Document:

Exhibit
      10.18

    
      
         

        
          REGISTRATION
            RIGHTS
            AGREEMENT

        

      

    

     

    THIS
      REGISTRATION RIGHTS AGREEMENT (this "Agreement")
      is made
      as of April 3, 2008, by and between Boo Koo Holdings, Inc, a Delaware
      corporation (the "Company"),
      and
      Holigan Racing, L.P., a Texas limited partnership (the "Investor").

     

    WHEREAS,
      the Company and the Investor are parties to that certain Settlement Agreement
      of
      even date herewith (the "Settlement
      Agreement");
      

     

    WHEREAS,
      in connection with the Settlement Agreement, the Company has issued a Senior
      Secured Convertible Promissory Note, dated the date hereof (the "Note")
      to the
      Investor; and 

     

    WHEREAS,
      in connection with the issuance of the Note, the Company has agreed to grant
      certain registration rights with respect to shares of Common Stock of the
      Company issuable to the Investor pursuant to the terms of the Note.

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants contained
      herein, and other good and valuable consideration, the parties hereby agree
      as
      follows:

     

    1. Definitions.
      For
      purposes of this Agreement, the following terms shall have the following
      respective meanings:

     

    "Affiliate"
      means,
      with respect to any specified Person, any other Person who, directly or
      indirectly, controls, is controlled by, or is under common control with such
      Person, including without limitation any general partner, managing member,
      officer or director of such Person.

     

    "Common
      Stock"
      means
      shares of the Company's common stock, par value $0.0001 per share.

     

    "Damages"
      means
      any loss, damage, or liability (joint or several) to which a party hereto may
      become subject under the Securities Act, the Exchange Act, or other federal
      or
      state law, insofar as such loss, damage, or liability (or any action in respect
      thereof) arises out of or is based upon (i) any untrue statement or alleged
      untrue statement of a material fact contained in any registration statement
      of
      the Company, including any preliminary prospectus or final prospectus contained
      therein or any amendments or supplements thereto; (ii) an omission or alleged
      omission to state therein a material fact required to be stated therein, or
      necessary to make the statements therein not misleading; or (iii) any violation
      or alleged violation by an indemnifying party (or any of its agents or
      Affiliates) pursuant to Section 2.8 hereof of the Securities Act, the Exchange
      Act, any state securities law, or any rule or regulation promulgated under
      the
      Securities Act, the Exchange Act, or any state securities law.

     

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Excluded
      Registration"
      means
      (i) a registration relating to the sale of securities to employees of the
      Company or a subsidiary pursuant to a stock option, stock purchase, or similar
      plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a
      registration on any form that does not include substantially the same
      information as would be required to be included in a registration statement
      covering the sale of the Registrable Securities; or (iv) a registration in
      which
      the only Common Stock being registered is Common Stock issuable upon conversion
      of debt securities that are also being registered.

     

    "Form
      S-1"
      means
      such form under the Securities Act as in effect on the date hereof or any
      successor registration form under the Securities Act subsequently adopted by
      the
      SEC.

     

    "Form
      S-2"
      means
      such form under the Securities Act as in effect on the date hereof or any
      successor registration form under the Securities Act subsequently adopted by
      the
      SEC.

     

    "Form
      S-3"
      means
      such form under the Securities Act as in effect on the date hereof or any
      registration form under the Securities Act subsequently adopted by the SEC
      that
      permits incorporation of substantial information by reference to other documents
      filed by the Company with the SEC.

     

    "GAAP"
      means
      generally accepted accounting principles in the United States.

     

    "Holder"
      means
      any holder of Registrable Securities who is a party to this
      Agreement.

     

    "Immediate
      Family Member"
      means a
      child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling,
      mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
      or
      sister-in-law, including adoptive relationships, of a natural person referred
      to
      herein.

     

    "Initiating
      Holders"
      means,
      collectively, Holders who properly initiate a registration request under this
      Agreement.

     

    "Person"
      means
      any individual, corporation, partnership, trust, limited liability company,
      association or other entity.

     

    "Registrable
      Common Stock"
      means
      (i) shares of issued and outstanding Common Stock that were received upon
      conversion of all or any part of the Note and (ii) any shares of Common
      Stock issued as (or issuable upon the conversion or exercise of any warrant,
      right, or other security that is issued as) a dividend or other distribution
      with respect to, or in exchange for, or in replacement of, the shares referenced
      in clause (i) above; provided,
      however,
      that any
      such securities shall cease to be Registrable Common Stock when (A) such
      securities shall have been registered under the Securities Act and the
      registration statement with respect to the sale of such securities shall have
      become effective under the Securities Act and (B) excluding for purposes of
      Section 2 any shares for which registration rights have terminated pursuant
      to
      Section 2.13 of this Agreement..

     

    
      
        
        

      

      
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    "Registrable
      Securities"
      means
      (i) the Common Stock issuable or issued upon conversion the Note issued by
      the
      Company to the Investor on the date hereof pursuant to the Settlement Agreement
      and (ii) any Common Stock issued as (or issuable upon the conversion or exercise
      of any warrant, right, or other security that is issued as) a dividend or other
      distribution with respect to, or in exchange for, or in replacement of, the
      shares referenced in clause (i) above; provided,
      however,
      that any
      such securities shall cease to be Registrable Securities when (A) such
      securities shall have been registered under the Securities Act and the
      registration statement with respect to the sale of such securities shall have
      become effective under the Securities Act and (B) excluding for purposes of
      Section 2 any shares for which registration rights have terminated pursuant
      to
      Section 2.13 of this Agreement.

     

    "Registrable
      Securities then outstanding"
      means,
      at the time of any determination, the number of shares determined by adding
      (i)
      the number of shares of outstanding Common Stock that are Registrable
      Securities, plus (ii) the number of shares of Common Stock that remain issuable
      upon conversion of the Note.

     

    "SEC"
      means
      the Securities and Exchange Commission.

     

    "SEC
      Rule 144"
      means
      Rule 144 promulgated by the SEC under the Securities Act.

     

    "SEC
      Rule 145"
      means
      Rule 145 promulgated by the SEC under the Securities Act.

     

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    "Selling
      Expenses"
      means
      all underwriting discounts, selling commissions, and stock transfer taxes
      applicable to the sale of Registrable Securities, and fees and disbursements
      of
      counsel for any Holder, except for the fees and disbursements of the Selling
      Holder Counsel borne and paid by the Company as provided in Section
      2.6.

     

    2. Registration
      Rights.
      The
      Company covenants and agrees as follows:

     

    2.1 Demand
      Registration.

     

    (a) If,
      at
      any time after the date of this Agreement, the Company receives a request from
      Holders holding greater than fifty percent (50%) of the Registrable Securities
      then outstanding that the Company file a registration statement to
      register shares of Registrable Common Stock,
      then
      the Company shall (i) within ten (10) days after the date such request is given,
      give notice thereof (the "Demand
      Notice")
      to all
      Holders, other than the Initiating Holders; and (ii) as soon as practicable,
      and
      in any event within sixty (60) days after the date such request is given by
      the
      Initiating Holders, file a registration statement under the Securities Act
      covering all Registrable Securities that the Initiating Holders requested to
      be
      registered and any additional Registrable Securities requested to be included
      in
      such registration by any other Holders, as specified by notice given by each
      such Holder to the Company within twenty (20) days of the date the Demand Notice
      is given, and in each case, subject to the limitations of Section 2.1(c) and
      Section 2.3.

     

    
      
        
        

      

      
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    (b) Notwithstanding
      the foregoing obligations, if the Company furnishes to Holders requesting a
      registration pursuant to this Section 2.1 a certificate signed by the Company's
      chief executive officer stating that in the good faith judgment of the Company's
      Board of Directors it would be materially detrimental to the Company and its
      stockholders for such registration statement to either become effective or
      remain effective for as long as such registration statement otherwise would
      be
      required to remain effective, because such action would (i) materially interfere
      with a significant acquisition, corporate reorganization, or other similar
      transaction involving the Company; (ii) require premature disclosure of material
      information that the Company has a bona fide business purpose for preserving
      as
      confidential; or (iii) render the Company unable to comply with requirements
      under the Securities Act or Exchange Act, then the Company shall have the right
      to defer taking action with respect to such filing, and any time periods with
      respect to filing or effectiveness thereof shall be tolled correspondingly,
      for
      a period of not more than thirty (30) days after the request of the Initiating
      Holders is given; provided,
      however,
      that the
      Company may not invoke this right more than once in any twelve (12) month
      period; and, provided further, that the Company shall not register any
      securities for its own account or that of any other stockholder during such
      thirty (30) day period other than an Excluded Registration.

     

    (c) The
      Company shall not be obligated to effect, or to take any action to effect,
      any
      registration pursuant to Section 2.1(a): (i) during the period that is sixty
      (60) days before the Company's good faith estimate of the date of filing of,
      and
      ending on a date that is one hundred eighty (180) days after the effective
      date
      of, a Company-initiated registration, provided, that the Company is actively
      employing in good faith commercially reasonable efforts to cause such
      registration statement to become effective; or (ii) after the Company has
      effected one registration pursuant to Section 2.1(a). A registration shall
      not
      be counted as "effected" for purposes of this Section 2.1(c) until such time
      as
      the applicable registration statement has been declared effective by the SEC,
      unless the Initiating Holders withdraw their request for such registration,
      elect not to pay the registration expenses therefor, and forfeit their right
      to
      one demand registration statement pursuant to Section 2.6, in which case such
      withdrawn registration statement shall be counted as "effected" for purposes
      of
      this Section 2.1(c).

     

    2.2 "Piggyback"
      Registration.
      If the
      Company proposes to register (including, for this purpose, a registration
      effected by the Company for stockholders other than the Holders) any of its
      securities under the Securities Act in connection with the public offering
      of
      such securities solely for cash (other than in an Excluded Registration), the
      Company shall, at such time, promptly give each Holder notice of such
      registration. Upon the request of each Holder given within twenty (20) days
      after such notice is given by the Company, the Company shall, subject to the
      provisions of Section 2.3, cause to be registered all Registrable Common Stock
      that
      each
      such
      Holder has requested to be included in such registration. The Company shall
      have
      the right to terminate or withdraw any registration initiated by it under this
      Section 2.2 before the effective date of such registration, whether or not
      any
      Holder has elected to include Registrable Securities in such registration.
      The
      expenses (other than Selling Expenses) of such withdrawn registration shall
      be
      borne by the Company in accordance with Section 2.6.

     

    
      
        
        

      

      
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    2.3 Underwriting
      Requirements.

     

    (a) If,
      pursuant to Section 2.1, the Initiating Holders intend to distribute the
      Registrable Securities covered by their request by means of an underwritten
      offering, they shall so advise the Company as a part of their request made
      pursuant to Section 2.1, and the Company shall include such information in
      the
      Demand Notice. The underwriter(s) will be selected by the Initiating Holders,
      subject only to the reasonable approval of the Company. In such event, the
      right
      of any Holder to include such Holder's Registrable Securities in such
      registration shall be conditioned upon such Holder's participation in such
      underwriting and the inclusion of such Holder's Registrable Securities in the
      underwriting to the extent provided herein. All Holders proposing to distribute
      their securities through such underwriting shall (together with the Company
      as
      provided in Section 2.4(e)) enter into an underwriting agreement in customary
      form with the underwriter(s) selected for such underwriting. Notwithstanding
      any
      other provision of this Section 2.3, if the managing underwriter(s) advise(s)
      the Initiating Holders in writing that marketing factors require a limitation
      on
      the number of shares to be underwritten, then the Initiating Holders shall
      so
      advise all Holders of Registrable Securities that otherwise would be
      underwritten pursuant hereto, and the number of Registrable Securities that
      may
      be included in the underwriting shall be allocated among such Holders of
      Registrable Securities, including the Initiating Holders, in proportion (as
      nearly as practicable) to the number of Registrable Securities owned by each
      Holder or in such other proportion as shall mutually be agreed to by all such
      selling Holders; provided,
      however,
      that the
      number of Registrable Securities held by the Holders to be included in such
      underwriting shall not be reduced unless all other securities are first entirely
      excluded from the underwriting. To facilitate the allocation of shares in
      accordance with the above provisions, the Company or the underwriters may round
      the number of shares allocated to any Holder to the nearest 100
      shares.

     

    (b) In
      connection with any offering involving an underwriting of shares of the
      Company's capital stock pursuant to Section 2.2, the Company shall not be
      required to include any of the Holders' Registrable Securities in such
      underwriting unless the Holders accept the terms of the underwriting as agreed
      upon between the Company and its underwriters, and then only in such quantity
      as
      the underwriters in their sole discretion determine will not jeopardize the
      success of the offering by the Company. If the total number of securities,
      including Registrable Securities, requested by stockholders to be included
      in
      such offering exceeds the number of securities to be sold (other than by the
      Company) that the underwriters in their reasonable discretion determine is
      compatible with the success of the offering, then the Company shall be required
      to include in the offering only that number of such securities, including
      Registrable Securities, which the underwriters and the Company in their sole
      discretion determine will not jeopardize the success of the offering. If the
      underwriters determine that less than all of the Registrable Securities
      requested to be registered can be included in such offering, then the
      Registrable Securities that are included in such offering shall be allocated
      among the selling Holders in proportion (as nearly as practicable) to) the
      number of Registrable Securities owned by each selling Holder or in such other
      proportions as shall mutually be agreed to by all such selling Holders. To
      facilitate the allocation of shares in accordance with the above provisions,
      the
      Company or the underwriters may round the number of shares allocated to any
      Holder to the nearest 100 shares. Notwithstanding the foregoing, in no event
      shall the number of Registrable Securities included in the offering be reduced
      unless all other securities (other than securities to be sold by the Company)
      are first entirely excluded from the offering; provided,
      however, that
      if
      the Company pays to Investor 25% of the proceeds from a Capital Transaction
      (as
      such term is defined in the Note) as a prepayment on the Note, the Registrable
      Securities may be reduced to permit registration of securities pursuant to
      registration rights granted by the Company in connection with such Capital
      Transaction.. For purposes of the provision in this Section 2.3(b) concerning
      apportionment, for any selling Holder that is a partnership, limited liability
      company, or corporation, the partners, members, retired partners, retired
      members, stockholders, and Affiliates of such Holder, or the estates and
      Immediate Family Members of any such partners, retired partners, members, and
      retired members and any trusts for the benefit of any of the foregoing Persons,
      shall be deemed to be a single "selling Holder," and any pro rata reduction
      with
      respect to such "selling Holder" shall be based upon the aggregate number of
      Registrable Securities owned by all Persons included in such "selling Holder,"
      as defined in this sentence.

     

    
      
        
        

      

      
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    (c) For
      purposes of Section 2.1, a registration shall not be counted as "effected"
      if,
      as a result of an exercise of the underwriter's cutback provisions in Section
      2.3(a), fewer than fifty percent (50%) of the total number of Registrable
      Securities that Holders have requested to be included in such registration
      statement are actually included.

     

    2.4 Obligations
      of the Company.
      Whenever required under this Section 2 to effect the registration of any
      Registrable Securities, the Company shall, as expeditiously as reasonably
      possible:

     

    (a) prepare
      and file with the SEC a registration statement with respect to such Registrable
      Securities and use its commercially reasonable efforts to cause such
      registration statement to become effective (including, without limitation,
      by
      responding to comments from the SEC to the registration statement, and, if,
      required by the SEC staff, by reducing the number of Registrable Shares to
      be
      registered) and, upon the request of the Holders of a majority of the
      Registrable Securities registered thereunder, keep such registration statement
      effective for a period of up to one hundred twenty (120) days or, if earlier,
      until the distribution contemplated in the registration statement has been
      completed; provided,
      however,
      that (i)
      such one hundred twenty (120) day period shall be extended for a period of
      time
      equal to the period the Holder refrains, at the request of an underwriter of
      Common Stock (or other securities) of the Company, from selling any securities
      included in such registration;

     

    (b) prepare
      and file with the SEC such amendments and supplements to such registration
      statement, and the prospectus used in connection with such registration
      statement, as may be necessary to comply with the Securities Act in order to
      enable the disposition of all securities covered by such registration
      statement;

     

    (c) furnish
      to the selling Holders such numbers of copies of a prospectus, including a
      preliminary prospectus, as required by the Securities Act, and such other
      documents as the Holders may reasonably request in order to facilitate their
      disposition of their Registrable Securities;

     

    (d) use
      its
      commercially reasonable efforts to register and qualify the securities covered
      by such registration statement under such other securities or blue-sky laws
      of
      such jurisdictions as shall be reasonably requested by the selling Holders;
      provided that the Company shall not be required to qualify to do business or
      to
      file a general consent to service of process in any such states or
      jurisdictions, unless the Company is already subject to service in such
      jurisdiction and except as may be required by the Securities Act;

     

    
      
        
        

      

      
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    (e) in
      the
      event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form, with
      the underwriter(s) of such offering;

     

    (f) use
      its
      commercially reasonable efforts to cause all such Registrable Securities covered
      by such registration statement to be listed on a national securities exchange
      or
      trading system and each securities exchange and trading system (if any) on
      which
      similar securities issued by the Company are then listed;

     

    (g) provide
      a
      transfer agent and registrar for all Registrable Securities registered pursuant
      to this Agreement and provide a CUSIP number for all such Registrable
      Securities, in each case not later than the effective date of such
      registration;

     

    (h) promptly
      make available for inspection by the selling Holders, any managing
      underwriter(s) participating in any disposition pursuant to such registration
      statement, and any attorney or accountant or other agent retained by any such
      underwriter or selected by the selling Holders, all financial and other records,
      pertinent corporate documents, and properties of the Company, and cause the
      Company's officers, directors, employees, and independent accountants to supply
      all information reasonably requested by any such seller, underwriter, attorney,
      accountant, or agent, in each case, as necessary or advisable to verify the
      accuracy of the information in such registration statement and to conduct
      appropriate due diligence in connection therewith; provided,
      however,
      the
      Company shall not disclose material non-public information to the Holders or
      to
      any such advisor or representative of the Holders, unless prior to disclosure
      of
      such information the Company identifies such information as being material
      non-public information and provides the Holders, such advisors and
      representatives with the opportunity to accept or refuse to accept such material
      non-public information for review;

     

    (i) notify
      each selling Holder, promptly after the Company receives notice thereof, of
      the
      time when such registration statement has been declared effective or a
      supplement to any prospectus forming a part of such registration statement
      has
      been filed; and

     

    (j) after
      such registration statement becomes effective, notify each selling Holder of
      any
      request by the SEC that the Company amend or supplement such registration
      statement or prospectus.

     

    2.5 Obligation
      of Holders.
      

     

    (a) It
      shall
      be a condition precedent to the obligations of the Company to take any action
      pursuant to this Section 2 with respect to the Registrable Securities of any
      selling Holder that such Holder shall furnish to the Company such information
      regarding itself, the Registrable Securities held by it, and the intended method
      of disposition of such securities as is reasonably required to effect the
      registration of such Holder's Registrable Securities.

     

    
      
        
        

      

      
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    (b) Each
      Holder agrees to cooperate with the Company as reasonably requested by the
      Company in connection with the preparation and filing of a registration
      statement hereunder, unless the Holder has notified the Company of its election
      to exclude all of its Registrable Securities from such registration
      statement.

     

    (c) The
      Holders agree that, upon receipt of any notice from the Company of the happening
      of any event rendering a registration statement no longer effective, the Holders
      will immediately discontinue disposition of Registrable Securities pursuant
      to
      the registration statement covering such Registrable Securities, until the
      Holder's receipt of copies of the supplemented or amended prospectus filed
      with
      the SEC and declared effective and, if so directed by the Company, the Holders
      shall deliver to the company or destroy (and deliver to the Company a
      certificate of destruction) all copies in the Holder's possession of the
      prospectus covering the Registrable Securities current at the time of receipt
      of
      such notice.

     

    2.6 Expenses
      of Registration.
      All
      expenses (other than Selling Expenses) incurred in connection with
      registrations, filings, or qualifications pursuant to Section 2, including
      all
      registration, filing, and qualification fees; printers' and accounting fees;
      fees and disbursements of counsel for the Company; and the reasonable fees
      and
      disbursements of one counsel for the selling Holders ("Selling
      Holder Counsel"),
      shall
      be borne and paid by the Company; provided,
      however,
      that the
      Company shall not be required to pay for any expenses of any registration
      proceeding begun pursuant to Section 2.1 if the registration request is
      subsequently withdrawn at the request of the Holders of a majority of the
      Registrable Securities to be registered (in which case all selling Holders
      shall
      bear such expenses pro rata based upon the number of Registrable Securities
      that
      were to be included in the withdrawn registration), unless the Holders of a
      majority of the Registrable Securities agree to forfeit their right to one
      registration pursuant to Section 2.1(a); and, provided
      further,
      that, if
      at the time of such withdrawal, the Holders shall have learned of a material
      adverse change in the condition, business, or prospects of the Company from
      that
      known to the Holders at the time of their request and have withdrawn the request
      with reasonable promptness after learning of such information, then the Holders
      shall not be required to pay any of such expenses and shall not forfeit their
      right to one registration pursuant to Section 2.1(a). All Selling Expenses
      relating to Registrable Securities registered pursuant to this Section 2 shall
      be borne and paid by the Holders pro rata on the basis of the number of
      Registrable Securities registered on their behalf.

     

    2.7 Delay
      of Registration.
      No
      Holder shall have any right to obtain or seek an injunction restraining or
      otherwise delaying any registration pursuant to this Agreement as the result
      of
      any controversy that might arise with respect to the interpretation or
      implementation of this Section 2.

     

    2.8 Indemnification.
      If any
      Registrable Securities are included in a registration statement under this
      Section 2:

     

    
      
        
        

      

      
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    (a) To
      the
      extent permitted by law, the Company will indemnify and hold harmless each
      selling Holder, and the partners, members, officers, directors, and stockholders
      of each such Holder; legal counsel and accountants for each such Holder; any
      underwriter (as defined in the Securities Act) for each such Holder; and each
      Person, if any, who controls such Holder or underwriter within the meaning
      of
      the Securities Act or the Exchange Act, against any Damages, and the Company
      will pay to each such Holder, underwriter, controlling Person, or other
      aforementioned Person any legal or other expenses reasonably incurred thereby
      in
      connection with investigating or defending any claim or proceeding from which
      Damages may result, as such expenses are incurred; provided,
      however,
      that the
      indemnity agreement contained in this Section 2.8(a) shall not apply to amounts
      paid in settlement of any such claim or proceeding if such settlement is
      effected without the consent of the Company, which consent shall not be
      unreasonably withheld, nor shall the Company be liable for any Damages to the
      extent that they arise out of or are based upon actions or omissions made in
      reliance upon and in conformity with written information furnished by or on
      behalf of any such Holder, underwriter, controlling Person, or other
      aforementioned Person expressly for use in connection with such registration;
      provided, further, that the Company shall not be liable in any such case to
      the
      extent such Damages arise out of or are based upon an untrue statement or
      alleged untrue statement or omission or alleged omission in a registration
      statement or prospectus, if such untrue statement or alleged untrue statement
      or
      omission or alleged omission is completely corrected in an amendment or
      supplement to the registration statement or prospectus and has been made
      available to the seller of the Registrable Securities pursuant to the terms
      hereof and the seller of Registrable Securities thereafter fails to deliver
      such
      prospectus as so amended or supplemented prior to or concurrently with the
      sale
      of Registrable Securities to the person asserting such Damages.

     

    (b) To
      the
      extent permitted by law, each selling Holder, severally and not jointly, will
      indemnify and hold harmless the Company, and each of its directors, each of
      its
      officers who has signed the registration statement, each Person (if any), who
      controls the Company within the meaning of the Securities Act, legal counsel
      and
      accountants for the Company, any underwriter (as defined in the Securities
      Act),
      any other Holder selling securities in such registration statement, and any
      controlling Person of any such underwriter or other Holder, against any Damages,
      in each case only to the extent that such Damages arise out of or are based
      upon
      actions or omissions made in reliance upon and in conformity with written
      information furnished by or on behalf of such selling Holder expressly for
      use
      in connection with such registration; and each such selling Holder will pay
      to
      the Company and each other aforementioned Person any legal or other expenses
      reasonably incurred thereby in connection with investigating or defending any
      claim or proceeding from which Damages may result, as such expenses are
      incurred; provided,
      however,
      that the
      indemnity agreement contained in this Section 2.8(b) shall not apply to amounts
      paid in settlement of any such claim or proceeding if such settlement is
      effected without the consent of the Holder, which consent shall not be
      unreasonably withheld; and provided further that in no event shall the aggregate
      amounts payable by any Holder by way of indemnity or contribution under Sections
      2.8(b) and 2.8(d) exceed the proceeds from the offering received by such Holder
      (net of any Selling Expenses paid by such Holder), except in the case of fraud
      or willful misconduct by such Holder.

     

    (c) Promptly
      after receipt by an indemnified party under this Section 2.8 of notice of the
      commencement of any action (including any governmental action) for which a
      party
      may be entitled to indemnification hereunder, such indemnified party will,
      if a
      claim in respect thereof is to be made against any indemnifying party under
      this
      Section 2.8, give the indemnifying party notice of the commencement thereof.
      The
      indemnifying party shall have the right to participate in such action and,
      to
      the extent the indemnifying party so desires, participate jointly with any
      other
      indemnifying party to which notice has been given, and to assume the defense
      thereof with counsel mutually satisfactory to the parties; provided,
      however,
      that an
      indemnified party (together with all other indemnified parties that may be
      represented without conflict by one counsel) shall have the right to retain
      one
      separate counsel, with the fees and expenses to be paid by the indemnifying
      party, if representation of such indemnified party by the counsel retained
      by
      the indemnifying party would be inappropriate due to actual or potential
      differing interests between such indemnified party and any other party
      represented by such counsel in such action. The failure to give notice to the
      indemnifying party within a reasonable time of the commencement of any such
      action shall relieve such indemnifying party of any liability to the indemnified
      party under this Section 2.8, to the extent that such failure materially
      prejudices the indemnifying party's ability to defend such action. The failure
      to give notice to the indemnifying party will not relieve it of any liability
      that it may have to any indemnified party otherwise than under this Section
      2.8.

     

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

     

    (d) To
      provide for just and equitable contribution to joint liability under the
      Securities Act in any case in which either (i) any party otherwise entitled
      to
      indemnification hereunder makes a claim for indemnification pursuant to this
      Section 2.8 but it is judicially determined (by the entry of a final judgment
      or
      decree by a court of competent jurisdiction and the expiration of time to appeal
      or the denial of the last right of appeal) that such indemnification may not
      be
      enforced in such case, notwithstanding the fact that this Section 2.8 provides
      for indemnification in such case, or (ii) contribution under the Securities
      Act
      may be required on the part of any party hereto for which indemnification is
      provided under this Section 2.8, then, and in each such case, such parties
      will
      contribute to the aggregate losses, claims, damages, liabilities, or expenses
      to
      which they may be subject (after contribution from others) in such proportion
      as
      is appropriate to reflect the relative fault of each of the indemnifying party
      and the indemnified party in connection with the statements, omissions, or
      other
      actions that resulted in such loss, claim, damage, liability, or expense, as
      well as to reflect any other relevant equitable considerations. The relative
      fault of the indemnifying party and of the indemnified party shall be determined
      by reference to, among other things, whether the untrue or allegedly untrue
      statement of a material fact, or the omission or alleged omission of a material
      fact, relates to information supplied by the indemnifying party or by the
      indemnified party and the parties' relative intent, knowledge, access to
      information, and opportunity to correct or prevent such statement or omission;
      provided,
      however,
      that, in
      any such case, (x) no Holder will be required to contribute any amount in excess
      of the public offering price of all such Registrable Securities offered and
      sold
      by such Holder pursuant to such registration statement, and (y) no Person guilty
      of fraudulent misrepresentation (within the meaning of Section 11(f) of the
      Securities Act) will be entitled to contribution from any Person who was not
      guilty of such fraudulent misrepresentation; and provided further that in no
      event shall a Holder's liability pursuant to this Section 2.8(d), when combined
      with the amounts paid or payable by such Holder pursuant to Section 2.8(b),
      exceed the proceeds from the offering received by such Holder (net of any
      Selling Expenses) paid by such Holder), except in the case of willful misconduct
      or fraud by such Holder.

     

    (e) Notwithstanding
      the foregoing, to the extent that the provisions on indemnification and
      contribution contained in the underwriting agreement entered into in connection
      with the underwritten public offering are in conflict with the foregoing
      provisions, the provisions in the underwriting agreement shall
      control.

     

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

     

    (f) Unless
      otherwise superseded by an underwriting agreement entered into in connection
      with the underwritten public offering, the obligations of the Company and
      Holders under this Section 2.8 shall survive the completion of any offering
      of
      Registrable Securities in a registration under this Section 2, and otherwise
      shall survive the termination of this Agreement.

     

    2.9 Reports
      Under Exchange Act.
      With a
      view to making available to the Holders the benefits of SEC Rule 144 and any
      other rule or regulation of the SEC that may at any time permit a Holder to
      sell
      securities of the Company to the public without registration, the Company
      shall:

     

    (a) make
      and
      keep available adequate current public information, as those terms are
      understood and defined in SEC Rule 144, at all times after the date of this
      Agreement;

     

    (b) use
      commercially reasonable efforts to file with the SEC in a timely manner all
      reports and other documents required of the Company under the Securities Act
      and
      the Exchange Act (at any time after the Company has become subject to such
      reporting requirements); and

     

    (c) furnish
      to any Holder, so long as the Holder owns any Registrable Securities, forthwith
      upon request (i) to the extent accurate, a written statement by the Company
      that
      it has complied with the reporting requirements of SEC Rule 144, the Securities
      Act, and the Exchange Act (at any time after the Company has become subject
      to
      such reporting requirements), or that it qualifies as a registrant whose
      securities may be resold pursuant to Form S-3 (at any time after the
      Company so qualifies); (ii) a copy of the most recent annual or quarterly report
      of the Company and such other reports and documents so filed by the Company;
      and
      (iii) such other information as may be reasonably requested in availing any
      Holder of any rule or regulation of the SEC that permits the selling of any
      such
      securities without registration (at any time after the Company has become
      subject to the reporting requirements under the Exchange Act) or pursuant to
      Form S-3 (at any time after the Company so qualifies to use such
      form).

     

    2.10 Removal
      of Legends and Delivery of Certificates.
      The
      Company shall instruct its transfer agent to remove any legends from shares
      of
      Common Stock eligible to be sold under Rule 144 of the Securities Act and to
      issue such unlegended certificates to any Holder within three (3) business
      days
      following such Holder's request so long as the Holder has provided reasonable
      assurances to the Company, and based thereon the Company has determined, that
      such shares of Common Stock can be sold pursuant to Rule 144.

     

    2.11 Limitations
      on Subsequent Registration Rights.
      From
      and after the date of this Agreement, the Company shall not, without the prior
      written consent of the Holders of a majority of the Registrable Securities
      then
      outstanding, enter into any agreement with any holder or prospective holder
      of
      any securities of the Company that would (i) allow such holder or prospective
      holder to include such securities in any registration unless, under the terms
      of
      such agreement, such holder or prospective holder may include such securities
      in
      any such registration only to the extent that the inclusion of such securities
      will not reduce the number of the Registrable Securities of the Holders that
      are
      included, or (ii) allow such holder or prospective holder to initiate a demand
      for registration of any securities held by such holder or prospective holder;
      provided,
      however,
      that the
      limitations set forth in this Section 2.11 shall not apply to registration
      rights granted in connection with a Capital Transaction if, in connection with
      any such Capital Transaction, the Company pays to Investor 25% of the proceeds
      received in such Capital Transaction as a prepayment on the Note.

     

    
      
        
        

      

      
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          11
          -

        
          

        

      

      
        
        

      

    

     

    2.12 "Market
      Stand off" Agreement.
      Each
      Holder hereby agrees that it will not, without the prior written consent of
      the
      managing underwriter, during the period commencing on the date of the final
      prospectus relating to the registration by the Company for its own behalf of
      shares of its Common Stock or any other equity securities under the Securities
      Act on a registration statement on Form S-1, Form S-2, or Form S-3, and ending
      on the date specified by the Company and the managing underwriter (such period
      not to exceed ninety (90) days, which period may be extended upon the request
      of
      the managing underwriter, to the extent required by any Financial Industry
      Regulatory Authority ("FINRA")
      rules,
      for an additional period of up to fifteen (15) days if the Company issues or
      proposes to issue an earnings or other public release within fifteen (15) days
      of the expiration of the 90-day lockup period), (i) lend; offer; pledge; sell;
      contract to sell; sell any option or contract to purchase; purchase any option
      or contract to sell; grant any option, right, or warrant to purchase; or
      otherwise transfer or dispose of, directly or indirectly, any shares of Common
      Stock or any securities convertible into or exercisable or exchangeable
      (directly or indirectly) for Common Stock held immediately before the effective
      date of the registration statement for such offering or (ii) enter into any
      swap
      or other arrangement that transfers to another, in whole or in part, any of
      the
      economic consequences of ownership of such securities, whether any such
      transaction described in clause (i) or (ii) above is to be settled by delivery
      of Common Stock or other securities, in cash, or otherwise. The foregoing
      provisions of this Section 2.11 shall not apply to the sale of any shares to
      an
      underwriter pursuant to an underwriting agreement, and shall be applicable
      to
      the Holders only if all officers and directors are subject to the same
      restrictions and the Company uses commercially reasonable efforts to obtain
      a
      similar agreement from all stockholders individually owning more than one
      percent (1%) of the Company's outstanding Common Stock. The underwriters in
      connection with such registration are intended third party beneficiaries of
      this
      Section 2.11 and shall have the right, power, and authority to enforce the
      provisions hereof as though they were a party hereto. Each Holder further agrees
      to execute such agreements as may be reasonably requested by the underwriters
      in
      connection with such registration that are consistent with this Section 2.11
      or
      that are necessary to give further effect thereto. Any discretionary waiver
      or
      termination of the restrictions of any or all of such agreements by the Company
      or the underwriters shall apply pro rata to all Holders subject to such
      agreements, based on the number of shares subject to such
      agreements.

     

    2.13 Termination
      of Registration Rights.
      The
      right of any Holder to request registration or inclusion of Registrable
      Securities in any registration pursuant to Section 2.1 or Section 2.2 shall
      terminate upon the earliest to occur of:

     

    (a) when
      all
      of such Holder's Registrable Securities could be sold without restriction under
      SEC Rule 144; provided,
      however,
      that
      this Agreement shall be reinstated and remain in full force and effect at any
      time before the sixth anniversary of this Agreement when the Holder's
      Registrable Securities cannot be sold without restriction under SEC
      Rule 144; and

     

    
      
        
        

      

      
        -
          12
          -

        
          

        

      

      
        
        

      

    

     

    (b) the
      fifth
      anniversary of the date of this Agreement.

     

    3. Miscellaneous.

     

    3.1 Successors
      and Assigns.
      The
      rights under this Agreement may be assigned (but only with all related
      obligations and upon written notice to the Company) by a Holder to a transferee
      of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a
      Holder's Immediate Family Member or trust for the benefit of an individual
      Holder or one or more of such Holder's Immediate Family Members; or (iii) after
      such transfer, holds at least 10,000 shares of Registrable Securities (subject
      to appropriate adjustment for stock splits, stock dividends, combinations,
      and
      other recapitalizations). For the purposes of determining the number of shares
      of Registrable Securities held by a transferee, the holdings of a transferee
      (1)
      that is an Affiliate or stockholder of a Holder; (2) who is a Holder's Immediate
      Family Member; or (3) that is a trust for the benefit of an individual Holder
      or
      such Holder's Immediate Family Member shall be aggregated together and with
      those of the transferring Holder; provided further that all transferees who
      would not qualify individually for assignment of rights shall have a single
      attorney-in-fact for the purpose of exercising any rights, receiving notices,
      or
      taking any action under this Agreement. The terms and conditions of this
      Agreement inure to the benefit of and are binding upon the respective successors
      and permitted assignees of the parties. Nothing in this Agreement, express
      or
      implied, is intended to confer upon any party other than the parties hereto
      or
      their respective successors and permitted assignees any rights, remedies,
      obligations or liabilities under or by reason of this Agreement, except as
      expressly provided herein.

     

    3.2 Governing
      Law.
      This
      Agreement and any controversy arising out of or relating to this Agreement
      shall
      be governed by and construed in accordance with the General Corporation Law
      of
      the State of Delaware as to matters within the scope thereof, and as to all
      other matters shall be governed by and construed in accordance with the internal
      laws of State of Texas, without regard to conflict of law principles that would
      result in the application of any law other than the law of the State of
      Texas.

     

    3.3 Counterparts;
      Facsimile.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. This Agreement may also be executed and delivered by facsimile
      signature and in two or more counterparts, each of which shall be deemed an
      original, but all of which together shall constitute one and the same
      instrument.

     

    3.4 Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are for convenience only and are
      not
      to be considered in construing or interpreting this Agreement.

     

    3.5 Notices.
      All
      notices and other communications given or made pursuant to this Agreement shall
      be in writing and shall be deemed effectively given upon the earlier of actual
      receipt or: (i) personal delivery to the party to be notified; (ii) when sent,
      if sent by electronic mail or facsimile during the recipient's normal business
      hours, and if not sent during normal business hours, then on the recipient's
      next business day; (iii) five (5) days after having been sent by registered
      or
      certified mail, return receipt requested, postage prepaid; or (iv) one (1)
      business day after the business day of deposit with a nationally recognized
      overnight courier, freight prepaid, specifying next-day delivery, with written
      verification of receipt. All communications shall be sent to the respective
      parties at their addresses as set forth on Schedule A hereto, or to the
      principal office of the Company and to the attention of the Chief Executive
      Officer, in the case of the Company, or to such email address, facsimile number,
      or address as subsequently modified by written notice given in accordance with
      this Section 3.5.

     

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

     

    3.6 Amendments
      and Waivers.
      Any
      term of this Agreement may be amended and the observance of any term of this
      Agreement may be waived (either generally or in a particular instance, and
      either retroactively or prospectively) only with the written consent of the
      Company and the holders of a majority of the Registrable Securities then
      outstanding. No waivers of or exceptions to any term, condition, or provision
      of
      this Agreement, in any one or more instances, shall be deemed to be or construed
      as a further or continuing waiver of any such term, condition, or
      provision.

     

    3.7 Severability.
      In case
      any one or more of the provisions contained in this Agreement is for any reason
      held to be invalid, illegal or unenforceable in any respect, such invalidity,
      illegality, or unenforceability shall not affect any other provision of this
      Agreement, and such invalid, illegal, or unenforceable provision shall be
      reformed and construed so that it will be valid, legal, and enforceable to
      the
      maximum extent permitted by law.

     

    3.8 Aggregation
      of Stock.
      All
      shares of Registrable Securities held or acquired by Affiliates shall be
      aggregated together for the purpose of determining the availability of any
      rights under this Agreement and such Affiliated persons may apportion such
      rights as among themselves in any manner they deem appropriate.

     

    3.9 Entire
      Agreement.
      This
      Agreement (including any Schedules and Exhibits hereto) constitutes the full
      and
      entire understanding and agreement among the parties with respect to the subject
      matter hereof, and any other written or oral agreement relating to the subject
      matter hereof existing between the parties is expressly canceled. 

     

    3.10 Delays
      or Omissions.
      No
      delay or omission to exercise any right, power, or remedy accruing to any party
      under this Agreement, upon any breach or default of any other party under this
      Agreement, shall impair any such right, power, or remedy of such nonbreaching
      or
      nondefaulting party, nor shall it be construed to be a waiver of or acquiescence
      to any such breach or default, or to any similar breach or default thereafter
      occurring, nor shall any waiver of any single breach or default be deemed a
      waiver of any other breach or default theretofore or thereafter occurring.
      All
      remedies, whether under this Agreement or by law or otherwise afforded to any
      party, shall be cumulative and not alternative.

     

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date first
      written above.

    

      
        	 	
                BOO
                  KOO HOLDINGS, INC.

              
	 	 
	 	
                By:__________________________________________________________

              
	 	 
	 	
                Print
                  Name:__________________________________________________

              
	 	 
	 	
                Title:_________________________________________________________

              
	 	 
	 	
                HOLIGAN
                  RACING, L.P.

              
	 	 
	 	
                By:__________________________________________________________

              
	 	 
	 	
                Print
                  Name:__________________________________________________

              
	 	 
	 	
                Title:_________________________________________________________

              

      

    

     

    
      
        
        

      

      
        -
          15
          -Unassociated Document

    
      Exhibit
        4.12

       

      

      WINSONIC
        DIGITAL MEDIA GROUP, LTD.  

      

       

      THIS
        NOTE
        AND THE UNDERLYING SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES
        ONLY
        AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
        (THE
        "ACT"), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THIS NOTE AND THE
        UNDERLYING SECURITIES MAY NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR
        OTHERWISE OR TRANSFERRED IN THE ABSENCE OF REGISTRATION OR AN EXEMPTION
        THEREFROM UNDER SUCH ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS.
        THE
        PAYOR (AS DEFINED BELOW), IN ITS SOLE DISCRETION, SHALL HAVE THE RIGHT TO
        REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE
        EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH
        ANY
        PROPOSED TRANSFER NOR IS SUCH TRANSFER IN VIOLATION OF ANY APPLICABLE STATE
        SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY NOTE ISSUED IN EXCHANGE
        FOR THIS NOTE.

       

      WINSONIC
        DIGITAL MEDIA GROUP, LTD.

      6%
        CONVERTIBLE SUBORDINATED
        PROMISSORY NOTE

       

      
        	
                $_________

              	
                February
                  9 , 2008

              
	 	 

      

      FOR
        VALUE
        RECEIVED, Winsonic Digital Media Group, Ltd., a Nevada corporation
        ("Payor"),
        having its executive office at 101 Marietta Street, Suite 2600, Atlanta,
        Georgia
        30303 promises to pay to ____________
        ("Payee"), having an address at _______________________ (or at such other
        place
        as Payee may from time to time hereafter direct by notice in writing to Payor),
        the principal sum of _________ dollars ($_______) plus accrued interest,
        on the
        first to occur of the following dates:

       

      (i) February
        9, 2009 (the "Maturity
        Date");
        

       

      (ii) the
        date on which all outstanding amounts under this Note are prepaid in full
        pursuant to Section 2 hereof (the "Prepayment
        Date");
        

       

      (iii) the
        date (the "Conversion
        Date")
        on
        which (1) the outstanding principal amount of this Note plus accrued interest
        is
        automatically converted into the Payor's common stock, par value $0.001 per
        share (the "Common
        Stock")
        pursuant to Section 4.2 hereof or (2) the Payee elects to convert this Note
        into
        Common Stock of the Payor pursuant to Section 4.1 hereof, which election
        may be
        made at any time by Payee by delivering a conversion notice in writing to
        Payor;
        and

       

      (iv)
        any
        other date on which the principal amount of, or accrued unpaid interest on,
        this
        Note is declared to be, or becomes, due and payable pursuant to its terms
        prior
        to the Maturity Date (the "Acceleration
        Date").

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1. Computation
        of Interest; Payments.

       

      1.1. The
        principal amount of this Note outstanding from time to time shall bear interest
        at the rate of six percent (6%) per annum (the "Interest
        Rate")
        from
        the date hereof through the earliest to occur of (i) the Maturity Date;
        (ii) the Prepayment Date; (iii) the Conversion Date or (iv) the
        Acceleration Date.

       

      1.2. Interest
        accrued on this Note shall only be payable on the earliest to occur of (i)
        the
        Maturity Date; (ii) the Prepayment Date; (iii) the Conversion Date or (iv)
        the
        Acceleration Date.

       

      1.3. All
        payments made by the Payor on this Note shall be applied first to the payment
        of
        accrued unpaid interest on this Note and then to the reduction of the unpaid
        principal balance of this Note.

       

      1.4. In
        the
        event that the date for the payment of any amount payable under this Note
        falls
        due on a Saturday, Sunday or public holiday under the laws of the State of
        New
        York, the time for payment of such amount shall be extended to the next
        succeeding business day and interest at the Interest Rate shall continue
        to
        accrue on any principal amount so effected until the payment thereof on such
        extended due date.

       

      2. Prepayment.
        The
        Payor may, without prior notice, prepay the outstanding principal and accrued
        but unpaid interest of this Note in whole at any time, or in part from time
        to
        time, without penalty, fee or charge. Each prepayment of this Note shall
        first
        be applied to interest accrued through the date of prepayment and then to
        principal. 

       

      3. Merger
        Transaction.
        On or
        before the Maturity Date, if the Payor completes a transaction (“Merger
        Transaction”) in which (a) Payor is merged or consolidated with or into any
        other corporation in which the shareholders of the Payor shall own less than
        50%
        of the voting securities of the surviving corporation or (b) the acquirer
        purchases all or substantially all of the Payor’s assets, the unpaid principal
        and accrued and unpaid interest outstanding under the Note will be due and
        payable upon the closing of the Merger Transaction (the "Merger
        Acceleration Date"),
        subject to the Payee’s rights of conversion set forth in Section 4.1(b)
        below.

       

      4. Conversion.

       

      4.1. Voluntary
        Conversion.
        

       

      (a) Any
        holder of this Note has the right, at the holder's option, at any time and
        prior
        to payment or conversion of this Note, to convert any then unpaid principal
        of
        this Note (together with any accrued and unpaid interest due under this Note),
        in whole but not in part, into a whole number of shares of the Payor's Common
        Stock at a price per share equal to $0.20
        (subject
        to appropriate adjustments as set forth herein, the "Conversion
        Price")
        upon
        satisfaction of the conditions set forth in this Section 4.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      (b) On
        or
        before the Maturity Date, if the Payor completes a Merger Transaction, the
        Payee
        shall have the option for thirty (30) days prior to the Merger Acceleration
        Date
        to convert any then unpaid principal of this Note (together with any accrued
        and
        unpaid interest due under this Note) into a whole number of shares of the
        Payor's Common Stock at a price per share equal to the Conversion Price upon
        satisfaction of the conditions set forth in this Section 4.

      

      4.2. Automatic
        Conversion.
        On or
        before the Maturity Date, if the Payor completes an offering of its preferred
        stock, Common Stock or a combination of preferred stock and Common Stock
        for
        gross proceeds of at least $3,000,000 (an "Equity
        Financing"),
        the
        then unpaid principal of this Note (together with any accrued and unpaid
        interest due under this Note) will automatically convert into a whole number
        of
        shares of the Payor's Common Stock at a price per share equal to the Conversion
        Price. 

       

      4.3. Conversion
        Procedures.
        

       

      (a) Notice
        of Conversion Pursuant to Section 4.1.
        Before
        the Payee shall be entitled to convert this Note pursuant to Section 4.1
        hereof,
        it shall surrender this Note, and shall give written notice to the Payor
        (the
        "Conversion
        Notice")
        at its
        principal office, of the election to convert the same at least five business
        days prior to the effective date of such conversion. The Conversion Notice
        shall
        state the principal amount and accrued and unpaid interest which the Payee
        elects to convert, the number of shares of Payor's Common Stock to be issued
        in
        connection with such conversion and the effective date of such conversion
        (the
        "Voluntary
        Conversion Date").
        Payee
        shall cooperate with Payor and provide Payor with additional documentation
        or
        information upon reasonable request in order to enable the Conversion Shares
        to
        be issued.

       

      (b) Notice
        of Conversion Pursuant to Section 4.2.
        If this
        Note is automatically converted pursuant to Section 4.2, written notice shall
        be
        delivered to the Payee of this Note at the address last shown on the records
        of
        the Payor for the Payee or given by the Payee to the Payor for the purpose
        of
        notice, or, if no such address appears or is given, at the place where the
        principal office of the Payor is located, notifying the Payee of the conversion
        to be effected and the applicable conversion price, the principal amount
        of the
        Note to be converted, the amount of accrued interest to be converted, the
        date
        on which such conversion will occur (the "Automatic
        Conversion Date"
        and
        collectively with the Voluntary Conversion Date, the "Conversion
        Date")
        and
        calling upon such Payee to surrender to the Payor, in the manner and at the
        place designated, the Note.

       

      (c) Mechanics
        of Conversion.
        If this
        Note is to be converted pursuant to this Section 4, (i) Payee shall tender
        to
        Payor this Note for cancellation on or prior to the Conversion Date and (ii)
        as
        soon as practicable following receipt of this Note for cancellation, but
        in no
        event later than ten business days following such receipt, the Payor shall
        deliver to the Payee a certificate or certificates representing the number
        of
        shares of the Payor's Common Stock to which the Payee is entitled pursuant
        to
        this Section 4. Conversion of this Note shall be deemed to have been made
        as of
        the Conversion Date.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      (d) No
        Fractional Shares.
        No
        fractional shares of the Payor's Common Stock shall be issued upon conversion
        of
        this Note. In lieu of issuing any fractional shares of the Payor's Common
        Stock,
        Payor shall round up any conversion calculations so that only whole integrals
        of
        Common Stock shall be issued upon conversion.

       

      (e) Effect
        of Conversion.
        The
        delivery to the Payee of a certificate evidencing the shares of Common Stock
        into which this Note has been converted shall be deemed to satisfy the Payor's
        obligation to pay, when due, the principal and interest under this Note so
        converted. Any interest converted shall be deemed paid and not cancelled,
        extinguished or forfeited.

       

      (f) Taxes
        on Conversion.
        The
        Payor shall pay any and all documentary stamp or similar issue or transfer
        taxes
        or any other taxes payable in respect of the issue or delivery of Common
        Stock
        to Payee upon conversion of this Note.

       

      (g) Reservation
        of Common Stock.
        The
        Payor shall at all times when this Note shall be outstanding, reserve and
        keep
        available out of its authorized but unissued Common Stock, a number of shares
        of
        Common Stock as shall from time to time be sufficient to effect the conversion
        of this Note. The Payor shall, from time to time in accordance with the law
        of
        the state of the Payer's incorporation, take such corporate action as shall
        be
        necessary to ensure that the Payor may validly and legally issue fully paid
        and
        nonassessable shares of Common Stock to effect the conversion of this
        Note. 

       

      (h) Adjustment
        for Reorganization, Consolidation, Merger or Reclassification.
        If
        after the date hereof the Payor shall (i) effect a reorganization,
        (ii) consolidate with or merge into any other person or entity, (iii)
        change the shares of Common Stock issuable upon conversion of this Note into
        the
        same or a different number of shares of any class(es) or series of stock,
        whether by reclassification or otherwise or (iv) sell or transfer all or
        substantially all of its properties or assets to any other person or entity
        under any plan or arrangement contemplating the dissolution of the Payor,
        then,
        in each such case, the Payee, upon the conversion of this Note as provided
        in
        this Section 4 at any time or from time to time after the consummation of
        such
        reorganization, consolidation, reclassification, merger or sale, or the
        effective date of such dissolution, as the case may be, shall receive, in
        lieu
        of the shares of Common Stock issuable on such conversion immediately prior
        to
        such consummation or such effective date, as the case may be, the stock and
        property (including cash) to which the Payee would have been entitled upon
        the
        consummation of such reorganization, consolidation, reclassification or merger,
        or in connection with such dissolution, as the case may be, if the Note had
        been
        converted immediately prior thereto (assuming the payment by the Payee of
        the
        Conversion Price therefor as required hereby).

       

      5. Piggy-Back
        Registration Rights.

       

      5.1. Defined
        Terms.
        As used
        in this Section 5, terms defined elsewhere herein shall have their assigned
        meanings and each of the following terms shall have the following meanings
        (such
        definitions to be applicable to both the plural and singular of the terms
        defined):

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (a) Registrable
        Securities; Effectiveness Period.
        The
        term "Registrable
        Securities"
        shall
        mean any shares of Payor's Common Stock issuable upon conversion of this
        Note in
        accordance with the terms and conditions hereof. For the purposes of this
        Section 5, securities will cease to be Registrable Securities when (A) a
        registration statement under the Act, covering such Registrable Securities
        has
        been declared effective and (1) such Registrable Securities have been disposed
        of pursuant to such effective registration statement or (2) such registration
        statement has remained effective for 270 consecutive days, (B) such Registrable
        Securities are transferred pursuant to an exemption from the registration
        requirements of the Act, including, without limitation, Rules 144 and 144A
        promulgated thereunder, (C) such Registrable Securities are eligible for
        sale
        pursuant to Rule 144(k) of the Act (or any similar provision then in force)
        or
        (D) such Registrable Securities have been otherwise transferred and the Payor,
        in accordance with applicable law and regulations, has delivered new
        certificates or other evidences of ownership for such securities which are
        not
        subject to any stop transfer order or other restriction on transfer ((A)
        through
        (D) collectively referred to herein as the "Effectiveness
        Period").
        

       

      (b) Rightsholders.
        The
        term "Rightsholder"
        shall
        include the Payee, all successors and assigns of the Payee and all transferees
        of Registrable Securities where such transfer affirmatively includes the
        transfer and assignment of the rights of the Payee under this Note with respect
        to the transferred Registrable Securities and such transferee agrees in writing
        to assume all of the Payee’s agreements, obligations and liabilities under this
        Note.

       

      5.2. Piggy-Back
        Registration.

       

      (a) If,
        at
        any time on or after the date hereof and prior to the Maturity Date, the
        Payor
        proposes to file a registration statement under the Act with respect to an
        offering by the Payor or any other party of any class of equity security
        similar
        to any Registrable Securities (other than a registration statement on Form
        S-4
        or Form S-8 or any successor form or a registration statement filed solely
        in
        connection with a stock option or other employee benefit plan, an exchange
        offer, a business combination transaction or an offering of securities solely
        to
        the existing stockholders or employees of the Payor), then the Payor, on
        each
        such occasion, shall give written notice (each, a "Piggy-Back
        Notice")
        of
        such proposed filing to all of the Rightsholders owning Registrable Securities
        at least fifteen days before the anticipated filing date of such registration
        statement, and such Piggy-Back Notice also shall be required to offer to
        such
        Rightsholders the opportunity to register such aggregate number of Registrable
        Securities as each such Rightsholder may request. Each such Rightsholder
        shall
        have the right, exercisable for the five days immediately following the giving
        of a Piggy-Back Notice, to request, by written notice (each, a "Holder
        Notice")
        to the
        Payor, the inclusion of all or any portion of the Registrable Securities
        of such
        Rightsholders in such registration statement. The Payor shall use reasonable
        efforts to cause the managing underwriter(s) of a proposed underwritten offering
        to permit the inclusion of the Registrable Securities which were the subject
        of
        all Holder Notices in such underwritten offering on the same terms and
        conditions as any similar securities of the Payor included therein.
        Notwithstanding anything to the contrary contained in this Section 5.2(1),
        if
        the managing underwriter(s) of such underwritten offering or any proposed
        underwritten offering delivers a written opinion to the Rightsholders of
        Registrable Securities which were the subject of all Holder Notices that
        the
        total amount and kind of securities which they, the Payor and any other person
        intend to include in such offering is such as to materially and adversely
        affect
        the success of such offering, then the amount of securities to be offered
        for
        the accounts of such Rightsholders and persons other than the Payor shall
        be
        eliminated or reduced pro rata (based on the amount of securities owned by
        such
        Rightsholders and other persons which carry registration rights) to the extent
        necessary to reduce the total amount of securities to be included in such
        offering to the amount recommended by such managing underwriter(s) in the
        managing underwriter’s written opinion.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (b) Number
        of Piggy-Back Registrations; Expenses.
        The
        obligations of the Payor under this Section 5 shall be unlimited with respect
        to
        each Rightsholder. Subject to the provisions of Section 5.4 hereof, the Payor
        will pay all Registration Expenses (as defined below) in connection with
        any
        registration of Registrable Securities effected pursuant to this Section
        5, but
        the Payor shall not be responsible for the payment of any underwriter’s
        discount, commission or selling concession in connection therewith.

       

      (c) Withdrawal
        or Suspension of Registration Statement.
        Notwithstanding anything contained to the contrary in this Section 5, the
        Payor
        shall have the absolute right, whether before or after the giving of a
        Piggy-Back Notice or receipt of a Holder Notice, to determine not to file
        a
        registration statement to which the Rightsholders shall have the right to
        include their Registrable Securities therein, to withdraw such registration
        statement or to delay or suspend pursuing the effectiveness of such registration
        statement. In the event of such a determination after the giving of a Piggy-Back
        Notice, the Payor shall give notice of such determination to all Rightsholders
        and, thereupon, (A) in the case of a determination not to register or to
        withdraw such registration statement, the Payor shall be relieved of its
        obligation under this Section 5 to register any of the Registrable Securities
        in
        connection with such registration and (B) in the case of a determination
        to
        delay the registration, the Payor shall be permitted to delay or suspend
        the
        registration of Registrable Securities pursuant to this Section 5.2 for the
        same
        period as the delay in the registration of such other securities. No
        registration effected under this Section 5 shall relieve the Payor of its
        obligation to effect any registration upon demand otherwise granted to a
        Rightsholder under any other agreement with the Payor.

       

      5.3. Registration
        Procedures.

       

      (a) Obligations
        of the Payor.
        The
        Payor will, in connection with any registration pursuant to Section 5.2 hereof,
        as expeditiously as possible:

       

      (1) prepare
        and file with the Securities and Exchange Commission (the "Commission")
        a
        registration statement under the Act on any appropriate form chosen by the
        Payor, in the Payor’s sole discretion, which shall be available for the sale of
        all Registrable Securities in accordance with the intended method(s) of
        distribution thereof set forth in all applicable Holder Notices, and use
        the
        Payor’s commercially reasonable efforts to cause such registration statement to
        become effective as soon thereafter as reasonably practicable; provided,
        that,
        at least five business days before filing with the Commission of such
        registration statement, the Payor shall furnish to each Rightsholder whose
        Registrable Securities are to be included therein draft copies of such
        registration statement, including all exhibits thereto; and provided,
        further,
        the
        Payor shall modify or amend the registration statement as it relates to such
        Rightsholder as reasonably requested by such Rightsholder on a timely basis,
        and
        shall reasonably consider other changes to the registration statement (but
        not
        including any exhibit or document incorporated therein by reference) reasonably
        requested by such Rightsholder on a timely basis, in light of the requirements
        of the Act and any other applicable laws and regulations.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (2) prepare
        and file with the Commission such amendments and supplements to a registration
        statement and the prospectus used in connection therewith as may be necessary
        to
        keep the registration statement effective and to comply with the provisions
        of
        the Act with respect to the sale or other disposition of all securities covered
        by the registration statement during the Effectiveness Period;

      

      (3) furnish
        to such Rightsholder such number of copies of a prospectus, including a
        preliminary prospectus, in conformation with the requirements of the Act,
        and
        such other documents, as such Rightsholder may reasonably request;

      

      (4) use
        its
        reasonable efforts to register or qualify the Registrable Securities included
        in
        such registration statement under such other securities or blue sky laws
        of such
        jurisdictions as any Rightsholder whose Registrable Securities are included
        in
        such registration statement reasonably requests in writing and do any and
        all
        other acts and things which may be necessary or advisable to enable such
        Rightsholder to consummate the disposition in such jurisdictions of such
        Registrable Securities; provided,
        that
        the Payor will not be required to (i) qualify generally to do business in
        any
        jurisdiction where it would not otherwise be required to qualify but for
        this
        clause (4), (ii) subject itself to taxation in any such jurisdiction or (iii)
        take any action which would subject it to general service of process in any
        such
        jurisdiction;

      

      (5) notify
        each Rightsholder of any Registrable Securities covered by the registration
        statement, promptly at any time when a prospectus relating thereto is required
        to be delivered under the Act, of the occurrence of a Discontinuation Event
        (as
        defined below). For purposes of this Section 5.3(a)(5), a "Discontinuation
        Event"
        shall
        mean (i) when the Commission notifies the Payor that there will be a “review” of
        such registration statement and whenever the Commission comments in writing
        on
        such registration statement and until the Payor has addressed the comments
        in a
        supplemented prospectus and/or amended registration statement and/or
        supplementally; (ii) any request by the Commission or any other Federal or
        state
        governmental authority for amendments or supplements to such registration
        statement or prospectus or for additional information and until the request
        has
        been responded to; (iii) the issuance by the Commission of any stop order
        suspending the effectiveness of such registration statement covering any
        or all
        of the Registrable Securities or the initiation of any proceedings for that
        purpose; (iv) the receipt by the Payor of any notification with respect to
        the
        suspension of the qualification or exemption from qualification of any of
        the
        Registrable Securities for sale in any jurisdiction, or the initiation or
        threatening, in writing, of any proceeding for such purpose; and/or (v) the
        occurrence of any event or passage of time that makes the financial statements
        included in such registration statement ineligible for inclusion therein
        or any
        statement made in such registration statement or prospectus or any document
        incorporated or deemed to be incorporated therein by reference untrue in
        any
        material respect or that requires any revisions to such registration statement,
        prospectus or other documents so that, in the case of such registration
        statement or prospectus, as the case may be, it will not contain any untrue
        statement of a material fact or omit to state any material fact required
        to be
        stated therein or necessary to make the statements therein in light of the
        circumstances under which they were made, not misleading;

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (6) use
        reasonable efforts to obtain the withdrawal of any order suspending the
        effectiveness of such registration statement at the earliest possible time
        and
        to prevent the entry of such an order;

      

      (7) make
        available for inspection by each Rightsholder whose Registrable Securities
        are
        included in such registration statement, any underwriter(s) participating
        in any
        disposition pursuant to such registration statement, and any representative,
        agent or employee of or attorney or accountant retained by any such Rightsholder
        or underwriter(s) (collectively, the "Inspectors"),
        all
        financial and other records, pertinent corporate documents and properties
        of the
        Payor (collectively, the "Records")
        and
        cause the officers, directors and employees of the Payor to supply all
        information reasonably requested by any such Inspector in connection with
        such
        registration statement; provided,
        that
        records which the Payor determines, in good faith, to be confidential and
        which
        it notifies the Inspectors are confidential shall not be disclosed by the
        Inspectors, unless (i) the release of such Records is ordered pursuant to
        a
        subpoena or other order from a court of competent jurisdiction or (ii) the
        disclosure of such Records is required by any applicable law or regulation
        or
        any governmental regulatory body with jurisdiction over such Rightsholder
        or
        underwriter; provided,
        further,
        that
        such Rightsholder or underwriter(s) agree that such Rightsholder or
        underwriter(s) will, upon learning the disclosure of such Records is sought
        in a
        court of competent jurisdiction, give notice to the Payor and allow the Payor,
        at the Payor’s expense, to undertake appropriate action to prevent disclosure of
        the Records deemed confidential;

      

      (8) cooperate
        with the Rightsholder whose Registrable Securities are included in such
        registration statement and the managing underwriter(s), if any, to facilitate
        the timely preparation and delivery of certificates representing Registrable
        Securities to be sold thereunder, not bearing any restrictive legends, and
        enable such Registrable Securities to be in such denominations and registered
        in
        such names as such Rightsholder or any managing underwriter(s) may reasonably
        request at least two business days prior to any sale of Registrable
        Securities;

      

      (9) comply
        with all applicable rules and regulations of the Commission and promptly
        make
        generally available to its security holders an earnings statement covering
        a
        period of twelve months commencing, (i) in an underwritten offering, at the
        end
        of any fiscal quarter in which Registrable Securities are sold to
        underwriter(s), or (ii) in a non-underwritten offering, with the first month
        of
        the Payor’s first fiscal quarter beginning after the effective date of such
        registration statement, which earnings statement in each case shall satisfy
        the
        provisions of Section 11(a) of the Act;

      

      (10) provide
        a
        CUSIP number for all Registrable Securities not later than the effective
        date of
        the registration statement relating to the first public offering of Registrable
        Securities of the Payor pursuant hereto;

      

      (11) enter
        into such customary agreements (including an underwriting agreement in customary
        form) and take all such other actions reasonably requested by the Rightsholders
        holding a majority of the Registrable Securities included in such registration
        statement or the managing underwriter(s) in order to expedite and facilitate
        the
        disposition of such Registrable Securities and in such connection, whether
        or
        not an underwriting agreement is entered into and whether or not the
        registration is an underwritten registration, (i) make such representations
        and warranties, if any, to the holders of such Registrable Securities and
        any
        underwriter(s) with respect to the registration statement, prospectus and
        documents incorporated by reference, if any, in form, substance and scope
        as are
        customarily made by issuers to underwriter(s) in underwritten offerings and
        confirm the same if and when requested, (ii) obtain opinions of counsel to
        the
        Payor and updates thereof addressed to each such Rightsholder and the
        underwriter(s), if any, with respect to the registration statement, prospectus
        and documents incorporated by reference, if any, covering the matters
        customarily covered in opinions requested in underwritten offerings and such
        other matters as may be reasonably requested by such Rightsholders and
        underwriter(s), (iii) obtain a "comfort" letter from the Payor’s independent
        certified public accountants addressed to such Rightsholders and to the
        underwriter(s), if any, which letters shall be in customary form and cover
        matters of the type customarily covered in "comfort" letters by accountants
        in
        connection with underwritten public offerings, and (iv) deliver such documents
        and certificates as may be reasonably requested by the Rightsholders holding
        a
        majority of such Registrable Securities and managing underwriter(s), if any,
        to
        evidence compliance with any customary conditions contained in the underwriting
        agreement or other agreement entered into by the Payor; each such action
        required by this clause (11) shall be done at each closing under such
        underwriting or similar agreement or as and to the extent required thereunder;
        and

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (12) if
        requested by the holders of a majority of the Registrable Securities included
        in
        such registration statement, use its best efforts to cause all Registrable
        Securities which are included in such registration statement to be listed,
        subject to notice of issuance, by the date of the first sale of such Registrable
        Securities pursuant to such registration statement, on each securities exchange,
        if any, on which securities similar to the Registered Securities are
        listed.

      

      (b) Obligations
        of Rightsholders.
        In
        connection with any registration of Registrable Securities of a Rightsholder
        pursuant to Section 5.2 hereof:

       

      (1) The
        Payor
        may require that each Rightsholder whose Registrable Securities are included
        in
        such registration statement furnish to the Payor such information regarding
        the
        distribution of such Registrable Securities and such Rightsholder as the
        Payor
        may from time to time reasonably request in writing; 

      

      (2) Each
        Rightsholder agrees by its acquisition of such Registrable Securities that,
        upon
        receipt of any notice from the Payor of the happening of any Discontinuation
        Event, shall forthwith discontinue disposition of Registrable Securities
        pursuant to the registration statement covering such Registrable Securities
        until such Rightsholder’s receipt of the copies of the supplemented prospectus
        and/or amended registration statement or until it is advised in writing by
        the
        Payor that the use of the applicable prospectus may be resumed, and, in either
        case, has received copies of any additional or supplemental filings that
        are
        incorporated or deemed to be incorporated by reference in such prospectus
        or
        registration statement; and

       

      
        
          
          

        

        
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      (3) It
        shall
        be a condition precedent to the Payor's obligation to take any action pursuant
        to this Section 5 in respect of the Registrable Securities that are to be
        registered at the request of any Rightsholder that such Rightsholder shall
        furnish to the Payor such information regarding the securities held by such
        Rightsholder, the intended method of disposition thereof and any other
        information as the Payor shall reasonably request and as shall be required
        in
        connection with the action taken by the Payor. No Rightsholder may participate
        in any underwritten registration hereunder unless such Rightsholder (i) agrees
        to sell such holder’s securities on the basis provided in any underwriting
        arrangements approved by the persons entitled hereunder to approve such
        arrangements and to comply with Regulation M under the Securities Exchange
        Act
        of 1934, as amended and (ii) completes and executes all questionnaires,
        appropriate and limited powers of attorney, escrow agreements, indemnities,
        underwriting agreements and other documents reasonably required under the
        terms
        of such underwriting arrangement.

      

      5.4. Registration
        Expenses.
        All
        expenses incident to the performance of or compliance with this Note by the
        Payor, including, without imitation, all registration and filing fees of
        the
        Commission, NASD, Inc. and other agencies, fees and expenses of compliance
        with
        securities or blue sky laws (including reasonable fees and disbursements
        of
        counsel in connection with blue sky qualifications of the Registrable
        Securities), rating agency fees, printing expenses, messenger and delivery
        expenses, internal expenses (including, without limitation, all salaries
        and
        expenses of its officers and employees performing legal or accounting duties),
        the fees and expenses incurred in connection with the listing, if any, of
        the
        Registrable Securities on any securities exchange and fees and disbursements
        of
        counsel for the Payor and the Payor’s independent certified public accountants
        (including the expenses of any special audit or "comfort" letters required
        by or
        incidental to such performance), Act or other liability insurance (if the
        Payor
        elects to obtain such insurance), the fees and expenses of any special experts
        retained by the Payor in connection with such registration and the fees and
        expenses of any other person retained by the Payor (but not including any
        underwriting discounts or commissions attributable to the sale of Registrable
        Securities or other out-of-pocket expenses of the Rightsholders, or the agents
        who act on their behalf, unless reimbursement is specifically approved by
        the
        Payor) will be borne by the Payor. All such expenses are herein referred
        to as
        "Registration
        Expenses".

       

      5.5. Indemnification;
        Contribution.

       

      (a) Indemnification
        by the Payor.
        The Payor agrees to indemnify and hold harmless, to the full extent permitted
        by
        law, each Rightsholder, its officers and directors and each person who controls
        such Rightsholder (within the meaning of the Act), if any, and any agent
        thereof
        against all losses, claims, damages, liabilities and expenses incurred by
        such
        party pursuant to any actual or threatened suit, action, proceeding or
        investigation (including reasonable attorney’s fees and expenses) arising out of
        or based upon any untrue or alleged untrue statement of a material fact
        contained in any registration statement, prospectus or preliminary prospectus
        or
        any omission or alleged omission to state therein a material fact required
        to be
        stated therein or necessary to make the statements therein (in the case of
        a
        prospectus, in the light of the circumstances under which they were made)
        not
        misleading, except insofar as the same arise out of or are based upon, any
        such
        untrue statement or omission based upon information with respect to such
        Rightsholder furnished in writing to the Payor by such Rightsholder expressly
        for use therein.

       

      
        
          
          

        

        
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      (b) Indemnification
        by Rightsholder.
        In
        connection with any registration statement in which a Rightsholder is
        participating, each such Rightsholder will be required to furnish to the
        Payor
        in writing such information with respect to such Rightsholder as the Payor
        reasonably requests for use in connection with any such registration statement
        or prospectus, and each Rightsholder agrees to the extent it is such a holder
        of
        Registrable Securities included in such registration statement, and each
        other
        such holder of Registrable Securities included in such Registration Statement
        hereby agrees, to indemnify, to the full extent permitted by law, the Payor,
        the
        directors and officers of the Payor and each person who controls the Payor
        (within the meaning of the Act) and any agent thereof, against any losses,
        claims, damages, liabilities and expenses (including reasonable attorney’s fees
        and expenses) incurred by such party pursuant to any actual or threatened
        suit,
        action, proceeding or investigation arising out of or based upon any untrue
        or
        alleged untrue statement of a material fact or any omission or alleged omission
        of a material fact necessary, to make the statements therein (in the case
        of a
        prospectus, in the light of the circumstances under which they are made)
        not
        misleading, to the extent, but only to the extent, that such untrue statement
        or
        omission is based upon information relating to such Rightsholder or other
        holder
        furnished in writing to the Payor expressly for use therein.

       

      (c) Conduct
        of Indemnification Proceedings.
        Promptly
        after receipt by an indemnified party under this Section 5.5 of written notice
        of the commencement of any action, proceeding, suit or investigation or threat
        thereof made in writing for which such indemnified party may claim
        indemnification or contribution pursuant to this Note, such indemnified party
        shall notify in writing the indemnifying party of such commencement or threat;
        but the omission so to notify the indemnifying party shall not relieve the
        indemnifying party from any liability which the indemnifying party may have
        to
        any indemnified party (A) hereunder, unless the indemnifying party is
        actually prejudiced thereby, or (B) otherwise than under this Section 5.5.
        In
        case any such action, suit or proceeding shall be brought against any
        indemnified party, and the indemnified party shall notify the indemnifying
        party
        of the commencement thereof, the indemnifying party shall be entitled to
        participate therein and the indemnifying party shall assume the defense thereof,
        with counsel reasonably satisfactory to the indemnified party, and the
        obligation to pay all expenses relating thereto. The indemnified party shall
        have the right to employ separate counsel in any such action, suit or proceeding
        and to participate in the defense thereof, but the fees and expenses of such
        counsel shall be at the expense of such indemnified party unless (A) the
        indemnifying party has agreed to pay such fees and expenses, (B) the
        indemnifying party shall have failed to assume the defense of such action,
        suit
        or proceeding or to employ counsel reasonably satisfactory to the indemnified
        party therein or to pay all expenses relating thereto or (C) the named parties
        to any such action or proceeding (including any impleaded parties) include
        both
        the indemnified party and the indemnifying party and the indemnified party
        shall
        have been advised by counsel that there may be one or more legal defenses
        available to the indemnified party which are different from or additional
        to
        those available to the indemnifying party and which may result in a conflict
        between the indemnifying party and such indemnified party (in which case,
        if the
        indemnified party notifies the indemnifying party in writing that the
        indemnified party elects to employ separate counsel at the expense of the
        indemnifying party, the indemnifying party shall not have the right to assume
        the defense of such action or proceeding on behalf of the indemnified party;
        it
        being understood, however, that the indemnifying party shall not, in connection
        with any one such action, suit or proceeding or separate but substantially
        similar or related actions, suits or proceedings in the same jurisdiction
        arising out of the same general allegations or circumstances, be liable for
        the
        fees and expenses of more than one separate firm of attorneys at any time
        for
        the indemnified party, which firm shall be designated in writing by the
        indemnified party).

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      (d) Contribution.
        If the
        indemnification provided for in this Section 5.5 from the indemnifying party
        is
        unavailable to an indemnified party hereunder in respect of any losses, claims,
        damages, liabilities or expenses referred to therein, then the indemnifying
        party, in lieu of indemnifying such indemnified party, shall contribute to
        the
        amount paid or payable by such indemnified party as a result of such losses,
        claims, damages, liabilities or expenses (A) in such proportion as is
        appropriate to reflect the relative benefits received by the indemnifying
        party
        on the one hand and the indemnified party on the other or (B) if the
        allocation provided by clause (A) above is not permitted by applicable law,
        in
        such proportion as is appropriate to reflect not only the relative benefits
        received by the indemnifying party on the one hand and the indemnified party
        on
        the other but also the relative fault of the indemnifying party and indemnified
        party, as well as any other relevant equitable considerations. The relative
        fault of such indemnifying party and the indemnified parties shall be determined
        by reference to, among other things, whether any action in question, including
        any untrue or alleged untrue statement of a material fact or omission or
        alleged
        omission to state a material fact, has been made by, or relates to information
        supplied by, such indemnifying party or indemnified parties, and the parties’
relative intent, knowledge, access to information and opportunity to correct
        or
        prevent such action. The amount paid or payable by a party as a result of
        the
        losses, claims, damages, liabilities and expenses referred to above shall
        be
        deemed to include, subject to the limitation set forth in Section 5.5, any
        legal
        or other fees or expenses reasonably incurred by such party in connection
        with
        any investigation or proceeding.

       

      The
        parties hereto agree that it would not be just and equitable if contribution
        pursuant to this Section 5.5(d) were determined by pro rata allocation or
        by any
        other method of allocation which does not take into account the equitable
        considerations referred to in clauses (A) and (B) of the immediately
        preceding paragraph. No person guilty of fraudulent misrepresentation (within
        the meaning of Section 11(f) of the Act) shall be entitled to contribution
        from
        any person who was not guilty of such fraudulent misrepresentation.

      

      (e) Limitation.
        Notwithstanding anything to the contrary contained in this Section 5.5, no
        holder of Registrable Securities shall be liable for indemnification and
        contribution payments aggregating an amount in excess of the maximum amount
        received by such holder in connection with any sale of Registrable Securities
        as
        contemplated herein.

       

      6. Covenants
        of Payor.
        

       

      Payor
        covenants and agrees that, so long as this Note remains outstanding and unpaid,
        in whole or in part: 

       

      6.1. Payor
        will not sell, transfer or dispose of a material part of its assets;

       

      6.2. Payor
        will promptly pay and discharge all lawful taxes, assessments and governmental
        charges or levies imposed upon it, its income and profits, or any of its
        property, before the same shall become in default, as well as all lawful
        claims
        for labor, materials and supplies which, if unpaid, might become a lien or
        charge upon such properties or any part thereof; provided,
        however,
        that
        Payor or such subsidiary shall not be required to pay and discharge any such
        tax, assessment, charge, levy or claim so long as the validity thereof shall
        be
        contested in good faith by appropriate proceedings and Payor or such subsidiary,
        as the case may be, shall set aside on its books adequate reserves with respect
        to any such tax, assessment, charge, levy or claim so contested;

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      6.3. Payor
        will do or cause to be done all things necessary to preserve and keep in
        full
        force and effect its corporate existence, rights and franchises and
        substantially comply with all laws applicable to Payor as its counsel may
        advise;

       

      6.4. Payor
        will at all times maintain, preserve, protect and keep its property used
        or
        useful in the conduct of its business in good repair, working order and
        condition (except for the effects of reasonable wear and tear in the ordinary
        course of business) and will, from time to time, make all necessary and proper
        repairs, renewals, replacements, betterments and improvements
        thereto;

       

      6.5. Payor
        will, promptly following the occurrence of an Event of Default (defined below)
        or of any condition or event which, with the giving of notice or the lapse
        of
        time or both, would constitute an Event of Default, furnish a statement of
        Payor's Chief Executive Officer or Chief Financial Officer to Payee setting
        forth the details of such Event of Default or condition or event and the
        action
        which Payor intends to take with respect thereto;

       

      6.6. Payor
        will, and will cause each of its subsidiaries to, at all times maintain books
        of
        account in which all of its financial transactions are duly recorded in
        conformance with generally accepted accounting principles; and

       

      6.7. On
        or
        after March 31, 2008, in the event of:
        

       

      (a) any
        taking by Payor of a record of any of the holders of any class of securities
        for
        any purpose, including, but not limited to, determining the holders who are
        entitled to receive any dividend or other distribution, or any right to
        subscribe for, purchase or otherwise acquire any shares of stock of any class
        or
        any other securities or property, or to receive an other right; or

      

      (b) any
        special or annual meeting of holders of the Payor’s Common Stock or any action
        by holders of the Common Stock of Payor in lieu of such a meeting;
        or

      

      (c)
         any
        capital reorganization of Payor, any reclassification of recapitalization
        of the
        capital stock of Payor or any transfer of all or substantially all of the
        assets
        of Payor to or consolidation or merger of Payor with or into any other person;
        or

      

      (d) any
        proposed issuance or grant by Payor to the existing holders of Common Stock
        of
        any securities (including but not limited to convertible securities), or
        any
        right or option to subscribe for any securities; 

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      Payor
        will mail or cause to be mailed to the holder of record of this Note a notice
        specifying (i) the date on which any such record is or was to be taken and
        the purpose therefore, (ii) the date and purpose of any shareholders meeting
        or
        proposed shareholders action without meeting, (iii) the date on which any
        such
        sale, reorganization, reclassification, recapitalization, transfer,
        consolidation, merger, dissolution, liquidation or winding-up is to be
        consummated, and the time, if any, to be fixed, as of which the holders of
        record of Common Stock are to surrender or exchange such shares of Common
        Stock
        for securities or other property deliverable on such reorganization,
        reclassification, recapitalization, transfer, consolidation, merger,
        dissolution, liquidation or winding-up and (iv) the amount and character
        of any
        securities, or rights or options with respect thereto, proposed to be issued
        or
        granted, the date of such proposed issuance or grant and the persons or class
        of
        persons to whom such proposed issue or grant is to be offered or made. Such
        notice shall be mailed at least fifteen (15) days prior to the record date,
        shareholders meeting (or shareholders action without meeting) or other event
        specified in this Section 6.7.

      

      7. Events
        of Default.
        

       

      7.1. The
        term
        "Event
        of Default"
        shall
        mean the occurrence of any of the following: 

       

      (a) The
        dissolution of Payor or any vote in favor thereof by the board of directors
        and
        shareholders of Payor; or

      

      (b) Payor
        makes an assignment for the benefit of creditors, or files with a court of
        competent jurisdiction an application for appointment of a receiver or similar
        official with respect to it or any substantial part of its assets, or Payor
        files a petition seeking relief under any provision of the Federal Bankruptcy
        Code or any other federal or state statute now or hereafter in effect affording
        relief to debtors, or any such application or petition is filed against Payor,
        which application or petition is not dismissed or withdrawn within sixty
        (60)
        days from the date of its filing; or

      

      (c) Payor
        fails to pay the principal amount, or interest on, or any other amount payable
        under, this Note as and when the same becomes due and payable; and such default
        is not cured within thirty (30) days of such default or

      

      (d) Payor
        admits in writing its inability to pay its debts as they mature; or

      

      (e) Payor
        sells all or substantially all of its assets or merges or is consolidated
        with
        or into another corporation; or

      

      (f) A
        proceeding is commenced to foreclose a security interest or lien in any property
        or assets of Payor as a result of a default in the payment or performance
        of any
        debt in excess of $5,000,000 and secured by such property or assets of Payor
        or
        of any subsidiary of Payor; or

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      (g) Payor
        defaults in the due observance or performance of any covenant, condition
        or
        agreement and/or commits a material breach of the representations or warranties
        in this Note, (other than the default specified in Section 7.1(c) above)
        and
        such default continues uncured for a period of sixty (60) days.

      

      7.2. Remedies.
        Upon
        the occurrence of an Event of Default, and at any time thereafter, the holder
        of
        this Note shall have the right (at such holder's option) to declare the
        principal of, accrued unpaid interest on, and all other amounts payable under
        this Note to be forthwith due and payable, whereupon all such amounts shall
        be
        immediately due and payable to the holder of this Note, without presentment,
        demand, protest or other notice of any kind, all of which are hereby expressly
        waived. Forbearance by the holder of this Note to exercise its rights with
        respect to any failure or breach of Payor shall not constitute a waiver of
        the
        right as to any subsequent failure or breach

       

      8. Unconditional
        Obligation.
        The
        obligations to make the payments provided for in this Note are absolute and
        unconditional and not subject to any defense, set-off, counterclaim, rescission,
        recoupment or adjustment whatsoever.

       

      9. Replacement
        Of Note.
        On
        receipt of evidence reasonably satisfactory to the Payor of the loss, theft,
        destruction or mutilation of this Note, and, in each case of loss, theft
        or
        destruction, delivery of an indemnity agreement reasonably satisfactory in
        form
        and substance to the Payor or, in the case of mutilation, on surrender and
        cancellation of this Note, the Payor at its expense shall execute and deliver,
        in lieu of this Note, a new note of like tenor.

       

      10. Subordination.
        All
        payments due under this Note shall be subordinated and made junior, in all
        respects to the payment in full of all principal, all interest accrued thereon
        and all other outstanding amounts under Institutional Indebtedness (hereinafter
        defined), except Institutional Indebtedness, which, by its terms, is not
        expressly senior in right of payment to this Note. The term "Institutional
        Indebtedness"
        shall
        mean all existing and future senior indebtedness incurred (a) by the Payor
        to
        banks, insurance companies, lease financing institutions, or other lending
        institutions (other than small business investment companies or venture capital
        firms) regularly engaged in the business of lending money; and (b) any
        amendment, renewal, extension or refunding of any such debt. Each holder,
        by
        accepting a Note, agrees to the subordination of this Note to such Institutional
        Indebtedness and authorizes Payor to give it effect.

       

      11. Miscellaneous.

       

      11.1. The
        headings of the various paragraphs of this Note are for convenience of reference
        only and shall in no way modify any of the terms or provisions of this
        Note.

       

      11.2. This
        Note
        may not be modified or discharged (other than by payment) except by a writing
        duly executed by Payor and Payee.

       

      11.3. All
        notices required or permitted to be given hereunder shall be in writing and
        shall be deemed to have been duly given when personally delivered or sent
        by
        registered or certified mail (return receipt requested, postage prepaid),
        facsimile transmission or overnight courier to the address of the intended
        recipient as set forth in the preamble to this Note or at such other address
        as
        the intended recipient shall have hereafter given to the other party hereto
        pursuant to the provisions of this Note.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      11.4. This
        Note
        and the obligations of Payor and the rights of Payee shall be governed by
        and
        construed in accordance with the substantive laws of the State of New York
        without giving effect to the choice of laws rules thereof.

       

      11.5. This
        Note
        shall bind Payor and its successors and assigns and shall inure to the benefit
        of the Payee and its successors and assigns.

       

      IN
        WITHNESS WHEREOF, this Note has been executed and delivered on the date
        specified above by the duly authorized representative of the Payor.

      

      
        	 	
                WINSONIC
                  DIGITAL MEDIA GROUP, LTD.

              
	 
	 
	 	
                By:

              	 	 
	 	
                Name:

              	
                Winston
                  Johnson

              	 
	 	
                Title:

              	
                Chief
                  Executive Officer

              	 

      

      

      

      Accepted
        and Agreed to:

       

      

      ________________________________

      

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      Exhibit
        4.12

       

      NOTE
        EXERCISE FORM

      

      

      

      
        	 	 	Dated:
                _______________________

      

       

      TO:
        Winsonic Digital Media Group, Ltd. (the "Company")

      

      I,
        ____________________, hereby irrevocably elect to convert my 6% Convertible
        Subordinated Promissory Note dated ___________________ (the "Promissory Note")
        in the amount of _______________, plus the accrued interest in the amount
        of
        ________________, into ______________ shares of the Company's common stock
        par
        value $0.001 per share (the "Common Stock") pursuant to Section 4 of said
        Promissory Note. 

      

      I
        ACKNOWLEDGE THAT SUCH SHARES OF COMMON STOCK HAVE NOT BEEN REGISTERED UNDER
        THE
        SECURITIES ACT OF 1933, AS AMENDED OR UNDER ANY APPLICABLE STATE SECURITIES
        LAWS
        AND SUCH SHARES OF COMMON STOCK MAY
        NOT
        BE SOLD OR TRANSFERRED IN THE ABSENCE OF REGISTRATION OR AN EXEMPTION THEREFROM
        UNDER SUCH ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS. THE COMPANY,
        IN
        ITS SOLE DISCRETION, SHALL HAVE THE RIGHT TO REQUIRE AN OPINION OF COUNSEL
        REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER
        THE
        ACT IS NOT REQUIRED IN CONNECTION WITH ANY PROPOSED TRANSFER NOR IS SUCH
        TRANSFER IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. 

       

       

      
        	 	Name:	  
	 	 	(Please type or print in block
                letters)
	 	 	 
	 	Tax
                ID/SS #:	  
	 	 	 
	 	Address:	  
	 	 	  
	 	 	  
	 	 	 
	 	Signature:	  
	 	 	
                (Signature
                  must conform in all respects to the
                  name of the Noteholder as set forth on the face of this
                  Note.)

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