Promissory Note Between Tango, Inc., Pacific Print Works, LLC, and Springfield Investment Company ($600,000)

 PROMISSORY NOTE $600,000.00 May 26, 2003 FOR VALUE RECEIVED, Tango, Incorporated, a Florida corporation, and Pacific Print Works, an Oregon L.L.C., ("Debtors") promise to pay to the order of Springfield Investment Company, at 2870 South State Street, Salt Lake City, UT 84115 ("Payee"), or at such other place as Payee shall have designated to Debtors in writing, the principal sum of Six Hundred Thousand ($600,000), hereof until paid in full. Sums due under this Note shall be payable as follows: a. The Buyer will pay the Seller fifty thousand and no/100 dollars $50,000.00) together with accrued interest on or before September 15th 2003; and b. The Buyer will pay the Seller Fifty thousand and no/100 dollars ($50,000.00) together with accrued interest on or before October 15th 2003; and c. The Buyer will repay the Seller fifty thousand and no/100 dollars ($50,000) together with accrued interest on or before November 15th 2003; and d. The Buyer will repay the Seller Fifty thousand and no/100 dollar ($50,000.00) together with accrued interest on or before December 15th 2003; and e. The Buyer will pay the Seller fifty thousand and no/100 dollars ($50,000.00) together with accrued interest on or before January 15th 2004; and f. The Buyer will pay the Seller Fifty thousand and no/100 dollars ($50,000.00) together with accrued interest on or before February 15th 2004; and g. The Buyer will repay the Seller fifty thousand and no/100 dollars ($50,000) together with accrued interest on or before March 15th 2004; and h. The Buyer will repay the Seller Fifty thousand and no/100 dollar ($50,000.00) together with accrued interest on or before April 15th 2004; and i. The Buyer will pay the Seller fifty thousand and no/100 dollars ($50,000.00) together with accrued interest on or before May 15th 2004; and j. The Buyer will pay the Seller Fifty thousand and no/100 dollars ($50,000.00) together with accrued interest on or before June 15th 2004; and k. The Buyer will repay the Seller fifty thousand and no/100 dollars ($50,000) together with accrued interest on or before July 15th 2004; and l. The Buyer will repay the Seller Fifty thousand and no/100 dollar ($50,000.00) together with accrued interest on or before August 15th 2004; and Debtors will pay an additional Twenty Dollars ($20) per day for each day any payment is delinquent. In addition to the late payment penalty, Payee may hire or pay someone else to help collect this Note if Debtor does not pay which sums Debtor will reimburse to Payee. Such reimbursable sums include, subject to any limits under applicable law, Payee's reasonable attorney's fees and legal expenses whether or not there is a lawsuit, including reasonable attorney's fees and legal expenses for bankruptcy proceedings, (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Payee may also take any other actions allowed by law or under this Note and the other agreements relating to the indebtedness. All payments received under this Note shall be made in the form of lawful money of the United States of America. This Note may be prepaid by Debtors, in whole or in part, without premium or penalty. All prepayments shall first be applied to accrued interest and then to the unpaid principal balance hereof. Debtors will be in default if any of the following happens: (a) Debtors fail to make any payment when due; provided however, Debtors will not be excused from making the Twenty Dollars ($20.00) per day penalty payment if any of the payments are not received on or before the dates set forth herein; (b) Debtors break any written promise Debtors have made to Payee, or Debtors fails to perform promptly at the time and strictly in the manner provided in this Note or any agreement related to this Note, or in any other agreement or loan Debtors has with Payee, (c) any representation or statement made or furnished to Payee by Debtors or on Debtor's behalf is false or misleading in any material respect; (d) Either Debtor becomes insolvent, a receiver is appointed for any part of either Debtor's property, either Debtor makes an assignment for the benefit of creditors, or any proceeding is commenced either by Debtors or against either Debtor under any bankruptcy or insolvency laws; (e) any creditor tries to take any of either Debtor's property on or in which Payee has a lien or security interest. Upon default, Payee shall have all remedies available to it at law or in equity. If Payee retains an attorney for collection of this Note, or if any suit or proceeding is brought for the recovery or protection of all or any part of the indebtedness evidenced by this Note, then Debtors agrees to pay on demand all costs and expenses of the suit or proceeding, or any appeal thereof, incurred by Payee, including, without limitation, reasonable attorney's fees. This Note shall be governed by and construed pursuant to the laws of the 10th District Court of United States of America Federal Court System (excluding conflicts of law provisions). Debtors agree that the courts of the 10th District Court of United States of America Federal Court System shall have exclusive jurisdiction over any disputes relating to this Note. Debtors consents to venue in the courts of the 9th District Court of United States of America Federal Court System. This note is secured by all of the equipment and personal property set forth in the schedule marked Exhibit One and by this reference is attached hereto and made a part hereof. TANGO INCORPORATED PACIFIC PRINT WORKS L.L.C. _______________________________ _______________________________ Sameer Hirji, President Thomas E Stamos, President of Springfield Investment Company, the Managing Partner of PPW LLC Attest:_____________________________ Attest:_______________________ Todd Violette, Secretary/Treasurer Randy Jorgensen, Secretary/Treasurer  EXHIBIT 1 Pacific Print Works Equipment List, Excluding Leased Equipment As of July 31, 2001 Life Net Book Remaining 3/31/2002 7/31/2002 FMV Date Original Value at YRS From Acquisition Monthly Net Book Net Book Acquired Description Cost 3/31/1998 Yrs Acq MOS Cost Deprec. Value Value 10/31/2002 7/31/1993 Precision Gas Dryer 6,000.00 $34,000.00 $11,333.54 7 2.33 84 $11,333.54 $404.75 0.00 $5,000.00 7/31/1993 Exposer Unit 200.00 $1,000.00 $333.32 7 2.33 84 $333.32 $11.90 0.00 $200.00 7/31/1993 Well Mount Vaccum Frames $500.00 $167.16 7 2.33 84 $167.16 $5.95 0.00 $100.00 7/31/1993 Mfg Equip - Set up costs $1,500.00 $4,821.75 7 2.33 84 $4,821.75 $178.57 0.00 9/20/1933 Toledo Digital Scale $1,108.00 $382.12 7 2.47 84 $382.12 $13.19 0.00 $250.00 9/1/1997 Toledo Digital Scale $0.00 $0.00 0.00 $250.00 12/16/1993 Racks 500.00 $5,071.00 $1,962.40 7 2.71 84 $1,962.40 $60.37 0.00 $1,000.00 8/30/1994 Pressure washing equipment 300.00 $2,265.00 $1,078.51 7 3.42 84 $1,078.51 $26.96 0.00 $400.00 11/22/1994 M&R Turnabout Ink Mixer 300.00 $973.75 $498.71 7 3.65 84 $498.71 $11.59 0.00 $200.00 1/3/1995 60 Gallon Storage Cabinet $616.50 $330.25 7 3.75 84 $330.25 $7.36 0.00 $150.00 3/27/1995 Racking $340.00 $190.17 7 3.99 84 $190.17 $4.05 0.00 $70.00 5/4/1995 Warehouse Shelving $260.00 $151.54 7 4.09 84 $151.54 $3.10 3.25 0.00 $50.00 5/22/1995 Folding Matching 1,000.00 $400.00 $2,365.50 7 4.14 84 $2,365.53 $47.62 80.62 0.00 $5,000.00 6/29/1995 Compressor 1,500.00 $5,390.00 $3,270.27 7 4.25 84 $3,270.27 $64.17 189.50 0.00 $1,080.00 7/5/1995 Shelving/Racking $399.94 $0.00 7 SEC 179 $0.00 $0.00 0.00 0.00 $70.00 8/18/1995 SqueegeesFlood Bars/Plat $4,154.40 $2,506.74 7 4.38 84 $2,506.74 $41.20 212.47 0.00 $830.00 11/16/1995 Stretching Table w"J" Bar 100.00 $1,300.00 $0.00 7 SEC 179 $0.00 $0.00 0.00 0.00 $260.00 12/29/1995 Black Gum Blanket Screen $822.82 $0.00 7 SEC 179 $0.00 $0.00 0.00 0.00 $165.00 2/1/1996 Electric Tagging Gum 50.00 $395.00 $272.80 7 4.84 84 $272.80 $4.70 47.32 28.52 $80.00 2/20/1996 Number Printer - Haroo 400.00 $4,400.00 $3,072.40 7 4.89 84 $3,072.40 $52.38 559.83 350.31 $2,000.00 4/4/1996 Yale Pallete Jack 150.00 $480.00 $342.96 7 5.01 84 $342.96 $3.71 69.19 46.35 $200.00 5/9/1996 Black Flash 18x18 w/stand 100.00 $500.00 $364.73 7 5.11 84 $364.73 $5.95 79.15 55.35 $500.00 5/10/1996 Racking - Upright/Loudbeams $3,694.00 $28,920.00 7 5.11 84 $2,695.20 $43.98 585.60 409.68 $740.00 5/24/1996 Well Mount Eye Wash $120.97 $80.89 7 5.15 84 $88.89 $31.44 19.83 14.07 $24.00 5/30/1996 Anlec Legeod 12 Color Print 3,500.00 $22,864.17 $16,868.43 7 5.17 84 $16,858.43 $272.19 3802.69 2,713.93 $10,000.00 6/24/1996 Black Flash 16x16 w/stand 100.00 $420.00 $313.21 7 5.23 84 $313.21 $5.00 71.71 53.71 $500.00 7/1/1996 Eye wash Fountain $314.06 $235.52 7 5.25 84 $5,235.52 $5.74 56.16 41.20 $63.00 7/8/1996 18x20 Palletes With Breches $711.00 $333.34 7 5.27 84 $533.34 $8.46 128.39 94.55 7/17/1996 Screen & Ink Cart 50.00 $400.00 $302.65 7 5.30 84 $302.65 $4.76 74.15 55.11 $200.00 8/15/1996 Antec Legend 6 Color Prints 1,500.00 $6,795.00 $5,216.34 7 5.38 84 $5,216.34 $80.89 1335.44 1,011.88 $2,500.00 8/16/1996 Hydrolyie 5258 Sink w/Stand $1,405.00 $1,078.50 7 5.38 84 $1,078.50 $16.73 276.35 209.43 $280.00 8/16/1996 Turbo Vaccum ST-25(Screens) $449.00 $344.76 7 5.38 84 $344.76 $5.35 88.31 66.91 $82.00 8/23/1996 Job Carts(14) 1,000.00 $6,160.00 $4,747.80 7 5.40 84 $4,747.81 $73.33 1229.78 936.46 $2,800.00 9/17/1996 Job Carts(4) 500.00 $4,400.00 $3,434.46 7 5.47 84 $3,414.46 $52.38 928.48 711.96 $800.00 9/18/1996 Flash Dryer w/Stand (2) 100.00 $1,405.00 $1,097.16 7 5.47 84 $1,097.16 $16.73 294.71 227.79 Flash Dryer w/Stand (1) 100.00 $0.00 $0.00 $0.00 10/3/1996 Exposure Unit - Screenmake 2,000.00 $6,900.00 $5,429.43 7 5.51 84 $5,429.43 $82.14 1488.43 1,159.87 $4,000.00 10/3/1996 Ray Paul Cyclone Dryer 6,000.00 $26,400.00 $20,773.20 7 5.51 84 $20,373.20 $314.29 5694.54 4,437.38 $15,000.00 10/23/1996 Job Carts (4) $4,400.00 $3,496.02 7 5.57 84 $3,496.02 $52.38 983.25 773.73 $800.00 1/22/1997 3 Roll Bagger - Finishing $396.00 $328.71 7 5.82 84 $328.71 $4.71 102.62 83.78 $80.00 2/12/1997 Diamond Maxitronic Squeegee 1,000.00 $4,075.00 $3,416.69 7 5.87 84 $3,416.69 $48.51 1089.33 895.29 $815.00 2/17/1997 15HP Kaeser Compressor 1,000.00 $5,000.00 $4,202.81 7 5.89 84 $4,202.81 $59.52 1346.77 1,108.69 $2,000.00 3/21/1997 Antec 8 Color, 8 Station Printer 2,500.00 $8,129.00 $6,846.77 7 5.90 84 $6,846.37 $96.37 2202.83 1,815.75 $3,000.00 2/24/1997 Blue PalletJack 50.00 $200.00 $168.70 7 5.91 84 $168.30 $52.38 54.45 44.93 $200.00 2/27/1997 22"x22" Custom Hold Down $675.00 $370.19 7 5.91 84 $570.19 $58.04 188.48 152.32 $165.00 3/25/1997 Hooping Pallets (9) $287.00 $245.30 7 5.99 84 $245.30 $3.42 88.31 67.63 3/28/1997 M&R Turnabout Mixer Vase 300.00 $1,185.96 $1,015.14 7 5.99 84 $1,015.14 $16.12 337.60 281.12 $237.00 4/1/1997 Hopkins Red Air Flash Unit 200.00 $850.00 $728.56 7 6.00 84 $728.56 $10.12 243.12 202.64 $130.00 Hopkins Red Air Flash Unit 16x16(3) $0.00 $0.00 0.00 0.00 4/16/1997 Mettler Toledo Counting Scale $1,314.80 $1,135.37 7 6.05 84 $1,135.37 $15.65 348.18 321.58 $263.00 7/13/1997 Model SE Lands Power Was 150.00 $1,000.00 $899.48 7 6.30 84 $899.48 $11.90 328.21 280.61 $1,000.00 8/11/1998 Prism Machine Guide Lights $174.45 7 7.36 84 $174.45 $2.18 78.53 69.81 $35.00 2/26/1999 Belt for Precision Vortex Dryer Extension $1,765.00 7 7.91 84 $1,365.00 $21.01 966.55 882.30 $353.00 Precision Gas Dryer 98.32 0.00 0.00  EXHIBIT 1  Pacific Print Works Equipment List, Excluding Leased Equipment As of July 31, 2001 Life Net Book Remaining 3/31/2002 7/31/2002 FMV Date Original Value at YRS From Acquisition Monthly Net Book Net Book Acquired Description Cost 3/31/1998 Yrs Acq MOS Cost Deprec. Value Value 10/31/2002 3/25/1999 Ray Paul Cureais Dryer 12,000.00 $18,000.00 7 7.99 84 $18,000.00 $214.99 10,071.27 9,214.11 $8,000.00 7/19/1999 9 Tas Squeegees $150.00 7 8.3 84 $150.00 $1.79 90.93 83.77 $75.00 9/22/1999 EZ 1000 Folding Machine $1,000.00 8.48 84 $1,000.00 $11.91 630.79 583.15 $5,000.00 12/23/1999 EZ Folding Machine Buyout 1,500.00 $2,834.78 7 84 $2,834.78 $33.75 1,889.85 1,754.86 6/4/1998 Flashcure 1,500.00 $4,485.00 5 60 $4,485.00 $75.75 1,046.50 747.50 $500.00 7/20/1998 Flashcure 1,500.00 $2,474.52 5 60 $2,474.52 $41.24 618.63 453.66 $500.00 3/11/1999 Ink Dept $605.00 5 60 $605.00 $10.08 231.92 191.58 3/23/1999 Tas Press-Shipping $600.00 5 60 $600.00 $10.00 230.00 190.00 5/21/1999 Screen Print improvements $847.47 5 60 $847.47 $14.12 353.11 296.61 11/19/1999 Air Jet Dryer 1,500.00 $2400.00 5 60 $2,400.00 $40.00 1,240.00 1,080.00 $12,000.00 12/15/1999 Shipping charges - Tas America $685.00 5 60 $685.00 $11.42 365.33 119.67 4/16/2000 Screenprinter, manual, Prism 2,000.00 $3,500.00 5 60 $3,500.00 $58.33 2,100.00 1,866.67 $2,500.00 7/31/2000 Washout Equipment 2,000.00 5 60 $6,412.00 $106.87 4,167.80 3,740.33 10/16/2000 Tas Press 5,000.00 5 60 $46,817.69 $780.29 33,552.68 30,431.50 $35,000.00 5/31/2001 Major part for image sealer 5,000.00 60 $6,955.00 $193.19 3,091.11 2,318.35 6/11/2001 Major part for Prism automatic 60 $950.00 $15.83 807.50 744.18 10/1/2001 Major part for Prism automatic 60 $4,222.51 $70.38 3,800.26 3,514.74 9/15/2001 Aluminum pellets 60 $1,201.20 $20.02 1,061.06 980.98 $800.00 2/15/2002 Air Compressor 60 $7,400.00 $123.33 7,153.33 6,660.01 $3,500.00 3/15/2002 Light Integrator 60 $380.00 $6.33 373.67 348.35 Ink Computer $10,000.00 Totals $50,650.00 $232,408.59 $119,648.24 $233,507.86 $4,126.57 $98,569.87 $85,128.87 $141,836.00  EXHIBIT 1 Pacific Print Works Equipment List, Excluding Leased Equipment As of July 31, 2001 Life Net Book Remaining 3/31/2002 7/31/2002 FMV Date Original Value at YRS From Acquisition Monthly Net Book Net Book Acquired Description Cost 3/31/1998 Yrs Acq MOS Cost Depreciation Value Value 10/31/2002 EMBROIDERY EQUIPMENT 5/13/1996 Jiffy Steamer $275.00 $201.08 7 5.12 84 $201.08 $3.27 44.01 30.93 $100.00 Jiffy Steamer $1,400.00 $0.00 $0.00 $100.00 10/4/1996 Hooping Machine $1,102.09 7 5.51 84 $1,302.09 $16.67 302.46 235.78 Heat Transfer Unit $0.00 $0.00 $250.00 Heat Transfer Unit $0.00 $0.00 $250.00 Thread $0.00 $0.00 Art & Design Equipment $0.00 $0.00 PC $0.00 $0.00 5/11/1998 Hooping Machine $756.95 $756.95 7 7.11 84 $0.00 2/5/1998 CPU accessories & Corel software $920.00 $904.66 5 4.85 60 $756.95 $9.01 333.48 297.44 12/9/1999 Pentium III Computer $1,354.27 60 $904.66 $15.34 161.39 100.03 Totals $4,706.22 $2,964.78 $1,354.27 $22.57 631.99 514.71 $250.00 $4,319.05 $66.86 1473.34 1,205.90 $950.00 ART & DESIGN EQUIPMENT 7/31/1993 Film Processing Sink $1,500.00 $500.19 7 2.33 84 $500.19 $17.86 $300.00 7/31/1993 200 Volt Flash Cure Machine $2,000.00 $666.37 7 2.33 84 $666.37 $23.81 9/29/1995 Workstation Tables (J) $419.97 $0.00 7 SEC179 $0.00 $0.00 $105.00 10/24/1995 Workstation Tables (I) $199.99 $0.00 7 SEC179 $0.00 $0.00 $50.00 11/8/1995 Film Filing System - Jalerna $5,937.40 $3,887.68 7 4.61 84 $3,887.68 $70.68 508.15 225.43 $1,484.35 1/8/1996 Design Dept Furniture $1,389.90 $943.05 7 4.37 84 $943.05 $16.55 151.9 85.7 $347.48 1/22/1996 Design Hardware $474.98 $261.14 5 2.81 60 $361.14 $3.92 0.00 $75.00 3/17/1997 Power Center Design Computer $3,432.95 $2,720.41 5 3.96 60 $2,720.41 $53.22 0.00 $500.00 9/5/1996 HP Laserjet $0.00 3/1/1995 Scanjet (2) $0.00 1/1/1997 Umax $0.00 Vacuum Table $0.00 8/21/1998 Mac CPU and monitor $2,265.10 5 5.39 60 $2,265.10 $37.76 603.66 452.62 $500.00 10/28/1998 Power Mac from Imperial $75.00 5 5.58 60 $575.00 $1.25 22.50 17.5 Camera $0.00 0.00 0.00 6/17/1999 Apple Powermac & accessories $2,064.00 5 6.22 60 $2,064.00 $34.40 94.40 756.80 $500.00 8/16/1999 Zip Drive $119.00 5 6.38 60 $119.00 $1.98 55.64 47.72 $30.00 12/2/1999 Power Mac G4/400 & Accessories $3,092.00 5 6.68 60 $3,092.00 $51.54 1648.88 1442.72 $773.00 12/2/1999 Digital Camera & Battery Charger $1,003.94 5 6.68 60 $1,003.94 $16.74 535.22 468.26 $250.99 1/14/2000 Power Mac G3 $2,200.00 5 60 $2,200.00 $36.67 1210.00 1063.33 $550.00 Image Setter $7,500.00 Totals 5,000.00 26,174.23 $8,978.84 $19,797.88 $374.38 $5,630.35 $4,560.08 $12,965.81  EXHIBIT 1 Pacific Print Works Equipment List Excluding Leased Equipment As of July 31, 2002 Life Net Book Remaining 3/31/2002 7/31/2002 FMV Date Original Valute at YRS From Acquisition Monthly Net Book Net Book Acquired Description Cost 3/31/1998 Yrs Acq Mos Cost Deprec. Value Value 10/31/2002 Leasehold Improvements 1/5/1996 Steel Folding Gate $324.90 $265.47 7 4.77 84 $265.47 $3.17 51.94 36.46 4/30/1996 5 Ton Gas Pack (Heating Air) $7,562.00 $6,930.47 15 33.09 180 $6,930.47 $42.01 4,837.56 4,669.52 1/28/1997 80 Gallon Water Heater w/install $1,190.00 $998.51 7 5.83 84 $998.51 $14.17 314.84 258.16 4/1/1998 Electrical work for warehouse $22,622.44 7 84 $22,622.64 $260.32 9,695.42 8,618.15 10/25/1998 Warehouse Buildout $2,000.00 7 84 $2,000.00 $23.81 1,023.81 928.57 10/31/1998 General $3,639.44 7 84 $3,639.44 $43.33 1,863.05 1,689.74 11/30/1998 General $381.57 7 84 $381.57 $54.54 199.87 181.7 2/15/1999 Warehouse Buildout $1,200.00 7 84 $1,200.00 $14.29 657.14 600.00 3/15/1999 Warehouse Buildout $244.08 7 84 $244.08 $2.91 136.57 124.95 3/18/1999 Warehouse Buildout $119.77 7 84 $119.77 $1.43 67.01 61.31 8/31/1999 Building Supplies $1,519.99 7 84 $1,519.99 $18.09 940.71 168.35 9/1/1999 Building Supplies $237.13 7 84 $237.13 $2.83 149.40 138.08 10/28/1999 Building Supplies $106.24 7 84 $106.24 $1.27 68.14 63.06 11/1/1999 Building Supplies $384.79 7 84 $384.79 $4.58 251.97 233.65 11/22/1999 Wyatt Fire Protection $3,519.00 7 84 $3,519.00 41.90 2,303.98 2,136.30 11/1/1999 All Things Electrical $2,890.20 7 84 $2,890.20 $1.69 2,841.19 2,834.43 12/8/1999 All Things Electrical $7,386.12 7 84 $7,386.12 $87.93 4,924.08 4,572.36 12/31/1999 Building Supplies $1,254.01 7 84 $1,254.01 $14.93 836.01 776.29 1/30/2000 Building Supplies $511.72 7 84 $511.72 $6.09 347.24 322.87 1/31/2000 MP Plumbing $1,649.65 7 84 $1,649.65 $19.64 1,119.41 1,040.85 2/29/2000 Building Supplies $1,500.55 7 84 $1,500.55 $17.86 1,036.00 964.64 3/31/2000 Building Supplies $1,354.77 84 $1,354.77 $16.33 951.56 887.05 3/31/2000 Building Supplies $1,650.32 84 $1,650.32 $19.65 1,159.15 1,080.57 Air and Gas Piping and Conduit $10,000.00 Totals $63,248.49 $62,366.04 $652.60 $35,776.06 $33,087.05 $43,087.05  EXHIBIT 1 Pacific Print Works Equipment List Excluding Leased Equipment As of July 31, 2002 Life Net Book Remaining 3/31/2002 7/31/2002 FMV Date Orginal Value at YRS From Acquistion Monthly Net Book Net Book Acquired Description Cost 3/31/1998 Yrs Acq MOS Cost Deprec. Value Value 10/31/2002 OFFICE & FURNITURE & EQUIPMENT 199.98 105.15 7 3.71 84 105.15 2.38 0.00 $100.00 12/14/1994 Desk with Left Returns 6/7/1995 Refridgerator 299.95 0 5 0.00 SEC 179 $0.00 $0.00 0.00 $100.00 2/9/1996 ETC Model 100 $770.00 $440.00 5 2.86 60 $440.45 $12.83 0.00 3/31/1996 Conference Table-Mahogany $970.00 $685.40 7 4.95 84 $685.40 $11.55 131.16 84.96 $250.00 3/12/1996 Chairs for conference table $899.94 $636.25 7 4.95 84 $636.25 $10.71 122.11 79.27 $350.00 4/16/1996 Texas Inustruments Calculator (2) $100.00 $60.75 5 3.05 60 $60.75 $1.67 0.00 4/23/1996 Steel Folding Chairs (8) $263.92 $191.00 7 5.06 84 $191.00 $3.14 40.19 27.63 $80.00 4/23/1996 Folding Tables 30x73 (6) $203.94 $147.49 7 5.06 84 $147.49 $2.43 30.97 21.25 $90.00 4/25/1996 Office Furniture $3559.75 $3576.79 7 5.07 84 $2576.79 $42.38 543.63 374.11 $1000.00 5/6/1996 Computer - 486 (O.L.) $317.00 $320.00 5 3.10 60 $320.08 $8.62 (0.00) 5/15/1996 Folding Tables (5) $164.95 $120.81 7 5.13 84 $120.81 $1.96 26.57 22.78 $75.00 5/16/1996 Mobile File Cabinet 4 Draw $449.97 $330.18 7 5.13 84 $330.18 $5.36 72.69 62.32 $225.00 6/3/1996 Computer - 486 (G.E.) $1015.00 $687.82 5 3.13 60 $687.82 $16.92 (0.00) 6/18/1996 Computer Pentium (IP.E.) $1400.00 $900.50 5 3.22 60 $900.50 $23.34 0.00 $250.00 6/19/1996 Office Furniture Workstation (P.C.) $1959.88 $1461.16 7 5.22 84 $1461.16 $23.34 (0.00) $500.00 6/24/1996 HP Laser Printer $477.59 $357.17 5 3.23 60 $357.17 $5.69 (0.00) 6/27/1996 2 - Open Shop Desks (S.T.) $300.68 $225.02 7 5.24 84 $225.02 $1.58 $3.31 38.99 8/1/1996 Workstation Pentium 100 MHZ $1400.00 $933.40 5 3.34 60 $933.40 $23.33 0.00 $250.00 8/8/1996 Workstation Table Desk $559.97 $428.29 7 5.36 84 $428.29 $6.67 108.45 81.77 $280.00 8/9/1996 Corner Desk Station $199.99 $153.08 7 5.36 84 $153.08 $2.38 18.85 29.33 $100.00 8/14/1996 ICP Laserjet SF- Xtra Printers (3) $1437.00 $968.82 5 3.37 60 $968.82 $23.95 0.00 8/19/1996 Workstation Pentium 100MHZ (2) $2800.00 $1895.20 5 3.39 60 $1895.20 $46.67 (0.00) $250.00 9/24/1996 Workstation Pentium 100MHZ $1650.00 $1149.50 5 3.49 60 $1149.50 $27.50 0.00 $250.00 9/26/1996 HP Laser 5L Xtra Printer $479.99 $334.92 5 3.49 60 $334.92 $8.00 (0.00) 10/28/1996 Office Furniture $1493.00 $1189.19 7 5.58 84 $1189.19 $17.77 336.60 265.52 $745.00 11/7/1996 Workstation Pentium 120 MHZ $1650.00 $1203.58 5 3.61 60 $1203.58 $27.50 0.00 $250.00 11/1/1996 Refridgerator - Embroidery $499.00 $357.56 5 3.59 60 $357.56 $1.32 (0.00) $250.00 3/28/1997 Compaq Pentium 100 Computer (IH) $2485.82 $1864.37 5 3.99 60 $1864.37 $41.43 0.00 $250.00 3/28/1997 HP Desk Jet Printers (2) $599.99 $449.98 5 3.99 60 $449.98 $10.00 (0.00) 6/5/1997 Refridgerator $529.99 $420.05 5 4.18 60 $420.05 $8.86 12.42 $265.00 6/29/1997 Supply Cabinet $169.99 $139.66 7 6.25 84 $139.66 $2.02 48.37 40.29 $885.00 7/1/1997 Workstation/Chair/Table/Shelve (Design) $470.93 $386.81 7 6.25 84 $386.81 $5.61 133.94 $111.50 $235.00 7/1/1997 Bookcase Tower $54.99 $45.20 7 6.25 84 $45.20 $0.65 15.72 13.12 $27.00 7/1/1997 Calculator/Printing $39.99 $31.69 5 4.25 60 $31.69 $0.67 1.30 $20.00 7/2/1997 Cubical Panels (20 units) $4327.00 $3554.33 7 6.26 84 $3554.33 $51.51 1231.96 1025.92 $2163.00 7/2/1997 Workstation Table Desk (2) $299.98 $246.42 7 6.26 84 $246.42 53.57 85.42 71.14 $150.00 7/8/19972 Drawer Legal Filing Cabinet $109.99 $90.35 7 6.27 84 $90.35 $1.31 31.42 26.18 $35.00 8/11/1997 HP Laserjet II Printer $199.99 $158.58 5 4.37 60 $158.58 $1.35 9.65 Wall Dividers $0.00 0.00 0.00 10/12/1998 Savin Copier (from lease) $200.00 5 60 $200.00 $3.34 39.72 46.36 1/25/1999 AT&T Phone System $14000.00 7 84 $14000.00 $166.67 7499.87 6833.19 $7000.00 Clothing Racks $0.00 0.00 0.00 1/5/1999 Shelving Units (from Centrailia) $300.00 7 84 $300.00 $53.58 260.38 146.06 $150.00 3/26/1999 Office Pro Software $85.00 5 60 $85.00 $51.42 31.04 25.36 6/9/19993 Pentium II 400 64mg $2100.00 5 60 $2100.00 $35 910.00 770.00 $500.00 8/4/19992 15' SVGA Monitors $338.00 5 60 $318.00 $5.63 153.84 135.32 $169.00 10/21/1999 Savin Copier Lease Buyout $665.41 5 60 $665.41 $11.09 332.71 288.34 11/22/1999 Hard Disk Drive/ Embroidery Machine $1105.25 5 60 $1105.25 $18.42 571.07 497.19 1/25/1999 Phone Systems $2065.00 5 $2065.00 $34.42 732.75 585.08 1/27/1999 Miscellaneous $39.95 5 60 $39.95 $0.67 13.98 11.32 1/28/1999 Storage Cabinet/Finishing $99.99 5 60 $99.99 $1.67 35.00 28.33 $50.00 2/1/1999 Miscellaneous $70.41 5 60 $70.41 $1.17 28.16 23.47 2/8/1999 Miscellaneous $114.41 5 60 $114.41 $1.93 45.76 38.14  EXHIBIT 1 Pacific Print Works Equipment List, Excluding Leased Equipment As of July 31, 2001 Life Net Book Remaining 3/31/2001 7/31/2002 FMV Date Original Value at YRS From Acquisition Monthly Net Book Net Book Acquired Description Cost 3/31/1998 Yrs Acq MOS Cost Deprec. Value Value 10/31/2002 2/18/1999 Miscellaneous $80.00 5 60 $80.00 1.33 32.00 26.67 5/10/1999 Computer equip & networking $7,514.00 5 60 $7,514.00 125.23 3130.83 2629.90 $2,630.00 12/16/1999 Lap top & computer upgrades $1,970.00 3 36 $1,970.00 54.72 437.78 218.89 $492.50 1/3/2000 Business card scanner $249.99 3 36 $249.99 6.96 62.50 34.72 $35.00 1/7/2000 Hubs for shop $575.00 5 60 $575.00 9.58 316.25 277.92 $278.00 1/7/2000 Upgrades $315.00 3 36 $315.00 8.75 78.75 43.75 $44.00 2/1/2000 Network upgrade $2,250.00 5 60 $2,250.00 37.50 12750.00 1125.00 $562.50 4/10/2000 Network upgrade $50.00 3 36 $50.00 1.38 16.67 11.11 $11.00 5/31/2000 Computer $700.00 3 36 $700.00 19.44 272.22 194.44 $194.00 6/27/2001 Power Mac Pac 36 $324.00 9.00 234.00 198.00 $198.00 10/3/2001 Computers (2) Admin 3 36 $3,625.00 100.60 3020.83 2618.07 $2,618.00 12/15/2001 Lap top & computer upgrades 36 $2,150.00 59.72 1911.11 1672.23 $1,672.00 12/15/2001 Software, Quickbooks upg. Power Mac...and MS Office XP 36 $1,029.00 28.58 914.67 800.35 $800.00 2/15/2002 Zip drive and other equip 36 $265.00 7.36 250.28 220.84 $221.00 2/15/2002 Software 36 $49.00 1.36 46.28 40.84 $41.00 4/15/2002 Software 36 $129.00 3.58 0.00 118.26 $118.00 6/15/2002 Software 36 $34.75 0.97 0.00 32.81 $32.00 0.00 0.00 7/15/2002 Computer (2) Admin 3 36 $3,487.69 96.88 0.00 3100.17 $3,100.00 Totals 5,000.00 $70,127.95 $64,265.77 $1,358.81 $25,647.78 $25,168.42 $30,476.00 Screens $32,660.06 60 $32,660.06 $544.33 15562.05 13384.73 4/1-6/30/01 Purchase of Newman Frames 120 $1,920.00 $16.00 1752.00 1709.32 10/1/2002 Purchase of Newman Frames 120 $6,902.00 $57.52 6556.90 6514.22 3/15/2002 Purchase of Newman Frames Quant Cost 120 $378.00 $3.15 Newman Roller Frames 734 $40.00 $29,360.00 Rigid Aluminum Frames 308 $10.00 $3,080.00 Total Screens $41,860.06 $617.85 $23,870.95 $21,608.70 $32,440.00 Other Equipment EZ Go Cart $2,500.00 Shop Equipment $5,000.00 Fire Extinguishers $5,000.00 $12,500.00 Company Totals Manufacturing Equipment - Printing $232,408.59 $98,569.87 $85,128.87 $141,836.00 Embroidery Equipment $4,706.22 $1,473.34 $1,205.90 $950.00 Art & Design Equipment $26,174.23 $5,630.35 $4,560.08 $12,965.81 Leasehold Improvements $63,248.49 $35,776.06 $33,087.05 $43,087.05 Office Furniture & Office Equipment $70,127.95 $25,647.78 $25,168.42 $30,476.00 Screens $32,440.00 Other Equipment $12,500.00 Totals $429,325.54 $190,968.14 $170,758.58 $274,254.86  EXHIBIT 2 Pacific Print Works Leased Equipment Amortization Schedule Original Purchase Life of End of Acquisition Net Book Fair Mkt Value Description Cost Date Asset Life Cost Value at 7/31/02 10/31/2002 Color Copier (traded 3/00) 52,370.00 1/1/1996 5 Forklift 22,539.00 1/1/1997 7 12/31/2003 18,514.18 Elexon Infinity 1 174,138.52 7/1/1995 7 6/30/2000 78,362.33 15,000.00 Elexon Infinity 2 165,000.00 12/31/1996 7 12/31/2001 90,750.00 20,000.00 RayPaul Cyclone Dryer 39,000.00 5/1/1996 7 4/30/2003 28,785.71 4,642.86 15,000.00 Barudan 906 289,584.00 7/1/1996 10 6/30/2006 260,000.00 Barudan Benz 252,702.00 9/23/1996 10 8/31/2006 230,621.00 Barudan 906 Buyout 43,437.00 6/1/2001 5 6/30/2006 43,437.00 Barudan Benz Buyout 37,905.00 10/1/2001 5 8/31/2006 37,905.00 LDR Design Computer 56,471.00 1/1/1996 5 12/31/2000 31,059.05 Gunold Design Computer 44,262.00 7/1/1996 5 6/30/2001 28,770.30 Power Mac 9,855.00 10/20/1995 3 Expired 1,642.00 E-Z Fold Machine 28,500.00 11/1/1995 7 10/31/2002 18,660.71 1,583.33 Savin Copier Production 3,695.00 3/1/1995 5 2/28/2000 1,478.00 Tas Equipment 8 and 14 color presses 144,312.00 6/1/1998 5 5/31/2003 144,312.00 24,052.00 85,000.00 Tas America 12 color, 14 station 94,674.00 3/1/1999 5 2/28/2004 94,674.40 29,980.23 55,000.00 Tas America 8 color, 18 stn I/C dryer 168,050.00 12/1/1999 5 11/30/2004 168,050.00 78,423.33 75,000.00 EDI Equipment & Software 28,372.00 9/1/1999 5 4/30/2004 28,372.00 10,740.82 5,000.00 Color Copier - Epson CP 8000 16,935.00 3/1/2000 4 2/28/2004 16,935.00 7,056.25 Net Balance at 3/31 1,671,801.92 1,322,329.19 156,478.82 270,000.00