NEITHERTHEISSUANCEANDSALEOFTHESECURITIESREPRESENTEDBY THISCERTIFICATENORTHESECURITIESINTOWHICHTHESESECURITIES ARECONVERTIBLEHAVEBEENREGISTEREDUNDERTHESECURITIESACT OF1933,ASAMENDED,ORAPPLICABLESTATESECURITIESLAWS. THE SECURITIESMAYNOTBEOFFEREDFORSALE,SOLD,TRANSFERREDOR ASSIGNED(I)INTHEABSENCEOF(A)ANEFFECTIVEREGISTRATION STATEMENTFORTHESECURITIESUNDERTHESECURITIESACTOF1933,AS AMENDED,OR(B)ANOPINIONOFCOUNSEL(WHICHCOUNSELSHALLBE SELECTEDBYTHEHOLDER),INAGENERALLYACCEPTABLEFORM,THAT REGISTRATIONISNOTREQUIREDUNDERSAIDACTOR(II)UNLESSSOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDINGTHEFOREGOING,THESECURITIESMAYBEPLEDGEDIN CONNECTIONWITHABONAFIDEMARGINACCOUNTOROTHERLOANOR FINANCINGARRANGEMENTSECUREDBYTHESECURITIES.   PrincipalAmount:$32,500.00 IssueDate:September18,2013 PurchasePrice:$32,500.00   CONVERTIBLE PROMISSORY NOTE  FORVALUERECEIVED,MYRIADINTERACTIVEMEDIA,INC.,aDelaware corporation(hereinaftercalledthe“Borrower”),herebypromisestopaytotheorderofASHER ENTERPRISES,INC.,aDelawarecorporation,orregisteredassigns(the“Holder”)thesumof $32,500.00togetherwithanyinterestassetforthherein,onJune20,2014(the“MaturityDate”), andtopayinterestontheunpaidprincipalbalancehereofattherateofeightpercent(8%)(the “InterestRate”)perannumfromthedatehereof(the“IssueDate”)untilthesamebecomesdue andpayable,whetheratmaturityoruponaccelerationorbyprepaymentorotherwise.ThisNote maynotbeprepaidinwholeorinpartexceptasotherwiseexplicitlysetforthherein.Any amountofprincipalorinterestonthisNotewhichisnotpaidwhendueshallbearinterestatthe rateoftwentytwopercent(22%)perannumfromtheduedatethereofuntilthesameispaid (“DefaultInterest”).InterestshallcommenceaccruingonthedatethattheNoteisfullypaidand shallbecomputedonthebasisofa365-dayyearandtheactualnumberofdayselapsed.All paymentsduehereunder(totheextentnotconvertedintocommonstock,$0.001parvalueper share(the“CommonStock”)inaccordancewiththetermshereof)shallbemadeinlawful moneyoftheUnitedStatesofAmerica.Allpaymentsshallbemadeatsuchaddressasthe HoldershallhereaftergivetotheBorrowerbywrittennoticemadeinaccordancewiththe provisionsofthisNote.WheneveranyamountexpressedtobeduebythetermsofthisNoteis dueonanydaywhichisnotabusinessday,thesameshallinsteadbedueonthenextsucceeding daywhichisabusinessdayand,inthecaseofanyinterestpaymentdatewhichisnotthedateon whichthisNoteispaidinfull,theextensionoftheduedatethereofshallnotbetakeninto accountforpurposesofdeterminingtheamountofinterestdueonsuchdate.Asusedinthis Note,theterm“businessday”shallmeananydayotherthanaSaturday,Sundayoradayon whichcommercialbanksinthecityofNewYork,NewYorkareauthorizedorrequiredbylaw orexecutiveordertoremainclosed. Eachcapitalizedtermusedherein,andnototherwise defined,shallhavethemeaningascribedtheretointhatcertainSecuritiesPurchaseAgreement datedthedatehereof,pursuanttowhichthisNotewasoriginallyissued(the“Purchase Agreement”).    ThisNoteisfreefromalltaxes,liens,claimsandencumbranceswithrespecttotheissue thereofandshallnotbesubjecttopreemptiverightsorothersimilarrightsofshareholdersofthe Borrowerandwillnotimposepersonalliabilityupontheholderthereof.  ThefollowingtermsshallapplytothisNote:  ARTICLEI.CONVERSIONRIGHTS  1.1Conversion Right.TheHoldershallhavetherightfromtimetotime,andat anytimeduringtheperiodbeginningonthedatewhichisonehundredeighty(180)days followingthedateofthisNoteandendingonthelaterof:(i)theMaturityDateand(ii)thedate ofpaymentoftheDefaultAmount(asdefinedinArticleIII)pursuanttoSection1.6(a)orArticle III,eachinrespectoftheremainingoutstandingprincipalamountofthisNotetoconvertallor anypartoftheoutstandingandunpaidprincipalamountofthisNoteintofullypaidandnon- assessablesharesofCommonStock,assuchCommonStockexistsontheIssueDate,orany sharesofcapitalstockorothersecuritiesoftheBorrowerintowhichsuchCommonStockshall hereafterbechangedorreclassifiedattheconversionprice(the“ConversionPrice”)determined asprovidedherein(a“Conversion”);provided,however,thatinnoeventshalltheHolderbe entitledtoconvertanyportionofthisNoteinexcessofthatportionofthisNoteuponconversion ofwhichthesumof(1)thenumberofsharesofCommonStockbeneficiallyownedbythe Holderanditsaffiliates(otherthansharesofCommonStockwhichmaybedeemedbeneficially ownedthroughtheownershipoftheunconvertedportionoftheNotesortheunexercisedor unconvertedportionofanyothersecurityoftheBorrowersubjecttoalimitationonconversion orexerciseanalogoustothelimitationscontainedherein)and(2)thenumberofsharesof CommonStockissuableupontheconversionoftheportionofthisNotewithrespecttowhich thedeterminationofthisprovisoisbeingmade,wouldresultinbeneficialownershipbythe Holderanditsaffiliatesofmorethan4.99%oftheoutstandingsharesofCommonStock.For purposesoftheprovisototheimmediatelyprecedingsentence,beneficialownershipshallbe determinedinaccordancewithSection13(d)oftheSecuritiesExchangeActof1934,as amended(the“ExchangeAct”),andRegulations13D-Gthereunder,exceptasotherwise providedinclause(1)ofsuchproviso,provided,further,however,thatthelimitationson conversionmaybewaivedbytheHolderupon,attheelectionoftheHolder,notlessthan61 days’priornoticetotheBorrower,andtheprovisionsoftheconversionlimitationshallcontinue toapplyuntilsuch61stday(orsuchlaterdate,asdeterminedbytheHolder,asmaybespecified 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 respecttoanyconversionofthisNote,thesumof(1)theprincipalamountofthisNotetobe convertedinsuchconversionplus(2)attheHolder’soption,accruedandunpaidinterest,ifany, onsuchprincipalamountattheinterestratesprovidedinthisNotetotheConversionDate,plus (3)attheHolder’soption,DefaultInterest,ifany,ontheamountsreferredtointheimmediately precedingclauses(1)and/or(2)plus(4)attheHolder’soption,anyamountsowedtotheHolder pursuanttoSections1.3and1.4(g)hereof. 2    1.2Conversion Price.  (a)Calculation of Conversion Price. Theconversionprice(the “ConversionPrice”)shallequaltheVariableConversionPrice(asdefinedherein)(subjectto equitableadjustmentsforstocksplits,stockdividendsorrightsofferingsbytheBorrower relatingtotheBorrower’ssecuritiesorthesecuritiesofanysubsidiaryoftheBorrower, combinations,recapitalization,reclassifications,extraordinarydistributionsandsimilarevents). The"VariableConversionPrice"shallmean55%multipliedbytheMarketPrice(asdefined herein)(representingadiscountrateof45%).“MarketPrice”meanstheaverageofthelowest three(3)TradingPrices(asdefinedbelow)fortheCommonStockduringtheten(10)Trading DayperiodendingonthelatestcompleteTradingDaypriortotheConversionDate.“Trading Price”means,foranysecurityasofanydate,theclosingbidpriceontheOver-the-Counter BulletinBoard,orapplicabletradingmarket(the“OTCBB”)asreportedbyareliablereporting service(“ReportingService”)designatedbytheHolder(i.e.Bloomberg)or,iftheOTCBBisnot theprincipaltradingmarketforsuchsecurity,theclosingbidpriceofsuchsecurityonthe principalsecuritiesexchangeortradingmarketwheresuchsecurityislistedortradedor,ifno closingbidpriceofsuchsecurityisavailableinanyoftheforegoingmanners,theaverageofthe closingbidpricesofanymarketmakersforsuchsecuritythatarelistedinthe“pinksheets”by theNationalQuotationBureau,Inc.IftheTradingPricecannotbecalculatedforsuchsecurity onsuchdateinthemannerprovidedabove,theTradingPriceshallbethefairmarketvalueas mutuallydeterminedbytheBorrowerandtheholdersofamajorityininterestoftheNotesbeing convertedforwhichthecalculationoftheTradingPriceisrequiredinordertodeterminethe ConversionPriceofsuchNotes.“TradingDay”shallmeananydayonwhichtheCommon StockistradableforanyperiodontheOTCBB,orontheprincipalsecuritiesexchangeorother securitiesmarketonwhichtheCommonStockisthenbeingtraded.  (b)Conversion Price During Major Announcements. Notwithstanding anythingcontainedinSection1.2(a)tothecontrary,intheeventtheBorrower(i)makesapublic 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 ontheAnnouncementDateand(y)theConversionPricethatwouldotherwisebeineffect.From andaftertheAdjustedConversionPriceTerminationDate,theConversionPriceshallbe determinedassetforthinthisSection1.2(a).Forpurposeshereof,“AdjustedConversionPrice TerminationDate”shallmean,withrespecttoanyproposedtransactionortenderoffer(or takeoverscheme)forwhichapublicannouncementascontemplatedbythisSection1.2(b)has beenmade,thedateuponwhichtheBorrower(inthecaseofclause(i)above)ortheperson, grouporentity(inthecaseofclause(ii)above)consummatesorpubliclyannouncesthe terminationorabandonmentoftheproposedtransactionortenderoffer(ortakeoverscheme) whichcausedthisSection1.2(b)tobecomeoperative.


3   1.3Authorized Shares. TheBorrowercovenantsthatduringtheperiodthe conversionrightexists,theBorrowerwillreservefromitsauthorizedandunissuedCommon Stockasufficientnumberofshares,freefrompreemptiverights,toprovidefortheissuanceof CommonStockuponthefullconversionofthisNoteissuedpursuanttothePurchaseAgreement. TheBorrowerisrequiredatalltimestohaveauthorizedandreservedfivetimesthenumberof sharesthatisactuallyissuableuponfullconversionoftheNote(basedontheConversionPrice oftheNotesineffectfromtimetotime)(the“ReservedAmount”).TheReservedAmountshall beincreasedfromtimetotimeinaccordancewiththeBorrower’sobligationspursuanttoSection 4(g)ofthePurchaseAgreement.TheBorrowerrepresentsthatuponissuance,suchshareswill bedulyandvalidlyissued,fullypaidandnon-assessable.Inaddition,iftheBorrowershallissue anysecuritiesormakeanychangetoitscapitalstructurewhichwouldchangethenumberof sharesofCommonStockintowhichtheNotesshallbeconvertibleatthethencurrent ConversionPrice,theBorrowershallatthesametimemakeproperprovisionsothatthereafter thereshallbeasufficientnumberofsharesofCommonStockauthorizedandreserved,freefrom preemptiverights,forconversionoftheoutstandingNotes.TheBorrower(i)acknowledgesthat ithasirrevocablyinstructeditstransferagenttoissuecertificatesfortheCommonStockissuable uponconversionofthisNote,and(ii)agreesthatitsissuanceofthisNoteshallconstitutefull authoritytoitsofficersandagentswhoarechargedwiththedutyofexecutingstockcertificates toexecuteandissuethenecessarycertificatesforsharesofCommonStockinaccordancewith thetermsandconditionsofthisNote.  If,atanytimetheBorrowerdoesnotmaintaintheReservedAmountitwillbe consideredanEventofDefaultunderSection3.2oftheNote.  1.4Method of Conversion.  (a)Mechanics of Conversion.SubjecttoSection1.1,thisNotemaybe convertedbytheHolderinwholeorinpartatanytimefromtimetotimeaftertheIssueDate,by (A)submittingtotheBorroweraNoticeofConversion(byfacsimile,e-mailorotherreasonable meansofcommunicationdispatchedontheConversionDatepriorto6:00p.m.,NewYork,New Yorktime)and(B)subjecttoSection1.4(b),surrenderingthisNoteattheprincipalofficeofthe Borrower.  (b)Surrender of Note Upon Conversion.Notwithstandinganythingtothe contrarysetforthherein,uponconversionofthisNoteinaccordancewiththetermshereof,the HoldershallnotberequiredtophysicallysurrenderthisNotetotheBorrowerunlesstheentire unpaidprincipalamountofthisNoteissoconverted. TheHolderandtheBorrowershall maintainrecordsshowingtheprincipalamountsoconvertedandthedatesofsuchconversionsor shallusesuchothermethod,reasonablysatisfactorytotheHolderandtheBorrower,soasnotto requirephysicalsurrenderofthisNoteuponeachsuchconversion.Intheeventofanydisputeor discrepancy,suchrecordsoftheBorrowershall,primafacie,becontrollinganddeterminativein theabsenceofmanifesterror.Notwithstandingtheforegoing,ifanyportionofthisNoteis convertedasaforesaid,theHoldermaynottransferthisNoteunlesstheHolderfirstphysically surrendersthisNotetotheBorrower,whereupontheBorrowerwillforthwithissueanddeliver upontheorderoftheHolderanewNoteofliketenor,registeredastheHolder(uponpaymentby theHolderofanyapplicabletransfertaxes)mayrequest,representingintheaggregatethe remainingunpaidprincipalamountofthisNote.TheHolderandanyassignee,byacceptanceof thisNote,acknowledgeandagreethat,byreasonoftheprovisionsofthisparagraph,following   4   conversionofaportionofthisNote,theunpaidandunconvertedprincipalamountofthisNote representedbythisNotemaybelessthantheamountstatedonthefacehereof.  (c)Payment of Taxes.TheBorrowershallnotberequiredtopayanytax whichmaybepayableinrespectofanytransferinvolvedintheissueanddeliveryofsharesof CommonStockorothersecuritiesorpropertyonconversionofthisNoteinanameotherthan thatoftheHolder(orinstreetname),andtheBorrowershallnotberequiredtoissueordeliver anysuchsharesorothersecuritiesorpropertyunlessanduntilthepersonorpersons(otherthan theHolderorthecustodianinwhosestreetnamesuchsharesaretobeheldfortheHolder’s account)requestingtheissuancethereofshallhavepaidtotheBorrowertheamountofanysuch taxorshallhaveestablishedtothesatisfactionoftheBorrowerthatsuchtaxhasbeenpaid.  (d)Delivery of Common Stock Upon Conversion.Uponreceiptbythe BorrowerfromtheHolderofafacsimiletransmissionore-mail(orotherreasonablemeansof communication)ofaNoticeofConversionmeetingtherequirementsforconversionasprovided inthisSection1.4,theBorrowershallissueanddeliverorcausetobeissuedanddeliveredtoor upontheorderoftheHoldercertificatesfortheCommonStockissuableuponsuchconversion withinthree(3)businessdaysaftersuchreceipt(the“Deadline”)(and,solelyinthecaseof conversionoftheentireunpaidprincipalamounthereof,surrenderofthisNote)inaccordance withthetermshereofandthePurchaseAgreement.  (e)Obligation of Borrower to Deliver Common Stock.Uponreceiptby theBorrowerofaNoticeofConversion,theHoldershallbedeemedtobetheholderofrecordof theCommonStockissuableuponsuchconversion,theoutstandingprincipalamountandthe amountofaccruedandunpaidinterestonthisNoteshallbereducedtoreflectsuchconversion, and,unlesstheBorrowerdefaultsonitsobligationsunderthisArticleI,allrightswithrespectto theportionofthisNotebeingsoconvertedshallforthwithterminateexcepttherighttoreceive theCommonStockorothersecurities,cashorotherassets,ashereinprovided,onsuch conversion.IftheHoldershallhavegivenaNoticeofConversionasprovidedherein,the Borrower’sobligationtoissueanddeliverthecertificatesforCommonStockshallbeabsolute andunconditional,irrespectiveoftheabsenceofanyactionbytheHoldertoenforcethesame, anywaiverorconsentwithrespecttoanyprovisionthereof,therecoveryofanyjudgment againstanypersonoranyactiontoenforcethesame,anyfailureordelayintheenforcementof anyotherobligationoftheBorrowertotheholderofrecord,oranysetoff,counterclaim, recoupment,limitationortermination,oranybreachorallegedbreachbytheHolderofany obligationtotheBorrower,andirrespectiveofanyothercircumstancewhichmightotherwise limitsuchobligationoftheBorrowertotheHolderinconnectionwithsuchconversion.The ConversionDatespecifiedintheNoticeofConversionshallbetheConversionDatesolongas theNoticeofConversionisreceivedbytheBorrowerbefore6:00p.m.,NewYork,NewYork time,onsuchdate.  (f)Delivery of Common Stock by Electronic Transfer. Inlieuof deliveringphysicalcertificatesrepresentingtheCommonStockissuableuponconversion, providedtheBorrowerisparticipatingintheDepositoryTrustCompany(“DTC”)Fast AutomatedSecuritiesTransfer(“FAST”)program,uponrequestoftheHolderandits compliancewiththeprovisionscontainedinSection1.1andinthisSection1.4,theBorrower shalluseitsbesteffortstocauseitstransferagenttoelectronicallytransmittheCommonStock issuableuponconversiontotheHolderbycreditingtheaccountofHolder’sPrimeBrokerwith DTCthroughitsDepositWithdrawalAgentCommission(“DWAC”)system.


5    (g)Failure to Deliver Common Stock Prior to Deadline.Withoutinany waylimitingtheHolder’srighttopursueotherremedies,includingactualdamagesand/or equitablerelief,thepartiesagreethatifdeliveryoftheCommonStockissuableuponconversion ofthisNoteisnotdeliveredbytheDeadline(otherthanafailureduetothecircumstances describedinSection1.3above,whichfailureshallbegovernedbysuchSection)theBorrower shallpaytotheHolder$2,000perdayincash,foreachdaybeyondtheDeadlinethatthe BorrowerfailstodeliversuchCommonStock.SuchcashamountshallbepaidtoHolderbythe fifthdayofthemonthfollowingthemonthinwhichithasaccruedor,attheoptionoftheHolder (bywrittennoticetotheBorrowerbythefirstdayofthemonthfollowingthemonthinwhichit hasaccrued),shallbeaddedtotheprincipalamountofthisNote,inwhicheventinterestshall accruethereoninaccordancewiththetermsofthisNoteandsuchadditionalprincipalamount shallbeconvertibleintoCommonStockinaccordancewiththetermsofthisNote. The BorroweragreesthattherighttoconvertisavaluablerighttotheHolder.Thedamagesresulting fromafailure,attempttofrustrate,interferencewithsuchconversionrightaredifficultifnot impossibletoqualify. Accordinglythepartiesacknowledgethattheliquidateddamages provisioncontainedinthisSection1.4(g)arejustified.  1.5Concerning the Shares. ThesharesofCommonStockissuableupon conversionofthisNotemaynotbesoldortransferredunless(i)suchsharesaresoldpursuantto aneffectiveregistrationstatementundertheActor(ii)theBorroweroritstransferagentshall havebeenfurnishedwithanopinionofcounsel(whichopinionshallbeinform,substanceand scopecustomaryforopinionsofcounselincomparabletransactions)totheeffectthattheshares tobesoldortransferredmaybesoldortransferredpursuanttoanexemptionfromsuch registrationor(iii)suchsharesaresoldortransferredpursuanttoRule144undertheAct(ora successorrule)(“Rule144”)or(iv)suchsharesaretransferredtoan“affiliate”(asdefinedin Rule144)oftheBorrowerwhoagreestosellorotherwisetransferthesharesonlyinaccordance withthisSection1.5andwhoisanAccreditedInvestor(asdefinedinthePurchaseAgreement). ExceptasotherwiseprovidedinthePurchaseAgreement(andsubjecttotheremovalprovisions setforthbelow),untilsuchtimeasthesharesofCommonStockissuableuponconversionofthis NotehavebeenregisteredundertheActorotherwisemaybesoldpursuanttoRule144without anyrestrictionastothenumberofsecuritiesasofaparticulardatethatcanthenbeimmediately sold,eachcertificateforsharesofCommonStockissuableuponconversionofthisNotethathas notbeensoincludedinaneffectiveregistrationstatementorthathasnotbeensoldpursuantto aneffectiveregistrationstatementoranexemptionthatpermitsremovalofthelegend,shallbear alegendsubstantiallyinthefollowingform,asappropriate:  “NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTEDBYTHISCERTIFICATENORTHESECURITIESINTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED,OR APPLICABLESTATESECURITIESLAWS.THESECURITIESMAYNOTBE OFFEREDFORSALE,SOLD,TRANSFERREDORASSIGNED(I)INTHE ABSENCEOF(A)ANEFFECTIVEREGISTRATIONSTATEMENTFORTHE SECURITIESUNDERTHESECURITIESACTOF1933,ASAMENDED,OR(B) ANOPINIONOFCOUNSEL(WHICHCOUNSELSHALLBESELECTEDBY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATIONISNOTREQUIREDUNDERSAIDACTOR(II)UNLESS SOLDPURSUANTTORULE144ORRULE144AUNDERSAIDACT. NOTWITHSTANDINGTHEFOREGOING,THESECURITIESMAYBE  6   PLEDGEDINCONNECTIONWITHABONAFIDEMARGINACCOUNTOR OTHERLOANORFINANCINGARRANGEMENTSECUREDBYTHE SECURITIES.”  ThelegendsetforthaboveshallberemovedandtheBorrowershallissuetothe Holderanewcertificatethereforefreeofanytransferlegendif(i)theBorroweroritstransfer agentshallhavereceivedanopinionofcounsel,inform,substanceandscopecustomaryfor opinionsofcounselincomparabletransactions,totheeffectthatapublicsaleortransferofsuch CommonStockmaybemadewithoutregistrationundertheAct,whichopinionshallbeaccepted bytheCompanysothatthesaleortransferiseffectedor(ii)inthecaseoftheCommonStock issuableuponconversionofthisNote,suchsecurityisregisteredforsalebytheHolderunderan effectiveregistrationstatementfiledundertheActorotherwisemaybesoldpursuanttoRule 144withoutanyrestrictionastothenumberofsecuritiesasofaparticulardatethatcanthenbe immediatelysold. IntheeventthattheCompanydoesnotaccepttheopinionofcounsel providedbytheBuyerwithrespecttothetransferofSecuritiespursuanttoanexemptionfrom registration,suchasRule144orRegulationS,attheDeadline,itwillbeconsideredanEventof DefaultpursuanttoSection3.2oftheNote.  1.6Effect of Certain Events.  (a)Effect of Merger, Consolidation, Etc.AttheoptionoftheHolder,the sale,conveyanceordispositionofallorsubstantiallyalloftheassetsoftheBorrower,the effectuationbytheBorrowerofatransactionorseriesofrelatedtransactionsinwhichmorethan 50%ofthevotingpoweroftheBorrowerisdisposedof,ortheconsolidation,mergerorother businesscombinationoftheBorrowerwithorintoanyotherPerson(asdefinedbelow)or PersonswhentheBorrowerisnotthesurvivorshalleither:(i)bedeemedtobeanEventof Default(asdefinedinArticleIII)pursuanttowhichtheBorrowershallberequiredtopaytothe Holderupontheconsummationofandasaconditiontosuchtransactionanamountequaltothe DefaultAmount(asdefinedinArticleIII)or(ii)betreatedpursuanttoSection1.6(b)hereof. “Person”shallmeananyindividual,corporation,limitedliabilitycompany,partnership, association,trustorotherentityororganization.  (b)Adjustment Due to Merger, Consolidation, Etc.If,atanytimewhen thisNoteisissuedandoutstandingandpriortoconversionofalloftheNotes,thereshallbeany merger,consolidation,exchangeofshares,recapitalization,reorganization,orothersimilar event,asaresultofwhichsharesofCommonStockoftheBorrowershallbechangedintothe sameoradifferentnumberofsharesofanotherclassorclassesofstockorsecuritiesofthe Borroweroranotherentity,orincaseofanysaleorconveyanceofallorsubstantiallyallofthe assetsoftheBorrowerotherthaninconnectionwithaplanofcompleteliquidationofthe Borrower,thentheHolderofthisNoteshallthereafterhavetherighttoreceiveuponconversion ofthisNote,uponthebasisanduponthetermsandconditionsspecifiedhereinandinlieuofthe sharesofCommonStockimmediatelytheretoforeissuableuponconversion,suchstock, securitiesorassetswhichtheHolderwouldhavebeenentitledtoreceiveinsuchtransactionhad thisNotebeenconvertedinfullimmediatelypriortosuchtransaction(withoutregardtoany limitationsonconversionsetforthherein),andinanysuchcaseappropriateprovisionsshallbe madewithrespecttotherightsandinterestsoftheHolderofthisNotetotheendthatthe provisionshereof(including,withoutlimitation,provisionsforadjustmentoftheConversion PriceandofthenumberofsharesissuableuponconversionoftheNote)shallthereafterbe applicable,asnearlyasmaybepracticableinrelationtoanysecuritiesorassetsthereafter


7   deliverableupontheconversionhereof.TheBorrowershallnotaffectanytransactiondescribed inthisSection1.6(b)unless(a)itfirstgives,totheextentpracticable,thirty(30)daysprior writtennotice(butinanyeventatleastfifteen(15)dayspriorwrittennotice)oftherecorddate ofthespecialmeetingofshareholderstoapprove,orifthereisnosuchrecorddate,the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganizationorothersimilareventorsaleofassets(duringwhichtimetheHoldershallbe entitledtoconvertthisNote)and(b)theresultingsuccessororacquiringentity(ifnotthe Borrower)assumesbywritteninstrumenttheobligationsofthisSection1.6(b).Theabove provisionsshallsimilarlyapplytosuccessiveconsolidations,mergers,sales,transfersorshare exchanges.  (c)Adjustment Due to Distribution.IftheBorrowershalldeclareormake anydistributionofitsassets(orrightstoacquireitsassets)toholdersofCommonStockasa dividend,stockrepurchase,bywayofreturnofcapitalorotherwise(includinganydividendor distributiontotheBorrower’sshareholdersincashorshares(orrightstoacquireshares)of capitalstockofasubsidiary(i.e.,aspin-off))(a“Distribution”),thentheHolderofthisNote shallbeentitled,uponanyconversionofthisNoteafterthedateofrecordfordetermining shareholdersentitledtosuchDistribution,toreceivetheamountofsuchassetswhichwouldhave beenpayabletotheHolderwithrespecttothesharesofCommonStockissuableuponsuch conversionhadsuchHolderbeentheholderofsuchsharesofCommonStockontherecorddate forthedeterminationofshareholdersentitledtosuchDistribution.  (d)Adjustment Due to Dilutive Issuance.If,atanytimewhenanyNotes areissuedandoutstanding,theBorrowerissuesorsells,orinaccordancewiththisSection1.6(d) hereofisdeemedtohaveissuedorsold,anysharesofCommonStockfornoconsiderationorfor aconsiderationpershare(beforedeductionofreasonableexpensesorcommissionsor underwritingdiscountsorallowancesinconnectiontherewith)lessthantheConversionPricein effectonthedateofsuchissuance(ordeemedissuance)ofsuchsharesofCommonStock(a “DilutiveIssuance”),thenimmediatelyupontheDilutiveIssuance,theConversionPricewillbe reducedtotheamountoftheconsiderationpersharereceivedbytheBorrowerinsuchDilutive Issuance.  TheBorrowershallbedeemedtohaveissuedorsoldsharesofCommon StockiftheBorrowerinanymannerissuesorgrantsanywarrants,rightsoroptions(not includingemployeestockoptionplans),whetherornotimmediatelyexercisable,tosubscribefor ortopurchaseCommonStockorothersecuritiesconvertibleintoorexchangeableforCommon Stock(“ConvertibleSecurities”)(suchwarrants,rightsandoptionstopurchaseCommonStock orConvertibleSecuritiesarehereinafterreferredtoas“Options”)andthepricepersharefor whichCommonStockisissuableupontheexerciseofsuchOptionsislessthantheConversion Pricethenineffect,thentheConversionPriceshallbeequaltosuchpricepershare.For purposesoftheprecedingsentence,the“pricepershareforwhichCommonStockisissuable upontheexerciseofsuchOptions”isdeterminedbydividing(i)thetotalamount,ifany, receivedorreceivablebytheBorrowerasconsiderationfortheissuanceorgrantingofallsuch Options,plustheminimumaggregateamountofadditionalconsideration,ifany,payabletothe BorrowerupontheexerciseofallsuchOptions,plus,inthecaseofConvertibleSecurities issuableupontheexerciseofsuchOptions,theminimumaggregateamountofadditional considerationpayableupontheconversionorexchangethereofatthetimesuchConvertible Securitiesfirstbecomeconvertibleorexchangeable,by(ii)themaximumtotalnumberofshares ofCommonStockissuableupontheexerciseofallsuchOptions(assumingfullconversionof 8   ConvertibleSecurities,ifapplicable).NofurtheradjustmenttotheConversionPricewillbe madeupontheactualissuanceofsuchCommonStockupontheexerciseofsuchOptionsorupon theconversionorexchangeofConvertibleSecuritiesissuableuponexerciseofsuchOptions.  Additionally,theBorrowershallbedeemedtohaveissuedorsoldshares ofCommonStockiftheBorrowerinanymannerissuesorsellsanyConvertibleSecurities, whetherornotimmediatelyconvertible(otherthanwherethesameareissuableuponthe exerciseofOptions),andthepricepershareforwhichCommonStockisissuableuponsuch conversionorexchangeislessthantheConversionPricethenineffect,thentheConversion Priceshallbeequaltosuchpricepershare.Forthepurposesoftheprecedingsentence,the “pricepershareforwhichCommonStockisissuableuponsuchconversionorexchange”is determinedbydividing(i)thetotalamount,ifany,receivedorreceivablebytheBorroweras considerationfortheissuanceorsaleofallsuchConvertibleSecurities,plustheminimum aggregateamountofadditionalconsideration,ifany,payabletotheBorroweruponthe conversionorexchangethereofatthetimesuchConvertibleSecuritiesfirstbecomeconvertible orexchangeable,by(ii)themaximumtotalnumberofsharesofCommonStockissuableupon theconversionorexchangeofallsuchConvertibleSecurities.Nofurtheradjustmenttothe ConversionPricewillbemadeupontheactualissuanceofsuchCommonStockuponconversion orexchangeofsuchConvertibleSecurities.  (e)Purchase Rights. If,atanytimewhenanyNotesareissuedand outstanding,theBorrowerissuesanyconvertiblesecuritiesorrightstopurchasestock,warrants, securitiesorotherproperty(the“PurchaseRights”)proratatotherecordholdersofanyclassof CommonStock,thentheHolderofthisNotewillbeentitledtoacquire,upontheterms applicabletosuchPurchaseRights,theaggregatePurchaseRightswhichsuchHoldercouldhave acquiredifsuchHolderhadheldthenumberofsharesofCommonStockacquirableupon completeconversionofthisNote(withoutregardtoanylimitationsonconversioncontained herein)immediatelybeforethedateonwhicharecordistakenforthegrant,issuanceorsaleof suchPurchaseRightsor,ifnosuchrecordistaken,thedateasofwhichtherecordholdersof CommonStockaretobedeterminedforthegrant,issueorsaleofsuchPurchaseRights.  (f)Notice of Adjustments.Upontheoccurrenceofeachadjustmentor readjustmentoftheConversionPriceasaresultoftheeventsdescribedinthisSection1.6,the Borrower,atitsexpense,shallpromptlycomputesuchadjustmentorreadjustmentandprepare andfurnishtotheHolderacertificatesettingforthsuchadjustmentorreadjustmentandshowing indetailthefactsuponwhichsuchadjustmentorreadjustmentisbased.TheBorrowershall, uponthewrittenrequestatanytimeoftheHolder,furnishtosuchHolderalikecertificate settingforth(i)suchadjustmentorreadjustment,(ii)theConversionPriceatthetimeineffect and(iii)thenumberofsharesofCommonStockandtheamount,ifany,ofothersecuritiesor propertywhichatthetimewouldbereceiveduponconversionoftheNote.  1.7Trading Market Limitations.Unlesspermittedbytheapplicablerulesand regulationsoftheprincipalsecuritiesmarketonwhichtheCommonStockisthenlistedor traded,innoeventshalltheBorrowerissueuponconversionoforotherwisepursuanttothis NoteandtheotherNotesissuedpursuanttothePurchaseAgreementmorethanthemaximum numberofsharesofCommonStockthattheBorrowercanissuepursuanttoanyruleofthe principalUnitedStatessecuritiesmarketonwhichtheCommonStockisthentraded(the “MaximumShareAmount”),whichshallbe4.99%ofthetotalsharesoutstandingontheClosing Date(asdefinedinthePurchaseAgreement),subjecttoequitableadjustmentfromtimetotime