Document:

NEITHER
      THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE
      BORROWER UPON CONVERSION HEREOF (COLLECTIVELY, THE "SECURITIES")
      HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY
      STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY
      INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED: (i) IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
      1933 ACT, OR APPLICABLE STATE SECURITIES LAWS; OR (ii) IN THE
ABSENCE
      OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE
      ISSUER, THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT
      OR; (iii) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE
      144 UNDER THE 1933 ACT.

     

    CONVERTIBLE
      NOTE

     

    Teaneck,
      New Jersey

    
      	
               

              _____________________(the
                "Issuance Date")

            	
               

              $____________.00

            

    

     

    FOR
      VALUE RECEIVED, Herborium
      Group, Inc., a Nevada corporation (the "Company"),
      hereby promises to pay to the order of _____________________
      or his
      registered assigns (the "Holder") the principal
      amount of _____________________ and No/100 Dollars upon the earlier of (i)
      upon
      demand made any time after the date that is 12 months from initial issuance
      of a
      Note, (ii) the date upon which the Company completes the sale of Common Stock
      (or like security) for aggregate gross proceeds of at least $1.5 million (a
      “Qualified Financing”), or (iii) the closing of an acquisition of the Company,
      whether by material merger, reorganization, sale of assets or other similar
      material transaction (an “Acquisition”), (the "Maturity Date"), and
      to
      pay interest on the unpaid principal balance hereof at the rate of Ten percent
      (10%) per annum from the
      Issuance Date in accordance with the terms hereof or otherwise. The principal
      balance of this Note shall be
      payable pursuant to Paragraph 1. Interest on this Note shall accrue and be
      payable pursuant to Paragraph 1.
      Each
      capitalized term used herein, and not otherwise defined, shall have the meaning
      ascribed thereto in the
      Subscription Agreement, dated between
      the Company and the Holder (the "Subscription
      Document"),
      pursuant
      to which this convertible note (the "Note") was originally issued. The
term
      "Note" and all reference thereto, as used throughout this instrument, shall
      mean
      this instrument as originally
      executed, or if later amended or supplemented, then as so amended or
      supplemented. This Note and
      the
      Other Notes (as hereinafter defined) issued by the Company on the Issuance
      Date
      pursuant to Subscription
      Documents executed by the Company and purchasers of the Other Notes
      (collectively, the
      "Subscription
      Documents") are
      collectively referred to in this Note as the "Notes."

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.
      Payments
      of Principal and Interest. 

     

    (a) Payment
      of Principal.
      The
      principal balance of this Note shall be paid to the Holder hereof
      on
      the Maturity Date. The Company shall pay or prepay pro-rata portion outstanding
      principal balance
      to the Holder, thirty (30) days after the semi-annual date, and/or subject
      to
      section (2).

     

    (b) Payment
      of Interest.
      Interest on the unpaid principal balance of this Note shall accrue at a rate
      of
      Ten percent (10%) per annum commencing on the Issuance Date. Interest shall
      be
      computed on the
      basis
      of a 365-day year and actual days elapsed. Interest shall be paid in kind
      semi-annually at a price equal to $0.025 per share.
      Interest shall be due and payable semi-annually, in arrears.

     

    (c)  General
      Payment Provisions.
      All
      payments of principal and interest on this Note shall
      be
      made in lawful money of the United States of America by check to such account
      as
      the Holder may from
      time
      to time designate by written notice to the Company in accordance with the
      provisions of this Note. Whenever
      any amount expressed to be due by the terms of this Note is due on any day
      which
      is not a Business
      Day (as defined below), the same shall instead be due on the next succeeding
      day
      which is a Business
      Day and, in the case of any interest payment 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. For purposes of this Note, "Business
      Day"
      shall
      mean any day other than
      a
      Saturday, Sunday or a day on which commercial banks in the State of New York
      are
      authorized or required by
      law or
      executive order to remain closed. No payments of principal or interest shall
      be
      made on any Note unless such payment is made pro-rata to all holders of the
      Notes. 

     

    2.
      Conversion
      of Note.
      At any
      time six months after the Issuance Date, the principal and accrued interest
      on
      this Note may be convertible in whole or in part into shares of the Company's
      common stock, par value $.001 per share (the "Common
      Stock")
      at the
      option of the holder, on the terms and conditions set forth in this Paragraph
      2. 

     

    (a) Certain
      Defined Terms.
      For
      purposes of this Note, the following terms shall have the following
      meanings:

     

    (1) "Conversion
      Amount" means
      the
      sum of (A) the principal amount of this Note
      to
      be converted with respect to which this determination is being made, (B) accrued
      and unpaid interest,
      if so included at the Holder's sole discretion and (c) Default Interest, if
      any,
      on unpaid interest and principal, if so included at the Holder's sole
      discretion.

     

    (2) "Conversion
      Price" means
      two
      and a half cents ($0.025) or 20% discount on the price per share issued in
      a
      Qualified Financing.

     

    (3) "Other
      Notes" means
      the
      convertible notes, other than this Note, issued by the
      Company pursuant to Subscription Documents.

     

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

     

    (b)  Holder's
      Conversion Right.
      The
      Notes may be converted at the earlier of either (i) six months from the Issuance
      Date, or; (ii) a Qualified Financing, or; (iii) the closing of an Acquisition.
      

     

    The
      Holder shall be required to request conversions in increments of $1,000
      or
      more. The Company shall not issue any fraction of a share of Common Stock upon
      any conversion; if
      such
      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. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    This
      Note
      also contains an automatic principal redemption feature which requires the
      Company to escrow five percent (5%) of its gross revenues (the “Redemption
      Funds”) in a separate bank account. To the extent the Company generates revenues
      the holder of this Note shall receive re-payment of a portion of this Note
      on a
      semi-annual basis until such time that the total principal and any unpaid
      interest has been repaid. The Redemption Funds will be distributed pro-rata
      among the holders of the Notes within thirty (30) business days after the end
      of
      each semi-annual period. Redemption Funds paid to holders shall first be applied
      to any unpaid principal.

     

    (c) Conversion
      Rate.
      The
      number of shares of Common Stock issuable upon conversion of a Conversion Amount
      of this Note pursuant to Paragraph 2.(b) shall be determined according to the
      following formula (the "Conversion
      Rate"):

     

    Conversion
      Amount

    Conversion
      Price

     

    The
      Company will give prompt price notice to Note Holder concerning a financing
      or
      acquisition so that they will be able to decide whether to convert. The number
      of shares into which the Notes are convertible will equal the quotient of the
      converted principal and interest divided by the price per share issued in a
      Qualified Financing or Acquisition at a twenty percent (20%) discount, or at
      $0.025. 

     

    (d) Mechanics
      of Conversion.
      The
      conversion of this Note shall be conducted in the following manner:

     

    (1) Holder's
      Delivery Requirements.
      To
      convert this Note into shares of Common Stock on any date set forth in the
      Conversion Notice by the Holder (the "Conversion Date"), the Holder hereof
      shall
      (A) transmit by facsimile (or otherwise deliver), for receipt on or prior
      to
      11:59 p.m., Eastern Time on such date, a copy of a fully executed notice of
      conversion in the form
      attached hereto as Exhibit 2.(d)(1) (the "Conversion
      Notice")
      to the
      Company; and (B) surrender
      to a common carrier for delivery to the Company as soon as practicable following
      the date of
      the
      Conversion Notice original of the Note being converted.

     

    (2) Company's
      Response.
      Upon
      receipt by the Company of a copy of a Conversion Notice, the Company shall
      as
      soon as
      practicable,
      but in no event later than five (5) Business Days after receipt of such
      Conversion Notice, send, via facsimile and overnight courier, a confirmation
      of
      receipt of such Conversion Notice (the "Conversion
      Confirmation") to
      such
      Holder indicating that the Company will process such Conversion Notice in
      accordance with the terms
      herein. Within fifteen (15) Business Days after the date of the Conversion
      Confirmation, the Company
      shall issue and surrender to a common carrier for delivery to the address as
      specified in the Conversion
      Notice, a certificate, registered in the name of the Holder, for the number
      of
      shares of Common Stock to which the Holder shall be entitled. If less than
      the
      full principal amount of this Note is submitted for conversion, then the Company
      shall within fifteen (15) Business Days after receipt of the Note and at its
      own
      expense, issue and deliver to the Holder a new Note for the outstanding
      principal amount not so converted; provided that such new Note shall be
      substantially in the same form as this Note.

     

    (3) Record
      Holder.
      The
      person or persons entitled to receive the shares of Common
      Stock issuable upon a conversion of this Note shall be treated for all purposes
      as the record holder
      or
      holders of such shares of Common Stock on the Conversion Date.

     

    (e) Taxes.
      The
      Company shall pay any and all taxes that may be payable with respect
to
      the
      issuance and delivery of Common Stock upon the conversion of Notes.

     

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

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    3. Other
      Rights of Holders.

     

    These
      events may constitute an acquisition, therefore Notes will either need to be
      converted at a 20% discount or redeemed.

     

    (a)
      Reorganization,
      Reclassification, Consolidation, Merger or Sale.
      Any
recapitalization,
      reorganization, reclassification, consolidation, merger, sale of all or
      substantially all of the Company's
      assets to another Person or other transaction which is effected in such a way
      that holders of Common Stock are entitled to receive (either directly or upon
      subsequent liquidation) stock, securities or assets with respect to or in
      exchange for Common Stock is referred to herein as "Organic Change."
      Prior
      to
      the
      consummation of any (i) Organic Change or (ii) other Organic Change following
      which the Company is
      not a
      surviving entity, the Company will secure from the Person purchasing such assets
      or the successor resulting
      from such Organic Change (in each case, the "Acquiring
      Entity")
      a
      written agreement (in form and substance
      reasonably satisfactory to the holders of a majority of the Notes then
      outstanding) to deliver to each Holder
      in
      exchange for this Note, a security of the Acquiring Entity evidenced by a
      written instrument substantially similar in form and substance to this Note,
      and
      reasonably satisfactory to the Holders of a majority of the Conversion Amount
      of
      the Notes then outstanding. Prior to the consummation of any other Organic
      Change, the Company shall make appropriate provision (in form and substance
      reasonably satisfactory
      to the Holders of a majority of the Conversion Amount of the Notes then
      outstanding) to ensure that
      each
      of the Holders will thereafter have the right to acquire and receive in lieu
      of
      or in addition to (as the case
      may
      be) the shares of Common Stock immediately theretofore acquirable and receivable
      upon the conversion of such Holder's Note, such shares of stock, securities
      or
      assets that would have been issued or payable
      in such Organic Change with respect to or in exchange for the number of shares
      of Common Stock which would have been acquirable and receivable upon the
      conversion of such Holder's Note as of the date of
      such
      Organic Change (without taking into account any limitations or restrictions
      on
      the convertibility of the Note).

     

    1. Out
      of
      State Execution.
      The
      Company and the Holder hereby acknowledge that this Note was
      executed by the Company outside the State of New York and delivered to Holder
      outside the State of New
      York.
      Further, the Holder acknowledges that the Holder took possession and custody
      of
      the Note outside the
      State
      of New York.

     

    2. Reservation
      of Shares.
      The
      Company shall at all times, so long as any principal amount of the
      Notes
      is outstanding, reserve and keep available out of its authorized and unissued
      Common Stock, solely for
      the
      purpose of effecting the conversion of the Notes, such number of shares of
      Common Stock as shall at
      all
      times be sufficient to effect the conversion of all of the principal amount
      of
      the Notes then outstanding; provided
      that the number of shares of Common Stock so reserved shall at no time be less
      than one hundred ten percent (110%) of the number of shares of Common Stock
      for
      which the principal amount of the Notes are at any time convertible. The initial
      number of shares of Common Stock reserved for conversions of the Notes
      and
      each increase in the number of shares so reserved shall be allocated pro rata
      among the Holders of the Notes based on the principal amount of the Notes held
      by each Holder at the time of issuance of the Notes or increase in the number
      of
      reserved shares, as the case may be. In the event a Holder shall sell or
      otherwise transfer any of such Holder's Notes, each transferee shall be
      allocated a pro rata portion of the number of reserved shares of Common Stock
      reserved for such transferor. Any shares of Common Stock reserved and allocated
      to any Person which ceases to hold any Notes shall be allocated to the remaining
      Holders, pro rata based on the principal amount of the Notes then held by such
      Holders.

     

    3. Voting
      Rights.
      Holders
      shall have no voting rights, except as required by law, including but
not
      limited to the New York Business Corporation Act and as expressly provided
      in
      this Note.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4. Reissuance
      of Note.
      In the
      event of a conversion or redemption pursuant to this Note of less than
      all
      of the Conversion Amount represented by this Note, the Company shall promptly
      cause to be issued and
      delivered to the Holder, upon tender by the Holder of the Note converted or
      redeemed, a new note of like tenor
      representing the remaining principal amount of this Note which has not been
      so
      converted or redeemed and
      which
      is in substantially the same form as this Note.

     

    5. Defaults
      and Remedies.

     

    (a)
      Events
      of Default.
      An
"Event
      of Default" is:
      (i)
      default for thirty (30) days in
      payment of interest or Default Interest on this Note; (ii) default in payment
      of
      the principal amount of this Note
      when
      due; (iii) failure by the Company for thirty (30) days after notice to it to
      comply with any other material provision of this Note; (iv) if the Company
      pursuant to or within the meaning of any 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 Custodian of it or
      for
      all or substantially all of its property; (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 the same become due; or (vi) a court of competent
      jurisdiction enters an order
      or
      decree under any Bankruptcy Law that: (I) is for relief against the Company
      in
      an involuntary case; (2)
      appoints a Custodian of the Company or for all or substantially all of its
      property; or (3) orders the liquidation of the Company or any subsidiary, and
      the order or decree remains unstayed and in effect for thirty
      (30) days. The Term "Bankruptcy
      Law"
      means Title I 1 , U.S. Code, or any similar Federal or State Law
      for
      the relief of debtors. The term "Custodian" means any receiver, trustee,
      assignee, liquidator or similar official under any Bankruptcy Law.

     

    (b)
      Remedies.
      If an
      Event of Default occurs and is continuing, the Holder of this Note may
      declare all of this Note, including any interest and Default Interest and other
      amounts due, to be due and payable
      immediately.

     

    9. Vote
      to Change the Terms of this Note.
      This
      Note and any provision hereof may only be amended by an instrument in writing
      signed by the Company and holders of a majority of the aggregate Conversion
      Amount of the Notes then outstanding.

     

    10. Lost
      or Stolen Note.
      Upon
      receipt by the Company of evidence satisfactory to the Company of
      the
      loss, theft, destruction or mutilation of this Note, and, in the case of loss,
      theft or destruction, of an indemnification
      undertaking by the Holder to the Company in a form reasonably acceptable to
      the
      Company and,
      in
      the case of mutilation, upon surrender and cancellation of the Notes, the
      Company shall execute and deliver
      a
      new Note of like tenor and date and in substantially the same form as this
      Note;
      provided, however, the
      Company shall not be obligated to re-issue a Note if the Holder
      contemporaneously requests the Company to
      convert such remaining principal amount into Common Stock.

     

    11. Payment
      of Collection, Enforcement and Other Costs.
      If: (i)
      this Note is placed in the hands of
      an
      attorney for collection or enforcement or is collected or enforced through
      any
      legal proceeding; or (ii) an
      attorney is retained to represent the Holder of this Note in any bankruptcy,
      reorganization, receivership or
      other
      proceedings affecting creditors' rights and involving a claim under this Note,
      then the Company shall pay
      to
      the Holder all reasonable attorneys' fees, costs and expenses incurred in
      connection therewith, in addition to all other amounts due
      hereunder.

     

    12. Cancellation.
      After
      all principal and accrued interest at any time owed on this Note has been
paid
      in
      full, this Note shall automatically be deemed canceled, shall be surrendered
      to
      the Company for cancellation and shall not be reissued.

     

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

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    14. Governing
      Law.
      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
      laws of the State of New York, without giving effect to provisions thereof
      regarding conflict of laws. Each
      party hereby irrevocably submits to the non-exclusive jurisdiction of the state
      and federal courts sitting in
      Miami
      Dade County, New York, 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. Each party hereby irrevocably waives personal service
      of
      process and consents
      to process being served in any such suit, action or proceeding by sending by
      certified mail or overnight
      courier a copy thereof to such party at the address for such notices to it
      under
      this 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.
      EACH
      PARTY 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 HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
      CONTEMPLATED HEREBY.

     

    15. 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,
      at
      law or in equity (including a decree of specific performance and/or other
      injunctive relief), and no remedy
      contained herein shall be deemed a waiver of compliance with the provisions
      giving rise to such remedy and nothing herein shall limit a Holder's right
      to
      pursue actual damages for any failure by the Company
      to comply with the terms of this Note. The Company covenants to each Holder
      of
      Notes that there shall be no characterization concerning this instrument other
      than as expressly provided herein. Amounts set forth or provided for herein
      with
      respect to payments, conversion and the like (and the computation thereof)
      shall
      be the amounts to be received by the Holder thereof and shall not, except as
      expressly provided herein, be
      subject to any other obligation of the Company (or the performance
      thereof).

     

    16. Specific
      Shall Not Limit General; Construction.
      No
      specific provision contained in this Note shall
      limit or modify any more general provision contained herein. This Note shall
      be
      deemed to be jointly drafted by the Company and all Holders and shall not be
      construed against any person as the drafter hereof.

     

    17. Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of this Note 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.

     

     

    (Signature
      Page Follows)

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the
      Company has caused this Note to be signed by Dr. Agnes Olszewski, its Chief
      Executive Officer, on and as of the Issuance Date.

    

    
      	 	
              Herborium
                Group, Inc.

            	 
	 	 	 
	 	 	 
	 	 	 
	 	
              Dr.
                Agnes Olszewski

            	 

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    EXHIBIT
      2.(d)(I)

    CONVERSION
      NOTICE

     

    Reference
      is made to the Convertible Note issued by Herborium Group, Inc. (the "Note").
      In
      accordance with and pursuant to the Note, the undersigned hereby elects to
      convert a portion or all of the principal
      balance of the Note, indicated below into shares of Common Stock, par value
      $.001 per share (the "Common
      Stock"), of the Company, by tendering the Note specified below as of the date
      specified below.

     

    
      	
              Date
                of Conversion:

            	 	 
	
              Aggregate
                Principal Amount to be converted: 

            	 	 
	
              No(s).
                of Note to be converted:

            	 	 
	 	 	 
	
              Please
                confirm the following information:

            	 	 
	 	 	 
	
              Conversion
                Amount:

            	 	 
	
              Conversion
                Price:

            	 	 
	
              Number
                of shares of Common Stock to be issued:

            	 	 
	 	 	 
	
              Please
                issue the Common Stock into which the Note is being converted in
                the name
                of the Holder of the Note and to the following address:

            
	 	 	 
	
              Telephone
                Number: 

            	 	 
	
              Facsimile
                Number:

            	 	 
	
              Authorization:

            	 	 
	 	 	 
	 	
              By:

            	 	 
	 	 	 	 
	 	
              Title:

            	 	 
	 	 	 	 
	 	
              Dated:

            	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	 	 
	
              Please
                issue a new Note(s) for the outstanding principal balance in the
                name of
                the Holder and to the following address:
                ______________________________________________________________________

            
	 	 	 
	
              Outstanding
                Principal Balance:

            	 	 
	
              Telephone
                No.: 

            	 	 
	
              Facsimile
                No.: Authorization:

            	 	 
	 	 	 
	 	
              By:

            	 	 
	 	 	 	 
	 	
              Title:

            	 	 
	 	 	 
	
              Dated:

            	 	 	 

    

    

    
      
        
        

      

      
        8WARRANT
      AGREEMENT

     

    WARRANT
      AGREEMENT (the "Warrant Agreement"), dated as of _________________________
      (the
      "Effective Date"), by and among Herborium Group, Inc., a Nevada corporation
      (the
      "Company"), and the investors signatory hereto (collectively, the `Warrant
      holders" and each, a "Warrant holder").

     

    Each
      of
      the Warrant holders has executed a subscription agreement (each, a "Subscription
      Agreement") for the purchase of Units (as defined therein) consisting of a
      convertible note (the "Convertible Note"), shares of the Company’s common stock,
      par value $.001 (the “Common Stock”) and warrants to purchase shares of the
      Common Stock. This Warrant Agreement is being executed in connection with the
      purchase of the Units.

     

    Capitalized
      terms used herein but not otherwise defined shall have the meanings ascribed
      to
      them in the Subscription Agreement. In addition, certain capitalized terms
      used
      herein are defined in Paragraph 13.

     

    In
      consideration of the parties mutual covenants and agreements contained herein
      and for other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereto hereby agree as
      follows:

     

    1. Issuance
      of Warrant.

     

    (a) The
      Company hereby issues and grants to each Warrant holder warrants (a "Warrant")
      to purchase a number of shares of Common Stock in an amount equal to the product
      obtained by multiplying (x) the number of Units (as such term is defined in
      the
      Subscription Agreement) by such Warrant holder by 100,000. The Common Stock
      issuable upon exercise of the Warrants being collectively referred to herein
      as
      the "Warrant Shares." Each Warrant shall entitle the holder thereof, subject
      to
      the satisfaction of the conditions to exercise set forth in Paragraph 7 of
      this
      Warrant Agreement, to purchase, on or prior to 5:00 p.m., New York City time,
      on
      ______________2013 (the "Warrant Expiration Date") that number of Warrant Shares
      equal to the quotient obtained by multiplying one (1) by the number of Warrants
      granted pursuant hereto. If not sooner expired pursuant to the terms hereof,
      the
      Warrants, and any and all rights of exercise thereof, shall expire on the
      Warrant Expiration Date, the Warrant Shares issuable under this Warrant
      Agreement and the Exercise Price are subject to adjustment pursuant to Paragraph
      8 of this Warrant Agreement.

     

    (b) Subject
      to the adjustments contained in Paragraph 8, the "Exercise Price" per Warrant
      Share for each 100,000 Warrant Shares shall be 50,000 Warrant Shares at two
      and
      a half cents ($0.025) and 50,000 Warrant Shares at five cents
      ($0.05).

     

    2. Form
      of Warrant Certificates.
      Within
      twenty one (21) business days after the Closing (as defined in the Subscription
      Agreement), with respect to each respective Warrant holder, the Company shall
      cause to be executed and delivered to such Warrant holder one or more
      certificates evidencing the Warrants (the "Warrant Certificates") to which
      such
      Warrant holder is entitled. Each Warrant Certificate delivered hereunder shall
      be substantially in the form set forth in Exhibit 2 attached hereto and may
      have
      such letters, numbers or other identification marks and legends, summaries
      or
      endorsements printed thereon as the Company may deem appropriate (provided
      same
      are not inconsistent with the terms of this Warrant Agreement) or as may be
      required by applicable law, rule or regulation. Each Warrant Certificate shall
      be dated as of the Effective Date (first defined above).

     

    3. Execution
      of Warrant Certificates.
      Each
      Warrant Certificate delivered hereunder shall be signed on behalf of the Company
      by one (1) officer of the Company. Each such signature may be in the form of
      a
      facsimile thereof and may be imprinted or otherwise reproduced on the Warrant
      Certificates.

     

    (a) If
      any
      officer of the Company who signed any Warrant Certificate ceases to be an
      officer of the Company before the Warrant Certificate so signed shall have
      been
      delivered by the Company, such Warrant Certificate nevertheless may be delivered
      as though such person had not ceased to be an officer of the
      Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4. Registration.
      Warrant
      Certificates shall be issued in registered form only. The Company will keep
      or
      cause to be kept books for registration of ownership and transfer of each
      Warrant Certificate issued pursuant to this Warrant Agreement. Each Warrant
      Certificate issued pursuant to this Warrant Agreement shall be numbered by
      the
      Company and shall be registered by the Company in the name of the holder thereof
      (initially, the Warrant holder). The Company may deem and treat the registered
      holder of any Warrant Certificate as the absolute owner thereof (notwithstanding
      any notation of ownership or other writing thereon made by anyone) for the
      purpose of any exercise thereof and for all other purposes, and the Company
      shall not be affected by any notice to the contrary.

     

    5.
      Transfers
      and Exchanges.

     

    (a)
      Transfers. Subject to the provisions of this Paragraph 5, the Warrants are
      transferable, in whole or in part, upon surrender of the Warrant Certificates
      evidencing such Warrants at the office of the Company, together with a written
      assignment in the form of the assignment appearing at the end of the form of
      Warrant Certificate attached hereto as Exhibit 2, duly executed by the
      registered holder thereof or its agent or attorney. Upon such surrender, the
      Company shall, subject to this Paragraph 5, register or cause the registration
      of the transfer upon the books maintained by or on behalf of the Company for
      such purpose. If the Warrants evidenced by any Warrant Certificate are to be
      transferred in whole, the Company shall execute and deliver a new Warrant
      Certificate or Warrant Certificates in the name of the assignee or assignees
      in
      the denominations specified in the instrument of assignment. If the Warrants
      evidenced by any Warrant Certificate are to be transferred in part, the Company
      shall execute and deliver a new Warrant Certificate or Warrant Certificates
      to
      and in the name of the assignee or assignees in the denominations specified
      in
      the instrument of assignment and a new Warrant Certificate to and in the name
      of
      the assigning holder in an amount equal to the number of Warrants evidenced
      by
      the surrendered Warrant Certificate that were not transferred.

     

    (b)
      Restrictions on Transfer. No Warrant may be sold, pledged, hypothecated,
      assigned, conveyed, transferred or otherwise disposed of (each, a "transfer")
      without prior written consent by the Company and unless the transferee agrees
      in
      writing to be bound by the terms of this Warrant Agreement.

     

    (c)
      Exchanges. Warrant Certificates may be exchanged, at the option of the holder
      thereof, upon surrender of such Warrant Certificate at the office of the
      Company, for one or more other Warrant Certificates of like tenor and
      representing in the aggregate the same number of Warrants as was represented
      by
      the surrendered Warrant Certificate. 

     

    (d)
      Cancellation. Warrant Certificates surrendered for transfer or exchange shall
      be
      canceled by the Company.

     

    6. Mutilated
      or Missing Warrant Certificates.
      If any
      Warrant Certificate is mutilated, lost, stolen or destroyed, the Company shall
      issue, upon surrender and cancellation of any mutilated Warrant Certificate,
      or
      in lieu of and substitution for any lost, stolen or destroyed Warrant
      Certificate, a new Warrant Certificate of like tenor and representing an equal
      number of Warrants. In the case of a lost, stolen or destroyed Warrant
      Certificate, a new Warrant Certificate shall be issued by the Company only
      upon
      the Company's receipt of reasonably satisfactory evidence of such loss, theft
      or
      destruction and, if requested, an indemnity or bond reasonably satisfactory
      to
      the Company.

     

    7. Exercise
      of Warrants.

     

    (a) Exercise.
      Subject to the terms and conditions set forth in this Paragraph 7, at any time
      and from time to time prior to the Warrant Expiration Date the Warrants may
      be
      exercised for that number of Warrant Shares as may be determined appropriate
      by
      the Warrant holder. Should a Warrant holder fail to exercise this Warrant in
      full prior to the Warrant Expiration Date, then the entitlement of such Warrant
      holder to the Warrant Shares shall be automatically cancelled and void. In
      order
      to exercise the Warrants, a Warrant holder shall deliver to the Company the
      following: (i) a written notice, in the form of the Election to Purchase
      appearing at the end of the form of Warrant Certificate attached hereto,
      indicating the election of such Warrant holder to exercise the Warrants for
      all
      or such portion of the Warrant Shares as identified by the Warrant holder
      therein; (ii) the Warrant Certificate or Warrant Certificates evidencing the
      Warrants being exercised; and (iii) payment of the aggregate Exercise
      Price.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Payment
      of Exercise Price. Payment of the Exercise Price with respect to that portion
      of
      the Warrants being exercised hereunder shall be made by the payment by the
      Warrant holder to the Company, in cash, by cashier's check or wire transfer,
      of
      an amount equal to the Exercise Price multiplied by the number of Warrant Shares
      being acquired by the exercise of the Warrants.

     

    (c) Payment
      of Taxes. The Company shall be responsible for paying any and all issue,
      documentary, stamp or other taxes that may be payable in respect of any issuance
      or delivery of Warrant Shares on exercise of the Warrants, except in the case
      where any Warrant Shares shall be registered in a name or names other than
      the
      name of the holder of a Warrant. In the event that Warrant Shares shall be
      registered in a name or names other than the name of the holder of a Warrant,
      funds sufficient to pay all transfer taxes, if any, which shall be payable
      upon
      the execution and delivery of such Warrant Shares shall be paid by the holder
      thereof to the Company at the time a Warrant holder delivers such Warrants
      to
      the Company for exercise. 

     

    (d)
      Delivery of Warrant Shares. Upon receipt of the items referred to in Paragraph
      7. (a), the Company shall, as promptly as practicable, and in any event within
      three (3) Business Days thereafter, execute and deliver or cause to be executed
      and delivered, to or upon the written order of the Warrantholder exercising
      the
      Warrants, and in the name of such Warrantholder or such designee of such
      Warrantholder, a share certificate or share certificates representing the number
      of Warrant Shares to be issued
      on
      exercise of the Warrants and enter full details of such issuance in the stock
      register of the Company in order to confer upon the Warrantholder or the
      designee of such Warrant holder legal
      title thereto. The share certificate or share certificates issued to such
      Warrantholder or its designee shall bear any restrictive legend required under
      applicable law, rule or regulation. The share certificate or share certificates
      so delivered (and the entry in the stock register) shall be registered or made,
      as the case may be, in the name of such Warrantholder or such other name as
      shall be designated in said notice. A Warrant shall be deemed to have been
      exercised and such share certificate or share certificates shall be deemed
      to
      have been issued, and such holder or any other person so designated to be named
      therein shall be deemed to have become a holder of record of such shares for
      all
      purposes, as of the date that such notice, together with payment of the
      aggregate Exercise Price and the Warrant Certificate or Warrant Certificates
      evidencing the Warrants to be exercised, is received by the Company as aforesaid
      and the corresponding entries are made in the stock register of the Company.
      If
      the Warrants evidenced by any Warrant Certificate are exercised in part, the
      Company shall, at the time of delivery of the share certificate or share
      certificates, deliver to the holder thereof a new Warrant Certificate evidencing
      the Warrants that were not exercised or surrendered, which shall in all respects
      (other than as to the number of Warrants evidenced thereby) be identical to
      the
      Warrant Certificate being exercised. Any Warrant Certificates surrendered upon
      exercise of Warrants shall be canceled by the Company.

     

    8. Adjustment
      of Number of Warrant Shares Issuable Upon Exercise and Adjustment of Exercise
      Price.

     

    (a)
      Stock
      Dividends, Subdivisions and Combinations. If at any time after the date hereof
      the Company shall: (1) pay a dividend, or make any other distribution of,
      additional shares of Common Stock to all holders of its Common Stock (other
      than
      pursuant to the exercise of Warrants); subdivide its outstanding shares of
      Common Stock into a larger number of shares of Common Stock; or combine its
      outstanding shares of Common Stock into a smaller number of shares of Common
      Stock, then the number of Warrant Shares for which each Warrant is exercisable
      immediately after the occurrence of any such event shall be proportionately
      increased in the case of (i) and (ii) above and proportionately decreased in
      the
      case of (iii) above. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      Certain Other Distributions. If at any time after the date hereof the Company
      shall make any dividend, or any other distribution by the Company to the holders
      of its Common Stock, of any shares of capital stock of the Company, evidences
      of
      indebtedness of the Company, cash or other assets (including rights, warrants,
      convertible securities or other securities (of the Company or any other
      Person)), other than any dividend or distribution (i) upon a capital
      reorganization, reclassification, merger or consolidation to which Paragraph
      8.(c) applies, or (ii) of any common stock referred to in Paragraph 8.(a),
      then
      (x) the number of Warrant Shares for which each Warrant is exercisable shall
      be
      adjusted to equal the product obtained by multiplying the number of shares
      of
      Common Stock for which one Warrant is exercisable immediately prior to such
      distribution by a fraction (A) the numerator of which shall be the Current
      Market Price per share of Common Stock at the time of such distribution and
      (B)
      the denominator of which shall be the Current Market Price per share of Common
      Stock minus the amount allocable to one share of Common Stock of the fair value
      (as determined in good faith by the Board of Directors of the Company) of any
      and all such evidences of indebtedness, shares of stock, other securities or
      property so distributed.

     

    (c)
      Upon
      Reclassifications, Reorganizations, Consolidations or Mergers. In the event
      of
      any capital reorganization of the Company, any reclassification of the stock
      of
      the Corporation (other than a change in par value or from par value to no par
      value or from no par value to par value or as a result of a stock dividend
      or
      subdivision, split-up or combination or reverse split of shares), or any
      consolidation or merger of the Company with or into another Person (where the
      Company is not the surviving corporation or where there is a change in or
      distribution with respect to the Common Stock), except in the case of a merge
      or
      consolidation to which clause (i) of the last sentence of this Paragraph 8.(c)
      applies, each Warrant, effective at the close of business on the date such
      reorganization, reclassification, consolidation, or merger shall become
      effective, shall thereafter be exercisable for the kind and number of shares
      of
      stock or other securities or property, (including cash) receivable upon the
      consummation of such reorganization, reclassification, consolidation or merger,
      by a holder of the number of shares of Common Stock deliverable (immediately
      prior to the time of such reorganization, reclassification, consolidation or
      merger) upon exercise of such Warrant and otherwise shall have the same terms
      and conditions applicable immediately prior to such time of such reorganization,
      reclassification, consolidation or merger. The provisions of this clause shall
      similarly apply to successive reorganizations, reclassifications,
      consolidations, or mergers. The Corporation shall not effect any such
      reorganization, reclassification, consolidation or merger unless, (i) in the
      case of a merger or consolidation in which the consideration receivable upon
      consummation of such merger or consolidation by a holder of shares of Common
      Stock consists solely of cash, either (x) simultaneously with the consummation
      thereof, the Corporation shall pay to the Holder of the Warrant Certificate
      evidencing such Warrants an amount in cash equal to (A) the amount in cash
      that
      would be received upon such consummation by a holder of the number of shares
      of
      Common Stock deliverable (immediately prior to such consummation) upon exercise
      of such Warrants less (B) the Exercise Price or (y) the Exercise Price for
      any
      Warrant exceeds the amount in cash that would be so received or (ii) in all
      other cases, prior to the consummation thereof, the successor corporation (if
      other than the Corporation) resulting from such reorganization,
      reclassification, consolidation, or merger shall assume, by written instrument,
      the obligation to deliver to the holders of this Warrant such shares of stock,
      securities or property, including cash, which, in accordance with the foregoing
      provisions, such holders shall be entitled to receive upon such
      exercise.

     

    (d) Exercise
      Price Adjustment. Whenever the number of Warrant Shares into which a Warrant
      is
      exercisable is adjusted as provided in Paragraphs 8.(a) and 8.(b), the Exercise
      Price payable upon exercise of the Warrant shall simultaneously be adjusted
      by
      multiplying such Exercise Price immediately prior to such adjustment by a
      fraction, the numerator of which shall be the number of shares of Common Stock
      into which such Warrant was exercisable immediately prior to such adjustment,
      and the denominator of which shall be the number of shares of Common Stock
      into
      which such Warrant was exercisable immediately thereafter.

     

    (e) Notice
      of
      Certain Events, Upon the occurrence of any event resulting in an adjustment
      in
      the number of Warrant Shares (or other stock or securities or property)
      receivable upon the exercise of the Warrants or the Exercise Price, the Company
      shall promptly thereafter (i) compute such adjustment in accordance with the
      terms of the Warrants, (ii) prepare a certificate setting forth such adjustment
      and showing in detail the facts upon which such adjustment is based, and (iii)
      promptly mail copies of such certificate to each Warrantholder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9. Reservation
      of Shares.
      The
      Company shall at all times reserve and keep available, free from preemptive
      rights, out of the aggregate of its authorized but unissued share capital,
      the
      aggregate number of the Warrant Shares deliverable upon the exercise of all
      outstanding Warrants, for the purpose of enabling it to satisfy any obligation
      to issue the Warrant Shares upon the due and punctual exercise of the Warrants,
      through 5:00 p.m., New York City time, on the Warrant Expiration
      Date.

     

    10. No
      Impairment.
      The
      Company shall not, by amendment of its organizational documents, or through
      reorganization, consolidation, merger, dissolution, issuance or sale of
      securities, sale of assets or any other
      voluntary action, willfully avoid or seek to avoid the observance or performance
      of any of the terms of the Warrants or this Warrant Agreement, and shall at
      all
      times in
      good
      faith assist in the carrying out of all such terms and in the taking of all
      such
      actions as may be necessary or appropriate in order to protect the rights of
      Warrantholder under the Warrants and this Warrant Agreement against wrongful
      impairment. Without limiting the generality of the foregoing, the Company:
      (i)
      shall not set or increase the par value of any Warrant Shares above the amount
      payable therefore upon exercise, and (ii) shall take all actions that are
      necessary or appropriate in order that the Company may validly and legally
      issue
      fully paid and nonassessable Warrant Shares upon the exercise of the
      Warrants.

     

    11. No
      Rights or Liabilities as Shareholder.
      No
      holder, as such, of any Warrant Certificate shall be entitled to vote, receive
      dividends or be deemed the holder of Shares which may at any time be issuable
      on
      the exercise of the Warrants represented thereby for any purpose whatever,
      nor
      shall anything contained herein or in any Warrant Certificate be construed
      to
      confer upon the holder of any Warrant Certificate, as such, any of the rights
      of
      a shareholder of the Company or any right to vote for the election of directors
      or upon any matter submitted to shareholders at any meeting thereof, or to
      give
      or withhold consent to any corporate action (whether upon any recapitalization,
      issuance of Common Stock, reclassification of Common Stock, change of par value
      or change of Common Stock to no par value, consolidation, merger, conveyance
      or
      otherwise), or to receive notice of meetings or other actions affecting
      stockholders or to receive dividend or subscription rights, or otherwise, until
      such Warrant Certificate shall have been exercised in accordance with the
      provisions hereof and the receipt and collection of the Exercise Price and
      any
      other amounts payable upon such exercise by the Company. No provision hereof,
      in
      the absence of affirmative action by Warrantholder to purchase Warrant Shares
      shall give rise to any liability of such holder for the Exercise Price or as
      a
      shareholder of the Company, whether such liability is asserted by the Company
      or
      by creditors of the Company.

     

    12. Fractional
      Interests.
      Notwithstanding the provisions of the Articles of Incorporation of the Company,
      the Company shall not be required to issue fractional shares of Common Stock
      upon exercise of the Warrants or to distribute certificates that evidence
      fractional shares of Common Stock. If any fraction of a Warrant Share would,
      except for the provisions of this Paragraph 12, be issuable on the exercise
      of a
      Warrant, the number of Warrant Shares to be issued by the Company shall be
      rounded to the nearest whole number, with one-half or greater being rounded
      up,
      and less than one-half being rounded down.

     

    13. Additional
      Definitions.
      Unless
      the context otherwise requires, the terms defined in this Paragraph 13, whenever
      used in this Warrant Agreement shall have the respective meanings hereinafter
      specified and words in the singular or in the plural shall each include the
      singular and the plural and the use of any gender shall include all
      genders.

     

    (a) "Affiliate"
      shall mean, with respect to any Person, any officer or director of such Person,
      or any other Person directly or indirectly controlling, controlled by, or under
      common control with such Person. For purposes of this definition, "control"
      means the power to direct the management and policies of such Person, directly
      or indirectly, whether through the ownership of voting securities, by contract
      or otherwise, and the terms "controlling" and "controlled" have meanings
      correlative to the foregoing.

     

    (b) "Business
      Day" shall mean any day other than a Saturday or a Sunday or any day on which
      banks located in New York, New York are authorized or obligated to
      close.

     

    (c) "Common
      Stock" means the common stock, par value $.0001 per share, of the
      Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) "Current
      Market Value" per share of Common Stock or any other security on any date of
      determination means: (i) the average of the daily closing sale prices for each
      of 15 trading days immediately preceding such date (or such shorter number
      of
      days during which such security has been listed or traded), if the security
      has
      been listed on the New York Stock Exchange, the American Stock Exchange or
      other
      national securities exchange or the NASDAQ National Market for at least 10
      trading days prior to such date; (ii) if such security is not so listed or
      traded, the average of the daily closing bid prices for each of the 15 trading
      days immediately preceding such date or such shorter number of days during
      which
      such security had been quoted), if the security has been quoted on a national
      over-the-counter market for at least 10 trading days; and (iii) otherwise,
      the
      value of the security most recently determined as of a date within the six
      months preceding such day by the Board of Directors of the Company in good
      faith,

     

    (e) "Person"
      shall mean any corporation, association, partnership, joint venture, trust,
      organization, business, individual, government or political subdivision thereof
      or governmental body,

     

    14. Miscellaneous.

     

    (a) Additional
      Parties. The parties hereto agree that subsequent Persons who purchase Units
      by executing
      a Subscription Agreement shall, upon execution of a counterpart signature page
      hereto, be added as a party to this Warrant Agreement and have all rights and
      privileges of a Warrantholder and be subject and bound by all the terms and
      conditions hereof as if such subsequent party was one of the Warrantholders
      on
      the date hereof.

     

    (b) Amendments
      and Waivers, This Warrant Agreement may be supplemented or amended only by
      a
      subsequent writing signed by each of the parties hereto (or their successors
      or
      permitted assigns), and any provision hereof may be waived only by a written
      instrument signed by the party charged therewith,

     

    (c) Counterparts.
      This Warrant Agreement may be executed in counterparts and each such counterpart
      shall for all purposes be deemed to be an original, and all such counterparts
      shall together constitute but one and the same instrument.

     

    (d) Entire
      Agreement. This Warrant Agreement and the other documents, instruments and
      agreements executed in connection herewith constitute the entire agreement
      by,
      between and among the parties as to the subject matter hereof and merges and
      supersedes any prior discussions, understandings and agreements of any and
      every
      nature by, between and among them as to the subject matter hereof.

     

    (e) Governing
      Law. THIS
      WARRANT AGREEMENT SHALL BE GOVERNED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH
      THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS CONFLICTS OF
      LAWS, RULES OR PRINCIPLES.

     

    (f) Jurisdiction
      and Venue. ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS WARRANT AGREEMENT
      SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES
      DISTRICT COURT FOR NEW YORK. THE PARTIES HEREBY ACCEPT THE EXCLUSIVE
      JURISDICTION OF THOSE COURTS FOR THE PURPOSE OF ANY SUCH SUIT, ACTION OR
      PROCEEDING. THE PARTIES HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT
      PERMITTED BY LAW, ANY OBJECTION THAT ANY OF THEM MAY NOW OR HEREAFTER HAVE
      TO
      THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING RISING OUT OF OR RELATING
      TO THIS WARRANT AGREEMENT OR ANY JUDGMENT ENTERED BY ANY COURT IN RESPECT
      THEREOF BROUGHT IN ANY OF THE ABOVE DESCRIBED COURTS AND HEREBY FURTHER
      IRREVOCABLY WAIVE ANY CLAIM THAT ANY SUIT, ACTION OR PROCEEDING BROUGHT IN
      NEW
      YORK, HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. THE PARTIES, FURTHER, CONSENT
      TO SERVICE OF PROCESS IN ANY SUCH ACTION OR LEGAL PROCEEDING BY MEANS OF
      REGISTERED MAIL OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, IN CARE OF THE
      ADDRESS SET FORTH IN THE CONVERTIBLE NOTE EXECUTED BY SUCH PARTY OR SUCH OTHER
      ADDRESS AS EITHER PARTY MAY FURNISH IN WRITING TO THE OTHER, PROVIDED PROCESS
      IS
      ACTUALLY RECEIVED.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g) Notices.
      Unless otherwise provided, any notice required or permitted by this Warrant
      Agreement shall be in writing and shall be deemed sufficient upon delivery,
      when
      delivered personally or by overnight courier or sent by telegram or fax, or
      forty-eight (48) hours after being deposited in the United States mail as
      certified or registered mail with postage prepaid, and addressed to the party
      to
      be notified at such party's address as set forth in the Subscription Agreement
      executed by such party or as subsequently modified by written
      notice.

     

    (h) Sections
      and Headings. The sections and headings used in this Warrant Agreement are
      used
      for convenience only and are not to be considered in construing or interpreting
      this Warrant Agreement.

     

    (i) Severability.
      If one or more provisions of this Warrant Agreement are held to be unenforceable
      under applicable law, such provision shall be automatically reformed so as
      to be
      enforceable while as nearly as possible preserving the original intent of the
      parties.

     

    (j) Successors
      and Assigns. Except as
      otherwise
      provided in this Warrant Agreement, the terms and conditions of this Warrant
      Agreement shall inure to the benefit of and be binding upon the respective
      permitted successors and assigns of the parties. Nothing in this Warrant
      Agreement, express or implied, is
      intended
      to confer upon any party other than the parties hereto or their respective
      successors and assigns any rights, remedies, obligations, or liabilities under
      or by reason of this Warrant Agreement, except as expressly provided in this
      Warrant Agreement. 

     

    (k) Termination.
      This Warrant Agreement (other than Paragraph 7.(b) and Paragraph 14, and all
      related definitions, all of which shall survive such termination) shall
      terminate on the earlier of (i) the Warrant Expiration Date and (ii) the date
      on
      which all Warrants have been exercised. 

     

    15. Registration
      Rights. 

     

    The
      Warrant holder shall have such registration rights with respect to the number
      of
      shares of Common Stock issuable upon exercise of the Warrants (the "Registrable
      Securities") as is set forth in the Registration Rights Agreement among the
      Company and the Warrant holder.

     

     

    (Signature
      Pages Follow)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Warrant Agreement
      on
      and as of the Effective Date. 

    

    
      	
              HERBORIUM
                GROUP, INC.,

            
	 	 
	 	 
	
              By:
                

            	 

	
            	
              Dr.
                Agnes Olszewski, CEO

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Warrantholder
      Counterpart Signature Page

     

    

    
      	
              WARRANTHOLDER:

            
	 	 
	 

	Name
              of Warrantholder
	 
	
              By:
                

            	 

	
              Title:
                

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      2

    FORM
      OF
      WARRANT CERTIFICATE

     

    NEITHER
      THIS SECURITY NOR THE COMMON STOCK OF THE COMPANY ISSUABLE UPON EXERCISE HEREOF
      HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.
      NEITHER THIS SECURITY, SUCH COMMON STOCK NOR ANY INTEREST OR PARTICIPATION
      HEREIN OR THEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
      ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
      UNLESS SUCH TRANSACTION IS EXEMPT FORM, OR NOT SUBJECT TO, SUCH REGISTRATION.
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND
      CONDITIONS OF, AND MAY ONLY BE TRANSFERRED IN ACCORDANCE WITH, A WARRANT
      AGREEMENT, DATED AS OF _________________________, BETWEEN HERBORIUM GROUP,
      INC.
      AND THE WARRANTHOLDERS SIGNATORY THERETO OF THE SECURITIES REPRESENTED BY THIS
      CERTIFICATE. COPIES OF SUCH AGREEMENTS MAY BE OBTAINED UPON WRITTEN REQUEST
      TO
      HERBORIUM GROUP, INC.

     

    NEITHER
      THIS SECURITY NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR
      SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE SECURITIES
      LAWS; OR (ii) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE
      TO
      THE ISSUER,
      THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT OR; (iii) UNLESS SOLD,
      TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              WARRANT
                NUMBER: HBRM-100

            	
              NUMBER
                OF CONVERTIBLE NOTE

            
	
              __________________________
                

            	
              WARRANTS
                : _________________________ 

            

    

    

    WARRANT
      CERTIFICATE

    

    HERBORIUM
      GROUP, INC.

    

    This
      Warrant Certificate certifies that _________________________
      , an
      individual
      or his
      registered assigns, is the registered holder of _________________________
      Warrants (the "Warrantholder") to purchase a number of shares (the "Warrant
      Shares") of the common stock, par value $.001 per share (the "Common Stock")
      of
      Herborium Group, Inc. (the "Company"). Each Warrant entitles the holder thereof,
      subject to the satisfaction of the conditions to exercise set forth in Paragraph
      7 of the Warrant Agreement dated as of _______ between the Company and the
      Warrant holders signatory thereto (the “Warrant Agreement”) to purchase, on or
      prior to 5:00 p.m., New York City time, on ____________, 2013 (the "Warrant
      Expiration Date"), that number of Warrant Shares equal to the quotient obtained
      by multiplying one (1) by the number of Warrants represented hereby at the
      price
      (the "Exercise Price") of 50,000 Warrant Shares at two and a half cents ($0.025)
      per Warrant Share and 50,000 Warrant Shares at five cents ($0.05) per Warrant
      Share for each 100,000 Warrants. Any and all rights of exercise hereof shall
      expire on the Warrant Expiration Date. The number of Warrant Shares issuable
      under this Warrant Certificate and the Exercise Price are subject to adjustment
      pursuant to Paragraph 8 of the Warrant Agreement.

     

    The
      Warrants evidenced by this Warrant Certificate are part of a duly authorized
      issue of Warrants to purchase Warrant Shares and are issued pursuant to a
      Warrant Agreement, which Warrant Agreement is hereby incorporated by reference
      in and made a part of this instrument and is hereby referred to for a
      description of the rights, limitation of rights, obligations, duties and
      immunities thereunder of the Company and Warrantholder.

     

    Warrantholder
      may exercise Warrants in accordance herewith and with the Warrant Agreement
      by
      surrendering this Warrant Certificate, with the Election to Purchase, in the
      form attached hereto, properly completed and executed, together with payment
      of
      the aggregate Exercise Price, at the offices of the Company. If, after the
      exercise of Warrants evidenced hereby, the number of Warrants exercised shall
      be
      less than all of the Warrant Shares available hereunder, there shall be issued
      to the holder hereof or its assignee a new Warrant Certificate evidencing the
      number of Warrants then remaining.

     

    This
      Warrant Certificate, when surrendered at the offices of the Company, by the
      registered holder thereof in person, by legal representative or by attorney
      duly
      authorized in writing, may be exchanged, in the manner and subject to the
      limitations provided in the Warrant Agreement, for one or more other Warrant
      Certificates of like tenor evidencing in the aggregate a like number of
      Warrants.

     

    Warrantholder
      may transfer the Warrants evidenced by this Warrant Certificate, in whole or
      in
      part, only in accordance with Paragraph 5 of the Warrant Agreement.

     

    The
      Company may deem and treat the registered holder hereof as the absolute owner
      of
      this Warrant Certificate (notwithstanding any notation of ownership or other
      writing hereon made by anyone), for the purpose of any exercise hereof and
      for
      all other purposes, and the Company shall not be affected by any notice to
      the
      contrary.

     

    (Signature
      Appears Next Page)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    WITNESS
      the signatures of the duly authorized directors or officers of the Company
      on
      this day of 
      ,
      2008.

    

    
      	
              HERBORIUM
                GROUP, INC.

            
	 
	
              By:

            	 

	 	
              Dr.
                Agnes Olszewski, CEO

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ELECTION
      TO PURCHASE

     

    The
      undersigned hereby irrevocably elects to exercise___________________of
      the Warrants evidenced by the attached Warrant Certificate to purchase Warrant
      Shares, and herewith tenders (or is concurrently tendering) payment for such
      Warrant Shares in an amount determined in accordance with the terms of the
      Warrant Agreement. The undersigned requests that a
      certificate representing such Warrant Shares be registered in the name of
      ________________________ whose address is________________________________ and
      that such certificate be delivered to, whose address is ___________________________________________________________________.
      If said number of Warrants is less than the number of Warrants then unexpired
      pursuant to the Warrant Agreement and as evidenced by the Warrant Certificate,
      the undersigned requests that a new Warrant Certificate evidencing the unexpired
      number of Warrants then
      evidenced by this Warrant Certificate be registered in the name of
      _____________________________whose address is
      __________________________________, and that such Warrant Certificate be
      delivered to whose address
      is____________________________________________________________________________.

     

     

    Dated:
      _________________,
      200___

     

    
      	
              Name
                of holder of Warrant Certificate:

            
	 
	  

	 
	
              (Please
                Print) Address:

            
	
               

            
	 
	
              Federal
                Tax Identification Number:

            
	 
	
               

            
	
              (if
                applicable)

            
	 
	
               

            
	
              Signature

            

    

     

    Note:
      The above signature must correspond with the name as written in the first
      sentence of the attached Warrant Certificate in every particular, without
      alteration or enlargement or any change whatever, and if the certificate
      evidencing the Warrant Shares or any Warrant Certificate representing Warrants
      not exercised is to be registered in
      a name other than that in which this Warrant Certificate is registered, the
      signature above must be guaranteed.

     

    Signature
      Guaranteed: ______________________________ 

     

    Dated:____________,
      2008

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT

     

    For
      value
      received,_______________________________________________________________ hereby
      sells,
      assigns and transfers
      unto____________________________________________________________ of the
Warrants
      evidenced by the attached Warrant Certificate, together with all right, title
      and
      interest therein, and does hereby constitute and appoint
      _________________________________________ as
      its
      due and lawful attorney, to register the transfer of said Warrants on the books
      of Herborium Group, Inc., and to execute a new Warrant Certificate in the name
      of ___________________________, whose address is
      __________________________________________________evidencing the number of
      Warrants so sold, assigned and transferred hereby. If the number of Warrants
      sold, assigned or transferred hereunder is less than the unexpired number of
      Warrants evidenced by the attached Warrant Certificate, then the undersigned
      requests that a new Warrant Certificate for an amount of Warrants equal to
      the
      unexpired number of Warrants evidenced by the attached Warrant Certificate
      that
      were not sold, transferred or assigned be registered in the name of the
      undersigned.

     

    Signed
      and delivered as a deed on ____________________________________,
      20__________.

     

    
      	
              Name
                of holder of Warrant Certificate:

            
	 
	  
              
	 
	
              (Please
                Print) Address:

            
	
               

            
	 
	
              Federal
                Tax Identification Number:

            
	 
	
               

            
	
              (if
                applicable)

            
	 
	
               

            
	
              Signature

            

    

     

    Note:
      The above signature must correspond with the name as written in the first
sentence
      of
      the attached Warrant Certificate in every particular, without alteration or
      enlargement or any change whatever, and such signature must be
guaranteed.

     

    
      	
              Signature Guaranteed:
                __________________________________ Dated:______________________,
                20_______________

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