Sanguine Corporation
101 East Green Street, Suite 11
Pasadena, California 91105

Attention:     The Board of Directors

Re:       Subscription Agreement to acquire certain shares of common stock
          that are "restricted securities" of Sanguine Corporation, a Nevada
          corporation (the "Company"), in consideration of the cancellation
          of certain debt of the Company owed to the undersigned, and the
          contribution to capital of the Company of certain other debt of the
          Company to the undersigned

Dear Gentlemen:

          In consideration of the issuance of 924,600 shares of common stock
of the  Company that are "restricted securities" as that term is defined under
Rule 144 of the Securities  and Exchange Commission, the undersigned
representative of the Estate of Anthony G.  Hargreaves hereby agrees to
compromise and settle the following debts of the Company that are  owed to the
Estate of Anthony G. Hargreaves: $36,984 reflected on the June 30, 2004,
unaudited  balance sheet of the Company as "accounts payable."

          The undersigned also, for the benefit of the Company and believing
that this act  will enhance the future value of its other securities in the
Company, hereby compromises and  settles and contributes to the capital of the
Company the following debts owed to the Estate of  Anthony G. Hargreaves by
the Company:  $276,500 reflected on the June 30, 2004, unaudited  balance
sheet of the Company as "Accrued salaries"; and any interest on any amounts in
this  paragraph or the preceding paragraph since June 30, 2004.

                         ANTHONY AND AUDREY HARGREAVES TRUST
                         AUDREY HARGREAVES AND
                         EDWARD L. KUNKEL, CO-TRUSTEES

Date:    9/30/04              /s/   Audrey Hargreaves

Date:   9/30/04               /s/ Edward L. Kunkel