NEITHER  THE  ISSUANCE  AND  SALE  OFTHE  SECURITIES  REPRESENTED  BY THIS  CERTIFICATE  NOR  THE  SECURITIES  INTO  WHICH  THESE  SECURITIES ARECONVERTIBLEHAVEBEENREGISTEREDUNDERTHESECURITIESACT OF1933,ASAMENDED,ORAPPLICABLESTATESECURITIESLAWS.     THE SECURITIESMAYNOTBEOFFEREDFORSALE,SOLD,TRANSFERREDOR ASSIGNED(I)INTHEABSENCEOF(A)ANEFFECTIVEREGISTRATION STATEMENTFORTHESECURITIESUNDERTHESECURITIESACTOF1933,AS AMENDED,  OR  (B)  AN  OPINION  OF  COUNSEL  (WHICH  COUNSEL  SHALL  BE SELECTED  BYTHE  HOLDER),  IN  A  GENERALLY  ACCEPTABLE  FORM,  THAT REGISTRATION  IS  NOT  REQUIRED  UNDER  SAID  ACT  OR  (II)  UNLESS  SOLD PURSUANT      TO      RULE      144      OR      RULE      144A      UNDER      SAID      ACT. NOTWITHSTANDINGTHEFOREGOING,THESECURITIESMAYBEPLEDGEDIN CONNECTIONWITHABONAFIDEMARGINACCOUNTOR  OTHERLOANOR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.  Principal Amount: $75,000.00 Issue Date: September 12, 2012 Purchase Price: $75,000.00 CONVERTIBLE PROMISSORY NOTE FOR   VALUE   RECEIVED,FORCE   ENERGY   CORP.,   a   Nevada   corporation (hereinafter   called   the   Borrower),   hereby   promises   to   pay   to   the   order   ofASHER ENTERPRISES,INC.,aDelawarecorporation,orregisteredassigns(theHolder)thesumof $75,000.00 together with any interest as set forth herein, on June 14, 2013 (the Maturity Date), andtopayinterestontheunpaidprincipalbalancehereofattherateofeightpercent(8%)(the InterestRate)perannumfromthedatehereof(theIssueDate)untilthesamebecomesdue and payable, whether at maturity or upon acceleration or by prepayment or otherwise.This Note maynotbeprepaidinwholeorinpartexcept  asotherwiseexplicitlysetforthherein.Any amountofprincipalorinterestonthisNotewhichisnotpaidwhendueshallbearinterestatthe rateoftwentytwopercent(22%)perannumfromtheduedatethereofuntilthesameispaid (DefaultInterest).Interest shall commence accruing on the date that the Note is fully paid and shallbecomputedonthebasisofa365-dayyearandtheactualnumberofdayselapsed.   All paymentsduehereunder(totheextentnotconvertedintocommonstock,$0.001parvalueper share  (the  Common  Stock)  in  accordance  with  the  terms  hereof)  shall  be  made  in  lawful moneyoftheUnitedStatesofAmerica.Allpaymentsshallbemadeatsuchaddressasthe Holder  shall  hereafter  give  to  the  Borrower  by  written  notice  made  in  accordance  with  the provisionsofthisNote.WheneveranyamountexpressedtobeduebythetermsofthisNoteis 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 interest payment date which is not the date on whichthisNoteispaidinfull,theextensionoftheduedatethereofshallnotbetakeninto accountforpurposesofdeterminingtheamountofinterestdueonsuchdate.   Asusedinthis Note,thetermbusinessdayshallmeananydayotherthanaSaturday,Sundayoradayon whichcommercialbanksinthecityofNewYork,NewYorkareauthorizedorrequiredbylaw or  executive  order  to  remain  closed.    Each  capitalized  term  used  herein,  and  not  otherwise  defined,shallhavethemeaningascribedtheretointhatcertainSecuritiesPurchaseAgreement datedthedatehereof,pursuanttowhichthisNotewasoriginallyissued(thePurchase Agreement). ThisNoteisfreefromalltaxes,liens,claimsandencumbranceswithrespecttotheissue thereofand shall not be subject to preemptive rights or other similar rightsof shareholders of the Borrower and will not impose personal liability upon the holder thereof. The following terms shall apply to this Note: ARTICLE I.CONVERSION RIGHTS  1.1 ConversionRight.TheHoldershallhavetherightfromtimetotime,and atanytimeduringtheperiodbeginningonthedatewhichisonehundredeighty(180)days followingthedateofthisNoteandendingonthelaterof:(i)theMaturityDateand(ii)thedate of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or Article III,eachinrespectoftheremainingoutstandingprincipalamountofthisNotetoconvertallor anypartoftheoutstandingandunpaidprincipalamountofthisNoteintofullypaidandnon- assessablesharesofCommonStock,assuchCommonStockexistsontheIssueDate,orany sharesofcapitalstockorothersecuritiesoftheBorrowerintowhichsuchCommonStockshall hereafter be changed orreclassifiedat the conversion price(theConversion Price) determined asprovidedherein(aConversion);provided,however,thatinnoeventshalltheHolderbe   entitled to convert any portion of this Note in excess of that portion of this Note upon conversion ofwhichthesumof(1)thenumberofsharesofCommonStockbeneficiallyownedbythe Holderanditsaffiliates(otherthansharesofCommonStockwhichmay bedeemedbeneficially ownedthroughtheownershipoftheunconvertedportionoftheNotesortheunexercisedor unconvertedportionofanyothersecurityoftheBorrowersubjecttoalimitationonconversion or  exercise  analogous  to  the  limitations  contained  herein)  and  (2)  the  number  of  shares  of CommonStockissuableupontheconversionoftheportionofthisNotewithrespecttowhich thedeterminationofthisprovisoisbeingmade,wouldresultinbeneficialownershipbythe Holderanditsaffiliatesofmorethan4.99%oftheoutstandingsharesofCommonStock.   For purposesoftheprovisototheimmediatelyprecedingsentence,beneficialownershipshallbe determinedinaccordancewithSection13(d)oftheSecuritiesExchangeActof1934,as amended(theExchangeAct),andRegulations13D-Gthereunder,exceptasotherwise provided  in  clause  (1)  of  such  proviso,  provided,  further,  however,  that  the  limitations  on    conversionmaybewaivedbytheHolderupon,attheelectionoftheHolder,notlessthan61 dayspriornoticetotheBorrower,andtheprovisionsoftheconversionlimitationshall continue to apply until such 61st day (or such later date,as determined by the Holder, as may be specified insuchnoticeofwaiver).ThenumberofsharesofCommonStocktobeissueduponeach conversionofthisNoteshallbedeterminedbydividingtheConversionAmount(asdefined below)bytheapplicableConversionPricethenineffectonthedatespecifiedinthenoticeof conversion,intheformattachedheretoasExhibitA(theNoticeofConversion),deliveredto theBorrowerbytheHolderinaccordancewithSection1.4below;providedthattheNoticeof Conversionissubmittedbyfacsimileore-mail(orbyothermeansresultingin,orreasonably expectedtoresultin,notice)totheBorrowerbefore6:00p.m.,NewYork,NewYorktimeon suchconversiondate(theConversionDate).ThetermConversionAmountmeans,with 2  respecttoanyconversionofthisNote,thesumof(1)theprincipalamountofthisNotetobe convertedinsuchconversionplus(2)attheHoldersoption,accruedandunpaidinterest,ifany, onsuchprincipalamountattheinterestratesprovidedinthisNotetotheConversionDate,plus (3)attheHoldersoption,DefaultInterest,ifany,ontheamountsreferredtointheimmediately preceding clauses(1)and/or(2)plus(4)attheHoldersoption,any amountsowedtotheHolder pursuant to Sections 1.3 and 1.4(g) hereof.  1.2 Conversion Price.  (a)CalculationofConversionPrice. Theconversionprice(the ConversionPrice)shallequaltheVariableConversionPrice(asdefinedherein)(subjectto equitable  adjustments  for  stock  splits,  stock  dividends  or  rights  offerings  by  the  Borrower relatingtotheBorrowerssecuritiesorthesecuritiesofanysubsidiaryoftheBorrower, combinations,recapitalization,reclassifications,extraordinarydistributionsandsimilarevents). The"VariableConversionPrice"shallmean50%multipliedbytheMarketPrice(asdefined herein)(representingadiscountrateof50%).MarketPricemeanstheaverageofthelowest three(3)TradingPrices(asdefinedbelow)fortheCommonStockduringtheten(10)Trading DayperiodendingonthelatestcompleteTradingDaypriortotheConversionDate.Trading Pricemeans,foranysecurityasofanydate,theclosingbidpriceontheOver-the-Counter BulletinBoard,orapplicabletradingmarket(theOTCBB)asreportedbyareliablereporting service (Reporting Service) designated by theHolder (i.e.Bloomberg) or, if the OTCBB is not theprincipal  tradingmarket  forsuchsecurity,theclosingbidpriceof  suchsecurityon  the principalsecuritiesexchangeortradingmarketwheresuchsecurityislistedortradedor,ifno closing bid price of suchsecurity is available in any of the foregoing manners, the average of the closingbidpricesofanymarketmakersforsuchsecuritythatarelistedinthepinksheetsby theNationalQuotationBureau,Inc.IftheTradingPricecannotbecalculatedforsuchsecurity onsuchdateinthemannerprovidedabove,theTradingPriceshallbethefairmarketvalueas mutually determined by the Borrowerand the holders of a majority in interest of the Notes being convertedforwhichthecalculationoftheTradingPriceisrequiredinordertodeterminethe ConversionPriceofsuchNotes.TradingDayshallmeananydayonwhichtheCommon StockistradableforanyperiodontheOTCBB,orontheprincipalsecuritiesexchangeorother securities market on which the Common Stock is then being traded. (b)Conversion  PriceDuring  Major  Announcements.Notwithstanding anything contained in Section 1.2(a) to the contrary, in the event the Borrower (i) makes a public announcementthatitintendstoconsolidateormergewithanyothercorporation(otherthana mergerinwhichtheBorroweristhesurvivingorcontinuingcorporationanditscapitalstockis unchanged)orsellortransferallorsubstantiallyalloftheassetsoftheBorroweror(ii)any person,grouporentity(includingtheBorrower)publiclyannouncesatenderoffertopurchase 50%ormoreoftheBorrowersCommonStock(oranyothertakeoverscheme)(thedateofthe announcementreferredtoinclause(i)or(ii)ishereinafterreferredtoasthe   Announcement Date),thentheConversionPriceshall,effectiveupontheAnnouncementDateandcontinuing throughtheAdjustedConversionPriceTerminationDate(asdefinedbelow),beequaltothe lowerof(x)theConversionPricewhichwouldhavebeenapplicableforaConversionoccurring on the Announcement Date and (y) the Conversion Price that would otherwise be in effect. From andaftertheAdjustedConversionPriceTerminationDate,theConversionPriceshallbe 3  determinedassetforthinthisSection1.2(a).Forpurposeshereof,AdjustedConversionPrice Termination  Date  shall  mean,  with  respect  to  any  proposed  transaction  or  tender  offer  (or takeoverscheme)forwhichapublicannouncementascontemplatedbythisSection1.2(b)has beenmade,thedateuponwhichtheBorrower(inthecaseofclause(i)above)ortheperson, group  or  entity  (in  the  case  of  clause  (ii)  above)  consummates  or  publicly  announces  the terminationorabandonmentoftheproposedtransactionortenderoffer(ortakeoverscheme) which caused this Section 1.2(b) to become operative.  1.3 AuthorizedShares.TheBorrowercovenantsthatduringtheperiodthe conversionrightexists,theBorrowerwillreservefromitsauthorizedandunissuedCommon Stockasufficientnumberofshares,freefrompreemptiverights,toprovidefortheissuanceof Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. TheBorrowerisrequiredatalltimestohaveauthorizedandreservedfivetimesthenumberof sharesthatisactuallyissuableuponfullconversionoftheNote(basedontheConversionPrice oftheNotesineffectfromtimetotime)(theReservedAmount).TheReservedAmountshall be increased from time to time in accordance with the Borrowers obligations pursuant to Section 4(g)ofthePurchaseAgreement.TheBorrowerrepresentsthatuponissuance,suchshareswill be duly and validly issued, fully paid and non-assessable.In addition, if the Borrower shall issue anysecuritiesormakeanychangetoitscapitalstructurewhichwouldchangethenumberof sharesofCommonStockintowhichtheNotesshallbeconvertibleatthethencurrent ConversionPrice,theBorrowershallatthesametimemakeproperprovisionsothatthereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptiverights,forconversionoftheoutstanding Notes.TheBorrower(i)acknowledgesthat it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable uponconversionofthisNote,and(ii) agreesthatitsissuanceofthisNoteshallconstitutefull authoritytoitsofficersandagentswhoarechargedwiththedutyofexecutingstockcertificates toexecuteandissuethenecessarycertificatesforsharesofCommonStockinaccordancewith the terms and conditions of this Note. If,atanytimetheBorrowerdoesnotmaintaintheReservedAmountitwillbe considered an Event of Default under Section 3.2 of the Note.  1.4 Method of Conversion. (a)MechanicsofConversion.   SubjecttoSection1.1,thisNotemaybe converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submittingtotheBorroweraNoticeofConversion(by facsimile,e-mailorotherreasonable means of communicationdispatched on the Conversion Date prior to 6:00p.m., New York,New Yorktime)and(B) subjecttoSection1.4(b),surrendering thisNoteattheprincipalofficeofthe Borrower. (b)SurrenderofNoteUponConversion.Notwithstanding anything tothe contrarysetforthherein,uponconversionofthisNoteinaccordancewiththetermshereof,the HoldershallnotberequiredtophysicallysurrenderthisNotetotheBorrowerunlesstheentire unpaid  principal  amount  of  this  Note  is  so  converted.    The  Holder  and  the  Borrower  shall 4  maintain records showing the principal amount so converted and the dates of such conversions or shall use suchothermethod, reasonably satisfactory to theHolderandtheBorrower,soas not to require physical surrender of this Note upon each such conversion.  In the event of any dispute or discrepancy, suchrecords of theBorrowershall,prima facie, becontrolling and determinative in theabsenceofmanifesterror.Notwithstandingtheforegoing,ifanyportionofthisNoteis convertedasaforesaid,theHoldermaynottransferthisNoteunlesstheHolderfirstphysically surrendersthisNotetotheBorrower,whereupontheBorrowerwillforthwithissueanddeliver upon the order of the Holder a new Note 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 unpaidprincipal amount ofthis Note.The Holderand any assignee, by acceptanceof thisNote,acknowledgeandagreethat,byreasonoftheprovisionsofthisparagraph,following conversionofaportionofthisNote,theunpaidandunconvertedprincipalamountofthisNote represented by this Note may be less than the amount stated on the face hereof. (c)PaymentofTaxes.TheBorrowershallnotberequiredtopayany tax whichmaybepayableinrespectofanytransferinvolvedintheissueanddeliveryofsharesof CommonStockorothersecuritiesorpropertyonconversionofthisNoteinanameotherthan thatoftheHolder(orinstreetname),andtheBorrowershallnotberequiredtoissueordeliver anysuchsharesorothersecuritiesorproperty unlessanduntilthepersonorpersons(otherthan theHolderorthecustodianinwhosestreetnamesuchsharesaretobeheldfortheHolders account)requestingtheissuancethereofshallhavepaidtotheBorrowertheamountofany such tax or shall have established to the satisfaction of the Borrower that such tax has been paid. (d)DeliveryofCommonStockUponConversion.Uponreceiptbythe BorrowerfromtheHolderofafacsimiletransmissionore-mail(orotherreasonablemeansof communication)ofaNoticeofConversionmeetingtherequirementsforconversionasprovided inthisSection1.4,theBorrowershallissueanddeliverorcausetobeissuedanddeliveredtoor upontheorderoftheHoldercertificatesfortheCommonStockissuableuponsuchconversion withinthree(3)businessdaysaftersuchreceipt(theDeadline)(and,solelyinthecaseof conversionoftheentireunpaidprincipalamounthereof,surrenderofthisNote)inaccordance with the terms hereof and the Purchase Agreement.. (e)ObligationofBorrowertoDeliverCommonStock.   Uponreceiptby the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of theCommonStockissuableuponsuchconversion,theoutstandingprincipalamountandthe amountofaccruedandunpaidinterestonthisNoteshallbereducedtoreflectsuchconversion, and,unlesstheBorrowerdefaultsonitsobligationsunderthisArticleI,allrightswithrespectto theportionofthisNotebeingsoconvertedshallforthwithterminateexcepttherighttoreceive theCommonStockorothersecurities,cashorotherassets,ashereinprovided,onsuch conversion.    Ifthe  Holdershall  have  given  a  NoticeofConversionas  providedherein,  the BorrowersobligationtoissueanddeliverthecertificatesforCommonStockshallbeabsolute andunconditional,irrespectiveoftheabsenceofanyactionbytheHoldertoenforcethesame, any  waiver  or  consent  with  respect  to  anyprovision  thereof,  the  recoveryof  anyjudgment againstanypersonoranyactiontoenforcethesame,anyfailureordelayintheenforcementof any  other  obligation  of  the  Borrower  to  the  holder  of  record,  or  any  setoff,  counterclaim, recoupment,limitationortermination,oranybreachorallegedbreachbytheHolderofany 5


obligationtotheBorrower,andirrespectiveofanyothercircumstancewhichmightotherwise limitsuchobligationoftheBorrowertotheHolderinconnectionwithsuchconversion.   The ConversionDatespecifiedintheNoticeofConversionshallbetheConversionDatesolongas theNoticeofConversionisreceivedbytheBorrowerbefore6:00p.m.,NewYork,NewYork time, on such date. (f)  DeliveryofCommonStockbyElectronicTransfer.     Inlieuof deliveringphysicalcertificatesrepresentingtheCommonStockissuableuponconversion, providedtheBorrowerisparticipatingintheDepositoryTrustCompany(DTC)Fast Automated   Securities   Transfer   (FAST)   program,   upon   request   of   the   Holder   and   its compliancewiththeprovisionscontainedinSection1.1andinthisSection1.4,theBorrower shalluseitsbesteffortstocauseitstransferagenttoelectronicallytransmittheCommonStock issuableuponconversiontotheHolderbycreditingtheaccountofHoldersPrimeBrokerwith DTC through its Deposit Withdrawal Agent Commission (DWAC) system. (g)FailuretoDeliverCommonStockPriortoDeadline.   Withoutinany way  limiting  the  Holders  right  to  pursue  other  remedies,  including  actual  damages  and/or equitablerelief,thepartiesagreethatifdelivery oftheCommon Stockissuableuponconversion ofthisNoteisnotdeliveredbytheDeadline(otherthanafailureduetothecircumstances describedinSection1.3above,whichfailureshallbegovernedbysuchSection)theBorrower shall  payto  theHolder  $2,000perdayincash,foreachdaybeyond  theDeadlinethat  the Borrowerfailstodeliver suchCommonStock.SuchcashamountshallbepaidtoHolderby the fifth day of the month following the month in which it has accrued or, at the option of the Holder (bywrittennoticetotheBorrowerby thefirstdayofthemonthfollowingthemonthinwhichit hasaccrued),shallbeaddedtotheprincipalamountofthisNote,inwhicheventinterestshall accruethereoninaccordancewiththetermsofthisNoteandsuchadditionalprincipalamount shall  be  convertible  into  Common  Stock  in  accordance  with  the  terms  of  this  Note.    The Borrower agrees that the right to convert is a valuable right to the Holder.  The damages resulting fromafailure,attempttofrustrate,interferencewithsuchconversionrightaredifficultifnot impossibletoqualify.     Accordinglythepartiesacknowledgethattheliquidateddamages provision contained in this Section 1.4(g) are justified  1.5 Concerning  the  Shares.The  shares  of  Common  Stock  issuable  upon conversion of this Note may not be sold or transferred unless(i) such shares are sold pursuant to aneffectiveregistrationstatementundertheActor(ii)theBorroweroritstransferagentshall havebeenfurnishedwithanopinionofcounsel(whichopinionshallbeinform,substanceand scopecustomary foropinionsofcounselincomparabletransactions)totheeffectthattheshares to  be  sold  or  transferred  may  be  sold  or  transferred  pursuant  to  an  exemption  from  such registrationor(iii) suchsharesaresoldortransferredpursuanttoRule144undertheAct(ora successorrule)(Rule144)or(iv)suchsharesaretransferredtoanaffiliate(asdefinedin Rule144)oftheBorrowerwhoagreestosellorotherwisetransferthesharesonly inaccordance withthisSection1.5andwhoisanAccreditedInvestor(asdefinedinthePurchaseAgreement). ExceptasotherwiseprovidedinthePurchaseAgreement(andsubjecttotheremovalprovisions set forth below), until such time as the shares of Common Stock issuable upon conversion of this NotehavebeenregisteredundertheActorotherwisemay besoldpursuanttoRule144without any restrictionastothenumberofsecuritiesasofaparticulardatethatcanthenbeimmediately 6


sold, eachcertificateforshares of Common Stock issuable upon conversion of this Note that has notbeensoincludedinaneffectiveregistrationstatementorthathasnotbeensoldpursuantto an effectiveregistration statement oran exemption that permits removal ofthe legend,shall bear a legend substantially in the following form, as appropriate: NEITHERTHEISSUANCEANDSALEOFTHESECURITIES REPRESENTED   BY   THIS   CERTIFICATE   NOR   THE   SECURITIES   INTO WHICHTHESESECURITIESAREEXERCISABLEHAVEBEEN REGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED,OR APPLICABLESTATESECURITIESLAWS.THESECURITIESMAYNOTBE OFFEREDFORSALE,SOLD,TRANSFERREDORASSIGNED(I)INTHE ABSENCEOF(A)ANEFFECTIVEREGISTRATIONSTATEMENTFORTHE SECURITIESUNDERTHESECURITIESACTOF1933,ASAMENDED,OR(B) ANOPINIONOFCOUNSEL(WHICHCOUNSELSHALLBESELECTEDBY THEHOLDER),INAGENERALLY     ACCEPTABLEFORM,THAT REGISTRATIONISNOTREQUIREDUNDERSAIDACTOR(II)UNLESS SOLD   PURSUANT   TO   RULE   144   OR   RULE   144A   UNDER   SAID   ACT. NOTWITHSTANDINGTHEFOREGOING,THESECURITIESMAYBE PLEDGEDINCONNECTIONWITHABONAFIDEMARGINACCOUNTOR OTHERLOANORFINANCINGARRANGEMENTSECUREDBYTHE SECURITIES. ThelegendsetforthaboveshallberemovedandtheBorrowershallissuetothe Holderanewcertificatethereforefreeofanytransferlegendif(i)theBorroweroritstransfer agentshallhavereceivedanopinionofcounsel,inform,substanceandscopecustomaryfor opinions of counsel incomparable transactions, to the effect that apublic sale ortransfer of such Common Stock may be made without registration under the Act, which opinion shall be accepted bytheCompanysothatthesaleortransferiseffectedor(ii)inthecaseoftheCommonStock issuable upon conversionof this Note, such security is registeredforsale by the Holder under an effectiveregistrationstatementfiledundertheActorotherwisemaybesoldpursuanttoRule 144withoutany restrictionastothenumberofsecuritiesasofaparticulardatethatcanthenbe immediately  sold.    In  the  event  that  the  Company  does  not  accept  the  opinion  of  counsel providedbytheBuyerwithrespecttothetransferofSecuritiespursuanttoanexemptionfrom registration,suchasRule144orRegulationS,attheDeadline,itwillbeconsideredanEventof Default pursuant to Section 3.2 of the Note.  1.6 Effect of Certain Events. (a)EffectofMerger,Consolidation,Etc.AttheoptionoftheHolder,the sale,  conveyanceor  dispositionofall  orsubstantiallyall  of  theassets  ofthe  Borrower,  the effectuation by theBorrower ofa transaction or series of related transactions in which more than 50%ofthevotingpoweroftheBorrowerisdisposedof,ortheconsolidation,mergerorother business  combination  of  the  Borrower  with  or  into  any  other  Person  (as  defined  below)  or PersonswhentheBorrowerisnotthesurvivorshalleither:   (i)bedeemedtobeanEventof Default(asdefinedinArticleIII)pursuanttowhichtheBorrowershallberequiredtopay tothe Holderupontheconsummationofandasaconditiontosuchtransactionanamountequaltothe DefaultAmount(asdefinedinArticleIII)or(ii)betreatedpursuanttoSection1.6(b)hereof. 7  Person   shall   mean   anyindividual,   corporation,   limited   liabilitycompany,   partnership, association, trust or other entity or organization. (b)AdjustmentDuetoMerger,Consolidation,Etc.   If,atanytimewhen thisNoteisissuedandoutstanding andpriortoconversionofalloftheNotes,thereshallbeany merger,consolidation,exchangeofshares,recapitalization,reorganization,orothersimilar event,asaresultofwhichsharesofCommonStockoftheBorrowershallbechangedintothe sameoradifferentnumberofsharesofanotherclassorclassesofstockorsecuritiesofthe Borroweroranotherentity,orincaseofanysaleorconveyanceofallorsubstantially allofthe assets  of  the  Borrower  other  than  in  connection  with  a  plan  of  complete  liquidation  of  the Borrower,thentheHolderofthisNoteshallthereafterhavetherighttoreceiveuponconversion of this Note, uponthe basis and upon thetermsand conditions specifiedhereinand in lieu of the sharesofCommonStockimmediatelytheretoforeissuableuponconversion,suchstock, securitiesorassetswhichtheHolderwouldhavebeenentitledtoreceiveinsuchtransactionhad thisNotebeenconvertedinfullimmediatelypriortosuchtransaction(withoutregardtoany limitationsonconversionsetforthherein),andinanysuchcaseappropriateprovisionsshallbe madewithrespecttotherightsandinterestsoftheHolderofthisNotetotheendthatthe provisionshereof(including,withoutlimitation,provisionsforadjustmentoftheConversion PriceandofthenumberofsharesissuableuponconversionoftheNote)shallthereafterbe applicable,  as  nearly  as  maybe  practicable  in  relation  to  any  securities  or  assets  thereafter deliverableupontheconversionhereof.TheBorrowershallnotaffectany transactiondescribed inthisSection1.6(b)unless(a)itfirstgives,totheextentpracticable,thirty(30)daysprior writtennotice(butinanyeventatleastfifteen(15)dayspriorwrittennotice)oftherecorddate of  the  special  meeting  of  shareholders  to  approve,  or  if  there  is  no  such  record  date,  the consummation    of,    such    merger,    consolidation,    exchange    of    shares,    recapitalization, reorganizationorothersimilareventorsaleofassets(duringwhichtimetheHoldershallbe entitled  to  convert  this  Note)  and  (b)  the  resulting  successor  or  acquiring  entity  (if  not  the Borrower)assumes  bywritteninstrument  theobligations  ofthis  Section1.6(b).Theabove provisionsshallsimilarlyapplytosuccessiveconsolidations,mergers,sales,transfersorshare exchanges. (c)Adjustment Due to Distribution.  If the Borrower shall declare or make anydistributionofitsassets(orrightstoacquireitsassets)toholdersofCommonStockasa dividend,stockrepurchase,bywayofreturnofcapitalorotherwise(includinganydividendor distributiontotheBorrowersshareholdersincashorshares(orrightstoacquireshares)of capitalstockofasubsidiary(i.e.,aspin-off))(aDistribution),thentheHolderofthisNote shall  beentitled,upon  anyconversionofthis  Noteafterthedateofrecordfordetermining shareholders entitled to such Distribution, to receive the amount of such assets which would have beenpayabletotheHolderwithrespecttothesharesofCommonStockissuableuponsuch conversionhadsuchHolderbeentheholderofsuchsharesofCommonStockontherecorddate for the determination of shareholders entitled to such Distribution. (d)AdjustmentDuetoDilutiveIssuance.If,atanytimewhenanyNotes are issued and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no consideration or for aconsiderationpershare(beforedeductionofreasonableexpensesorcommissionsor 8  underwritingdiscountsorallowancesinconnectiontherewith)lessthantheConversionPricein effectonthedateofsuchissuance(ordeemedissuance)ofsuchsharesofCommonStock(a DilutiveIssuance),thenimmediately upontheDilutiveIssuance,theConversionPricewillbe reducedtotheamountoftheconsiderationpersharereceivedbytheBorrowerinsuchDilutive Issuance. TheBorrowershallbedeemedtohaveissuedorsoldsharesofCommon Stock  if  the  Borrower  in  any  manner  issues  or  grants  any  warrants,  rights  or  options  (not including employee stock option plans), whether or not immediately exercisable, to subscribe for ortopurchaseCommonStockorothersecuritiesconvertibleintoorexchangeableforCommon Stock(ConvertibleSecurities)(suchwarrants,rightsandoptionstopurchaseCommonStock orConvertibleSecuritiesarehereinafterreferredtoasOptions)andthepricepersharefor whichCommonStockisissuableupontheexerciseofsuchOptionsislessthantheConversion Pricethen  ineffect,thentheConversionPrice  shall  beequal  tosuch  pricepershare.    For purposesoftheprecedingsentence,thepricepershareforwhichCommonStockisissuable upon  the  exercise  of  such  Options  is  determined  by  dividing  (i)  the  total  amount,  if  any, receivedorreceivablebytheBorrowerasconsiderationfortheissuanceorgrantingofallsuch Options,plustheminimumaggregateamountofadditionalconsideration,ifany,payabletothe Borrower  upon  the  exercise  of  all  such  Options,  plus,  in  the  case  of  Convertible  Securities issuableupontheexerciseofsuchOptions,theminimumaggregateamountofadditional considerationpayableupontheconversionorexchangethereofatthetimesuchConvertible Securitiesfirstbecomeconvertibleorexchangeable,by (ii)themaximumtotalnumberofshares ofCommonStockissuableupontheexerciseofallsuchOptions(assumingfullconversionof ConvertibleSecurities,ifapplicable).NofurtheradjustmenttotheConversionPricewillbe made upon the actual issuance of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities issuable upon exercise of such Options. Additionally,theBorrowershallbedeemedtohaveissuedorsoldshares ofCommonStockiftheBorrowerinanymannerissuesorsellsanyConvertibleSecurities, whether  or  not  immediately  convertible  (other  than  where  the  same  are  issuable  upon  the exerciseofOptions),andthepricepershareforwhichCommonStockisissuableuponsuch conversionorexchangeislessthantheConversionPricethenineffect,thentheConversion Priceshallbeequaltosuchpricepershare.Forthepurposesoftheprecedingsentence,the pricepershareforwhichCommonStockisissuableuponsuchconversionorexchangeis determinedbydividing(i)thetotalamount,ifany,receivedorreceivablebytheBorroweras consideration  for  the  issuance  or  sale  of  all  such  Convertible  Securities,  plus  the  minimum aggregateamountofadditionalconsideration,ifany,payabletotheBorroweruponthe conversionorexchangethereofatthetimesuchConvertibleSecuritiesfirstbecomeconvertible orexchangeable,by(ii)themaximumtotalnumberofsharesofCommonStockissuableupon theconversionorexchangeofallsuchConvertibleSecurities.Nofurtheradjustmenttothe Conversion Price will be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities. (e)Purchase  Rights.If,  at  any  time  when  any  Notes  are  issued  and outstanding,theBorrowerissuesany convertiblesecuritiesorrightstopurchasestock,warrants, securitiesorotherproperty (thePurchaseRights)proratatotherecordholdersofany classof 9  CommonStock,thentheHolderofthisNotewillbeentitledtoacquire,upontheterms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired  if  such  Holder  had  held  the  number  of  shares  of  Common  Stock  acquirable  upon completeconversionofthisNote(withoutregardtoanylimitationsonconversioncontained herein)immediatelybeforethedateonwhicharecordistakenforthegrant,issuanceorsaleof suchPurchaseRightsor,ifnosuchrecordistaken,thedateasofwhichtherecordholdersof Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. (f)  NoticeofAdjustments.Upontheoccurrenceofeachadjustmentor readjustmentoftheConversionPriceasaresultoftheeventsdescribedinthisSection1.6,the Borrower,atitsexpense,shallpromptlycomputesuchadjustmentorreadjustmentandprepare and furnishto theHolderacertificate setting forthsuchadjustment orreadjustment and showing indetailthefactsuponwhichsuchadjustmentorreadjustmentisbased.   TheBorrowershall, uponthewrittenrequestatanytimeoftheHolder,furnishtosuchHolderalikecertificate settingforth(i)suchadjustmentorreadjustment,(ii)theConversionPriceatthetimeineffect and(iii)thenumberofsharesofCommonStockandtheamount,ifany,ofothersecuritiesor property which at the time would be received upon conversion of the Note.  1.7 Trading MarketLimitations.Unlesspermittedby theapplicablerulesand regulations  ofthe  principal  securities  market  on  whichtheCommonStockis  thenlisted  or traded,innoeventshalltheBorrowerissueuponconversionoforotherwisepursuanttothis NoteandtheotherNotesissuedpursuanttothePurchaseAgreementmorethanthemaximum numberofsharesofCommonStockthattheBorrowercanissuepursuanttoanyruleofthe principal  United  Statessecurities  market  on  which  the  Common  Stock  is  then  traded  (the Maximum Share Amount), which shall be 4.99% of the total shares outstanding on the Closing Date(asdefinedinthePurchaseAgreement),subjecttoequitableadjustmentfromtimetotime for stock splits, stock dividends, combinations, capital reorganizations and similar events relating totheCommonStockoccurringafterthedatehereof.   OncetheMaximumShareAmounthas beenissued,iftheBorrowerfailstoeliminateanyprohibitionsunderapplicablelawortherules or  regulations  of  any  stock  exchange,  interdealer  quotation  system  orother  self-regulatory organization with jurisdiction over the Borrower or any of its securities on the Borrowers ability toissuesharesofCommonStockinexcessoftheMaximumShareAmount,inlieuofany furtherrighttoconvertthisNote,thiswillbeconsideredanEventofDefaultunderSection3.3 of the Note.  1.8 StatusasShareholder.   UponsubmissionofaNoticeofConversionbya Holder,(i)thesharescoveredthereby(otherthantheshares,ifany,whichcannotbeissued becausetheirissuancewouldexceedsuchHoldersallocatedportionoftheReservedAmountor MaximumShareAmount)shallbedeemedconvertedintosharesofCommonStockand(ii)the HoldersrightsasaHolderofsuchconvertedportionofthisNoteshallceaseandterminate, exceptingonlytherighttoreceivecertificatesforsuchsharesofCommonStockandtoany remediesprovidedhereinorotherwiseavailableatlaworinequitytosuchHolderbecauseofa failurebytheBorrowertocomplywiththetermsofthisNote.Notwithstandingtheforegoing, ifaHolderhasnotreceivedcertificatesforallsharesofCommonStockpriortothetenth(10th) businessdayaftertheexpirationoftheDeadlinewithrespecttoaconversionofanyportionof thisNoteforanyreason,then(unlesstheHolderotherwiseelectstoretainitsstatusasaholder 10  of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of thisNotewithrespecttosuchunconvertedportionsofthisNoteandtheBorrowershall,assoon aspracticable,returnsuchunconvertedNotetotheHolderor,iftheNotehasnotbeen surrendered, adjust its records to reflect that such portion of this Note has not been converted.In allcases,theHoldershallretainallofitsrightsandremedies(including,withoutlimitation,(i) therighttoreceiveConversionDefaultPaymentspursuanttoSection1.3totheextentrequired thereby forsuchConversionDefaultandany subsequentConversionDefaultand(ii)therightto have the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrowers failure to convert this Note.  1.9 Prepayment.   Notwithstandinganythingtothecontrarycontainedinthis Note,atany timeduringtheperiodbeginningontheIssueDateandendingonthedatewhichis onehundred  twenty(120)days  followingtheissuedate,the  Borrower  shall  have  theright, exercisable on not less than three(3)Trading Days prior written notice to the Holderof theNote toprepaytheoutstandingNote(principalandaccruedinterest),infull,inaccordancewiththis Section1.9.   Anynoticeofprepaymenthereunder(anOptionalPrepaymentNotice)shallbe delivered  to  the  Holder  of  the  Note  at  its  registered  addresses  and  shall  state:  (1)  that  the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be notmorethanthree(3)TradingDaysfromthedateoftheOptionalPrepaymentNotice.Onthe datefixedforprepayment(theOptionalPrepaymentDate),theBorrowershallmakepayment oftheOptionalPrepaymentAmount(asdefinedbelow)toorupontheorderoftheHolderas specifiedbytheHolderinwritingtotheBorroweratleastone(1)businessdaypriortothe OptionalPrepaymentDate.IftheBorrowerexercisesitsrighttoprepay theNote,theBorrower shallmakepaymenttotheHolderofanamountincash(theOptionalPrepaymentAmount) equalto140%,multipliedby thesumof:(w)thethenoutstandingprincipalamountofthisNote plus(x) accruedandunpaidinterestontheunpaidprincipalamountofthisNotetotheOptional  PrepaymentDateplus(y)DefaultInterest,ifany,ontheamountsreferredtoinclauses(w)and (x)plus(z)anyamountsowedtotheHolderpursuanttoSections1.3and1.4(g)hereof.Ifthe BorrowerdeliversanOptionalPrepaymentNoticeandfailstopaytheOptionalPrepayment AmountduetotheHolderoftheNotewithintwo(2)businessdaysfollowingtheOptional PrepaymentDate,theBorrowershallforeverforfeititsrighttoprepaytheNotepursuanttothis Section 1.9. Notwithstandinganytothecontrarystatedelsewhereherein,atanytimeduring theperiodbeginning   onehundredtwenty-one(121)daysfromtheissuedateandendingone hundred eighty (180) days following the issue date, the Borrower shall have the right, exercisable onnotlessthanthree(3)TradingDayspriorwrittennoticetotheHolderoftheNotetoprepay the outstanding Note(principal and accrued interest), in full, in accordancewith this Section 1.9. Any notice of prepayment hereunder (an Optional Prepayment Notice) shall be delivered to the HolderoftheNoteatitsregisteredaddressesandshallstate:(1)thattheBorrowerisexercising itsrighttoprepaytheNote,and(2)thedateofprepaymentwhichshallbenotmorethanthree (3)TradingDays  from  thedateofthe  Optional  Prepayment  Notice.    Onthedatefixed  for prepayment(theOptionalPrepaymentDate),theBorrowershallmakepaymentoftheSecond OptionalPrepaymentAmount(asdefinedbelow)toorupontheorderoftheHolderasspecified bytheHolderinwritingtotheBorroweratleastone(1)businessdaypriortotheOptional PrepaymentDate.IftheBorrowerexercisesitsrighttoprepaytheNote,theBorrowershall 11  makepaymenttotheHolderofanamountincash(theSecondOptionalPrepaymentAmount) equalto150%,multipliedby thesumof:(w)thethenoutstandingprincipalamountofthisNote plus(x) accruedandunpaidinterestontheunpaidprincipalamountofthisNotetotheOptional PrepaymentDateplus(y)DefaultInterest,ifany,ontheamountsreferredtoinclauses(w)and (x)plus(z)anyamountsowedtotheHolderpursuanttoSections1.3and1.4(g)hereof.Ifthe BorrowerdeliversanOptionalPrepaymentNoticeandfailstopaytheSecondOptional PrepaymentAmountduetotheHolderoftheNotewithintwo(2)businessdaysfollowingthe Optional  Prepayment  Date,  the  Borrower  shallforever  forfeit  its  right  to  prepay  the  Note pursuant to this Section 1.9. Aftertheexpirationofonehundredeighty(180)followingthedateoftheNote, the Borrower shall have no right of prepayment. ARTICLE II.CERTAIN COVENANTS  2.1 DistributionsonCapitalStock.   SolongastheBorrowershallhaveany obligationunderthisNote,theBorrowershallnotwithouttheHolderswrittenconsent(a)pay, declare  or  set  apart  for  such  payment,  any  dividend  or  other  distribution  (whether  in  cash, property or other securities) on shares of capital stock other than dividends on shares of Common StocksolelyintheformofadditionalsharesofCommonStockor(b)directlyorindirectlyor throughanysubsidiarymakeanyotherpaymentordistributioninrespectofitscapitalstock except for distributions pursuant to any shareholders rights plan which is approved by a majority of the Borrowers disinterested directors.  2.2 Restriction on Stock Repurchases.  So long as the Borrower shall have any obligationunderthisNote,theBorrowershallnotwithouttheHolderswrittenconsentredeem, repurchaseorotherwiseacquire(whetherforcashorinexchangeforproperty orothersecurities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or options to purchase or acquire any such shares.  2.3 Borrowings.Solong astheBorrowershallhaveany obligationunderthis Note,theBorrowershallnot,withouttheHolderswrittenconsent,create,incur,assume guarantee,endorse,contingentlyagreetopurchaseorotherwisebecomeliableuponthe obligationofanyperson,firm,partnership,jointventureorcorporation,exceptbythe endorsement of negotiable instruments for deposit or collection, or suffer to exist any liability for borrowedmoney,except(a)borrowingsinexistenceorcommittedonthedatehereofandof whichtheBorrowerhasinformedHolderinwritingpriortothedatehereof,(b)indebtednessto tradecreditorsorfinancialinstitutionsincurredintheordinarycourseofbusinessor(c) borrowings, the proceeds of which shall be used to repay this Note.  2.4 SaleofAssets.SolongastheBorrowershallhaveanyobligationunder thisNote,theBorrowershallnot,withouttheHolderswrittenconsent,sell,leaseorotherwise disposeofanysignificantportionofitsassetsoutsidetheordinarycourseofbusiness.Any consenttothedispositionofany assetsmay beconditionedonaspecifieduseoftheproceedsof disposition. 12    2.5 AdvancesandLoans.SolongastheBorrowershallhaveanyobligation underthisNote,theBorrowershallnot,withouttheHolderswrittenconsent,lendmoney,give creditormakeadvancestoanyperson,firm,jointventureorcorporation,including,without limitation,  officers,  directors,  employees,  subsidiaries  and  affiliates  of  the  Borrower,  except loans,  credits  or  advances  (a)  in  existence  or  committed  on  the  date  hereof  and  which  the BorrowerhasinformedHolderinwritingpriortothedatehereof,(b)madeintheordinary course of business or (c) not in excess of $100,000. ARTICLE III.EVENTS OF DEFAULT If any of the following events of default (each, an Event of Default) shall occur:  3.1 FailuretoPayPrincipalorInterest.TheBorrowerfailstopaythe principalhereoforinterestthereonwhendueonthisNote,whetheratmaturity,upon acceleration or otherwise.  3.2 ConversionandtheShares.     TheBorrowerfailstoissuesharesof CommonStocktotheHolder(orannouncesorthreatensinwritingthatitwillnothonorits obligation  to  do  so)  upon  exercise  bythe  Holder  of  the  conversion  rights  of  the  Holder  in accordancewiththetermsofthisNote,failstotransferorcauseitstransferagenttotransfer (issue)(electronically orincertificatedform)anycertificateforsharesofCommonStockissued to the Holder upon conversion of or otherwise pursuant to this Note as andwhen required by this Note,theBorrowerdirectsitstransferagentnottotransferordelays,impairs,and/orhindersits transferagentintransferring(orissuing)(electronicallyorincertificatedform)anycertificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not toremoveorimpairs,delays,and/orhindersitstransferagentfromremoving)anyrestrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any sharesofCommonStockissuedtotheHolderuponconversionoforotherwisepursuanttothis Note as and when required by this Note (or makes any written announcement, statement or threat thatitdoesnotintendtohonortheobligationsdescribedinthisparagraph)andanysuchfailure shall  continue  uncured  (or  any  written  announcement,  statement  or  threat  not  to  honor  its obligationsshallnotberescindedinwriting)forthree(3)businessdaysaftertheHoldershall havedeliveredaNoticeofConversion.ItisanobligationoftheBorrowertoremaincurrentin itsobligationstoitstransferagent.ItshallbeaneventofdefaultofthisNote,ifaconversionof thisNoteisdelayed,hinderedorfrustratedduetoabalanceowedby theBorrowertoitstransfer agent.IfattheoptionoftheHolder,theHolderadvancesanyfundstotheBorrowerstransfer agent in order toprocessa conversion, suchadvanced fundsshall bepaid by theBorrower tothe Holder within forty eight (48) hours of a demand from the Holder.  3.3 BreachofCovenants.   TheBorrowerbreachesanymaterialcovenantor othermaterialtermorconditioncontainedinthisNoteandanycollateraldocumentsincluding butnotlimitedtothePurchaseAgreementandsuchbreachcontinuesforaperiodoften(10) days after written notice thereof to the Borrower from the Holder. 13    3.4 Breach   of   Representations   and   Warranties.      Any   representation   or warrantyoftheBorrowermadehereinorinanyagreement,statementorcertificategivenin writingpursuantheretoorinconnectionherewith(including,withoutlimitation,thePurchase Agreement),shallbefalseormisleadinginanymaterialrespectwhenmadeandthebreachof whichhas(orwiththepassageoftimewillhave)amaterialadverseeffectontherightsofthe Holder with respect to this Note or the Purchase Agreement.  3.5 ReceiverorTrustee.TheBorroweroranysubsidiaryoftheBorrower shallmakeanassignmentforthebenefitofcreditors,orapply fororconsenttotheappointment 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.  3.6 Judgments.Any money judgment, writ or similarprocessshall beentered orfiledagainsttheBorroweroranysubsidiaryoftheBorroweroranyofitspropertyorother assetsformorethan$50,000,andshallremainunvacated,unbondedorunstayedforaperiodof twenty  (20)  days  unless  otherwise  consented  to  by  the  Holder,  which  consent  will  not  be unreasonably withheld.  3.7 Bankruptcy. Bankruptcy,insolvency,reorganization   or   liquidation proceedingsorotherproceedings,voluntaryorinvoluntary,forreliefunderanybankruptcylaw or  any  law  for  the  relief  of  debtors  shall  be  instituted  by  or  against  the  Borrower  or  any subsidiary of the Borrower.  3.8 Delisting  of  Common  Stock.    The  Borrower  shall  fail  to  maintain  the listing  of  the  Common  Stock  on  at  least  one  of  the  OTCBB  or  an  equivalent  replacement exchange,theNasdaq  National  Market,theNasdaqSmallCapMarket,theNew  York  Stock Exchange, or the American Stock Exchange.  3.9 FailuretoComplywiththeExchangeAct.TheBorrowershallfailto comply withthereportingrequirementsoftheExchangeAct;and/ortheBorrowershallceaseto be subject to the reporting requirements of the Exchange Act. 3.10     Liquidation.Anydissolution,liquidation,orwindingupofBorroweror any substantial portion of its business.  3.11     Cessation of Operations. AnycessationofoperationsbyBorroweror Borroweradmitsitisotherwisegenerallyunabletopayitsdebtsassuchdebtsbecomedue, provided, however, that any disclosure of the Borrowers ability to continue as a going concern shall not be an admission that the Borrower cannot pay its debts as they become due.  3.12     Maintenance of Assets. ThefailurebyBorrowertomaintainany material intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future). 14    3.13     Financial Statement Restatement. The   restatement   of   any   financial statements filed by theBorrower with the SEC for any date or period fromtwoyears prior to the Issue  Date  of  this  Note  and  until  this  Note  is  no  longer  outstanding,  if  the  result  of  such restatement  would,  by  comparison  to  the  unrestated  financial  statement,  have  constituted  a materialadverseeffectontherightsoftheHolderwithrespecttothisNoteorthePurchase Agreement.  3.14     Reverse Splits. TheBorrowereffectuatesareversesplitofits Common Stock without twenty (20) days prior written notice to the Holder. 3.15     Replacement of Transfer Agent. In the event that the Borrower proposes to replace  its  transfer  agent,  the  Borrower  fails  to  provide,  prior  to  the  effective  date  of  such replacement,  a  fully  executed  Irrevocable  Transfer  Agent  Instructions  in  a  form  as  initially deliveredpursuanttothePurchaseAgreement(includingbutnotlimitedtotheprovisionto irrevocablyreservesharesofCommonStockintheReservedAmount)signedbythesuccessor transfer agent to Borrower and the Borrower. 3.16     Cross-Default.Notwithstandinganythingtothecontrary containedinthis Noteortheotherrelatedorcompaniondocuments,abreachordefaultbytheBorrowerofany covenantorothertermorconditioncontainedinanyoftheOtherAgreements,afterthepassage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered adefaultunderthisNoteandtheOtherAgreements,inwhicheventtheHoldershallbeentitled (butinnoeventrequired)toapplyallrightsandremediesoftheHolderunderthetermsofthis NoteandtheOtherAgreementsbyreasonofadefaultundersaidOtherAgreementor hereunder.OtherAgreementsmeans,collectively,allagreementsandinstrumentsbetween, amongorby:(1)theBorrower,and,orforthebenefitof,(2) theHolderandanyaffiliateofthe Holder,  including,  without  limitation,  promissorynotes;  provided,  however,  the  term  Other AgreementsshallnotincludetherelatedorcompaniondocumentstothisNote.   Eachofthe loan  transactions  will  becross-defaultedwitheachotherloantransactionandwithall  other existing and future debt of Borrower to the Holder. Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solelywithrespecttofailuretopaytheprincipalhereoforinterestthereonwhendueatthe Maturity Date),theNoteshallbecomeimmediately dueandpayableandtheBorrowershallpay totheHolder,infullsatisfactionofitsobligationshereunder,anamountequaltotheDefault Sum (as defined herein).UPON THE OCCURRENCE AND DURING THE CONTINUATION OFANYEVENTOFDEFAULTSPECIFIEDINSECTION3.2,THENOTESHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THEHOLDER,INFULLSATISFACTIONOFITSOBLIGATIONSHEREUNDER,AN AMOUNTEQUALTO:(Y)THEDEFAULTSUM(ASDEFINEDHEREIN);MULTIPLIED BY(Z)TWO(2).UpontheoccurrenceandduringthecontinuationofanyEventofDefault specifiedinSections3.1(solelywithrespecttofailuretopaytheprincipalhereoforinterest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 oruponacceleration),3.3,3.4,3.6,3.8,3.9,3.11,3.12,3.13,3.14,and/or3.15exercisable 15  throughthedeliveryofwrittennoticetotheBorrowerbysuchHolders(theDefaultNotice), andupontheoccurrenceofanEventofDefaultspecifiedtheremainingsectionsofArticlesIII (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section3,1hereof),theNoteshallbecomeimmediately dueandpayableandtheBorrowershall pay totheHolder,infullsatisfactionofitsobligationshereunder,anamountequaltothegreater of(i)150%timesthesumof(w)thethenoutstandingprincipalamountofthisNoteplus(x) accruedandunpaidinterestontheunpaidprincipalamountofthisNotetothedateofpayment (theMandatoryPrepaymentDate)plus(y)DefaultInterest,ifany,ontheamountsreferredto inclauses(w)and/or(x)plus(z)anyamountsowedtotheHolderpursuanttoSections1.3and 1.4(g)hereof(thethenoutstanding principalamountofthisNotetothedateofpaymentplusthe amountsreferredtoinclauses(x),(y)and(z)shallcollectively beknownastheDefaultSum) or(ii)theparityvalueoftheDefaultSumtobeprepaid,whereparityvaluemeans(a)the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to suchDefaultSuminaccordancewithArticleI,treatingtheTradingDayimmediatelypreceding the  MandatoryPrepayment  Date  as  the  Conversion  Date  for  purposes  of  determining  the lowestapplicableConversionPrice,unlesstheDefaultEventarisesasaresultofabreachin respectofaspecificConversionDateinwhichcasesuchConversionDateshallbethe ConversionDate),multipliedby (b)thehighestClosingPricefortheCommonStockduringthe  period beginning on the date of first occurrence of the Event of Default and ending one day prior to  the  Mandatory  Prepayment  Date  (the  Default  Amount)  and  all  other  amounts  payable hereunder  shall  immediately  become  due  and  payable,  all  without  demand,  presentment  or notice,  all  ofwhichherebyareexpresslywaived,togetherwithall  costs,including,without limitation,legalfeesandexpenses,ofcollection,andtheHoldershallbeentitledtoexerciseall other rights and remedies available at law or in equity. IftheBorrowerfailstopaytheDefaultAmountwithinfive(5)businessdaysofwrittennotice thatsuchamountisdueandpayable,thentheHoldershallhavetherightatany time,solongas the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares),to requiretheBorrower, uponwritten notice, toimmediately issue,in lieu of theDefault Amount,thenumberofsharesofCommonStockoftheBorrowerequaltotheDefaultAmount divided by the Conversion Price then in effect. ARTICLE IV.MISCELLANEOUS  4.1 FailureorIndulgenceNotWaiver.Nofailureordelayonthepartofthe Holderin  theexercise  ofanypower,right  or  privilege  hereundershall  operateas  a  waiver thereof,norshallanysingleorpartialexerciseofanysuchpower,rightorprivilegepreclude other  or  further  exercise  thereof  or  of  any  other  right,  power  or  privileges.    All  rights  and remedies  existinghereunderarecumulativeto,  andnot  exclusiveof,anyrights  orremedies otherwise available.  4.2 Notices.Allnotices,demands,requests,consents,approvals,andother communicationsrequiredorpermittedhereundershallbeinwritingand,unlessotherwise specifiedherein,shallbe(i)personallyserved,(ii)depositedinthemail,registeredorcertified, returnreceiptrequested,postageprepaid,(iii)deliveredbyreputableaircourierservicewith chargesprepaid,or(iv)transmittedbyhanddelivery,telegram,orfacsimile,addressedasset 16  forthbelowortosuchotheraddressassuchpartyshallhavespecifiedmostrecentlybywritten notice.Any noticeorothercommunicationrequiredorpermittedtobegivenhereundershallbe deemedeffective(a)uponhanddeliveryordeliverybyfacsimile,withaccurateconfirmation generatedbythetransmittingfacsimilemachine,attheaddressornumberdesignatedbelow(if delivered on a business day during normal business hours where such notice is to be received), or thefirstbusinessdayfollowingsuchdelivery(ifdeliveredotherthanonabusinessdayduring normalbusinesshourswheresuchnoticeistobereceived)or(b)onthesecondbusinessday following  the  date  ofmailing  by  express  courier  service,  fully  prepaid,  addressed  to  such address,oruponactualreceiptofsuchmailing,whichevershallfirstoccur.   Theaddressesfor such communications shall be: If to the Borrower, to: FORCE ENERGY CORP. 1400 16TH Street - Suite 400 Denver, CO 80202 Attn: TIM DEHERRERA, Chief Executive  Officer facsimile: With a copy by fax onlyto (which copy shall not constitute notice): [enter name of law firm] Attn: [attorney name] [enter address line 1] [enter city, state, zip] facsimile: [enter fax number] If to the Holder: ASHER ENTERPRISES, INC. 1 Linden Pl., Suite 207 Great Neck, NY. 11021 Attn: Curt Kramer, President facsimile: 516-498-9894 With a copy by fax onlyto (which copy shall not constitute notice): Naidich Wurman Birnbaum & Maday, LLP 80 Cuttermill Road, Suite 410 Great Neck, NY 11021 Attn: Bernard S. Feldman, Esq. facsimile: 516-466-3555  4.3 Amendments.ThisNoteandanyprovisionhereofmayonlybeamended byaninstrumentinwritingsignedbytheBorrowerandtheHolder.   ThetermNoteandall referencethereto,asusedthroughoutthisinstrument,shallmeanthisinstrument(andtheother NotesissuedpursuanttothePurchaseAgreement)asoriginallyexecuted,oriflateramendedor supplemented, then as so amended or supplemented. 17    4.4 Assignability.    This  Note  shall  be  binding  upon  the  Borrower  and  its successorsandassigns,andshallinuretobethebenefitoftheHolderanditssuccessorsand assigns.Each transferee of this Note must be an accredited investor (as defined in Rule 501(a) ofthe1933Act).NotwithstandinganythinginthisNotetothecontrary,thisNotemaybe pledgedascollateralinconnectionwithabonafidemarginaccountorotherlending arrangement.  4.5 CostofCollection.IfdefaultismadeinthepaymentofthisNote,the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys fees.  4.6 GoverningLaw.     ThisNoteshallbegovernedbyandconstruedin accordancewiththelawsoftheStateofNewYorkwithoutregardtoprinciplesofconflictsof laws.     Anyactionbroughtbyeitherpartyagainsttheotherconcerningthetransactions contemplated by this Note shall be brought only in the state courts of NewYork or in the federal courtslocatedinthestateandcountyofNassau.   ThepartiestothisNoteherebyirrevocably waiveanyobjectiontojurisdictionandvenueofanyactioninstitutedhereunderandshallnot assertanydefensebasedonlackofjurisdictionorvenueorbaseduponforumnonconveniens. TheBorrowerandHolderwaivetrialbyjury.Theprevailingpartyshallbeentitledtorecover fromtheotherpartyitsreasonableattorney'sfeesandcosts.Intheeventthatanyprovisionof thisNoteoranyotheragreementdeliveredinconnectionherewithisinvalidorunenforceable underanyapplicablestatuteorruleoflaw,thensuchprovisionshallbedeemedinoperativeto theextentthatitmayconflicttherewithandshallbedeemedmodifiedtoconformwithsuch statuteorruleoflaw.Any suchprovisionwhichmayproveinvalidorunenforceableunderany law shall notaffect thevalidity orenforceability of any other provision ofany agreement.Each party hereby irrevocably waives personal service of process and consents to process being served inanysuit,actionorproceedinginconnectionwiththisAgreementoranyotherTransaction Documentbymailingacopythereofviaregisteredorcertifiedmailorovernightdelivery(with evidenceofdelivery)tosuchparty attheaddressineffectfornoticestoitunderthisAgreement andagreesthatsuchserviceshallconstitutegoodandsufficientserviceofprocessandnotice thereof.Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  4.7 CertainAmounts.     WheneverpursuanttothisNotetheBorroweris requiredtopayanamountinexcessoftheoutstandingprincipalamount(ortheportionthereof requiredtobepaidatthattime)plusaccruedandunpaidinterestplusDefaultInterestonsuch interest,theBorrowerandtheHolderagreethattheactualdamagestotheHolderfromthe receiptofcashpaymentonthisNotemay bedifficulttodetermineandtheamounttobesopaid bytheBorrowerrepresentsstipulateddamagesandnotapenaltyandisintendedtocompensate theHolderinpartforlossoftheopportunitytoconvertthisNoteandtoearnareturnfromthe sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the pricepaidforsuchsharespursuanttothis Note.TheBorrowerandtheHolderhereby agreethat suchamountofstipulateddamagesisnotplainlydisproportionatetothepossiblelosstothe HolderfromthereceiptofacashpaymentwithouttheopportunitytoconvertthisNoteinto shares of Common Stock. 18    4.8 PurchaseAgreement.ByitsacceptanceofthisNote,each partyagreesto be bound by the applicable terms of the Purchase Agreement.  4.9 Notice  of  Corporate  Events.    Except  as  otherwise  provided  below,  the HolderofthisNoteshallhavenorightsasaHolderofCommonStockunlessandonlytothe extent that it converts this Note into Common Stock. The Borrower shall provide the Holder with priornotificationofanymeetingoftheBorrowersshareholders(andcopiesofproxymaterials andotherinformationsenttoshareholders).   IntheeventofanytakingbytheBorrowerofa record of its shareholdersfor the purpose of determining shareholders who are entitled to receive paymentofanydividendorotherdistribution,anyrighttosubscribefor,purchaseorotherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the purpose of determiningshareholderswhoareentitledtovoteinconnectionwithany proposedsale,leaseor conveyanceofallorsubstantiallyalloftheassetsoftheBorroweroranyproposedliquidation, dissolutionorwindingupoftheBorrower,theBorrowershallmailanoticetotheHolder,at leasttwenty(20)dayspriortotherecorddatespecifiedtherein(orthirty(30)dayspriortothe consummationofthetransactionorevent,whicheverisearlier),ofthedateonwhichanysuch recordistobetakenforthepurposeofsuchdividend,distribution,rightorotherevent,anda briefstatementregardingtheamountandcharacterofsuchdividend,distribution,rightorother event to the extent known at such time.TheBorrower shall makea publicannouncement of any eventrequiringnotificationtotheHolderhereundersubstantiallysimultaneouslywiththe notification to the Holder in accordance with the terms of this Section 4.9. 4.10     Remedies.     TheBorroweracknowledgesthatabreachbyitofits obligations  hereunder  will  cause  irreparable  harm  to  the  Holder,  byvitiating  the  intent  and purposeofthetransactioncontemplatedhereby.Accordingly,theBorroweracknowledgesthat the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holdershallbeentitled,inadditiontoallotheravailableremediesatlaworinequity,andin additiontothepenaltiesassessableherein,toaninjunctionorinjunctionsrestraining,preventing orcuringanybreachofthisNoteandtoenforcespecificallythetermsandprovisionsthereof, withoutthenecessityofshowingeconomiclossandwithoutanybondorothersecuritybeing required. INWITNESS WHEREOF,Borrower has caused this Note to be signedin its name by its duly authorized officer this September 12, 2012. FORCE ENERGY CORP. By: _______________________________ TIM DEHERRERA Chief Executive  Officer 19  EXHIBIT A NOTICE OF CONVERSION Theundersignedhereby electstoconvert$_________________principalamount oftheNote(definedbelow)intothatnumberofsharesofCommonStocktobeissuedpursuant to  theconversionoftheNote  (CommonStock)  as  set  forthbelow,  ofFORCEENERGY CORP.,aNevadacorporation(theBorrower)accordingtotheconditionsoftheconvertible noteoftheBorrowerdatedasofSeptember12,2012(theNote),asofthedatewrittenbelow. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. Box Checked as to applicable instructions:  [ ] TheBorrowershallelectronicallytransmittheCommonStockissuablepursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTCthroughitsDepositWithdrawalAgentCommissionsystem(DWAC Transfer). Name of DTC Prime Broker: Account Number:  [  ] Theundersignedherebyrequeststhatthe   Borrowerissue   acertificateor certificatesforthenumberofsharesofCommonStocksetforthbelow(which numbersarebasedontheHolderscalculationattachedhereto)inthename(s) specified immediately below or, if additional space is necessary, on an attachment hereto: ASHER ENTERPRISES, INC. 1 Linden Pl., Suite 207 Great Neck, NY. 11021 Attention: Certificate Delivery (516) 498-9890  Date of Conversion: _____________  Applicable Conversion Price: $____________ Number of Shares of Common Stock to be Issued  Pursuant to Conversion of the Notes: ______________ Amount of Principal Balance Due remaining  Under the Note after this conversion: ______________ ASHER ENTERPRISES, INC. By:_____________________________ Name:Curt Kramer Title:President Date:  ______________ 1 Linden Pl., Suite 207 Great Neck, NY. 11021 20