Document:

$200,000 September 26, 2006 SECURED CONVERTIBLE NOTE - The Nutmeg Group, L.L.C.

    
      

    

    $200,000
      September 26, 2006 SECURED CONVERTIBLE NOTE

    

    FOR
      VALUE
      RECEIVED, SECURED FINANCIAL NETWORK, INC. (the “Maker” or the “Company”), a
      Nevada corporation, having a place of business at 100
      NE
      3rd Ave., Suite 1500, Ft. Lauderdale, FL 33301,
      hereby
      promises to pay to the order of The Nutmeg Group, L.L.C. (the “Lender”), a US
      Virgin Islands limited liability company, having its principal address at 3346
      Commercial, Northbrook, IL 60062, the sum of $200,000. This Secured Convertible
      Note (this “Note”) is issued to document loans, the proceeds of which are for
      use for general Company operations, $100,000 on September 26, 2006 and $100,000,
      due on October 26, 2006, from Lender to the Maker; provided that transmission
      of
      funds pursuant to the terms herein, shall not occur prior to 2 business days
      of
      the delivery of the Collateral to the Purchaser, and is subject to adherence
      to
      the business plan and milestone events. All capitalized terms used herein but
      not otherwise defined herein shall have the meanings ascribed to them in the
      Share Purchase Agreement.

    

    1.
      Maturity. The amount outstanding under this Note will be due and payable at
      the
      address of Lender or such other place as Lender may designate on September
      26,
      2007 (the “Maturity Date”). No advances shall be made by Lender after the
      Maturity Date.

     

    2.
      Payments of Interest.. Interest on the borrowed outstanding principal balance
      under this Note shall be payable monthly, commencing on the first banking day
      of
      November 2006, and on the first business day of each month thereafter until
      the
      Debenture is no longer outstanding. Each monthly payment shall consist of all
      accrued but unpaid interest in the arrears. 

    

    3.
      Interest Rate. The outstanding principal balance of this Note shall bear
      interest at a rate per annum equal to 10.0% per annum, amortized monthly in
      arrears interest calculated on a 365-day basis 

    

    4.
      Alternative Method of Payment / Optional Prepayment

    

    A.
      Alternate Methods of Payment: Subject to the conditions set forth below and
      customary equity conditions (including an effective registration statement),
      the
      Company may elect to make such payments of principal and interest under the
      Debenture, in freely tradable shares of the Company’s common stock. Each share
      of the of the Company’s Common stock will be valued at the Conversion Price (as
      defined in Section 5 below), as determined at the lesser of (1) on the day
      the
      Company gives notice, or (2) on the day the Company delivers the shares. The
      Company is required to notify Lender of its election to make such payment in
      shares at least ten days prior to the payment date. Notwithstanding anything
      herein to the contrary, the Company’s right to make such payment in shares in
      lieu of cash can only be made if the volume weighted average price of the
      Company’s common stock has been trading at a price of $0.25 or above per share
      for 10 consecutive days prior to the date of the payment date and the average
      daily trading volume is at least 15 times the number of shares to be so issued
      hereby as payment. 

    

    B.
      Pre-Payment Option: At any time, 90 days after funding is complete, but subject
      to customary equity conditions, the Company may at any time, upon 30 days
      written notice, prepay all of the outstanding Notes on a pro-rata basis at
      110%
      of the outstanding principal balance only after the note has amortized 1 year.
      In the event that Maker sends a Prepayment Notice to Lender, Lender may elect
      prior to the Prepayment Date to convert into common stock of SECURED FINANCIAL
      NETWORK, INC. (“SECURED FINANCIAL NETWORK, INC.” Common Stock”) pursuant to
      Section 5 hereof, all or part of the amount of principal to be repaid by the
      proposed Prepayment instead of receiving such prepayment. 

    
      
        
        

      

      
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    5.
      Optional/Mandatory Conversion. At any time, 90 days after funding is complete,
      but prior to repayment of all amounts due as provided under the Note, all or
      any
      portion of the principal amount of the Note shall be convertible at the option
      of the Lender into fully paid and non-assessable shares of SECURED FINANCIAL
      NETWORK, INC. Common Stock. The number of shares of SECURED FINANCIAL NETWORK,
      INC. Common Stock that Lender shall be entitled to receive upon conversion
      shall
      be equal to the number attained by dividing the principal, including accrued
      interest pursuant to the Note being converted by the Conversion Price. The
      “Conversion Price” shall be the lesser of $.10 per share, or one of the
      following times 60%:

    

    a) the
      closing bid price for Common Stock on the trading day one day prior to a
      Purchaser Notice of Conversion, or 

    b) the
      average closing bid price for Common Stock on the five trading days immediately
      prior to a Purchaser Notice of Conversion, or

    if
      registration statement is not effective on the 180 day anniversary of Closing
      (“c” and “d” not otherwise applying),

    c) the
      closing bid price for Common Stock on the 180 day anniversary of Closing,
      or

    d) the
      average closing bid price for Common Stock on the five trading days immediately
      prior to the 180 day anniversary of Closing.

    

    A.
      In
      order to exercise the conversion privilege, Lender shall give written notice
      of
      conversion to Maker stating Lender’s election to convert this Note or the
      portion thereof in whole or in part, as specified in said notice. As promptly
      as
      practicable after receipt of the notice, Maker shall issue and shall deliver
      to
      Lender a certificate or certificates for the number of full shares of SECURED
      FINANCIAL NETWORK, INC. Common Stock issuable upon the conversion of this Note
      or portion thereof registered in the name of Lender in accordance with the
      provisions of this Section 5.

     

    B.
      Each
      conversion shall be deemed to have been effected on the date the conversion
      notice shall have been received by Maker, as aforesaid, and Lender shall be
      deemed to have become on said date the holder of record of the shares of Common
      Stock issuable upon such conversion. No fractional shares of Common Stock shall
      be issued upon conversion of this Note. Any amounts so converted shall not
      be
      reborrowed. 

     

    C.
      The
      Lender shall not be entitled to convert, if such conversion would result in
      beneficial ownership by the Lender and its affiliates of more than 9.99% of
      the
      outstanding shares of common stock of the Company on such exercise or conversion
      date, including: 

    

    (i)
      the
      number of shares of common stock beneficially owned by the Lender and its
      affiliates, and 

    (ii)
      the
      number of shares of common stock issuable upon the exercise of the warrant
      and/or options and/or conversion. 

    

    For
      the
      purposes of this provision as set forth in the immediately preceding sentence,
      beneficial ownership shall be determined in accordance with Section 13(d) of
      the
      Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
      Subject to the foregoing, the Lender shall not be limited to aggregate warrant
      and/or option exercises and/or conversion of only 9.99% and aggregate warrant
      and/or option exercises and/or conversion by the Lender may exceed 9.99%. The
      Lender may void the exercise limitation described in this Section upon 61 days
      prior written notice to the Company. The Lender may
      allocate which of the equity of the Company deemed beneficially owned by the
      Lender shall be included in the 9.99% amount described above and which shall
      be
      allocated to the excess above 9.99%. 

    
      
        
        

      

      
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    6.
      Security. As security for the repayment of all liabilities arising under this
      Note, the Maker hereby grants to Lender a security interest in and a lien on
      all
      of the Collateral (as that term is defined in the Pledge and Security
      Agreement). The Lender shall have all rights provided to a secured party under
      the Pledge and Security Agreement and under the Uniform Commercial Code of
      the
      State of Illinois. The Lender has the
      right
      to sell or hypothecate such Collateral, to the extent permitted under applicable
      securities laws.
      However, the Lender shall not sell more than 10% of the average daily volume
      in
      any week. Purchaser may not convert for a 90-day period from Closing. The Maker
      shall execute and deliver such documentation as Lender may reasonably request
      to
      evidence and perfect Lender’s security interest granted in this Section
      6.

    

    7.
      Use of
      Proceeds. The proceeds will be used principally for the VPS acquisition, BPS
      to
      bank Interface, Video text interface, Cell phone interface, Working Capital,
      $70,000 to defray current liabilities,
      and
for
      general working capital purposes, but none of the investment proceeds will
      be
      used to repay obligations to any insider.

     

    8.
      Covenants. Maker covenants and agrees that, so long as any indebtedness is
      outstanding hereunder, it will comply with each of the following covenants
      (except in any case where Lender has specifically consented otherwise in
      writing):

     

    A.
      Financial Reporting. Maker shall furnish to Lender a copy of each financial
      report submitted on Form 10-K or 10-Q filed with the Securities and Exchange
      Commission within seven (7) days of such filing.

     

    B.
      Notice
      of Event of Default. Maker shall furnish to Lender notice of the occurrence
      of
      any Event of Default (as defined herein) within five (5) days after it becomes
      known to an executive officer of Maker. 

     

    C.
      Financial Statements. Maker shall furnish to Lender quarterly financial
      statements, including balance sheets and statements of income, for the Company,
      which statements shall be annually audited, as soon as practicable after they
      are prepared for internal use.

     

    D.
      Maker
      shall retain Brass Bulls Corp, 2855 N. University Drive #320, Coral Springs,
      FL
      33065,
      as the
      Company’s consultant/IR/PR, for one year. Brass
      Bulls would also orchestrate press releases, communicate with investors,
      etc.

    

    E.
      Maker
      shall generate a steady flow of accurate and newsworthy events, reasonably
      coordinated with Brass Bulls, Corp.

    

    F.
      Acknowledgement of Investment Objectives. Maker acknowledges that two of the
      major reasons prompting Lender’s advance are the following:

    

    
      	 	
              1.

            	
              Maker’s
                ability to accommodate Dr. Richard Goulding’s ability to complete the
                contemplated transaction with Party Poker.com (for which the Lender
                will
                receive 5% of the incomer derived therefrom),

            

    

    
      
        
        

      

      
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              2.

            	
              Maker’s
                ability, through the medical records company to provide contacts
                for
                Physicians Healthcare Management Group,
                Inc.

            

    

    

    Consequently,
      the Lender intends to avail itself of these contacts and facilities. The Maker
      shall work diligently with the Lender and Lender’s associates and portfolio
      companies, as reasonably requested by Lender, from time to time, in all
      synergistically related projects.

    

    G.
      Favored Nations Clause. The
      Company
      will not raise more than $200,000
      for
      up to
      ninety (90) days after the Closing
      without
      written consent of the
      Purchaser.
      If the
      Company raises money at a lower price than the
      Purchaser
      has
      purchased the shares, then the Company will re-price the
      Purchaser’s
      shares
      and warrants to that price. The
      Purchaser
      has the
      right of first refusal of any financing for eighteen (18) months after the
      Closing.
      The
      Purchaser
      will be
      notified prior to any other financing and have an option to respond with
      competitive financing terms upon notification. The
      Company
will
      not
      raise any capital below 10 cents per share. Notwithstanding anything herein
      to
      the contrary, the
      Company
will
      be
      allowed to raise additional capital to complete its $1.5 million contemplated
      fund-raising.

    

    9.
      Event
      of Default. For purposes of this Note, the Maker shall be in default hereunder
      (and an “Event of Default” shall have occurred hereunder) if:

     

    A.
      Maker
      shall fail to pay when due any payment of principal, interest, fees, costs,
      expenses or any other sum payable to Lender hereunder or otherwise;

    

    B.
      Maker
      shall default in the performance of any other agreement or covenant contained
      herein (other than as provided in subparagraph A above), and such default shall
      continue uncured for twenty (20) days after notice thereof to Maker given by
      Lender, or if an Event of Default shall occur under any other Loan
      Document;

     

    C.
      Maker
      becomes insolvent, bankrupt or generally fails to pay its debts as such debts
      become due; is adjudicated insolvent or bankrupt; admits in writing its
      inability to pay its debts; or shall suffer a custodian, receiver or trustee
      for
      it or substantially all of its property to be appointed and if appointed without
      its consent, not be discharged within thirty (30) days; makes an assignment
      for
      the benefit of creditors; or suffers proceedings under any law related to
      bankruptcy, insolvency, liquidation or the reorganization, readjustment or
      the
      release of debtors to be instituted against it and if contested by it not
      dismissed or stayed within ten (10) days; if proceedings under any law related
      to bankruptcy, insolvency, liquidation, or the reorganization, readjustment
      or
      the release of debtors is instituted or commenced by Maker; if any order for
      relief is entered relating to any of the foregoing proceedings; if Maker shall
      call a meeting of its creditors with a view to arranging a composition or
      adjustment of its debts; or if Maker shall by any act or failure to act indicate
      its consent to, approval of or acquiescence in any of the
      foregoing.

    

    10.
      Consequences of Default. Upon the occurrence of an Event of Default and at
      any
      time thereafter, the entire unpaid principal balance of this Note, together
      with
      interest accrued thereon and with all other sums due or owed by Maker hereunder,
      shall become immediately due and payable. In addition, the principal balance
      and
      all past-due interest shall thereafter bear interest at the rate of 18% per
      annum until paid.

     

    
      
        
        

      

      
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    11.
      Registration

     

    11.1. Registration
      Rights.
      The
      Maker hereby grants the following registration rights to Lender.

     

    (i) The
      Maker
      shall prepare and file with the Commission a registration statement under the
      1933 Act registering the Registrable Securities, as defined in Section 11.1(iii)
      hereof, which are the subject the
      September 26, 2006 Pledge and Security Agreement,
      and
this
      Note
      for
      unrestricted public resale by the Lender thereof. 

     

    (ii) If
      the
      Maker at any time proposes to register any of its securities under the 1933
      Act
      for sale to the public, whether for its own account or for the account of other
      security holders or both, except with respect to registration statements on
      Forms S-4, S-8 or another form not available for registering the Registrable
      Securities for sale to the public, provided the Registrable Securities are
      not
      otherwise registered for resale by the Subscribers or Holder pursuant to an
      effective registration statement, each such time it will give at least fifteen
      (15) days’ prior written notice to the record holder of the Registrable
      Securities of its intention so to do. Upon the written request of the Lender,
      received by the Maker within ten (10) days after the giving of any such notice
      by the Maker, to register any of the Registrable Securities not previously
      registered, the Maker will cause such Registrable Securities as to which
      registration shall have been so requested to be included with the securities
      to
      be covered by the registration statement proposed to be filed by the Maker,
      all
      to the extent required to permit the sale or other disposition of the
      Registrable Securities so registered by the holders of such Registrable
      Securities (the “Seller”
or
      “Sellers”).
      In
      the event that any registration pursuant to this Section 11.1(ii) shall be,
      in
      whole or in part, an underwritten public offering of common stock of the Maker,
      the number of shares of Registrable Securities to be included in such an
      underwriting may be reduced by the managing underwriter if and to the extent
      that the Maker and the underwriter shall reasonably be of the opinion that
      such
      inclusion would adversely affect the marketing of the securities to be sold
      by
      the Maker therein; provided, however, that the Maker shall notify the Seller
      in
      writing of any such reduction. Notwithstanding the foregoing provisions, or
      Section 11.4 hereof, the Maker may withdraw or delay or suffer a delay of any
      registration statement referred to in this Section 11.1(ii) without thereby
      incurring any liability to the Seller.

     

    (iii) The
      Maker
      shall file with the Commission a Form SB-2 registration statement (the
“Registration
      Statement”)
      (or
      such other form that it is eligible to use) in order to register the Registrable
      Securities for resale and distribution under the 1933 Act within sixty- (60)
      calendar days after the Closing Date (the
      “Filing
      Date”),
      and
      use its best efforts to cause to be declared effective not
      later
      than one
      hundred and twenty (120) calendar
      days after the Closing Date (the
      “Effective
      Date”).
      The
      Maker will register not less than a number of shares of common stock in the
      aforedescribed registration statement that is equal to 175%
      of
      the Shares issuable upon conversion of all of the “Pledged
      Property” or “Collateral” as defined in the September 26, 2006 Pledge and
      Security Agreement,
      and
      100% of the Warrant Shares issuable upon exercise of the Warrants (collectively
      the “Registrable
      Securities”).
      The
      Registrable Securities shall be reserved and set aside exclusively for the
      benefit of the Lender, and not issued, employed or reserved for anyone other
      than the Lender. The Registration Statement will immediately be amended or
      additional registration statements will be immediately filed by the Maker as
      necessary to register additional shares of Common Stock to allow the public
      resale of all Common Stock included in and issuable by virtue of the Registrable
      Securities. Except with the written consent of the Lender, or as described
      on
      Schedule 11.1 hereto, no securities of the Maker other than the Registrable
      Securities will be included in the Registration Statement. It shall be deemed
      a
      Non-Registration Event [as defined in Section 11.4] if, at any time after the
      date
      the
      Registration Statement is declared effective by the Commission (“Actual
      Effective Date”),
      the
      Maker has registered for unrestricted resale on behalf of the Sellers fewer
      than
125%
      of
      the amount of Common Shares issuable upon full conversion of all sums due
      hereunder and 100% of the Warrant Shares issuable upon exercise of the
      Warrants.

    
      
        
        

      

      
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    11.2. Registration
      Procedures.
      If and
      whenever the Maker is required by the provisions of Section 11.1(i), 11.1(ii),
      or (iii) to effect the registration of any Registrable Securities under the
      1933
      Act, the Maker will, as expeditiously as possible: 

     

    (a) subject
      to the timelines provided in this Agreement, prepare and file with the
      Commission a registration statement required by Section 11, with respect to
      such
      securities and use its commercially reasonable best efforts to cause such
      registration statement to become and remain effective for the period of the
      distribution contemplated thereby (determined as herein provided); promptly
      provide to the Lenders of the Registrable Securities copies of all filings
      and
      Commission letters of comment; notify Lender (by telecopier and/or by e-mail
      addresses provided by Lender) and Law
      Offices of Randall S. Goulding
      (by
      telecopier and/or by email to mbalson@gouldinglaw.com)
      on or
      before 6:00 PM EST on the first business day after the day that the Maker
      receives notice that the Commission has no comments or no further comments
      on
      the Registration Statement; and notify the Lender and their counsel in the
      same
      manner not later than the first Business Day after the Business Day a
      Registration Statement has been declared effective (or sooner than the first
      Business Day upon disclosure of this information to any person who is not an
      officer or director or legal counsel of the Maker). Failure to timely provide
      notice as required by this Section 11.2(a) shall be a material breach of the
      Maker’s obligation and an Event of Default as defined herein and a
      Non-Registration Event as defined in Section 11.4 of this Agreement;

     

    (b) prepare
      and file with the Commission such amendments and supplements to such
      registration statement and the prospectus used in connection therewith as may
      be
      necessary to keep such registration statement effective until such registration
      statement has been effective for a period of two (2) years, and comply with
      the
      provisions of the 1933 Act with respect to the disposition of all of the
      Registrable Securities covered by such registration statement in accordance
      with
      the Sellers’ intended method of disposition set forth in such registration
      statement for such period; 

     

    (c) furnish
      to the Sellers, at the Maker’s expense, such number of copies of the
      registration statement and the prospectus included therein (including each
      preliminary prospectus) as such persons reasonably may request in order to
      facilitate the public sale or their disposition of the securities covered by
      such registration statement or make them electronically available; 

     

    (d) use
      its
commercially
      reasonable efforts to register or qualify the Registrable Securities covered
      by
      such registration statement under the securities or “blue sky” laws of New York
      and such jurisdictions as the Sellers shall request in writing; provided,
      however, that the Maker shall not for any such purpose be required to qualify
      generally to transact business as a foreign entity in any jurisdiction where
      it
      is not so qualified or to consent to general service of process in any such
      jurisdiction; 

     

    (e) if
      applicable, list the Registrable Securities covered by such registration
      statement with any securities exchange on which the Common Stock of the Maker
      is
      then listed; 

    
      
        
        

      

      
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    (f) notify
      the Lender within two hours of the Maker’s becoming aware that a prospectus
      relating thereto is required to be delivered under the 1933 Act, of the
      happening of any event of which the Maker has knowledge as a result of which
      the
      prospectus contained in such registration statement, as then in effect, includes
      an untrue statement of a material fact or omits to state a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading in light of the circumstances then existing or which becomes subject
      to a Commission, state or other governmental order suspending the effectiveness
      of the registration statement covering any of the Shares; and

     

    (g) provided
      same would not be in violation of the provision of Regulation FD under the
      1934
      Act, make available for inspection by the Sellers, and any attorney, accountant
      or other agent retained by the Seller or underwriter, all publicly available,
      non-confidential financial and other records, pertinent corporate documents
      and
      properties of the Maker, and cause the Maker’s officers, directors and employees
      to supply all publicly available, non-confidential information reasonably
      requested by the seller, attorney, accountant or agent in connection with such
      registration statement. 

     

    11.3. Provision
      of Documents.
      In
      connection with each registration described in this Section 11, each Seller
      will
      furnish to the Maker in writing such information and representation letters
      with
      respect to itself and the proposed distribution by it as reasonably shall be
      necessary in order to assure compliance with federal and applicable state
      securities laws, including, but not limited to, a written confirmation that
      the
      Seller may be deemed to be an “underwriter” under the federal securities laws
      for purposes of such Seller’s resale and distribution of such Seller’s
      Registrable Securities. 

     

    11.4. Non-Registration
      Events.
      The
      Maker and the Lender agree that the Sellers will suffer damages if the
      Registration Statement is not filed by the Filing Date and not declared
      effective by the Commission by the Effective Date, and any registration
      statement required under Section 11.1(i) or 11.1(ii) is not filed within 45
      days
      after Closing and declared effective by the Commission within 90 days after
      Closing, and maintained in the manner and within the time periods contemplated
      by Section 11 hereof, and it would not be feasible to ascertain the extent
      of
      such damages with precision. Accordingly, if (A) the Registration Statement
      is
      not filed on or before the Filing Date, (B) is not declared effective on or
      before the Effective Date, (C) due to the action or inaction of the Maker,
      the
      Registration Statement is not declared effective within 3 business days after
      receipt by the Maker or its attorneys of a written or oral communication from
      the Commission that the Registration Statement will not be reviewed or that
      the
      Commission has no further comments, (D) if the registration statement described
      in Sections 11.1(i) or 11.1(ii) is not filed within 60 days after written
      request of the Lender, or is not declared effective within 120 days after such
      written request, or (E) any registration statement described in Sections
      11.1(i), 11.1(ii) or 11.1(iii) is filed and declared effective but shall
      thereafter cease to be effective without being succeeded within 15 business
      days
      by an effective replacement or amended registration statement or for a period
      of
      time which shall exceed 30 days in the aggregate per year (defined as a period
      of 365 days commencing on the Actual Effective Date (each such event referred
      to
      in clauses (A) through (E) of this Section 11.4 is referred to herein as a
      “Non-Registration
      Event”),
      then
      the Maker shall deliver to the Lender of Registrable Securities, as liquidated
      damages (“Liquidated
      Damages”),
      an
      amount equal to 5% for each 30 days or part thereof of the face amount hereof.
      Liquidated Damages payable in connection with a Non-Registration Event described
      in clause (B) above shall accrue from the 180th
      calendar
      day after the Closing Date. The Maker must pay the Liquidated Damages in cash,
      except that the Lender may elect that such Liquidated Damages to be paid with
      shares of Common Stock with such shares valued at sixty percent (60%) of the
      Conversion Price in effect on each
      thirtieth day or sooner date upon which Liquidated Damages have accrued. The
      Liquidated Damages must be paid within 10 days after the end of each thirty
      (30)
      day period or shorter part thereof for which Liquidated Damages are payable.
      In
      the event a Registration Statement is filed by the Filing Date but is withdrawn
      prior to being declared effective by the Commission, then such Registration
      Statement will be deemed to have not been filed. All
      oral
      or written comments received from the Commission relating to the Registration
      Statement must be adequately responded to within
      30
      days in connection with the initial filing of the Registration Statement and
      within 10 business days in connection with amendments to the Registration
      Statement after receipt of such comments from the Commission.
      Failure
      to
      timely respond to Commission comments is a Non-Registration Event for which
      Liquidated Damages shall accrue and be payable by the Maker to the Lenders
      of
      Registrable Securities at the same rate set forth above. Notwithstanding the
      foregoing, the Maker shall not be liable to the Lender under this Section 11.4
      for any events or delays occurring as a consequence of the acts or omissions
      of
      the Lender contrary to the obligations undertaken by Lender in this Agreement.
      Liquidated Damages will neither accrue nor be payable pursuant to this Section
      11.4 nor will a Non-Registration Event be deemed to have occurred for times
      during which Registrable Securities are transferable by the Lender of
      Registrable Securities pursuant to Rule 144(k) under the 1933 Act.
       

    

    
      
        
        

      

      
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    11.5. Expenses.
      All
      expenses incurred by the Maker in complying with Section 11, including, without
      limitation, all registration and filing fees, printing expenses (if required),
      fees and disbursements of counsel and independent public accountants for the
      Maker, fees and expenses (including reasonable counsel fees) incurred in
      connection with complying with state securities or “blue sky” laws, fees of the
      National Association of Securities Dealers, Inc., transfer taxes, and fees
      of
      transfer agents and registrars, are called “Registration
      Expenses.”
All
      underwriting discounts and selling commissions applicable to the sale of
      Registrable Securities are called “Selling
      Expenses.”
The
      Maker will pay all Registration Expenses in connection with the registration
      statement under Section 11. Selling Expenses in connection with each
      registration statement under Section 11 shall be borne by the Seller and may
      be
      apportioned among the Sellers in proportion to the number of shares sold by
      the
      Seller relative to the number of shares sold under such registration statement
      or as all Sellers thereunder may agree.

     

    11.6. Indemnification
      and Contribution.

     

    (a) In
      the
      event of a registration of any Registrable Securities under the 1933 Act
      pursuant to Section 11, the Maker will, to the extent permitted by law,
      indemnify and hold harmless the Seller, each officer of the Seller, each
      director of the Seller, each underwriter of such Registrable Securities
      thereunder and each other person, if any, who controls such Seller or
      underwriter within the meaning of the 1933 Act, against any losses, claims,
      damages or liabilities, joint or several, to which the Seller, or such
      underwriter or controlling person may become subject under the 1933 Act or
      otherwise, insofar as such losses, claims, damages or liabilities (or actions
      in
      respect thereof) arise out of or are based upon any untrue statement or alleged
      untrue statement of any material fact contained in any registration statement
      under which such Registrable Securities was registered under the 1933 Act
      pursuant to Section 11, any preliminary prospectus or final prospectus contained
      therein, or any amendment or supplement thereof, or arise out of or are based
      upon the omission or alleged omission to state therein a material fact required
      to be stated therein or necessary to make the statements therein not misleading
      in light of the circumstances when made, and will, subject to the provisions
      of
      Section 11.6(c), reimburse the Seller, each such underwriter and each such
      controlling person for any legal or other expenses reasonably incurred by them
      in connection with investigating or defending any such loss, claim, damage,
      liability or action; provided,
      however, that the Maker shall not be liable to the Seller to the extent that
      any
      such damages arise out of or are based upon an untrue statement or omission
      made
      in any preliminary prospectus if (i) the Seller failed to send or deliver a
      copy
      of the final prospectus delivered by the Maker to the Seller with or prior
      to
      the delivery of written confirmation of the sale by the Seller to the person
      asserting the claim from which such damages arise, (ii) the final prospectus
      would have corrected such untrue statement or alleged untrue statement or such
      omission or alleged omission, or (iii) to the extent that any such loss, claim,
      damage or liability arises out of or is based upon an untrue statement or
      alleged untrue statement or omission or alleged omission so made in conformity
      with information furnished by any such Seller, or any such controlling person
      in
      writing specifically for use in such registration statement or prospectus.
      
       

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (b) In
      the
      event of a registration of any of the Registrable Securities under the 1933
      Act
      pursuant to Section 11, each Seller severally but not jointly will, to the
      extent permitted by law, indemnify and hold harmless the Maker, and each person,
      if any, who controls the Maker within the meaning of the 1933 Act, each officer
      of the Maker who signs the registration statement, each director of the Maker,
      each underwriter and each person who controls any underwriter within the meaning
      of the 1933 Act, against all losses, claims, damages or liabilities, joint
      or
      several, to which the Maker or such officer, director, underwriter or
      controlling person may become subject under the 1933 Act or otherwise, insofar
      as such losses, claims, damages or liabilities (or actions in respect thereof)
      arise out of or are based upon any untrue statement or alleged untrue statement
      of any material fact contained in the registration statement under which such
      Registrable Securities were registered under the 1933 Act pursuant to Section
      11, any preliminary prospectus or final prospectus contained therein, or any
      amendment or supplement thereof, or arise out of or are based upon the omission
      or alleged omission to state therein a material fact required to be stated
      therein or necessary to make the statements therein not misleading, and will
      reimburse the Maker and each such officer, director, underwriter and controlling
      person for any legal or other expenses reasonably incurred by them in connection
      with investigating or defending any such loss, claim, damage, liability or
      action, provided, however, that the Seller will be liable hereunder in any
      such
      case if and only to the extent that any such loss, claim, damage or liability
      arises out of or is based upon an untrue statement or alleged untrue statement
      or omission or alleged omission made in reliance upon and in conformity with
      information pertaining to such Seller, as such, furnished in writing to the
      Maker by such Seller specifically for use in such registration statement or
      prospectus, and provided, further, however, that the liability of the Seller
      hereunder shall be limited to the net proceeds actually received by the Seller
      from the sale of Registrable Securities covered by such registration
      statement.

     

    (c) Promptly
      after receipt by an indemnified party hereunder of notice of the commencement
      of
      any action, such indemnified party shall, if a claim in respect thereof is
      to be
      made against the indemnifying party hereunder, notify the indemnifying party
      in
      writing thereof, but the omission so to notify the indemnifying party shall
      not
      relieve it from any liability which it may have to such indemnified party other
      than under this Section 11.6(c) and shall only relieve it from any liability
      which it may have to such indemnified party under this Section 11.6(c), except
      and only if and to the extent the indemnifying party is prejudiced by such
      omission. In case any such action shall be brought against any indemnified
      party
      and it shall notify the indemnifying party of the commencement thereof, the
      indemnifying party shall be entitled to participate in and, to the extent it
      shall wish, to assume and undertake the defense thereof with counsel
      satisfactory to such indemnified party, and, after notice from the indemnifying
      party to such indemnified party of its election so to assume and undertake
      the
      defense thereof, the indemnifying party shall not be liable to such indemnified
      party under this Section 11.6(c) for any legal expenses subsequently incurred
      by such indemnified party in connection with the defense thereof other than
      reasonable costs of investigation and of liaison with counsel so selected,
      provided, however, that, if the defendants in any such action include both
      the
      indemnified party and the indemnifying party and the indemnified party shall
      have reasonably concluded that there may be reasonable defenses available to
      it
      which are different from or additional to those available to the indemnifying
      party or if the interests of the indemnified party reasonably may be deemed
      to
      conflict with the interests of the indemnifying party, the indemnified parties,
      as a group, shall have the right to select one separate counsel and to assume
      such legal defenses and otherwise to participate in the defense of such action,
      with the reasonable expenses and fees of such separate counsel and other
      expenses related to such participation to be reimbursed by the indemnifying
      party as incurred.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    (d) In
      order
      to provide for just and equitable contribution in the event of joint liability
      under the 1933 Act in any case in which either (i) a Seller, or any controlling
      person of a Seller, makes a claim for indemnification pursuant to this Section
      11.6 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 11.6 provides
      for indemnification in such case, or (ii) contribution under the 1933 Act may
      be
      required on the part of the Seller or controlling person of the Seller in
      circumstances for which indemnification is not provided under this Section
      11.6;
      then, and in each such case, the Maker and the Seller will contribute to the
      aggregate losses, claims, damages or liabilities to which they may be subject
      (after contribution from others) in such proportion so that the Seller is
      responsible only for the portion represented by the percentage that the public
      offering price of its securities offered by the registration statement bears
      to
      the public offering price of all securities offered by such registration
      statement, provided, however, that, in any such case, (y) the Seller will not
      be
      required to contribute any amount in excess of the public offering price of
      all
      such securities sold by it pursuant to such registration statement; and (z)
      no
      person or entity guilty of fraudulent misrepresentation (within the meaning
      of
      Section 11(f) of the 1933 Act) will be entitled to contribution from any person
      or entity who was not guilty of such fraudulent misrepresentation.

     

    11.7. Delivery
      of Unlegended Shares.

     

    (a) Within
      three (3) business days (such third business day being the “Unlegended
      Shares Delivery Date”) after the business day on which the Maker has
      received (i) a notice that Shares or Warrant Shares or any other Common Stock
      held by Lender have been sold pursuant to the Registration Statement or Rule
      144
      under the 1933 Act, (ii) a representation that the prospectus delivery
      requirements, or the requirements of Rule 144, as applicable and if required,
      have been satisfied (and, if requested by the Transfer Agent, the Maker, or
      the
      Maker’s legal counsel, provide reasonably satisfactory evidence of the same),
      (iii) the original share certificates representing the shares of Common Stock
      that have been sold, and (iii) in the case of sales under Rule 144, customary
      representation letters of the Lender and/or Lender’s broker regarding compliance
      with the requirements of Rule 144, the Maker at its expense, (y) shall deliver,
      and shall cause legal counsel selected by the Maker to deliver to its transfer
      agent (with copies to Lender) an appropriate instruction and opinion of such
      counsel, directing the delivery of shares of Common Stock without any legends
      including the legend set forth in Section 4(h) above, reissuable pursuant to
      any
      effective and current Registration Statement described in Section 11 of this
      Agreement or pursuant to Rule 144 under the 1933 Act (the “Unlegended
      Shares”); and (z) cause the transmission of the certificates representing
      the Unlegended Shares together with a legended certificate representing the
      balance of the submitted Shares certificate, if any, to the Lender at the
      address specified in the notice of sale, via express courier, by electronic
      transfer or otherwise on or before the Unlegended Shares Delivery Date.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b) In
      lieu
      of delivering physical certificates representing the Unlegended Shares, if
      the
      Maker’s transfer agent is participating in the Depository Trust Maker
      (“DTC”)
      Fast
      Automated Securities Transfer program, upon request of Lender, so long as the
      certificates therefor do not bear a legend and the Lender is not obligated
      to
      return such certificate for the placement of a legend thereon, the Maker shall
      cause its transfer agent to electronically transmit the Unlegended Shares by
      crediting the account of Lender’s prime Broker with DTC through its Deposit
      Withdrawal Agent Commission system. Such delivery must be made on or before
      the
      Unlegended Shares Delivery Date.

    

    (c) The
      Maker
      understands that a delay in the delivery of the Unlegended Shares pursuant
      to
      Section 11 hereof later than two business days after the Unlegended Shares
      Delivery Date could result in economic loss to a Lender. As compensation to
      Lender for such loss, the Maker agrees to pay late payment fees (as liquidated
      damages and not as a penalty) to the Lender for late delivery of Unlegended
      Shares in the amount of $100 per business day after the Delivery Date for each
      $10,000 of purchase price of the Unlegended Shares subject to the delivery
      default. If during any 360 day period, the Maker fails to deliver Unlegended
      Shares as required by this Section 11.7 for an aggregate of thirty (30) days,
      then Lender or assignee holding Securities subject to such default may, at
      its
      option, require the Maker to redeem all or any portion of the Shares and Warrant
      Shares subject to such default at a price per share equal to 120% of the
      Purchase Price of such Common Stock and Warrant Shares (“Unlegended
      Redemption Amount”).
      The
      amount of the aforedescribed liquidated damages that have accrued or been paid
      for the twenty day period prior to the receipt by the Lender of the Unlegended
      Redemption Amount shall be credited against the Unlegended Redemption Amount.
      The Maker shall pay any payments incurred under this Section in immediately
      available funds upon demand.

     

    (d) In
      addition to any other rights available to Lender, if the Maker fails to deliver
      to Lender Unlegended Shares as required pursuant to this Agreement, within
      seven
      (7) business days after the Unlegended Shares Delivery Date and the Lender
      purchases (in an open market transaction or otherwise) shares of common stock
      to
      deliver in satisfaction of a sale by Lender of the shares of Common Stock which
      the Lender was entitled to receive from the Maker (a “Buy-In”),
      then the Maker shall pay in cash to the Lender (in addition to any remedies
      available to or elected by the Lender) the amount by which (A) the Lender’s
      total purchase price (including brokerage commissions, if any) for the shares
      of
      common stock so purchased exceeds (B) the aggregate purchase price of the shares
      of Common Stock delivered to the Maker for reissuance as Unlegended Shares
      together with interest thereon at a rate of 15% per annum, accruing until such
      amount and any accrued interest thereon is paid in full (which amount shall
      be
      paid as liquidated damages and not as a penalty). For example, if Lender
      purchases shares of Common Stock having a total purchase price of $11,000 to
      cover a Buy-In with respect to $10,000 of purchase price of shares of Common
      Stock delivered to the Maker for reissuance as Unlegended Shares, the Maker
      shall be required to pay the Lender $1,000, plus interest. The Lender shall
      provide the Maker written notice indicating the amounts payable to the Lender
      in
      respect of the Buy-In.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (e) In
      the
      event Lender shall request delivery of Unlegended Shares as described in Section
      11.7 and the Maker is required to deliver such Unlegended Shares pursuant to
      Section 11.7, the Maker may not refuse to deliver Unlegended Shares based on
      any
      claim that Lender or any one associated or affiliated with Subscriber has been
      engaged in any violation of law, or for any other reason, unless, an injunction
      or temporary restraining order from a court, on notice, restraining and or
      enjoining delivery of such Unlegended Shares or exercise of all or part of
      said
      Warrant shall have been sought and obtained
      and the
      Maker has posted a surety bond for the benefit of Lender in the amount of 120%
      of the amount of the aggregate purchase price of the Common Stock and Warrant
      Shares which are subject to the injunction or temporary restraining order,
      which
      bond shall remain in effect until the completion of arbitration/litigation
      of
      the dispute and the proceeds of which shall be payable to Lender to the extent
      Lender obtains judgment in Lender’s favor.

    

    
      	 	
              12.

            	
              Liquidated
                Damages/Remedies not Exclusive. 

            

    

    

    A. The
      remedies of Lender provided herein or otherwise available to Lender at law
      or in
      equity shall be cumulative and concurrent, and may be pursued singly,
      successively and together at the sole discretion of Lender, and may be exercised
      as often as occasion therefore shall occur; and the failure to exercise any
      such
      right or remedy shall in no event be construed as a waiver or release of the
      same. 

    

    B. Liquidated
      Damages In the event that the Company fails to deliver the shares when due,
      whether by Section 4 or 5, or otherwise, the number of shares otherwise due
      shall increase by 5% for each month or partial month, until the Company does
      deliver such shares. The parties agree that this is a reasonable amount for
      liquidated damages, given the difficulty to determine, in advance, what actual
      damages may lie.

     

    13.
      Notice. All notices required to be given to any of the parties hereunder shall
      be in writing and shall he deemed to have been sufficiently given for all
      purposes when presented personally to such party or sent by certified or
      registered mail, return receipt requested, to such party at its address set
      forth below:

     

    If
      to the
      Maker:  SECURED
      FINANCIAL NETWORK, INC.

    100
      NE
      3rd Ave., Suite 1500, Ft. Lauderdale, FL 33301 

    Phone:
      954.332.3793; Fax: 954.337.2835

    

    If
      to the
      Lender:  The
      Nutmeg Group, L.L.C. 

    3346
      Commercial, Northbrook IL 60062

    
      	 	 	
              Phone:(847)
                291-7711; Fax:(253) 736-0134

            

    

     

    Such
      notice shall be deemed to be given when received if delivered personally or
      five
      (5) business days after the date mailed. Any notice mailed shall be sent by
      certified or registered mail. Any notice of any change in such address shall
      also be given in the manner set forth above. Whenever the giving of notice
      is
      required, the giving of such notice may be waived in writing by the party
      entitled to receive such notice.

    

    14.
      Fees.
      The Maker shall pay to Lender, at Closing, a fixed non-accountable allowance
      to
      cover due diligence expenses of $1,500, plus 1.25% of the total amount invested
      pursuant to each Closing. At the election of the Lender, or its designees,
      any
      or all of the foregoing compensation and expense allowances can be taken in
      kind, pursuant to the same terms and conditions as that of an investment herein,
      for a like amount. Of the amounts advanced by the Lender to the Maker, 10%
      will
      be paid directly to Brass Bulls, Corp., on the Maker’s behalf, as a finder’s
      fee. This will be the Maker’s expense and thus reduce the amount otherwise
      payable to the Maker.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    

    15.
      Severability. In the event that any provision of this Note is held to be
      invalid, illegal or unenforceable in any respect or to any extent, such
      provision shall nevertheless remain valid, legal and enforceable in all such
      other respects and to such extent as may be permissible. Any such invalidity,
      illegality or unenforceability shall not affect any other provisions of this
      Note, but this Note shall be construed as if such invalid, illegal or
      unenforceable provision had never been contained herein.

     

    16.
      Successors and Assigns. This Note inures to the benefit of the Lender and binds
      the Maker, and its respective successors and assigns, and the words “Lender” and
“Maker” whenever occurring herein shall be deemed and construed to include such
      respective successors and assigns.

     

    17.
      Entire Agreement. This Note embodies the entire understanding and agreement
      between the parties hereto with respect to the subject matter hereof and
      supersedes all prior agreements and understandings, whether express or implied,
      oral and written.

     

    18.
      Modification of Agreement. This Note may not be modified, altered or amended,
      except by an agreement in writing signed by both the Maker and the
      Lender.

     

    19.
      Governing Law. This instrument shall be construed according to and governed
      by
      the laws of the State of Illinois.

     

    20.
      Consent to Jurisdiction and Service of Process. Maker irrevocably appoints
      each
      and every officer of Maker as its attorney upon whom may be served any notice,
      process or pleading in any action or proceeding against it arising out of or
      in
      connection with this Note; and Maker hereby consents that any action or
      proceeding against it be commenced and maintained in any court within the State
      of Illinois by service of process on any such, officer; and Maker agrees that
      the courts of the State of Illinois shall have jurisdiction with respect to
      the
      subject matter hereof and the person of Maker and the collateral securing
      Maker’s obligations hereunder. Notwithstanding the foregoing, Lender, in its
      absolute discretion may also initiate proceedings in the courts of any other
      jurisdiction in which Maker may be found or in which any of its properties
      or
      any such collateral may be located. 

    

    21.
      Mandatory Prepayments. Maker shall apply, as Prepayments to the Loan until
      paid
      in full, all payments or proceeds received by Maker with respect to the
      disposition or sale of any of the Collateral (whether or not such sale or
      disposition is permitted by the terms of the Pledge and Security Agreement).
      

    

    22.
      Merger, License or Any Other Similar Arrangement: The Lender or its designee
      or
      Brass Bulls, Corp. shall also be entitled to a commission of 5% of any and
      all
      amounts received, directly or indirectly, by SECURED FINANCIAL NETWORK, INC.
      and/or its principals as a consequence of a merger, license or any other similar
      arrangement or remuneration as a consequence of the efforts of the Lender or
      its
      designee or agent or Brass Bulls, Corp. All references to “SECURED FINANCIAL
      NETWORK, INC.” shall include associates, and any individual, corporation,
      organization, firm or company, of which SECURED FINANCIAL NETWORK, INC. is
      a
      member, employee, principal, party to, or from which such it would otherwise
      benefit financially, directly or indirectly. 

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, Maker has duly executed this Note as of the date first written
      above.

     

    
      	 	 	
              MAKER

            

    

     

    
      	 	 	
              SECURED
                FINANCIAL NETWORK, INC. 

            

    

    

    
      	 	 	
              By:
                /s/ Jeffrey L. Schultz:

            

    

    

    

    
      	 	 	
              -------------------------------------

            

    

    
      	 	 	
              Jeffrey
                L. Schultz

            

    

    
      	 	 	
              CEO

            

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    PLEDGE
      AND SECURITY AGREEMENT

    

    This
      PLEDGE AND SECURITY AGREEMENT entered into at Northbrook, IL on September 26,
      2006, is by and between SECURED FINANCIAL NETWORK, INC., a Nevada corporation
      (the “Borrower”) and The Nutmeg Group, L.L.C., a US Virgin Islands limited
      liability company (“Lender” or “Secured Party”), and is executed pursuant to the
      Secured Convertible Note dated of even date herewith (as amended, supplemented
      or otherwise modified from time to time, the “Secured Convertible Note”),
      between Borrower and Lender.

    

    RECITALS

     

    WHEREAS,
      in conjunction with the sale of certain shares of Secured Financial Network,
      Inc. as set forth in the Share Purchase Agreement, the Borrower has requested
      that the Lender provide a loan of $200,000, to the Borrower (the “Loan”);
      and

     

    WHEREAS,
      the Lender has agreed to make such Loan subject to the terms of the Secured
      Convertible Note; and

     

    WHEREAS,
      the Borrower and Lender, will receive direct and indirect benefits from the
      Stock Purchase Agreement and the Loan under the Secured Convertible Note;
      and

     

    WHEREAS,
      it is a condition precedent to the obligations of the Lender to make the Loan
      under the Secured Convertible Note that the Borrower and Lender execute and
      deliver this Agreement;

     

    NOW,
      THEREFORE, in consideration of the promises herein and to induce the Lender
      to
      enter into the Secured Convertible Note and to make the Loan thereunder, and
      for
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the parties hereto agree as follows:

    

    ARTICLE
      I

    DEFINITIONS;
      TERMS GENERALLY

     

    Section
      1.01 Definitions. As used herein:

     

    (a)
      terms
      defined above have the meanings given such terms above;

     

    (b)
      unless otherwise defined herein, terms defined in the Secured Convertible Note
      and used herein have the meanings given to them in the Secured Convertible
      Note;

     

    (c)
      unless otherwise defined herein, terms defined in the Uniform Commercial Code
      (as defined herein) and used herein have the same meanings herein as specified
      therein; provided, however, that if a term is defined in Article 9 of the
      Uniform Commercial Code differently than in another Article of the Uniform
      Commercial Code, then such term has the meaning specified in Article 9;
      and

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (d)
      the
      following terms have the following meanings:

     

    “Agreement”
      means this Pledge and Security Agreement, as the same may be amended,
      supplemented or otherwise modified from time to time.

     

    “Collateral”
      shall mean “Pledged Property”.

     

    “Obligations”
      means the collective reference to the payment and performance when due of all
      indebtedness, liabilities, obligations and undertakings of the Borrower
      (including, without limitation, all Indebtedness) of every kind or description
      arising out of or outstanding under, advanced or issued pursuant to, or
      evidenced by, the Loan Documents.

     

    “Pledged
      Property” shall mean 333,333 Free Trading Shares 1,666,667 Restricted Shares (to
      be registered with an SB-2 filing) of the Borrower’s Common Stock. The amount of
      Pledged Property or Collateral shall increase, the Stock to be delivered within
      7 days thereof, should the Applicable Fair Market Value for Common Stock be
      less
      than $.166 per share based on the following applicable times/calculations.
      Any
      Collateral increase shall be in Freely tradable shares of the Company. The
      “Applicable Fair Market Value” shall be the lesser of the following times
      60%:

    

    a) $.10,
      or

    b) the
      closing bid price for Common Stock on the trading day one day prior to the
      date
      on which the Purchaser issues a Notice of Conversion, or 

    c) the
      average closing bid price for Common Stock on the five trading days immediately
      prior to the date on which the Purchaser issues a Notice of Conversion,
      or

    if
      registration statement is not effective on the 180 day anniversary of Closing
      (“d” and “e” not otherwise applying),

    d) the
      closing bid price for Common Stock on the trading day one day prior to Closing,
      or

    e) the
      average closing bid price for Common Stock on the five trading days immediately
      prior to Closing. 

    

    provided,
      however, the Collateral shall not exceed such number of shares, warrants and
      options, if such exercise or conversion or issuance would result in beneficial
      ownership by the Lender and its affiliates of more than 9.99% of the outstanding
      shares of common stock of the Borrower on such exercise or conversion or
      issuance date, including: 

    

    (i)
      the
      number of shares of common stock beneficially owned by the Lender and its
      affiliates, and 

    (ii)
      the
      number of shares of common stock issuable upon the exercise of the warrant
      and/or options and/or conversion. 

    

    For
      the
      purposes of this provision as set forth in the immediately preceding sentence,
      beneficial ownership shall be determined in accordance with Section 13(d) of
      the
      Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
      Subject to the foregoing, the Lender shall not be limited to aggregate warrant
      and/or option exercises and/or conversion of only 9.99% and aggregate warrant
      and/or option exercises and/or conversion by the Lender may exceed 9.99%. The
      Lender may void the exercise limitation described in this Section upon 61 days
      prior written notice to the Company. The Lender may allocate which of the equity
      of the Company deemed beneficially owned by the Lender shall be included in
      the
      9.99% amount described above and which shall be allocated to the excess above
      9.99%.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    “Loan
      Documents” means this Agreement, the Secured Convertible Note, the Warrant
      Agreement and any other document made, delivered or given in connection with
      any
      of the foregoing. 

     

    “Warrant
      Agreement” means that certain Warrant Agreement from Borrower to the Lender in
      the form attached hereto as Exhibit “C”, as the same may be amended, modified or
      supplemented from time to time.

     

    “Uniform
      Commercial Code” means the Uniform Commercial Code as in effect in the State of
      Illinois.

     

    Section
      1.02 Terms Generally; Rules of Construction. The definitions of terms herein
      shall apply equally to the singular and plural forms of the terms defined.
      Whenever the context may require, any pronoun shall include the corresponding
      masculine, feminine and neuter forms.

    

    ARTICLE
      II

    GRANT
      OF
      SECURITY INTEREST

     

    Section
      2.01 Grant of Security Interest. As collateral security for the prompt and
      complete payment and performance when due (whether at the stated maturity,
      by
      acceleration or otherwise) of the Obligations, the Borrower hereby pledges
      to
      the Secured Party, and hereby grants to the Secured Party, a first priority
      continuing security interest in, lien on and right of setoff against, all of
      the
      Pledged Property and all proceeds thereof (the “Collateral”).

     

    Section
      2.02 Authorization to File Financing Statements. The Lender and Borrower hereby
      irrevocably authorize the Secured Party at any time and from time to time to
      file in any filing office in any relevant jurisdiction any initial financing
      statements and amendments thereto indicating the Collateral in such form as
      may
      be required by the Secured Party. The Borrower agrees to furnish any information
      reasonably requested by the Secured Party for such purposes promptly upon the
      Secured Party’s request. The Borrower also ratifies its authorization for the
      Secured Party to have filed in any relevant jurisdiction any like initial
      financing statements or amendments thereto if filed prior to the date hereof.
      In
      addition, to perfect security interests by Secured Party’s possession, Borrower
      will deliver to Secured Party the Collateral, with a separate endorsement signed
      in blank, and a certificate representing the Borrower Stock, together with
      stock
      powers endorsed in blank sufficient to effect a transfer of such stock. Upon
      payment in full of the Obligations, Secured Party shall return possession of
      all
      Collateral to Borrower and release all filed and recorded financing statements
      or other evidence of the security interests arising hereunder.

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES

     

    The
      Borrower hereby represents and warrants to Secured Party, as of the date hereof
      and at all times during the terms of this Agreement, as follows:

     

    Section
      3.01 Organization. The Borrower is duly organized, validly existing and in
      good
      standing under the laws of Nevada, has all requisite power and authority, and
      has all material governmental licenses, authorizations, consents and approvals
      necessary, to own its assets and to carry on its business as now
      conducted.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Section
      3.02 Authority; Enforceability. The execution and delivery by the Borrower
      of
      this Agreement and the other Loan Documents and the performance of its
      obligations hereunder and thereunder are within the powers of the Borrower
      and
      have been duly authorized by all necessary corporate Board approval, and do
      not
      contravene any law, regulation, or order applicable to the Borrower or any
      of
      its properties or assets or any contractual restriction which may, individually
      or in the aggregate, have a material adverse effect on the business, prospects
      or condition (financial or otherwise) of the Borrower.

     

    Section
      3.03 Perfected First Priority Liens. The security interests granted pursuant
      to
      this Agreement upon the filing of a financing statement describing the
      Collateral with the Secretary of State of Nevada and delivery of possession
      of
      the Collateral, shall constitute valid perfected security interests of the
      Collateral in favor of the Secured Party as collateral security for the
      Obligations, enforceable in accordance with the terms hereof against all
      creditors of the Borrower and any Persons purporting to purchase any Collateral
      from the Borrower and there are no prior or other Liens on the Collateral in
      existence on the date hereof.

     

    Section
      3.04 Solvency. The Borrower is not insolvent as of the date hereof and will
      not
      be rendered insolvent as a result of this Agreement.

    

    ARTICLE
      IV

    AFFIRMATIVE
      COVENANTS

    

      The
      Borrower hereby unconditionally covenants and agrees with the Secured Party,
      until the entire Obligation shall have been paid in full as
      follows:

     

    Section
      4.01 Maintenance of Perfected Security Interest; Further
      Documentation.

     

    (a)
      The
      Borrower shall maintain the security interest and lien created by this Agreement
      as a perfected security interest and lien having at least the priority described
      in Section 3.03; and

     

    (b)
      The
      Borrower shall promptly give notice to the Secured Party of, and shall defend
      against, any suit, action, proceeding or lien that involves the Collateral
      or
      that could adversely affect the security interest and lien granted by it
      hereunder, and the Borrower shall defend the security interest and lien created
      by this Agreement against the claims and demands of all Persons whomsoever;
      and

    

    (c)
      The
      Lender and Borrower will furnish to the Secured Party from time to time
      statements and schedules further identifying and describing the Collateral
      and
      such other reports in connection with the Collateral as the Secured Party may
      reasonably request.

    

    (d)
      The
      Lender and Borrower shall timely perform and comply with all provisions of
      the
      Loan Documents. 

    

    

    

    

    

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    ARTICLE
      V

    NEGATIVE
      COVENANTS

     

    Section
      5.01 Restrictions on Sales and other Dispositions. The Borrower shall not sell,
      assign, convey, pledge, encumber, transfer, redeem, exchange, substitute,
      replace or otherwise dispose of or abandon all or any part of the Collateral
      without the prior written consent of the Secured Party.

     

    Section
      5.02 Impairment of Security Interest. The Borrower will not take or fail to
      take
      any action which would in any manner impair the enforceability or priority
      of
      the Secured Party’s security interest in any Collateral, impair the Collateral
      or the rights, remedies, powers and privileges conferred on the Secured Party
      pursuant to this Agreement or by operation of law or otherwise.

    

    ARTICLE
      VI

    WARRANTS,
      REGISTRATION

     

    Section
      6.01 Warrants. Borrower agrees to have issued in Lender’s name or its designee,
      warrants to purchase Borrower Common Stock in accordance with the Warrant
      Agreement.

     

    Section
      6.02 Registration. Lender shall have full registration rights on the Warrant
      shares exercised.

    

    ARTICLE
      VII

    EVENT
      OF
      DEFAULT

    

    Section
      7.01 Event of Default. One or more of the following events or circumstances
      shall constitute an “Event of Default” hereunder:

     

    A.
      An
“Event of Default” under the Secured Convertible Note or any other Loan Document
      shall occur and be continuing; or

     

    B.
      The
      Borrower shall fail to pay any amount hereunder or under any other Loan Document
      to which it is a party when the same shall become due and payable.

    

    ARTICLE
      VIII

    RIGHTS
      AND REMEDIES

     

    Section
      8.01 Rights and Remedies. Upon the occurrence and during the continuance of
      an
      Event of Default, the Secured Party may exercise, in addition to all other
      rights and remedies granted to it in the Secured Documents and in any other
      instrument or agreement securing, evidencing or relating to the Obligations,
      all
      rights and remedies of a secured party under the Uniform Commercial Code or
      any
      other applicable law or otherwise available at law or equity. All proceeds
      of
      sale of any Collateral shall be applied to the Obligations, and Borrower shall
      be entitled to any surplus proceeds or Collateral remaining after the
      Obligations are paid in full. 

    

    

    

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    ARTICLE
      IX

    MISCELLANEOUS

     

    Section
      9.01 Notices. All notices and other communications provided for herein shall
      be
      given in the manner and subject to the terms of Section 12 of the Secured
      Convertible Note (including provisions regarding a change of address or telecopy
      number of a party). 

     

    Section
      9.02 Amendments. No amendment, supplement or modification of this Agreement,
      and
      no waiver of any provision of this Agreement or consent to any departure by
      the
      Borrower therefrom, shall in any event be effective unless the same has been
      agreed to in writing by the parties.

     

    Section
      9.03 Successors and Assigns. The provisions of this Agreement shall be binding
      upon and inure to the benefit of the parties hereto and their respective
      successors and assigns permitted hereby, except that any assignment must be
      approved in writing by the other party. Such written consent shall not be
      unreasonably withheld by either party.

     

    Section
      9.04 Governing Law; Consent to Jurisdiction.

     

    (a)
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of Illinois.

    

    (b)
      Any
      legal action or proceeding with respect to this Agreement or any other loan
      document shall be brought in the Courts of the State of Illinois.

     

    Section
      9.05 Entire Agreement. This written Agreement and the other Loan Documents
      represent the entire agreement among the parties as to the subject matter
      hereof.

     

    IN
      WITNESS WHEREOF, intending to be legally bound, the Borrower has caused this
      Agreement to be duly executed as of the date first above written.

     

    SECURED
      FINANCIAL NETWORK, INC.

     

    By:
      /s/
      Jeffrey L. Schultz

    -------------------------------------

    Jeffrey
      L. Schultz 

    Title:
      CEO

     

    Accepted:

     

    The
      Nutmeg Group, L.L.C. 

    3346
      Commercial

    Northbrook
      IL 60062

    Phone:(847)
      291-7711; Fax:(847) 291-7733

     

    
      	 	 	 	 	 	
              By:
                /s/ Randall S. Goulding

            

    

    -------------------------------------

    
      	 	 	 	 	 	
              Name:
                Randall S. Goulding

            

    

    
      	 	 	 	 	 	
              Title:
                Manager

            

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    THE
      WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES TO BE ISSUED UPON
      ITS
      EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
      1933
      (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”)
      AND SHALL NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR TRANSFER HAS BEEN
      REGISTERED UNDER THE SECURITIES ACT AND STATE ACTS, OR AN EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS IS AVAILABLE, THE AVAILABILITY OF WHICH MUST BE
      ESTABLISHED TO THE SATISFACTION OF THE COMPANY. 

    

    CLASS
      A STOCK PURCHASE WARRANT

    

    Warrant
      No. -----  Number
      of Shares: 

    

    SECURED
      FINANCIAL NETWORK, INC.

    COMMON
      STOCK, NO PAR VALUE PER SHARE

    VOID
      AFTER 5:00 P.M. EASTERN STANDARD TIME

    ON
      DECEMBER 31, 2011

    

    This
      Warrant is issued to The Nutmeg Group, L.L.C., a US Virgin Islands limited
      liability company, having its principal address at 3346 Commercial, Northbrook,
      IL 60062 (“Holder”) by SECURED FINANCIAL NETWORK, INC., a Nevada corporation
      (hereinafter with its successors called the “Company”). 

    

    For
      value
      received and subject to the terms and conditions hereinafter set out, Holder
      is
      entitled to purchase from the Company at a purchase price of 300% of the
      Conversion Price (as defined in the Secured Convertible Note) per share, fully
      paid and non-assessable shares of common stock, no par value per share (“Common
      Shares”) of the Company. Such purchase price per Common Share, adjusted from
      time to time as provided herein, is referred to as the “Purchase Price.”
Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Secured Convertible Note (the “Secured Convertible
      Note”), dated September 26, 2006, among the Company and the purchasers signatory
      thereto. The number of Common Shares issuable to Holder upon full exercise
      shall
      be equal to 30% of the dollar amount advanced to the Company by Holder pursuant
      to the Secured Convertible Note, divided by the Conversion Price. 

    

    The
      Holder may exercise this Warrant, in whole or in part, upon surrender of this
      Warrant, with the exercise form annexed hereto duly executed, at the office
      of
      the Company, or such other office as the Company shall notify the Holder in
      writing, together with a certified or bank cashier’s check payable to the order
      of the Company in the amount of the Purchase Price times the number of Common
      Shares being purchased.

    

    1. The
      person or persons in whose name or names any certificate representing Common
      Shares is issued hereunder shall be deemed to have become the holder of record
      of the Common Shares represented thereby as of the close of business on the
      date
      on which this Warrant is exercised with respect to such shares, whether or
      not
      the transfer books of the Company shall be closed. Until such time as this
      Warrant is exercised or terminates, the Purchase Price payable and the number
      and character of securities issuable upon exercise of this Warrant are subject
      to adjustment as hereinafter provided.

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    2. Unless
      previously exercised, this Warrant shall expire at 5:00 p.m. Eastern Standard
      Time, on December 31, 2011 and
      shall
      be void thereafter or can be extended at the Company’s discretion (“Expiration
      Date”). 

    

    3. The
      Company covenants that it will at all times reserve and keep available a number
      of its authorized Common Shares, free from all preemptive rights, which will
      be
      sufficient to permit the exercise of this Warrant. The Company further covenants
      that such shares as may be issued pursuant to the exercise of this Warrant
      will,
      upon issuance, be duly and validly issued, fully paid and non-assessable and
      free from all taxes, liens, and charges.

    

    4. If
      the
      Company subdivides its outstanding Common Shares, by split-up or otherwise,
      or
      combines its outstanding Common Shares, the Purchase Price then applicable
      to
      shares covered by this Warrant shall forthwith be proportionately decreased
      in
      the case of a subdivision, or proportionately increased in the case of a
      combination.

    

    5. If
      (a)
      the Company reorganizes its capital, reclassifies its capital stock,
      consolidates or merges with or into another corporation (but only if the Company
      is not the surviving corporation and
      no
      longer
      has more than a single shareholder) or sells, transfers or otherwise disposes
      of
      all or substantially all its property, assets, or business to another
      corporation, and (b) pursuant to the terms of such reorganization,
      reclassification, merger, consolidation, or disposition of assets, shares of
      common stock of the successor or acquiring corporation, or any cash, shares
      of
      stock, or other securities or property of any nature whatsoever (including
      warrants or other subscription or purchase rights) in addition to or in lieu
      of
      common stock of the successor or acquiring corporation (“Other Property”), are
      to be received by or distributed to the holders of Common Shares, then (c)
      Holder shall have the right thereafter to receive, upon exercise of this
      Warrant, the same number of shares of common stock of the successor or acquiring
      corporation and Other Property receivable upon such reorganization,
      reclassification, merger, consolidation, or disposition of assets as a holder
      of
      the number of Common Shares for which this Warrant is exercisable immediately
      prior to such event. At the time of such reorganization, reclassification,
      merger, consolidation or disposition of assets, the successor or acquiring
      corporation shall expressly assume the due and punctual observance and
      performance of each and every covenant and condition of this Warrant to be
      performed and observed by the Company and all the obligations and liabilities
      hereunder, subject to such modifications as may be deemed appropriate (as
      determined by resolution of the Board of Directors of the Company) in order
      to
      adjust the number of shares of the common stock of the successor or acquiring
      corporation for which this Warrant is exercisable. For purposes of this section,
      “common stock of the successor or acquiring corporation” shall include stock of
      such corporation of any class which is not preferred as to dividends or assets
      over any other class of stock of such corporation and which is not subject
      to
      redemption and shall also include any evidences of indebtedness, shares of
      stock, or other securities which are convertible into or exchangeable for any
      such stock, either immediately or upon the arrival of a specified date or the
      happening of a specified event and any warrants or other rights to subscribe
      for
      or purchase any such stock. The foregoing provisions of this section shall
      similarly apply to successive reorganizations, reclassifications, mergers,
      consolidations, or disposition of assets.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    6. If
      a
      voluntary or involuntary dissolution, liquidation or winding up of the Company
      (other than in connection with a merger or consolidation of the Company) is
      at
      any time proposed during the term of this Warrant, the Company shall give
      written notice to the Holder at least thirty days prior to the record date
      of
      the proposed transaction. The notice shall contain: (1) the date on which the
      transaction is to take place; (2) the record date (which must be at least thirty
      days after the giving of the notice) as of which holders of the Common Shares
      entitled to receive distributions as a result of the transaction shall be
      determined; (3) a brief description of the transaction; (4) a brief description
      of the distributions, if any, to be made to holders of the Common Shares as
      a
      result of the transaction; and (5) an estimate of the fair market value of
      the
      distributions. On the date of the transaction, if it actually occurs, this
      Warrant and all rights existing under this Warrant shall terminate.

    

    7. In
      no
      event shall any fractional Common Share of the Company be issued upon any
      exercise of this Warrant. If, upon exercise of this Warrant as an entirety,
      the
      Holder would, except as provided in this Section 7, be entitled to receive
      a
      fractional Common Share, then the Company shall issue the next higher number
      of
      full Common Shares, issuing a full share with respect to such fractional share.
      If this Warrant is exercised at one time for less than the maximum number of
      Common Shares purchasable upon the exercise hereof, the Company shall issue
      to
      the Holder a new warrant of like tenor and date representing the number of
      Common Shares equal to the difference between the number of shares purchasable
      upon full exercise of this Warrant and the number of shares that were purchased
      upon the exercise of this Warrant.

    

    8. Whenever
      the Purchase Price is adjusted, as herein provided, the Company shall promptly
      deliver to the Holder a certificate setting forth the Purchase Price after
      such
      adjustment and setting forth a brief statement of the facts requiring such
      adjustment.

    

    9. If
      at any
      time prior to the expiration or exercise of this Warrant, the Company shall
      pay
      any dividend or make any distribution upon its Common Shares or shall make
      any
      subdivision or combination of, or other change in its Common Shares, the Company
      shall cause notice thereof to be mailed, first class, postage prepaid, to Holder
      at least thirty full business days prior to the record date set for determining
      the holders of Common Shares who shall participate in such dividend,
      distribution, subdivision, combination or other change. Such notice shall also
      specify the record date as of which holders of Common Shares who shall
      participate in such dividend or distribution is to be determined. Failure to
      give such notice, or any defect therein, shall not affect the legality or
      validity of any dividend or distribution.

    

    10. The
      Company will maintain a register containing the names and addresses of the
      Holder and any assignees of this Warrant. Holder may change its address as
      shown
      on the warrant register by written notice to the Company requesting such change.
      Any notice or written communication required or permitted to be given to the
      Holder may be delivered by confirmed facsimile or telecopy or by a recognized
      overnight courier, addressed to Holder at the address shown on the warrant
      register.

    

    11.
       This
      Warrant has not been registered under the Securities Act of 1933, as amended
      (the “Securities Act”), or any state securities laws (“State Acts”) or
      regulations in reliance upon exemptions under the Securities Act, and exemptions
      under the State Acts. Subject to compliance with the Securities Act and State
      Acts, this Warrant and all rights hereunder are transferable in whole or in
      part, at the office of the Company at which this Warrant is exercisable, upon
      surrender of this Warrant together with the assignment hereof properly endorsed.
      The Common Stock into which the Warrants are exercisable will have piggyback
      registration
      rights, and the Warrants will be transferable. If within 270 days of Closing,
      the Company does not register the shares of Common Stock into which the Warrants
      are exercisable, or the shares of Common Stock into which the Warrants are
      exercisable are not otherwise freely tradable, then, at Holder’s option, the
      Warrant exercise may be cashless. 

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    12.
       In
      case
      this Warrant shall be mutilated, lost, stolen, or destroyed, the Company may
      issue a new warrant of like tenor and denomination and deliver the same (a)
      in
      exchange and substitution for and upon surrender and cancellation of any
      mutilated Warrant, or (b) in lieu of any Warrant lost, stolen, or destroyed,
      upon receipt of evidence satisfactory to the Company of the loss, theft or
      destruction of such Warrant (including a reasonably detailed affidavit with
      respect to the circumstances of any loss, theft, or destruction) and of
      indemnity with sufficient surety satisfactory to the Company.

    

    13. Unless
      a
      current registration statement under the Securities Act, shall be in effect
      with
      respect to the securities to be issued upon exercise of this Warrant, the
      Holder, by accepting this Warrant, covenants and agrees that, at the time of
      exercise hereof, and at the time of any proposed transfer of securities acquired
      upon exercise hereof, the Company may require Holder to make such
      representations, and may place such legends on certificates representing the
      Common Shares issuable upon exercise of this Warrant, as may be reasonably
      required in the opinion of counsel to the Company to permit such Common Shares
      to be issued without such registration.

    

    14. 
      This
      Warrant does not entitle Holder to any of the rights of a stockholder of the
      Company.

    

    15. Nothing
      expressed in this Agreement and nothing that may be implied from any of the
      provisions hereof is intended, or shall be construed, to confer upon, or give
      to, any person or corporation other than the parties to this Agreement any
      covenant, condition, stipulation, promise, or agreement contained herein, and
      all covenants, conditions, stipulations, promises and agreements contained
      herein shall be for the sole and exclusive benefit of the parties hereto and
      their respective successors and assigns.

    

    16. The
      provisions and terms of this Warrant shall be construed in accordance with
      the
      laws of the State of Illinois. 

    

    IN
      WITNESS WHEREOF, this Warrant has been duly executed by the Company as of
      September 26, 2006.

    

    

    

    SECURED
      FINANCIAL NETWORK, INC.

    

    

    

    

    

    By:
      _______________________________

          

      

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    FORM
      OF EXERCISE

    

    

    Date:
      ____________________

    

    

    To: SECURED
      FINANCIAL NETWORK, INC.

    100
      NE
      3rd Ave., Suite 1500,

    Ft.
      Lauderdale, FL 33301

    Telecopy
      No. 954.337.2835

    

    

    The
      undersigned hereby subscribes for _______ shares of common stock of SECURED
      FINANCIAL NETWORK, INC. covered by this Warrant and hereby delivers $___________
      in full payment of the purchase price thereof. The certificate(s) for such
      shares should be issued in the name of the undersigned or as otherwise indicated
      below:

    

    

    ____________________________

    Signature:

    

    

    ____________________________

    Printed
      Name

    

    

    

    ____________________________

    Name
      for
      Registration, if different

    

    

    ____________________________

    Street
      Address

    

    ____________________________

    City,
      State and Zip Code

    

    ____________________________

    Social
      Security Number

    

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    ASSIGNMENT

    

    

    For
      Value
      Received, the undersigned hereby sells, assigns and transfers unto the
      assignee(s) set forth below the within Warrant certificate, together with all
      right, title and interest therein, and hereby irrevocably constitutes and
      appoints ___________________________________ attorney, to transfer the said
      Warrant on the books of the within-named Company with respect to the number
      of
      Common Shares set forth below, with full power of substitution in the
      premises.

    

    Social
      Security or

    other
      Identifying

    Name(s)
      of   Number(s)
      of      No.
      of

    Assignee(s)   Assignee(s)  Address   Shares

    

    

    

    

    

    

    

    Dated:
      ______________________________

    

    

    

    _________________________________________

    Signature

    

    NOTICE:
      THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
      THE FACE OF THE WARRANT IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT,
      OR ANY CHANGE WHATSOEVER.

    

    

    _________________________________________

    Print
      Name and Title$200,000 September 26, 2006 SECURED CONVERTIBLE NOTE - Melanie S. Altholtz
      Irrevocable Trust, Adam Altholtz, Trustee

    
      

    

    $200,000
      September 26, 2006 SECURED CONVERTIBLE NOTE

    

    FOR
      VALUE
      RECEIVED, SECURED FINANCIAL NETWORK, INC. (the “Maker” or the “Company”), a
      Nevada corporation, having a place of business at 100
      NE
      3rd Ave., Suite 1500, Ft. Lauderdale, FL 33301,
      hereby
      promises to pay to the order of Melanie S. Altholtz Irrevocable Trust, Adam
      Altholtz, Trustee (the “Lender”), having its principal address at 1800 Second
      St., Suite 758, Sarasota, FL 34236, the sum of $200,000. This Secured
      Convertible Note (this “Note”) is issued to document loans, the proceeds of
      which are for use for general Company operations, $100,000 on September 26,
      2006
      and $100,000, due on October 26, 2006, from Lender to the Maker; provided that
      transmission of funds pursuant to the terms herein, shall not occur prior to
      2
      business days of the delivery of the Collateral to the Purchaser, and is subject
      to adherence to the business plan and milestone events. All capitalized terms
      used herein but not otherwise defined herein shall have the meanings ascribed
      to
      them in the Share Purchase Agreement.

    

    1.
      Maturity. The amount outstanding under this Note will be due and payable at
      the
      address of Lender or such other place as Lender may designate on September
      26,
      2007 (the “Maturity Date”). No advances shall be made by Lender after the
      Maturity Date.

     

    2.
      Payments of Interest. Interest on the borrowed outstanding principal balance
      under this Note shall be payable monthly, commencing on the first banking day
      of
      November 2006, and on the first business day of each month thereafter until
      the
      Debenture is no longer outstanding. Each monthly payment shall consist of all
      accrued but unpaid interest in the arrears. 

    

    3.
      Interest Rate. The outstanding principal balance of this Note shall bear
      interest at a rate per annum equal to 10.0% per annum, amortized monthly in
      arrears interest calculated on a 365-day basis 

    

    4.
      Alternative Method of Payment / Optional Prepayment

    

    A.
      Alternate Methods of Payment: Subject to the conditions set forth below and
      customary equity conditions (including an effective registration statement),
      the
      Company may elect to make such payments of principal and interest under the
      Debenture, in freely tradable shares of the Company’s common stock. Each share
      of the of the Company’s Common stock will be valued at the Conversion Price (as
      defined in Section 5 below), as determined at the lesser of (1) on the day
      the
      Company gives notice, or (2) on the day the Company delivers the shares. The
      Company is required to notify Lender of its election to make such payment in
      shares at least ten days prior to the payment date. Notwithstanding anything
      herein to the contrary, the Company’s right to make such payment in shares in
      lieu of cash can only be made if the volume weighted average price of the
      Company’s common stock has been trading at a price of $0.25 or above per share
      for 10 consecutive days prior to the date of the payment date and the average
      daily trading volume is at least 15 times the number of shares to be so issued
      hereby as payment. 

    

    B.
      Pre-Payment Option: At any time, 90 days after funding is complete, but subject
      to customary equity conditions, the Company may at any time, upon 30 days
      written notice, prepay all of the outstanding Notes on a pro-rata basis at
      110%
      of the outstanding principal balance only after the note has amortized 1 year.
      In the event that Maker sends a Prepayment Notice to Lender, Lender may elect
      prior to the Prepayment Date to convert into common stock of SECURED FINANCIAL
      NETWORK, INC. (“SECURED FINANCIAL NETWORK, INC.” Common Stock”) pursuant to
      Section 5 hereof, all or part of the amount of principal to be repaid by the
      proposed Prepayment instead of receiving such prepayment. 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    5.
      Optional/Mandatory Conversion. At any time, 90 days after funding is complete,
      but prior to repayment of all amounts due as provided under the Note, all or
      any
      portion of the principal amount of the Note shall be convertible at the option
      of the Lender into fully paid and non-assessable shares of SECURED FINANCIAL
      NETWORK, INC. Common Stock. The number of shares of SECURED FINANCIAL NETWORK,
      INC. Common Stock that Lender shall be entitled to receive upon conversion
      shall
      be equal to the number attained by dividing the principal, including accrued
      interest pursuant to the Note being converted by the Conversion Price. The
      “Conversion Price” shall be the lesser of $.10 per share, or one of the
      following times 60%:

    

    a) the
      closing bid price for Common Stock on the trading day one day prior to a
      Purchaser Notice of Conversion, or 

    b) the
      average closing bid price for Common Stock on the five trading days immediately
      prior to a Purchaser Notice of Conversion, or

    if
      registration statement is not effective on the 180 day anniversary of Closing
      (“c” and “d” not otherwise applying),

    c) the
      closing bid price for Common Stock on the 180 day anniversary of Closing,
      or

    d) the
      average closing bid price for Common Stock on the five trading days immediately
      prior to the 180 day anniversary of Closing.

    

    A.
      In
      order to exercise the conversion privilege, Lender shall give written notice
      of
      conversion to Maker stating Lender’s election to convert this Note or the
      portion thereof in whole or in part, as specified in said notice. As promptly
      as
      practicable after receipt of the notice, Maker shall issue and shall deliver
      to
      Lender a certificate or certificates for the number of full shares of SECURED
      FINANCIAL NETWORK, INC. Common Stock issuable upon the conversion of this Note
      or portion thereof registered in the name of Lender in accordance with the
      provisions of this Section 5.

     

    B.
      Each
      conversion shall be deemed to have been effected on the date the conversion
      notice shall have been received by Maker, as aforesaid, and Lender shall be
      deemed to have become on said date the holder of record of the shares of Common
      Stock issuable upon such conversion. No fractional shares of Common Stock shall
      be issued upon conversion of this Note. Any amounts so converted shall not
      be
      reborrowed. 

     

    C.
      The
      Lender shall not be entitled to convert, if such conversion would result in
      beneficial ownership by the Lender and its affiliates of more than 9.99% of
      the
      outstanding shares of common stock of the Company on such exercise or conversion
      date, including: 

    

    (i)
      the
      number of shares of common stock beneficially owned by the Lender and its
      affiliates, and 

    (ii)
      the
      number of shares of common stock issuable upon the exercise of the warrant
      and/or options and/or conversion. 

    

    For
      the
      purposes of this provision as set forth in the immediately preceding sentence,
      beneficial ownership shall be determined in accordance with Section 13(d) of
      the
      Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
      Subject to the foregoing, the Lender shall not be limited to aggregate warrant
      and/or option exercises and/or conversion of only 9.99% and aggregate warrant
      and/or option exercises and/or conversion by the Lender may exceed 9.99%. The
      Lender may void the exercise limitation described in this Section upon 61 days
      prior written notice to the Company. The Lender may allocate which of the equity
      of the Company deemed beneficially owned by the Lender shall be included in
      the
      9.99% amount described above and which shall be allocated to the excess above
      9.99%. 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    

    6.
      Security. As security for the repayment of all liabilities arising under this
      Note, the Maker hereby grants to Lender a security interest in and a lien on
      all
      of the Collateral (as that term is defined in the Pledge and Security
      Agreement). The Lender shall have all rights provided to a secured party under
      the Pledge and Security Agreement and under the Uniform Commercial Code of
      the
      State of Illinois. The Lender has the
      right
      to sell or hypothecate such Collateral, to the extent permitted under applicable
      securities laws.
      However, the Lender shall not sell more than 10% of the average daily volume
      in
      any week. Purchaser may not convert for a 90-day period from Closing. The Maker
      shall execute and deliver such documentation as Lender may reasonably request
      to
      evidence and perfect Lender’s security interest granted in this Section
      6.

    

    7.
      Use of
      Proceeds. The proceeds will be used principally for the VPS acquisition, BPS
      to
      bank Interface, Video text interface, Cell phone interface, Working Capital,
      $70,000 to defray current liabilities,
      and
for
      general working capital purposes, but none of the investment proceeds will
      be
      used to repay obligations to any insider.

     

    8.
      Covenants. Maker covenants and agrees that, so long as any indebtedness is
      outstanding hereunder, it will comply with each of the following covenants
      (except in any case where Lender has specifically consented otherwise in
      writing):

     

    A.
      Financial Reporting. Maker shall furnish to Lender a copy of each financial
      report submitted on Form 10-K or 10-Q filed with the Securities and Exchange
      Commission within seven (7) days of such filing.

     

    B.
      Notice
      of Event of Default. Maker shall furnish to Lender notice of the occurrence
      of
      any Event of Default (as defined herein) within five (5) days after it becomes
      known to an executive officer of Maker. 

     

    C.
      Financial Statements. Maker shall furnish to Lender quarterly financial
      statements, including balance sheets and statements of income, for the Company,
      which statements shall be annually audited, as soon as practicable after they
      are prepared for internal use.

     

    D.
      Maker
      shall retain Brass Bulls Corp, 2855 N. University Drive #320, Coral Springs,
      FL
      33065,
      as the
      Company’s consultant/IR/PR, for one year. Brass
      Bulls would also orchestrate press releases, communicate with investors,
      etc.

    

    E.
      Maker
      shall generate a steady flow of accurate and newsworthy events, reasonably
      coordinated with Brass Bulls, Corp.

    

    F.
      Acknowledgement of Investment Objectives. Maker acknowledges that two of the
      major reasons prompting Lender’s advance are the following:

    

    
      	 	
              1.

            	
              Maker’s
                ability to accommodate Dr. Richard Goulding’s ability to complete the
                contemplated transaction with Party Poker.com (for which the Lender
                will
                receive 5% of the incomer derived therefrom),

            

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	 	
              2.

            	
              Maker’s
                ability, through the medical records company to provide contacts
                for
                Physicians Healthcare Management Group,
                Inc.

            

    

    

    Consequently,
      the Lender intends to avail itself of these contacts and facilities. The Maker
      shall work diligently with the Lender and Lender’s associates and portfolio
      companies, as reasonably requested by Lender, from time to time, in all
      synergistically related projects.

    

    G.
      Favored Nations Clause. The
      Company
      will not raise more than $200,000
      for
      up to
      ninety (90) days after the Closing
      without
      written consent of the
      Purchaser.
      If the
      Company raises money at a lower price than the
      Purchaser
      has
      purchased the shares, then the Company will re-price the
      Purchaser’s
      shares
      and warrants to that price. The
      Purchaser
      has the
      right of first refusal of any financing for eighteen (18) months after the
      Closing.
      The
      Purchaser
      will be
      notified prior to any other financing and have an option to respond with
      competitive financing terms upon notification. The
      Company
will
      not
      raise any capital below 10 cents per share. Notwithstanding anything herein
      to
      the contrary, the
      Company
will
      be
      allowed to raise additional capital to complete its $1.5 million contemplated
      fund-raising.

    

    9.
      Event
      of Default. For purposes of this Note, the Maker shall be in default hereunder
      (and an “Event of Default” shall have occurred hereunder) if:

     

    A.
      Maker
      shall fail to pay when due any payment of principal, interest, fees, costs,
      expenses or any other sum payable to Lender hereunder or otherwise;

    

    B.
      Maker
      shall default in the performance of any other agreement or covenant contained
      herein (other than as provided in subparagraph A above), and such default shall
      continue uncured for twenty (20) days after notice thereof to Maker given by
      Lender, or if an Event of Default shall occur under any other Loan
      Document;

     

    C.
      Maker
      becomes insolvent, bankrupt or generally fails to pay its debts as such debts
      become due; is adjudicated insolvent or bankrupt; admits in writing its
      inability to pay its debts; or shall suffer a custodian, receiver or trustee
      for
      it or substantially all of its property to be appointed and if appointed without
      its consent, not be discharged within thirty (30) days; makes an assignment
      for
      the benefit of creditors; or suffers proceedings under any law related to
      bankruptcy, insolvency, liquidation or the reorganization, readjustment or
      the
      release of debtors to be instituted against it and if contested by it not
      dismissed or stayed within ten (10) days; if proceedings under any law related
      to bankruptcy, insolvency, liquidation, or the reorganization, readjustment
      or
      the release of debtors is instituted or commenced by Maker; if any order for
      relief is entered relating to any of the foregoing proceedings; if Maker shall
      call a meeting of its creditors with a view to arranging a composition or
      adjustment of its debts; or if Maker shall by any act or failure to act indicate
      its consent to, approval of or acquiescence in any of the
      foregoing.

    

    10.
      Consequences of Default. Upon the occurrence of an Event of Default and at
      any
      time thereafter, the entire unpaid principal balance of this Note, together
      with
      interest accrued thereon and with all other sums due or owed by Maker hereunder,
      shall become immediately due and payable. In addition, the principal balance
      and
      all past-due interest shall thereafter bear interest at the rate of 18% per
      annum until paid.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    11.
      Registration

     

    11.1. Registration
      Rights.
      The
      Maker hereby grants the following registration rights to Lender.

     

    (i) The
      Maker
      shall prepare and file with the Commission a registration statement under the
      1933 Act registering the Registrable Securities, as defined in Section 11.1(iii)
      hereof, which are the subject the
      September 26, 2006 Pledge and Security Agreement,
      and
this
      Note
      for
      unrestricted public resale by the Lender thereof. 

     

    (ii) If
      the
      Maker at any time proposes to register any of its securities under the 1933
      Act
      for sale to the public, whether for its own account or for the account of other
      security holders or both, except with respect to registration statements on
      Forms S-4, S-8 or another form not available for registering the Registrable
      Securities for sale to the public, provided the Registrable Securities are
      not
      otherwise registered for resale by the Subscribers or Holder pursuant to an
      effective registration statement, each such time it will give at least fifteen
      (15) days’ prior written notice to the record holder of the Registrable
      Securities of its intention so to do. Upon the written request of the Lender,
      received by the Maker within ten (10) days after the giving of any such notice
      by the Maker, to register any of the Registrable Securities not previously
      registered, the Maker will cause such Registrable Securities as to which
      registration shall have been so requested to be included with the securities
      to
      be covered by the registration statement proposed to be filed by the Maker,
      all
      to the extent required to permit the sale or other disposition of the
      Registrable Securities so registered by the holders of such Registrable
      Securities (the “Seller”
or
      “Sellers”).
      In
      the event that any registration pursuant to this Section 11.1(ii) shall be,
      in
      whole or in part, an underwritten public offering of common stock of the Maker,
      the number of shares of Registrable Securities to be included in such an
      underwriting may be reduced by the managing underwriter if and to the extent
      that the Maker and the underwriter shall reasonably be of the opinion that
      such
      inclusion would adversely affect the marketing of the securities to be sold
      by
      the Maker therein; provided, however, that the Maker shall notify the Seller
      in
      writing of any such reduction. Notwithstanding the foregoing provisions, or
      Section 11.4 hereof, the Maker may withdraw or delay or suffer a delay of any
      registration statement referred to in this Section 11.1(ii) without thereby
      incurring any liability to the Seller.

     

    (iii) The
      Maker
      shall file with the Commission a Form SB-2 registration statement (the
“Registration
      Statement”)
      (or
      such other form that it is eligible to use) in order to register the Registrable
      Securities for resale and distribution under the 1933 Act within sixty- (60)
      calendar days after the Closing Date (the
      “Filing
      Date”),
      and
      use its best efforts to cause to be declared effective not
      later
      than one
      hundred and twenty (120) calendar
      days after the Closing Date (the
      “Effective
      Date”).
      The
      Maker will register not less than a number of shares of common stock in the
      aforedescribed registration statement that is equal to 175%
      of
      the Shares issuable upon conversion of all of the “Pledged
      Property” or “Collateral” as defined in the September 26, 2006 Pledge and
      Security Agreement,
      and
      100% of the Warrant Shares issuable upon exercise of the Warrants (collectively
      the “Registrable
      Securities”).
      The
      Registrable Securities shall be reserved and set aside exclusively for the
      benefit of the Lender, and not issued, employed or reserved for anyone other
      than the Lender. The Registration Statement will immediately be amended or
      additional registration statements will be immediately filed by the Maker as
      necessary to register additional shares of Common Stock to allow the public
      resale of all Common Stock included in and issuable by virtue of the Registrable
      Securities. Except with the written consent of the Lender, or as described
      on
      Schedule 11.1 hereto, no securities of the Maker other than the Registrable
      Securities will be included in the Registration Statement. It shall be deemed
      a
      Non-Registration Event [as defined in Section 11.4] if, at any time after the
      date
      the
      Registration Statement is declared effective by the Commission (“Actual
      Effective Date”),
      the
      Maker has registered for unrestricted resale on behalf of the Sellers fewer
      than
125%
      of
      the amount of Common Shares issuable upon full conversion of all sums due
      hereunder and 100% of the Warrant Shares issuable upon exercise of the
      Warrants.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

    11.2. Registration
      Procedures.
      If and
      whenever the Maker is required by the provisions of Section 11.1(i), 11.1(ii),
      or (iii) to effect the registration of any Registrable Securities under the
      1933
      Act, the Maker will, as expeditiously as possible: 

     

    (a) subject
      to the timelines provided in this Agreement, prepare and file with the
      Commission a registration statement required by Section 11, with respect to
      such
      securities and use its commercially reasonable best efforts to cause such
      registration statement to become and remain effective for the period of the
      distribution contemplated thereby (determined as herein provided); promptly
      provide to the Lenders of the Registrable Securities copies of all filings
      and
      Commission letters of comment; notify Lender (by telecopier and/or by e-mail
      addresses provided by Lender) and Law
      Offices of Randall S. Goulding
      (by
      telecopier and/or by email to mbalson@gouldinglaw.com)
      on or
      before 6:00 PM EST on the first business day after the day that the Maker
      receives notice that the Commission has no comments or no further comments
      on
      the Registration Statement; and notify the Lender and their counsel in the
      same
      manner not later than the first Business Day after the Business Day a
      Registration Statement has been declared effective (or sooner than the first
      Business Day upon disclosure of this information to any person who is not an
      officer or director or legal counsel of the Maker). Failure to timely provide
      notice as required by this Section 11.2(a) shall be a material breach of the
      Maker’s obligation and an Event of Default as defined herein and a
      Non-Registration Event as defined in Section 11.4 of this Agreement;

     

    (b) prepare
      and file with the Commission such amendments and supplements to such
      registration statement and the prospectus used in connection therewith as may
      be
      necessary to keep such registration statement effective until such registration
      statement has been effective for a period of two (2) years, and comply with
      the
      provisions of the 1933 Act with respect to the disposition of all of the
      Registrable Securities covered by such registration statement in accordance
      with
      the Sellers’ intended method of disposition set forth in such registration
      statement for such period; 

     

    (c) furnish
      to the Sellers, at the Maker’s expense, such number of copies of the
      registration statement and the prospectus included therein (including each
      preliminary prospectus) as such persons reasonably may request in order to
      facilitate the public sale or their disposition of the securities covered by
      such registration statement or make them electronically available; 

     

    (d) use
      its
commercially
      reasonable efforts to register or qualify the Registrable Securities covered
      by
      such registration statement under the securities or “blue sky” laws of New York
      and such jurisdictions as the Sellers shall request in writing; provided,
      however, that the Maker shall not for any such purpose be required to qualify
      generally to transact business as a foreign entity in any jurisdiction where
      it
      is not so qualified or to consent to general service of process in any such
      jurisdiction; 

     

    (e) if
      applicable, list the Registrable Securities covered by such registration
      statement with any securities exchange on which the Common Stock of the Maker
      is
      then listed; 

     

    (f) notify
      the Lender within two hours of the Maker’s becoming aware that
      a
      prospectus relating thereto is required to be delivered under the 1933 Act,
      of
      the happening of any event of which the Maker has knowledge as a result of
      which
      the prospectus contained in such registration statement, as then in effect,
      includes an untrue statement of a material fact or omits to state a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading in light of the circumstances then existing or which becomes
      subject to a Commission, state or other governmental order suspending the
      effectiveness of the registration statement covering any of the Shares;
      and
       

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (g) provided
      same would not be in violation of the provision of Regulation FD under the
      1934
      Act, make available for inspection by the Sellers, and any attorney, accountant
      or other agent retained by the Seller or underwriter, all publicly available,
      non-confidential financial and other records, pertinent corporate documents
      and
      properties of the Maker, and cause the Maker’s officers, directors and employees
      to supply all publicly available, non-confidential information reasonably
      requested by the seller, attorney, accountant or agent in connection with such
      registration statement. 

     

    11.3. Provision
      of Documents.
      In
      connection with each registration described in this Section 11, each Seller
      will
      furnish to the Maker in writing such information and representation letters
      with
      respect to itself and the proposed distribution by it as reasonably shall be
      necessary in order to assure compliance with federal and applicable state
      securities laws, including, but not limited to, a written confirmation that
      the
      Seller may be deemed to be an “underwriter” under the federal securities laws
      for purposes of such Seller’s resale and distribution of such Seller’s
      Registrable Securities. 

     

    11.4. Non-Registration
      Events.
      The
      Maker and the Lender agree that the Sellers will suffer damages if the
      Registration Statement is not filed by the Filing Date and not declared
      effective by the Commission by the Effective Date, and any registration
      statement required under Section 11.1(i) or 11.1(ii) is not filed within 45
      days
      after Closing and declared effective by the Commission within 90 days after
      Closing, and maintained in the manner and within the time periods contemplated
      by Section 11 hereof, and it would not be feasible to ascertain the extent
      of
      such damages with precision. Accordingly, if (A) the Registration Statement
      is
      not filed on or before the Filing Date, (B) is not declared effective on or
      before the Effective Date, (C) due to the action or inaction of the Maker,
      the
      Registration Statement is not declared effective within 3 business days after
      receipt by the Maker or its attorneys of a written or oral communication from
      the Commission that the Registration Statement will not be reviewed or that
      the
      Commission has no further comments, (D) if the registration statement described
      in Sections 11.1(i) or 11.1(ii) is not filed within 60 days after written
      request of the Lender, or is not declared effective within 120 days after such
      written request, or (E) any registration statement described in Sections
      11.1(i), 11.1(ii) or 11.1(iii) is filed and declared effective but shall
      thereafter cease to be effective without being succeeded within 15 business
      days
      by an effective replacement or amended registration statement or for a period
      of
      time which shall exceed 30 days in the aggregate per year (defined as a period
      of 365 days commencing on the Actual Effective Date (each such event referred
      to
      in clauses (A) through (E) of this Section 11.4 is referred to herein as a
      “Non-Registration
      Event”),
      then
      the Maker shall deliver to the Lender of Registrable Securities, as liquidated
      damages (“Liquidated
      Damages”),
      an
      amount equal to 5% for each 30 days or part thereof of the face amount hereof.
      Liquidated Damages payable in connection with a Non-Registration Event described
      in clause (B) above shall accrue from the 180th
      calendar
      day after the Closing Date. The Maker must pay the Liquidated Damages in cash,
      except that the Lender may elect that such Liquidated Damages to be paid with
      shares of Common Stock with such shares valued at sixty percent (60%) of the
      Conversion Price in effect on each
      thirtieth day or sooner date upon which Liquidated Damages have accrued. The
      Liquidated Damages must be paid within 10 days after the end of each thirty
      (30)
      day period or shorter part thereof for which Liquidated Damages are payable.
      In
      the event a Registration Statement is filed by the Filing Date but is withdrawn
      prior to being declared effective by the Commission, then such Registration
      Statement will be deemed to have not been filed. All
      oral
      or written comments received from the Commission relating to the Registration
      Statement must be adequately responded to within
      30
      days in connection with the initial filing of the Registration Statement and
      within 10 business days in connection with amendments to the Registration
      Statement after receipt of such comments from the Commission.
      Failure
      to
      timely respond to Commission comments is a Non-Registration Event for which
      Liquidated Damages shall accrue and be payable by the Maker to the Lenders
      of
      Registrable Securities at the same rate set forth above. Notwithstanding the
      foregoing, the Maker shall not be liable to the Lender under this Section 11.4
      for any events or delays occurring as a consequence of the acts or omissions
      of
      the Lender contrary to the obligations undertaken by Lender in this Agreement.
      Liquidated Damages will neither accrue nor be payable pursuant to this Section
      11.4 nor will a Non-Registration Event be deemed to have occurred for times
      during which Registrable Securities are transferable by the Lender of
      Registrable Securities pursuant to Rule 144(k) under the 1933
      Act.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    11.5. Expenses.
      All
      expenses incurred by the Maker in complying with Section 11, including, without
      limitation, all registration and filing fees, printing expenses (if required),
      fees and disbursements of counsel and independent public accountants for the
      Maker, fees and expenses (including reasonable counsel fees) incurred in
      connection with complying with state securities or “blue sky” laws, fees of the
      National Association of Securities Dealers, Inc., transfer taxes, and fees
      of
      transfer agents and registrars, are called “Registration
      Expenses.”
All
      underwriting discounts and selling commissions applicable to the sale of
      Registrable Securities are called “Selling
      Expenses.”
The
      Maker will pay all Registration Expenses in connection with the registration
      statement under Section 11. Selling Expenses in connection with each
      registration statement under Section 11 shall be borne by the Seller and may
      be
      apportioned among the Sellers in proportion to the number of shares sold by
      the
      Seller relative to the number of shares sold under such registration statement
      or as all Sellers thereunder may agree.

     

    11.6. Indemnification
      and Contribution.

     

    (a) In
      the
      event of a registration of any Registrable Securities under the 1933 Act
      pursuant to Section 11, the Maker will, to the extent permitted by law,
      indemnify and hold harmless the Seller, each officer of the Seller, each
      director of the Seller, each underwriter of such Registrable Securities
      thereunder and each other person, if any, who controls such Seller or
      underwriter within the meaning of the 1933 Act, against any losses, claims,
      damages or liabilities, joint or several, to which the Seller, or such
      underwriter or controlling person may become subject under the 1933 Act or
      otherwise, insofar as such losses, claims, damages or liabilities (or actions
      in
      respect thereof) arise out of or are based upon any untrue statement or alleged
      untrue statement of any material fact contained in any registration statement
      under which such Registrable Securities was registered under the 1933 Act
      pursuant to Section 11, any preliminary prospectus or final prospectus contained
      therein, or any amendment or supplement thereof, or arise out of or are based
      upon the omission or alleged omission to state therein a material fact required
      to be stated therein or necessary to make the statements therein not misleading
      in light of the circumstances when made, and will, subject to the provisions
      of
      Section 11.6(c), reimburse the Seller, each such underwriter and each such
      controlling person for any legal or other expenses reasonably incurred by them
      in connection with investigating or defending any such loss, claim, damage,
      liability or action; provided,
      however, that the Maker shall not be liable to the Seller to the extent that
      any
      such damages arise out of or are based upon an untrue statement or omission
      made
      in any preliminary prospectus if (i) the Seller failed to send or deliver a
      copy
      of the final prospectus delivered by the Maker to the Seller with or prior
      to
      the delivery of written confirmation of the sale by the Seller to the person
      asserting the claim from which such damages arise, (ii) the final prospectus
      would have corrected such untrue statement or alleged untrue statement or such
      omission or alleged omission, or (iii) to the extent that any such loss, claim,
      damage or liability arises out of or is based upon an untrue statement or
      alleged untrue statement or omission or alleged omission so made in conformity
      with information furnished by any such Seller, or any such controlling person
      in
      writing specifically for use in such registration statement or prospectus.
      

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    (b) In
      the
      event of a registration of any of the Registrable Securities under the 1933
      Act
      pursuant to Section 11, each Seller severally but not jointly will, to the
      extent permitted by law, indemnify and hold harmless the Maker, and each person,
      if any, who controls the Maker within the meaning of the 1933 Act, each officer
      of the Maker who signs the registration statement, each director of the Maker,
      each underwriter and each person who controls any underwriter within the meaning
      of the 1933 Act, against all losses, claims, damages or liabilities, joint
      or
      several, to which the Maker or such officer, director, underwriter or
      controlling person may become subject under the 1933 Act or otherwise, insofar
      as such losses, claims, damages or liabilities (or actions in respect thereof)
      arise out of or are based upon any untrue statement or alleged untrue statement
      of any material fact contained in the registration statement under which such
      Registrable Securities were registered under the 1933 Act pursuant to Section
      11, any preliminary prospectus or final prospectus contained therein, or any
      amendment or supplement thereof, or arise out of or are based upon the omission
      or alleged omission to state therein a material fact required to be stated
      therein or necessary to make the statements therein not misleading, and will
      reimburse the Maker and each such officer, director, underwriter and controlling
      person for any legal or other expenses reasonably incurred by them in connection
      with investigating or defending any such loss, claim, damage, liability or
      action, provided, however, that the Seller will be liable hereunder in any
      such
      case if and only to the extent that any such loss, claim, damage or liability
      arises out of or is based upon an untrue statement or alleged untrue statement
      or omission or alleged omission made in reliance upon and in conformity with
      information pertaining to such Seller, as such, furnished in writing to the
      Maker by such Seller specifically for use in such registration statement or
      prospectus, and provided, further, however, that the liability of the Seller
      hereunder shall be limited to the net proceeds actually received by the Seller
      from the sale of Registrable Securities covered by such registration
      statement.

     

    (c) Promptly
      after receipt by an indemnified party hereunder of notice of the commencement
      of
      any action, such indemnified party shall, if a claim in respect thereof is
      to be
      made against the indemnifying party hereunder, notify the indemnifying party
      in
      writing thereof, but the omission so to notify the indemnifying party shall
      not
      relieve it from any liability which it may have to such indemnified party other
      than under this Section 11.6(c) and shall only relieve it from any liability
      which it may have to such indemnified party under this Section 11.6(c), except
      and only if and to the extent the indemnifying party is prejudiced by such
      omission. In case any such action shall be brought against any indemnified
      party
      and it shall notify the indemnifying party of the commencement thereof, the
      indemnifying party shall be entitled to participate in and, to the extent it
      shall wish, to assume and undertake the defense thereof with counsel
      satisfactory to such indemnified party, and, after notice from the indemnifying
      party to such indemnified party of its election so to assume and undertake
      the
      defense thereof, the indemnifying party shall not be liable to such indemnified
      party under this Section 11.6(c) for any legal expenses subsequently incurred
      by such indemnified party in connection with the defense thereof other than
      reasonable costs of investigation and of liaison with counsel so selected,
      provided, however, that, if the defendants in any such action include both
      the
      indemnified party and the indemnifying party and the indemnified party shall
      have reasonably concluded that there may be reasonable defenses available to
      it
      which are different from or additional to those available to the indemnifying
      party or if the interests of the indemnified party reasonably may be deemed
      to
      conflict with the interests of the indemnifying party, the indemnified parties,
      as a group, shall have the right to select one separate counsel and to assume
      such legal defenses and otherwise to participate in the defense of such action,
      with the reasonable expenses and fees of such separate counsel and other
      expenses related to such participation to be reimbursed by the indemnifying
      party as incurred.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    (d) In
      order
      to provide for just and equitable contribution in the event of joint liability
      under the 1933 Act in any case in which either (i) a Seller, or any controlling
      person of a Seller, makes a claim for indemnification pursuant to this Section
      11.6 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 11.6 provides
      for indemnification in such case, or (ii) contribution under the 1933 Act may
      be
      required on the part of the Seller or controlling person of the Seller in
      circumstances for which indemnification is not provided under this Section
      11.6;
      then, and in each such case, the Maker and the Seller will contribute to the
      aggregate losses, claims, damages or liabilities to which they may be subject
      (after contribution from others) in such proportion so that the Seller is
      responsible only for the portion represented by the percentage that the public
      offering price of its securities offered by the registration statement bears
      to
      the public offering price of all securities offered by such registration
      statement, provided, however, that, in any such case, (y) the Seller will not
      be
      required to contribute any amount in excess of the public offering price of
      all
      such securities sold by it pursuant to such registration statement; and (z)
      no
      person or entity guilty of fraudulent misrepresentation (within the meaning
      of
      Section 11(f) of the 1933 Act) will be entitled to contribution from any person
      or entity who was not guilty of such fraudulent misrepresentation.

     

    11.7. Delivery
      of Unlegended Shares.

     

    (a) Within
      three (3) business days (such third business day being the “Unlegended
      Shares Delivery Date”) after the business day on which the Maker has
      received (i) a notice that Shares or Warrant Shares or any other Common Stock
      held by Lender have been sold pursuant to the Registration Statement or Rule
      144
      under the 1933 Act, (ii) a representation that the prospectus delivery
      requirements, or the requirements of Rule 144, as applicable and if required,
      have been satisfied (and, if requested by the Transfer Agent, the Maker, or
      the
      Maker’s legal counsel, provide reasonably satisfactory evidence of the same),
      (iii) the original share certificates representing the shares of Common Stock
      that have been sold, and (iii) in the case of sales under Rule 144, customary
      representation letters of the Lender and/or Lender’s broker regarding compliance
      with the requirements of Rule 144, the Maker at its expense, (y) shall deliver,
      and shall cause legal counsel selected by the Maker to deliver to its transfer
      agent (with copies to Lender) an appropriate instruction and opinion of such
      counsel, directing the delivery of shares of Common Stock without any legends
      including the legend set forth in Section 4(h) above, reissuable pursuant to
      any
      effective and current Registration Statement described in Section 11 of this
      Agreement or pursuant to Rule 144 under the 1933 Act (the “Unlegended
      Shares”); and (z) cause the transmission of the certificates representing the
      Unlegended Shares together with a legended certificate representing the balance
      of the submitted Shares certificate, if any, to the Lender at the address
      specified in the notice of sale, via express courier, by electronic transfer
      or
      otherwise on or before the Unlegended Shares Delivery Date. 

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     

     

    (b) In
      lieu
      of delivering physical certificates representing the Unlegended Shares, if
      the
      Maker’s transfer agent is participating in the Depository Trust Maker
      (“DTC”)
      Fast
      Automated Securities Transfer program, upon request of Lender, so long as the
      certificates therefor do not bear a legend and the Lender is not obligated
      to
      return such certificate for the placement of a legend thereon, the Maker shall
      cause its transfer agent to electronically transmit the Unlegended Shares by
      crediting the account of Lender’s prime Broker with DTC through its Deposit
      Withdrawal Agent Commission system. Such delivery must be made on or before
      the
      Unlegended Shares Delivery Date.

    

    (c) The
      Maker
      understands that a delay in the delivery of the Unlegended Shares pursuant
      to
      Section 11 hereof later than two business days after the Unlegended Shares
      Delivery Date could result in economic loss to a Lender. As compensation to
      Lender for such loss, the Maker agrees to pay late payment fees (as liquidated
      damages and not as a penalty) to the Lender for late delivery of Unlegended
      Shares in the amount of $100 per business day after the Delivery Date for each
      $10,000 of purchase price of the Unlegended Shares subject to the delivery
      default. If during any 360 day period, the Maker fails to deliver Unlegended
      Shares as required by this Section 11.7 for an aggregate of thirty (30) days,
      then Lender or assignee holding Securities subject to such default may, at
      its
      option, require the Maker to redeem all or any portion of the Shares and Warrant
      Shares subject to such default at a price per share equal to 120% of the
      Purchase Price of such Common Stock and Warrant Shares (“Unlegended
      Redemption Amount”).
      The
      amount of the aforedescribed liquidated damages that have accrued or been paid
      for the twenty day period prior to the receipt by the Lender of the Unlegended
      Redemption Amount shall be credited against the Unlegended Redemption Amount.
      The Maker shall pay any payments incurred under this Section in immediately
      available funds upon demand.

     

    (d) In
      addition to any other rights available to Lender, if the Maker fails to deliver
      to Lender Unlegended Shares as required pursuant to this Agreement, within
      seven
      (7) business days after the Unlegended Shares Delivery Date and the Lender
      purchases (in an open market transaction or otherwise) shares of common stock
      to
      deliver in satisfaction of a sale by Lender of the shares of Common Stock which
      the Lender was entitled to receive from the Maker (a “Buy-In”), then the Maker
      shall pay in cash to the Lender (in addition to any remedies available to or
      elected by the Lender) the amount by which (A) the Lender’s total purchase price
      (including brokerage commissions, if any) for the shares of common stock so
      purchased exceeds (B) the aggregate purchase price of the shares of Common
      Stock
      delivered to the Maker for reissuance as Unlegended Shares together with
      interest thereon at a rate of 15% per annum, accruing until such amount and
      any
      accrued interest thereon is paid in full (which amount shall be paid as
      liquidated damages and not as a penalty). For example, if Lender purchases
      shares of Common Stock having a total purchase price of $11,000 to cover a
      Buy-In with respect to $10,000 of purchase price of shares of Common Stock
      delivered to the Maker for reissuance as Unlegended Shares, the Maker shall
      be
      required to pay the Lender $1,000, plus interest. The Lender shall provide
      the
      Maker written notice indicating the amounts payable to the Lender in respect
      of
      the Buy-In.

     

    (e) In
      the
      event Lender shall request delivery of Unlegended Shares as described in Section
      11.7 and the Maker is required to deliver such Unlegended Shares pursuant to
      Section 11.7, the Maker may not refuse to deliver Unlegended Shares based on
      any
      claim that Lender or any one associated or affiliated with Subscriber has been
      engaged in any violation of law, or for any other reason, unless,
      an injunction or temporary restraining order from a court, on notice,
      restraining and or enjoining delivery of such Unlegended Shares or exercise
      of
      all or part of said Warrant shall have been sought and obtained
      and the
      Maker has posted a surety bond for the benefit of Lender in the amount of 120%
      of the amount of the aggregate purchase price of the Common Stock and Warrant
      Shares which are subject to the injunction or temporary restraining order,
      which
      bond shall remain in effect until the completion of arbitration/litigation
      of
      the dispute and the proceeds of which shall be payable to Lender to the extent
      Lender obtains judgment in Lender’s favor.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    unless,
      an injunction or temporary restraining order from a court, on notice,
      restraining and or enjoining delivery of such Unlegended Shares or exercise
      of
      all or part of said Warrant shall have been sought and obtained
      and the
      Maker has posted a surety bond for the benefit of Lender in the amount of 120%
      of the amount of the aggregate purchase price of the Common Stock and Warrant
      Shares which are subject to the injunction or temporary restraining order,
      which
      bond shall remain in effect until the completion of arbitration/litigation
      of
      the dispute and the proceeds of which shall be payable to Lender to the extent
      Lender obtains judgment in Lender’s favor.

    

    

    

    
      	 	
              12.

            	
              Liquidated
                Damages/Remedies not Exclusive. 

            

    

    

    A. The
      remedies of Lender provided herein or otherwise available to Lender at law
      or in
      equity shall be cumulative and concurrent, and may be pursued singly,
      successively and together at the sole discretion of Lender, and may be exercised
      as often as occasion therefore shall occur; and the failure to exercise any
      such
      right or remedy shall in no event be construed as a waiver or release of the
      same. 

    

    B. Liquidated
      Damages In the event that the Company fails to deliver the shares when due,
      whether by Section 4 or 5, or otherwise, the number of shares otherwise due
      shall increase by 5% for each month or partial month, until the Company does
      deliver such shares. The parties agree that this is a reasonable amount for
      liquidated damages, given the difficulty to determine, in advance, what actual
      damages may lie.

     

    13.
      Notice. All notices required to be given to any of the parties hereunder shall
      be in writing and shall he deemed to have been sufficiently given for all
      purposes when presented personally to such party or sent by certified or
      registered mail, return receipt requested, to such party at its address set
      forth below:

     

    If
      to the
      Maker:  SECURED
      FINANCIAL NETWORK, INC.

    100
      NE
      3rd Ave., Suite 1500, Ft. Lauderdale, FL 33301 

    Phone:
      954.332.3793; Fax: 954.337.2835

    

    If
      to the
      Lender:  Melanie
      S. Altholtz Irrevocable Trust, Adam Altholtz, Trustee 

    1800
      Second St., Suite 758, Sarasota, FL 34236, 

    Phone:
      (941)
      366-7473, ext.203;
      Fax:
(941)
      366-3813

    

    Copy
      to:

    Randall
      S. Goulding, Esq.

    3346
      Commercial, Northbrook IL 60062

    
      	 	 	
              Phone:(847)
                291-7711; Fax:(253) 736-0134

            

    

     

    Such
      notice shall be deemed to be given when received if delivered personally or
      five
      (5) business days after the date mailed. Any notice mailed shall be sent by
      certified or registered mail. Any notice of any change in such address shall
      also be given in the manner set forth above. Whenever the giving of notice
      is
      required, the giving of such notice may be waived in writing by the party
      entitled to receive such notice.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    14.
      Fees.
      The Maker shall pay to Lender, at Closing, a fixed non-accountable allowance
      to
      cover due diligence expenses of $1,500, plus 1.25% of the total amount invested
      pursuant to each Closing. At the election of the Lender, or its designees,
      any
      or all of the foregoing compensation and expense allowances can be taken in
      kind, pursuant to the same terms and conditions as that of an investment herein,
      for a like amount. Of the amounts advanced by the Lender to the Maker, 10%
      will
      be paid directly to Brass Bulls, Corp., on the Maker’s behalf, as a finder’s
      fee. This will be the Maker’s expense and thus reduce the amount otherwise
      payable to the Maker.

    

     

    15.
      Severability. In the event that any provision of this Note is held to be
      invalid, illegal or unenforceable in any respect or to any extent, such
      provision shall nevertheless remain valid, legal and enforceable in all such
      other respects and to such extent as may be permissible. Any such invalidity,
      illegality or unenforceability shall not affect any other provisions of this
      Note, but this Note shall be construed as if such invalid, illegal or
      unenforceable provision had never been contained herein.

     

    16.
      Successors and Assigns. This Note inures to the benefit of the Lender and binds
      the Maker, and its respective successors and assigns, and the words “Lender” and
“Maker” whenever occurring herein shall be deemed and construed to include such
      respective successors and assigns.

     

    17.
      Entire Agreement. This Note embodies the entire understanding and agreement
      between the parties hereto with respect to the subject matter hereof and
      supersedes all prior agreements and understandings, whether express or implied,
      oral and written.

     

    18.
      Modification of Agreement. This Note may not be modified, altered or amended,
      except by an agreement in writing signed by both the Maker and the
      Lender.

     

    19.
      Governing Law. This instrument shall be construed according to and governed
      by
      the laws of the State of Illinois.

     

    20.
      Consent to Jurisdiction and Service of Process. Maker irrevocably appoints
      each
      and every officer of Maker as its attorney upon whom may be served any notice,
      process or pleading in any action or proceeding against it arising out of or
      in
      connection with this Note; and Maker hereby consents that any action or
      proceeding against it be commenced and maintained in any court within the State
      of Illinois by service of process on any such, officer; and Maker agrees that
      the courts of the State of Illinois shall have jurisdiction with respect to
      the
      subject matter hereof and the person of Maker and the collateral securing
      Maker’s obligations hereunder. Notwithstanding the foregoing, Lender, in its
      absolute discretion may also initiate proceedings in the courts of any other
      jurisdiction in which Maker may be found or in which any of its properties
      or
      any such collateral may be located. 

    

    21.
      Mandatory Prepayments. Maker shall apply, as Prepayments to the Loan until
      paid
      in full, all payments or proceeds received by Maker with respect to the
      disposition or sale of any of the Collateral (whether or not such sale or
      disposition is permitted by the terms of the Pledge and Security Agreement).
      

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      
        22.
          Merger,
          License or Any Other Similar Arrangement: The Lender or its designee or
          Brass
          Bulls, Corp. shall also be entitled to a commission of 5% of any and all
          amounts
          received, directly or indirectly, by SECURED FINANCIAL NETWORK, INC. and/or
          its
          principals as a consequence of a merger, license or any other similar
          arrangement or remuneration as a consequence of the efforts of the Lender
          or its
          designee or agent or Brass Bulls, Corp. All references to “SECURED FINANCIAL
          NETWORK, INC.” shall include associates, and any individual, corporation,
          organization, firm or company, of which SECURED FINANCIAL NETWORK, INC.
          is a
          member, employee, principal, party to, or from which such it would otherwise
          benefit financially, directly or indirectly. 

      

    

    

    

    

    

    IN
      WITNESS WHEREOF, Maker has duly executed this Note as of the date first written
      above.

     

    
      	 	 	
              MAKER

            

    

     

    
      	 	 	
              SECURED
                FINANCIAL NETWORK, INC. 

            

    

    

    
      	 	 	
              By:
                /s/ Jeffrey L. Schultz:

            

    

    

    

    
      	 	 	
              -------------------------------------

            

    

    
      	 	 	
              Jeffrey
                L. Schultz

            

    

    
      	 	 	
              CEO

            

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    PLEDGE
      AND SECURITY AGREEMENT

    

    This
      PLEDGE AND SECURITY AGREEMENT entered into at Northbrook, IL on September 26,
      2006, is by and between SECURED FINANCIAL NETWORK, INC., a Nevada corporation
      (the “Borrower”) and Melanie S. Altholtz Irrevocable Trust, Adam Altholtz,
      Trustee, (“Lender” or “Secured Party”), and is executed pursuant to the Secured
      Convertible Note dated of even date herewith (as amended, supplemented or
      otherwise modified from time to time, the “Secured Convertible Note”), between
      Borrower and Lender.

    

    RECITALS

     

    WHEREAS,
      in conjunction with the sale of certain shares of Secured Financial Network,
      Inc. as set forth in the Share Purchase Agreement, the Borrower has requested
      that the Lender provide a loan of $200,000, to the Borrower (the “Loan”);
      and

     

    WHEREAS,
      the Lender has agreed to make such Loan subject to the terms of the Secured
      Convertible Note; and

     

    WHEREAS,
      the Borrower and Lender, will receive direct and indirect benefits from the
      Stock Purchase Agreement and the Loan under the Secured Convertible Note;
      and

     

    WHEREAS,
      it is a condition precedent to the obligations of the Lender to make the Loan
      under the Secured Convertible Note that the Borrower and Lender execute and
      deliver this Agreement;

     

    NOW,
      THEREFORE, in consideration of the promises herein and to induce the Lender
      to
      enter into the Secured Convertible Note and to make the Loan thereunder, and
      for
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the parties hereto agree as follows:

    

    ARTICLE
      I

    DEFINITIONS;
      TERMS GENERALLY

     

    Section
      1.01 Definitions. As used herein:

     

    (a)
      terms
      defined above have the meanings given such terms above;

     

    (b)
      unless otherwise defined herein, terms defined in the Secured Convertible Note
      and used herein have the meanings given to them in the Secured Convertible
      Note;

     

    (c)
      unless otherwise defined herein, terms defined in the Uniform Commercial Code
      (as defined herein) and used herein have the same meanings herein as specified
      therein; provided, however, that if a term is defined in Article 9 of the
      Uniform Commercial Code differently than in another Article of the Uniform
      Commercial Code, then such term has the meaning specified in Article 9;
      and

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (d)
      the
      following terms have the following meanings:

     

    “Agreement”
      means this Pledge and Security Agreement, as the same may be amended,
      supplemented or otherwise modified from time to time.

     

    “Collateral”
      shall mean “Pledged Property”.

     

    “Obligations”
      means the collective reference to the payment and performance when due of all
      indebtedness, liabilities, obligations and undertakings of the Borrower
      (including, without limitation, all Indebtedness) of every kind or description
      arising out of or outstanding under, advanced or issued pursuant to, or
      evidenced by, the Loan Documents.

     

    “Pledged
      Property” shall mean 333,333 Free Trading Shares 1,666,667 Restricted Shares (to
      be registered with an SB-2 filing) of the Borrower’s Common Stock. The amount of
      Pledged Property or Collateral shall increase, the Stock to be delivered within
      7 days thereof, should the Applicable Fair Market Value for Common Stock be
      less
      than $.166 per share based on the following applicable times/calculations.
      Any
      Collateral increase shall be in Freely tradable shares of the Company. The
      “Applicable Fair Market Value” shall be the lesser of the following times
      60%:

    

    a) $.10,
      or

    b) the
      closing bid price for Common Stock on the trading day one day prior to the
      date
      on which the Purchaser issues a Notice of Conversion, or 

    c) the
      average closing bid price for Common Stock on the five trading days immediately
      prior to the date on which the Purchaser issues a Notice of Conversion,
      or

    if
      registration statement is not effective on the 180 day anniversary of Closing
      (“d” and “e” not otherwise applying),

    d) the
      closing bid price for Common Stock on the trading day one day prior to Closing,
      or

    e) the
      average closing bid price for Common Stock on the five trading days immediately
      prior to Closing. 

    

    provided,
      however, the Collateral shall not exceed such number of shares, warrants and
      options, if such exercise or conversion or issuance would result in beneficial
      ownership by the Lender and its affiliates of more than 9.99% of the outstanding
      shares of common stock of the Borrower on such exercise or conversion or
      issuance date, including: 

    

    (i)
      the
      number of shares of common stock beneficially owned by the Lender and its
      affiliates, and 

    (ii)
      the
      number of shares of common stock issuable upon the exercise of the warrant
      and/or options and/or conversion. 

    

    For
      the
      purposes of this provision as set forth in the immediately preceding sentence,
      beneficial ownership shall be determined in accordance with Section 13(d) of
      the
      Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
      Subject to the foregoing, the Lender shall not be limited to aggregate warrant
      and/or option exercises and/or conversion of only 9.99% and aggregate warrant
      and/or option exercises and/or conversion by the Lender may exceed 9.99%. The
      Lender may void the exercise limitation described in this Section upon 61 days
      prior written notice to the Company. The Lender may allocate which of the equity
      of the Company deemed beneficially owned by the Lender shall be included in
      the
      9.99% amount described above and which shall be allocated to the excess above
      9.99%.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    “Loan
      Documents” means this Agreement, the Secured Convertible Note, the Warrant
      Agreement and any other document made, delivered or given in connection with
      any
      of the foregoing. 

     

    “Warrant
      Agreement” means that certain Warrant Agreement from Borrower to the Lender in
      the form attached hereto as Exhibit “C”, as the same may be amended, modified or
      supplemented from time to time.

     

    “Uniform
      Commercial Code” means the Uniform Commercial Code as in effect in the State of
      Illinois.

     

    Section
      1.02 Terms Generally; Rules of Construction. The definitions of terms herein
      shall apply equally to the singular and plural forms of the terms defined.
      Whenever the context may require, any pronoun shall include the corresponding
      masculine, feminine and neuter forms.

    

    ARTICLE
      II

    GRANT
      OF
      SECURITY INTEREST

     

    Section
      2.01 Grant of Security Interest. As collateral security for the prompt and
      complete payment and performance when due (whether at the stated maturity,
      by
      acceleration or otherwise) of the Obligations, the Borrower hereby pledges
      to
      the Secured Party, and hereby grants to the Secured Party, a first priority
      continuing security interest in, lien on and right of setoff against, all of
      the
      Pledged Property and all proceeds thereof (the “Collateral”).

     

    Section
      2.02 Authorization to File Financing Statements. The Lender and Borrower hereby
      irrevocably authorize the Secured Party at any time and from time to time to
      file in any filing office in any relevant jurisdiction any initial financing
      statements and amendments thereto indicating the Collateral in such form as
      may
      be required by the Secured Party. The Borrower agrees to furnish any information
      reasonably requested by the Secured Party for such purposes promptly upon the
      Secured Party’s request. The Borrower also ratifies its authorization for the
      Secured Party to have filed in any relevant jurisdiction any like initial
      financing statements or amendments thereto if filed prior to the date hereof.
      In
      addition, to perfect security interests by Secured Party’s possession, Borrower
      will deliver to Secured Party the Collateral, with a separate endorsement signed
      in blank, and a certificate representing the Borrower Stock, together with
      stock
      powers endorsed in blank sufficient to effect a transfer of such stock. Upon
      payment in full of the Obligations, Secured Party shall return possession of
      all
      Collateral to Borrower and release all filed and recorded financing statements
      or other evidence of the security interests arising hereunder.

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES

     

    The
      Borrower hereby represents and warrants to Secured Party, as of the date hereof
      and at all times during the terms of this Agreement, as follows:

     

    Section
      3.01 Organization. The Borrower is duly organized, validly existing and in
      good
      standing under the laws of Nevada, has all requisite power and authority, and
      has all material governmental licenses, authorizations, consents and approvals
      necessary, to own its assets and to carry on its business as now
      conducted.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Section
      3.02 Authority; Enforceability. The execution and delivery by the Borrower
      of
      this Agreement and the other Loan Documents and the performance of its
      obligations hereunder and thereunder are within the powers of the Borrower
      and
      have been duly authorized by all necessary corporate Board approval, and do
      not
      contravene any law, regulation, or order applicable to the Borrower or any
      of
      its properties or assets or any contractual restriction which may, individually
      or in the aggregate, have a material adverse effect on the business, prospects
      or condition (financial or otherwise) of the Borrower.

     

    Section
      3.03 Perfected First Priority Liens. The security interests granted pursuant
      to
      this Agreement upon the filing of a financing statement describing the
      Collateral with the Secretary of State of Nevada and delivery of possession
      of
      the Collateral, shall constitute valid perfected security interests of the
      Collateral in favor of the Secured Party as collateral security for the
      Obligations, enforceable in accordance with the terms hereof against all
      creditors of the Borrower and any Persons purporting to purchase any Collateral
      from the Borrower and there are no prior or other Liens on the Collateral in
      existence on the date hereof.

     

    Section
      3.04 Solvency. The Borrower is not insolvent as of the date hereof and will
      not
      be rendered insolvent as a result of this Agreement.

    

    ARTICLE
      IV

    AFFIRMATIVE
      COVENANTS

    

      The
      Borrower hereby unconditionally covenants and agrees with the Secured Party,
      until the entire Obligation shall have been paid in full as
      follows:

     

    Section
      4.01 Maintenance of Perfected Security Interest; Further
      Documentation.

     

    (a)
      The
      Borrower shall maintain the security interest and lien created by this Agreement
      as a perfected security interest and lien having at least the priority described
      in Section 3.03; and

     

    (b)
      The
      Borrower shall promptly give notice to the Secured Party of, and shall defend
      against, any suit, action, proceeding or lien that involves the Collateral
      or
      that could adversely affect the security interest and lien granted by it
      hereunder, and the Borrower shall defend the security interest and lien created
      by this Agreement against the claims and demands of all Persons whomsoever;
      and

    

    (c)
      The
      Lender and Borrower will furnish to the Secured Party from time to time
      statements and schedules further identifying and describing the Collateral
      and
      such other reports in connection with the Collateral as the Secured Party may
      reasonably request.

    

    (d)
      The
      Lender and Borrower shall timely perform and comply with all provisions of
      the
      Loan Documents. 

    

    ARTICLE
      V

    NEGATIVE
      COVENANTS

     

    Section
      5.01 Restrictions on Sales and other Dispositions. The Borrower shall not sell,
      assign, convey, pledge, encumber, transfer, redeem, exchange, substitute,
      replace or otherwise dispose of or abandon all or any part of the Collateral
      without the prior written consent of the Secured Party.

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Section
      5.02 Impairment of Security Interest. The Borrower will not take or fail to
      take
      any action which would in any manner impair the enforceability or priority
      of
      the Secured Party’s security interest in any Collateral, impair the Collateral
      or the rights, remedies, powers and privileges conferred on the Secured Party
      pursuant to this Agreement or by operation of law or otherwise.

    

    ARTICLE
      VI

    WARRANTS,
      REGISTRATION

     

    Section
      6.01 Warrants. Borrower agrees to have issued in Lender’s name or its designee,
      warrants to purchase Borrower Common Stock in accordance with the Warrant
      Agreement.

     

    Section
      6.02 Registration. Lender shall have full registration rights on the Warrant
      shares exercised.

    

    ARTICLE
      VII

    EVENT
      OF
      DEFAULT

    

    Section
      7.01 Event of Default. One or more of the following events or circumstances
      shall constitute an “Event of Default” hereunder:

     

    A.
      An
“Event of Default” under the Secured Convertible Note or any other Loan Document
      shall occur and be continuing; or

     

    B.
      The
      Borrower shall fail to pay any amount hereunder or under any other Loan Document
      to which it is a party when the same shall become due and payable.

    

    ARTICLE
      VIII

    RIGHTS
      AND REMEDIES

     

    Section
      8.01 Rights and Remedies. Upon the occurrence and during the continuance of
      an
      Event of Default, the Secured Party may exercise, in addition to all other
      rights and remedies granted to it in the Secured Documents and in any other
      instrument or agreement securing, evidencing or relating to the Obligations,
      all
      rights and remedies of a secured party under the Uniform Commercial Code or
      any
      other applicable law or otherwise available at law or equity. All proceeds
      of
      sale of any Collateral shall be applied to the Obligations, and Borrower shall
      be entitled to any surplus proceeds or Collateral remaining after the
      Obligations are paid in full. 

    

    ARTICLE
      IX

    MISCELLANEOUS

     

    Section
      9.01 Notices. All notices and other communications provided for herein shall
      be
      given in the manner and subject to the terms of Section 12 of the Secured
      Convertible Note (including provisions regarding a change of address or telecopy
      number of a party). 

     

    Section
      9.02 Amendments. No amendment, supplement or modification of this Agreement,
      and
      no waiver of any provision of this Agreement or consent to any departure by
      the
      Borrower therefrom, shall in any event be effective unless the same has been
      agreed to in writing by the parties.

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Section
      9.03 Successors and Assigns. The provisions of this Agreement shall be binding
      upon and inure to the benefit of the parties hereto and their respective
      successors and assigns permitted hereby, except that any assignment must be
      approved in writing by the other party. Such written consent shall not be
      unreasonably withheld by either party.

     

    Section
      9.04 Governing Law; Consent to Jurisdiction.

     

    (a)
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of Illinois.

    

    (b)
      Any
      legal action or proceeding with respect to this Agreement or any other loan
      document shall be brought in the Courts of the State of Illinois.

     

    Section
      9.05 Entire Agreement. This written Agreement and the other Loan Documents
      represent the entire agreement among the parties as to the subject matter
      hereof.

     

    IN
      WITNESS WHEREOF, intending to be legally bound, the Borrower has caused this
      Agreement to be duly executed as of the date first above written.

     

    SECURED
      FINANCIAL NETWORK, INC.

     

    By:
      /s/
      Jeffrey L. Schultz

    -------------------------------------

    Jeffrey
      L. Schultz 

    Title:
      CEO

     

    Accepted:

     

    Melanie
      S. Altholtz Irrevocable Trust, Adam Altholtz, Trustee 

    1800
      Second St., Suite 758, Sarasota, FL 34236, 

    Phone:
      (941)
      366-7473, ext.203;
      Fax:
(941)
      366-3813

    

    Copy
      to:

    Randall
      S. Goulding, Esq.

    

    3346
      Commercial

    Northbrook
      IL 60062

    Phone:(847)
      291-7711; Fax:(847) 291-7733

     

    
      	 	 	 	 	 	
              By:
                /s/ Randall S. Goulding

            

    

    
      	 	 	 	 	 	
              -------------------------------------

            

    

    
      	 	 	 	 	 	
              Name:
                Randall S. Goulding

            

    

    
      	 	 	 	 	 	
              Title:
                Manager

            

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    THE
      WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES TO BE ISSUED UPON
      ITS
      EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
      1933
      (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”)
      AND SHALL NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR TRANSFER HAS BEEN
      REGISTERED UNDER THE SECURITIES ACT AND STATE ACTS, OR AN EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS IS AVAILABLE, THE AVAILABILITY OF WHICH MUST BE
      ESTABLISHED TO THE SATISFACTION OF THE COMPANY. 

    

    CLASS
      A STOCK PURCHASE WARRANT

    

    Warrant
      No. -----  Number
      of Shares: 

    

    SECURED
      FINANCIAL NETWORK, INC.

    COMMON
      STOCK, NO PAR VALUE PER SHARE

    VOID
      AFTER 5:00 P.M. EASTERN STANDARD TIME

    ON
      DECEMBER 31, 2011

    

    This
      Warrant is issued to Melanie S. Altholtz Irrevocable Trust, Adam Altholtz,
      Trustee, having its principal address at 1800 Second St., Suite 758, Sarasota,
      FL 34236 (“Holder”) by SECURED FINANCIAL NETWORK, INC., a Nevada corporation
      (hereinafter with its successors called the “Company”). 

    

    For
      value
      received and subject to the terms and conditions hereinafter set out, Holder
      is
      entitled to purchase from the Company at a purchase price of 300% of the
      Conversion Price (as defined in the Secured Convertible Note) per share, fully
      paid and non-assessable shares of common stock, no par value per share (“Common
      Shares”) of the Company. Such purchase price per Common Share, adjusted from
      time to time as provided herein, is referred to as the “Purchase Price.”
Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Secured Convertible Note (the “Secured Convertible
      Note”), dated September 26, 2006, among the Company and the purchasers signatory
      thereto. The number of Common Shares issuable to Holder upon full exercise
      shall
      be equal to 30% of the dollar amount advanced to the Company by Holder pursuant
      to the Secured Convertible Note, divided by the Conversion Price. 

    

    The
      Holder may exercise this Warrant, in whole or in part, upon surrender of this
      Warrant, with the exercise form annexed hereto duly executed, at the office
      of
      the Company, or such other office as the Company shall notify the Holder in
      writing, together with a certified or bank cashier’s check payable to the order
      of the Company in the amount of the Purchase Price times the number of Common
      Shares being purchased.

    

    1. The
      person or persons in whose name or names any certificate representing Common
      Shares is issued hereunder shall be deemed to have become the holder of record
      of the Common Shares represented thereby as of the close of business on the
      date
      on which this Warrant is exercised with respect to such shares, whether or
      not
      the transfer books of the Company shall be closed. Until such time as this
      Warrant is exercised or terminates, the Purchase Price payable and the number
      and character of securities issuable upon exercise of this Warrant are subject
      to adjustment as hereinafter provided.

    

    2. Unless
      previously exercised, this Warrant shall expire at 5:00 p.m. Eastern Standard
      Time, on December 31, 2011 and
      shall
      be void thereafter or can be extended at the Company’s discretion (“Expiration
      Date”). 

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    3. The
      Company covenants that it will at all times reserve and keep available a number
      of its authorized Common Shares, free from all preemptive rights, which will
      be
      sufficient to permit the exercise of this Warrant. The Company further covenants
      that such shares as may be issued pursuant to the exercise of this Warrant
      will,
      upon issuance, be duly and validly issued, fully paid and non-assessable and
      free from all taxes, liens, and charges.

    

    4. If
      the
      Company subdivides its outstanding Common Shares, by split-up or otherwise,
      or
      combines its outstanding Common Shares, the Purchase Price then applicable
      to
      shares covered by this Warrant shall forthwith be proportionately decreased
      in
      the case of a subdivision, or proportionately increased in the case of a
      combination.

    

    5. If
      (a)
      the Company reorganizes its capital, reclassifies its capital stock,
      consolidates or merges with or into another corporation (but only if the Company
      is not the surviving corporation and
      no
      longer
      has more than a single shareholder) or sells, transfers or otherwise disposes
      of
      all or substantially all its property, assets, or business to another
      corporation, and (b) pursuant to the terms of such reorganization,
      reclassification, merger, consolidation, or disposition of assets, shares of
      common stock of the successor or acquiring corporation, or any cash, shares
      of
      stock, or other securities or property of any nature whatsoever (including
      warrants or other subscription or purchase rights) in addition to or in lieu
      of
      common stock of the successor or acquiring corporation (“Other Property”), are
      to be received by or distributed to the holders of Common Shares, then (c)
      Holder shall have the right thereafter to receive, upon exercise of this
      Warrant, the same number of shares of common stock of the successor or acquiring
      corporation and Other Property receivable upon such reorganization,
      reclassification, merger, consolidation, or disposition of assets as a holder
      of
      the number of Common Shares for which this Warrant is exercisable immediately
      prior to such event. At the time of such reorganization, reclassification,
      merger, consolidation or disposition of assets, the successor or acquiring
      corporation shall expressly assume the due and punctual observance and
      performance of each and every covenant and condition of this Warrant to be
      performed and observed by the Company and all the obligations and liabilities
      hereunder, subject to such modifications as may be deemed appropriate (as
      determined by resolution of the Board of Directors of the Company) in order
      to
      adjust the number of shares of the common stock of the successor or acquiring
      corporation for which this Warrant is exercisable. For purposes of this section,
      “common stock of the successor or acquiring corporation” shall include stock of
      such corporation of any class which is not preferred as to dividends or assets
      over any other class of stock of such corporation and which is not subject
      to
      redemption and shall also include any evidences of indebtedness, shares of
      stock, or other securities which are convertible into or exchangeable for any
      such stock, either immediately or upon the arrival of a specified date or the
      happening of a specified event and any warrants or other rights to subscribe
      for
      or purchase any such stock. The foregoing provisions of this section shall
      similarly apply to successive reorganizations, reclassifications, mergers,
      consolidations, or disposition of assets.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    6. If
      a
      voluntary or involuntary dissolution, liquidation or winding up of the Company
      (other than in connection with a merger or consolidation of the Company) is
      at
      any time proposed during the term of this Warrant, the Company shall give
      written notice to the Holder at least thirty days prior to the record date
      of
      the proposed transaction. The notice shall contain: (1) the date on which the
      transaction is to take place; (2) the record date (which must be at least thirty
      days after the giving of the notice) as of which holders of the Common Shares
      entitled to receive distributions as a result of the transaction shall be
      determined; (3) a brief description of the transaction; (4) a brief description
      of the distributions, if any, to be made to holders of the Common Shares as
      a
      result of the transaction; and (5) an estimate of the fair market value of
      the
      distributions. On the date of the transaction, if it actually occurs, this
      Warrant and all rights existing under this Warrant shall terminate.

    

    7. In
      no
      event shall any fractional Common Share of the Company be issued upon any
      exercise of this Warrant. If, upon exercise of this Warrant as an entirety,
      the
      Holder would, except as provided in this Section 7, be entitled to receive
      a
      fractional Common Share, then the Company shall issue the next higher number
      of
      full Common Shares, issuing a full share with respect to such fractional share.
      If this Warrant is exercised at one time for less than the maximum number of
      Common Shares purchasable upon the exercise hereof, the Company shall issue
      to
      the Holder a new warrant of like tenor and date representing the number of
      Common Shares equal to the difference between the number of shares purchasable
      upon full exercise of this Warrant and the number of shares that were purchased
      upon the exercise of this Warrant.

    

    8. Whenever
      the Purchase Price is adjusted, as herein provided, the Company shall promptly
      deliver to the Holder a certificate setting forth the Purchase Price after
      such
      adjustment and setting forth a brief statement of the facts requiring such
      adjustment.

    

    9. If
      at any
      time prior to the expiration or exercise of this Warrant, the Company shall
      pay
      any dividend or make any distribution upon its Common Shares or shall make
      any
      subdivision or combination of, or other change in its Common Shares, the Company
      shall cause notice thereof to be mailed, first class, postage prepaid, to Holder
      at least thirty full business days prior to the record date set for determining
      the holders of Common Shares who shall participate in such dividend,
      distribution, subdivision, combination or other change. Such notice shall also
      specify the record date as of which holders of Common Shares who shall
      participate in such dividend or distribution is to be determined. Failure to
      give such notice, or any defect therein, shall not affect the legality or
      validity of any dividend or distribution.

    

    10. The
      Company will maintain a register containing the names and addresses of the
      Holder and any assignees of this Warrant. Holder may change its address as
      shown
      on the warrant register by written notice to the Company requesting such change.
      Any notice or written communication required or permitted to be given to the
      Holder may be delivered by confirmed facsimile or telecopy or by a recognized
      overnight courier, addressed to Holder at the address shown on the warrant
      register.

    

    11.
       This
      Warrant has not been registered under the Securities Act of 1933, as amended
      (the “Securities Act”), or any state securities laws (“State Acts”) or
      regulations in reliance upon exemptions under the Securities Act, and exemptions
      under the State Acts. Subject to compliance with the Securities Act and State
      Acts, this Warrant and all rights hereunder are transferable in whole or in
      part, at the office of the Company at which this Warrant is exercisable, upon
      surrender of this Warrant together with the assignment hereof properly endorsed.
      The Common Stock into which the Warrants are exercisable will have piggyback
      registration rights, and the Warrants will be transferable. If within 270 days
      of Closing, the Company does not register the shares of Common Stock into which
      the Warrants are exercisable, or the shares of Common Stock into which the
      Warrants are exercisable are not otherwise freely tradable, then, at Holder’s
      option, the Warrant exercise may be cashless. 

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    12.
       In
      case
      this Warrant shall be mutilated, lost, stolen, or destroyed, the Company may
      issue a new warrant of like tenor and denomination and deliver the same (a)
      in
      exchange and substitution for and upon surrender and cancellation of any
      mutilated Warrant, or (b) in lieu of any Warrant lost, stolen, or destroyed,
      upon receipt of evidence satisfactory to the Company of the loss, theft or
      destruction of such Warrant (including a reasonably detailed affidavit with
      respect to the circumstances of any loss, theft, or destruction) and of
      indemnity with sufficient surety satisfactory to the Company.

    

    13. Unless
      a
      current registration statement under the Securities Act, shall be in effect
      with
      respect to the securities to be issued upon exercise of this Warrant, the
      Holder, by accepting this Warrant, covenants and agrees that, at the time of
      exercise hereof, and at the time of any proposed transfer of securities acquired
      upon exercise hereof, the Company may require Holder to make such
      representations, and may place such legends on certificates representing the
      Common Shares issuable upon exercise of this Warrant, as may be reasonably
      required in the opinion of counsel to the Company to permit such Common Shares
      to be issued without such registration.

    

    14. 
      This
      Warrant does not entitle Holder to any of the rights of a stockholder of the
      Company.

    

    15. Nothing
      expressed in this Agreement and nothing that may be implied from any of the
      provisions hereof is intended, or shall be construed, to confer upon, or give
      to, any person or corporation other than the parties to this Agreement any
      covenant, condition, stipulation, promise, or agreement contained herein, and
      all covenants, conditions, stipulations, promises and agreements contained
      herein shall be for the sole and exclusive benefit of the parties hereto and
      their respective successors and assigns.

    

    16. The
      provisions and terms of this Warrant shall be construed in accordance with
      the
      laws of the State of Illinois. 

    

    IN
      WITNESS WHEREOF, this Warrant has been duly executed by the Company as of
      September 26, 2006.

    

    

    

    SECURED
      FINANCIAL NETWORK, INC.

    

    

    

    

    

    By:
      _______________________________

          

      

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    FORM
      OF EXERCISE

    

    

    Date:
      ____________________

    

    

    To: SECURED
      FINANCIAL NETWORK, INC.

    100
      NE
      3rd Ave., Suite 1500,

    Ft.
      Lauderdale, FL 33301

    Telecopy
      No. 954.337.2835

    

    

    The
      undersigned hereby subscribes for _______ shares of common stock of SECURED
      FINANCIAL NETWORK, INC. covered by this Warrant and hereby delivers $___________
      in full payment of the purchase price thereof. The certificate(s) for such
      shares should be issued in the name of the undersigned or as otherwise indicated
      below:

    

    

    ____________________________

    Signature:

    

    

    ____________________________

    Printed
      Name

    

    

    

    ____________________________

    Name
      for
      Registration, if different

    

    

    ____________________________

    Street
      Address

    

    ____________________________

    City,
      State and Zip Code

    

    ____________________________

    Social
      Security Number

    

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    ASSIGNMENT

    

    

    For
      Value
      Received, the undersigned hereby sells, assigns and transfers unto the
      assignee(s) set forth below the within Warrant certificate, together with all
      right, title and interest therein, and hereby irrevocably constitutes and
      appoints ___________________________________ attorney, to transfer the said
      Warrant on the books of the within-named Company with respect to the number
      of
      Common Shares set forth below, with full power of substitution in the
      premises.

    

    Social
      Security or

    other
      Identifying

    Name(s)
      of   Number(s)
      of      No.
      of

    Assignee(s)   Assignee(s)  Address   Shares

    

    

    

    

    

    

    

    Dated:
      ______________________________

    

    

    

    _________________________________________

    Signature

    

    NOTICE:
      THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
      THE FACE OF THE WARRANT IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT,
      OR ANY CHANGE WHATSOEVER.

    

    

    _________________________________________

    Print
      Name and Title

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