Document:

Unassociated Document

    Exhibit
      4.7

    

    SENIOR
      SECURED EXCHANGEABLE NOTE

    

    NEITHER
      THE ISSUANCE AND SALE OF THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE
      IS
      EXCHANGEABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR
      SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (I) AN EFFECTIVE
      REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933,
      AS
      AMENDED, OR (II) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO
      THE
      COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.  NOTWITHSTANDING
      THE FOREGOING, THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THIS NOTE.  ANY
      TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE,
      INCLUDING SECTIONS 3(c)(ii) AND 18(a) HEREOF.  THE PRINCIPAL AMOUNT
      REPRESENTED BY THIS NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON EXCHANGE
      HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO
      SECTION 3(c)(ii) OF THIS NOTE.

    

    MOHEN,
      INC.

    SENIOR
      SECURED EXCHANGEABLE NOTE

    

    
      	
               

            	
               

            
	
              Issuance
                Date:  August 7, 2007

            	
              Original
                Principal Amount: U.S. $5,000,000

            

    

    

    FOR
      VALUE
      RECEIVED, Mohen, Inc. d/b/a Spiral Frog, a Delaware corporation (the
      "Company"), hereby promises to pay to DISTRESSED HIGH YIELD
      TRADING OPPORTUNITIES FUND, LTD. or registered assigns
      ("Holder") the amount set out above as the Original Principal
      Amount (as reduced pursuant to the terms hereof pursuant to redemption, exchange
      or otherwise, the "Principal") when due, whether upon the
      Maturity Date (as defined below), acceleration, redemption or otherwise (in
      each
      case in accordance with the terms hereof) and to pay interest
      ("Interest") on any outstanding Principal at a rate per annum
      equal to the Interest Rate (as defined below), from the date set out above
      as
      the Issuance Date (the "Issuance Date") until the same becomes
      due and payable, whether upon an Interest Date (as defined below), or the
      Maturity Date, acceleration, exchange, redemption or otherwise (in each case
      in
      accordance with the terms hereof).  This Senior Secured Exchangeable Note
      (including all Senior Secured Exchangeable Notes issued in exchange, transfer
      or
      replacement hereof, this "Note") is one of an issue of Senior
      Secured Exchangeable Notes issued pursuant to the Purchase Agreement (as defined
      below) (collectively, the "Notes" and such other Senior Secured
      Exchangeable Notes, the "Other Notes").  Certain
      capitalized terms are defined in Section 28.

    

    1.           PAYMENTS
      OF PRINCIPAL; MATURITY.   The "Maturity Date" shall be
      August 7, 2012, as may be extended at the option of the Holder (i) in the event
      that, and for so long as, an Event of Default (as defined in Section 4(a))
      shall
      have occurred and be continuing or any event shall have occurred and be
      continuing which with the passage of time and the failure to cure would result
      in an Event of Default and (ii) through the date that is ten (10) days after
      the
      consummation of a Change of Control in the event that a Change of Control is
      publicly announced or a Change of Control Notice (as defined in Section 5(b))
      is
      delivered prior to the Maturity Date.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.           INTEREST;
      INTEREST RATE.

    

    (a)           Interest
      on any outstanding Principal payable pursuant to this Note shall commence
      accruing on the Issuance Date and shall be computed on the basis of a 360-day
      year, compounded monthly and actual days elapsed and shall be payable in arrears
      for each Calendar Month during the period beginning on the Issuance Date and
      ending on, and including, the Maturity Date (each, an "Interest
      Date") with the first Interest Date being October 1, 2007.
 Interest shall be payable on each Interest Date, to the record holder
      of
      this Note on the applicable Interest Date.

    

    (b)           From
      and after the occurrence of an Event of Default, the Interest Rate shall be
      increased to eighteen percent (18%).  In the event that such Event of
      Default is subsequently cured, the adjustment referred to in the preceding
      sentence shall cease to be effective as of the date of such cure; provided
      that
      the Interest as calculated at such increased rate during the continuance of
      such
      Event of Default shall continue to apply to the extent relating to the days
      after the occurrence of such Event of Default through and including the date
      of
      cure of such Event of Default.  

    

    3.           EXCHANGE
      OF NOTES.  This Note shall be exchangeable into shares of Class A
      Common Stock of the Company, par value $.001 per share (the "Common
      Stock"), on the terms and conditions set forth in this Section
      3.

    

    (a)           Exchange
      Right.  At any time or times on or after the date that the Common Stock
      is registered pursuant to Section 12(b) or 12(g) of the Securities Exchange
      Act
      of 1934, the Holder shall be entitled to exchange any portion of the outstanding
      and unpaid Exchange Amount (as defined below) into fully paid and nonassessable
      shares of Common Stock in accordance with Section 3(c), at the Exchange Rate
      (as
      defined below).  The Company shall not issue any fraction of a share
      of Common Stock upon any exchange.  If the issuance would result in the
      issuance of a fraction of a share of Common Stock, the Company shall round
      such
      fraction of a share of Common Stock up to the nearest whole share.  The
      Company shall pay any and all taxes that may be payable with respect to the
      issuance and delivery of Common Stock upon exchange of any Exchange
      Amount.

    

    (b)           Exchange
      Rate.  The number of shares of Common Stock issuable upon exchange of
      any Exchange Amount pursuant to Section 3(a) shall be equal to the quotient
      of
      (x) such Exchange Amount divided by (y) the Exchange Price (the
      "Exchange Rate").

    

    (i)           "Exchange
      Amount" means the portion of the Principal, together with Interest and
      Late Charges thereon, to be exchanged, redeemed or otherwise with respect to
      which this determination is being made.

    

    (ii)           "Exchange
      Price" means, as of any Exchange Date (as defined below) or other date
      of determination, $0.86 (appropriately adjusted for any stock split, stock
      dividend, stock combination or other similar transaction that proportionately
      decreases or increases the Common Stock or as otherwise provided in this
      Note).

    

    
      
        
        

      

      
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    (c)           Mechanics
      of Exchange.

    

    (i)  Optional
      Exchange.  To exchange any Exchange Amount into shares of Common Stock
      on any date (a "Exchange Date"), the Holder shall (A) transmit
      by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m.,
      New
      York Time, on such date, a copy of an executed notice of exchange in a
      reasonably acceptable form  (the "Exchange Notice")
      to the Company and (B) if required by Section 3(c)(ii), surrender this Note
      (or
      an indemnification undertaking and such other documentation as may be reasonably
      required by the Company with respect to this Note in the case of its loss,
      theft
      or destruction) to a nationally recognized overnight delivery service for
      delivery to the Company.  On or before the next Business Day following the
      date of receipt of an Exchange Notice, the Company shall transmit by facsimile
      a
      confirmation of receipt of such Exchange Notice to the Holder and the Transfer
      Agent.  The Company shall cause the Transfer Agent or the Company if
      no Transfer Agent has been appointed to issue and deliver to the address as
      specified in the Exchange Notice, a certificate, registered in the name of
      the
      Holder or its designee, for the number of shares of Common Stock to which the
      Holder shall be entitled and pay to the Holder in cash an amount equal to the
      accrued and unpaid Interest on the Exchange Amount up to and including the
      Exchange Date.  If this Note is physically surrendered for exchange as
      required by Section 3(c)(ii) and the outstanding Principal of this Note is
      greater than the Principal portion of the Exchange Amount being exchanged,
      then
      the Company shall, as soon as practicable and in no event later than two
      Business Days after receipt of this Note and at its own expense, or shall cause
      the Transfer Agent to issue and deliver to the holder a new Note (in accordance
      with Section 18(d)) representing the outstanding Principal not exchanged.
 The Person or Persons entitled to receive the shares of Common Stock issuable upon an exchange of this
      Note shall be treated
      for all purposes as the record holder or holders of such shares of Common Stock
      on the Exchange Date.

    

    (ii)  Registration;
      Book-Entry.  The Company shall maintain a register (the
      "Register") for the recordation of the names and addresses of
      the holders of each Note and the principal amount of the Notes held by such
      holders (the "Registered Notes").  The entries in the
      Register shall be conclusive and binding for all purposes absent manifest
      error.  The Company and the holders of the Notes shall treat each
      Person whose name is recorded in the Register as the owner of a Note for all
      purposes, including, without limitation, the right to receive payments of
      principal and interest hereunder.  A Registered Note may be assigned
      or sold in whole or in part only by registration of such assignment or sale
      on
      the Register.  Upon its receipt of a request to assign or sell all or
      part of any Registered Note by a Holder, the Company shall record the
      information contained therein in the Register and issue one or more new
      Registered Notes in the same aggregate principal amount as the principal amount
      of the surrendered Registered Note to the designated assignee or transferee
      pursuant to Section 17.  Notwithstanding anything to the contrary set
      forth herein, upon exchange of any portion of this Note in accordance with
      the
      terms hereof, the Holder shall not be required to physically surrender this
      Note
      to the Company unless (A) the full Exchange Amount represented by this Note
      is
      being exchanged or (B) the Holder has provided the Company with prior written
      notice (which notice may be included in an Exchange Notice) requesting physical
      surrender and reissue of this Note.  The Holder and the Company shall
      maintain records showing the Principal, Interest and Late Charges exchanged
      and
      the dates of such exchanges or shall use such other method, reasonably
      satisfactory to the Holder and the Company, so as not to require physical
      surrender of this Note upon exchange.

    

    (iii)  Disputes.
       In the event of a dispute as to the number
      of shares of
      Common Stock issuable to the Holder in connection with an exchange of this
      Note,
      the Company shall issue to the Holder the number of shares of Common Stock
      not
      in dispute and resolve such dispute in accordance with Section
      23.

    

    
      
        
        

      

      
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    4.           RIGHTS
      UPON EVENT OF DEFAULT.

    

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

    

     

    (i)  the
      failure of the Company to timely file periodic and special
      reports with the SEC as required by law;

     

    (ii)  the
      Company's (A) failure to deliver the required number of shares of Common Stock
      within five (5) Business Days after the applicable Exchange Date or (B) written
      notice to any holder of the Notes, including by way of public announcement
      or
      through any of its authorized agents, at any time, of its intention not to
      comply with a request for exchange of any Notes into shares of Common Stock
      that
      is tendered in accordance with the provisions of the Notes;

     

    (iii)  the
      failure of the Company to maintain such number of authorized shares of Common
      Stock as equals 200% of the number of shares of Common Stock that the Holder
      would be entitled to receive upon an exchange of the full Exchange Amount of
      this Note (without regard to any limitations on exchange set forth
      herein);

     

    (iv)  the
      Company's failure to pay to the Holder any amount of Principal (including,
      without limitation, any redemption payment), Interest, Late Charges or other
      amounts when and as due under this Note or any other Transaction Document (as
      defined in the Purchase Agreement) or any other agreement, document, certificate
      or other instrument delivered in connection with the transactions contemplated
      hereby and thereby to which the Holder is a party, except, in the case of a
      failure to pay Interest and Late Charges when and as due, in which case only
      if
      such failure continues for a period of at least five (5) Business
      Days;

     

    (v)  any
      default under, redemption of or acceleration prior to maturity of any
      Indebtedness in excess of $100,000, in the aggregate, of the
      Company;

     

    (vi)  the
      Company pursuant to or within the meaning of Title 11, U.S. Code, or any similar
      Federal, foreign or state law for the relief of debtors (collectively,
      "Bankruptcy Law"), (A) commences a voluntary case, (B) consents
      to the entry of an order for relief against it in an involuntary case, (C)
      consents to the appointment of a receiver, trustee, assignee, liquidator or
      similar official (a "Custodian"), (D) makes
      a general assignment for the benefit of its creditors or (E) admits in writing
      that it is generally unable to pay its debts as they become
      due;

     

    (vii)  a
      court
      of competent jurisdiction enters an order or decree under any Bankruptcy Law
      that (A) is for relief against the Company  in an involuntary case,
      (B) appoints a Custodian of the Company  or (C) orders the liquidation
      of the Company  and such order or decree is not dismissed within sixty
      (60) days;

     

    
      
        
        

      

      
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    (viii)  a
      final
      judgment or judgments for the payment of money aggregating in excess of $500,000
      are rendered against the Company  and which judgments are not, within
      sixty (60) days after the entry thereof, bonded, discharged or stayed pending
      appeal, or are not discharged within sixty (60) days after the expiration of
      such stay; provided, however, that any judgment which is covered by insurance
      or
      an indemnity from a credit worthy party shall not be included in calculating
      the
      $500,000 amount set forth above so long as the Company provides the Holder
      a
      written statement from such insurer or indemnity provider (which written
      statement shall be reasonably satisfactory to the Holder) to the effect that
      such judgment is covered by insurance or an indemnity and the Company will
      receive the proceeds of such insurance or indemnity within thirty (30) days
      of
      the issuance of such judgment;

     

    (ix)  the
      Company materially breaches any representation, warranty, covenant or other
      term
      or condition of any Transaction Document, specifically including but not limited
      to Section 4(d) of the Purchase Agreement, except, in the case of a material
      breach of a covenant which is curable, only if such material breach continues
      beyond the applicable cure period allowed for in such Transaction Document
      or,
      if no such cure period is otherwise specified in such Transaction Document,
      for
      a period of at least ten (10) consecutive Business Days, provided that an Event
      of Default under another sub-section of Section 4(a) shall not be covered by
      this sub-section 4(a)(ix); or

     

    (x)  any
      breach or failure in any respect to comply with (x) Section 15 of this Note
      or
      (y) any of the Potential Partner Conditions;

     

    (xi)  the
      Company (A) defaults under any of the agreements or arrangements with respect
      to
      the Company’s indebtedness described in Schedule 3(o) to the Purchase Agreement,
      except with respect to any payment obligation that is being satisfied by a
      payment from the escrow by the Escrow Agent or (B) after five (5) days of the
      Closing a Lien (as defined in the Security Agreement) exists against the Company
      excluding any Lien arising under or disclosed in the schedules to the Security
      Agreement or any Permitted Lien; and

     

    (xii)  the
      failure of the applicable Registration Statement required to be filed pursuant
      to the Registration Rights Agreement to be declared effective by the SEC on
      or
      prior to the date that is thirty (30) days after the applicable Effectiveness
      Deadline (as defined in the Registration Rights Agreement), or, while the
      applicable Registration Statement is required to be maintained effective
      pursuant to the terms of the Registration Rights Agreement, the
      effectiveness of the applicable Registration Statement lapses for any reason
      (including, without limitation, the issuance of a stop order) or is unavailable
      to any holder of the Notes for sale of all of such holder's Registrable
      Securities (as defined in the Registration Rights Agreement) in accordance
      with
      the terms of the Registration Rights Agreement, and such lapse or unavailability
      continues for a period of ten (10) consecutive days or for more than an
      aggregate of thirty (30) days in any 365-day period (other than days during
      an
      Allowable Grace Period (as defined in the Registration Rights
      Agreement)).

     

    (b)           Redemption
      Right.  Upon the occurrence of an Event of Default with respect to this
      Note, the Company shall within two (2) Business Days after the day on which
      the
      Company is aware of the Event of Default deliver written notice thereof via
      facsimile and overnight courier (an "Event of Default Notice")
      to the Holder.

     

    
      
        
        

      

      
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    At
      any
      time after the earlier of the Holder's receipt of an Event of Default Notice
      and
      the Holder becoming aware of an Event of Default, the Holder may require the
      Company to redeem all or any portion of this Note by delivering written notice
      thereof (the "Event of Default Redemption Notice") to the
      Company, which Event of Default Redemption Notice shall indicate the portion
      of
      this Note the Holder is electing to redeem.  Each portion of this Note
      subject to redemption by the Company pursuant to this Section 4(b) shall be
      redeemed by the Company at a price equal to the product of (x) the Exchange
      Amount to be redeemed together with accrued and unpaid Interest with respect
      to
      such Exchange Amount and accrued and unpaid Late Charges with respect to such
      Exchange Amount and Interest and (y) the Redemption
      Premium.  Redemptions required by this Section 4(b) shall be made in
      accordance with the provisions of Section 12.  To the
      extent redemptions required by this Section 4(b) are deemed or determined by
      a
      court of competent jurisdiction to be prepayments of the Note by the Company,
      such redemptions shall be deemed to be voluntary prepayments.  The parties
      hereto agree that in the event of the Company's redemption of any portion of
      the
      Note under this Section 4(b), the Holder's damages would be uncertain and
      difficult to estimate because of the parties' inability to predict future
      interest rates and the uncertainty of the availability of a suitable substitute
      investment opportunity for the Holder.  Accordingly, any Redemption Premium
      due under this Section 4(b) is intended by the parties to be, and shall be
      deemed, a reasonable estimate of the Holder's actual loss of its investment
      opportunity and not as a penalty.

     

    5.           RIGHTS
      UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL.

    

    (a)           Assumption.
       The Company shall not enter into or be party to a Fundamental Transaction
      unless (i)  the Successor Entity assumes in writing all of the obligations
      of the Company under this Note and the other Transaction Documents in accordance
      with the provisions of this Section 5(a) pursuant to written agreements in
      form
      and substance satisfactory to the Required Holders and approved by the Required
      Holders prior to such Fundamental Transaction, including agreements to deliver
      to each holder of Notes in exchange for such Notes a security of the Successor
      Entity evidenced by a written instrument substantially similar in form and
      substance to the Notes, including, without limitation, having a principal amount
      and interest rate equal to the principal amounts and the interest rates of
      the
      Notes held by such holder, having similar conversion or exchange rights as
      the
      Notes and having similar ranking to the Notes, and satisfactory to the Required
      Holders.  Upon the occurrence of any Fundamental Transaction, the Successor
      Entity shall succeed to, and be substituted for (so that from and after the
      date
      of such Fundamental Transaction, the provisions of this Note referring to the
      "Company" shall refer instead to the Successor Entity), and may exercise every
      right and power of the Company and shall assume all of the obligations of the
      Company under this Note with the same effect as if such Successor Entity had
      been named as the Company herein.  Upon consummation of the Fundamental
      Transaction, the Successor Entity shall deliver to the Holder confirmation
      that
      there shall be issued upon exchange or redemption of this Note at any time
      after
      the consummation of the Fundamental Transaction, in lieu of the shares of Common
      Stock (or other securities, cash, assets or other property) issuable upon the
      exchange of the Notes prior to such Fundamental Transaction, such shares of
      publicly traded common stock (or their equivalent) of the Successor Entity,
      as
      adjusted in accordance with the provisions of this Note.  The provisions of
      this Section shall apply similarly and equally to successive Fundamental
      Transactions and shall be applied without regard to any limitations on the
      exchange of this Note.

     

    
      
        
        

      

      
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    (b)           Change
      of Control; Redemption Right.  As soon as reasonably practicable prior
      to the consummation of a Change of Control, but not prior to the public
      announcement of such Change of Control, the Company shall deliver written notice
      thereof via facsimile and overnight courier to the Holder (a "Change of
      Control Notice").  At any time during the period beginning after
      the Holder's receipt of a Change of Control Notice and ending with the
      consummation of such Change of Control, the Holder may require the Company
      to
      redeem all or any portion of this Note by delivering written notice thereof ("Change of Control Redemption
      Notice") to the Company, which Change of Control Redemption Notice
      shall indicate the Exchange Amount the Holder is electing to redeem.  The
      portion of this Note subject to redemption pursuant to this Section 5(b) shall
      be redeemed by the Company in cash at a price equal to 150% of the sum of the
      Exchange Amount being redeemed and any accrued and unpaid Interest with respect
      to such Exchange Amount subject to such Change of Control Redemption and accrued
      and unpaid Late Charges with respect to such Exchange Amount and Interest (the
      "Change of Control Redemption Price").  Redemptions
      required by this Section 5 shall be made in accordance with the provisions
      of
      Section 12 and shall have priority to payments to shareholders in connection
      with a Change of Control.  To the extent redemptions required by this
      Section 5(b) are deemed or determined by a court of competent jurisdiction
      to be
      prepayments of the Note by the Company, such redemptions shall be deemed to
      be
      voluntary prepayments.  Notwithstanding anything to the contrary in this
      Section 5, until the Change of Control Redemption Price (together with any
      interest thereon) is paid in full, the Exchange Amount submitted for redemption
      under this Section 5(b) may be exchanged, in whole or in part, by the Holder
      into shares of Common Stock, or in the event the Exchange Date is after the
      consummation of the Change of Control, shares of publicly traded common stock
      (or their equivalent) of the Successor Entity pursuant to Section 3. The
      parties hereto agree that in the event of the Company's redemption of any
      portion of the Note under this Section 5(b), the Holder's damages would be
      uncertain and difficult to estimate because of the parties' inability to predict
      future interest rates and the uncertainty of the availability of a suitable
      substitute investment opportunity for the Holder.  Accordingly, any
      redemption premium due under this Section 5(b) is intended by the parties to
      be,
      and shall be deemed, a reasonable estimate of the Holder's actual loss of its
      investment opportunity and not as a penalty.

     

    
      
        
        

      

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

    

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

    

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

     

    7.           RIGHTS
      UPON ISSUANCE OF OTHER SECURITIES.

    

    (a)           Adjustment
      of Exchange Price upon Issuance of Common Stock.  If at any time after
      the Subscription Date the Company issues or sells, or in accordance with this
      Section 7(a) is deemed to have issued or sold, any shares of Common Stock
      (including the issuance or sale of shares of Common Stock owned or held by
      or
      for the account of the Company, but excluding shares of Common Stock deemed
      to
      have been issued or sold by the Company in connection with any Excluded
      Securities) for a consideration per share (the "New Issuance
      Price") less than a price (the "Applicable Price")
      equal to Exchange Price in effect immediately prior to such issue or sale (the
      foregoing a "Dilutive Issuance"), then immediately after such
      Dilutive Issuance, the Exchange Price then in effect shall be reduced to the
      New
      Issuance Price.  For purposes of determining the adjusted Exchange Price
      under this Section 7(a), the following shall be applicable:

    

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

    

    
      
        
        

      

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

    

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

    

    (iv)  Calculation
      of Consideration Received.  In case any Option is issued in connection
      with the issue or sale of other securities of the Company, together comprising
      one integrated transaction in which no specific consideration is allocated
      to
      such Options by the parties thereto, the Options will be deemed to have been
      issued for such consideration as determined in good faith by the Board of
      Directors of the Company.  If any Common Stock, Options or Convertible
      Securities are issued or sold or deemed to have been issued or sold for cash,
      the consideration received therefor will be deemed to be the net amount received
      by the Company therefor.  If any Common Stock, Options or Convertible
      Securities are issued or sold for a consideration other than cash, the amount
      of
      the consideration other than cash received by the Company will be the fair value of such consideration as determined
      in good faith by the
      Board of Directors of the Company, except where such consideration consists
      of
      securities, in which case the amount of consideration received by the Company
      will be the Closing Sale Price of such securities on the date of receipt.
 If any Common Stock, Options or Convertible Securities are issued to the
      owners of the non-surviving entity in connection with any merger in which the
      Company is the surviving entity, the amount of consideration therefor will
      be
      deemed to be the fair value of such portion of the net assets and business
      of
      the non-surviving entity as is attributable to such Common Stock, Options or
      Convertible Securities, as the case may be.  Except as otherwise provided
      in this Section 7(a)(iv), the fair value of any consideration other than cash
      or
      securities will be determined jointly by the Company and the Required Holders.
       If such parties are unable to reach agreement within ten (10) days after
      the occurrence of an event requiring valuation (the "Valuation
      Event"), the fair value of such consideration will be determined by an
      independent, reputable appraiser jointly selected by the Company and the
      Required Holders within five (5) Business Days after the tenth day following
      the
      Valuation Event.  The determination of such appraiser shall be deemed
      binding upon all parties absent manifest error and the fees and expenses of
      such
      appraiser shall be borne by the Company.

    

    
      
        
        

      

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

    

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

    

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

    

    8.           [Reserved]

    

    9.           SECURITY.
       This Note is secured to the extent and in the manner set forth in the
      Security Documents (as defined in the Purchase Agreement).

    

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

    

    
      
        
        

      

      
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    11.           RESERVATION
      OF AUTHORIZED SHARES.

    

    (a)           Reservation.
       The Company shall initially reserve out of its authorized and unissued
      Common Stock a number of shares of Common Stock for each of the Notes equal
      to
      200% of the Exchange Rate with respect to the Exchange Amount of each such
      Note
      as of the Issuance Date.  So long as any of the Notes are outstanding, the
      Company shall take all action necessary to reserve and keep available out of
      its
      authorized and unissued Common Stock, solely for the purpose of effecting the
      exchange of the Notes, 200% of the number of shares of Common Stock as shall
      from time to time be necessary to effect the exchange of all of the Notes then
      outstanding; provided that at no time shall the number of shares of Common
      Stock
      so reserved be less than the number of shares required to be reserved of the
      previous sentence (without regard to any limitations on exchanges) (the
      "Required Reserve Amount").  The initial number of
      shares of Common Stock reserved for exchanges of the Notes and each increase
      in
      the number of shares so reserved or increase in the number of reserved shares,
      as the case may be (the "Authorized Share Allocation") shall be
      allocated pro rata among the Holders of the Notes based on the principal amount
      of the Notes held by each holder at the Closing (as defined in the Purchase
      Agreement).  In the event that a holder shall sell or otherwise
      transfer any of such holder’s Notes, each transferee shall be allocated a pro
      rata portion of such holder’s Authorized Share Allocation.  Any shares
      of Common Stock reserved and allocated to any Person which ceases to hold any
      Notes shall be allocated to the remaining holders of the Notes, pro rata based
      on the principal amount of the Notes then held by such holders.

    

    (b)           Insufficient
      Authorized Shares.  If at any time while any of the Notes remain
      outstanding the Company does not have a sufficient number of authorized and
      unreserved shares of Common Stock to satisfy its obligation to reserve for
      issuance upon exchange of the Notes at least a number of shares of Common Stock
      equal to the Required Reserve Amount (an "Authorized Share
      Failure"), then the Company shall immediately take all action necessary
      to increase the Company's authorized shares of Common Stock to an amount
      sufficient to allow the Company to reserve the Required Reserve Amount for
      the
      Notes then outstanding.  Without limiting the generality of the foregoing
      sentence, as soon as practicable after the date of the occurrence of an
      Authorized Share Failure, but in no event later than ninety (90) days after
      the
      occurrence of such Authorized Share Failure, the Company shall hold a meeting
      of
      its shareholders for the approval of an increase in the number of authorized
      shares of Common Stock.  In connection with such meeting, the Company shall
      provide each shareholder with a proxy or information statement and shall use
      its
      reasonable best efforts to solicit its shareholders' approval of such increase
      in authorized shares of Common Stock and to cause its board of directors to
      recommend to the shareholders that they approve such proposal.

    

    12.           HOLDER'S
      REDEMPTIONS.  The Company shall deliver the applicable Event of Default
      Redemption Price to the Holder within five (5) Business Days after the Company's
      receipt of the Holder's Event of Default Redemption Notice.  If the Holder
      has submitted a Change of Control Redemption Notice in accordance with Section
      5(b), the Company shall deliver the applicable Change of Control Redemption
      Price to the Holder concurrently with the consummation of such Change of
      Control.  In the event of a redemption of less than all of the
      Exchange Amount of this Note, the Company shall promptly cause to be issued
      and
      delivered to the Holder a new Note (in accordance with Section 18(d))
      representing the outstanding Principal which has not been redeemed.  In the
      event that the Company does not pay the applicable Redemption Price to the
      Holder within the time period required, at any time thereafter and until the
      Company pays such unpaid Redemption Price in full, the Holder shall have the
      option, in lieu of redemption, to require the Company to promptly return to
      the
      Holder all or any portion of this Note representing the Exchange Amount that
      was
      submitted for redemption and for which the applicable Redemption Price (together
      with any Late Charges thereon) has not been paid.  Upon the Company's
      receipt of such notice, (x) the applicable Redemption Notice shall be null
      and
      void with respect to such Exchange Amount, (y) the Company shall immediately
      return this Note, or issue a new Note (in accordance with Section 18(d)) to
      the
      Holder representing the sum of such Exchange Amount to be redeemed together
      with
      accrued and unpaid Interest with respect to such Exchange Amount and accrued
      and
      unpaid Late Charges with respect to such Exchange Amount and Interest, and
      (z)
      the Exchange Price of this Note or such new Notes shall be adjusted to the
      lesser of (A) the Exchange Price as in effect on the date on which the
      applicable Redemption Notice is voided and (B) the lowest Closing Bid Price
      during the period beginning on and including the date on which the applicable
      Redemption Notice is delivered to the Company and ending on and including the
      date on which the applicable Redemption Notice is voided.  The Holder's
      delivery of a notice voiding a Redemption Notice and exercise of its rights
      following such notice shall not affect the Company's obligations to make any
      payments of Late Charges which have accrued prior to the date of such notice
      with respect to the Exchange Amount subject to such notice.

    

    
      
        
        

      

      
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    (b)           Redemption
      by Other Holders.  Upon the Company's receipt of notice from any
      of the holders of the Other Notes for redemption or repayment as a result of
      an
      event or occurrence substantially similar to the events or occurrences described
      in Section 4(b) or Section 5(b) (each, an "Other Redemption
      Notice"), the Company shall immediately, but no later than one (1)
      Business Day of its receipt thereof, forward to the Holder by facsimile a copy
      of such notice.  If the Company receives a Redemption Notice and one
      or more Other Redemption Notices, during the seven (7) Business Day period
      beginning on and including the date which is three (3) Business Days prior
      to
      the Company's receipt of the Holder's Redemption Notice and ending on and
      including the date which is three (3) Business Days after the Company's receipt
      of the Holder's Redemption Notice and the Company is unable to redeem all
      principal, interest and other amounts designated in such Redemption Notice
      and
      such Other Redemption Notices received during such seven (7) Business Day
      period, then the Company shall redeem a pro rata amount from each holder of
      the
      Notes (including the Holder) based on the principal amount of the Notes
      submitted for redemption pursuant to such Redemption Notice and such Other
      Redemption Notices received by the Company during such seven (7) Business Day
      period.

    

    13.           RESTRICTION
      ON REDEMPTION AND CASH DIVIDENDS.  Until all of the Notes have been
      exchanged, redeemed or otherwise satisfied in accordance with their terms,
      the
      Company shall not, directly or indirectly, redeem, repurchase or declare or
      pay
      any cash dividend or distribution on its Common Stock or Preferred Stock without
      the prior express written consent of the Required Holders.

    

    14.           VOTING
      RIGHTS.  The Holder shall have no voting rights as the holder of this
      Note, except as required by law, and as expressly provided in this
      Note.

    

    15.           COVENANTS.
       

    

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

    

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

    

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

    

    (d)           Internal
      Accounting Controls.  So long as this Note is outstanding, the Company
      shall maintain, in all material respects, a system of
      internal accounting controls consistent with the Internal Accounting Controls
      (as defined in the Purchase Agreement).

    

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

    

    17.           TRANSFER.
       The Holder acknowledges and agrees that, unless otherwise consented to by
      the Company, this Note may only be offered, sold, assigned or transferred by
      the
      Holder if the provisions of Section 2(f) of the Purchase Agreement are complied
      with in all respects.

    

    
      
        
        

      

      
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    18.           REISSUANCE
      OF THIS NOTE.

    

    (a)           Transfer.
       If this Note is to be transferred, the Holder shall surrender this Note to
      the Company, whereupon the Company will issue, promptly following the
      satisfaction of the provisions of Section 2(f) of the Purchase Agreement, and
      deliver upon the order of the Holder a new Note (in accordance with Section
      18(d)), in the name of the validly registered assigns or transferee,
      representing the outstanding Principal being transferred by the Holder and,
      if
      less then the entire outstanding Principal is being transferred, a new Note
      (in
      accordance with Section 18(d)) to the Holder representing the outstanding
      Principal not being transferred.  The Holder and any assignee, by
      acceptance of this Note, acknowledge and agree that, by reason of the provisions
      of Section 3(c)(ii) and this Section 18(a), following exchange or redemption
      of
      any portion of this Note, the outstanding Principal represented by this Note
      may
      be less than the Principal stated on the face of this Note.

    

    (b)           Lost,
      Stolen or Mutilated Note.  Upon receipt by the Company of evidence
      reasonably satisfactory to the Company of the loss, theft, destruction or
      mutilation of this Note, and, in the case of loss, theft or destruction, of
      any
      indemnification undertaking by the Holder to the Company in customary form
      and,
      in the case of mutilation, upon surrender and cancellation of this Note, the
      Company shall execute and deliver to the Holder a new Note (in accordance with
      Section 18(d)) representing the outstanding Principal.

    

    (c)           Note
      Exchangeable for Different Denominations.  This Note is exchangeable,
      upon the surrender hereof by the Holder at the principal office of the Company,
      for a new Note or Notes (in accordance with Section 18(d) and in principal
      amounts of at least $100,000) representing in the aggregate the outstanding
      Principal of this Note, and each such new Note will represent such portion
      of
      such outstanding Principal as is designated by the Holder at the time of such
      surrender.

    

               (d)           Issuance
      of New Notes.  Whenever the Company is required to issue a new Note
      pursuant to the terms of this Note, such new Note (i) shall be of like tenor
      with this Note, (ii) shall represent, as indicated on the face of such new
      Note,
      the Principal remaining outstanding (or in the case of a new Note being issued
      pursuant to Section 18(a) or Section 18(c), the Principal designated by the
      Holder which, when added to the principal represented by the other new Notes
      issued in connection with such issuance, does not exceed the Principal remaining
      outstanding under this Note immediately prior to such issuance of new Notes),
      (iii) shall have an issuance date, as indicated on the face of such new Note,
      which is the same as the Issuance Date of this Note, (iv) shall have the same
      rights and conditions as this Note, and (v) shall represent accrued Interest
      and
      Late Charges on the Principal and Interest of this Note, from the Issuance
      Date.

    

    (e)           Registered
      Instrument.  This Note is a registered instrument and is not a
      bearer instrument.  The Note is registered as to both Principal and
      Interest with the Company and its Transfer Agent and all payments hereunder
      shall be made to the named Holder or, in the event of a transfer, to the
      transferee identified in the record of ownership of the Note maintained by
      the
      Holder on behalf of the Company and the Transfer Agent. Transfer of this Note
      may not be effected except in accordance with the provisions of the Note and
      the
      Purchase Agreement.

    

    
      
        
        

      

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

    

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

    

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

    

    22.           FAILURE
      OR INDULGENCE NOT WAIVER.  No failure or delay on the part of the
      Holder in the exercise of any power, right or privilege hereunder shall operate
      as a waiver thereof, nor shall any single or partial exercise of any such power,
      right or privilege preclude other or further exercise thereof or of any other
      right, power or privilege.

    

    23.           DISPUTE
      RESOLUTION.  In the case of a dispute as to the determination of the
      Closing Bid Price, the Closing Sale Price, the Weighted Average Price or the
      Market Price or the arithmetic calculation of the Exchange Rate or any
      Redemption Price, the Company shall submit the disputed determinations or
      arithmetic calculations via facsimile within two (2) Business Days of receipt
      of
      the Exchange Notice or Redemption Notice or other event giving rise to such
      dispute, as the case may be, to the Holder.  If the Holder and the Company
      are unable to agree upon such determination or calculation within three (3)
      Business Days of such disputed determination or arithmetic calculation being
      submitted to the Holder, then the Company shall, within two (2) Business Days
      submit via facsimile (a) the disputed determination of the Closing Bid Price,
      the Closing Sale Price, the Weighted Average Price or the Market Price to an
      independent, reputable investment bank selected by the Company and approved
      by
      the Holder  (such approval not to be unreasonably withheld or delayed) or
      (b) the disputed arithmetic calculation of the Exchange Rate or any Redemption
      Price to the Company's independent, certified public accountant.  The
      Company, at the Company's expense, shall cause the investment bank or the
      accountant, as the case may be, to perform the determinations or calculations
      and notify the Company and the Holder of the results no later than ten (10)
      Business Days from the time it receives the disputed determinations or
      calculations.  Such investment bank's or accountant's determination or
      calculation, as the case may be, shall be binding upon all parties absent
      demonstrable error.

    

    
      
        
        

      

      
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    24.           NOTICES;
      PAYMENTS.

    

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

    

    (b)           Payments.
       Except as otherwise provided in this Note, whenever any payment of cash is
      to be made by the Company to any Person pursuant to this Note, such payment
      shall be made in lawful money of the United States of America by a check drawn
      on the account of the Company and sent via overnight courier service to such
      Person at such address as previously provided to the Company in writing (which
      address, in the case of each of the Purchasers, shall initially be as set forth
      on the Schedule of Buyers attached to the Purchase Agreement); provided that
      the
      Holder may elect to receive a payment of cash via wire transfer of immediately
      available funds by providing the Company with prior written notice setting
      out
      such request and the Holder's wire transfer instructions.  Whenever any
      amount expressed to be due by the terms of this Note is due on any day which
      is
      not a Business Day, the same shall instead be due on the next succeeding day
      which is a Business Day and, in the case of any Interest Date which is not
      the
      date on which this Note is paid in full, the extension
      of
      the due date thereof shall not be taken into account for purposes of determining
      the amount of Interest due on such date.  Any amount of Principal or other
      amounts due under the Transaction Documents, which is not paid when due shall
      result in a late charge being incurred and payable by the Company in an amount
      equal to interest on such amount at the rate of fifteen percent (15%) per annum
      from the date such amount was due until the same is paid in full ("Late
      Charge").

    

    25.           CANCELLATION.
       After all Principal, accrued Interest and other amounts at any time owed
      on this Note has been paid in full, or any redemption premium (including, but
      not limited to, those amounts due under Section 4 or 5) is paid in full, this
      Note shall automatically be deemed canceled, shall be surrendered to the Company
      for cancellation and shall not be reissued.

    

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

    

    
      
        
        

      

      
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    27.           GOVERNING
      LAW; JURISDICTION; JURY TRIAL.  This Note shall be construed and
      enforced in accordance with, and all questions concerning the construction,
      validity, interpretation and performance of this Note shall be governed by,
      the
      internal laws of the State of New York, without giving effect to any choice
      of
      law or conflict of law provision or rule (whether of the State of New York
      or
      any other jurisdictions) that would cause the application of the laws of any
      jurisdictions other than the State of New York.  The Company hereby
      irrevocably submits to the exclusive jurisdiction of the state and federal
      courts sitting in The City of New York, Borough of Manhattan, for the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper.  The Company hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address set forth in Section 9(f) of the Purchase Agreement and
      agrees that such service shall constitute good and sufficient service of process
      and notice thereof. Nothing contained herein shall be deemed to limit in any
      way
      any right to serve process in any manner permitted by law.  In the event
      that any provision of this Note is invalid or unenforceable under any applicable
      statute or rule of law, then such provision shall be deemed inoperative to
      the
      extent that it may conflict therewith and shall be deemed modified to conform
      with such statute or rule of law.  Any such provision which may prove
      invalid or unenforceable under any law shall not affect the validity or
      enforceability of any other provision of this Note.  Nothing contained
      herein shall be deemed or operate to preclude the Holder from bringing suit
      or
      taking other legal action against the Company in any other jurisdiction to
      collect on the Company's obligations to the Holder, to realize on any collateral
      or any other security for such obligations, or to enforce a judgment or other
      court ruling in favor of the Holder.   THE COMPANY HEREBY IRREVOCABLY
      WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
      ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT
      OF
      THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

    

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

    

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

    

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

    

    (c)  "Calendar
      Month" means the period beginning on and including the first of each
      calendar month and ending on and including the last day of such calendar
      month.

    

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

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (e)  [Reserved]

    

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

    

    (g)  "Closing
      Date" shall have the meaning set forth in the Purchase Agreement, which
      date is the date the Company initially issued Notes pursuant to the terms of
      the
      Purchase Agreement.

    

    (h)  "Contingent
      Obligation" means, as to any Person, any direct or indirect liability,
      contingent or otherwise, of that Person with respect to any indebtedness, lease,
      dividend or other obligation of another Person if the primary purpose or intent
      of the Person incurring such liability, or the primary effect thereof, is to
      provide assurance to the obligee of such liability that such liability will
      be
      paid or discharged, or that any agreements relating thereto will be complied
      with, or that the holders of such liability will be protected (in whole or
      in
      part) against loss with respect thereto.

    

    (i)  "Convertible
      Securities" means any stock or
      securities (other than Options) directly or indirectly convertible into or
      exercisable or exchangeable for Common Stock.

    

    (j)  “Eligible
      Market” means the Principal Market, The New York Stock Exchange, Inc.,
      Nasdaq Select, Nasdaq Global Select or the American Stock Exchange.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (k)  "Excluded
      Securities" means any Common Stock,
      Options or other securities issued: (i) in connection with any Approved Stock
      Plan up to a maximum of an additional 5% of the outstanding shares of capital
      stock calculated on a fully-diluted basis; (ii) upon conversion of, or in
      exchange for, the Notes; (iii) in connection with any acquisition by the
      Company, whether through an acquisition of stock or a merger of any business,
      assets or technologies the primary purpose of which is not to raise equity
      capital; (iv) in connection with corporate partnering transactions on terms
      approved by the Board of Directors of the Company and the primary purpose of
      which is not to raise equity capital; and (v) upon conversion of any Options
      or
      Convertible Securities which are outstanding on the day immediately preceding
      the Subscription Date, provided that the terms of such Options or Convertible
      Securities are not amended, modified or changed on or after the Subscription
      Date.

    

    (l)  "Fundamental
      Transaction" means that the Company shall, directly or indirectly, in
      one or more related transactions, (i) consolidate or merge with or into (whether
      or not the Company is the surviving corporation) another Person, or (ii) sell,
      assign, transfer, convey or otherwise dispose of all or substantially all of
      the
      properties or assets of the Company to another Person, or (iii) allow another
      Person or Persons to make a purchase, tender or exchange offer that is accepted
      by the holders of more than 50% of the outstanding shares of Voting Stock (not
      including any shares of Voting Stock held by the Person or Persons making or
      party to, or associated or affiliated with the Person or Persons making or
      party
      to, such purchase, tender or exchange offer), (iv) consummate a stock purchase
      agreement or other business combination (including, without limitation, a
      reorganization, recapitalization, spin-off or scheme of arrangement) with
      another Person whereby such other Person acquires more than 50% of either the
      outstanding shares of Voting Stock (not including any shares of Voting Stock
      held by the other Person or other Persons making or party to, or associated
      or
      affiliated with the other Persons making or party to, such stock purchase
      agreement or other business combination), (v) reorganize, recapitalize or
      reclassify its Common Stock or (vi) any "person" or "group" (as these terms
      are
      used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the "beneficial
      owner" (as defined in Rule
      13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate
      Voting Stock of the Company.

    

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

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (n)  "Indebtedness"
      of any Person means, without duplication (i) all indebtedness for borrowed
      money, (ii) all obligations issued, undertaken or assumed as the deferred
      purchase price of property or services, including (without limitation) "capital
      leases" in accordance with generally accepted accounting principles (other
      than
      trade payables entered into in the ordinary course of business), (iii) all
      reimbursement or payment obligations with respect to letters of credit, surety
      bonds and other similar instruments, (iv) all obligations evidenced by notes,
      bonds, debentures or similar instruments, including obligations so evidenced
      incurred in connection with the acquisition of property, assets or businesses,
      (v) all indebtedness created or arising under any conditional sale or other
      title retention agreement, or incurred as financing, in either case with respect
      to any property or assets acquired with the proceeds of such indebtedness (even
      though the rights and remedies of the seller or bank under such agreement in
      the
      event of default are limited to repossession or sale of such property), (vi)
      all
      monetary obligations under any leasing or similar arrangement which, in
      connection with generally accepted accounting principles, consistently applied
      for the periods covered thereby, is classified as a capital lease, (vii) all
      indebtedness referred to in clauses (i) through (vi) above secured by (or for
      which the holder of such Indebtedness has an existing right, contingent or
      otherwise, to be secured by) any mortgage, lien, pledge, charge, security
      interest or other encumbrance upon or in any property or assets (including
      accounts and contract rights) owned by any Person, even though the Person which
      owns such assets or property has not assumed or become liable for the payment
      of
      such indebtedness, (viii) all obligations issued, undertaken or assumed as
      part
      of any financing facility with respect to accounts receivables of the Company,
      including, without limitation, any factoring arrangement of such accounts
      receivables and (ix) all Contingent Obligations in respect of indebtedness
      or
      obligations of others of the kinds referred to in clauses (i) through (viii)
      above.

    

    (o)  "Initial
      Issuance Date" means August 7, 2007.

    

    (p)  [Reserved]

    

    (q)  [Reserved]

    

    (r)  "Interest
      Rate" means twelve percent (12%) per annum, subject to periodic
      adjustment pursuant to Section 2.

    

    (s)  "Market
      Price" means, for any given date, the arithmetic average of the
      Weighted Average Price of the Common Stock during the five (5) consecutive
      Trading Day period immediately prior to and including such given date; provided
      that if the Company issues a press release or files a Form 8-K at any point
      during such five Trading Day period, the "Market Price" shall mean the
      arithmetic average of the Weighted Average Price of the Common Stock during
      the
      five (5) consecutive Trading Day period beginning on the date that such press
      release is issued; provided further, that all such determinations shall be
      appropriately adjusted for any stock split, stock dividend, stock combination
      or
      other similar transaction that proportionately decreases or increases the Common
      Stock during such periods.

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (t)  "Options"
      means any rights, warrants or options to subscribe for or purchase Common Stock
      or Convertible Securities.

    

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

    

    (v)  "Permitted
      Indebtedness" means (A) Indebtedness incurred by the Company that is
      made expressly subordinate in right of payment to the Indebtedness evidenced
      by
      this Note, as reflected in a written agreement acceptable to the Holder and
      approved by the Holder in writing (which approval shall not be unreasonably
      delayed), and which Indebtedness does not provide at any time for (1) the
      payment, prepayment, repayment, repurchase or defeasance, directly or
      indirectly, of any principal or premium, if any, thereon until ninety-one (91)
      days after the Maturity Date or later and (2) total interest and fees at a
      rate
      in excess of the Interest Rate hereunder, (B) Indebtedness secured by Permitted
      Liens, (C) Indebtedness to trade creditors incurred in the ordinary course
      of business, (D) extensions, refinancings
      and renewals of any
      items of Permitted Indebtedness, provided that the principal amount is not
      increased or the terms modified to impose more burdensome terms upon the
      Company, as the case may be and (E) Indebtedness detailed in Schedule 4(o)
      to
      the Purchase Agreement.

    

    (w)  "Permitted
      Liens" means (i) any Lien for taxes not yet due or delinquent or being
      contested in good faith by appropriate proceedings for which adequate reserves
      have been established in accordance with GAAP, (ii) any statutory Lien arising
      in the ordinary course of business by operation of law with respect to a
      liability that is not yet due or delinquent, (iii) any Lien created by operation
      of law, such as materialmen's liens, mechanics' liens and other similar liens,
      arising in the ordinary course of business with respect to a liability that
      is
      not yet due or delinquent or that are being contested in good faith by
      appropriate proceedings, (iv) Liens securing the Company's obligations under
      the
      Notes, (v) Liens (A) upon or in any equipment (as defined in the Security
      Agreement) acquired or held by the Company  to secure the purchase
      price of such equipment or indebtedness incurred solely for the purpose of
      financing the acquisition or lease of such equipment, or (B) existing on such
      equipment at the time of its acquisition, provided that the Lien is confined
      solely to the property so acquired and improvements thereon, and the proceeds
      of
      such equipment, (vi) Liens incurred in connection with the extension, renewal
      or
      refinancing of the indebtedness secured by Liens of the type described in
      clauses (i) and (v) above, provided that any extension, renewal or replacement
      Lien shall be limited to the property encumbered by the existing Lien and the
      principal amount of the Indebtedness being extended, renewed or refinanced
      does
      not increase, and (vii) Liens with respect to Indebtedness not individually
      in
      excess of $25,000 or in the aggregate in excess of $100,000, which individually
      and in the aggregate are not material to the Company.

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

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

    

    (y)  "Potential
      Partner Conditions" means at any time during the period commencing on
      the date of the consummation of any material transaction between the Company
      and
      a Person and ending on the first anniversary thereof, there shall be no
      disclosure that any executive officer of such Person has (i) exhibited
      dishonesty in the performance of his or her duties, which is materially and
      demonstrably injurious to the Company; or (ii) been
      convicted of (x) a felony under the laws of the United States or any state
      thereof or (y) a misdemeanor involving moral turpitude, in each case, which
      is
      materially and demonstrably injurious to the Company.

    

    (z)  "Principal
      Market" means Over-the-Counter Bulletin Board.

    

    (aa)  "Redemption
      Notices" means, collectively, the Event of Default Redemption Notices
      and Change of Control Redemption Notices, and, each of the foregoing,
      individually, a Redemption Notice.

    

    (bb)  "Redemption
      Premium" means 120%.

    

    (cc)  "Redemption
      Prices" means, collectively, the Event of Default Redemption Price,
      Change of Control Redemption Price, and the Company Redemption Amount, the
      Holder Optional Redemption Price and the Holder Partial Redemption Price and,
      each of the foregoing, individually, a Redemption Price.

    

    (dd)  "Required
      Holders" means the holders of Notes representing at least fifty-one
      percent (51%) of the aggregate principal amount of the Notes then
      outstanding.

    

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

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (ff)  "Purchase
      Agreement" means that certain purchase agreement dated the Subscription
      Date by and among the Company and the initial holders of the Notes pursuant
      to
      which the Company issued the Notes.

    

    (gg)  “Security
      Agreement” means that certain Security Agreement dated the Subscription
      Date by and between the Company and the Collateral Agent (as defined
      therein).

    

    (hh)  "Subscription
      Date" means August 7, 2007.

    

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

    

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

    

    (kk)  “Transfer
      Agent” means Continental Stock Transfer and Trust Co.

    

    (ll)  "Voting
      Stock" of a Person means capital stock
      of such Person of the class or classes pursuant to which the holders thereof
      have the general voting power to elect, or the general power to appoint, at
      least a majority of the board of directors, managers or trustees of such Person
      (irrespective of whether or not at the time capital stock of any other class
      or
      classes shall have or might have voting power by reason of the happening of
      any
      contingency).

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    (mm)  "Weighted
      Average Price" means, for any security as of any date, the dollar
      volume-weighted average price for such security on the Principal Market during
      the period beginning at 9:30:01 a.m., New York Time (or such other time as
      the
      Principal Market publicly announces is the official open of trading), and ending
      at 4:00:00 p.m., New York Time (or such other time as the Principal Market
      publicly announces is the official close of trading) as reported by Bloomberg
      through its "Volume at Price" functions, or, if the foregoing does not apply,
      the dollar volume-weighted average price of such security in the
      over-the-counter market on the electronic bulletin board for such security
      during the period beginning at 9:30:01 a.m., New York Time (or such other time
      as such market publicly announces is the official open of trading), and ending
      at 4:00:00 p.m., New York Time (or such other time as such market publicly
      announces is the official close of trading) as reported by Bloomberg, or, if
      no
      dollar volume-weighted average price is reported for such security by Bloomberg
      for such hours, the average of the highest closing bid price and the lowest
      closing ask price of any of the market makers for such security as reported
      in
      the "pink sheets" by Pink Sheets LLC (formerly the National Quotation Bureau,
      Inc.).  If the Weighted Average Price cannot be calculated for a security
      on a particular date on any of the foregoing bases, the Weighted Average Price
      of such security on such date shall be the fair market value as mutually
      determined by the Company and the Holder.  If the Company and the Holder
      are unable to agree upon the fair market value of such security, then such
      dispute shall be resolved pursuant to Section 23.  All such determinations
      to be appropriately adjusted for any stock dividend, stock split, stock
      combination or other similar transaction during the applicable calculation
      period.

    

    29.           DISCLOSURE.
      Upon receipt or delivery by the Company of any notice in accordance with the
      terms of this Note, unless the Company has in good faith determined that the
      matters relating to such notice do not constitute material, nonpublic
      information relating to the Company, the Company shall within two (2) Business
      Days after any such receipt or delivery publicly disclose such material,
      nonpublic information on a Current Report on Form 8-K or otherwise. In the
      event
      that the Company believes that a notice contains material, nonpublic
      information, relating to the Company, the Company shall indicate to the Holder
      within one (1) Business Day of the delivery of such notice, and in the absence
      of any such indication, the Holder shall be allowed to presume that all matters
      relating to such notice do not constitute material, nonpublic information
      relating to the Company.

    

    [Signature
      Page Follows]

     

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    

    

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

     

    
      	 	
              MOHEN,
                INC.

            	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ 	 
	 	 	
              Name:   Orville
                Hagler

            	 
	 	 	Title:      Corporate
              Secretary	 
	 	 	 	 

    

     

    

    24Unassociated Document

     

    Exhibit
      4.8

     

     

    Warrant
      Certificate No. 1

     

    NEITHER
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE
      UPON
      THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER
      SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED
      OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT
      THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
      OR
      (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN
      OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION
      ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD,
      PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
      LAWS.

     

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON
      THE
      EXERCISE OF THIS WARRANT ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
      RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT
      AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
      THEREFROM.  INVESTOR SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR
      THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
      TIME.

     

    Dated:
      August 7, 2007                                                                               Void
      After: August 7,
      2012

     

     

     

    MOHEN,
      INC.

     

     

    WARRANT
      TO PURCHASE COMMON STOCK

     

     

    Mohen,
      Inc. d/b/a/ Spiral Frog, a Delaware corporation (the “Company”), for
      value received, hereby issues to DISTRESSED HIGH YIELD TRADING OPPORTUNITIES
      FUND, LTD. (the “Holder”) this Warrant (the “Warrant”) to purchase
      Two Million Seven Hundred Twenty-Seven Thousand, Two Hundred Three (2,727,273)
      shares (each such share being a “Warrant Share” and all such shares being
      the “Warrant Shares”) of the Company’s Common Stock (as defined below),
      at the Exercise Price (as defined below), as adjusted from time to time as
      provided herein, from and after the day after the date that the Common Stock
      is
      registered pursuant to Section 12(b) or Section 12(g) of the Securities Exchange
      Act of 1934 (the “Effective Date”) and on or before August 7, 2012 (the
“Expiration Date”), all subject to the following terms and
      conditions.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    As
      used
      in this Warrant, (i) “Common Stock” means the common stock of the
      Company, $0.001 par value per share, and such other securities as such class
      of
      common stock may be converted from time to time in the future; and (ii)
“Exercise Price” means $1.00, subject to adjustment as provided
      herein.

     

    1.  DURATION
      AND EXERCISE OF WARRANTS

     

    (a)  The
      Holder may exercise this Warrant on any business day from and after the
      Effective Date and on or before 5:00 P.M., New York Time, on the Expiration
      Date, at which time this Warrant shall become void and of no value.

     

    (b)  While
      this Warrant remains outstanding and exercisable in accordance with Section
      1(a), the Holder may exercise this Warrant in whole or in part by:

     

    (i)  surrender
      of this Warrant, with a duly executed copy of the Notice of Exercise attached
      as
Exhibit A, to the Secretary of the Company at its principal offices
      or  at such other office or agency as the Company may specify in
      writing to the Holder; and

     

    (ii)  payment
      of the Exercise Price per share multiplied by the number of Warrant Shares
      being
      purchased upon exercise of the Warrant in lawful money of the United States
      of
      America or pursuant to the net exercise provisions set forth in subsection
      (d)
      below; or

     

    Upon
      the
      exercise of this Warrant in compliance with the provisions of this Section
      1(b),
      the Company shall promptly issue and cause to be delivered to the Holder a
      certificate for the Warrant Shares purchased by the
      Holder.   Each exercise of this Warrant shall be effected
      immediately prior to the close of business on the date (the “Date of
      Exercise”) which the conditions set forth in Section 1(b)(i) and (ii) have
      been satisfied.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (c)  This
      Warrant shall be exercisable, either as an entirety or, from time to time,
      for
      part only of the number of Warrant Shares referenced by this
      Warrant.  If this Warrant is exercised in part, the Company shall
      issue, at its expense, a new Warrant, in substantially the form of this Warrant,
      referencing such reduced number of Warrant Shares which remain subject to this
      Warrant.

     

    (d)  The
      Holder may elect to exercise this Warrant, in whole at any time or in part
      from
      time to time, by receiving shares of Common Stock equal to the net issuance
      value (as determined below) of this Warrant, or any part hereof, in which event
      the Company shall issue to the Holder a number of shares of Common Stock
      computed using the following formula:

     

    X
      = Y
      x (A - B)

    A

     

    where,

     

    X
      =           the number of
      shares of Common Stock to be issued to the Holder

     

    Y
      =           the number of
      shares of Common Stock as to which this Warrant is to be exercised

     

    A
      =           the closing
      bid price of one share of Common Stock as of the last trading day immediately
      preceding the exercise of this Warrant

     

    B
      =           the Exercise
      Price

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    2.  ISSUANCE
      OF WARRANT SHARES

     

    (a)  The
      Company covenants that all Warrant Shares will, upon issuance in accordance
      with
      the terms of this Warrant, be (i) duly authorized, validly issued, fully paid
      and non-assessable, and (ii) free from all liens, charges and security
      interests, with the exception of claims arising through the acts or omissions
      of
      any Holder and except as arising from applicable Federal and state securities
      laws.

     

    (b)  The
      Company shall register this Warrant upon records to be maintained by the Company
      for that purpose in the name of the record holder of such Warrant from time
      to
      time.  The Company may deem and treat the registered Holder of this
      Warrant as the absolute owner thereof for the purpose of any exercise thereof,
      any distribution to the Holder thereof and for all other purposes.

     

    (c)  The
      Company will not, by amendment of its certificate of incorporation, by-laws
      or
      through any reorganization, transfer of assets, consolidation, merger,
      dissolution, issue or sale of securities or any other voluntary action, avoid
      or
      seek to avoid the observance or performance of any of the terms to be observed
      or performed hereunder by the Company, but will at all times in good faith
      assist in the carrying out of all the provisions of this Warrant and in the
      taking of all the action as may be necessary or appropriate in order to protect
      the rights of the Holder to exercise this Warrant.

     

    3.  ADJUSTMENTS
      OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT SHARES

     

    (a)  The
      Exercise Price and the number of shares purchasable upon the exercise of this
      Warrant shall be subject to adjustment from time to time upon the occurrence
      of
      certain events described in this Section 3(a).

     

    (i)  Subdivision
      or Combination of Stock.  In case the Company shall at any time
      subdivide its outstanding shares of Common Stock into a greater number of
      shares, the Exercise Price in effect immediately prior to such subdivision
      shall
      be proportionately reduced and the number of shares for which this Warrant
      is
      exercisable shall be proportionately increased, and conversely, in case the
      outstanding shares of Common Stock of the Company shall be combined into a
      smaller number of shares, the Exercise Price in effect immediately prior to
      such
      combination shall be proportionately increased and the number of shares for
      which this Warrant is exercisable shall be proportionately reduced.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (ii)  Dividends
      in Stock, Property, Reclassification.  If at any time or from time
      to time the Holders of Common Stock (or any shares of stock or other securities
      at the time receivable upon the exercise of this Warrant) shall have received
      or
      become entitled to receive, without payment therefor:

     

    (A)  any
      shares of stock or other securities which are at any time directly or indirectly
      convertible into or exchangeable for Common Stock, or any rights or options
      to
      subscribe for, purchase or otherwise acquire any of the foregoing by way of
      dividend or other distribution, or

     

    (B)  additional
      stock or other securities or property (including cash) by way of spin-off,
      split-up, reclassification, combination of shares or similar corporate
      rearrangement (other than shares of Common Stock issued as a stock split or
      adjustments in respect of which shall be covered by the terms of Section 3(a)(i)
      above),

     

    then
      and
      in each such case, the Holder hereof shall, upon the exercise of this Warrant,
      be entitled to receive, in addition to the number of shares of Common Stock
      receivable thereupon, and without payment of any additional consideration
      therefor, the amount of stock and other securities and property (including
      cash
      in the cases referred to in clause (ii) above) which such Holder would hold
      on
      the date of such exercise had he been the holder of record of such Common Stock
      as of the date on which holders of Common Stock received or became entitled
      to
      receive such shares or all other additional stock and other securities and
      property.

     

    (iii)  Reorganization,
      Reclassification, Consolidation, Merger or Sale.  If any
      recapitalization, reclassification or reorganization of the capital stock of
      the
      Company, or any consolidation or merger of the Company with another corporation,
      or the sale of all or substantially all of its assets or other transaction
      shall
      be effected in such a way that holders of Common Stock shall be entitled to
      receive stock, securities, or other assets or property (an “Organic
      Change”), then, as a condition of such Organic Change, lawful and adequate
      provisions shall be made by the Company whereby the Holder hereof shall
      thereafter have the right to purchase and receive (in lieu of the shares of
      the
      Common Stock of the Company immediately theretofore purchasable and receivable
      upon the exercise of the rights represented by this Warrant) such shares of
      stock, securities or other assets or property as may be issued or payable with
      respect to or in exchange for a number of outstanding shares of such Common
      Stock equal to the number of shares of such stock immediately theretofore
      purchasable and receivable assuming the full exercise of the rights represented
      by this Warrant.  In the event of any Organic Change, appropriate
      provision shall be made by the Company with respect to the rights and interests
      of the Holder of this Warrant to the end that the provisions hereof (including,
      without limitation, provisions for adjustments of the Exercise Price and of
      the
      number of shares purchasable and receivable upon the exercise of this Warrant)
      shall thereafter be applicable, in relation to any shares of stock, securities
      or assets thereafter deliverable upon the exercise hereof.  The
      Company will not effect any such consolidation, merger or sale unless, prior
      to
      the consummation thereof, the successor corporation (if other than the Company)
      resulting from such consolidation or the corporation purchasing such assets
      shall assume by written instrument reasonably satisfactory in form and substance
      to the Holders executed and mailed or delivered to the registered Holder hereof
      at the last address of such Holder appearing on the books of the Company, the
      obligation to deliver to such Holder such shares of stock, securities or assets
      as, in accordance with the foregoing provisions, such Holder may be entitled
      to
      purchase.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (iv)  If
      at any
      time after the issuance hereof the Company issues or sells, or in accordance
      with this Section 3(a)(iv) is deemed to have issued or sold, any shares of
      Common Stock (including the issuance or sale of shares of Common Stock owned
      or
      held by or for the account of the Company, but excluding shares of Common Stock
      deemed to have been issued or sold by the Company in connection with any
      Excluded Securities) for a consideration per share (the "New Issuance Price")
      less than a price (the "Applicable Price") equal to Exercise Price in effect
      immediately prior to such issue or sale (the foregoing a "Dilutive Issuance"),
      then immediately after such Dilutive Issuance, the Exercise Price then in effect
      shall be reduced to the New Issuance Price and the number of shares for which
      this Warrant may thereafter be exercised shall be increased to a number equal
      to
      the quotient obtained by dividing the aggregate Exercise Price in effect
      immediately prior to the Dilutive Issuance by the Exercise Price in effect
      immediately after the Dilutive Issuance after giving effect to the reduction
      in
      the Exercise Price.  For purposes of determining the adjusted Exercise
      Price under this Section 3(a)(iv), the following shall be
      applicable:

     

    (A)           Issuance
      of Options.  If the Company in any manner grants or sells any
      Options and the lowest price per share for which one share of Common Stock
      is
      issuable upon the exercise of any such Option or upon conversion or exchange
      or
      exercise of any Convertible Securities issuable upon exercise of such Option
      is
      less than the Applicable Price, then such share of Common Stock shall be deemed
      to be outstanding and to have been issued and sold by the Company at the time
      of
      the granting or sale of such Option for such price per share.  For
      purposes of this Section 3(a)(iv), the "lowest price per share for which one
      share of Common Stock is issuable upon the exercise of any such Option or upon
      conversion or exchange or exercise of any Convertible Securities issuable upon
      exercise of such Option" shall be equal to the sum of the lowest amounts of
      consideration (if any) received or receivable by the Company with respect to
      any
      one share of Common Stock upon granting or sale of the Option, upon exercise
      of
      the Option and upon conversion or exchange or exercise of any Convertible
      Security issuable upon exercise of such Option.  No further adjustment
      of the Exercise Price shall be made upon the actual issuance of such share
      of
      Common Stock or of such Convertible Securities upon the exercise of such Options
      or upon the actual issuance of such Common Stock upon conversion or exchange
      or
      exercise of such Convertible Securities.

     

    (B)           Issuance
      of Convertible Securities.  If the Company in any manner issues or
      sells any Convertible Securities and the lowest price per share for which one
      share of Common Stock is issuable upon such conversion or exchange or exercise
      thereof is less than the Applicable Price, then such share of Common Stock
      shall
      be deemed to be outstanding and to have been issued and sold by the Company
      at
      the time of the issuance or sale of such Convertible Securities for such price
      per share.  For the purposes of this Section 3(a)(iv), the "lowest
      price per share for which one share of Common Stock is issuable upon such
      conversion or exchange or exercise" shall be equal to the sum of the lowest
      amounts of consideration (if any) received or receivable by the Company with
      respect to any one share of Common Stock upon the issuance or sale of the
      Convertible Security and upon the conversion or exchange or exercise of such
      Convertible Security.  No further adjustment of the Exercise Price
      shall be made upon the actual issuance of such share of Common Stock upon
      conversion or exchange or exercise of such Convertible Securities, and if any
      such issue or sale of such Convertible Securities is made upon exercise of
      any
      Options for which adjustment of the Exercise Price had been or are to be made
      pursuant to other provisions of this Section 3(a)(iv), no further adjustment
      of
      the Exchange Price shall be made by reason of such issue or sale.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (C)           Change
      in Option Price or Rate of Exchange.  If the purchase price
      provided for in any Options, the additional consideration, if any, payable
      upon
      the issue, conversion, exchange or exercise of any Convertible Securities,
      or
      the rate at which any Convertible Securities are convertible into or
      exchangeable or exercisable for Common Stock changes at any time, the Exercise
      Price in effect at the time of such change shall be adjusted to the Exercise
      Price which would have been in effect at such time had such Options or
      Convertible Securities provided for such changed purchase price, additional
      consideration or changed conversion or exchange rate, as the case may be, at
      the
      time initially granted, issued or sold.  For purposes of this Section
      3(a)(iv), if the terms of any Option or Convertible Security that was
      outstanding as of the Subscription Date are changed in the manner described
      in
      the immediately preceding sentence, then such Option or Convertible Security
      and
      the Common Stock deemed issuable upon exercise, conversion or exchange thereof
      shall be deemed to have been issued as of the date of such change.  No
      adjustment shall be made if such adjustment would result in an increase of
      the
      Exercise Price then in effect.

     

    (D)           Calculation
      of Consideration Received.  In case any Option is issued in
      connection with the issue or sale of other securities of the Company, together
      comprising one integrated transaction in which no specific consideration is
      allocated to such Options by the parties thereto, the Options will be deemed
      to
      have been issued for such consideration as determined in good faith by the
      Board
      of Directors of the Company.  If any Common Stock, Options or
      Convertible Securities are issued or sold or deemed to have been issued or
      sold
      for cash, the consideration received therefor will be deemed to be the net
      amount received by the Company therefor.  If any Common Stock, Options
      or Convertible Securities are issued or sold for a consideration other than
      cash, the amount of the consideration other than cash received by the Company
      will be the fair value of such consideration as determined in good faith by
      the
      Board of Directors of the Company, except where such consideration consists
      of
      securities, in which case the amount of consideration received by the Company
      will be the closing sale price of such securities on the date of
      receipt.  If any Common Stock, Options or Convertible Securities are
      issued to the owners of the non-surviving entity in connection with any merger
      in which the Company is the surviving entity, the amount of consideration
      therefor will be deemed to be the fair value of such portion of the net assets
      and business of the non-surviving entity as is attributable to such Common
      Stock, Options or Convertible Securities, as the case may be.  Except
      as otherwise provided in this Section 3(a)(iv), the fair value of any
      consideration other than cash or securities will be determined jointly by the
      Company and the Holders of a majority of the Warrants.  If such
      parties are unable to reach agreement within ten (10) days after the occurrence
      of an event requiring valuation (the "Valuation Event"), the fair value of
      such
      consideration will be determined by an independent, reputable appraiser jointly
      selected by the Company and the Required Holders within five (5) Business Days
      after the tenth day following the Valuation Event.  The determination
      of such appraiser shall be deemed binding upon all parties absent manifest
      error
      and the fees and expenses of such appraiser shall be borne by the
      Company.

     

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

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (F)           Certain
      Definitions.  For purposes of this Section 3(a)(iv), the following
      terms shall have the following meaning:

     

    "Approved
      Stock Plan" means any employee benefit plan which has been approved by
      the Board of Directors of the Company, pursuant to which the Company's
      securities may be issued to any employee, consultant, officer or director for
      services provided to the Company.

     

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

     

    "Excluded
      Securities" means any Common Stock, Options or other securities issued:
      (i) in connection with any Approved Stock Plan up to a maximum of an additional
      5% of the outstanding shares of capital stock calculated on a fully-diluted
      basis; (ii) upon exercise of the Warrants; (iii) in connection with any
      acquisition by the Company, whether through an acquisition of stock or a merger
      of any business, assets or technologies the primary purpose of which is not
      to
      raise equity capital; (iv) in connection with corporate partnering transactions
      on terms approved by the Board of Directors of the Company and the primary
      purpose of which is not to raise equity capital; and (v) upon conversion of
      any
      Options or Convertible Securities which are outstanding on the day immediately
      preceding the date hereof, provided that the terms of such Options or
      Convertible Securities are not amended, modified or changed on or after the
      date
      hereof.

     

    "Options"
      means any rights, warrants or options to subscribe for or purchase Common Stock
      or Convertible Securities.

     

    (b)  Certificate
      as to Adjustments.  Upon the occurrence of each adjustment or
      readjustment pursuant to this Section 3, the Company at its expense shall
      promptly compute such adjustment or readjustment in accordance with the terms
      hereof and furnish to each holder of this Warrant a certificate setting forth
      such adjustment or readjustment and showing in detail the facts upon which
      such
      adjustment or readjustment is based.  The Company shall, upon the
      written request, at any time, of any such holder, furnish or cause to be
      furnished to such holder a like certificate setting forth: (i) such
      adjustments and readjustments; and (ii) the number of shares and the
      amount, if any, of other property which at the time would be received upon
      the
      exercise of the Warrant.

     

    (c)  Certain
      Events.  If any event occurs as to which, in the opinion of the
      Company, the other provisions of this Section 3 are not strictly applicable
      but
      the lack of any adjustment would not in the opinion of the Company fairly
      protect the purchase rights of the Holder under this Warrant in accordance
      with
      the basic intent and principles of such provisions, or if strictly applicable
      would not fairly protect the purchase rights of the Holder under this Warrant
      in
      accordance with the basic intent and principles of such provisions, then the
      Company shall make the adjustments as the board of directors deems reasonable
      to
      fairly protect the purchase rights of the Holder under this
      Warrant.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    4.  TRANSFERS
      AND EXCHANGES OF WARRANT AND WARRANT SHARES

     

    (a)  Registration
      of Transfers and Exchanges. Subject to Section 4(c), upon the Holder’s
      surrender of this Warrant, with a duly executed copy of the Assignment Notice
      attached as Exhibit B, to the Secretary of the Company at its principal
      offices or at such other office or agency as the Company may specify in writing
      to the Holder, the Company shall register the transfer of all or any portion
      of
      this Warrant. Upon such registration of transfer the Company shall issue a
      new
      Warrant, in substantially the form of this Warrant, evidencing the acquisition
      rights transferred to the transferee and a new Warrant, in similar form,
      evidencing the remaining acquisition rights not transferred, to the Holder
      requesting the transfer.

     

    (b)  Warrant
      Exchangeable for Different Denominations. The Holder may exchange this
      Warrant for a new Warrant or Warrants, in substantially the form of this
      Warrant, evidencing in the aggregate the right to purchase the number of Warrant
      Shares which may then be purchased hereunder, each of such new Warrants to
      be
      dated the date of such exchange and to represent the right to purchase such
      number of Warrant Shares as shall be designated by the Holder.  The
      Holder shall surrender this Warrant with duly executed instructions regarding
      such re-certification of this Warrant to the Secretary of the Company at its
      principal offices or at such other office or agency as the Company may specify
      in writing to the Holder.

     

    (c)  Restrictions
      on Transfers.  This Warrant may not be transferred at any time
      without (i) registration under the Act or (ii) an exemption from such
      registration and a written opinion of legal counsel addressed to the Company
      that the proposed transfer of the Warrant may be effected without registration
      under the Act, which opinion will be in form and from counsel reasonably
      satisfactory to the Company.

     

    5.  MUTILATED
      OR MISSING WARRANT CERTIFICATE

     

    If
      this
      Warrant is mutilated, lost, stolen or destroyed, upon request by the Holder,
      the
      Company will issue, in exchange for and upon cancellation of the mutilated
      Warrant, or in substitution for the lost, stolen or destroyed Warrant, a new
      Warrant, in substantially the form of this Warrant, representing the right
      to
      acquire the equivalent number of Warrant Shares, provided however, as a
      prerequisite to the issuance of a substitute Warrant, the Company may require
      satisfactory evidence of loss, theft or destruction as well as an indemnity
      from
      the Holder of a lost, stolen or destroyed Warrant.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    6.  PAYMENT
      OF TAXES

     

    The
      Company will pay all transfer and stock issuance taxes attributable to the
      preparation, issuance and delivery of this Warrant and the Warrant Shares
      including, without limitation, all documentary and stamp taxes; provided,
however, that the Company shall not be required to pay any tax in
      respect
      of the transfer of this Warrant, or the issuance or delivery of certificates
      for
      Warrant Shares or other securities in respect of the Warrant Shares to any
      person or entity other than the Holder.

     

    7.  FRACTIONAL
      WARRANT SHARES

     

    No
      fractional Warrant Shares shall be issued upon exercise of this
      Warrant.  The Company shall, in lieu of issuing any fractional Warrant
      Share, round up the number of Warrant Shares issuable to nearest whole
      share.

     

    8.  NO
      STOCK RIGHTS AND LEGEND

     

    No
      holder
      of this Warrant Certificate, as such, shall be entitled to vote or be deemed
      the
      holder of any other securities of the Company which may at any time be issuable
      on the exercise hereof, nor shall anything contained herein be construed to
      confer upon the holder of this Warrant Certificate, as such, the rights of
      a
      stockholder of the Company or the right to vote for the election of directors
      or
      upon any matter submitted to stockholders at any meeting thereof, or give or
      withhold consent to any corporate action or to receive notice of meetings or
      other actions affecting stockholders (except as provided herein), or to receive
      dividends or subscription rights or otherwise (except as provide
      herein).

     

    Each
      certificate for Warrant Shares initially issued upon the exercise of this
      Warrant Certificate, and each certificate for Warrant Shares issued to any
      subsequent transferee of any such certificate, shall be stamped or otherwise
      imprinted with a legend in substantially the following form:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES
      LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED,
      SOLD,
      PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
      WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE
      COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH
      COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
      SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER
      CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
      APPLICABLE STATE SECURITIES LAWS.”

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    9.  REGISTRATION
      UNDER THE SECURITIES ACT OF 1933

     

    The
      Company agrees to register the Warrant Shares for resale under the Act on the
      terms and subject to the conditions set forth in the Amended and Restated
      Registration Rights Agreement (the “Registration Rights Agreement”)
      between the Company and each of the investors in the Private Placement Offering
      the “PPO”) pursuant to which this Warrant was originally issued.

     

    10.  NOTICES

     

    All
      notices, consents, waivers, and other communications under this Warrant must
      be
      in writing and will be deemed given to a party when (a) delivered to the
      appropriate address by hand or by nationally recognized overnight courier
      service (costs prepaid); (b) sent by facsimile with confirmation of transmission
      by the transmitting equipment; (c) received or rejected by the addressee, if
      sent by certified mail, return receipt requested, or (d) seven days after the
      placement of the notice into the mails (first class postage prepaid), to the
      Holder at the address or facsimile address furnished by the registered Holder
      to
      the Company in accordance with the Amended and Restated Purchase Agreement
      utilized in connection with the PPO, or if to the Company, to it at 95 Morton
      Street, New York, NY 10014, Attention: Chief Executive Officer (or to such
      other
      address, facsimile number, e-mail address as the Holder or the Company as a
      party may designate by notice the other party).

     

    11.  SEVERABILITY

     

    If
      a
      court of competent jurisdiction holds any provision of this Warrant invalid
      or
      unenforceable, the other provisions of this Warrant will remain in full force
      and effect.  Any provision of this Warrant held invalid or
      unenforceable only in part or degree will remain in full force and effect to
      the
      extent not held invalid or unenforceable.

     

    12.   BINDING
      EFFECT

     

    This
      Warrant shall be binding upon and inure to the sole and exclusive benefit of
      the
      Company, its successors and assigns, the registered Holder or Holders from
      time
      to time of this Warrant and the Warrant Shares.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    13.  SURVIVAL
      OF RIGHTS AND DUTIES

     

    This
      Warrant Certificate shall terminate and be of no further force and effect on
      the
      earlier of 5:00 P.M., New York Time, on the Expiration Date or the date on
      which
      this Warrant has been exercised.

     

    14.  GOVERNING
      LAW

     

    This
      Warrant will be governed by and construed under the laws of New York without
      regard to conflicts of laws principles that would require the application of
      any
      other law.

     

    15.  CALL
      PROVISIONS

     

    In
      the
      event that the closing bid price of a share of Common Stock as traded on a
      national securities exchange or the Over-the-Counter Bulletin Board equals
      or
      exceeds $3.00 (appropriately adjusted for any stock split, reverse stock split,
      stock dividend or other reclassification or combination of the Common Stock
      occurring after the date hereof) for at least 20 consecutive trading days during
      any period of thirty (30) consecutive trading days during which a registration
      statement (as required by the Registration Rights Agreement) has been effective
      and the daily volume of Common Stock traded on each such day is at least 200,000
      shares  (the "Trading Condition"), the Company, upon thirty (30) days
      prior written notice (the "Notice Period") given to the Holder no more than
      two
      trading days after the last day in such 20 day period, may call this Warrant
      at
      a redemption price equal to $0.01 per share of Common Stock then purchasable
      pursuant to this Warrant; provided that (i) the Company simultaneously calls
      all
      Warrants on the same terms and (ii) all of the Warrant Shares issuable hereunder
      either (A) are registered pursuant to an effective registration statement (as
      required by the Registration Rights Agreement) which has not been suspended
      and
      for which no stop order is in effect, and pursuant to which the Holder is able
      to sell Warrant Shares at all times during the Notice Period and is reasonably
      expected to be able to sell Warrant Shares for a period of 30 days after the
      Notice Period or (B) no longer constitute Registrable Securities (as defined
      in
      the Registration Rights Agreement).  Notwithstanding any such notice
      by the Company, the Holder shall have the right to exercise this Warrant prior
      to the end of the Notice Period.

     

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    

     

     

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized as of the date hereof.

     

     

    

    
      	 	MOHEN,
              INC.	 
	 	 	 	 
	
               

            	
              By:
                

            	 	 
	 	 	Name Orville
              Hagler	 
	 	 	Title Corporate
              Secretary	 
	 	 	 	 

    

     

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      A

     

    EXERCISE
      FORM

     

    (To
      be executed by the Holder of Warrant if such Holder desires to exercise
      Warrant)

     

    To
      Mohen,
      Inc.:

     

    The
      undersigned hereby irrevocably elects:

     

    [   ]
      to exercise this Warrant and to purchase thereunder, ___________________ full
      shares of Mohen, Inc. common stock issuable upon exercise of the Warrant and
      delivery of $_________ (in cash as provided for in the foregoing Warrant) and
      any applicable taxes payable by the undersigned pursuant to such Warrant;
      or

     

    [   ]
      to receive shares of Common Stock having a value equal to the value of the
      Warrant calculated in accordance with Section 1(d) of the Warrant.

     

    The
      undersigned requests that certificates for such shares be issued in the name
      of:

     

    
      

    

     

    (Please
      print name, address and social security or federal employer identification
      number (if applicable)

     

    
      

    

     
      
        

      

    

     

    If
      the
      shares issuable upon this exercise of the Warrant are not all of the Warrant
      Shares which the Holder is entitled to acquire upon the exercise of the Warrant,
      the undersigned requests that a new Warrant evidencing the rights not so
      exercised be issued in the name of and delivered to:

     

    
      

    

     

    (Please
      print name, address and social security or federal employer identification
      number (if applicable)

     

    
      

    

     

    
      

    

     

     

    Name
      of
      Holder (print): _______________________________

     

    (Signature):________________________________________

     

    (By:) _____________________________________________

     

    (Title:)____________________________________________

     

    Dated: ______________,
      ____

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

     

    FORM
      OF ASSIGNMENT

     

     

     

    FOR
      VALUE
      RECEIVED, ___________________________________ hereby sells, assigns and
      transfers to each assignee set forth below all of the rights of the undersigned
      under the Warrant (as defined in and evidenced by the attached Warrant) to
      acquire the number of Warrant Shares set opposite the name of such assignee
      below and in and to the foregoing Warrant with respect to said acquisition
      rights and the shares of Mohen, Inc. d/b/a/ Spiral Frog issuable upon exercise
      of the Warrant:

     

     

     

    
      	
              Name
                of Assignee

            	 	
              Address

            	 	
              Number
                of Warrant Shares

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    If
      the
      total of the Warrant Shares are not all of the Warrant Shares evidenced by
      the
      foregoing Warrant, the undersigned requests that a new Warrant evidencing the
      right to acquire the Warrant Shares not so assigned be issued in the name of
      and
      delivered to the undersigned.

     

     

    
      Name
        of
        Holder (print): _______________________________

       

      (Signature):________________________________________

       

      (By:) _____________________________________________

       

      (Title:)____________________________________________

       

      Dated: ______________,
        ____

    

    Name
      of
      Holder (print):    

     

     

     

     

    15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]