----

| Section      2. | Exercise. |
|-----------------|-----------|

|   | a) | Exercise of      Warrant. Exercise of the purchase rights represented by this      Warrant may be made at any time or times on or after the Initial Exercise      Date and on or before the Termination Date by delivery to the Company of a      duly executed facsimile copy of the Notice of Exercise Form      annexed  hereto (or such other office or agency of the Company      as it may designate by notice in writing to the registered Holder at the      address of such Holder appearing on the books of the Company); provided, however, within      5 Trading Days of the date said Notice of Exercise is delivered to the      Company, the Holder shall have surrendered this Warrant to the Company and      the Company shall have received  payment of the aggregate      Exercise Price of the shares thereby purchased by wire transfer or      cashier’s check drawn on a United Statesbank. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | b) | Exercise Price.      The exercise price of the Common Stock under this Warrant shall be equal      to 110% of the closing price of the common stock on October 25, 2007 (the      “Exercise      Price”), subject to adjustment pursuant to Section 3      hereof. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Cashless      Exercise. This Warrant may also be exercised by means of a      “cashless exercise” in which the Holder shall be entitled to receive a      certificate for the number of Warrant Shares equal to the quotient      obtained by dividing [(A-B) (X)] by (A),where: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Exercise      Limitations; Holder’s      Restrictions. The Holder shall not have the right to exercise any      portion of this Warrant, pursuant to Section 2(c) or otherwise, to the      extent that after giving effect to such issuance after exercise, the      Holder (together with the Holder’s affiliates), as set forth on the      applicable Notice of Exercise, would beneficially own in excess of 4.9% of      the number of shares of the Common Stock outstanding immediately after      giving effect to such issuance. For purposes of the foregoing sentence,      the number of shares of Common Stock beneficially owned by the Holder and      its affiliates shall include the number of shares of Common Stock issuable      upon exercise of this Warrant with respect to which the determination of      such sentence is being made, but shall exclude the number of shares of      Common Stock which would be issuable upon (A) exercise of the remaining,      nonexercised portion of this Warrant beneficially owned by the Holder or      any of its affiliates and (B) exercise or conversion of the unexercised or      nonconverted portion of any other securities of the Company (including,      without limitation, any other Notes or Warrants) subject to a limitation      on conversion or exercise analogous to the limitation contained herein      beneficially owned by the Holder or any of its      affiliates.  Except as set forth in the preceding sentence, for      purposes of this Section 2(d), beneficial ownership shall be calculated in      accordance with Section 13(d) of the Exchange Act, it being acknowledged      by Holder that the Company is not representing to Holder that such      calculation is in compliance with Section 13(d) of the Exchange Act and      Holder is solely responsible for any schedules required to be filed in      accordance therewith. To the extent that the limitation contained in this      Section 2(d) applies, the determination of whether this Warrant is      exercisable (in relation to other securities owned by the Holder) and of      which a portion of this Warrant is exercisable shall be in the sole      discretion of such Holder, and the submission of a Notice of Exercise      shall be deemed to be such Holder’s determination of whether this Warrant      is exercisable (in relation to other securities owned by such Holder) and      of which portion of this Warrant is exercisable, in each case subject to      such aggregate percentage limitation, and the Company shall have no      obligation to verify or confirm the accuracy of such      determination.  For purposes of this Section 2(d), in      determining the number of outstanding shares of Common Stock, the Holder      may rely on the number of outstanding shares of Common Stock as reflected      in (x) the Company’s most recent Form 10-QSB or Form 10-KSB (or similar      form), as the case may be, (y) a more recent public announcement by the      Company or (z) any other notice by the Company or the Company’s Transfer      Agent setting forth the number of shares of Common Stock      outstanding.  Upon the written or oral request of the Holder,      the Company shall within two Trading Days confirm orally and in writing to      the Holder the number of shares of Common Stock then      outstanding.  In any case, the number of outstanding shares of      Common Stock shall be determined after giving effect to the conversion or      exercise of securities of the Company, including this Warrant, by the      Holder or its affiliates since the date as of which such number of      outstanding shares of Common Stock was reported.  The provisions      of this Section 2(d) may be waived by the Holder upon, at the election of      the Holder, not less than 61 days’ prior notice to the Company, and the      provisions of this Section 2(d) shall continue to apply until such 61st      day (or such later date, as determined by the Holder, as may be      specified in such notice ofwaiver). |
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|   | e) | Mechanics of      Exercise. |
|--------|----|-----------------------------|

|   | i) | Authorization of      Warrant Shares.  The Company covenants that all Warrant      Shares which may be issued upon the exercise of the purchase rights      represented by this Warrant will, upon exercise of the purchase rights      represented by this Warrant, be duly authorized, validly issued, fully      paid and nonassessable and free from all taxes, liens and charges in      respect of the issue thereof (other than taxes in respect of any transfer      occurring contemporaneously with such issue).  The Company      covenants that during the period the Warrant is outstanding, it will      reserve from its authorized and unissued Common Stock a sufficient number      of shares to provide for the issuance of the Warrant Shares upon the      exercise of any purchase rights under this Warrant.  The Company      further covenants that its issuance of this Warrant shall constitute full      authority to its officers who are charged with the duty of executing stock      certificates to execute and issue the necessary certificates for the      Warrant Shares upon the exercise of the purchase rights under this      Warrant.  The Company will take all such reasonable action as      may be necessary to assure that such Warrant Shares may be issued as      provided herein without violation of any applicable law or regulation, or      of any requirements of the Trading Market upon which the Common Stock may      be listed. |
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|   | ii) | Delivery of      Certificates Upon Exercise. Certificates for shares purchased      hereunder shall be transmitted by the transfer agent of the Company to the      Holder by crediting the account of the Holder’s prime broker with the      Depository Trust Company through its Deposit Withdrawal Agent Commission      (“DWAC”)      system if the Company is a participant in such system, and otherwise by      physical delivery to the address specified by the Holder in the Notice of      Exercise within 3 Trading Days from the delivery to the Company of the      Notice of Exercise Form, surrender of this Warrant and payment of the      aggregate Exercise Price as set forth above (“Warrant Share Delivery      Date”). This Warrant shall be deemed to have been exercised on the      date the Exercise Price is received by the Company. The Warrant Shares      shall be deemed to have been issued, and Holder or any other person so      designated to be named therein shall be deemed to have become a holder of      record of such shares for all purposes, as of the date the Warrant has      been exercised by payment to the Company of the Exercise Price and all      taxes required to be paid by the Holder, if any, pursuant to Section      2(e)(vii) prior to the issuance of such shares, have been      paid. |
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|   | iii) | Delivery of New      Warrants Upon Exercise. If this Warrant shall have been exercised      in part, the Company shall, at the time of delivery of the certificate or      certificates representing Warrant Shares, deliver to Holder a new Warrant      evidencing the rights of Holder to purchase the unpurchased Warrant Shares      called for by this Warrant, which new Warrant shall in all other respects      be identical with this Warrant. |
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|   | iv) | Rescission      Rights. If the Company fails to cause its transfer agent to      transmit to the Holder a certificate or certificates representing the      Warrant Shares pursuant to this Section 2(e)(iv) by the Warrant Share      Delivery Date, then the Holder will have the right to rescind such      exercise. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | v) | Compensation for      Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In      addition to any other rights available to the Holder, if the Company fails      to cause its transfer agent to transmit to the Holder a certificate or      certificates representing the Warrant Shares pursuant to an exercise on or      before the Warrant Share Delivery Date, and if after such date the Holder      is required by its broker to purchase (in an open market transaction or      otherwise) shares of Common Stock to deliver in satisfaction of a sale by      the Holder of the Warrant Shares which the Holder anticipated receiving      upon such exercise (a “Buy-In”), then      the Company shall (1) pay in cash to the Holder the amount by which (x)      the Holder’s total purchase price (including brokerage commissions, if      any) for the shares of Common Stock so purchased exceeds (y) the amount      obtained by multiplying (A) the number of Warrant Shares that the Company      was required to deliver to the Holder in connection with the exercise at      issue times (B) the price at which the sell order giving rise to such      purchase obligation was executed, and (2) at the option of the Holder,      either reinstate the portion of the Warrant and equivalent number of      Warrant Shares for which such exercise was not honored or deliver to the      Holder the number of shares of Common Stock that would have been issued      had the Company timely complied with its exercise and delivery obligations      hereunder. For example, if the Holder purchases Common Stock having a      total purchase price of $11,000 to cover a Buy-In with respect to an      attempted exercise of shares of Common Stock with an aggregate sale price      giving rise to such purchase obligation of $10,000, under clause (1) of      the immediately preceding sentence the Company shall be required to pay      the Holder $1,000. The Holder shall provide the Company written notice      indicating the amounts payable to the Holder in respect of the Buy-In,      together with applicable confirmations and other evidence reasonably      requested by the Company. Nothing herein shall limit a Holder’s right to      pursue any other remedies available to it hereunder, at law or in equity      including, without limitation, a decree of specific performance and/or      injunctive relief with respect to the Company’s failure to timely deliver      certificates representing shares of Common Stock upon exercise of the      Warrant as required pursuant to the terms  hereof. |
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|   | vi) | No Fractional Shares      or Scrip. No fractional shares or scrip representing fractional      shares shall be issued upon the exercise of this Warrant.  As to      any fraction of a share which Holder would otherwise be entitled to      purchase upon such exercise, the Company shall pay a cash adjustment in      respect of such final fraction in an amount equal to such fraction      multiplied by the Exercise Price. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | vii) | Charges, Taxes and      Expenses. Issuance of certificates for Warrant Shares shall be made      without charge to the Holder for any issue or transfer tax or other      incidental expense in respect of the issuance of such certificate, all of      which taxes and expenses shall be paid by the Company, and such      certificates shall be issued in the name of the Holder or in such name or      names as may be directed by the Holder; provided, however, that      in the event certificates for Warrant Shares are to be issued in a name      other than the name of the Holder, this Warrant when surrendered for      exercise shall be accompanied by the Assignment Form attached hereto duly      executed by the Holder; and the Company may require, as a condition      thereto, the payment of a sum sufficient to reimburse it for any transfer      tax incidental thereto. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | viii) | Closing of      Books. The Company will not close its stockholder books or records      in any manner which prevents the timely exercise of this Warrant, pursuant      to the terms hereof. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Section      3. | Certain      Adjustments. |
|-----------------|---------------------------|

|   | a) | Stock Dividends and      Splits. If the Company, at any time while this Warrant is      outstanding: (A) pays a stock dividend or otherwise make a distribution or      distributions on shares of its Common Stock or any other equity or equity      equivalent securities payable in shares of Common Stock (which, for      avoidance of doubt, shall not include any shares of Common Stock issued by      the Company pursuant to this Warrant), (B) subdivides outstanding shares      of Common Stock into a larger number of shares, (C) combines (including by      way of reverse stock split) outstanding shares of Common Stock into a      smaller number of shares, or (D) issues by reclassification of shares of      the Common Stock any shares of capital stock of the Company, then in each      case the Exercise Price shall be multiplied by a fraction of which the      numerator shall be the number of shares of Common Stock (excluding      treasury shares, if any) outstanding before such event and of which the      denominator shall be the number of shares of Common Stock outstanding      after such event and the number of shares issuable upon exercise of this      Warrant shall be proportionately adjusted.  Any adjustment made      pursuant to this Section 3(a) shall become effective immediately after the      record date for the determination of stockholders entitled to receive such      dividend or distribution and shall become effective immediately after the      effective date in the case of a subdivision, combination or      re-classification. |
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|   | b) | Subsequent Equity      Sales. If the Company, at any time while this Warrant is      outstanding, shall offer, sell, grant any option to purchase or offer,      sell or grant any right to reprice its securities, or otherwise dispose of      or issue (or announce any offer, sale, grant or any option to purchase or      other disposition) any Common Stock or Common Stock Equivalents entitling      any Person to acquire shares of Common Stock, at an effective price per      share less than the then Exercise Price (such lower price, the “Base Share      Price” and such issuances collectively, a “Dilutive      Issuance”), as adjusted hereunder (if the holder of the Common      Stock or Common Stock Equivalents so issued shall at any time, whether by      operation of purchase price adjustments, reset provisions, floating      conversion, exercise or exchange prices or otherwise, or due to warrants,      options or rights per share which is issued in connection with such      issuance, be entitled to receive shares of Common Stock at an effective      price per share which is less than the Exercise Price, such issuance shall      be deemed to have occurred for less than the Exercise Price), then, the      Exercise Price shall be reduced to equal the Base Share Price and the      number of Warrant Shares issuable hereunder shall be increased such that      the aggregate Exercise Price payable hereunder, after taking into account      the decrease in the Exercise Price, shall be equal to the aggregate      Exercise Price prior to such adjustment. Such adjustment shall be made      whenever such Common Stock or Common Stock Equivalents are      issued.  Such adjustment shall be made whenever such Common      Stock or Common Stock Equivalents are issued. The Company shall notify the      Holder in writing, no later than the Trading Day following the issuance of      any Common Stock or Common Stock Equivalents subject to this section,      indicating therein the applicable issuance price, or of applicable reset      price, exchange price, conversion price and other pricing terms (such      notice the “Dilutive Issuance      Notice”). For purposes of clarification, whether or not the Company      provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon      the occurrence of any Dilutive Issuance, after the date of such Dilutive      Issuance the Holder is entitled to receive a number of Warrant Shares      based upon the Base Share Price regardless of whether the Holder      accurately refers to the Base Share Price in the Notice of      Exercise. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Pro Rata      Distributions. If the Company, at any time prior to the Termination      Date, shall distribute to all holders of Common Stock (and not to Holders      of the Warrants) evidences of its indebtedness or assets or rights or      warrants to subscribe for or purchase any security other than the Common      Stock (which shall be subject to Section 3(b)), then in each such case the      Exercise Price shall be adjusted by multiplying the Exercise Price in      effect immediately prior to the record date fixed for determination of      stockholders entitled to receive such distribution by a fraction of which      the denominator shall be the VWAP determined as of the record date      mentioned above, and of which the numerator shall be such VWAP on such      record date less the then per share fair market value at such record date      of the portion of such assets or evidence of indebtedness so distributed      applicable to one outstanding share of the Common Stock as determined by      the Board of Directors in good faith.  In either case the      adjustments shall be described in a statement provided to the Holders of      the portion of assets or evidences of indebtedness so distributed or such      subscription rights applicable to one share of Common      Stock.  Such adjustment shall be made whenever any such      distribution is made and shall become effective immediately after the      record date mentioned above. |
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|   | d) | Calculations.      All calculations under this Section 3 shall be made to the nearest cent or      the nearest 1/100th of a share, as the case may be. The number of shares      of Common Stock outstanding at any given time shall not includes shares of      Common Stock owned or held by or for the account of the Company, and the      description of any such shares of Common Stock shall be considered on      issue or sale of Common  Stock. For purposes of this Section 3,      the number of shares of Common Stock deemed to be issued and outstanding      as of a given date shall be the sum of the number of shares of Common      Stock (excluding treasury shares, if any) issued and      outstanding. |
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|   | e) | Notice to      Holders. |
|--------|----|-------------------------|

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|   | f) | Fundamental      Transaction. If, at any time while this Warrant is outstanding, (A)      the Company effects any merger or consolidation of the Company with or      into another Person, (B) the Company effects any sale of all or      substantially all of its assets in one or a series of related      transactions, (C) any tender offer or exchange offer (whether by the      Company or another Person) is completed pursuant to which holders of      Common Stock are permitted to tender or exchange their shares for other      securities, cash or property, or (D) the Company effects any      reclassification of the Common Stock or any compulsory share exchange      pursuant to which the Common Stock is effectively converted into or      exchanged for other securities, cash or property (in any such case, a      “Fundamental      Transaction”), then, upon any subsequent conversion of this      Warrant, the Holder shall have the right to receive, for each Warrant      Share that would have been issuable upon such exercise absent such      Fundamental Transaction, at the option of the Holder, (a) upon exercise of      this Warrant, the number of shares of Common Stock of the successor or      acquiring corporation or of the Company, if it is the surviving      corporation, and Alternate Consideration receivable upon or as a result of      such reorganization, reclassification, merger, consolidation or      disposition of assets by a Holder of the number of shares of Common Stock      for which this Warrant is exercisable immediately prior to such event or      (b) cash equal to the value of this Warrant as determined in accordance      with the Black-Scholes option pricing formula (the “Alternate      Consideration”). For purposes of any such exercise, the      determination of the Exercise Price shall be appropriately adjusted to      apply to such Alternate Consideration based on the amount of Alternate      Consideration issuable in respect of one share of Common Stock in such      Fundamental Transaction, and the Company shall apportion the Exercise      Price among the Alternate Consideration in a reasonable manner reflecting      the relative value of any different components of the Alternate      Consideration. If holders of Common Stock are given any choice as to the      securities, cash or property to be received in a Fundamental Transaction,      then the Holder shall be given the same choice as to the Alternate      Consideration it receives upon any exercise of this Warrant following such      Fundamental Transaction.  To the extent necessary to effectuate      the foregoing provisions, any successor to the Company or surviving entity      in such Fundamental Transaction shall issue to the Holder a new warrant      consistent with the foregoing provisions and evidencing the Holder’s right      to exercise such warrant into Alternate Consideration. The terms of any      agreement pursuant to which a Fundamental Transaction is effected shall      include terms requiring any such successor or surviving entity to comply      with the provisions of this paragraph (f) and insuring that this Warrant      (or any such replacement security) will be similarly adjusted upon any      subsequent transaction analogous to a Fundamental    Transaction. |
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|   | g) | Voluntary Adjustment      By Company. The Company may at any time during the term of this      Warrant reduce the then current Exercise Price to any amount and for any      period of time deemed appropriate by the Board of Directors of the      Company. |
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|   | Section      4. | Transfer of      Warrant. |
|--------|-----------------|---------------------------|

|   | a) | Transferability.      Subject to compliance with any applicable securities laws and the      conditions set forth in Sections 5(a) and 4(d) hereof, this Warrant and      all rights hereunder are transferable, in whole or in part, upon surrender      of this Warrant at the principal office of the Company, together with a      written assignment of this Warrant substantially in the form attached      hereto duly executed by the Holder or its agent or attorney and funds      sufficient to pay any transfer taxes payable upon the making of such      transfer.  Upon such surrender and, if required, such payment,      the Company shall execute and deliver a new Warrant or Warrants in the      name of the assignee or assignees and in the denomination or denominations      specified in such instrument of assignment, and shall issue to the      assignor a new Warrant evidencing the portion of this Warrant not so      assigned, and this Warrant shall promptly be cancelled.  A      Warrant, if properly assigned, may be exercised by a new holder for the      purchase of Warrant Shares without having a new Warrant      issued. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | b) | New Warrants.      This Warrant may be divided or combined with other Warrants upon      presentation hereof at the aforesaid office of the Company, together with      a written notice specifying the names and denominations in which new      Warrants are to be issued, signed by the Holder or its agent or      attorney.  Subject to compliance with Section 4(a), as to any      transfer which may be involved in such division or combination, the      Company shall execute and deliver a new Warrant or Warrants in exchange      for the Warrant or Warrants to be divided or combined in accordance with      such notice. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Warrant      Register. The Company shall register this Warrant, upon records to      be maintained by the Company for that purpose (the “Warrant      Register”), in the name of the record Holder hereof from time to      time.  The Company may deem and treat the registered Holder of      this Warrant as the absolute owner hereof for the purpose of any exercise      hereof or any distribution to the Holder, and for all other purposes,      absent actual notice to thecontrary. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Transfer      Restrictions. If, at the time of the surrender of this Warrant in      connection with any transfer of this Warrant, the transfer of this Warrant      shall not be registered pursuant to an effective registration statement      under the Securities Act and under applicable state securities or blue sky      laws, the Company may require, as a condition of allowing such transfer      (i) that the Holder or transferee of this Warrant, as the case may be,      furnish to the Company a written opinion of counsel (which opinion shall      be in form, substance and scope customary for opinions of counsel in      comparable transactions) to the effect that such transfer may be made      without registration under the Securities Act and under applicable state      securities or blue sky laws, (ii) that the holder or transferee execute      and deliver to the Company an investment letter in form and substance      acceptable to the Company and (iii) that the transferee be an “accredited      investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)      promulgated under the Securities Act or a qualified institutional buyer as      defined in Rule 144A(a) under the Securities  Act. |
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|   | Section      5. | Miscellaneous. |
|--------|-----------------|----------------|

|   | a) | Title to      Warrant. Prior to the Termination Date and subject to compliance      with applicable laws and Section 4 of this Warrant, this Warrant and all      rights hereunder are transferable, in whole or in part, at the office or      agency of the Company by the Holder in person or by duly authorized      attorney, upon surrender of this Warrant together with the Assignment Form      annexed hereto properly endorsed. The transferee shall sign an investment      letter in form and substance reasonably satisfactory to the      Company. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | b) | No Rights as      Shareholder Until Exercise.  This Warrant does not      entitle the Holder to any voting rights or other rights as a shareholder      of the Company prior to the exercise hereof. Upon the surrender of this      Warrant and the payment of the aggregate Exercise Price (or by means of a      cashless exercise), the Warrant Shares so purchased shall be and be deemed      to be issued to such Holder as the record owner of such shares as of the      close of business on the later of the date of such surrender or      payment. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Loss, Theft,      Destruction or Mutilation of Warrant. The Company covenants that      upon receipt by the Company of evidence reasonably satisfactory to it of      the loss, theft, destruction or mutilation of this Warrant or any stock      certificate relating to the Warrant Shares, and in case of loss, theft or      destruction, of indemnity or security reasonably satisfactory to it      (which, in the case of the Warrant, shall not include the posting of any      bond), and upon surrender and cancellation of such Warrant or stock      certificate, if mutilated, the Company will make and deliver a new Warrant      or stock certificate of like tenor and dated as of such cancellation, in      lieu of such Warrant or stockcertificate. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Saturdays, Sundays,      Holidays, etc. If the last or appointed day for the taking of any      action or the expiration of any right required or granted herein shall be      a Saturday, Sunday or a legal holiday, then such action may be taken or      such right may be exercised on the next succeeding day not a Saturday,      Sunday or legal holiday. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | Authorized      Shares. The Company covenants that during the period the Warrant is      outstanding, it will reserve from its authorized and unissued Common Stock      a sufficient number of shares to provide for the issuance of the Warrant      Shares upon the exercise of any purchase rights under this      Warrant.  The Company further covenants that its issuance of      this Warrant shall constitute full authority to its officers who are      charged with the duty of executing stock certificates to execute and issue      the necessary certificates for the Warrant Shares upon the exercise of the      purchase rights under this Warrant. The Company will take all such      reasonable action as may be necessary to assure that such Warrant Shares      may be issued as provided herein without violation of any applicable law      or regulation, or of any requirements of the trading market upon which the      Common Stock may be listed. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | f) | Jurisdiction.      All questions concerning the construction, validity, enforcement and      interpretation of this Warrant shall be determined in accordance with the      provisions of the PurchaseAgreement. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | Restrictions.  The      Holder acknowledges that the Warrant Shares acquired upon the exercise of      this Warrant, if not registered, will have restrictions upon resale      imposed by state and federal securitieslaws. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | Nonwaiver and      Expenses. No course of dealing or any delay or failure to exercise      any right hereunder on the part of Holder shall operate as a waiver of      such right or otherwise prejudice Holder’s rights, powers or remedies,      notwithstanding the fact that all rights hereunder terminate on the      Termination Date. If the Company willfully and knowingly fails to comply      with any provision of this Warrant, which results in any material damages      to the Holder, the Company shall pay to Holder such amounts as shall be      sufficient to cover any costs and expenses including, but not limited to,      reasonable attorneys’ fees, including those of appellate proceedings,      incurred by Holder in collecting any amounts due pursuant hereto or in      otherwise enforcing any of its rights, powers or remedies      hereunder. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i) | Notices. Any      notice, request or other document required or permitted to be given or      delivered to the Holder by the Company shall be delivered in accordance      with the notice provisions of the Purchase  Agreement. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j) | Limitation of      Liability. No provision hereof, in the absence of any affirmative      action by Holder to exercise this Warrant or purchase Warrant Shares, and      no enumeration herein of the rights or privileges of Holder, shall give      rise to any liability of Holder for the purchase price of any Common Stock      or as a stockholder of the Company, whether such liability is asserted by      the Company or by creditors of theCompany. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | k) | Remedies.      Holder, in addition to being entitled to exercise all rights granted by      law, including recovery of damages, will be entitled to specific      performance of its rights under this Warrant.  The Company      agrees that monetary damages would not be adequate compensation for any      loss incurred by reason of a breach by it of the provisions of this      Warrant and hereby agrees to waive the defense in any action for specific      performance that a remedy at law would be  adequate. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | l) | Successors and      Assigns. Subject to applicable securities laws, this Warrant and      the rights and obligations evidenced hereby shall inure to the benefit of      and be binding upon the successors of the Company and the successors and      permitted assigns of Holder. The provisions of this Warrant are intended      to be for the benefit of all Holders from time to time of this Warrant and      shall be enforceable by any such Holder or holder of Warrant      Shares. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | m) | Amendment. This      Warrant may be modified or amended or the provisions hereof waived with      the written consent of the Company and the  Holder. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | n) | Severability.      Wherever possible, each provision of this Warrant shall be interpreted in      such manner as to be effective and valid under applicable law, but if any      provision of this Warrant shall be prohibited by or invalid under      applicable law, such provision shall be ineffective to the extent of such      prohibition or invalidity, without invalidating the remainder of such      provisions or the remaining provisions of this  Warrant. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o) | Headings. The      headings used in this Warrant are for the convenience of reference only      and shall not, for any purpose, be deemed a part of this      Warrant. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | MARSHALL      HOLDINGS INTERNATIONAL, INC. |
|--------|--------------------------------------------|
|   |                                       |   |   |
|   |                                       |   |   |
|   | By                                         | /s/      Richard A. Bailey |   |
|   |                                       | Richard      A. Bailey, President and Chief ExecutiveOfficer |

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|   | Dated:      ______________, _______ |
|--------|-------------------------------------|

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