Document:

NEITHER THIS WARRANT NOR THE SHARES
OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE
STATE SECURITIES LAW AND NEITHER MAY BE SOLD OR OTHERWISE
TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
FORM AND SUBSTANCE OF WHICH IS ACCEPTABLE TO THE ISSUER.

    

    

    MERRIMAN
CURHAN FORD GROUP, INC.

    

    COMMON
STOCK PURCHASE WARRANT

    

    
      	
              Warrant
      No. _______

            	
              ___________Shares

            

    

    

    Original
Issue Date: July 31, 2009

    

    THIS
CERTIFIES THAT, FOR VALUE RECEIVED,
______________________________________, or its registered assigns (the
"Holder")
is entitled to purchase, on the terms and conditions hereinafter set forth, at
any time in whole or in part from the Original Issue Date set forth above until
5:00 p.m., Eastern Time, on the tenth anniversary of the Original Issue Date, or
if such date is not a day on which the Company (as hereinafter defined) is open
for business, then the next succeeding day on which the Company is open for
business (such date is the "Expiration
Date"), but not thereafter,
________________________________(____________) shares of the Common Stock,
$0.0001 par value per
share (the "Common
Stock"), of MERRIMAN
CURHAN FORD GROUP,
INC., a Delaware corporation (the "Company"),
at Sixty Five Cents ($0.65) per share (the "Exercise
Price"), such number of shares and Exercise Price being subject to
adjustment upon the occurrence of the contingencies set forth in this Warrant.
Each share of Common Stock as to which this Warrant is exercisable is a "Warrant
Share" and all such shares are collectively referred to as the "Warrant
Shares." 

    

    Section
1. Definitions.

    

    (a)
"Effective
Date" shall mean the date on which the Warrant shall be deemed to have
been exercised.

    

    (b)
"Initial Issuance
Date" shall mean the date first written above.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
2. Exercise of
Warrant; Conversion of Warrant.

    

    (a) This
Warrant may, at the option of the Holder, be exercised in whole or in part from
time to time, on or before 5:00 p.m., Eastern Time, on the Expiration Date, by
delivery to the Company at its principal office (i) a written notice of
such Holder's election to exercise this Warrant (the "Exercise
Notice"), which notice may be in the form of the Notice of Exercise
attached hereto, properly executed and completed by the Holder or an authorized
officer thereof, (ii) a check or other funds (the "Funds")
payable to the order of the Company, in an amount equal to the product of the
Exercise Price multiplied
by the number of Warrant Shares specified in the Exercise Notice, and
(iii) this Warrant (the items specified in (i), (ii), and (iii) are
collectively the "Exercise
Materials"); provided,
however, that if this Warrant is not exercised in whole immediately prior
to the consummation by the Company of a Change in Control Event (as defined
below), then immediately following the consummation by the Company of such
Change in Control Event, this Warrant will not be exercisable and shall be null
and void for all purposes. Notwithstanding anything in this Warrant Agreement to
the contrary, if this Warrant shall not have been exercised in full immediately
prior to a Change in Control Event, then this Warrant shall be automatically
exercised pursuant to Section 3 below, without further action on the part of the
Holder (and the Holder hereof shall be deemed to be a holder of the Common Stock
issued upon such automatic exercise), immediately prior to the Change in Control
Event, unless at any time on or before such time, the Holder shall notify the
Company in writing that no such automatic exercise is to occur. “Change in
Control Event” shall mean (i) the
acquisition of the Issuer by another entity by means of any transaction or
series of related transactions to which the Issuer is party (including, without
limitation, any stock acquisition, reorganization, merger or consolidation but
excluding any sale of stock for capital raising purposes) other than a
transaction or series of transactions in which the holders of the voting
securities of the Issuer outstanding immediately prior to such transaction
continue to retain (either by such voting securities remaining outstanding or by
such voting securities being converted into voting securities of the surviving
entity), as a result of shares in the Issuer held by such holders prior to such
transaction, at least 50% of the total voting power represented by the voting
securities of the Issuer or such surviving entity outstanding immediately after
such transaction or series of transactions; (b) a sale, lease or other
conveyance of all or substantially all of the assets of the Issuer; or
(c) any liquidation, dissolution or winding up of the Issuer, whether
voluntary or involuntary.

    

    (b) As
promptly as practicable, and in any event within five (5) business days after
the later of (i) its receipt of the Exercise Materials and (ii) the clearing of
the Funds, the Company shall execute or cause to be executed and delivered to
the Holder a certificate or certificates representing the number of Warrant
Shares specified in the Exercise Notice, together with cash in lieu of any
fraction of a share. The stock certificate or certificates shall be registered
in the name of the Holder or such other name or names as shall be designated in
the Exercise Notice. The Effective Date and the date the person in whose name
any certificate evidencing the Common Stock issued upon the exercise hereof is
issued shall be deemed to have become the holder of record of such shares, shall
be the date the Company receives the Exercise Materials, irrespective of the
date of delivery of a certificate or certificates evidencing the Common Stock
issued upon the exercise or conversion hereof, provided, however, that if the Exercise
Materials are received by the Company on a date on which the stock transfer
books of the Company are closed, the Effective Date shall be the next succeeding
date on which the stock transfer books are open. If this Warrant shall have been
exercised only in part, then, unless this Warrant has expired, the Company
shall, at its expense, at the time of delivery of such certificates, deliver to
the Warrantholder a new Warrant representing the right to purchase the number of
shares with respect to which this Warrant shall not then have been exercised. In
the event that this Warrant is exercised, in whole in connection with a Change
in Control Event, the Effective Date shall be the date of the consummation by
the Company of such Change in Control Event. All shares of Common Stock issued
upon the exercise or conversion of this Warrant will, upon issuance, be fully
paid and non-assessable and free from all taxes, liens, and charges with respect
thereto.

     

    
      
         

      

      
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    Section
3. Cashless
Exercise. In
lieu of exercising this Warrant pursuant to Section 2(c), the
Holder may elect to receive, without payment by the Holder of any additional
consideration, shares of Common Stock equal to the value of this Warrant (or the
portion thereof being cancelled) by surrender of this Warrant at the principal
office of the Company together with an Exercise Notice, in which event the
Company shall issue to the Holder a number of shares of Common Stock computed
using the following formula:

    

    

    Y (A -
B)

    X=

    A

    

    Where:

    X
=

    The
number of shares of Common Stock to be issued to the

    Holder
pursuant to this cashless exercise;

    

    
      Y
=

    

    The
number of Warrant Shares in respect of which the cashless exercise election is
made;

    

    
      A
=

    

    The fair
market value of one (1) share of Common Stock at the time the cashless exercise
election is made; and

    

    B
=

    The
Exercise Price (as adjusted to the date of the cashless exercise)

     

    
 

    
      
         

      

      
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    For
purposes of this Section 3, the fair
market value of one (1) share of Common Stock as of a particular date shall be
determined as follows: (i) if listed or quoted for trading on a securities
market or exchange, the value shall be deemed to be the average closing price of
the securities on such exchange over the thirty (30) day period ending three (3)
days prior to the cashless exercise election; (ii) if traded over-the-counter,
the value shall be deemed to be the average of the closing bid or sale prices
(whichever is applicable) over the thirty (30) day period ending three (3) days
prior to the cashless exercise election; and (iii) if there is no active public
market, the value shall be the fair market value thereof, as jointly determined
in good faith by the Holder and the Company's Board of Directors. If the Holder
and the Company's Board of Directors are unable to reach such a determination,
the Holder and the Company's Board of Directors shall jointly select an
appraiser, who is experienced in such matters. The decision of such appraiser
shall be final and conclusive, and the cost of such appraiser shall be borne
equally by the Holder and the Company.

    

    Section
4. Adjustments to Warrant
Shares;
Antidilution. The Exercise Price and
number of Warrant Shares issuable upon exercise of this Warrant are subject to
adjustment from time to time as set forth in this Section
4.

    

    (a) Subdivisions, Combinations
and Other Issuances. If the Company shall at any time prior to the
expiration of this Warrant subdivide its Common Stock, by split-up or otherwise,
or combine its Common Stock, or issue additional shares of its Common Stock as a
dividend, the number of Warrant Shares issuable on the exercise of this Warrant
shall forthwith be proportionately increased in the case of a subdivision or
stock dividend, or proportionately decreased in the case of a combination.
Appropriate adjustments shall also be made to the Exercise Price, but the
aggregate Exercise Price payable for the total number of Warrant Shares
purchasable under this Warrant (as adjusted) shall remain the same. Any
adjustment under this Section 4(a) shall
become effective at the close of business on the date the subdivision or
combination becomes effective, or as of the record date of such dividend, or in
the event that no record date is fixed, upon the making of such
dividend.

    

    (b) Reclassification,
Reorganization and Consolidation. In case of any reclassification,
capital reorganization, or change in the Common Stock of the Company (other than
as a result of a subdivision, combination, or stock dividend provided for in
Section 4(a)
above), then, as a condition of such reclassification, reorganization, or
change, lawful provision shall be made, and duly executed documents evidencing
the same from the Company or its successor shall be delivered to the Holder, so
that the Holder shall have the right at any time prior to the expiration of this
Warrant to purchase, at a total price equal to that payable upon the exercise of
this Warrant, the kind and amount of shares of stock and other securities and
property receivable in connection with such reclassification, reorganization, or
change by a holder of the same number of shares of Common Stock as were
purchasable by the Holder immediately prior to such reclassification,
reorganization, or change. In any such case appropriate provisions shall be made
with respect to the rights and interest of the Holder so that the provisions
hereof shall thereafter be applicable with respect to any shares of stock or
other securities and property deliverable upon exercise hereof, and appropriate
adjustments shall be made to the Exercise Price payable hereunder, provided the
aggregate Exercise Price shall remain the same.

     

    
      
         

      

      
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    (c) Full
Ratchet.  If, after the date hereof, the Company issues “Additional Shares
of Common” as defined below, at a price less than $0.43 per share: (i)
the Exercise Price of this Warrant shall be reduced to1.5 times the issue price
of such Additional Shares of Common; and (ii) the number of shares of Common
Stock for which this Warrant is exercisable shall equal the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
reduction of the Exercise Price times a fraction (x) the numerator of which is
the Exercise Price immediately prior to such reduction, and (y) the denominator
of which is the reduced Exercise Price (as set forth in clause (i) immediately
above).  No adjustment in the Exercise Price shall be made if such
adjustment would result in an Exercise Price below the higher of (A) the book
value per share of Common Stock, and (B) the closing consolidated bid price per
share of Common Stock, on the date hereof, or which would result
in this Warrant being exercisable for shares representing more than 19.9% of the
Company’s outstanding Common Stock, each as calculated in accordance with Nasdaq
Listing Rules, unless the provisions
of this Section 4(c) are first approved by the Company’s stockholders in
accordance with Nasdaq Listing Rules.  The Company agrees to include a
proposal for such approval in the proxy statement sent to stockholders in
connection with the Company’s next meeting of stockholders unless such inclusion
is waived by Holder.  No adjustment in the Exercise Price shall be
made in respect of the issuance of Additional Shares of Common unless the
consideration actually received per share for an Additional Share of Common
issued or deemed to be issued by the Company is less than the Exercise Price in
effect on the date of, and immediately prior to, such
issuance.  “Additional Shares
of Common” shall mean all shares of Common Stock issued or deemed to be
issued by the Company after the date hereof, other than issuances or deemed
issuances of:

    

    (i) shares of Common Stock issued or
issuable to officers, directors and employees of, or consultants to, the Company
pursuant to stock grants, option plans, purchase plans or other employee stock
incentive programs or arrangements approved by the Board of Directors, including
or upon exercise of options or warrants granted to such parties pursuant to any
such plan or arrangement;

    

    (ii)
shares of Common Stock issued upon the exercise or conversion of options or
convertible securities outstanding as of the date hereof;

    

    (iii)
shares of Common Stock issued or issuable pursuant to any event for which
adjustment is made pursuant to paragraph 4(a) or 4(b) hereof;

    

    (iv)
shares of Common Stock issued or issuable pursuant to the acquisition of another
entity by the Company by merger, purchase of stock, purchase of substantially
all of the assets or other reorganization or to a joint venture agreement,
provided that such issuances are approved by the Board of
Directors;

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
 

    (v)
shares of Common Stock issued or issuable to banks, equipment lessors or other
financial institutions pursuant to a debt financing or commercial leasing
transaction that is not effected primarily for capital raising purposes and that
is approved by the Board of Directors;

    

    (vi)
shares of Common Stock issued or issuable in connection with sponsored
collaboration, marketing or other similar strategic agreements or strategic
partnerships approved by the Board of Directors; and

    

    (vii)
shares of Common Stock issued or issuable to suppliers or third party service
providers in connection with the provision of goods or services pursuant to
transactions approved by the Board of Directors.

    

    (d) Calculations. All
calculations under this Section 4 shall be
made to the nearest cent or the nearest 1/100th of a share, as applicable. The
number of shares of Common Stock outstanding at any given time shall not include
shares owned or held by or for the account of the Company, and the disposition
of any such shares shall be considered an issue or sale of Common
Stock.

    

    (e) Warrant
Shares. The Company covenants and agrees that all Warrant Shares
which may be issued will, upon issuance, be validly issued, fully paid, and
non-assessable. The Company further covenants and agrees that the Company will
at all times have authorized and reserved, free from preemptive rights, a
sufficient number of shares of its Common Stock to provide for the exercise of
this Warrant in full.

    

    Section
5. Notice of
Adjustments. Upon the occurrence of each adjustment pursuant to Section 4, the
Company at its expense will promptly compute such adjustment in accordance with
the terms of this Warrant and prepare a certificate setting forth such
adjustment, including a statement of the adjusted Exercise Price, describing the
transactions giving rise to such adjustments and showing in detail the facts
upon which such adjustment is based. When any such adjustment is required to be
made, the Company will promptly, but in any event no later than ten (10) days
after said adjustment, notify the Holder of the event giving rise to such
adjustment and deliver a copy of each such certificate to the
Holder.

    

    Section
6. Registration Rights.
The Holder shall be entitled to registration rights with respect to the Warrant
Shares as set forth in the Subscription Agreement by and among the Company
and the purchasers set forth on Schedule A thereto, dated June 1, 2009 (the
“Subscription Agreement”).  If the Company enters into an Investors
Rights Agreement or other agreement granting registration rights which are
superior to, or additional to, the registration rights set forth in the
Subscription Agreement at any time while this Warrant is outstanding,
Holder shall be entitled to the registration rights provided for in that
agreement.  For purposes of the second to last sentence of Section
6(f) of the Subscription Agreement, the “aggregate purchase price paid by such
Subscriber pursuant to this Subscription Agreement for any Registrable
Securities”, with respect to the Warrant Shares and the Secured Promissory Note
pursuant to which this Warrant was issued shall be Five Hundred Thousand Dollars
($500,000).

     

    
      
         

      

      
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    Section
7. No Stockholder
Rights. This Warrant shall not entitle Holder to any voting rights or
other rights as a stockholder of the Company.

    

    Section
8. Transfer of
Securities.

    

    (a) This
Warrant and the Warrant Shares and any shares of capital stock received in
respect thereof, whether by reason of a stock split or share reclassification
thereof, a stock dividend thereon, or otherwise, shall not be transferable
except upon compliance with the provisions of the Securities Act of 1933, as
amended (the "Securities
Act"), and applicable state securities laws with respect to the transfer
of such securities. The Holder, by acceptance of this Warrant, agrees to be
bound by the provisions this Section 8 hereof
and to indemnify and hold harmless the Company against any loss or liability
arising from the disposition of this Warrant or the Warrant Shares issuable upon
exercise hereof or any interest in either thereof in violation of the provisions
of this Warrant.

    

    (b) Each
certificate for the Warrant Shares and any shares of capital stock received in
respect thereof, whether by reason of a stock split or share reclassification
thereof, a stock dividend thereon, or otherwise, and each certificate for any
such securities issued to subsequent transferees of any such certificate shall
(unless otherwise permitted by the provisions hereof) be stamped or otherwise
imprinted with a legend in substantially the following form:

    

     

    “THE SHARES OF COMMON STOCK
REPRESENTED BY THIS
CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE STATE
SECURITIES LAW AND MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
FORM AND SUBSTANCE OF WHICH IS ACCEPTABLE TO THE ISSUER.”
         

     

    Section
9. Replacement of
Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and
upon cancellation hereof, or in lieu of and substitution for this Warrant, a new
warrant (the "New
Warrant"), but only upon receipt of evidence reasonably satisfactory to
the Company of such loss, theft or destruction and customary and reasonable bond
or indemnity, if requested.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
 

    Section
10. Miscellaneous.
 

    

    (a) The
terms of this Warrant shall be binding upon and shall inure to the benefit of
any successors or permitted assigns of the Company and the Holder.

    

    (b)
Except as otherwise provided herein, this Warrant and all rights hereunder are
transferable by the registered holder hereof in person or by duly authorized
attorney on the books of the Company upon surrender of this Warrant, properly
endorsed, to the Company. The Company may deem and treat the registered holder
of this Warrant at any time as the absolute owner hereof for all purposes and
shall not be affected by any notice to the contrary.

    

    (c)
Notwithstanding any provision herein to the contrary, the Holder may not
exercise, sell, transfer, or otherwise assign this Warrant unless the Company is
provided with an opinion of counsel satisfactory in form and substance to the
Company, to the effect that such exercise, sale, transfer, or assignment would
not violate the Securities Act or applicable state securities laws.

    

    (d) All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice. Any notice or other communication required or permitted to be
given hereunder shall be deemed effective (a) upon hand delivery or delivery by
facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the
first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received)
or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be: (i) if to the Company, to: Merriman Curhan Ford Group,
Inc., 600 California Street, 9th Floor, San Francisco, California 94108,
Attention: Chief Financial Officer, telecopier: (415) 415-248-5690, (ii) if to
the Holder to: the address and telecopier number indicated in the Company’s
records, as may be updated in accordance with the provisions
hereof.

     

    
      
         

      

      
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    (e) This
Warrant shall be governed by and construed in accordance with the laws of the
State of California without regard to principles of conflicts of laws. Any
action brought by either party against the other concerning the transactions
contemplated by this Warrant shall be brought only in the state courts of State
of California located in the city and county of San Francisco or in the federal
courts located in the city and county of San Francisco, California. The parties and the individuals
executing this Warrant and other agreements referred to herein or delivered in
connection herewith on behalf of the Company agree to submit to the jurisdiction
of such courts and waive trial by jury. The prevailing party shall be
entitled to recover from the other party its reasonable attorney’s fees and
costs. In the event that any provision of this Warrant or any other agreement
delivered in connection herewith 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 any agreement.

    

    (f) The
headings herein are for convenience only, do not constitute a part of this
Warrant and shall not be deemed to limit or affect any of the provisions
hereof.

    

    (g) In
case any one or more of the provisions of this Warrant shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining
terms and provisions of this Warrant shall not in any way be affected or
impaired thereby and the parties will attempt in good faith to agree upon a
valid and enforceable provision which shall be a commercially reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Warrant.

    

    [The
remainder of this page intentionally left blank]

     

    

    

     

    
      
         

      

      
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    SIGNATURE
PAGE

    TO

    MERRIMAN
CURHAN FORD GROUP, INC.

    

    COMMON
STOCK PURCHASE WARRANT

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed in its name
by its duly authorized officers under seal, and to be dated as of the date first
above written.

    

    
      
        
          	 
      	 
      	 
      	 
	 
      	
                  MERRIMAN
      CURHAN FORD GROUP, INC.

                	 
	 
      	 
      	 
      	 
	 
      	
                  By:

                	 
      	 
	 
      	 
      	
                  Name:

                	 
	 
      	 
      	
                  Title:
       

                	 

        

      

    

    

    

    [Signature
Page to Merriman Curhan Ford Group, Inc. Common Stock Purchase
Warrant]

    

    

     

    

     

    

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    

    ASSIGNMENT

    

    (To be
Executed by the Holder to effect a transfer of the foregoing
Warrant)

    

    FOR VALUE
RECEIVED, the undersigned hereby sells, and assigns and transfers unto
______________________ the foregoing Warrant and the rights represented thereto
to purchase shares of Common Stock, par value $0.0001 per share, of MERRIMAN
CURHAN FORD GROUP, INC. in accordance with terms and conditions thereof, and
does hereby irrevocably constitute and appoint ________________ Attorney to
transfer the said Warrant on the books of the Company, with full power of
substitution.

    

    
      
        
          
            
              
                	 
      	 
      	 
	 
      	
                        Holder:

                      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	
                        Address

                      	 
	 
      	 
      	 
	 
      	
                        Dated:
      __________________, 20__

                      	 
	 
      	 
      	 
	 
      	
                        In
      the presence of:

                      	 
	 
      	 
      	 
	 
      	 
      	 

              

            

          

        

      

    

    

    

     

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

     

    

    NOTICE
OF EXERCISE

    

    [To be
signed only upon exercise of Warrant]

    

    To:

    MERRIMAN
CURHAN FORD GROUP, INC.

    

    The
undersigned Holder of the attached Warrant hereby irrevocably elects to exercise
the Warrant for, and to purchase thereunder, _________ shares of Common Stock,
par value $0.0001 per share, of MERRIMAN CURHAN FORD GROUP, INC., issuable upon
exercise of said Warrant and hereby surrenders said Warrant.

    

    The
undersigned herewith requests that the certificates for such shares be issued in
the name of, and delivered to the undersigned, whose address is
________________________________.

    

    

    

    If
electronic book entry transfer, complete the following:

    

    Account
Number:   ____________________________

    

    Transaction
Code Number: ______________________

    

    Dated:
___________________

    

    
      	 
      	 
      	 
      
	 
      	
              Holder:

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

            

    

    

    

    NOTICE

    

    The
signature above must correspond to the name as written upon the face of the
within Warrant in every particular, without alteration or enlargement or any
change whatsoever.

     

    
      
         

      

      
        12Unassociated Document

    THE
TAKING OF THIS DOCUMENT OR ANY CERTIFIED COPY OF THIS DOCUMENT OR ANY DOCUMENT
WHICH CONSTITUTES SUBSTITUTE DOCUMENTATION THEREOF, INCLUDING WRITTEN
CONFIRMATIONS OR REFERENCES THERETO, INTO AUSTRIA AS WELL AS PRINTING OUT ANY
E-MAIL COMMUNICATION WHICH REFERS TO THIS DOCUMENT IN AUSTRIA OR SENDING ANY
E-MAIL COMMUNICATION CARRYING AN ELECTRONIC OR DIGITAL SIGNATURE WHICH REFERS TO
THIS DOCUMENT TO AN AUSTRIAN ADDRESSEE MAY CAUSE THE IMPOSITION OF AUSTRIAN
STAMP DUTY. ACCORDINGLY, KEEP THE ORIGINAL DOCUMENT AS WELL AS ALL CERTIFIED
COPIES THEREOF AND WRITTEN AND SIGNED REFERENCES THERETO OUTSIDE OF AUSTRIA AND
AVOID PRINTING OUT ANY E-MAIL COMMUNICATION WHICH REFERS TO THIS DOCUMENT IN
AUSTRIA OR SENDING ANY E-MAIL COMMUNICATION CARRYING AN ELECTRONIC OR DIGITAL
SIGNATURE WHICH REFERS TO THIS DOCUMENT TO AN AUSTRIAN ADDRESSEE.

     

     

     

     

    

     

     

     

    Austrian Gaming Industries GmbH

    (AGI or
Lender)

    

    and

    

    

    Octavian
International Ltd.

    (Company)

    

    

    

    

    

    

    

    

    Loan
Agreement

    

    

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      THE
TAKING OF THIS DOCUMENT OR ANY CERTIFIED COPY OF THIS DOCUMENT OR ANY DOCUMENT
WHICH CONSTITUTES SUBSTITUTE DOCUMENTATION THEREOF, INCLUDING WRITTEN
CONFIRMATIONS OR REFERENCES THERETO, INTO AUSTRIA AS WELL AS PRINTING OUT ANY
E-MAIL COMMUNICATION WHICH REFERS TO THIS DOCUMENT IN AUSTRIA OR SENDING ANY
E-MAIL COMMUNICATION CARRYING AN ELECTRONIC OR DIGITAL SIGNATURE WHICH REFERS TO
THIS DOCUMENT TO AN AUSTRIAN ADDRESSEE MAY CAUSE THE IMPOSITION OF AUSTRIAN
STAMP DUTY. ACCORDINGLY, KEEP THE ORIGINAL DOCUMENT AS WELL AS ALL CERTIFIED
COPIES THEREOF AND WRITTEN AND SIGNED REFERENCES THERETO OUTSIDE OF AUSTRIA AND
AVOID PRINTING OUT ANY E-MAIL COMMUNICATION WHICH REFERS TO THIS DOCUMENT IN
AUSTRIA OR SENDING ANY E-MAIL COMMUNICATION CARRYING AN ELECTRONIC OR DIGITAL
SIGNATURE WHICH REFERS TO THIS DOCUMENT TO AN AUSTRIAN
ADDRESSEE.

    

    

    

     

    Loan
Agreement

     

    Dated
... July  2009

     

    Between

     

    
      	
              (1)

            	
              Austrian
      Gaming Industries GmbH of Wiener Strasse 158, A-2352 Gumpoldskirchen,
      Austria, FN 109445 z (Lender);
      and

            

    

     

    
      	
              (2)

            	
              Octavian International
      Limited registered in England with number 04185988 of Bury House
      1-3 Bury Street, Guilford Surrey GU2 AW, UK (Company).

            

    

     

    It
is agreed as follows:

     

    
      	
              1

            	
              Definitions

            

    

     

    
      	
              1.1

            	
              In
      this Agreement, the following definitions shall
  apply:

            

    

     

    AGE 3.70 IP Rights has the
meaning given in clause 7.1(a);

     

    AGE Modifications has the
meaning given in clause 7.1(b);

     

    Business Day means any day on
which the banks in Vienna are generally open for business;

     

    Escrow Agent means NCC Escrow
International Limited, escrow agents with offices in Manchester,
England;

     

    Escrow Agreement means the
agreement entered into between the Escrow Agent, Lender and Company dated 30
October 2008;

     

    First Loan Agreement means the
loan agreement entered into between the Lender and the Company on 30 October
2008;

     

    First Transfer Agreement means
the agreement entered into between the Lender and the Company on 30 October 2008
in relation to the First Loan Agreement;

     

    Encumbrance means any
mortgage, charge, pledge, lien or any other security interest;

     

    Event of Default has the
meaning given in clause 6; IP
Rights has the meaning set out in the First and Second Transfer
Agreement

     

    Loan has the meaning given in
clause 2.1.

     

    Materials has the meaning set
out in the First Transfer Agreement;

     

    Products has the meaning set
out in the First Transfer Agreement; and

     

    Second Transfer Agreement
means the agreement signed on the same date as this Agreement relating to
the rights of the Lender in relation to the products and materials as set out in
the Second Transfer Agreement upon the occurrence of an Event of Default as per
Schedule 1;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2

            	
              Loan and
      Drawdown

            

    

     

    
      	
              2.1

            	
              The
      Lender grants to the Company a loan in the amount of USD 2,000,000.--
      (in words: two million  US Dollars), hereinafter referred to as
      the "Loan",
      subject to the provisions of this
Agreement.

            

    

     

    
      	
              2.2

            	
              The
      loan will be paid out to the Company in two instalments each of USD
      1.000.000; the first one within 5 working days of the execution of the
      Agreement and the second one on or about the 15th
      of August 2009. 

            

    

     

    
      	
              2.3

            	
              The
      Loan shall be conditional upon due execution of the Second Transfer
      Agreement. 

            

    

     

    
      	
              3

            	
              Interest

            

    

     

    
      	
              3.1

            	
              Interest
      shall accrue daily on the Loan in accordance with clause 3.2, from the
      date of this Agreement until the Loan is repaid in
  full.

            

    

     

    
      	
              3.2

            	
              Interest
      shall be calculated annually at a rate of 3 months USD-Libor as displayed
      for the relevant currency and for the relevant period on the appropriate
      page of the Reuters screen plus 4 per cent on the Loan (subject to a
      maximum cap on the interest rate of 8 per cent).
  

            

    

     

    
      	
              3.3

            	
              The
      Company will pay the accrued interest on a monthly basis on the last
      business day of each month.  Payment shall be made in accordance
      with clause 5 and subject to clause 10 to an account notified in writing
      by the Lender to the Company as per clause
5.

            

    

     

    
      	
              4

            	
              Repayments

            

    

     

    
      	
              4.1

            	
              The
      Loan shall be repayable as a bullet repayment on June 30th
      2010.

            

    

     

    
      	
              4.2

            	
              The
      Company may, by giving the Lender prior written notice, repay the Loan and
      any accrued but unpaid interest at any time in whole or in
      part.

            

    

     

    
      	
              5

            	
              Payment

            

    

     

    
      	
              5.1

            	
              The
      Company shall make its payments for the payable interest and the Loan
      exclusively to the below bank account of the
  Lender:

            

    

     

    Bank:
Bayerische Hypo- und Vereinsbank AG

     

    Account
number: 344 576 645

     

    SWIFT:HYVEDEMM478

     

    IBAN: DE
085 102 018 603 445 766 45

     

    
      	
              5.2

            	
              Unless
      required by law and unless the Company and the Lender agree otherwise, all
      payments made by the Company hereunder shall be made free and clear of and
      without any deduction for or on account of any tax, set-off or
      counterclaim.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              6

            	
              Default

            

    

     

    If, for
any reason whatsoever, any of the following events (each an "Event of Default")
occurs:

     

    
      	
              6.1.1

            	
              the
      Company fails to pay when due any sum payable under this Agreement and
      such failure is not rectified within 30 days of the due date for such
      payment; or

            

    

     

    
      	
              6.1.2

            	
              steps
      are taken for the winding-up or dissolution of the Company, the Company
      becomes insolvent or is deemed unable to pay its debts within the meaning
      of Section 123 of the Insolvency Act 1986; steps are taken by any person
      to appoint an administrative or other receiver of the Company or any of
      its property or assets; or steps are taken towards an application for an
      administration order in relation to the Company;
  or

            

    

     

    
      	
              6.1.3

            	
              it
      becomes impossible or unlawful, in the reasonable opinion of the Lender,
      to fulfil any of the obligations contained in this Agreement or for the
      Lender to exercise any of the rights vested in it under this
      Agreement,

            

    

     

    then the
Lender (i) by notice in writing to the Company, may terminate the
obligations of the Lender under this Agreement and/or may declare the
outstanding amount of the Loan and all accrued but unpaid interest immediately
due and payable, at which time it shall become immediately due and payable; and
(ii) may exercise its rights under the First Transfer Agreement (in
accordance with clause 7.1(a) below only and, for the avoidance of doubt, not
generally) and the Second Transfer Agreement.

     

    
      	
              7

            	
              Security

            

    

     

    
      	
              7.1

            	
              As
      security for the payment of the Loan pursuant to this Agreement, the
      Company agrees as follows.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Under
      the First Transfer Agreement, the Company has charged, amongst other
      things, the IP Rights in V3.70 of the Advanced Gaming Engine (the AGE 3.70 IP Rights) and
      the Company hereby agrees that the AGE 3.70 IP Rights shall also
      constitute security for the payment of the Loan and as such the parties
      hereby agree that a Condition under Article 1 of the First Transfer
      Agreement shall be extended to cover an Event of Default under this
      Agreement and upon satisfaction of the Condition under the First Transfer
      Agreement due to an Event of Default under this Agreement, the transfer of
      IP Rights as set out in Article 1 of the First Transfer Agreement shall be
      of the AGE 3.70 IP Rights and not of the IP Rights in any other Products
      and Materials.  For the avoidance of doubt, in the event that
      the Condition is satisfied by the occurrence of an Event of Default under
      the First Loan Agreement, the transfer under Article 1 of the First
      Transfer Agreement shall continue to be a transfer of the IP Rights in all
      Products and Materials as set out therein and the rights of the Lender
      under the First Loan Agreement and the First Transfer Agreement shall not
      be affected by this clause 7.1(a)

            

    

     

    
      	
               
      

            	
              (b)

            	
              enter
      into the Second Transfer Agreement in respect of all current and future
      modifications and updates to version 3.70 of the Advanced Gaming Engine
      and the AGE 3.70 IP Rights (including, without limitation, version 4.00)
      (the AGE
      Modifications) and comply with all obligations set out
      therein.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (c)

            	
              deposit
      with the Escrow Agent, all AGE Modifications promptly upon finalisation of
      such modifications and updates in accordance with the terms of the Escrow
      Agreement

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Company shall deliver to the Lender an amendment to the Escrow Agreement
      in substantially the form annexed hereto executed by the Company and the
      Escrow Agent (or with such changes as the Lender
  agrees).

            

    

     

    
      	
              7.2

            	
              The
      Company undertakes that it shall not, from the date of this Agreement
      until repayment of the Loan (and all interest accrued thereon) in full in
      accordance with the terms of this
Agreement:

            

    

     

    
      	
               
      

            	
              (a)

            	
              assign
      ownership of any of the AGE 3.70 IR Rights or any IP Rights in the AGE
      Modifications or to any person or legal entity other than the
      Lender;

            

    

     

    
      	
               
      

            	
              (b)

            	
              grant
      any licence or sub-licence of any AGE 3.70 IP Rights or any IP Rights in
      the AGE Modifications to any person other than in the ordinary course of
      business or with the prior written consent of the Lender;
    or

            

    

     

    
      	
               
      

            	
              (c)

            	
              create
      or permit to subsist any Encumbrance over AGE 3.70 IP Rights or any the IP
      Rights in the AGE Modifications other than pursuant to this Agreement and
      the Transfer Agreement or otherwise to the
  Lender.

            

    

     

    
      	
               
      

            	
              (d)

            	
              in
      Italy sell, deliver, distribute directly or indirectly any VLT systems
      (so-called Comma 6B) developed partially or in whole by the Company or any
      of its affiliated companies to any person or legal entity in Italy, except
      Atlantis World Giocolegale Limited for which the Lender shall appoint the
      Company as its exclusive
distributor.

            

    

     

    
      	
              7.3

            	
              For
      the avoidance of doubt, all parties acknowledge that the First Transfer
      Agreement includes the AGE 3.70 IP
Rights

            

    

     

    
      	
              8

            	
              Remedies and
      Waivers

            

    

     

    No
failure to exercise, or any delay in exercising, any right or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right or remedy prevent any further exercise thereof or the exercise of any
other right or remedy. The rights and remedies herein provided are cumulative
and not exclusive of any rights or remedies provided by law.

     

    
      	
              9

            	
              Assignment

            

    

     

    The
Lender (but not the Company) may assign any of its rights under this Agreement
to any person.

     

    
      	
              10

            	
              Place of
      Performance

            

    

     

    The
Parties agree that the exclusive place of performance (Erfüllungsort) for all rights
and obligations under this Agreement shall in any case be a place outside the
Republic of Austria, which especially means that all payment of amounts under
this Agreement shall be made from and to, respectively, a bank account outside
of the Republic of Austria. It is expressly agreed between the Parties hereto
that any performance within the Republic of Austria will not establish Austria
as the place of performance and shall be deemed not effective with respect to
any Party hereto. Further, the Parties agree that the fulfilment of any
contractual obligation under this Agreement within Austria does not result in a
discharge of debt.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              11

            	
              Stamp
    Duties

            

    

     

    All stamp
duties (Rechtsgeschäftsgebühren)
arising out of or in connection with this Agreement, if any, shall be solely
borne and paid by the Company. The Company shall indemnify and hold AGI and its
advisers harmless from and against any stamp duties payable by AGI or any of its
advisers.

     

    
      	
              12

            	
              Governing Law and Dispute
      Resolution

            

    

     

    This
Agreement shall be governed by and construed in accordance with Austrian law,
with the exception of (i) the UN Sales Convention and (ii) the conflict of law
rules of Austrian private international law.

     

    Any and
all disputes arising out of or in connection with this Agreement, including,
without limitation, a dispute as to the conclusion, validity or existence of
this Agreement, shall be finally and exclusively resolved and settled under the
Rules of Arbitration and Conciliation of the International Arbitral Centre of
the Economic Chamber Austria in Vienna, Austria, as amended from time to time
(the "Vienna Rules"), by
three arbitrators appointed in accordance with these rules. The language of the
arbitration shall be English. The seat of the arbitration shall be Munich. Any
award and/or final decision of the arbitrators shall include a decision on
costs, including, without limitation, fees of counsel. Each of the Parties
agrees not to resist the enforcement of any arbitration award obtained in
connection with this Agreement other than as expressly permitted by the 1958 New
York Convention on the Recognition and Enforcement of Foreign Arbitration
Awards.

     

    Notwithstanding
the foregoing, the Parties agree that, in addition to any and all other remedies
that may be available under this Agreement, each Party shall be entitled to
request injunctive relief or to initiate injunction proceedings at the
(ordinary) courts of competent jurisdiction.

     

    
      	
              13

            	
              Notices

            

    

     

    Any
notice(s) required or permitted in connection with this Agreement or by law
shall be given in writing by an authorized representative of the relevant Party
and shall be delivered by hand, sent to the recipient by certified or registered
mail or by international courier service (such as DHL, UPS or the like), or
facsimile transmission (with the original to follow within 5 Business Days) to
the address set forth below or an address to be provided by the relevant Party
(but in any case an address outside of Austria) in writing and by certified or
registered mail, postage prepaid, with reference to this Clause 10 to the
other Party. Any Notice shall be effective upon receipt and shall be deemed to
have been received:

     

    
      	
               
      

            	
              §

            	
              at
      the time of delivery, if delivered by hand, registered or certified mail
      or courier;

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              §

            	
              at
      the time of transmission in legible form, if delivered by
    fax.

            

    

     

    If to the
Company:

    Octavian
International Limited

    Legal
Department

    Attn:
Robert Jones

    Bury
House

    1-3 Bury
Street

    Guilford
Surrey GU2 4 AW

    UK

    Fax: +44
1 483 543 540

    

    If to the
Lender:

    Austrian
Gaming Industries GmbH

    c/o AGI
Hungária

    Mrs.
Ildikó Dachauer

    Attn:
Peter Stein

    9352
Veszkény

    Hungary

    Fax: +36
96 575 006

    

    The
Parties agree that notwithstanding any other provisions of this Agreement, any
communication to be made under or in connection with the Loan or this Agreement
shall be made to an address outside the Republic of Austria. The foregoing
sentence applies to any communication under or in connection made by fax,
electronic message, including in particular emails or attachments thereto, or in
any other written form relevant for purposes of the Austrian Stamp Duty Act
(GebG). In particular,
no such communication shall be sent, read, brought, transferred, saved or kept
within the Republic of Austria at any time.

     

    As
witness the hands of the duly authorised representatives of the parties hereto
the day and year first before written.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    
      Execution
page 

       

      
        	
                Signed
      by Zane Mersich

              	
                )

              	 
      
	
                duly
      authorised for and

              	
                )

              	 
      
	
                on
      behalf of

              	
                )

              	 
      
	
                AUSTRIAN
      GAMING

              	
                )

              	
                /s/Zane
      Mersich

              
	
                INDUSTRIES
      GmbH

              	
                )

              	 

      

      

      

      
        	
                Signed
      by Harmen Brenninkmeijer

              	
                )

              	 
      
	
                duly
      authorised for and

              	
                )

              	 
      
	
                on
      behalf of

              	
                )

              	 
      
	
                OCTAVIAN
      International

              	 
      	
                /s/Harmen
      Brenninkmeijer

              
	
                Limited

              	
                )

              	 

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Schedule
1

     

    Transfer
Agreement

     

    
      
        
        

      

      
        8

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