Document:

[FORM OF SENIOR CONVERTIBLE NOTE]

NEITHER  THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
NOR  THE  SECURITIES  INTO  WHICH  THESE  SECURITIES  ARE  CONVERTIBLE HAVE BEEN
REGISTERED  UNDER  THE  SECURITIES  ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES  LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR  ASSIGNED  (I)  IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE  SECURITIES  UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF  COUNSEL,  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.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH  A  BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
BY  THE  SECURITIES.  ANY  TRANSFEREE  OF  THIS NOTE SHOULD CAREFULLY REVIEW THE
TERMS  OF  THIS  NOTE,  INCLUDING  SECTIONS  3(C)(III)  AND  17(A)  HEREOF.  THE
PRINCIPAL  AMOUNT  REPRESENTED  BY  THIS  NOTE  AND, ACCORDINGLY, THE SECURITIES
ISSUABLE  UPON  CONVERSION  HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE
FACE  HEREOF  PURSUANT  TO  SECTION  3(C)(III)  OF  THIS  NOTE.

                                   Sorell inc.

                             SENIOR CONVERTIBLE NOTE

     Issuance Date:  [                ], 2006     Principal: U.S. $_____________

     FOR  VALUE  RECEIVED,  Sorell  Inc.,  a Nevada corporation (the "COMPANY"),
hereby  promises  to  pay  to  the  order  of  [
] or registered assigns ("HOLDER") the amount set out above as the Principal (as
reduced  pursuant  to  the  terms  hereof  pursuant to redemption, conversion or
otherwise, the "PRINCIPAL") when due, whether upon the Maturity Date (as defined
below),  acceleration,  redemption or otherwise (in each case in accordance with
the  terms hereof) and to pay interest ("INTEREST") on any outstanding Principal
at  a  rate  equal to eight percent (8.0%) per annum (the "INTEREST RATE"), from
the date set out above as the Issuance Date (the "ISSUANCE DATE") until the same
becomes  due  and  payable, whether upon an Interest Date (as defined below) or,
the  Maturity  Date,  acceleration, conversion, redemption or otherwise (in each
case  in  accordance  with  the  terms  hereof).  This  Senior  Convertible Note
(including  all  Senior  Convertible  Notes  issued  in  exchange,  transfer  or
replacement  hereof, this "NOTE") is one of an issue of Senior Convertible Notes
issued  pursuant  to the Securities Purchase Agreement (as defined below) on the
Closing Date (collectively, the "NOTES" and such other Senior Convertible Notes,
the  "OTHER  NOTES").  Certain  capitalized  terms  used  herein  are defined in
Section  28.

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(1)     MATURITY.  On  the Maturity Date, the Holder shall surrender the Note to
the  Company  and  the  Company  shall  pay  to  the  Holder  an  amount in cash
representing  all  outstanding  Principal  and  accrued  and unpaid Interest and
accrued  and  unpaid  Late  Charges,  if  any.

(2)     INTEREST; INTEREST RATE.  Interest on this Note shall commence accruing
on the Issuance Date, shall be computed on the basis of a 365-day year and
actual days elapsed and shall be payable quarterly in arrears on each [April
1st, July 1st, October 1st and January 1st] during the period beginning on the
Issuance Date and ending on, and including, the Maturity Date (each, an
"INTEREST DATE") with the first Interest Date being July 1, 2006.  Interest
shall be payable on each Interest Date, to the record holder of this Note on the
applicable Interest Date, and to the extent that any Principal amount of this
Note is converted prior to such Interest Date, accrued and unpaid Interest with
respect to such converted Principal amount and accrued and unpaid Late Charges
with respect to such Principal and Interest shall be paid through the Conversion
Date (as defined below) on the next succeeding Interest Date to the record
holder of this Note on the applicable Conversion Date, in shares of Common Stock
("INTEREST SHARES") or, at the option of the Company, in cash ("CASH INTEREST")
or a combination thereof, provided that the Interest which accrued during any
period may be payable in Interest Shares if, and only if, the Company delivers
written notice (each, an "INTEREST ELECTION NOTICE") of such election to each
holder of the Notes on or prior to the fifth (5th) Trading Day prior to the
Interest Date (each, an "INTEREST NOTICE DUE DATE").  Each Interest Election
Notice must specify the amount of Interest that shall be paid in Interest Shares
and the amount of Interest, if any, that shall be paid as Cash Interest.
Interest to be paid on an Interest Date in Interest Shares shall be paid in a
number of fully paid and nonassessable shares (rounded to the nearest whole
share in accordance with Section 3(a)) of Common Stock equal to the quotient of
(a) the amount of Interest payable on such Interest Date less any Cash Interest
paid and (b) the Interest Conversion Price in effect on the applicable Interest
Date.  If any Interest Shares are to be paid on an Interest Date, then the
Company shall (X) provided that the Company's transfer agent is participating in
the DTC Fast Automated Securities Transfer Program and such action is not
prohibited by applicable law or regulation or any applicable policy of DTC,
credit such aggregate number of Interest Shares to which the Holder shall be
entitled to the Holder's or its designee's balance account with DTC through its
Deposit Withdrawal Agent Commission system, or (Y) if the foregoing shall not
apply, issue and deliver on the applicable Interest Date, to the address set
forth in the register maintained by the Company for such purpose pursuant to the
Securities Purchase Agreement or to such address as specified by the Holder in
writing to the Company at least two (2) Business Days prior to the applicable
Interest Date, a certificate, registered in the name of the Holder or its
designee, for the number of Interest Shares to which the Holder shall be
entitled.  Prior to the payment of Interest on an Interest Date, Interest on
this Note shall accrue at the Interest Rate.  The Company shall pay any and all
taxes that may be payable with respect to the issuance and delivery of Interest
Shares; provided that the Company shall not be required to pay any tax that may
be payable in respect of any issuance of Interest Shares to any Person other
than the Holder or with respect to any income tax due by the Holder with respect
to such Interest Shares.

(3)     CONVERSION OF NOTES.  This Note shall be convertible into shares of the
Company's common stock, par value $0.001 per share (the "COMMON STOCK"), on the
terms and conditions set forth in this Section 3.

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(a)     Conversion  Right.  Subject  to  the  provisions of Section 3(d), at any
time  or  times  on  or after the Issuance Date, the Holder shall be entitled to
convert  any portion of the outstanding and unpaid Conversion Amount (as defined
below)  into  fully  paid and nonassessable shares of Common Stock in accordance
with Section 3(c), at the Conversion Rate (as defined below).  The Company shall
not  issue any fraction of a share of Common Stock upon any conversion.  If
the  issuance  would  result  in the issuance of a fraction of a share of Common
Stock,  the  Company  shall round such fraction of a share of Common Stock up to
the  nearest  whole  share.  The Company shall pay any and all taxes that may be
payable  with  respect  to  the  issuance  and  delivery  of  Common  Stock upon
conversion  of  any  Conversion  Amount.

(b)     Conversion Rate.  The number of shares of Common Stock issuable upon
conversion of any Conversion Amount pursuant to Section 3(a) shall be determined
by dividing (x) such Conversion Amount by (y) the Conversion Price (the
"CONVERSION RATE").

(i)     "CONVERSION  AMOUNT" means the portion of the Principal to be converted,
redeemed  or  otherwise  with respect to which this determination is being made.

(ii)     "CONVERSION PRICE" means, as of any Conversion Date (as defined below)
or other date of determination, $0.50, subject to adjustment as provided herein.

(c)     Mechanics  of  Conversion.

(i)     Optional  Conversion.  To  convert  any Conversion Amount into shares of
Common Stock on any date (a "CONVERSION DATE"), the Holder shall (A) transmit by
facsimile  (or  otherwise  deliver), for receipt on or prior to 11:59 p.m.,
New  York  Time, on such date, a copy of an executed notice of conversion in the
form  attached  hereto as Exhibit I (the "CONVERSION NOTICE") to the Company and
(B)  if  required  by Section 3(c)(iii), surrender this Note to a common carrier
for delivery to the Company as soon as practicable on or following such date (or
an  indemnification  undertaking  with  respect  to this Note in the case of its
loss,  theft  or  destruction).  On  or  before  the  third  (3rd)  Business Day
following  the  date  of  receipt  of  a  Conversion Notice (the "SHARE DELIVERY
DATE"),  the Company shall (X) provided that the Transfer Agent is participating
in  the  DTC  Fast  Automated Securities Transfer Program, credit such aggregate
number  of  shares  of Common Stock to which the Holder shall be entitled to the
Holder's  or  its  designee's  balance  account  with  DTC  through  its Deposit
Withdrawal  Agent  Commission  system  or  (Y)  if  the  Transfer  Agent  is not
participating  in  the DTC Fast Automated Securities Transfer Program, issue and
deliver  to  the  address  as specified in the Conversion Notice, a certificate,
registered  in  the name of the Holder or its designee, for the number of shares
of  Common  Stock  to  which  the  Holder  shall  be  entitled.  If this Note is
physically  surrendered  for conversion as required by Section 3(c)(iii) and the
outstanding  Principal of this Note is greater than the Principal portion of the
Conversion Amount being converted, then the Company shall as soon as practicable
and  in  no  event later than three (3) Business Days after receipt of this Note
and  at  its  own  expense,  issue  and  deliver  to  the  holder a new Note (in
accordance  with  Section  17(d))  representing  the  outstanding  Principal not
converted.  The Person or Persons entitled to receive the shares of Common Stock
issuable upon a conversion of this Note shall be treated for all purposes as the
record  holder or holders of such shares of Common Stock on the Conversion Date.

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(ii)     Company's Failure to Timely Convert.  If the Company shall fail to
issue a certificate to the Holder or credit the Holder's balance account with
DTC for the number of shares of Common Stock to which the Holder is entitled
upon conversion of any Conversion Amount on or prior to the date which is three
(3) Trading Days after the Conversion Date (a "CONVERSION FAILURE"), then the
Holder, upon written notice to the Company, may void its Conversion Notice with
respect to, and retain or have returned, as the case may be, any portion of this
Note that has not been converted pursuant to such Conversion Notice.  In
addition to the foregoing, if within three (3) Trading Days after the Company's
receipt of the facsimile copy of a Conversion Notice the Company shall fail to
issue and deliver a certificate to the Holder or credit the Holder's balance
account with DTC for the number of shares of Common Stock to which the Holder is
entitled upon such holder's conversion of any Conversion Amount (a "CONVERSION
FAILURE"), and if on or after such Trading Day the Holder purchases (in an open
market transaction or otherwise) Common Stock to deliver in satisfaction of a
sale by the Holder of Common Stock issuable upon such conversion that the Holder
anticipated receiving from the Company (a "BUY-IN"), then the Company shall,
within three (3) Business Days after the Holder's request and in the Holder's
discretion, either (i) pay cash to the Holder in an amount equal to the Holder's
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased (the "BUY-IN PRICE"), at which point the Company's
obligation to deliver such certificate (and to issue such Common Stock) shall
terminate, or (ii) promptly honor its obligation to deliver to the Holder a
certificate or certificates representing such Common Stock and pay cash to the
Holder in an amount equal to the excess (if any) of the Buy-In Price over the
product of (A) such number of shares of Common Stock, times (B) the Closing Bid
Price on the Conversion Date.

(iii)     Book-Entry. Notwithstanding anything to the contrary set forth herein,
upon conversion of any portion of this Note in accordance with the terms hereof,
the Holder shall not be required to physically surrender this Note to the
Company unless (A) the full Conversion Amount represented by this Note is being
converted or (B) the Holder has provided the Company with prior written notice
(which notice may be included in a Conversion Notice) requesting reissuance of
this Note upon physical surrender of this Note.  The Holder and the Company
shall maintain records showing the Principal, Interest and Late Charges
converted and the dates of such conversions or shall use such other method,
reasonably satisfactory to the Holder and the Company, so as not to require
physical surrender of this Note upon conversion.

(iv)     Pro Rata Conversion; Disputes.  In the event that the Company receives
a Conversion Notice from more than one holder of Notes for the same Conversion
Date and the Company can convert some, but not all, of such portions of the
Notes submitted for conversion, the Company, subject to Section 3(d), shall
convert from each holder of Notes electing to have Notes converted on such date
a pro rata amount of such holder's portion of its Notes submitted for conversion
based on the principal amount of Notes submitted for conversion on such date by
such holder relative to the aggregate principal amount of all Notes submitted
for conversion on such date.  In the event of a dispute as to the number of
shares of Common Stock issuable to the Holder in connection with a conversion of
this Note, the Company shall issue to the Holder the number of shares of Common
Stock not in dispute and resolve such dispute in accordance with Section 22.

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(d)     Limitations on Conversions.  The Company shall not effect any conversion
     of  this  Note,  and  the  Holder  of this Note shall not have the right to
convert  any  portion  of this Note pursuant to Section 3(a), to the extent that
after  giving  effect to such conversion, the Holder (together with the Holder's
affiliates) would beneficially own in excess of 4.99% (the "MAXIMUM PERCENTAGE")
of  the  number  of  shares of Common Stock outstanding immediately after giving
effect  to  such conversion.  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 conversion of
this  Note  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) conversion of the remaining, nonconverted portion of this Note
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 3(d), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange  Act  of  1934,  as  amended.  For  purposes  of  this Section 3(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-Q  or  Form 8-K, 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.  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 Note, by the Holder or its affiliates
since the date as of which such number of outstanding shares of Common Stock was
reported.  By written notice to the Company, the Holder may increase or decrease
the  Maximum Percentage to any other percentage not in excess of 9.99% specified
in  such notice; provided that (i) any such increase will not be effective until
the  sixty-first  (61st)  day after such notice is delivered to the Company, and
(ii)  any such increase or decrease will apply only to the Holder and not to any
other  holder  of  Notes.

(4)     RIGHTS  UPON  EVENT  OF  DEFAULT.

(a)     Event  of  Default.  Each  of  the  following events shall constitute an
"EVENT  OF  DEFAULT":

(i)     the  Company's  (A)  failure to cure a Conversion Failure by delivery of
the  required  number  of  shares  of Common Stock within ten (10) Business Days
after  the  applicable  Conversion  Date  or (B) notice, written or oral, to any
holder  of  the Notes, including by way of public announcement or through any of
its  agents,  at  any  time,  of  its intention not to comply with a request for
conversion  of  any  Notes  into  shares  of  Common  Stock  that is tendered in
accordance  with  the  provisions  of  the Notes, other than pursuant to Section
3(d);

(ii)     at any time following the tenth (10th) consecutive Business Day that
the Holder's Authorized Share Allocation is less than the number of shares of
Common Stock that the Holder would be entitled to receive upon a conversion of

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<PAGE>

the full Conversion Amount of this Note (without regard to any limitations on
conversion set forth in Section 3(d) or otherwise);

(iii)     the Company's failure to pay to the Holder any amount of Principal,
Interest, Late Charges or other amounts when and as due under this Note
(including, without limitation, the Company's failure to pay any redemption
payments or amounts hereunder) or any other Transaction Document (as defined in
the Securities Purchase Agreement) or any other agreement, document, certificate
or other instrument delivered in connection with the transactions contemplated
hereby and thereby to which the Holder is a party, except, in the case of a
failure to pay Interest and Late Charges when and as due, in which case only if
such failure continues for a period of at least fifteen (15) Business Days;

(iv)     any default under, redemption of or acceleration prior to maturity of
any Indebtedness (as defined in Section 3(s) of the Securities Purchase
Agreement) in excess of $100,000 of the Company or any of its Subsidiaries (as
defined in Section 3(a) of the Securities Purchase Agreement) other than with
respect to any Other Notes;

(v)     the Company or any of its Subsidiaries, pursuant to or within the
meaning of Title 11, U.S. Code, or any similar federal, foreign or state law for
the relief of debtors (collectively, "BANKRUPTCY LAW"), (A) commences a
voluntary case, (B) consents to the entry of an order for relief against it in
an involuntary case, (C) consents to the appointment of a receiver, trustee,
assignee, liquidator or similar official (a "CUSTODIAN"), or (D) makes a general
assignment for the benefit of its creditors;

(vi)     a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that (A) is for relief against the Company or any of its
Subsidiaries in an involuntary case, (B) appoints a Custodian of the Company or
any of its Subsidiaries or (C) orders the liquidation of the Company or any of
its Subsidiaries;

(vii)     a final judgment or judgments for the payment of money aggregating in
excess of $100,000 are rendered against the Company or any of its Subsidiaries
and which judgments are not, within sixty (60) days after the entry thereof,
bonded, discharged or stayed pending appeal, or are not discharged within sixty
(60) days after the expiration of such stay; provided, however, that any
judgment which is covered by insurance or an indemnity from a credit worthy
party shall not be included in calculating the $100,000 amount set forth above
so long as the Company provides the Holder a written statement from such insurer
or indemnity provider (which written statement shall be reasonably satisfactory
to the Holder) to the effect that such judgment is covered by insurance or an
indemnity and the Company will receive the proceeds of such insurance or
indemnity within thirty (30) days of the issuance of such judgment;

(viii)     the Company breaches any representation, warranty, covenant or other
term or condition of any Transaction Document, except, in the case of a breach
of a covenant or other term or condition of any Transaction Document which is
curable, only if such breach continues for a period of at least fifteen (15)
consecutive Business Days;

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(ix)     any breach or failure in any respect to comply with Section 13 of this
Note; or

(x)     any Event of Default (as defined in the Other Notes) occurs with respect
to any Other Notes.

(b)     Redemption  Right.  Promptly after the occurrence of an Event of Default
with  respect  to this Note or any Other Note, the Company shall deliver written
notice  thereof  via  facsimile  and  overnight  courier  (an  "EVENT OF DEFAULT
NOTICE")  to  the Holder.  At any time after the earlier of the Holder's receipt
of  an  Event  of  Default  Notice  and the Holder becoming aware of an Event of
Default, the Holder may require the Company to redeem all or any portion of this
     Note by delivering written notice thereof (the "EVENT OF DEFAULT REDEMPTION
NOTICE") to the Company, which Event of Default Redemption Notice shall indicate
the portion of this Note the Holder is electing to redeem.  Each portion of this
Note subject to redemption by the Company pursuant to this Section 4(b) shall be
redeemed  by  the  Company at a price equal to the product of (x) the sum of the
Conversion  Amount to be redeemed together with accrued and unpaid Interest with
respect  to  such  Conversion  Amount  and  accrued and unpaid Late Charges with
respect  to  such  Conversion Amount and Interest and (y) the Redemption Premium
(the "EVENT OF DEFAULT REDEMPTION PRICE").  Redemptions required by this Section
4(b)  shall  be  made  in  accordance with the provisions of Section 11.  To the
extent  redemptions  required by this Section 4(b) are deemed or determined by a
court  of  competent  jurisdiction to be prepayments of the Note by the Company,
such  redemptions  shall  be  deemed  to  be voluntary prepayments.  The parties
hereto agree that in the event of the Company's redemption of any portion of the
Note  under  this  Section  4(b),  the  Holder's  damages would be uncertain and
difficult  to  estimate  because  of  the  parties'  inability to predict future
interest  rates and the uncertainty of the availability of a suitable substitute
investment  opportunity for the Holder.  Accordingly, any Redemption Premium due
under this Section 4(b) is intended by the parties to be, and shall be deemed, a
reasonable  estimate  of  the Holder's actual loss of its investment opportunity
and  not  as  a  penalty.

(5)     RIGHTS  UPON  FUNDAMENTAL  TRANSACTION  AND  CHANGE  OF  CONTROL.

(a)     Assumption.  The  Company  shall  not  enter  into  or  be  party  to  a
Fundamental  Transaction  unless (i) the Successor Entity assumes in writing all
of  the  obligations  of  the  Company under this Note and the other Transaction
Documents  in  accordance  with  the provisions of this Section 5(a) pursuant to
written agreements in form and substance reasonably satisfactory to the Required
     Holders  and  approved  by  the  Required Holders prior to such Fundamental
Transaction, including agreements to deliver to each holder of Notes in exchange
for  such  Notes  a  security  of  the  Successor  Entity evidenced by a written
instrument  substantially similar in form and substance to the Notes, including,
without  limitation,  having  a  principal amount and interest rate equal to the
principal  amounts  and  the interest rates of the Notes held by such holder and
having  similar  ranking  to the Notes, and satisfactory to the Required Holders
and  (ii)  the  Successor  Entity  (including  its  Parent Entity) is a publicly
traded  corporation  whose common stock is quoted on or listed for trading on an

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Eligible  Market  (a  "PUBLIC  SUCCESSOR  ENTITY").  Upon  the occurrence of any
Fundamental  Transaction,  the  Successor  Entity  shall  succeed  to,  and  be
substituted  for  (so  that  from  and  after  the  date  of  such  Fundamental
Transaction,  the provisions of this Note referring to the "Company" shall refer
instead  to the Successor Entity), and may exercise every right and power of the
Company  and  shall assume all of the obligations of the Company under this Note
with  the  same effect as if such Successor Entity had been named as the Company
herein.  Upon  consummation of the Fundamental Transaction, the Successor Entity
shall  deliver  to  the  Holder  confirmation  that  there  shall be issued upon
conversion  or redemption of this Note at any time after the consummation of the
Fundamental Transaction, in lieu of the shares of the Company's Common Stock (or
other  securities,  cash,  assets  or  other  property)  purchasable  upon  the
conversion  or  redemption  of  the Notes prior to such Fundamental Transaction,
such  shares  of  the  publicly  traded  common stock (or its equivalent) of the
Successor  Entity  (including its Parent Entity), as adjusted in accordance with
the  provisions  of  this  Note.  The  provisions  of  this  Section shall apply
similarly  and  equally  to  successive  Fundamental  Transactions  and shall be
applied  without  regard  to  any limitations on the conversion or redemption of
this  Note.

(b)     Redemption Right.  No sooner than fifteen (15) days nor later than ten
(10) days prior to the consummation of a Change of Control, but not prior to the
public announcement of such Change of Control, the Company shall deliver written
notice thereof via facsimile and overnight courier to the Holder (a "CHANGE OF
CONTROL NOTICE").  At any time during the period beginning after the Holder's
receipt of a Change of Control Notice and ending on the date of the consummation
of such Change of Control (or, in the event a Change of Control Notice is not
delivered at least ten (10) days prior to a Change of Control, at any time on or
after the date which is ten (10) days prior to a Change of Control and ending
ten (10) days after the consummation of such Change of Control), the Holder may
require the Company to redeem all or any portion of this Note by delivering
written notice thereof ("CHANGE OF CONTROL REDEMPTION NOTICE") to the Company,
which Change of Control Redemption Notice shall indicate the Conversion Amount
the Holder is electing to redeem.  The portion of this Note subject to
redemption pursuant to this Section 5(b) shall be redeemed by the Company at a
price equal to the greater of (i) the product of (x) 125% of the sum of the
Conversion Amount being redeemed together with accrued and unpaid Interest with
respect to such Conversion Amount and accrued and unpaid Late Charges with
respect to such Conversion Amount and Interest and (y) the quotient determined
by dividing (A) the Closing Sale Price of the Common Stock immediately following
the public announcement of such proposed Change of Control by (B) the Conversion
Price and (ii) 125% of the sum of the Conversion Amount being redeemed together
with accrued and unpaid Interest with respect to such Conversion Amount and
accrued and unpaid Late Charges with respect to such Conversion Amount and
Interest (the "CHANGE OF CONTROL REDEMPTION PRICE").  Redemptions required by
this Section 5(b) shall be made in accordance with the provisions of Section 11
and shall have priority to payments to stockholders in connection with a Change
of Control.  To the extent redemptions required by this Section 5(b) are deemed
or determined by a court of competent jurisdiction to be prepayments of the Note
by the Company, such redemptions shall be deemed to be voluntary prepayments.
Notwithstanding anything to the contrary in this Section 5, but subject to
Section 3(d), until the Change of Control Redemption Price (together with any
interest thereon) is paid in full, the Conversion Amount submitted for
redemption under this Section 5(b) (together with any interest thereon) may be
converted, in whole or in part, by the Holder into Common Stock pursuant to
Section 3.  The parties hereto agree that in the event of the Company's
redemption of any portion of the Note under this Section 5(b), the Holder's
damages would be uncertain and difficult to estimate because of the parties'
inability to predict future interest rates and the uncertainty of the
availability of a suitable substitute investment opportunity for the Holder.

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Accordingly, any redemption premium due under this Section 5(b) is intended by
the parties to be, and shall be deemed, a reasonable estimate of the Holder's
actual loss of its investment opportunity and not as a penalty.

(6)     RIGHTS  UPON  ISSUANCE  OF  PURCHASE  RIGHTS AND OTHER CORPORATE EVENTS.

(a)     Purchase Rights.  If at any time the Company grants, issues or sells any
     Options,  Convertible  Securities  or  rights  to purchase stock, warrants,
securities  or  other  property  pro  rata to the record holders of any class of
Common  Stock  (the  "PURCHASE  RIGHTS"),  then  the  Holder will be entitled to
acquire,  upon  the  terms  applicable  to  such  Purchase Rights, the aggregate
Purchase  Rights which the Holder could have acquired if the Holder had held the
number  of  shares  of  Common Stock acquirable upon complete conversion of this
Note  (without  taking  into  account  any  limitations  or  restrictions on the
convertibility  of  this  Note) immediately before the date on which a record is
taken  for  the  grant, issuance or sale of such Purchase Rights, or, if no such
record  is taken, the date as of which the record holders of Common Stock are to
be  determined  for  the  grant,  issue  or  sale  of  such  Purchase  Rights.

(b)     Other Corporate Events.  In addition to and not in substitution for any
other rights hereunder, prior to the consummation of any Fundamental Transaction
pursuant to which holders of shares of Common Stock are entitled to receive
securities or other assets with respect to or in exchange for shares of Common
Stock (a "CORPORATE EVENT"), the Company shall make appropriate provision to
insure that the Holder will thereafter have the right to receive upon a
conversion of this Note, (i) in addition to the shares of Common Stock
receivable upon such conversion, such securities or other assets to which the
Holder would have been entitled with respect to such shares of Common Stock had
such shares of Common Stock been held by the Holder upon the consummation of
such Corporate Event (without taking into account any limitations or
restrictions on the convertibility of this Note) or (ii) in lieu of the shares
of Common Stock otherwise receivable upon such conversion, such securities or
other assets received by the holders of shares of Common Stock in connection
with the consummation of such Corporate Event in such amounts as the Holder
would have been entitled to receive had this Note initially been issued with
conversion rights for the form of such consideration (as opposed to shares of
Common Stock) at a conversion rate for such consideration commensurate with the
Conversion Rate.  Provision made pursuant to the preceding sentence shall be in
a form and substance satisfactory to the Required Holders.  The provisions of
this Section shall apply similarly and equally to successive Corporate Events
and shall be applied without regard to any limitations on the conversion or
redemption of this Note.

(7)     RIGHTS  UPON  ISSUANCE  OF  OTHER  SECURITIES.

(a)     Adjustment  of  Conversion  Price upon Issuance of Common Stock.  If and
whenever  on  or after the Subscription Date, the Company issues or sells, or in
accordance  with  this Section 7(a) is deemed to have issued or sold, any shares
of  Common Stock (including the issuance or sale of shares of Common Stock owned
or  held  by  or  for the account of the Company, but excluding shares of Common
Stock  deemed  to have been issued or sold by the Company in connection with any

                                        9
<PAGE>

Excluded Security) for a consideration per share (the "NEW ISSUANCE PRICE") less
     than  a  price  (the  "APPLICABLE  PRICE") equal to the Conversion Price in
effect  immediately  prior  to  such  issue  or  sale (the foregoing a "DILUTIVE
ISSUANCE"),  then  immediately after such Dilutive Issuance the Conversion Price
then  in  effect  shall be reduced to an amount equal to the New Issuance Price.
For  purposes  of  determining  the adjusted Conversion Price under this Section
7(a),  the  following  shall  be  applicable:

(i)     Issuance  of  Options.  If the Company in any manner grants or sells any
Options  and  the  lowest price per share for which one share of Common Stock is
issuable  upon the exercise of any such Option or upon conversion or exchange or
exercise  of any Convertible Securities issuable upon exercise of such Option is
less  than the Applicable Price, then such share of Common Stock shall be deemed
to be outstanding and to have been issued and sold by the Company at the time of
     the granting or sale of such Option for such price per share.  For purposes
of  this  Section  7(a)(i),  the  "lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon conversion
or  exchange or exercise of any Convertible Securities issuable upon exercise of
such  Option"  shall  be equal to the sum of the lowest amounts of consideration
(if  any) received or receivable by the Company with respect to any one share of
Common  Stock  upon  granting or sale of the Option, upon exercise of the Option
and upon conversion or exchange or exercise of any Convertible Security issuable
upon  exercise  of  such  Option.  No further adjustment of the Conversion Price
shall  be  made  upon  the  actual  issuance  of  such  Common  Stock or of such
Convertible  Securities  upon  the  exercise  of such Options or upon the actual
issuance  of  such  Common Stock upon conversion or exchange or exercise of such
Convertible  Securities.

(ii)     Issuance of Convertible Securities.  If the Company in any manner
issues or sells any Convertible Securities and the lowest price per share for
which one share of Common Stock is issuable upon such conversion or exchange or
exercise thereof is less than the Applicable Price, then such share of Common
Stock shall be deemed to be outstanding and to have been issued and sold by the
Company at the time of the issuance of sale of such Convertible Securities for
such price per share.  For the purposes of this Section 7(a)(ii), the "price per
share for which one share of Common Stock is issuable upon such conversion or
exchange or exercise" shall be equal to the sum of the lowest amounts of
consideration (if any) received or receivable by the Company with respect to any
one share of Common Stock upon the issuance or sale of the Convertible Security
and upon the conversion or exchange or exercise of such Convertible Security.
No further adjustment of the Conversion Price shall be made upon the actual
issuance of such Common Stock upon conversion or exchange or exercise of such
Convertible Securities, and if any such issue or sale of such Convertible
Securities is made upon exercise of any Options for which adjustment of the
Conversion Price had been or are to be made pursuant to other provisions of this
Section 7(a), no further adjustment of the Conversion Price shall be made by
reason of such issue or sale.

(iii)     Change in Option Price or Rate of Conversion.  If the purchase price
provided for in any Options, the additional consideration, if any, payable upon
the issue, conversion, exchange or exercise of any Convertible Securities, or
the rate at which any Convertible Securities are convertible into or
exchangeable or exercisable for Common Stock changes at any time, the Conversion
Price in effect at the time of such change shall be adjusted to the Conversion
Price which would have been in effect at such time had such Options or

                                       10
<PAGE>

Convertible Securities provided for such changed purchase price, additional
consideration or changed conversion rate, as the case may be, at the time
initially granted, issued or sold.  For purposes of this Section 7(a)(iii), if
the terms of any Option or Convertible Security that was outstanding as of the
Subscription Date are changed in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the Common
Stock deemed issuable upon exercise, conversion or exchange thereof shall be
deemed to have been issued as of the date of such change.  No adjustment shall
be made if such adjustment would result in an increase of the Conversion Price
then in effect.

(iv)     Calculation of Consideration Received.  If any Common Stock, Options or
Convertible Securities are issued or sold or deemed to have been issued or sold
for cash, the consideration received therefor will be deemed to be the net
amount received by the Company therefor.  If any Common Stock, Options or
Convertible Securities are issued or sold for a consideration other than cash,
the amount of the consideration other than cash received by the Company will be
the fair value of such consideration, except where such consideration consists
of securities, in which case the amount of consideration received by the Company
will be the Closing Sale Price of such securities on the date of receipt.  If
any Common Stock, Options or Convertible Securities are issued to the owners of
the non-surviving entity in connection with any merger in which the Company is
the surviving entity, the amount of consideration therefor will be deemed to be
the fair value of such portion of the net assets and business of the
non-surviving entity as is attributable to such Common Stock, Options or
Convertible Securities, as the case may be.  The fair value of any consideration
other than cash or securities will be determined jointly by the Company and the
Required Holders.  If such parties are unable to reach agreement within ten (10)
days after the occurrence of an event requiring valuation (the "VALUATION
EVENT"), the fair value of such consideration will be determined within five (5)
Business Days after the tenth (10th) day following the Valuation Event by an
independent, reputable appraiser jointly selected by the Company and the
Required Holders.  The determination of such appraiser shall be deemed binding
upon all parties absent manifest error and the fees and expenses of such
appraiser shall be borne by the Company.

(v)     Record Date.  If the Company takes a record of the holders of Common
Stock for the purpose of entitling them (A) to receive a dividend or other
distribution payable in Common Stock, Options or in Convertible Securities or
(B) to subscribe for or purchase Common Stock, Options or Convertible
Securities, then such record date will be deemed to be the date of the issue or
sale of the Common Stock deemed to have been issued or sold upon the declaration
of such dividend or the making of such other distribution or the date of the
granting of such right of subscription or purchase, as the case may be.

(b)     Adjustment of Conversion Price upon Subdivision or Combination of Common
     Stock.  If  the  Company  at  any  time  on  or after the Subscription Date
subdivides  (by  any stock split, stock dividend, recapitalization or otherwise)

                                       11
<PAGE>

one  or  more  classes  of its outstanding shares of Common Stock into a greater
number  of  shares,  the  Conversion  Price  in effect immediately prior to such
subdivision  will  be proportionately reduced.  If the Company at any time on or
after  the  Subscription  Date  combines (by combination, reverse stock split or
otherwise)  one or more classes of its outstanding shares of Common Stock into a
smaller  number  of  shares, the Conversion Price in effect immediately prior to
such  combination  will  be  proportionately  increased.

(c)     Other Events.  If any event occurs of the type contemplated by the
provisions of this Section 7 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights,
phantom stock rights or other rights with equity features), then the Company's
Board of Directors will make an appropriate adjustment in the Conversion Price
so as to protect the rights of the Holder under this Note; provided that no such
adjustment will increase the Conversion Price as otherwise determined pursuant
to this Section 7.

(d)     Redemption Right in the Event of Subsquent Financing.  If after the
Subscription Date the Company completes a financing transaction that results in
gross proceeds of at least $5,000,000, the Company shall promptly deliver
written notice thereof via facsimile and overnight courier (a "SUBSEQUENT
FINANCING NOTICE") to the Holder.  The Holder may require the Company to redeem
this Note by delivering written notice thereof ("SUBSEQUENT FINANCING REDEMPTION
NOTICE") to the Company within ten (10) Trading Days after the Company delivers
a Subsequent Financing Notice to the Holder.  The amount of this Note subject to
redemption by the Company pursuant to this Section 7(d) shall be redeemed by the
Company at a price equal to the sum of the Conversion Amount to be redeemed
together with accrued and unpaid Interest with respect to such Conversion Amount
and accrued and unpaid Late Charges with respect to such Conversion Amount and
Interest (the "SUBSEQUENT FINANCING REDEMPTION PRICE").  To the extent
redemptions required by this Section 7(d) are deemed or determined by a court of
competent jurisdiction to be prepayments of the Note by the Company, such
redemptions shall be deemed to be voluntary prepayments.  If the Holder has
submitted a Subsequent Financing Redemption Notice in accordance with this
Section 7(d), the Company shall deliver the Subsequent Financing Redemption
Price to the Holder within five Business Days of the Company's receipt of the
Holder's Subsequent Financing Redemption Notice.

(8)     COMPANY'S  RIGHT  OF MANDATORY CONVERSION.  If at any time (i) after the
Subscription  Date the Company completes a financing transaction that results in
gross  proceeds of at least $5,000,000, and (ii) the Holder does not require the
Company to redeem this Note pursuant to Section 7(d), the Company shall have the
     right  to  require the Holder to convert all, but not less than all, of the
Conversion Amount then remaining under this Note, as designated in the Mandatory
Conversion  Notice  (as  defined  below)  into  fully  paid,  validly issued and
nonassessable  shares  of Common Stock in accordance with Section 3(c) hereof at
the  Conversion  Rate  as of the Mandatory Conversion Date (as defined below) (a
"MANDATORY  CONVERSION").  The  Company  may  exercise  its  right  to  require
conversion  under this Section 8 by delivering within not more than fifteen (15)
Trading  Days  following  the date the Company completes a financing transaction
that  results  in gross proceeds of at least $5,000,000 a written notice thereof
by facsimile and overnight courier to all, but not less than all, of the holders
of  Notes  (the  "MANDATORY  CONVERSION  NOTICE" and the date all of the holders
received  such  notice  by facsimile is referred to as the "MANDATORY CONVERSION
NOTICE  DATE").  The  Mandatory  Conversion  Notice  shall  be irrevocable.  The

                                       12
<PAGE>

Mandatory  Conversion  Notice  shall  state (i) the Trading Day selected for the
Mandatory  Conversion in accordance with this Section 8, which Trading Day shall
be at least twenty (20) Business Days but not more than sixty (60) Business Days
following  the  Mandatory  Conversion  Notice  Date  (the  "MANDATORY CONVERSION
DATE"),  (ii)  the aggregate Conversion Amount of the Notes subject to mandatory
conversion  from the Holder and all of the holders of the Notes pursuant to this
Section  8 (and analogous provisions under the Other Notes) and (iii) the number
of  shares  of  Common  Stock  to  be  issued  to  such  Holder on the Mandatory
Conversion  Date.  Any  shares  of  Common  Stock delivered in connection with a
Mandatory  Conversion  hereunder  shall be accompanied by any accrued and unpaid
Interest  with  respect  to  such  Conversion  Amount  subject to such Mandatory
Conversion  and  accrued and unpaid Late Charges with respect to such Conversion
Amount  and  Interest.  If  the  Company has elected a Mandatory Conversion, the
mechanics  of  conversion  set  forth in Section 3(c) shall apply, to the extent
applicable,  as  if  the  Company  had received from the Holder on the Mandatory
Conversion  Date a Conversion Notice with respect to the Conversion Amount being
converted  pursuant  to  the  Mandatory  Conversion.

(9)     NONCIRCUMVENTION.  The  Company  hereby  covenants  and  agrees that the
Company  will  not,  by  amendment  of  its Articles of Incorporation, Bylaws or
through any reorganization, transfer of assets, consolidation, merger, scheme of
     arrangement,  dissolution,  issue  or  sale  of  securities,  or  any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Note, and will at all times in good faith carry out all of the
provisions  of  this  Note and take all action as may be required to protect the
rights  of  the  Holder  of  this  Note.

(10)     RESERVATION OF AUTHORIZED SHARES.

(a)     Reservation.  The  Company shall initially reserve out of its authorized
and  unissued  Common  Stock  a number of shares of Common Stock for each of the
Notes equal to 125% of the Conversion Rate with respect to the Conversion Amount
     of each such Note as of the Issuance Date.  So long as any of the Notes are
outstanding,  the  Company  shall  take all action necessary to reserve and keep
available  out  of  its  authorized  and  unissued  Common Stock, solely for the
purpose  of  effecting the conversion of the Notes, 125% of the number of shares
of Common Stock as shall from time to time be necessary to effect the conversion
of  all of the Notes then outstanding; provided that at no time shall the number
of shares of Common Stock so reserved be less than the number of shares required
to  be  reserved  by the previous sentence (without regard to any limitations on
conversions)  (the  "REQUIRED RESERVE AMOUNT").  The initial number of shares of
Common  Stock  reserved  for  conversions  of the Notes and each increase in the
number  of  shares  so reserved shall be allocated pro rata among the holders of
the  Notes based on the principal amount of the Notes held by each holder at the
Closing  (as  defined  in  the Securities Purchase Agreement) or increase in the
number  of  reserved  shares,  as  the  case  may  be  (the  "AUTHORIZED  SHARE
ALLOCATION").  In  the  event that a holder shall sell or otherwise transfer any
of such holder's Notes, each transferee shall be allocated a pro rata portion of
such  holder's Authorized Share Allocation.  Any shares of Common Stock reserved
and allocated to any Person which ceases to hold any Notes shall be allocated to
the  remaining  holders  of Notes, pro rata based on the principal amount of the
Notes  then  held  by  such  holders.

                                       13
<PAGE>

(b)     Insufficient Authorized Shares.  If at any time while any of the Notes
remain outstanding the Company does not have a sufficient number of authorized
and unreserved shares of Common Stock to satisfy its obligation to reserve for
issuance upon conversion of the Notes at least a number of shares of Common
Stock equal to the Required Reserve Amount (an "AUTHORIZED SHARE FAILURE"), then
the Company shall immediately take all action necessary to increase the
Company's authorized shares of Common Stock to an amount sufficient to allow the
Company to reserve the Required Reserve Amount for the Notes then outstanding.
Without limiting the generality of the foregoing sentence, as soon as
practicable after the date of the occurrence of an Authorized Share Failure, but
in no event later than sixty (60) days after the occurrence of such Authorized
Share Failure, the Company shall hold a meeting of its stockholders for the
approval of an increase in the number of authorized shares of Common Stock.  In
connection with such meeting, the Company shall provide each stockholder with a
proxy statement and shall use its best efforts to solicit its stockholders'
approval of such increase in authorized shares of Common Stock and to cause its
board of directors to recommend to the stockholders that they approve such
proposal.

(11)     HOLDER'S  REDEMPTIONS.

(a)     Mechanics.  The  Company  shall  deliver the applicable Event of Default
Redemption  Price  to  the  Holder within five Business Days after the Company's
receipt  of  the Holder's Event of Default Redemption Notice.  If the Holder has
submitted a Change of Control Redemption Notice in accordance with Section 5(b),
     the Company shall deliver the applicable Change of Control Redemption Price
to  the  Holder  concurrently with the consummation of such Change of Control if
such  notice is received prior to the consummation of such Change of Control and
within  five  (5)  Business  Days  after  the  Company's  receipt of such notice
otherwise.  In  the  event  of  a  redemption of less than all of the Conversion
Amount of this Note, the Company shall promptly cause to be issued and delivered
to  the  Holder  a  new Note (in accordance with Section 17(d)) representing the
outstanding  Principal  which  has  not  been  redeemed.  In  the event that the
Company  does  not  pay the applicable Redemption Price to the Holder within the
time  period  required,  at  any time thereafter and until the Company pays such
unpaid  Redemption  Price  in full, the Holder shall have the option, in lieu of
redemption,  to  require the Company to promptly return to the Holder all or any
portion  of  this Note representing the Conversion Amount that was submitted for
redemption and for which the applicable Redemption Price (together with any Late
Charges  thereon) has not been paid.  Upon the Company's receipt of such notice,
(x) the applicable Redemption Notice shall be null and void with respect to such
Conversion  Amount, (y) the Company shall immediately return this Note, or issue
a new Note (in accordance with Section 17(d)) to the Holder representing the sum
of  such  Conversion  Amount  to  be  redeemed  together with accrued and unpaid
Interest  with  respect  to  such  Conversion Amount and accrued and unpaid Late
Charges  with  respect  to  such  Conversion  Amount  and  Interest  and (z) the
Conversion  Price of this Note or such new Notes shall be adjusted to the lesser
of  (A)  the  Conversion  Price as in effect on the date on which the applicable
Redemption  Notice  is voided and (B) the lowest Closing Bid Price of the Common
Stock  during  the  period  beginning  on  and  including  the date on which the
applicable  Redemption  Notice  is  delivered  to  the Company and ending on and
including  the  date  on  which the applicable Redemption Notice is voided.  The
Holder's  delivery  of  a notice voiding a Redemption Notice and exercise of its

                                       14
<PAGE>

rights  following such notice shall not affect the Company's obligations to make
any payments of Late Charges which have accrued prior to the date of such notice
with  respect  to  the  Conversion  Amount  subject  to  such  notice.

(b)     Redemption by Other Holders.  Upon the Company's receipt of notice from
any of the holders of the Other Notes for redemption or repayment as a result of
an event or occurrence substantially similar to the events or occurrences
described in Section 4(b) or Section 5(b) (each, an "OTHER REDEMPTION NOTICE"),
the Company shall immediately forward to the Holder by facsimile a copy of such
notice.  If the Company receives a Redemption Notice and one or more Other
Redemption Notices, during the seven (7) Business Day period beginning on and
including the date which is three (3) Business Days prior to the Company's
receipt of the Holder's Redemption Notice and ending on and including the date
which is three (3) Business Days after the Company's receipt of the Holder's
Redemption Notice and the Company is unable to redeem all principal, interest
and other amounts designated in such Redemption Notice and such Other Redemption
Notices received during such seven (7) Business Day period, then the Company
shall redeem a pro rata amount from each holder of the Notes (including the
Holder) based on the principal amount of the Notes submitted for redemption
pursuant to such Redemption Notice and such Other Redemption Notices received by
the Company during such seven Business Day period.

(12)     VOTING RIGHTS.  The Holder shall have no voting rights as the holder of
     this  Note,  except  as required by law, including, but not limited to, the
corporate  law  of  the State of Nevada, and as expressly provided in this Note.

(13)     COVENANTS.

(a)     Rank.     All  payments  due  under  this Note (a) shall rank pari passu
with  all  Other  Notes and (b) shall be senior to all other Indebtedness of the
Company  and  its  Subsidiaries.

(b)     Existence of Liens.  So long as this Note is outstanding, the Company
shall not, and the Company shall not permit any of its Subsidiaries to, directly
or indirectly, allow or suffer to exist any mortgage, lien, pledge, charge,
security interest or other encumbrance upon or in any property or assets
(including accounts and contract rights) owned by the Company or any of its
Subsidiaries (collectively, "LIENS") other than Permitted Liens.

(c)     Restricted Payments.  The Company shall not, and the Company shall not
permit any of its Subsidiaries to, directly or indirectly, redeem, defease,
repurchase, repay or make any payments in respect of, by the payment of cash or
cash equivalents (in whole or in part, whether by way of open market purchases,
tender offers, private transactions or otherwise), all or any portion of any
Permitted Indebtedness, whether by way of payment in respect of principal of (or
premium, if any) or interest on, such Indebtedness if at the time such payment
is due or is otherwise made or, after giving effect to such payment, an event
constituting, or that with the passage of time and without being cured would
constitute, an Event of Default has occurred and is continuing.

(d)     Restriction on Transfer of Assets.  Other than in connection with a
Fundamental Transaction, the Company shall not, and shall not permit any
Subsidiary to sell, lease, convey or otherwise dispose of any assets or rights

                                       15
<PAGE>

of the Company, or Subsidiaries taken as a whole, owned or hereafter acquired
whether in a single transaction or a series of related transactions, that have
fair market value in excess of $100,000 in any twelve (12) month period.

(14)     PARTICIPATION.  The  Holder,  as  the  holder  of  this  Note, shall be
entitled to receive such dividends paid and distributions made to the holders of
     Common  Stock  to  the same extent as if the Holder had converted this Note
into  Common  Stock  (without  regard to any limitations on conversion herein or
elsewhere)  and had held such shares of Common Stock on the record date for such
dividends  and  distributions.  Payments  under  the preceding sentence shall be
made  concurrently  with  the  dividend or distribution to the holders of Common
Stock.

(15)     VOTE TO ISSUE, OR CHANGE THE TERMS OF, NOTES.  The affirmative vote at
a meeting duly called for such purpose or the written consent without a meeting
of the Required Holders shall be required for any change or amendment to this
Note or the Other Notes.

(16)     TRANSFER.  This Note and any shares of Common Stock issued upon
conversion of this Note may be offered, sold, assigned or transferred by the
Holder without the consent of the Company, subject only to the provisions of
Section 2(g) of the Securities Purchase Agreement.

(17)     REISSUANCE  OF  THIS  NOTE.

(a)     Transfer.  If this Note is to be transferred, the Holder shall surrender
     this  Note  to  the Company, whereupon the Company will forthwith issue and
deliver  upon  the  order  of  the Holder a new Note (in accordance with Section
17(d)),  registered  as  the  Holder  may  request, representing the outstanding
Principal  being  transferred  by  the  Holder  and,  if  less  then  the entire
outstanding  Principal  is  being  transferred,  a  new Note (in accordance with
Section  17(d))  to  the Holder representing the outstanding Principal not being
transferred.  The  Holder  and  any  assignee,  by  acceptance  of  this  Note,
acknowledge  and  agree  that,  by reason of the provisions of Section 3(c)(iii)
following  conversion or redemption of any portion of this Note, the outstanding
Principal  represented by this Note may be less than the Principal stated on the
face  of  this  Note.

(b)     Lost, Stolen or Mutilated Note.  Upon receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Note, and, in the case of loss, theft or destruction, of any
indemnification undertaking by the Holder to the Company in customary form and,
in the case of mutilation, upon surrender and cancellation of this Note, the
Company shall execute and deliver to the Holder a new Note (in accordance with
Section 17(d)) representing the outstanding Principal.

(c)     Note Exchangeable for Different Denominations.  This Note is
exchangeable, upon the surrender hereof by the Holder at the principal office of
the Company, for a new Note or Notes (in accordance with Section 17(d) and in
principal amounts of at least $100,000) representing in the aggregate the

                                       16
<PAGE>

outstanding Principal of this Note, and each such new Note will represent such
portion of such outstanding Principal as is designated by the Holder at the time
of such surrender.

(d)     Issuance of New Notes.  Whenever the Company is required to issue a new
Note pursuant to the terms of this Note, such new Note (i) shall be of like
tenor with this Note, (ii) shall represent, as indicated on the face of such new
Note, the Principal remaining outstanding (or in the case of a new Note being
issued pursuant to Section 17(a) or Section 17(c), the Principal designated by
the Holder which, when added to the principal represented by the other new Notes
issued in connection with such issuance, does not exceed the Principal remaining
outstanding under this Note immediately prior to such issuance of new Notes),
(iii) shall have an issuance date, as indicated on the face of such new Note,
which is the same as the Issuance Date of this Note, (iv) shall have the same
rights and conditions as this Note, and (v) shall represent accrued Interest and
Late Charges on the Principal and Interest of this Note, from the Issuance Date.

(18)     REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE
     RELIEF.  The  remedies  provided  in  this  Note shall be cumulative and in
addition  to  all  other remedies available under this Note and any of the other
Transaction  Documents  at  law  or  in  equity  (including a decree of specific
performance  and/or other injunctive relief), and nothing herein shall limit the
Holder's right to pursue actual and consequential damages for any failure by the
Company  to  comply  with the terms of this Note.  Amounts set forth or provided
for  herein  with  respect  to  payments,  conversion  and  the  like  (and  the
computation thereof) shall be the amounts to be received by the Holder and shall
not,  except as expressly provided herein, be subject to any other obligation of
the  Company  (or  the  performance  thereof).  The  Company acknowledges that a
breach  by  it  of  its obligations hereunder will cause irreparable harm to the
Holder  and  that  the remedy at law for any such breach may be inadequate.  The
Company  therefore  agrees  that,  in the event of any such breach or threatened
breach,  the  Holder  shall  be  entitled,  in  addition  to all other available
remedies,  to  an  injunction  restraining  any breach, without the necessity of
showing  economic  loss  and  without any bond or other security being required.

(19)     PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS.  If (a) this Note
is placed in the hands of an attorney for collection or enforcement or is
collected or enforced through any legal proceeding or the Holder otherwise takes
action to collect amounts due under this Note or to enforce the provisions of
this Note or (b) there occurs any bankruptcy, reorganization, receivership of
the Company or other proceedings affecting Company creditors' rights and
involving a claim under this Note, then the Company shall pay the costs incurred
by the Holder for such collection, enforcement or action or in connection with
such bankruptcy, reorganization, receivership or other proceeding, including,
but not limited to, attorneys' fees and disbursements.

(20)     CONSTRUCTION; HEADINGS.  This Note shall be deemed to be jointly
drafted by the Company and all the Purchasers and shall not be construed against
any person as the drafter hereof.  The headings of this Note are for convenience
of reference and shall not form part of, or affect the interpretation of, this
Note.

(21)     FAILURE OR INDULGENCE NOT WAIVER.  No failure or delay on the part of
the Holder in the exercise of any power, right or privilege hereunder shall

                                       17
<PAGE>

operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or privilege preclude other or further exercise thereof or of
any other right, power or privilege.

(22)     DISPUTE RESOLUTION.  In the case of a dispute as to the determination
of the Closing Bid Price, the Closing Sale Price or the Weighted Average Price
or the arithmetic calculation of the Conversion Rate or the Redemption Price,
the Company shall submit the disputed determinations or arithmetic calculations
via facsimile within two (2) Business Days of receipt, or deemed receipt, of the
Conversion Notice or Redemption Notice or other event giving rise to such
dispute, as the case may be, to the Holder.  If the Holder and the Company are
unable to agree upon such determination or calculation within two (2) Business
Days of such disputed determination or arithmetic calculation being submitted to
the Holder, then the Company shall, within two (2) Business Days submit via
facsimile (a) the disputed determination of the Closing Bid Price, the Closing
Sale Price or the Weighted Average Price to an independent, reputable investment
bank selected by the Company and approved by the Holder or (b) the disputed
arithmetic calculation of the Conversion Rate or the Redemption Price to the
Company's independent, outside accountant.  The Company, at the Company's
expense, shall cause the investment bank or the accountant, as the case may be,
to perform the determinations or calculations and notify the Company and the
Holder of the results no later than five (5) Business Days from the time it
receives the disputed determinations or calculations.  Such investment bank's or
accountant's determination or calculation, as the case may be, shall be binding
upon all parties absent demonstrable error.

(23)     NOTICES;  CURRENCY;  TAXES;  PAYMENTS.

(a)     Notices.  Whenever  notice  is  required  to  be  given under this Note,
unless  otherwise provided herein, such notice shall be given in accordance with
Section  9(f)  of  the Securities Purchase Agreement.  The Company shall provide
the  Holder  with  prompt  written  notice of all actions taken pursuant to this
Note, including in reasonable detail a description of such action and the reason
     therefore.  Without  limiting  the generality of the foregoing, the Company
will  give  written  notice to the Holder (i) immediately upon any adjustment of
the  Conversion  Price,  setting forth in reasonable detail, and certifying, the
calculation  of  such adjustment and (ii) at least twenty (20) days prior to the
date on which the Company closes its books or takes a record (A) with respect to
any  dividend or distribution upon the Common Stock, (B) with respect to any pro
rata subscription offer to holders of Common Stock or (C) for determining rights
to vote with respect to any Fundamental Transaction, dissolution or liquidation,
provided  in  each  case that such information shall be made known to the public
prior  to  or  in  conjunction  with  such  notice being provided to the Holder.

(b)     Currency.  All principal, interest and other amounts owing under this
Note or any Transaction Document that, in accordance with their terms, are paid
in cash shall be paid in US dollars.   All amounts denominated in other
currencies shall be converted in the US dollar equivalent amount in accordance
with the Exchange Rate on the date of calculation. "EXCHANGE RATE" means, in
relation to any amount of currency to be converted into US dollars pursuant to
this Note, the US dollar exchange rate as published in the Wall Street Journal
on the relevant date of calculation (it being understood and agreed that where

                                       18
<PAGE>

an amount is calculated with reference to, or over, a period of time, the date
of calculation shall be the final date of such period of time).

(c)     Taxes.

(i)     Any  and  all  payments  made  by  the  Company hereunder, including any
amounts  received  on  a conversion or redemption of the Note and any amounts on
account  of  interest  or  deemed  interest,  must be made by it without any tax
deduction,  unless  a  tax deduction is required by law. If the Company is aware
that  it must make a tax deduction (or that there is a change in the rate or the
basis  of  a  tax  deduction),  it  must  notify  the  Holder  promptly.

(ii)     If a tax deduction is required by law to be made by the Company, the
amount of the payment due from the Company will be increased to an amount which
(after making the tax deduction) leaves an amount equal to the payment which
would have been due if no tax deduction had been required. If the Company is
required to make a tax deduction, it must make the minimum tax deduction allowed
by law and must make any payment required in connection with that tax deduction
within the time allowed by law.

(iii)     As soon as practicable after making a tax deduction or a payment
required in connection with a tax deduction, the Company must deliver to the
Holder any official receipt or form, if any, provided by or required by the
taxing authority to whom the tax deduction was paid.

(iv)     In addition, the Company agrees to pay in accordance with applicable
law any present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies that arise from any payment made
hereunder or in connection with the execution, delivery, registration or
performance of, or otherwise with respect to, this Note ("OTHER TAXES").  As
soon as practicable after making a payment of Other Taxes, the Company must
deliver to the Holder any official receipt or form, if any, provided by or
required by the taxing authority to whom the tax deduction was paid.

(d)     Payments.  Whenever  any payment of cash is to be made by the Company to
any  Person pursuant to this Note, such payment shall be made in lawful money of
the  United States of America by a check drawn on the account of the Company and
sent  via overnight courier service to such Person at such address as previously
provided  to  the  Company in writing (which address, in the case of each of the
Purchasers,  shall  initially be as set forth on the Schedule of Buyers attached
to  the  Securities  Purchase  Agreement); provided that the Holder may elect to
receive  a  payment  of cash via wire transfer of immediately available funds by
providing the Company with prior written notice setting out such request and the
     Holder's  wire  transfer instructions.  Whenever any amount expressed to be
due by the terms of this Note is 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 Date which is not the date on which this Note
is  paid  in full, the extension of the due date thereof shall not be taken into
account  for  purposes  of  determining the amount of Interest due on such date.
Any  amount  of  Principal or other amounts due under the Transaction Documents,
other  than  Interest,  which is not paid when due shall result in a late charge
being incurred and payable by the Company in an amount equal to interest on such

                                       19
<PAGE>

amount  at the rate of fifteen percent (15)% per annum from the date such amount
was  due  until  the  same  is  paid  in  full  ("LATE  CHARGE").

(24)     CANCELLATION.  After  all Principal, accrued Interest and other amounts
at  any  time  owed  on  this  Note  have  been  paid  in  full, this Note shall
automatically  be  deemed  canceled,  shall  be  surrendered  to the Company for
cancellation  and  shall  not  be  reissued.

(25)     WAIVER OF NOTICE.  To the extent permitted by law, the Company hereby
waives demand, notice, protest and all other demands and notices in connection
with the delivery, acceptance, performance, default or enforcement of this Note
and the Securities Purchase Agreement.

(26)     GOVERNING LAW.  This Note shall be construed and enforced in
accor-dance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the internal
laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other
jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of New York.

(27)     JUDGMENT CURRENCY.

(a)     If  for  the  purpose  of  obtaining  or  enforcing judgment against the
Company  in  any  court in any jurisdiction it becomes necessary to convert into
any  other  currency  (such  other currency being hereinafter in this Section 27
referred  to  as the "JUDGMENT CURRENCY") an amount due in US dollars under this
Note,  the  conversion  shall  be  made  at  the Exchange Rate prevailing on the
business  day  immediately  preceding:

(i)     the date actual payment of the amount due, in the case of any proceeding
     in  the  courts of New York or in the courts of any other jurisdiction that
will  give  effect  to  such  conversion  being  made  on  such  date:  or

(ii)     the date on which the foreign court determines, in the case of any
proceeding in the courts of any other jurisdiction (the date as of which such
conversion is made pursuant to this Section 27(a)(ii) being hereinafter referred
to as the "JUDGMENT CONVERSION DATE").

(b)     If  in  the  case  of  any  proceeding  in the court of any jurisdiction
referred  to  in Section 27(a)(ii) above, there is a change in the Exchange Rate
prevailing  between  the Judgment Conversion Date and the date of actual payment
of the amount due, the applicable party shall pay such adjusted amount as may be
     necessary  to  ensure  that  the amount paid in the Judgment Currency, when
converted  at  the Exchange Rate prevailing on the date of payment, will produce
the  amount  of  US  dollars  which could have been purchased with the amount of
Judgment  Currency  stipulated in the judgment or judicial order at the Exchange
Rate  prevailing  on  the  Judgment  Conversion  Date.

(c)     Any amount due from the Company under this provision shall be due as a
separate debt and shall not be affected by judgment being obtained for any other
amounts due under or in respect of this Note.

                                       20
<PAGE>

(28)     CERTAIN  DEFINITIONS.  For  purposes  of this Note, the following terms
shall  have  the  following  meanings:

(a)     "APPROVED  STOCK  PLAN"  means  any employee benefit plan which has been
approved  by  the  Board  of  Directors  of  the  Company, pursuant to which the
Company's  securities  may  be  issued  to  any consultant, employee, officer or
director  for  services  provided  to  the  Company.

(b)     "BLOOMBERG" means Bloomberg Financial Markets.

(c)     "BUSINESS DAY" means any day other than Saturday, Sunday or other day on
which commercial banks in the City of New York are authorized or required by law
to remain closed.

(d)     "CHANGE OF CONTROL" means any Fundamental Transaction other than (i) any
reorganization, recapitalization or reclassification of the Common Stock in
which holders of the Company's voting power immediately prior to such
reorganization, recapitalization or reclassification continue after such
reorganization, recapitalization or reclassification to hold publicly traded
securities and, directly or indirectly, the voting power of the surviving entity
or entities necessary to elect a majority of the members of the board of
directors (or their equivalent if other than a corporation) of such entity or
entities, or (ii) pursuant to a migratory merger effected solely for the purpose
of changing the jurisdiction of incorporation of the Company.

(e)     "CLOSING BID PRICE" and "CLOSING SALE PRICE" means, for any security as
of any date, the last closing bid price and last closing trade price,
respectively, for such security on the Principal Market, as reported by
Bloomberg, or, if the Principal Market begins to operate on an extended hours
basis and does not designate the closing bid price or the closing trade price,
as the case may be, then the last bid price or last trade price, respectively,
of such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg,
or, if the Principal Market is not the principal securities exchange or trading
market for such security, the last closing bid price or last trade price,
respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if
the foregoing do not apply, the last closing bid price or last trade price,
respectively, of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade price, respectively, is reported for such security by
Bloomberg, the average of the bid prices, or the ask prices, respectively, of
any market makers for such security as reported in the "pink sheets" by Pink
Sheets LLC (formerly the National Quotation Bureau, Inc.).  If the Closing Bid
Price or the Closing Sale Price cannot be calculated for a security on a
particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price, as the case may be, of such security on such date shall be
the fair market value as mutually determined by the Company and the Holder.  If
the Company and the Holder are unable to agree upon the fair market value of
such security, then such dispute shall be resolved pursuant to Section 22.  All
such determinations to be appropriately adjusted for any stock dividend, stock
split, stock combination or other similar transaction during the applicable
calculation period.

                                       21
<PAGE>

(f)     "CLOSING DATE" shall have the meaning set forth in the Securities
Purchase Agreement, which date is the date the Company initially issued Notes
pursuant to the terms of the Securities Purchase Agreement.

(g)     "CONVERTIBLE SECURITIES" means any stock or securities (other than
Options) directly or indirectly convertible into or exercisable or exchangeable
for Common Stock.

(h)     "ELIGIBLE MARKET" means the Principal Market, The New York Stock
Exchange, Inc., the American Stock Exchange, the Nasdaq National Market or the
Nasdaq Capital Market.

(i)     "EXCLUDED SECURITIES" means any Common Stock issued or issuable: (i) in
connection with any Approved Stock Plan; (ii) upon conversion of the Notes or
the exercise of the Warrants; (iii) in connection with the payment of any
Interest Shares on the Notes; (iv) upon conversion of any Options or Convertible
Securities which are outstanding on the day immediately preceding the
Subscription Date, provided that the terms of such Options or Convertible
Securities are not amended, modified or changed on or after the Subscription
Date; and (v) any Common Stock, Options or Convertible Securities issued or
issuable in connection with a strategic acquisition of assets or of a business
by the Company.

(j)     "FUNDAMENTAL TRANSACTION" means that the Company shall, directly or
indirectly, in one or more related transactions, (i) consolidate or merge with
or into (whether or not the Company is the surviving corporation) another
Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or
substantially all of the properties or assets of the Company to another Person,
or (iii) allow another Person to make a purchase, tender or exchange offer that
is accepted by the holders of more than the 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by the Person or
Persons making or party to, or associated or affiliated with the Persons making
or party to, such purchase, tender or exchange offer), or (iv) consummate a
stock purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of
arrangement) with another Person whereby such other Person acquires more than
the 50% of the outstanding shares of Common Stock (not including any shares of
Common Stock held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to, such stock
purchase agreement or other business combination), or (v) reorganize,
recapitalize or reclassify its Common Stock.

(k)     "GAAP" means United States generally accepted accounting principles,
consistently applied.

(l)     "INTEREST CONVERSION PRICE" means, with respect to any Interest Date,
that price which shall be computed as 90% of the arithmetic average of the
Weighted Average Price of the Common Stock on each of the thirty (30)
consecutive Trading Days immediately preceding the applicable Interest Date.
All such determinations to be appropriately adjusted for any stock split, stock
dividend, stock combination or other similar transaction during such period.

                                       22
<PAGE>

(m)     "MATURITY DATE" means May [  ], 2007; provided further, however, that
the Maturity Date may be extended at the option of the Holder (i) in the event
that, and for so long as, an Event of Default shall have occurred and be
continuing or any event shall have occurred and be continuing which with the
passage of time and the failure to cure would result in an Event of Default and
(ii) through the date that is ten (10) Business Days after the consummation of a
Change of Control in the event that a Change of Control is publicly announced or
a Change of Control Notice (is delivered prior to the Maturity Date.

(n)     "OPTIONS" means any rights, warrants or options to subscribe for or
purchase shares of Common Stock or Convertible Securities.

(o)     "PARENT ENTITY" of a Person means an entity that, directly or
indirectly, controls the applicable Person and whose common stock or equivalent
equity security is quoted or listed on an Eligible Market, or, if there is more
than one such Person or Parent Entity, the Person or Parent Entity with the
largest public market capitalization as of the date of consummation of the
Fundamental Transaction.

(p)     "PERMITTED INDEBTEDNESS" means Indebtedness incurred by the Company that
is made expressly subordinate in right of payment to the Indebtedness evidenced
by this Note, as reflected in a written agreement acceptable to the Holder and
approved by the Holder in writing, and which Indebtedness does not provide at
any time for (i) the payment, prepayment, repayment, repurchase or defeasance,
directly or indirectly, of any principal or premium, if any, thereon until
ninety-one (91) days after the Maturity Date or later and (ii) total interest
and fees at a rate in excess of six percent (8.0%) per annum.

(q)     "PERMITTED LIENS" means (i) any Lien for taxes not yet due or delinquent
or being contested in good faith by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP, (ii) any statutory Lien
arising in the ordinary course of business by operation of law with respect to a
liability that is not yet due or delinquent and (iii) any Lien created by
operation of law, such as materialmen's liens, mechanics' liens and other
similar liens, arising in the ordinary course of business with respect to a
liability that is not yet due or delinquent or that are being contested in good
faith by appropriate proceedings.

(r)     "PERSON" means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization, any other entity and a government or any department or agency
thereof.

(s)     "PRINCIPAL MARKET" means the OTC Bulletin Board.

(t)     "REDEMPTION PREMIUM" means (i) in the case of the Events of Default
described in Section 4(a)(i), (ii), (iii), (iv), (vii), (viii), (ix) and (x)
125% or (ii) in the case of the Events of Default described in Section 4(a)(v)
and (vi), 100%.

                                       23
<PAGE>

(u)     "REGISTRATION RIGHTS AGREEMENT" means that certain registration rights
agreement dated as of the Subscription Date by and among the Company and the
initial holders of the Notes relating to, among other things, the registration
of the resale of the Common Stock issuable upon conversion of the Notes and
exercise of the Warrants.

(v)     "REQUIRED HOLDERS" means the holders of Notes representing at least a
majority of the aggregate principal amount of the Notes then outstanding.

(w)     "SEC" means the United States Securities and Exchange Commission.

(x)     "SECURITIES PURCHASE AGREEMENT" means that certain securities purchase
agreement dated as of the Subscription Date by and among the Company and the
initial holders of the Notes pursuant to which the Company issued the Notes.

(y)     "SUBSCRIPTION DATE" means May [  ], 2006.

(z)     "SUCCESSOR ENTITY" means the Person, which may be the Company, formed
by, resulting from or surviving any Fundamental Transaction or the Person with
which such Fundamental Transaction shall have been made, provided that if such
Person is not a publicly traded entity whose common stock or equivalent equity
security is quoted or listed for trading on an Eligible Market, Successor Entity
shall mean such Person's Parent Entity.

(aa)     "TRADING DAY" means any day on which the Common Stock is traded on the
Principal Market, or, if the Principal Market is not the principal trading
market for the Common Stock, then on the principal securities exchange or
securities market on which the Common Stock is then traded; provided that
"Trading Day" shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the
Common Stock is suspended from trading during the final hour of trading on such
exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour
ending at 4:00:00 p.m., New York Time).

(bb)     "WARRANTS" has the meaning ascribed to such term in the Securities
Purchase Agreement, and shall include all warrants issued in exchange therefor
or replacement thereof.

(cc)     "WEIGHTED AVERAGE PRICE" means, for any security as of any date, the
dollar volume-weighted average price for such security on the Principal Market
during the period beginning at 9:30:01 a.m., New York Time (or such other time
as the Principal Market publicly announces is the official open of trading), and
ending at 4:00:00 p.m., New York Time (or such other time as the Principal
Market publicly announces is the official close of trading) as reported by
Bloomberg through its "Volume at Price" functions, or, if the foregoing does not
apply, the dollar volume-weighted average price of such security in the
over-the-counter market on the electronic bulletin board for such security
during the period beginning at 9:30:01 a.m., New York Time (or such other time
as such market publicly announces is the official open of trading), and ending
at 4:00:00 p.m., New York Time (or such other time as such market publicly
announces is the official close of trading) as reported by Bloomberg, or, if no
dollar volume-weighted average price is reported for such security by Bloomberg
for such hours, the average of the highest closing bid price and the lowest
closing ask price of any of the market makers for such security as reported in

                                       24
<PAGE>

the "pink sheets" by Pink Sheets LLC (formerly the National Quotation Bureau,
Inc.).  If the Weighted Average Price cannot be calculated for a security on a
particular date on any of the foregoing bases, the Weighted Average Price of
such security on such date shall be the fair market value as mutually determined
by the Company and the Holder.  If the Company and the Holder are unable to
agree upon the fair market value of such security, then such dispute shall be
resolved pursuant to Section 22.  All such determinations to be appropriately
adjusted for any stock dividend, stock split, stock combination or other similar
transaction during the applicable calculation period.

(29)     DISCLOSURE.  Upon  receipt  or delivery by the Company of any notice in
         ----------
accordance  with  the  terms  of this Note, unless the Company has in good faith
determined  that the matters relating to such notice do not constitute material,
nonpublic  information  relating to the Company or its Subsidiaries, the Company
shall  within  two (2) Business Days after any such receipt or delivery publicly
disclose such material, nonpublic information on a Current Report on Form 8-K or
     otherwise.  In  the  event that the Company believes that a notice contains
material, nonpublic information relating to the Company or its Subsidiaries, the
Company so shall indicate to such Holder contemporaneously with delivery of such
notice,  and  in the absence of any such indication, the Holder shall be allowed
to  presume that all matters relating to such notice do not constitute material,
nonpublic  information  relating  to  the  Company  or  its  Subsidiaries.
                            [Signature Page Follows]

                                       25
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Note to be duly executed as
of  the  Issuance  Date  set  out  above.

SORELL  INC.
By: /s/ Bon Kwan Koo
Name:  Bon  Kwan  Koo
Title:  Chief  Executive  Officer

                                       26
<PAGE>

                                    EXHIBIT I

                                   SORELL INC.
                                CONVERSION NOTICE

Reference  is  made  to  the  Senior Convertible Note (the "NOTE") issued to the
undersigned  by Sorell Inc. (the "COMPANY").  In accordance with and pursuant to
the  Note,  the  undersigned  hereby elects to convert the Conversion Amount (as
defined in the Note) of the Note indicated below into shares of Common Stock par
value  $0.001  per  share  (the  "COMMON  STOCK") of the Company, as of the date
specified  below.

Date  of  Conversion:
Aggregate  Conversion  Amount  to  be  converted:
Please  confirm  the  following  information:
Conversion  Price:
Number  of  shares  of  Common  Stock  to  be  issued:
Please  issue  the  Common  Stock  into which the Note is being converted in the
following  name  and  to  the  following  address:
Issue  to:

Federal  SSN  or  EIN:
Facsimile  Number:
Authorization:
By:
Title:
Dated:
Account  Number:
  (if  electronic  book  entry  transfer)
Transaction  Code  Number:
  (if  electronic  book  entry  transfer)[FORM OF WARRANT]

NEITHER  THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
NOR  THE  SECURITIES  INTO  WHICH  THESE  SECURITIES  ARE EXERCISEABLE HAVE BEEN
REGISTERED  UNDER  THE  SECURITIES  ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES  LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR  ASSIGNED  (I)  IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE  SECURITIES  UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF  COUNSEL,  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.  NOTWITHSTANDING  THE  FOREGOING, THE SECURITIES MAY BE PLEDGED PURSUANT TO
AN  AVAILABLE EXEMPTION UNDER THE 1933 ACT IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT  OR  OTHER  LOAN  OR  FINANCING  ARRANGEMENT  SECURED BY THE SECURITIES.

                                   SORELL INC.

                        WARRANT TO PURCHASE COMMON STOCK

Warrant  No.:
Number  of  Shares  of  Common  Stock:  [    ]
Date  of  Issuance:  May  [  ],  2006  ("ISSUANCE  DATE")

     Sorell  Inc.,  a Nevada corporation (the "COMPANY"), hereby certifies that,
for  good  and  valuable consideration, the receipt and sufficiency of which are
hereby  acknowledged,  [                                                  ], the
registered  holder  hereof or its permitted assigns (the "HOLDER"), is entitled,
subject  to  the  terms  set  forth  below, to purchase from the Company, at the
Exercise Price (as defined below) then in effect, upon surrender of this Warrant
to Purchase Common Stock (including any Warrants to Purchase Common Stock issued
in  exchange,  transfer  or  replacement  hereof, the "WARRANT"), at any time or
times  on  or  after the date hereof but not after 11:59 p.m., New York Time, on
the  Expiration Date (as defined below), [                                     ]
([      ])  fully  paid  nonassessable shares of Common Stock (as defined below)
(the  "WARRANT  SHARES").  Except as otherwise defined herein, capitalized terms
in  this  Warrant shall have the meanings set forth in Section 17.  This Warrant
is  one  of  the  Warrants  to purchase Common Stock (the "SPA WARRANTS") issued
pursuant to Section 1 of that certain Securities Purchase Agreement, dated as of
May  [  ],  2006  (the  "SUBSCRIPTION  DATE"),  by and among the Company and the
investors  (the  "BUYERS")  referred  to  therein  (the  "SECURITIES  PURCHASE
AGREEMENT").

                                        1
<PAGE>

1.     EXERCISE  OF  WARRANT.

(a)     Mechanics  of  Exercise.  Subject  to  the  terms  and conditions hereof
(including, without limitation, the limitations set forth in Section 1(f)), this
Warrant  may  be exercised by the Holder on any day on or after the date hereof,
in  whole  or in part, by (i) delivery of a written notice, in the form attached
hereto  as  Exhibit  A  (the  "EXERCISE  NOTICE"),  of  the Holder's election to
exercise  this Warrant and (ii) (A) payment to the Company of an amount equal to
the  applicable  Exercise Price multiplied by the number of Warrant Shares as to
which  this  Warrant is being exercised (the "AGGREGATE EXERCISE PRICE") in cash
or  wire transfer of immediately available funds or (B) by notifying the Company
that this Warrant is being exercised pursuant to a Cashless Exercise (as defined
in  Section  1(d)).  The  Holder  shall  not be required to deliver the original
Warrant in order to effect an exercise hereunder.  Execution and delivery of the
Exercise  Notice  with respect to less than all of the Warrant Shares shall have
the  same  effect  as cancellation of the original Warrant and issuance of a new
Warrant evidencing the right to purchase the remaining number of Warrant Shares.
On  or  before  the  third  Business Day following the date (the "SHARE DELIVERY
DATE")  on  which  the  Company has received each of the Exercise Notice and the
Aggregate  Exercise  Price  (or  notice  of  a Cashless Exercise) (the "EXERCISE
DELIVERY DOCUMENTS"), the Company shall (X) provided that the Company's transfer
agent  is  participating  in The Depository Trust Company ("DTC") Fast Automated
Securities  Transfer  Program,  upon  the  request  of  the  Holder, credit such
aggregate  number  of  shares  of  Common  Stock to which the Holder is entitled
pursuant to such exercise to the Holder's or its designee's balance account with
DTC  through  its  Deposit  Withdrawal  Agent  Commission  system, or (Y) if the
Company's  transfer  agent  is  not  participating  in  the  DTC  Fast Automated
Securities  Transfer  Program,  issue  and  dispatch by overnight courier to the
address  as  specified  in the Exercise Notice, a certificate, registered in the
Company's  share  register  in  the  name of the Holder or its designee, for the
number  of  shares  of  Common Stock to which the Holder is entitled pursuant to
such  exercise.  Upon  delivery  of  the  Exercise Notice and Aggregate Exercise
Price  referred  to  in clause (ii)(A) above or notification to the Company of a
Cashless  Exercise  referred  to in Section 1(d), the Holder shall be deemed for
all corporate purposes to have become the holder of record of the Warrant Shares
with  respect to which this Warrant has been exercised, irrespective of the date
of delivery of the certificates evidencing such Warrant Shares.  If this Warrant
is  submitted  in connection with any exercise pursuant to this Section 1(a) and
the  number of Warrant Shares represented by this Warrant submitted for exercise
is  greater  than  the number of Warrant Shares being acquired upon an exercise,
then  the  Company  shall as soon as practicable and in no event later than five
Business Days after any exercise and at its own expense, issue a new Warrant (in
accordance  with  Section 8(d)) representing the right to purchase the number of
Warrant  Shares  purchasable  immediately  prior  to  such  exercise  under this
Warrant, less the number of Warrant Shares with respect to which this Warrant is
exercised.  No  fractional  shares  of  Common  Stock  are to be issued upon the
exercise  of this Warrant, but rather the number of shares of Common Stock to be
issued  shall  be rounded up to the nearest whole number.  The Company shall pay
any and all taxes which may be payable with respect to the issuance and delivery
of  Warrant  Shares  upon  exercise  of  this  Warrant.

(b)     Exercise  Price.  For  purposes  of this Warrant, "EXERCISE PRICE" means
$0.75,  subject  to  adjustment  as  provided  herein.

                                        2
<PAGE>

(c)     Company's  Failure  to  Timely Deliver Securities.  If the Company shall
fail  for  any  reason  or for no reason to issue to the Holder within three (3)
Business  Days  of receipt of the Exercise Delivery Documents, a certificate for
the  number  of  shares  of  Common  Stock  to  which the Holder is entitled and
register  such  shares  of  Common  Stock  on the Company's share register or to
credit the Holder's balance account with DTC for such number of shares of Common
Stock  to  which  the  Holder  is  entitled  upon  the Holder's exercise of this
Warrant,  and  if on or after such Business Day the Holder purchases (in an open
market  transaction  or  otherwise)  shares  of  Common  Stock  to  deliver  in
satisfaction  of  a  sale  by the Holder of shares of Common Stock issuable upon
such  exercise  that  the  Holder  anticipated  receiving  from  the  Company (a
"BUY-IN"),  then  the  Company  shall,  within three (3) Business Days after the
Holder's  request  and  in  the  Holder's discretion, either (i) pay cash to the
Holder  in  an  amount  equal  to  the  Holder's total purchase price (including
brokerage  commissions, if any) for the shares of Common Stock so purchased (the
"BUY-IN  PRICE"),  at  which  point  the  Company's  obligation  to deliver such
certificate  (and to issue such shares of Common Stock) shall terminate, or (ii)
promptly  honor  its  obligation  to  deliver  to  the  Holder  a certificate or
certificates representing such shares of Common Stock and pay cash to the Holder
in  an  amount equal to the excess (if any) of the Buy-In Price over the product
of (A) such number of shares of Common Stock, times (B) the Closing Bid Price on
the  date  of  exercise.

(d)     Cashless  Exercise.  Notwithstanding  anything  contained  herein to the
contrary,  if  a  Registration  Statement (as defined in the Registration Rights
Agreement)  covering  the  Warrant  Shares  that are the subject of the Exercise
Notice  (the  "UNAVAILABLE  WARRANT  SHARES") is not available for the resale of
such  Unavailable  Warrant  Shares,  the  Holder  may,  in  its sole discretion,
exercise  this  Warrant  in  whole  or  in  part and, in lieu of making the cash
payment  otherwise  contemplated to be made to the Company upon such exercise in
payment  of  the  Aggregate  Exercise  Price, elect instead to receive upon such
exercise  the "Net Number" of shares of Common Stock determined according to the
following  formula  (a  "CASHLESS  EXERCISE"):

     Net  Number  =  (A  x  B)  -  (A  x  C)
                                 B

     For  purposes  of  the  foregoing  formula:

A  =  the  total  number of Warrant Shares with respect to which this Warrant is
then  being  exercised.

B  =  the  Closing  Sale  Price  of  the  shares of Common Stock (as reported by
Bloomberg)  on  the  date immediately preceding the date of the Exercise Notice.

          C  =  the  Exercise  Price  then  in effect for the applicable Warrant
Shares  at  the  time  of  such  exercise.

     (e)     Disputes.  In  the case of a dispute as to the determination of the
Exercise  Price or the arithmetic calculation of the Warrant Shares, the Company
shall  promptly  issue  to  the Holder the number of Warrant Shares that are not
disputed  and  resolve  such  dispute  in  accordance  with  Section  14.

                                        3
<PAGE>

(f)     Limitations  on  Exercises; Beneficial Ownership.  The Company shall not
effect  the exercise of this Warrant, and the Holder shall not have the right to
exercise  this Warrant, to the extent that after giving effect to such exercise,
such  Person  (together  with  such  Person's affiliates) would beneficially own
(directly  or indirectly through Warrant Shares or otherwise) in excess of 4.99%
of  the  shares  of  Common Stock outstanding immediately after giving effect to
such  exercise.  For purposes of the foregoing sentence, the aggregate number of
shares  of  Common  Stock  beneficially  owned  (directly  or indirectly through
Warrant Shares or otherwise) by such Person 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  shares of Common Stock which would be issuable upon (i) exercise of the
remaining, unexercised portion of this Warrant beneficially owned by such Person
and  its  affiliates  and  (ii)  exercise  or  conversion  of the unexercised or
unconverted portion of any other securities of the Company beneficially owned by
such  Person  and its affiliates (including, without limitation, any convertible
notes  or  convertible  preferred  stock or warrants) subject to a limitation on
conversion  or exercise analogous to the limitation contained herein.  Except as
set forth in the preceding sentence, for purposes of this subsection, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange  Act of 1934, as amended.  For purposes of this Warrant, 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 (1) the Company's
most  recent  Form  10-K,  Form 10-Q, Current Report on Form 8-K or other public
filing  with  the  Securities and Exchange Commission, as the case may be, (2) a
more  recent  public  announcement by the Company or (3) any other notice by the
Company  or  the  Company's transfer agent setting forth the number of shares of
Common  Stock  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 the SPA Securities and the SPA
Warrants,  by  the  Holder  and  its  affiliates since the date as of which such
number of outstanding shares of Common Stock was reported.  By written notice to
the  Company,  the Holder may increase or decrease the Maximum Percentage to any
other  percentage not in excess of 9.99% specified in such notice; provided that
(i)  any  such  increase  will not be effective until the sixty-first (61st) day
after  such  notice  is  delivered to the Company, and (ii) any such increase or
decrease  will  apply  only  to  the  Holder  and not to any other holder of SPA
Warrants.

2.     ADJUSTMENT  OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES.  The Exercise
Price  and  the  number of Warrant Shares shall be adjusted from time to time as
follows:

(a)     Adjustment  upon Issuance of shares of Common Stock.  If and whenever on
or  after  the  Subscription  Date the Company issues or sells, or in accordance
with this Section 2 is deemed to have issued or sold, any shares of Common Stock
(including  the  issuance  or sale of shares of Common Stock owned or held by or
for  the  account of the Company, but excluding shares of Common Stock deemed to
have  been  issued by the Company in connection with any Excluded Securities (as
defined  in the SPA Securities) for a consideration per share (the "NEW ISSUANCE
PRICE")  less  than a price (the "APPLICABLE PRICE") equal to the Exercise Price
in  effect  immediately  prior  to such issue or sale or deemed issuance or sale
(the  foregoing  a  "DILUTIVE  ISSUANCE"),  then immediately after such Dilutive
Issuance,  the Exercise Price then in effect shall be reduced to an amount equal
to  the  New  Issuance  Price.  Upon  each

                                        4
<PAGE>

such  adjustment  of  the Exercise Price hereunder, the number of Warrant Shares
shall  be  adjusted  to  the  number  of  shares  of  Common Stock determined by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the  number  of  Warrant  Shares  acquirable  upon  exercise  of  this  Warrant
immediately  prior  to  such  adjustment and dividing the product thereof by the
Exercise  Price resulting from such adjustment.  For purposes of determining the
adjusted  Exercise  Price  under  this  Section  2(a),  the  following  shall be
applicable:

(i)     Issuance  of  Options.  If  the Company in any manner grants any Options
and  the  lowest price per share for which one share of Common Stock is issuable
upon the exercise of any such Option or upon conversion, exercise or exchange of
any  Convertible  Securities  issuable  upon exercise of any such Option is less
than the Applicable Price, then such share of Common Stock shall be deemed to be
outstanding  and  to have been issued and sold by the Company at the time of the
granting  or sale of such Option for such price per share.  For purposes of this
Section 2(a)(i), the "lowest price per share for which one share of Common Stock
is  issuable  upon  exercise  of  such  Options  or upon conversion, exercise or
exchange of such Convertible Securities" shall be equal to the sum of the lowest
amounts  of  consideration  (if  any) received or receivable by the Company with
respect  to  any  one  share  of  Common  Stock upon the granting or sale of the
Option, upon exercise of the Option and upon conversion, exercise or exchange of
any  Convertible  Security  issuable  upon  exercise of such Option.  No further
adjustment  of the Exercise Price or number of Warrant Shares shall be made upon
the  actual  issuance  of  such  shares  of  Common Stock or of such Convertible
Securities upon the exercise of such Options or upon the actual issuance of such
shares of Common Stock upon conversion, exercise or exchange of such Convertible
Securities.

(ii)     Issuance  of  Convertible  Securities.  If  the  Company  in any manner
issues  or  sells  any Convertible Securities and the lowest price per share for
which  one  share  of  Common Stock is issuable upon the conversion, exercise or
exchange  thereof  is  less than the Applicable Price, then such share of Common
Stock  shall be deemed to be outstanding and to have been issued and sold by the
Company  at  the time of the issuance or sale of such Convertible Securities for
such  price  per  share.  For the purposes of this Section 2(a)(ii), the "lowest
price  per  share  for  which  one  share  of  Common Stock is issuable upon the
conversion,  exercise  or  exchange"  shall  be  equal  to the sum of the lowest
amounts  of  consideration  (if  any) received or receivable by the Company with
respect  to  one  share  of  Common  Stock  upon  the  issuance  or  sale of the
Convertible  Security  and  upon  conversion,  exercise  or  exchange  of  such
Convertible  Security.  No further adjustment of the Exercise Price or number of
Warrant  Shares  shall be made upon the actual issuance of such shares of Common
Stock  upon conversion, exercise or exchange of such Convertible Securities, and
if  any  such  issue  or  sale  of  such  Convertible  Securities  is  made upon

                                        5
<PAGE>

exercise  of  any Options for which adjustment of this Warrant has been or is to
be made pursuant to other provisions of this Section 2(a), no further adjustment
of  the  Exercise  Price  or number of Warrant Shares shall be made by reason of
such  issue  or  sale.

(iii)     Change  in  Option Price or Rate of Conversion.  If the purchase price
provided  for in any Options, the additional consideration, if any, payable upon
the  issue,  conversion,  exercise or exchange of any Convertible Securities, or
the rate at which any Convertible Securities are convertible into or exercisable
or  exchangeable  for shares of Common Stock increases or decreases at any time,
the  Exercise  Price  and  the number of Warrant Shares in effect at the time of
such increase or decrease shall be adjusted to the Exercise Price and the number
of  Warrant Shares which would have been in effect at such time had such Options
or  Convertible  Securities  provided  for  such increased or decreased purchase
price,  additional  consideration  or increased or decreased conversion rate, as
the case may be, at the time initially granted, issued or sold.  For purposes of
this  Section 2(a)(iii), if the terms of any Option or Convertible Security that
was  outstanding  as  of  the  date of issuance of this Warrant are increased or
decreased  in  the  manner described in the immediately preceding sentence, then
such  Option  or  Convertible  Security  and  the  shares of Common Stock deemed
issuable  upon  exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such increase or decrease.  No adjustment pursuant
to  this  Section  2(a)  shall  be  made  if  such adjustment would result in an
increase  of  the  Exercise  Price then in effect or a decrease in the number of
Warrant  Shares.

(iv)     Calculation  of Consideration Received.  If any shares of Common Stock,
Options  or  Convertible  Securities  are  issued or sold or deemed to have been
issued  or  sold for cash, the consideration received therefor will be deemed to
be  the  net  amount  received by the Company therefor.  If any shares of Common
Stock,  Options or Convertible Securities are issued or sold for a consideration
other  than  cash, the amount of such consideration received by the Company will
be  the  fair  value  of  such  consideration,  except  where such consideration
consists  of  securities,  in which case the amount of consideration received by
the  Company  will  be  the  Closing  Sale Price of such security on the date of
receipt.  If  any  shares of Common Stock, Options or Convertible Securities are
issued  to  the owners of the non-surviving entity in connection with any merger
in  which  the  Company  is  the  surviving  entity, the amount of consideration
therefor  will  be deemed to be the fair value of such portion of the net assets
and  business  of  the non-surviving entity as is attributable to such shares of
Common  Stock,  Options or Convertible Securities, as the case may be.  The fair
value  of  any  consideration  other  than cash or securities will be determined
jointly  by the Company and the Required Holders.  If such parties are unable to
reach  agreement  within  ten  (10)  days  after  the

                                        6
<PAGE>

occurrence  of  an  event  requiring valuation (the "VALUATION EVENT"), the fair
value  of  such  consideration  will be determined within five (5) Business Days
after  the  tenth day following the Valuation Event by an independent, reputable
appraiser  jointly  selected  by  the  Company  and  the  Required Holders.  The
determination  of  such  appraiser  shall  be final and binding upon all parties
absent manifest error and the fees and expenses of such appraiser shall be borne
by  the  Company.

(v)     Record  Date.  If the Company takes a record of the holders of shares of
Common  Stock  for  the  purpose  of entitling them (A) to receive a dividend or
other  distribution payable in shares of Common Stock, Options or in Convertible
Securities  or  (B) to subscribe for or purchase shares of Common Stock, Options
or  Convertible  Securities, then such record date will be deemed to be the date
of the issue or sale of the shares of Common Stock deemed to have been issued or
sold  upon  the  declaration  of  such  dividend  or  the  making  of such other
distribution  or  the  date  of  the  granting  of such right of subscription or
purchase,  as  the  case  may  be.

(b)     Adjustment  upon  Subdivision  or Combination of shares of Common Stock.
If  the Company at any time on or after the Subscription Date subdivides (by any
stock  split, stock dividend, recapitalization or otherwise) one or more classes
of  its  outstanding shares of Common Stock into a greater number of shares, the
Exercise  Price  in  effect  immediately  prior  to  such  subdivision  will  be
proportionately reduced and the number of Warrant Shares will be proportionately
increased.  If  the  Company  at  any  time  on  or  after the Subscription Date
combines  (by combination, reverse stock split or otherwise) one or more classes
of  its  outstanding shares of Common Stock into a smaller number of shares, the
Exercise  Price  in  effect  immediately  prior  to  such  combination  will  be
proportionately  increased  and  the  number  of  Warrant  Shares  will  be
proportionately  decreased.  Any adjustment under this Section 2(b) shall become
effective  at  the  close of business on the date the subdivision or combination
becomes  effective.

(c)     Other  Events.  If  any  event  occurs  of  the type contemplated by the
provisions  of  this Section 2 but not expressly provided for by such provisions
(including,  without  limitation,  the  granting  of  stock appreciation rights,
phantom  stock  rights or other rights with equity features), then the Company's
Board of Directors will make an appropriate adjustment in the Exercise Price and
the number of Warrant Shares so as to protect the rights of the Holder; provided
that no such adjustment pursuant to this Section 2(c) will increase the Exercise
Price  or decrease the number of Warrant Shares as otherwise determined pursuant
to  this  Section  2.

                                        7
<PAGE>

3.     RIGHTS UPON DISTRIBUTION OF ASSETS.  If the Company shall declare or make
any  dividend  or  other  distribution  of  its assets (or rights to acquire its
assets)  to  holders  of  shares of Common Stock, by way of return of capital or
otherwise  (including,  without  limitation,  any distribution of cash, stock or
other  securities,  property  or  options  by  way  of  a  dividend,  spin  off,
reclassification,  corporate  rearrangement,  scheme  of  arrangement  or  other
similar  transaction) (a "DISTRIBUTION"), at any time after the issuance of this
Warrant,  then,  in  each  such  case:

(a)     any  Exercise Price in effect immediately prior to the close of business
on  the  record  date fixed for the determination of holders of shares of Common
Stock entitled to receive the Distribution shall be reduced, effective as of the
close of business on such record date, to a price determined by multiplying such
Exercise Price by a fraction of which (i) the numerator shall be the Closing Bid
Price  of  a share of Common Stock on the trading day immediately preceding such
record  date minus the value of the Distribution (as determined in good faith by
the  Company's  Board of Directors) applicable to one share of Common Stock, and
(ii)  the  denominator  shall  be  the Closing Bid Price of the shares of Common
Stock  on  the  trading  day  immediately  preceding  such  record  date;  and

(b)     the  number  of  Warrant Shares shall be increased to a number of shares
equal  to  the  number of shares of Common Stock obtainable immediately prior to
the  close of business on the record date fixed for the determination of holders
of shares of Common Stock entitled to receive the Distribution multiplied by the
reciprocal of the fraction set forth in the immediately preceding paragraph (a);
provided  that  in  the event that the Distribution is of shares of Common Stock
(or  common  stock)  ("OTHER  SHARES OF COMMON STOCK") of a company whose common
shares  are  traded  on  a  national securities exchange or a national automated
quotation  system,  then  the  Holder may elect to receive a warrant to purchase
Other  Shares  of  Common  Stock in lieu of an increase in the number of Warrant
Shares,  the  terms of which shall be identical to those of this Warrant, except
that such warrant shall be exercisable into the number of shares of Other Shares
of  Common  Stock  that  would  have  been payable to the Holder pursuant to the
Distribution  had  the  Holder  exercised this Warrant immediately prior to such
record  date  and  with  an aggregate exercise price equal to the product of the
amount by which the exercise price of this Warrant was decreased with respect to
the  Distribution  pursuant  to the terms of the immediately preceding paragraph
(a)  and  the  number  of Warrant Shares calculated in accordance with the first
part  of  this  paragraph  (b).

4.     PURCHASE  RIGHTS;  FUNDAMENTAL  TRANSACTIONS.

(a)     Purchase  Rights.  In  addition to any adjustments pursuant to Section 2
above,  if  at  any  time  the  Company  grants,  issues  or  sells any Options,
Convertible  Securities  or  rights  to  purchase stock, warrants, securities or
other  property  pro rata to the record holders of any class of shares of Common
Stock (the "PURCHASE RIGHTS"), then the Holder will be entitled to acquire, upon
the  terms  applicable  to  such  Purchase Rights, the aggregate Purchase Rights
which the Holder could have acquired if the Holder had held the number of shares
of  Common  Stock  acquirable  upon  complete  exercise of this Warrant (without
regard  to  any  limitations on the exercise of this Warrant) immediately before
the  date  on  which  a  record is taken for the grant, issuance or sale of such
Purchase  Rights,  or,  if  no  such  record  is  taken,  the

                                        8
<PAGE>

date  as  of  which  the  record  holders  of  shares  of Common Stock are to be
determined  for  the  grant,  issue  or  sale  of  such  Purchase  Rights.

(b)     Fundamental  Transactions.  If  the Company enters into or is party to a
Fundamental  Transaction,  then  the Holder shall have the right to purchase and
receive upon the basis and upon the terms and conditions herein specified and in
lieu of the Warrant Shares immediately theretofore issuable upon exercise of the
Warrant,  such  shares  of stock, securities or assets (including cash) as would
have  been  issuable  or  payable with respect to or in exchange for a number of
Warrant  Shares  equal  to  the number of Warrant Shares immediately theretofore
issuable  upon  exercise  of  the  Warrant, had such Fundamental Transaction not
taken  place.  The  terms  of  any  agreement  pursuant  to  which a Fundamental
Transaction  is  effected  shall  include  terms requiring any such successor or
surviving  entity and Holder to comply with the provisions of this Section 4(b).
The  provisions  of this Section shall apply similarly and equally to successive
Fundamental  Transactions and shall be applied without regard to any limitations
on  the  exercise  of  this  Warrant.

5.     NONCIRCUMVENTION.  The  Company  hereby  covenants  and  agrees  that the
Company  will  not,  by  amendment  of  its Articles of Incorporation, Bylaws or
through any reorganization, transfer of assets, consolidation, merger, scheme of
arrangement,  dissolution,  issue  or sale of securities, or any other voluntary
action,  for  the  purpose  of  avoiding  or  seeking to avoid the observance or
performance  of  any of the terms of this Warrant, and will at all times in good
faith  carry  out all the provisions of this Warrant and take all action that is
required  hereunder  to  protect the rights of the Holder.  Without limiting the
generality of the foregoing, the Company (i) shall not increase the par value of
any  shares  of  Common Stock receivable upon the exercise of this Warrant above
the  Exercise  Price  then in effect, (ii) shall take all such actions as may be
necessary or appropriate in order that the Company may validly and legally issue
fully  paid  and  nonassessable shares of Common Stock upon the exercise of this
Warrant,  and  (iii)  shall, so long as any of the SPA Warrants are outstanding,
take  all  action  necessary to reserve and keep available out of its authorized
and  unissued  shares  of  Common Stock, solely for the purpose of effecting the
exercise  of  the  SPA Warrants, 100% of the number of shares of Common Stock as
shall  from time to time be necessary to effect the exercise of the SPA Warrants
then  outstanding  (without  regard  to  any  limitations  on  exercise).

6.     CALL.  Notwithstanding  anything  herein  to  the  contrary, so long this
Warrant is outstanding the Company, at its option, may call (a "CALL") up to one
hundred  percent  (100%) of this Warrant then still outstanding by providing the
Holder of this Warrant written notice pursuant to Section 9 (the "CALL NOTICE");
provided, that, in connection with any Call by the Company under this Section 6,
(a)  the  Weighted Average Price per share of Common Stock has been greater than
$2.50 for a period of fifteen (15) consecutive Trading Days immediately prior to
the  date of delivery of the Call Notice (a "CALL NOTICE PERIOD"); (b) the daily
trading  volume  of  the Common Stock on the Principal Market (or other Eligible
Market)  has been greater than 50,000 shares on each Trading Day during the Call
Notice  Period; (c) trading in the Common Stock shall not have been suspended by
the  Securities  and  Exchange  Commission  or  the  Principal  Market (or other
Eligible  Market);  and (d) the Company is in material compliance with the terms
and  conditions  of this Warrant and the other Transaction Documents (as defined
in  the  Securities  Purchase  Agreement).  The  rights  and  privileges granted
pursuant  to this Warrant with respect to the Warrant Shares subject to the Call
Notice  (the  "CALLED  WARRANT

                                        9
<PAGE>

SHARES")  shall  expire  on  the  on the 30th day (the "EARLY TERMINATION DATE")
after  the  Holder  receives a Call Notice if this Warrant is not exercised with
respect  to  the Called Warrant Shares prior to such Early Termination Date.  In
the  event  this  Warrant  is  not  exercised with respect to the Called Warrant
Shares, the Company shall remit to the Holder (i) $.001 per Called Warrant Share
and  (ii)  a new Warrant representing the number of shares of Warrant Shares, if
any,  which  shall  not  have been subject to the Call Notice in accordance with
Section  8(d).

7.     WARRANT  HOLDER  NOT  DEEMED  A  STOCKHOLDER.  Except  as  otherwise
specifically  provided herein, the Holder, solely in such Person's capacity as a
holder of this Warrant, shall not be entitled to vote or receive dividends or be
deemed  the  holder  of  share capital of the Company for any purpose, nor shall
anything  contained  in  this  Warrant  be  construed to confer upon the Holder,
solely  in  such  Person's  capacity  as  the Holder of this Warrant, any of the
rights  of  a  shareholder of the Company or any right to vote, give or withhold
consent  to  any  corporate  action (whether any reorganization, issue of stock,
reclassification  of  stock,  consolidation,  merger,  conveyance or otherwise),
receive  notice  of  meetings,  receive  dividends  or  subscription  rights, or
otherwise,  prior to the issuance to the Holder of the Warrant Shares which such
Person  is  then  entitled to receive upon the due exercise of this Warrant.  In
addition,  nothing  contained in this Warrant shall be construed as imposing any
liabilities  on  the  Holder  to  purchase any securities (upon exercise of this
Warrant  or  otherwise)  or  as  a  shareholder  of  the  Company,  whether such
liabilities  are  asserted  by  the  Company  or  by  creditors  of the Company.
Notwithstanding this Section 7, the Company shall provide the Holder with copies
of  the  same  notices  and  other  information given to the shareholders of the
Company  generally,  contemporaneously  with  the  giving  thereof  to  its
shareholders.

8.     REISSUANCE  OF  WARRANTS.

(a)     Transfer  of  Warrant.  If this Warrant is to be transferred, the Holder
shall  surrender  this  Warrant  to  the  Company,  whereupon  the  Company will
forthwith  issue  and  deliver  upon  the  order of the Holder a new Warrant (in
accordance  with  Section  8(d)),  registered  as  the  Holder  may  request,
representing  the  right  to  purchase  the  number  of  Warrant  Shares  being
transferred  by  the Holder and, if less then the total number of Warrant Shares
then  underlying this Warrant is being transferred, a new Warrant (in accordance
with  Section  8(d)) to the Holder representing the right to purchase the number
of  Warrant  Shares  not  being  transferred.

(b)     Lost,  Stolen  or  Mutilated  Warrant.  Upon  receipt  by the Company of
evidence  reasonably satisfactory to the Company of the loss, theft, destruction
or  mutilation  of this Warrant, and, in the case of loss, theft or destruction,
of  any  indemnification  undertaking  by the Holder to the Company in customary
form  and,  in  the  case of mutilation, upon surrender and cancellation of this
Warrant,  the  Company shall execute and deliver to the Holder a new Warrant (in
accordance  with  Section  8(d))  representing the right to purchase the Warrant
Shares  then  underlying  this  Warrant.

(c)     Exchangeable  for Multiple Warrants.  This Warrant is exchangeable, upon
the surrender hereof by the Holder at the principal office of the Company, for a
new  Warrant  or  Warrants (in accordance with Section 8(d)) representing in the
aggregate

                                       10
<PAGE>

the right to purchase the number of Warrant Shares then underlying this Warrant,
and  each  such new Warrant will represent the right to purchase such portion of
such  Warrant  Shares  as  is  designated  by  the  Holder  at  the time of such
surrender;  provided,  however, that no Warrants for fractional shares of Common
Stock  shall  be  given.

(d)     Issuance  of  New Warrants.  Whenever the Company is required to issue a
new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be
of  like tenor with this Warrant, (ii) shall represent, as indicated on the face
of  such  new  Warrant, the right to purchase the Warrant Shares then underlying
this  Warrant  (or in the case of a new Warrant being issued pursuant to Section
8(a)  or  Section  8(c), the Warrant Shares designated by the Holder which, when
added  to the number of shares of Common Stock underlying the other new Warrants
issued  in  connection with such issuance, does not exceed the number of Warrant
Shares  then  underlying  this  Warrant),  (iii) shall have an issuance date, as
indicated  on  the  face  of  such new Warrant which is the same as the Issuance
Date,  and  (iv)  shall  have  the  same  rights and conditions as this Warrant.

9.     NOTICES.  Whenever  notice  is  required  to be given under this Warrant,
unless  otherwise provided herein, such notice shall be given in accordance with
Section  9(f)  of  the Securities Purchase Agreement.  The Company shall provide
the  Holder  with  prompt  written  notice of all actions taken pursuant to this
Warrant,  including  in  reasonable  detail a description of such action and the
reason therefore.  Without limiting the generality of the foregoing, the Company
will  give written notice to the Holder (i) promptly after any adjustment of the
Exercise  Price,  setting  forth  in  reasonable  detail,  and  certifying,  the
calculation  of  such adjustment and (ii) at least ten days prior to the date on
which  the  Company  closes  its books or takes a record (A) with respect to any
dividend  or  distribution  upon the shares of Common Stock, (B) with respect to
any  grants, issuances or sales of any Options, Convertible Securities or rights
to  purchase  stock,  warrants,  securities  or other property to all holders of
shares of Common Stock or (C) for determining rights to vote with respect to any
Fundamental  Transaction, dissolution or liquidation, provided in each case that
such  information  shall  be made known to the public prior to or in conjunction
with  such  notice  being  provided  to  the  Holder.

10.     AMENDMENT  AND  WAIVER.  Except  as  otherwise  provided  herein,  the
provisions  of  this  Warrant may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it,  only  if  the  Company  has  obtained  the  written consent of the Required
Holders; provided that no such action may increase the exercise price of any SPA
Warrant  or  decrease  the  number  of  shares or class of stock obtainable upon
exercise  of any SPA Warrant without the written consent of the Holder.  No such
amendment  shall  be effective to the extent that it applies to less than all of
the  holders  of  the  SPA  Warrants  then  outstanding.

11.     SEVERABILITY.  If  any  provision  of  this  Warrant  or the application
thereof  becomes  or  is  declared  by  a  court of competent jurisdiction to be
illegal,  void or unenforceable, the remainder of the terms of this Warrant will
continue  in  full  force  and  effect.

12.     GOVERNING  LAW.  This  Warrant  shall  be  governed by and construed and
enforced  in  accor-dance  with,  and all questions concerning the construction,
validity,  interpretation  and performance of this Warrant shall be governed by,
the  internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York or
any  other  jurisdictions)  that  would cause the application of the laws of any
jurisdictions  other  than  the  State  of  New  York.

13.     CONSTRUCTION;  HEADINGS.  This  Warrant  shall  be  deemed to be jointly
drafted by the Company and all the Buyers and shall not be construed against any
person  as the drafter hereof.  The headings of this Warrant are for convenience
of  reference  and shall not form part of, or affect the interpretation of, this
Warrant.

14.     DISPUTE RESOLUTION.  In the case of a dispute as to the determination of
the  Exercise  Price,  the  arithmetic  calculation of the Warrant Shares or the
Weighted  Average Price, the Company shall submit the disputed determinations or
arithmetic  calculations  via facsimile within two (2) Business Days of receipt,
or  deemed  receipt,  of  the Exercise Notice or Call Notice giving rise to such
dispute,  as  the case may be, to the Holder.  If the Holder and the Company are
unable  to  agree upon such determination or calculation within two (2) Business
Days of such disputed determination or arithmetic calculation being submitted to
the  Holder,  then  the  Company  shall, within two (2) Business Days submit via
facsimile  (a)  the disputed determination of the Exercise Price or the Weighted
Average  Price  to  an  independent,  reputable  investment bank selected by the
Company and approved by the Holder or (b) the disputed arithmetic calculation of
the  Warrant  Shares  to  the  Company's  independent,  outside accountant.  The
Company  shall  cause, at its expense, the investment bank or the accountant, as
the  case  may  be, to perform the determinations or calculations and notify the
Company  and the Holder of the results no later than five (5) Business Days from
the  time  it  receives  the  disputed  determinations  or  calculations.  Such
investment  bank's or accountant's determination or calculation, as the case may
be,  shall  be  binding  upon  all  parties  absent  demonstrable  error.

15.     REMEDIES,  OTHER  OBLIGATIONS,  BREACHES  AND  INJUNCTIVE  RELIEF.  The
remedies  provided  in  this  Warrant shall be cumulative and in addition to all
other remedies available under this Warrant and the other Transaction Documents,
at  law  or  in  equity (including a decree of specific performance and/or other
injunctive  relief),  and  nothing herein shall limit the right of the Holder to
pursue actual damages for any failure by the Company to comply with the terms of
this  Warrant.  The  Company acknowledges that a breach by it of its obligations
hereunder  will  cause irreparable harm to the Holder and that the remedy at law
for  any  such  breach may be inadequate.  The Company therefore agrees that, in
the  event  of  any such breach or threatened breach, the holder of this Warrant
shall be entitled, in addition to all other available remedies, to an injunction
restraining  any  breach,  without  the  necessity  of showing economic loss and
without  any  bond  or  other  security  being  required.

16.     TRANSFER.     This Warrant may be offered for sale, sold, transferred or
assigned without the consent of the Company, except as may otherwise be required
by  Section  2(g)  of  the  Securities  Purchase  Agreement.

17.     CERTAIN  DEFINITIONS.  For purposes of this Warrant, the following terms
shall  have  the  following  meanings:

(a)     "BLOOMBERG"  means  Bloomberg  Financial  Markets.

(b)     "BUSINESS DAY" means any day other than Saturday, Sunday or other day on
which commercial banks in the City of New York are authorized or required by law
to  remain  closed.

(c)     "CLOSING  BID PRICE" and "CLOSING SALE PRICE" means, for any security as
of  any  date,  the  last  closing  bid  price  and  last  closing  trade price,
respectively,  for  such  security  on  the  Principal  Market,  as  reported by
Bloomberg,  or,  if  the Principal Market begins to operate on an extended hours
basis  and  does not designate the closing bid price or the closing trade price,
as  the  case may be, then the last bid price or last trade price, respectively,
of such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg,
or,  if the Principal Market is not the principal securities exchange or trading
market  for  such  security,  the  last  closing  bid price or last trade price,
respectively,  of  such security on the principal securities exchange or trading
market  where  such security is listed or traded as reported by Bloomberg, or if
the  foregoing  do  not  apply,  the last closing bid price or last trade price,
respectively,  of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid
price  or  last  trade  price,  respectively,  is  reported for such security by
Bloomberg,  the  average  of the bid prices, or the ask prices, respectively, of
any  market  makers  for  such security as reported in the "pink sheets" by Pink
Sheets  LLC  (formerly the National Quotation Bureau, Inc.).  If the Closing Bid
Price  or  the  Closing  Sale  Price  cannot  be  calculated for a security on a
particular  date  on  any  of  the foregoing bases, the Closing Bid Price or the
Closing  Sale  Price, as the case may be, of such security on such date shall be
the  fair market value as mutually determined by the Company and the Holder.  If
the  Company  and  the  Holder are unable to agree upon the fair market value of
such  security, then such dispute shall be resolved pursuant to Section 14.  All
such  determinations  to be appropriately adjusted for any stock dividend, stock
split,  stock  combination  or  other  similar transaction during the applicable
calculation  period.

(d)     "COMMON  STOCK"  means  (i) the Company's shares of Common Stock, $0.001
par  value  per  share,  and (ii) any share capital into which such Common Stock
shall  have  been changed or any share capital resulting from a reclassification
of  such  Common  Stock.

(e)     "CONVERTIBLE  SECURITIES"  means  any  stock  or  securities (other than
Options)  directly or indirectly convertible into or exercisable or exchangeable
for  shares  of  Common  Stock.

(f)     "ELIGIBLE  MARKET"  means  the  Principal  Market,  the  American  Stock
Exchange,  the  New York Stock Exchange, Inc., the Nasdaq National Market or the
Nasdaq  Capital  Market.

(g)     "EXPIRATION  DATE"  means  the date sixty (60) months after the Issuance
Date  or,  if  such  date  falls  on a day other than a Business Day or on which
trading does not take place on the Principal Market (a "HOLIDAY"), the next date
that  is  not  a  Holiday.

(h)     "FUNDAMENTAL  TRANSACTION"  means  that  the  Company shall, directly or
indirectly,  in  one or more related transactions, (i) consolidate or merge with
or  into  (whether  or  not  the  Company  is the surviving corporation) another
Person,  or  (ii)  sell, assign, transfer, convey or otherwise dispose of all or
substantially  all of the properties or assets of the Company to another Person,
or  (iii) allow another Person to make a purchase, tender or exchange offer that
is  accepted  by  such  number  of holders of outstanding shares of Common Stock
resulting  in  such Person (together with any affiliates of such Person) holding
more  than  50%  of  the  outstanding Common Stock of the Company following such
purchase,  tender  or  exchange  offer,  or  (iv)  consummate  a  stock purchase
agreement  or  other  business  combination  (including,  without  limitation, a
reorganization,  recapitalization,  spin-off  or  scheme  of  arrangement)  with
another  Person  resulting in such other Person (together with any affiliates of
such  person)  holding  more than the 50% of the outstanding Common Stock of the
Company  following such stock purchase agreement or other business combination),
or  (v)  reorganize,  recapitalize  or  reclassify  its  Common  Stock.

(i)     "OPTIONS"  means  any  rights,  warrants  or options to subscribe for or
purchase  shares  of  Common  Stock  or  Convertible  Securities.

(j)     "PERSON"  means  an  individual,  a  limited  liability  company,  a
partnership,  a  joint  venture,  a  corporation,  a  trust,  an  unincorporated
organization,  any  other  entity  and  a government or any department or agency
thereof.

(k)     "PRINCIPAL  MARKET"  means  the  OTC  Bulletin  Board.

(l)     "REGISTRATION  RIGHTS  AGREEMENT" means that certain registration rights
agreement  dated  as  of  the Subscription Date by and among the Company and the
Buyers.

(m)     "REQUIRED HOLDERS" means the holders of the SPA Warrants representing at
least  a  majority  of  shares  of Common Stock underlying the SPA Warrants then
outstanding.

(n)     "SPA  SECURITIES"  means  the  Notes  issued  pursuant to the Securities
Purchase  Agreement.

(o)     "TRADING  DAY"  means any day on which the Common Stock is traded on the
Principal  Market,  or,  if  the  Principal  Market is not the principal trading
market  for  the  Common  Stock,  then  on  the principal securities exchange or
securities  market  on  which  the  Common  Stock  is then traded; provided that
"Trading  Day"  shall not include any day on which the Common Stock is scheduled
to  trade on such exchange or market for less than 4.5 hours or any day that the
Common  Stock is suspended from trading during the final hour of trading on such
exchange  or market (or if such exchange or market does not designate in advance
the  closing  time  of  trading on such exchange or market, then during the hour
ending  at  4:00:00  p.m.,  New  York  Time).

(p)     "WEIGHTED  AVERAGE  PRICE"  means,  for any security as of any date, the
dollar  volume-weighted  average price for such security on the Principal Market
during  the  period beginning at 9:30:01 a.m., New York Time (or such other time
as the Principal Market publicly announces is the official open of trading), and
ending  at  4:00:00  p.m.,  New  York  Time (or such other time as the Principal
Market  publicly  announces  is  the  official  close of trading) as reported by
Bloomberg through its "Volume at Price" functions, or, if the foregoing does not
apply,  the  dollar  volume-weighted  average  price  of  such  security  in the
over-the-counter  market  on  the  electronic  bulletin  board for such security
during  the  period beginning at 9:30:01 a.m., New York Time (or such other time
as  such  market publicly announces is the official open of trading), and ending
at  4:00:00  p.m.,  New  York  Time  (or such other time as such market publicly
announces  is the official close of trading) as reported by Bloomberg, or, if no
dollar  volume-weighted average price is reported for such security by Bloomberg
for  such  hours,  the  average  of the highest closing bid price and the lowest
closing  ask  price of any of the market makers for such security as reported in
the  "pink  sheets"  by Pink Sheets LLC (formerly the National Quotation Bureau,
Inc.).  If  the  Weighted Average Price cannot be calculated for a security on a
particular  date  on  any  of the foregoing bases, the Weighted Average Price of
such security on such date shall be the fair market value as mutually determined
by  the  Company  and  the  Holder.  If the Company and the Holder are unable to
agree  upon  the  fair market value of such security, then such dispute shall be
resolved  pursuant  to  Section 14.  All such determinations to be appropriately
adjusted for any stock dividend, stock split, stock combination or other similar
transaction  during  the  applicable  calculation  period.

                            [SIGNATURE PAGE FOLLOWS]

                                       11
<PAGE>

     IN  WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common
Stock  to  be  duly  executed  as  of  the  Issuance  Date  set  out  above.

                              SORELL  INC.

                              By:       /s/ Bon Kwan Koo
                              Name:     Bon  Kwan  Koo
                              Title:     Chief Executive Officer
                                       12
<PAGE>

                                                                       EXHIBIT A

                                 EXERCISE NOTICE
            TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS
                        WARRANT TO PURCHASE COMMON STOCK

                                   SORELL INC.
     The  undersigned  holder  hereby  exercises  the  right  to  purchase
_________________  of  the  shares  of Common Stock ("WARRANT SHARES") of Sorell
Inc., a Nevada corporation (the "COMPANY"), evidenced by the attached Warrant to
Purchase  Common  Stock  (the "WARRANT").  Capitalized terms used herein and not
otherwise  defined  shall have the respective meanings set forth in the Warrant.

     1.  Form  of  Exercise  Price.  The  Holder  intends  that  payment  of the
Exercise  Price  shall  be  made  as:

          ____________     a  "Cash  Exercise" with respect to _________________
Warrant  Shares;  and/or

          ____________     a "Cashless Exercise" with respect to _______________
Warrant  Shares.

     2.  Notwithstanding  anything  to  the  contrary  contained  herein,  this
Exercise  Notice  shall constitute a representation by the Holder of the Warrant
submitting  this  Exercise  Notice  that,  after  giving  effect to the exercise
provided for in this Exercise Notice, such Holder (together with its affiliates)
will  not  have  beneficial ownership (together with the beneficial ownership of
such  Person's  affiliates)  of a number of shares of Common Stock which exceeds
the  maximum  percentage  of  the  total  outstanding  shares of Common Stock as
determined  pursuant  to  the  provisions  of  Section  1(f)  of  the  Warrant.

     3.  Payment  of Exercise Price.  In the event that the holder has elected a
Cash  Exercise  with  respect  to some or all of the Warrant Shares to be issued
pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of
$___________________ to the Company in accordance with the terms of the Warrant.

     4.  Delivery  of  Warrant  Shares.  The Company shall deliver to the holder
__________  Warrant  Shares  in  accordance  with  the  terms  of  the  Warrant.

Date:  _____________________,  ______

     Name  of  Registered  Holder

     Federal  SSN  or  EIN
     of  Registered  Holder

By:
     Name:
     Title:

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