| Section | 1. | Definitions.      Capitalized terms used and not otherwise defined herein shall have the      meanings set forth in that certain Securities Purchase Agreement (the      "Purchase Agreement"), dated October 27, 2005, between the Company and the      purchaser signatory thereto. |
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| Section | 2. | Exercise. |
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|   | 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 States bank. |
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|   | b) | Exercise      Price. The exercise price of the Common Stock under this Warrant shall be      $1.75, subject to adjustment hereunder (the "Exercise    Price"). |
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|   | c) | Cashless      Exercise. In the event that there is no effective registration statement      covering the resale of the shares underlying this Warrant, 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: |
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|   | (A)      = | the      VWAP on the Trading Day immediately preceding the date of such      election; |
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|   | (B)      = | the      Exercise Price of this Warrant, as adjusted;and |
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|   | (X)      = | the      number of Warrant Shares issuable upon exercise of this Warrant in      accordance with the terms of this Warrant by means of a cash exercise      rather than a cashless exercise. |
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|   | 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      4.99% 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 of waiver). |
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|   | e) | Mechanics      of Exercise. |
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|   | 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. |
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|   | 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. |
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|   | 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. |
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|   | 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. |
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| Section      3. | Certain      Adjustments. |
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|   | 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 or any Subsidiary thereof, as applicable, 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. |
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|   | 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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|   | i. | Adjustment      to Exercise Price. Whenever the Exercise Price is adjusted pursuant to      this Section 3, the Company shall promptly mail to each Holder a notice      setting forth the Exercise Price after such adjustment and setting forth a      brief statement of the facts requiring such adjustment. If the Company      issues a variable rate security, despite the prohibition thereon in the      Purchase Agreement, the Company shall be deemed to have issued Common      Stock or Common Stock Equivalents at the lowest possible conversion or      exercise price at which such securities may be converted or exercised in      the case of a Variable Rate Transaction (as defined in the Purchase      Agreement), or the lowest possible adjustment price in the case of an MFN      Transaction (as defined in the Purchase  Agreement. |
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|   | ii. | Notice      to Allow Exercise by Holder. If (A) the Company shall declare a dividend      (or any other distribution) on the Common Stock; (B) the Company shall      declare a special nonrecurring cash dividend on or a redemption of the      Common Stock; (C) the Company shall authorize the granting to all holders      of the Common Stock rights or warrants to subscribe for or purchase any      shares of capital stock of any class or of any rights; (D) the approval of      any stockholders of the Company shall be required in connection with any      reclassification of the Common Stock, any consolidation or merger to which      the Company is a party, any sale or transfer of all or substantially all      of the assets of the Company, of any compulsory share exchange whereby the      Common Stock is converted into other securities, cash or property; (E) the      Company shall authorize the voluntary or involuntary dissolution,      liquidation or winding up of the affairs of the Company; then, in each      case, the Company shall cause to be mailed to the Holder at its last      addresses as it shall appear upon the Warrant Register of the Company, at      least 20 calendar days prior to the applicable record or effective date      hereinafter specified, a notice stating (x) the date on which a record is      to be taken for the purpose of such dividend, distribution, redemption,      rights or warrants, or if a record is not to be taken, the date as of      which the holders of the Common Stock of record to be entitled to such      dividend, distributions, redemption, rights or warrants are to be      determined or (y) the date on which such reclassification, consolidation,      merger, sale, transfer or share exchange is expected to become effective      or close, and the date as of which it is expected that holders of the      Common Stock of record shall be entitled to exchange their shares of the      Common Stock for securities, cash or other property deliverable upon such      reclassification, consolidation, merger, sale, transfer or share exchange;      provided, that the failure to mail such notice or any defect therein or in      the mailing thereof shall not affect the validity of the corporate action      required to be specified in such notice. The Holder is entitled to      exercise this Warrant during the 20-day period commencing the date of such      notice to the effective date of the event triggering such      notice. |
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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) | Exempt      Issuance. Notwithstanding the foregoing, no adjustments, Alternate      Consideration nor notices shall be made, paid or issued under this Section      3 in respect of an ExemptIssuance. |
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|   | h) | 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. |
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|   | a) | Transferability.      Subject to compliance with any applicable securities laws and the      conditions set forth in Sections 5(a) and 4(d) hereof and to the      provisions of Section 4.1 of the Purchase Agreement, 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. |
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|   | 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 the      contrary. |
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|   | 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. |
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|   | 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. |
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|   | 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. |
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|   | 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. |
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|   | 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. |
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|   | 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. |
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|   | 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. |
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|   | 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. |
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|   | 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. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 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. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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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|   | GLOBAL      AXCESS CORP.                             |
|--------|------------------------------------------------------|
|   |                                                 |
|   | /s/      Michael Dodak                     |
|   | Name:      Michael Dodak                             |
|   | Title:        Chief      Executive Officer |

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|   |  ̈ | in      lawful money of the United States;or |
|--------|--------|----------------------------------------------|

|   |  ̈ | the      cancellation of such number of Warrant Shares as is necessary, in      accordance with the formula set forth in subsection 2(c), to exercise this      Warrant with respect to the maximum number of Warrant Shares purchasable      pursuant to the cashless exercise procedure set forth in subsection      2(c). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |
|--------------|

|    |
|--------------|
|         |
|    |
|         |
|    |

| Name of Investing Entity:  |    |
|------------------------------------------------|--------------|

| Signature of Authorized Signatory of Investing Entity:  |    |
|--------------------------------------------------------------------------------------------|--------------|

| Name of Authorized Signatory:  |    |
|----------------------------------------------------|--------------|

| Title of Authorized Signatory:  |    |
|-----------------------------------------------------|--------------|

| Date:  |    |
|-------------|--------------|

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

|   | Holder's      Signature: |    |
|--------|--------------------------|--------------|
|   |                     |         |
|   | Holder's      Address:   |    |
|   |                     |         |
|   |                     |    |

| Signature Guaranteed:  |    |
|----------------------------------|--------------|

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