This Loan Agreement (this "Agreement"), dated as of October 13, 2001, is entered into between George Colin
("Lender"), and EXTEN INDUSTRIES, INC. ("Borrower") as of the date first set forth above. The above
information is subject to all of the terms and conditions of this Agreement. The parties agree as follows:
1. Loan and Payments. The Lender is making loans (collectively, the "Loan") to Borrower in the amount of Fifty
Thousand ($50,000) Dollars. The Loan may be prepaid at any time without penalty.
(a) Interest. Borrower shall pay interest on the Loan and other monetary Obligations at a fixed rate equal to
twelve percent (12 %) per annum. Interest shall be calculated on the basis of a 360-day year for the actual
number of days elapsed. Interest shall be payable monthly within seven
(7) business days of the last day of the previous month.
(b). Voluntary Conversion. Each Lender may convert the pro rata portion of the outstanding principal balance of
the Loan, together with all accrued but unpaid interest, owing to such Lender, and no less than such amount, into
Borrower's Common Stock, at the option of such Lender, on the terms and conditions set forth herein. The stock
will be delivered within ten (10) business days of the conversion date and the shares will have no restrictions
relative to their sale and disposition.
(e) Penalties. Should any interest payment be late, certain penalties shall become effective. The conversion price
of the shares of common stock shall decline by $.01 for each week, or fraction thereof, that interest payment is
If Lender elects to exercise his right to convert then such Lender must give written notice of his intention to
convert not less than ten
(10) business days prior to the date of such intended conversion. Lender must concurrently execute a standard
form of Stock Purchase Agreement and other agreements as are necessary to document the issuance of the
Common Stock. The Borrower shall issue and deliver to