qualify the Securities for sale to the
Investors under this Agreement under applicable securities (or &#147;blue sky&#148;) laws
of the states of the United States (or to obtain an exemption from such qualification).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2
<U>Reporting Status</U>. During the Registration Period (as defined below), the Company will
timely file all reports, schedules, forms, statements and other documents required to be
filed by it with the SEC under the reporting requirements of the Exchange Act, and the
Company will not terminate its status as an issuer required to file reports under the
Exchange Act even if the Exchange Act or the rules and regulations thereunder would
permit such termination.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3
<U>Expenses</U>. The Company is liable for, and will pay, its own expenses incurred in
connection with the negotiation, preparation, execution and delivery of this Agreement,
including, without limitation, attorneys&#146; and consultants&#146; fees (144, 144(k)
opinions and etc..) and expenses.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4
Financial Information. The financial statements of the Company will be prepared in
accordance with United States generally accepted accounting principles, consistently
applied, and will fairly present in all material respects the consolidated financial
position of the Company and results of its operations and cash flows as of, and for the
periods covered by, such financial statements (subject, in the case of unaudited
statements, to normal year-end audit adjustments).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5
<U>Compliance with Law</U>. As long as an Investor owns any of the Securities, the Company will
conduct its business in compliance with all applicable laws, rules and regulations of the
jurisdictions in which it is conducting business, (including, without limitation, all
applicable local, state and federal environmental laws and regulations), the failure to
comply with which would have a Material Adverse Effect.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6
<U>Sales by Investor</U>. The Investor will sell any Securities sold by it in compliance with
applicable prospectus delivery requirements, if any, or otherwise in compliance with the
requirements for an exemption from registration under the Securities Act and the rules
and regulations promulgated thereunder. Investor will not make any sale, transfer or
other disposition of the Securities in violation of federal or state securities laws.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7
<U>Share Issuance</U>. At all times, the Company shall keep available Common Stock duly authorized
for issuance under the Convertible Debentures. If at any time, the Company does not have
available an amount of authorized and unissued Common Stock necessary to satisfy the full
exercise of the then outstanding Convertible Debentures, the Company shall call and hold a
special meeting within 30 days or as soon as practicable following such occurrence, for
the purpose of increasing the number of shares authorized. Management of the Company shall
recommend to shareholders, officers and directors to vote in favor of increasing the
number of common shares authorized. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8
<U>Litigation</U>. There is no pending litigation against the Company which is not
 otherwise  disclosed  in the  Company's  SEC Documents. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9
<U>Compliance with Securities Act</U>. The Investor understands and agrees that the Securities,
including the Common Stock, not been registered under the Securities Act or any
applicable state securities laws, by reason of their issuance in a transaction that does
not require registration under the Securities Act (based in part on the accuracy of the
representations and warranties of the Investor contained herein).  </FONT></P>

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<h1 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE V <BR>Certain Defined Terms
and REGISTRATION RIGHTS </FONT></h1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1
     As used in this Agreement, the following terms shall have the following meanings: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
          &#147;<U>Affiliate</U>&#148; shall mean, with respect to any Person (as defined below),
          any other Person controlling, controlled by or under direct or indirect common
          control with such Person (for the purposes of this definition
          &#147;control,&#148; when used with respect to any specified Person, shall mean
          the power to direct the management and policies of such person, directly or
          indirectly, whether through ownership of voting securities, by contract or
          otherwise; and the terms &#147;controlling&#148; and &#147;controlled&#148;
          shall have meanings correlative to the foregoing). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
          &#147;<U>Business Day</U>&#148; shall mean a day Monday through Friday on which banks
          are actually open for business in New York. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
          &#147;<U>Holders</U>&#148; shall mean the Investor(s) and any person holding
          Registrable Securities and the Common Stock underlying the Conversion
          Debentures, once the Common Stock is issued. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
          &#147;<U>Person</U>&#148; shall mean any person, individual, corporation, limited
          liability company, partnership, trust or other nongovernmental entity or any
          governmental agency, court, authority or other body (whether foreign, federal,
          state, local or otherwise). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;
          The terms &#147;<U>register</U>,&#148; &#147;<U>registered</U>&#148; and
          &#147;<U>registration</U>&#148; refer to the registration effected by preparing and
          filing a registration statement in compliance with the Act, and the declaration
          or ordering of the effectiveness of such registration statement. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;
          &#147;<U>Registrable Securities</U>&#148; shall mean, as to the Securities, (i) the
          Convertible Debentures under the Offering; (ii) the shares of Common Stock
          issuable upon conversion of the Convertible Debentures (the &#147;Conversion
          Shares&#148;); and (iii) any shares of Common Stock issued as to the Convertible
          Debentures (or issuable upon the conversion of any right, right or other
          security which is issued as a dividend or other distribution with respect to or
          in replacement of the Common Stock); provided, however, that securities shall
          only be treated as Registrable Securities if and only for so long as they (A)
          have not been disposed of pursuant to a registration statement declared
          effective by the SEC, (B) have not been sold or disposed of in a transaction
          exempt from the registration and prospectus delivery requirements of the Act so
          that all transfer restrictions and restrictive legends with respect thereto are
          removed upon the consummation of such sale or (C) are held by a Holder or a
          permitted transferee under this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2
The Company shall, within 60 calendar days from such date that is the date that at least
$500,000 is sold, to file a registration statement (&#147;Filing Date&#148;) on the
appropriate form (the &#147;Registration Statement&#148;) with the SEC and use its best
efforts to effect the registration, qualifications or compliances (including, without
limitation, the execution of any required undertaking to file post-effective amendments)
no later than 150 calendar days after the date that at least $500,000 is sold (such date
the Registration is deemed effective, is the Effective Date&#148;). In the event that less
than $500,000 is reached during this Offering, then: If, following the scheduled Closing
date and any extensions supplied herein, the Company fails to receive and accept $500,000
in subscriptions, then the Company shall be excused from filing any Registration Statement
and those persons who subscribed for less than $500,000 will have no registration rights. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3
All Registration Expenses incurred in connection with any registration, qualification,
exemption or compliance pursuant to Section 5 shall be borne by the Company. The Company
shall provide for all costs associated with Debenture conversions (legal opinion(s),
transfer agent fees &amp; etc.) All Selling Expenses relating to the sale of securities
registered by or on behalf of Holders shall be borne by such Holders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4
     At its expense the Company shall: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;         use
its best efforts to keep such registration, continuously effective until the
          Holders have completed the distribution described in the registration statement
          relating thereto but not later than the sooner of expiration of the Conversion
          Debenture term or exercise of the Conversion Debentures. The period of time
          during which the Company is required hereunder to keep the Registration
          Statement effective is referred to herein as &#147;the Registration
          Period.&#148; Notwithstanding the foregoing, at the Company&#146;s election,
the           Company may also cease to keep such registration, qualification, exemption
or           compliance effective with respect to any Registrable Securities, and the
          registration rights of a Holder shall expire, on the earlier of less than 20%
of           the Registrable Securities remaining not sold or disposed of to third
parties;  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;     advise
the Holders:  </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          when
the Registration Statement or any amendment thereto has been filed with the           SEC
and when the Registration Statement or any post-effective amendment thereto           has
become effective; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          of
the receipt of any request by the SEC for amendments or supplements to the
          Registration Statement or the prospectus included therein or for additional
          information; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          of
the issuance by the SEC of any stop order suspending the effectiveness of the
          Registration Statement or the initiation of any proceedings for such purpose;
</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          of
the receipt by the Company of any notification with respect to the suspension
          of the qualification of the Registrable Securities included therein for sale in
          any jurisdiction or the initiation or threatening of any proceeding for such
          purpose; and  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          of
the happening of any event that requires the making of any changes in the
          Registration Statement or the prospectus so that, as of such date, the
          statements therein are not misleading and do not omit to state a material fact
          required to be stated therein or necessary to make the statements therein (in
          the case of the prospectus, in the light of the circumstances under which they
          were made) not misleading;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;          make
every reasonable effort to obtain the withdrawal of any order suspending           the
effectiveness of any Registration Statement at the earliest possible time;  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;          furnish
to each Holder, upon the Effective Date, without charge, at least one           copy of
such Registration Statement and any post-effective amendment thereto,           including
financial statements and schedules, and, if the Holder so requests in           writing,
all exhibits (including those incorporated by reference) in the form           filed with
the SEC; and  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;          during
the Registration Period, deliver to each Holder, without charge, as           requested
in writing, a copy of the Registration Statement or any amendment or           supplement
thereto as such Holder may reasonably request.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5
(a) To the extent permitted by law, the Company shall indemnify each Holder, and each
person controlling such Holder within the meaning of Section 15 of the Act, with respect
to which any registration, qualification or compliance has been effected pursuant to this
Agreement, against claims, losses, damages and liabilities (or action in respect thereof),
including any of the foregoing incurred in settlement of any litigation, commenced arising
out of or based on any untrue statement (or alleged untrue statement) of a material fact
contained in any registration statement, prospectus or offering circular, or any amendment
or supplement thereof, of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;          Each
Holder will severally, if Registrable Securities held by such Holder are
          included in the securities as to which such registration, qualification or
          compliance is being effected, indemnify the Company, and each person who
          controls the Company within the meaning of Section 15 of the Act, and each
          Protected Person, against all claims, losses, damages and liabilities (or
          actions in respect thereof), including any of the foregoing incurred in
          settlement of any litigation, commenced or threatened, arising out of or based
          on any untrue statement (or alleged untrue statement) by any of the Holders.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;          Each
party entitled to indemnification under this Section (the &#147;Indemnified
          Party&#148;) shall give notice to the party required to provide indemnification
          (the &#147;Indemnifying Party&#148;) promptly after such Indemnified Party has
          actual knowledge of any claim as to which indemnity may be sought, and shall
          permit the Indemnifying Party to assume the defense of any such claim or any
          litigation resulting there from, provided that counsel for the Indemnifying
          Party, who shall conduct the defense of such claim or litigation, shall be
          approved by the Indemnified Party (whose approval shall not unreasonably be
          withheld), and the Indemnified Party may participate in such defense at such
          Indemnified Party&#146;s expense, and provided further that the failure of any
          Indemnified Party to give notice as provided herein shall not relieve the
          Indemnifying Party of its obligations under this Agreement, unless such failure
          is materially prejudicial to the Indemnifying Party in defending such claim or
          litigation. An Indemnifying Party shall not be liable for any settlement of an
          action or claim effected without its written consent (which consent will not be
          unreasonably withheld).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;          As
a condition to the inclusion of its Registrable Securities, each Holder shall
          furnish to the Company such information regarding such Holder and the
          distribution proposed by such Holder as the Company may request in writing or
as           shall be required in connection with any registration, qualification or
          compliance.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;          At
the end of the Registration Period the Holders shall discontinue sales of
          shares pursuant to such Registration Statement. From time to time, upon
request,           Holders shall notify the Company of the number of Securities which
remain unsold           immediately upon receipt of such request from the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6
With a view to making available to the Holders the benefits of certain rules and
regulations of the SEC which at any time permit the sale of the Registrable Securities to
the public without registration, the Company shall use its reasonable best efforts to: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;          make
and keep public information available, as those terms are understood and
          defined in Rule&nbsp;144 under the Act, at all times;  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;          file
with the SEC in a timely manner all reports and other documents required of           the
Company under  the Exchange Act. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7
With the written consent of the Company and the Holders holding at least a majority of the
Registrable Securities that are then outstanding, any provision of this Agreement may be
waived (either generally or in a particular instance, either retroactively or
prospectively and either for a specified period of time or indefinitely) or amended. Upon
the effectuation of each such waiver or amendment, the Company shall promptly give written
notice thereof to the Holders, if any, who have not previously received notice thereof or
consented thereto in writing. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8
  <U>Delay in Filing or Effectiveness of  Registration Statement</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;          The
Company shall use its best efforts to ensure that a registration statement           (the
&#147;Registration Statement&#148;) is filed on or before the Filing Date.           The
Registration Statement will include for resale by the Holders in accordance
          with the plan of distribution set forth therein the Common Stock underlying the
          Conversion Debentures following conversion (the &#147;Registrable
          Securities&#148;), but not the Convertible Debentures themselves.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>The
Company will use best efforts as stated above but will pay the Investors a cash payment of
2% of the unpaid face amount of their Convertible Debentures for every 30 days, or portion
thereof, beyond such date the Registration Statement is not declared effective for a
maximum of 24 months from the Closing of the Minimum Offering, which 2% is payable in cash
or free trading (no restriction) Common Stock of the Company (calculated based upon the
five day average of the closing trading price just before the date the payment accrues. If
and when due, the 2% payment will be made within 3 business days of when due. </U></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, any amount payable by the Company pursuant to this Section shall not be
payable to the extent any delay in responding to the SEC occurs because of an act of, or a
failure to act or to act timely by the Investor. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
parties acknowledge and agree that the liquidated damages provision set forth in this
section concerning the 2% represents the parties&#146; good faith effort to quantify such
damages on any delay of the registration and, as such, agree that the form and amount of
such liquidated damages are reasonable and will not constitute a penalty. The payment of
liquidated damages shall not relieve the Company from the need to use best efforts to
register the Securities as stated above. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;          Nothing
contained in this Agreement shall be deemed to establish or require the           payment
of interest to the Investor at a rate in excess of the maximum rate           permitted
by governing law.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;          The
Company shall bear registration expenses of the Registration Statement and           its
counsel shall prepare and file the Registration Statement. Each Holder will
          also provide the Company with information regarding &#147;Selling
          Securityholders&#148; and &#147;Plan of Distribution&#148; and other
information           required to be included about them, their stock and Conversion
Debenture           ownership, and otherwise that is necessary to be included in the
Registration           Statement.  </FONT></P>

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<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ARTICLE VI<BR>DEFINITIONS AND
ADDITIONAL OFFERING TERMS</B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;          Sometimes
herein, unless stated otherwise, capitalized terms have the following           means
below:  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1
     "Closing" means the closing of the purchase and sale of the Securities under this
Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2
     "Closing Date" has the meaning set forth above. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3
     "Common Stock" means the common stock  of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4
&#147;Company&#148;means SkyBridge Wireless, Inc.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5
     "Exchange Act" means the Securities Exchange Act of 1934, as amended. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6
      "Investors" means the investors whose names are set forth on the signature pages of
this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7
&#147;Material Adverse Effect&#148; means a material adverse effect on (a)&nbsp;the
business, operations, assets or financial condition of the Company or (b)&nbsp;the
ability of the Company to perform its obligations pursuant to the transactions
contemplated by this Agreement or under any instruments to be entered into or filed in
connection herewith.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8
     "Rule 144" means Rule 144 promulgated under the Securities Act, or any successor
rule. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9
     "SEC" means the United States Securities and Exchange Commission. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10
    "SEC Documents" is defined above. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11
    "Securities" means the Convertible Debentures and the Common Stock from any
conversion, unless specified to the contrary. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12
&#147;Securities Act&#148; means the Securities Act of 1933, as amended, and the rules
and regulations thereunder, or any similar successor statute.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;          The
Company may withdraw this Offering at any time prior to acceptance of
          subscriptions and receipt of funds directly from the Company and delivery of
the           Securities by the Company; all subscription proceeds are non-refundable,
          including proceeds from the exercise of any Conversion Debentures, except that
          if the Minimum is not received by the Escrow Agent in cleared funds by the
          deadline as stated above then proceeds will be returned as stated above.  </FONT></P>

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<h1 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VII <BR>GOVERNING LAW;
MISCELLANEOUS </FONT></h1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1
<U>Governing Law; Jurisdiction</U>. This Agreement will be governed by and interpreted in
accordance with the laws of the State of Nevada without regard to the principles of
conflict of laws. The parties hereto hereby submit to the exclusive jurisdiction of a
court in Nevada with respect to any dispute arising under this Agreement or the
transactions contemplated hereby or thereby.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2
<U>Counterparts; Signatures by Facsimile</U>. This Agreement may be executed in two or more
counterparts, all of which are considered one and the same agreement and will become
effective when counterparts have been signed by each party and delivered to the other
parties. This Agreement, once executed by a party, may be delivered to the other parties
hereto by facsimile transmission of a copy of this Agreement bearing the signature of the
party so delivering this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3
<U>Headings</U>. The headings of this Agreement are for convenience of reference only, are not
part of this Agreement and do not affect its interpretation.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4
<U>Severability</U>. If any provision of this Agreement is invalid or unenforceable under any
applicable statute or rule of law, then such provision will be deemed modified in order
to conform with such statute or rule of law. Any provision hereof that may prove invalid
or unenforceable under any law will not affect the validity or enforceability of any
other provision hereof.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5
<U>Entire Agreement; Amendments</U>. This Agreement (including all schedules and exhibits
hereto) constitutes the entire agreement among the parties hereto with respect to the
subject matter hereof and thereof. There are no restrictions, promises, or undertakings,
other than those set forth or referred to herein or therein. This Agreement supersedes
all prior agreements and understandings among the parties hereto with respect to the
subject matter hereof. No provision of this Agreement may be waived or amended other than
by an instrument in writing signed by the party to be charged with enforcement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6
<U>Notices</U>. Any notices required or permitted to be given under the terms of this Agreement
must be sent by certified or registered mail (return receipt requested) or delivered
personally or by courier (including a recognized overnight delivery service) and will be
effective five days after being placed in the mail, if mailed by regular U.S. mail, or
upon receipt, if delivered personally, or by courier (including a recognized overnight
delivery service), in each case addressed to a party. The addresses for such
communications are:  </FONT></P>








<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">If to the Company:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></TD>
     <TD WIDTH="65%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">CEO<BR>
SkyBridge Wireless, Inc.<BR>
6565 Spencer Street,<BR>
Suite 205, Las Vegas, NV 89119
</FONT></TD></TR>
</TABLE><BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
to an Investor: to the address set forth immediately below such Investor&#146;s name on
the signature pages hereto. Each party will provide written notice to the other parties
of any change in its address.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7
<U>Successors and Assigns</U>. This Agreement is binding upon and inures to the benefit
of the parties and their permitted successors and assigns. The Company will not assign
this Agreement or any rights or obligations hereunder without the prior written consent
of the Investors, and no Investor, or subsequent assignee, may assign this Agreement or
any rights or obligations hereunder without the prior written consent of the Company.
Notwithstanding the foregoing, an Investor (and subsequent assignee, permitted herein)
may assign all or part of its rights and obligations hereunder to any of its &#147;affiliates,&#148; as
that term is defined under the Securities Act, without the consent of the Company so long
as the affiliate is an accredited investor as defined in Section 2(a)(15) and Rule 215 of
the Securities Act and agrees in writing to be bound by this Agreement identifying who
the assignee is, and that the assignee is acting for no other party. No Securities can be
transferred or sold by the Investor or any assignee, permitted above, unless each
assignee is bound to this Agreement, with the exception of normal and customary market
sales of Common Stock, following the Registration Statement being declared effective,
which comply with law and which are not directed to any specific buyer or buyers.
Assignee includes Holders.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8
<U>Third Party Beneficiaries</U>. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other person.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9
<U>Further Assurances</U>. Each party will do and perform, or cause to be done and performed,
all such further acts and things, and will execute and deliver all other agreements,
certificates, instruments and documents, as another party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10
<U>No Strict Construction</U>. The language used in this Agreement is deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict construction
will be applied against any party.  </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE &#147;ACT&#148;). THE SECURITIES MAY NOT BE SOLD, TRANSFERRED
OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
SAID ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF
COUNSEL IN COMPARABLE TRANSACTIONS THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S UNDER SAID ACT OR SOLD IN ACCORDANCE WITH
THIS DOCUMENT AND LAW. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONVERTIBLE DEBENTURE </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>City: Las Vegas<BR>State: Nevada <BR>
Issue Date: August 17, 2004<BR>Principal Amount: $
25,000.00 (also known as Face Amount)<BR>Interest Rate: 8% Per Annum<BR>Holder: Carl
Hochner<BR>Holder Address:7090 Running Iron Ln, Pocatello, ID <BR>IPD: Interest Payment Date: Quarterly
from Issue Date, all unpaid by Maturity Date<BR> Maturity Date: 5:00 p.m. Eastern Standard
Time, 5 years from the Issue Date above </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR
VALUE RECEIVED, SKYBRIDGE WIRELESS, INC., a Nevada corporation (hereinafter, Skybridge
Wireless, Inc., or Company or the &#147;Borrower&#148;), hereby promises to pay to the
order of the above named Holder and registered assigns (the &#147;Holder&#148;) the
Principal Amount above, by the Maturity Date (the &#147;Maturity Date&#148;), and to pay
interest on the unpaid principal balance hereof at the Interest Rate above computed per
annum from the Issue Date (the &#147;Issue Date&#148;) until the same becomes due and
payable, whether at maturity or upon acceleration or by prepayment or conversion or
otherwise. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
amount of principal or interest on this Debenture which is not paid when due shall bear
interest at maximum rate per annum permitted under law (&#147;Default Interest&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
interest shall commence accruing on the Issue Date, shall be computed on the basis of a
365-day year and the actual number of days elapsed and shall be payable, whichever occurs
first, per the Interest Payment Date (defined as &#147;IPD&#148; above) or at the time of
conversion of the principal to which such interest relates in accordance with the section
titled Conversion Right below. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
payments due hereunder, to the extent not converted into common stock of the Borrower (the
&#147;Common Stock&#148;) in accordance with the terms hereof, shall be made in lawful
money of the United States of America or, at the option of the Holder, in whole or in
part, in shares of Common Stock of the Borrower valued at the then applicable Conversion
Price (as defined herein). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
payments shall be made to the address of the Holder above or at such later address as the
Holder shall hereafter give to the Borrower by written notice made in accordance with the
provisions of this Debenture. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever
any amount expressed to be due by the terms of this Debenture is due on any day which is
not a business day, the same shall instead be due on the next succeeding day which is a
business day and, in the case of any IPD which is not the date on which this Debenture is
paid in full, the extension of the due date thereof shall not be taken into account for
purposes of determining the amount of interest due on such date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used in this Debenture, the term &#147;business day&#148; shall mean any day other than a
Saturday, Sunday or a day on which commercial banks in the City of New York, New York are
authorized or required by law or executive order to remain closed. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
capitalized term used herein, and not otherwise defined, shall have the meaning ascribed
thereto in that certain Securities Purchase Agreement, between the Borrower and the
Holder, pursuant to which this Debenture was originally issued (the &#147;Purchase
Agreement&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Debenture is free from all taxes, liens, claims and encumbrances with respect to the issue
thereof and shall not be subject to preemptive rights or other similar rights of
stockholders of the Borrower and will not impose personal liability upon the holder
thereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following terms shall apply to this Debenture: </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I. CONVERSION
RIGHTS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1
<U>Conversion Right</U>. The Holder shall have the right from time to time, and at any time, to
convert all or any part of the unpaid (and not converted as provided herein) Principal
Amount and interest due under this Debenture into fully paid and non-assessable shares of
Common Stock, of the Borrower including into which such Common Stock shall hereafter be
changed or reclassified at the conversion price (the &#147;Conversion Price&#148;)
determined as provided herein (a &#147;Conversion&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
number of shares of Common Stock to be issued upon each conversion of this Debenture shall
be determined by dividing the Conversion Amount (as defined below) by the applicable
Conversion Price then in effect on the date specified in the notice of conversion, form of
which is attached (the &#147;Notice of Conversion&#148;), delivered to the Borrower by the
Holder in accordance with the below (the &#147;Conversion Date&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term &#147;Conversion Amount&#148; means, with respect to any conversion of this
Debenture, the sum of (1) the principal amount of this Debenture to be converted in such
conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the
interest rates provided in this Debenture to the Conversion Date plus (3) Default
Interest, if any. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conversion
is also subject to the terms and conditions of the Purchase Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
previously converted, this Debenture (all unpaid principal and interest) shall convert
into shares of Common Stock, as if a Notice of conversion was given, on the Maturity Date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2
     <U>Conversion Price</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;          <U>Calculation
of Conversion Price</U>. The Conversion Price shall be the lesser of (i)           the
Variable Conversion Price (as defined herein) and (ii) the Fixed Conversion
          Price (as defined herein) (subject, in each case, to equitable adjustments for
          stock splits, stock dividends or rights offerings by the Borrower relating to
          the Borrower&#146;s securities or the securities of any subsidiary of the
          Borrower, combinations, recapitalization, reclassifications, extraordinary
          distributions and similar events).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
&#147;Variable Conversion Price&#148; shall mean the Applicable Percentage (as defined
herein) multiplied by the >Market Price (as defined
herein). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Market
Price&#148; means the average of the lowest closing three (3) Bid Prices (as defined
below) for the Common Stock during the twenty (20) Trading Day period ending one Trading
Day prior to the date the Conversion Notice is sent by the Holder to the Borrower (the
&#147;Conversion Date&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Bid
Price&#148; means, for any security as of any date, the intraday bid price on the
Over-the-Counter Bulletin Board (the &#147;OTCBB&#148;) as reported by a reliable
reporting service mutually acceptable to and hereafter designated by Holders of a majority
in interest of the Debentures and the Borrower or, if the OTCBB is not the principal
trading market for such security, the intraday bid price of such security on the principal
securities exchange or trading market where such security is listed or traded or, if no
intraday bid price of such security is available in any of the foregoing manners, the
average of the intraday bid prices of any market makers for such security that are listed
in the &#147;pink sheets&#148; by the National Quotation Bureau, Inc. If the Bid Price
cannot be calculated for such security on such date in the manner provided above, the Bid
Price shall be the fair market value as mutually determined by the Borrower and the
Holders of a majority in interest of the Debentures being converted for which the
calculation of the Bid Price is required in order to determine the Conversion Price of
such Debentures. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Trading
Day&#148; shall mean any day on which the Common Stock is traded for any period on the
OTCBB, or on the principal securities exchange or other securities market on which the
Common Stock is then being traded. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Applicable
Percentage&#148; shall mean 75%; however, if conversion is into shares under Rule 144 or
Rule 144K, then 60% shall apply. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fixed
Conversion Price&#148; shall mean 120% of the closing Bid Price, quoted as provided above,
on the date of issuance of this Debenture. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3
<U>Authorized Shares</U>. The Borrower covenants that during the period the conversion right
exists, the Borrower (as to the Company) will reserve from its authorized and unissued
Common Stock a sufficient number of shares, free from preemptive rights, to provide for
the issuance of Common Stock upon the full conversion of this Debenture and the other
Debentures issued pursuant to the Purchase Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower is required at all times to have authorized and reserved two times the number of
shares that is actually issuable upon full conversion of the Debentures (based on the
Conversion Price of the Debentures in effect from time to time) (the &#147;Reserved
Amount&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower represents that upon issuance, such shares will be duly and validly issued, fully
paid and non-assessable. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue
certificates for the Common Stock issuable upon conversion of this Debenture, and
(ii)&nbsp;agrees that its issuance of this Debenture shall constitute full authority to
its officers and agents who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for shares of Common Stock in accordance with
the terms and conditions of this Debenture. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
at any time a Holder of this Debenture submits a Notice of Conversion, and the Borrower
does not have sufficient authorized but unissued shares of Common Stock available to
effect such conversion in accordance with the provisions of this Debenture (a
&#147;Conversion Default&#148;), the Borrower shall issue to the Holder all of the shares
of Common Stock which are then available to effect such conversion. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
portion of this Debenture which the Holder included in its Conversion Notice and which
exceeds the amount which is then convertible into available shares of shall remain due. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall use its best efforts to authorize a sufficient number of shares of Common
Stock as soon as practicable following the earlier of (i) such time that the Holder
notifies the Borrower or that the Borrower otherwise becomes aware that there are or
likely will be insufficient authorized and unissued shares to allow full conversion
thereof and (ii) a Conversion Default. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall send notice to the Holder of the authorization of additional shares of
Common Stock, the Authorization Date and the amount of Holder&#146;s accrued Conversion
Default Payments. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
accrued Conversion Default Payments for each calendar month shall be paid in cash or shall
be convertible into Common Stock (at such time as there are sufficient authorized shares
of Common Stock) at the applicable Conversion Price, at the Holder&#146;s option, as
follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;          In
the event Holder elects to take such payment in cash, cash payment shall be
          made to Holder by the fifth (5th) day of the month following the month in which
          it has accrued; and  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;          In
the event Holder elects to take such payment in Common Stock, the Holder may
          convert such payment amount into Common Stock at the Conversion Price (as in
          effect at the time of conversion) at any time after the fifth day of the month
          following the month in which it has accrued in accordance with the terms of
this           Article I (so long as there is then a sufficient number of authorized
shares of           Common Stock).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder&#146;s election shall be made in writing to the Borrower at any time prior to 5:00
p.m., Eastern Standard time, on the third day of the month following the month in which
Conversion Default payments have accrued. If no election is made, the Holder shall be
deemed to have elected to receive cash. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing
herein shall limit the Holder&#146;s right to pursue actual damages (to the extent in
excess of the Conversion Default Payments) for the Borrower&#146;s failure to maintain a
sufficient number of authorized shares of Common Stock, and each holder shall have the
right to pursue all remedies available at law or in equity (including degree of specific
performance and/or injunctive relief). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4
     <U>Method of Conversion</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;          Mechanics
of Conversion. This Debenture may be converted by the Holder in whole           or in
part at any time from time to time after the Issue Date, by           (A)&nbsp;submitting
to the Borrower a Notice of Conversion (by facsimile or           other reasonable means
of communication dispatched on the Conversion Date prior           to 5:00 p.m., Eastern
Standard time) and (B)&nbsp; surrendering this Debenture           at the principal
office of the Borrower.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;          Surrender
of Debenture Upon Conversion. Notwithstanding anything to the contrary           set
forth herein, upon conversion of this Debenture in accordance with the terms
          hereof, the Holder shall not be required to physically surrender this Debenture
          to the Borrower unless the entire unpaid principal amount of this Debenture is
          so converted.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder and the Borrower shall maintain records showing the Principal Amount so converted
and the dates of such conversions or shall use such other method, reasonably satisfactory
to the Holder and the Borrower, so as not to require physical surrender of this Debenture
upon each such conversion. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of any dispute or discrepancy, such records of the Borrower shall be controlling
and determinative in the absence of manifest error. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
 the foregoing,  if any portion of this Debenture is converted as aforesaid,  the Holder
may not transfer this Debenture unless the Holder first physically surrenders this
Debenture to the Borrower, whereupon the Borrower will forthwith issue and deliver upon
the order of the Holder a new Debenture of like tenor, registered as the Holder (upon
payment by the Holder of any applicable transfer taxes) may request, representing in the
aggregate the remaining unpaid principal amount of this Debenture.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder and any assignee, by acceptance of this Debenture, acknowledge and agree that, by
reason of the provisions of this paragraph, following conversion of a portion of this
Debenture, the unpaid and unconverted principal amount of this Debenture represented by
this Debenture may be less than the amount stated on the face hereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;          Payment
of Taxes.The Borrower shall not be required to pay any tax which may be           payable
in respect of any transfer involved in the issue and delivery of shares           of
Common Stock or other securities or property on conversion of this Debenture           in
a name other than that of the Holder (or in street name), and the Borrower
          shall not be required to issue or deliver any such shares or other securities
or           property unless and until the person or persons (other than the Holder or
the           custodian in whose street name such shares are to be held for the Holder&#146;s
          account) requesting the issuance thereof shall have paid to the Borrower the
          amount of any such tax or shall have established to the satisfaction of the
          Borrower that such tax has been paid.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;          Delivery
of Common Stock Upon Conversion. Upon receipt by the Borrower from the           Holder
of a facsimile transmission (or other reasonable means of communication)           of a
Notice of Conversion meeting the requirements for conversion as provided in
          this Section, the Borrower shall issue and deliver or cause to be issued and
          delivered to or upon the order of the Holder certificates for the Common Stock
          issuable upon such conversion within two (2) business days after such receipt
          (and, solely in the case of conversion of the entire unpaid principal amount
          hereof, surrender of this Debenture) (such second business day being
hereinafter           referred to as the &#147;Deadline&#148;) in accordance with the
terms hereof and           the Purchase Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;          Obligation
of Borrower to Deliver Common Stock. Upon receipt by the Borrower of           a Notice
of Conversion, the Holder shall be deemed to be the holder of record of           the
Common Stock issuable upon such conversion, the outstanding principal amount
          and the amount of accrued and unpaid interest on this Debenture shall be
reduced           to reflect such conversion, and, unless the Borrower defaults on its
obligations           under this Debenture, all rights with respect to the portion of
this Debenture           being so converted shall forthwith terminate except the right to
receive the           Common Stock or other securities, cash or other assets, as herein
provided, on           such conversion.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Holder shall have given a Notice of Conversion as provided herein, the Borrower&#146;s
obligation to issue and deliver the certificates for Common Stock shall be absolute and
unconditional, irrespective of the absence of any action by the Holder to enforce the
same, any waiver or consent with respect to any provision thereof, the recovery of any
judgment against any person or any action to enforce the same, any failure or delay in the
enforcement of any other obligation of the Borrower to the holder of record, or any
setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder of any obligation to the Borrower, and irrespective of any other
circumstance which might otherwise limit such obligation of the Borrower to the Holder in
connection with such conversion. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long
as the Notice of Conversion is received by the Borrower before 5:00 p.m., Eastern Standard
time, on such date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;          Delivery
of Common Stock by Electronic Transfer. In lieu of delivering physical
          certificates representing the Common Stock issuable upon conversion, provided
          the Borrower&#146;s transfer agent is participating in the Depository Trust
          Company (&#147;DTC&#148;) Fast Automated Securities Transfer (&#147;FAST&#148;)
          program, upon request of the Holder, the Borrower shall use its best efforts to
          cause its transfer agent to electronically transmit the Common Stock issuable
          upon conversion to the Holder by crediting the account of Holder&#146;s Prime
          Broker with DTC through its Deposit Withdrawal Agent Commission           (&#147;DWAC&#148;)
system.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5
<U>Concerning the Shares</U>. The shares of Common Stock issuable upon conversion of this
Debenture may not be sold or transferred unless (i) such shares are sold pursuant to an
effective registration statement under the Act or (ii) the Borrower or its transfer agent
shall have been furnished with an opinion of counsel (which opinion shall be in form,
substance and scope customary for opinions of counsel in comparable transactions) to the
effect that the shares to be sold or transferred may be sold or transferred pursuant to an
exemption from such registration or (iii)&nbsp;such shares are sold or transferred
pursuant to Rule 144 under the Act (or a successor rule) (&#147;Rule 144&#148;) or (iv)
such shares are transferred to an &#147;affiliate&#148; (as defined in Rule 144) of the
Borrower who agrees to sell or otherwise transfer the shares only in accordance with this
Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement).
Except as otherwise provided in the Purchase Agreement (and subject to the removal
provisions set forth below), until such time as the shares of Common Stock issuable upon
conversion of this Debenture have been registered under the Act as contemplated by the
Registration Rights Agreement or otherwise may be sold pursuant to Rule 144 without any
restriction as to the number of securities as of a particular date that can then be
immediately sold, each certificate for shares of Common Stock issuable upon conversion of
this Debenture that has not been so included in an effective registration statement or
that has not been sold pursuant to an effective registration statement or an exemption
that permits removal of the legend, shall bear a legend substantially in the following
form, as appropriate: </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN
OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN
COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT UNLESS SOLD
PURSUANT TO RULE 144 OR REGULATION S UNDER SAID ACT.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
legend set forth above shall be removed and the Borrower shall issue to the Holder a new
certificate therefore free of any transfer legend if (i) the Borrower or its transfer
agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or
transfer of such Common Stock may be made without registration under the Act and the
shares are so sold or transferred, (ii) such Holder provides the Borrower or its transfer
agent with reasonable assurances that the Common Stock issuable upon conversion of this
Debenture (to the extent such securities are deemed to have been acquired on the same
date) can be sold pursuant to Rule 144 or (iii) in the case of the Common Stock issuable
upon conversion of this Debenture, such security is registered for sale by the Holder
under an effective registration statement filed under the Act or otherwise may be sold
pursuant to Rule 144 without any restriction as to the number of securities as of a
particular date that can then be immediately sold. Nothing in this Debenture shall (i)
limit the Borrower&#146;s obligation under all agreements with the Holder or (ii) affect
in any way the Holder&#146;s obligations to comply with applicable prospectus delivery
requirements upon the resale of the securities referred to herein. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6
     <U>Effect of Certain Events</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;          <U>Effect
of Merger, Consolidation, Etc.</U> At the option of the Holder, the sale,
          conveyance or disposition of all or substantially all of the assets of the
          Borrower, the effectuation by the Borrower of a transaction or series of
related           transactions in which more than 50% of the voting power of the Borrower
is           disposed of, or the consolidation, merger or other business combination of
the           Borrower with or into any other Person (as defined below) or Persons when
the           Borrower is not the survivor shall either: (i) be deemed to be an Event of
          Default (as defined in Article III) pursuant to which the Borrower shall be
          required to pay to the Holder upon the consummation of and as a condition to
          such transaction an amount equal to the Default Amount (as defined in Article
          III) or (ii) be treated pursuant to Section 1.6(b) hereof. &#147;Person&#148;          shall
mean any individual, corporation, limited liability company, partnership,
          association, trust or other entity or organization.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;          <U>Adjustment
Due to Merger, Consolidation, Etc.</U> If, at any time when this           Debenture is
issued and outstanding and prior to conversion of all of the           Debentures, there
shall be any merger, consolidation, exchange of shares,           recapitalization,
reorganization, or other similar event, as a result of which           shares of Common
Stock of the Borrower shall be changed into the same or a           different number of
shares of another class or classes of stock or securities of           the Borrower or
another entity, or in case of any sale or conveyance of all or           substantially
all of the assets of the Borrower other than in connection with a           plan of
complete liquidation of the Borrower, then the Holder of this Debenture           shall
thereafter have the right to receive upon conversion of this Debenture,           upon
the basis and upon the terms and conditions specified herein and in lieu of           the
shares of Common Stock immediately theretofore issuable upon conversion,           such
stock, securities or assets which the Holder would have been entitled to
          receive in such transaction had this Debenture been converted in full
          immediately prior to such transaction (without regard to any limitations on
          conversion set forth herein), and in any such case appropriate provisions shall
          be made with respect to the rights and interests of the Holder of this
Debenture           to the end that the provisions hereof (including, without limitation,
provisions           for adjustment of the Conversion Price and of the number of shares
issuable upon           conversion of the Debenture) shall thereafter be applicable, as
nearly as may be           practicable in relation to any securities or assets thereafter
deliverable upon           the conversion hereof. The above provisions shall similarly
apply to successive           consolidations, mergers, sales, transfers or share
exchanges.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;          <U>Adjustment
Due to Distribution.</U> If the Borrower shall declare or make any           distribution of
its assets (or rights to acquire its assets) to holders of           Common Stock as a
dividend, stock repurchase, by way of return of capital or           otherwise (including
any dividend or distribution to the Borrower&#146;s           shareholders in cash or
shares (or rights to acquire shares) of capital stock of           a subsidiary (i.e., a
spin-off)) (a &#147;Distribution&#148;), then the Holder           of this Debenture
shall be entitled, upon any conversion of this Debenture after           the date of
record for determining shareholders entitled to such Distribution,           to receive
the amount of such assets which would have been payable to the Holder           with
respect to the shares of Common Stock issuable upon such conversion had           such
Holder been the holder of such shares of Common Stock on the record date           for
the determination of shareholders entitled to such Distribution.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7
<U>Trading Market Limitations</U>. Unless permitted by the applicable rules and regulations of
the principal securities market on which the Common Stock is then listed or traded, in no
event shall the Borrower issue upon conversion of or otherwise pursuant to this Debenture
and the other Debentures issued pursuant to the Purchase Agreement more than the maximum
number of shares of Common Stock that the Borrower can issue pursuant to any rule of the
principal United States securities market on which the Common Stock is then traded (the
&#147;Maximum Share Amount&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Once
the Maximum Share Amount has been issued (the date of which is hereinafter referred to as
the &#147;Maximum Conversion Date&#148;), if the Borrower fails to eliminate any
prohibitions under applicable law or the rules or regulations of any stock exchange,
interdealer quotation system or other self-regulatory organization with jurisdiction over
the Borrower or any of its securities on the Borrower&#146;s ability to issue shares of
Common Stock in excess of the Maximum Share Amount (a &#147;Trading Market Prepayment
Event&#148;), in lieu of any further right to convert this Debenture, and in full
satisfaction of the Borrower&#146;s obligations under this Debenture, the Borrower shall
pay to the Holder, within fifteen (15) business days of the Maximum Conversion Date (the
&#147;Trading Market Prepayment Date&#148;), an amount equal to 130% times the sum of (a)
the then outstanding principal amount of this Debenture immediately following the Maximum
Conversion Date, plus (b) accrued and unpaid interest on the unpaid principal amount of
this Debenture to the Trading Market Prepayment Date, plus (c) Default Interest, if any,
on the amounts referred to in clause (a) and/or (b) above, plus (d) any optional amounts
that may be added thereto at the Maximum Conversion Date by the Holder in accordance with
the terms hereof (the then outstanding principal amount of this Debenture immediately
following the Maximum Conversion Date, plus the amounts referred to in clauses (b), (c)
and (d) above shall collectively be referred to as the &#147;Remaining Convertible
Amount&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8
<U>Status as Stockholder</U>. Upon submission of a Notice of Conversion by a Holder, (i) the
shares covered thereby (other than the shares, if any, which cannot be issued because
their issuance would exceed such Holder&#146;s allocated portion of the Reserved Amount or
Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the
Holder&#146;s rights as a Holder of such converted portion of this Debenture shall cease
and terminate, excepting only the right to receive certificates for such shares of Common
Stock and to any remedies provided herein or otherwise available at law or in equity to
such Holder because of a failure by the Borrower to comply with the terms of this
Debenture. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE II. CERTAIN
COVENANTS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1
<U>Sale of Assets</U>. So long as the Borrower shall have any obligation under this Debenture,
the Borrower shall not, without the Holder&#146;s written consent, sell any significant
portion of its assets outside the ordinary course of business. Any consent to the
disposition of any assets may be conditioned on a specified use of the proceeds of
disposition. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE III. EVENTS OF
DEFAULT </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any of the following events of default (each, an &#147;Event of Default&#148;) shall
occur: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1
     <U>Failure to Pay Principal or Interest</U>.  The Borrower  fails to pay the principal
 hereof or interest  thereon when due on this Debenture, whether at maturity, upon
acceleration or otherwise; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2
<U>Conversion and the Shares</U>. The Borrower fails to issue shares of Common Stock to the
Holder (or announces or threatens that it will not honor its obligation to do so) upon
exercise by the Holder of the conversion rights of the Holder in accordance with the terms
of this Debenture; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3
<U>Breach of Covenants</U>. The Borrower breaches any material covenant or other material term or
condition contained in this Debenture, and such breach continues for a period of ten (10)
business days after written notice thereof to the Borrower from the Holder; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5
<U>Receiver or Trustee</U>. The Borrower or any subsidiary of the Borrower shall make an
assignment for the benefit of creditors, or apply for or consent to the appointment of a
receiver or trustee for it or for a substantial part of its property or business, or such
a receiver or trustee shall otherwise be appointed; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6
<U>Judgments</U>. Any money judgment, writ or similar process shall be entered or filed against
the Borrower or any subsidiary of the Borrower or any of its property or other assets for
more than $500,000, and shall remain unvacated, unbonded or unstayed for a period of
twenty (20) days unless otherwise consented to by the Holder, which consent will not be
unreasonably withheld; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7
<U>Bankruptcy</U>. Bankruptcy, insolvency, reorganization or liquidation proceedings or other
proceedings for relief under any bankruptcy law or any law for the relief of debtors shall
be instituted by or against the Borrower or any subsidiary of the Borrower; or </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8
<U>Delisting of Common Stock</U>. The Borrower shall fail to maintain the listing of the Common
Stock on at least one of the OTCBB, the NASDAQ National Market, the NASDAQ Small Cap
Market, the New York Stock Exchange, or the American Stock Exchange or the Pink Sheets for
a period of 10 business days; or then, upon the occurrence and during
the continuation of any Event of Default specified, at the option of the Holders of a
majority of the aggregate principal amount of the outstanding Debentures issued pursuant
to the Purchase Agreement exercisable through the delivery of written notice to the
Borrower by such Holders (the &#147;Default Notice&#148;), the Debentures shall become
immediately due and payable. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IV.
MISCELLANEOUS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1
<U>Failure or Indulgence Not Waiver</U>. No failure or delay on the part of the Holder in the
exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privileges. All rights and
remedies existing hereunder are cumulative to, and not exclusive of, any rights or
remedies otherwise available. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2
<U>Notices</U>. Any notice herein required or permitted to be given shall be in writing and may
be personally served or delivered by courier or sent by United States mail and shall be
deemed to have been given upon receipt if personally served (which shall include telephone
line facsimile transmission) or sent by courier or three (3) days after being deposited in
the United States mail, certified, with postage pre-paid and properly addressed, if sent
by mail. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3
<U>Amendments</U>. This Debenture and any provision hereof may only be amended by an instrument
in writing signed by the Borrower and the Holder. The term &#147;Debenture&#148; and all
reference thereto, as used throughout this instrument, shall mean this instrument (and the
other Debentures issued pursuant to the Purchase Agreement) as originally executed, or if
later amended or supplemented, then as so amended or supplemented. The Borrower shall have
the right to amend this Debenture for necessary correction and clarification. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4
<U>Assignability</U>. This Debenture shall be binding upon the Borrower and its successors and
assigns, and shall inure to be the benefit of the Holder and its successors and assigns.
Each transferee of this Debenture must be an &#147;accredited investor&#148; (as defined
in Rule 501(a) of the 1933 Act). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5
<U>Cost of Collection</U>. If default is made in the payment of this Debenture, the Borrower
shall pay the Holder hereof costs of collection, including reasonable attorneys&#146;
fees. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6
<U>Governing Law</U>. THIS DEBENTURE SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEVADA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS. THE
BORROWER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS
LOCATED IN NEVADA WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS DEBENTURE, THE AGREEMENTS
ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF
SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY
MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS
UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER
PARTY&#146;S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES
AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY
OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS
DEBENTURE SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS&#146; FEES,
INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7
<U>Certain Amounts</U>. Whenever pursuant to this Debenture the Borrower is required to pay an
amount in excess of the outstanding principal amount (or the portion thereof required to
be paid at that time) plus accrued and unpaid interest plus Default Interest on such
interest, the Borrower 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 Borrower 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 the price paid for such shares pursuant to this
Debenture. The Borrower and the Holder hereby agree that such amount of stipulated damages
is not plainly 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. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8
<U>Allocations of Maximum Share Amount and Reserved Amount</U>. The Maximum Share Amount and
Reserved Amount shall be allocated pro rata among the Holders of Debentures based on the
principal amount of such Debentures issued to each Holder. Each increase to the Maximum
Share Amount and Reserved Amount shall be allocated pro rata among the Holders of
Debentures based on the principal amount of such Debentures held by each Holder at the
time of the increase in the Maximum Share Amount or Reserved Amount. In the event a Holder
shall sell or otherwise transfer any of such Holder&#146;s Debentures, each transferee
shall be allocated a pro rata portion of such transferor&#146;s Maximum Share Amount and
Reserved Amount. Any portion of the Maximum Share Amount or Reserved Amount which remains
allocated to any person or entity which does not hold any Debentures shall be allocated to
the remaining Holders of Debentures, pro rata based on the principal amount of such
Debentures then held by such Holders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9
     <U>Purchase  Agreement</U>.  By its acceptance of this Debenture,  each Holder agrees to be
bound by the applicable terms of the Purchase Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10
<U>Notice of Corporate Events</U>. Except as otherwise provided below, the Holder of this
Debenture shall have no rights as a Holder of Common Stock unless and only to the extent
that it converts this Debenture into Common Stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, Borrower has caused this Debenture to be signed in its name by its duly
authorized officer , 2004. </FONT></P>














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<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">SKYBRIDGE WIRELESS, INC.<BR>
<BR>
<BR>
<BR>
By:      ______________________________<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James Wheeler   CEO
</FONT></TD></TR>
</TABLE>
<BR><BR><BR><BR>

<PAGE>





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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTICE OF CONVERSION <BR>(To be Executed by the
Registered Holder <BR>in order to Convert the
Debentures) </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby irrevocably elects to convert $________principal amount of the
Debenture (defined below) into shares of common stock (&#147;Common Stock&#148;), of
Skybridge Wireless, Inc., a Nevada corporation (the &#147;Borrower&#148;) according to the
conditions of the convertible debentures of the Borrower (the &#147;Debentures&#148;), as
of the date written below. If securities are to be issued in the name of a person other
than the undersigned, the undersigned will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates. No fee will be charged to the Holder
for any conversion, except for transfer taxes, if any. A copy of each Debenture is
attached hereto (or evidence of loss, theft or destruction thereof). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned represents and warrants that all offers and sales by the undersigned of the
securities issuable to the undersigned upon conversion of the Debentures shall be made
pursuant to registration of the securities under the Securities Act of 1933, as amended
(the &#147;Act&#148;), or pursuant to an exemption from registration under the Act. </FONT></P>













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     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="80%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date of Conversion:___________________________<BR>
Applicable Conversion Price:____________________<BR>
Number of Shares of Common Stock to be Issued Pursuant to<BR>
Conversion of the Debentures:__________________<BR>
Signature:___________________________________<BR>
Name:______________________________________<BR>
Address:____________________________________
</FONT></TD></TR>
</TABLE><BR>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Borrower shall issue and deliver
shares of Common Stock to an overnight courier not later than FIVE business days following
receipt of the original Debenture(s) to be converted, and shall make payments pursuant to
the Debentures for the number of business days such issuance and delivery is late. </FONT></P>



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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>_______________________________<BR>Name </FONT></P>




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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>_______________________________<BR>Signature </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:__________________________ </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned Investors and the Company have caused this Agreement to be duly executed as of
the date first above written. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURE PAGE </FONT></H1>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SKYBRIDGE WIRELESS,
INC.  <BR>SECURITIES PURCHASE
AGREEMENT </FONT></h1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby executes and delivers, as a subscription to the Company, the Securities
Purchase Agreement to which this signature page is attached, which, together with all
counterparts of the Agreement and signature pages of the other parties named in said
Agreement, shall constitute one and the same document in accordance with the terms of the
Agreement. </FONT></P>







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<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sign Name: ______________________________<BR>
<BR>
<BR>
Print Name (and title if applicable): ______________________________<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date: &nbsp;&nbsp;&nbsp;&nbsp;        ______________________________<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Address: ______________________________<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telephone: ______________________________<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Facsimile: ______________________________<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dollar Amount:  ____________________________<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</FONT></TD></TR>
</TABLE><BR><BR>




        <BR><BR><BR><BR>





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<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="50%" align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Acceptance: (form)<BR>
<BR>
SkyBridge Wireless, Inc., hereby accepts the<BR>
foregoing subscription and joins into the Agreement as<BR>
to the named Investor.<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
___________________<BR>
By: James Wheeler CEO<BR>
<BR>
Date:______________________
</FONT></TD></TR>
</TABLE><BR>




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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Investor Questionnaire</B> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.&nbsp;&nbsp;&nbsp;&nbsp;
          The Investor represents and Conversion Debentures that he, she or it comes
          within one category marked below, and that for any category marked, he, she or
          it has truthfully set forth, where applicable, the factual basis or reason the
          Investor comes within that category. The undersigned agrees to furnish any
          additional information which the Company deems necessary in order to verify the
          answers set forth below. </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Category A____ </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 The undersigned is an individual (not a partnership, corporation, etc.) whose individual
net worth, or joint net worth with his or her spouse, presently exceeds $1,000,000. </FONT></TD>
</TR>
</TABLE>
<BR>

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     <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Explanation.
           In calculating net worth you may include equity in personal property and real
          estate, including your principal residence, cash, short-term investments, stock
          and securities. Equity in personal property and real estate should be based on
          the fair market value of such property less debt secured by such property. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Category B____ </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 The undersigned is an individual (not a partnership, corporation, etc.) who had an
income in excess of $200,000 in each of the two most recent years, or joint income with
his or her spouse in excess of $300,000 in each of those years (in each case including
foreign income, tax exempt income and full amount of capital gains and losses but
excluding any income of other family members and any unrealized capital appreciation) and
has a reasonable expectation of reaching the same income level in the current year. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Category C____</FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The undersigned is a director or executive officer of the Company which is issuing and
selling the Securities. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Category D____</FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The undersigned is a bank; a savings and loan association; insurance company; registered
investment company; registered business development company; licensed small business
investment company (&#147;SBIC&#148;); or employee benefit plan within the meaning of
Title 1 of ERISA and (a) the investment decision is made by a plan fiduciary which is
either a bank, savings and loan association, insurance company or registered investment
advisor, or (b) the plan has total assets in excess of $5,000,000 or (c) is a self
directed plan with investment decisions made solely by persons that are accredited
investors. (describe entity) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Category E____ </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                The  undersigned  is a private  business  development  company  as
 defined  in  section  202(a)(22)  of the                            Investment Advisors
Act of 1940. (describe entity) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Category F____</FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The undersigned is either a corporation, partnership, Massachusetts business trust, or
non-profit organization within the meaning of Section 501(c)(3) of the Internal Revenue
Code, in each case not formed for the specific purpose of acquiring the Securities and
with total assets in excess of $5,000,000.(describe entity) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Category G____</FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The undersigned is a trust with total assets in excess of $5,000,000, not formed for the
specific purpose of acquiring the Securities, where the purchase is directed by a
&#147;sophisticated investor&#148; as defined in Regulation 506(b)(2)(ii) under the
Securities Act. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Category H____</FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The undersigned is an entity (other than a trust) all of the equity owners of which are
&#147;accredited investors&#148; within one or more of the above categories. If relying
upon this Category H alone, each equity owner must complete a separate copy of this
Agreement. (describe entity) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Category I____</FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The undersigned is not within any of the categories above and is therefore not an
accredited investor but is a sophisticated investor understanding all risks as to this
transaction. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned agrees that the
undersigned will notify the Company at any time on or prior to the Closing Date in the
event that the representations made by the undersigned in this Agreement shall cease to be
true, accurate and complete. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;          <U>SUITABILITY</U>
(please answer each question)  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          For an individual Investor, please describe your current employment, including
          the company by which you are employed and its principal business: </FONT></P>

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     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black noshade>
<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black NOSHADE>
<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black NOSHADE>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          For an individual Investor, please describe any college or graduate degrees held
          by you: </FONT></P>






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     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black NOSHADE>
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     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black NOSHADE>
<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black NOSHADE>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          For all Investors, please state whether you have participated in other private
          placements before: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>YES_______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                        NO_______ </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;
          If your answer to question (c) above was No, then explain your investment
          knowledge or experience: </FONT></P>

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     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;          <U>MANNER
IN WHICH TITLE IS TO BE HELD.</U> (circle one)  </FONT></P>














<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="90%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(a)    Individual Ownership<BR>
(b)    Community Property<BR>
(c)    Joint Tenant with Right of<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Survivorship<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(both parties must sign)<BR>
(d)    Partnership*<BR>
(e)    Tenants in Common<BR>
(f)    Company*<BR>
(g)    Trust*<BR>
(h)    Other
</FONT></TD></TR>
</TABLE><BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*If
Securities are being subscribed for by an entity, the attached Certificate of Signatory
must also be completed. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please be sure the name(s) on the
Signature Page correspond. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;          <U>NASD
AFFILIATION</U>.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Are you affiliated or associated with
an NASD member firm (please check one): </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes _________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             No __________ </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If Yes, please describe: </FONT></P>

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     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black NOSHADE>
<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black NOSHADE>
<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black NOSHADE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If Investor is a Registered
Representative with an NASD member firm, have the following acknowledgment signed by the
appropriate party: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned NASD member firm
acknowledges receipt of the notice required by Article 3, Sections 28(a) and (b) of the
Rules of Fair Practice. </FONT></P>




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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>_________________________________<BR>Name of NASD Member Firm </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:
______________________________<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized Officer</FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:
____________________________ </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The undersigned is informed of the significance to the Company of the foregoing
          representations and answers contained in the Confidential Investor Questionnaire
          and such answers have been provided under the assumption that the Company will
          rely on them. </FONT></P>













<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">

<TR VALIGN="TOP">
     <TD WIDTH="50%" align=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sign Name:<BR>
<BR>
Print Name (and title if applicable):<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:
</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">______________________________<BR>
<BR>
______________________________<BR>
<BR>
______________________________
</FONT></TD></TR>
</TABLE>


<BR><BR><BR><BR><BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ESCROW AGENT </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INCLUDING PAYMENT
INFORMATION </FONT></P>


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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wire
Transfers: (when sending wire, please fax notice of doing so and details corresponding to
name on subscription to fax number: </FONT>
</TD>
</TR>
</TABLE>
<BR>


















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<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="80%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">US Bank<BR>
<BR>
Routing<BR>
<BR>
Account Name<BR>
<BR>
Account #<BR>
<BR>
<BR>
<BR>
CHECKS:
</FONT></TD></TR>
</TABLE>
<BR>








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