Document:

EXHIBIT 10.77

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED,
ASSIGNED, PLEDGED, OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS
THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO THE COMPANY AND ITS COUNSEL AND FROM ATTORNEYS REASONABLY
ACCEPTABLE TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
REQUIRED.

                           U.S. HELICOPTER CORPORATION

                                     WARRANT

      THIS CERTIFIES THAT, for value received, PHILADELPHIA FINANCIAL, LLC (the
"Holder") or its registered assigns is entitled to purchase from U.S. HELICOPTER
CORPORATION (the "Company") at any time or from time to time during the period
specified in Paragraph 2 hereof 600,000 (SIX HUNDRED THOUSAND) fully paid and
non-assessable shares of the Company's Common Stock, $.001 par value per share
(the "Common Stock"), at an exercise price per share equal to $0.20 per share
(the "Exercise Price"). This Warrant is being issued pursuant to the terms and
conditions of that certain Note Purchase Agreement dated as of the date hereof
between the Holder and the Company (the "Note Purchase Agreement"). Any
capitalized terms not otherwise defined herein shall have the definitions set
forth in the Note Purchase Agreement.

      The term "Warrant Shares," as used herein, refers to the shares of Common
Stock purchasable hereunder. The Warrant Shares and the Exercise Price are
subject to adjustment as provided in Paragraph 4 hereof. This Warrant is subject
to the following terms, provisions, and conditions:

      1. MANNER OF EXERCISE; ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES.
Subject to the provisions hereof, this Warrant may be exercised by the holder
hereof, in whole or in part, by the surrender of this Warrant, together with a
completed exercise agreement in the form attached hereto (the "Exercise
Agreement"), to the Company during normal business hours on any business day at
the Company's principal executive offices (or such other office or agency of the
Company as it may designate by notice to the holder hereof), and upon (i)
payment to the Company in cash, by certified or official bank check or by wire
transfer for the account of the Company of the Exercise Price for the Warrant
Shares specified in the Exercise Agreement or (ii) delivery to the Company of a
written notice of an election to effect a "Cashless Exercise" (as defined in
Section 11(c) below) for the Warrant Shares specified in the Exercise Agreement.
The Warrant Shares so purchased shall be deemed to be issued to the holder
hereof or such holder's designee, as the record owner of such shares, as of the
close of business on the date on which this Warrant shall have been surrendered,
the completed Exercise Agreement shall have been delivered, and payment shall
have been made for such shares as set forth above. Certificates for the Warrant
Shares so purchased, representing the aggregate number of shares specified in
the Exercise Agreement, shall be delivered to the holder hereof promptly after
this Warrant shall have been so exercised. The certificates so delivered shall
be in such denominations as may be requested by the holder hereof and shall be
registered in the name of such holder or such other name as shall be designated
by such holder. 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 holder a new Warrant in
substantially identical form and dated as of the date of such exercise
representing the number of shares with respect to which this Warrant shall not
then have been exercised.
<PAGE>

      2. PERIOD OF EXERCISE. This Warrant is exercisable at any time or from
time to time on or after the date hereof and before 5:00 p.m., New York, New
York time on the fifth anniversary of such date (the "Exercise Period").

      3. CERTAIN AGREEMENTS OF THE COMPANY. The Company hereby covenants and
agrees as follows:

            (A) SHARES TO BE FULLY PAID. All Warrant Shares will, upon issuance
      in accordance with the terms of this Warrant, be validly issued and
      outstanding, fully paid, and nonassessable and free from all taxes, liens,
      and charges with respect to the issue thereof.

            (B) RESERVATION OF SHARES. During the Exercise Period, the Company
      shall at all times have authorized, and reserved free of preemptive rights
      and other similar contractual rights of stockholders, for the purpose of
      issuance upon exercise of this Warrant, a sufficient number of shares of
      Common Stock to provide for the exercise of this Warrant.

            (C) LISTING. The Company shall promptly secure the listing of the
      shares of Common Stock issuable upon exercise of the Warrant upon each
      national securities exchange or automated quotation system, if any, upon
      which shares of Common Stock are then listed (subject to official notice
      of issuance upon exercise of this Warrant) and shall maintain, so long as
      any other shares of Common Stock shall be so listed, such listing of all
      shares of Common Stock from time to time issuable upon the exercise of
      this Warrant.

            (D) SUCCESSORS AND ASSIGNS. This Warrant will be binding upon any
      entity succeeding to the Company by merger, consolidation, or acquisition
      of all or substantially all the Company's assets.

            (E) NOTICES OF RECORD DATE, ETC. In the event of:

                  (i) any taking by the Company of a record of the holders of
            Common Stock for the purpose of determining the holders who are
            entitled to receive any dividend or other distribution,

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                  (ii) any capital reorganization of the Company, any
            reclassification or recapitalization of the capital stock of the
            Company, or any transfer of all or substantially all the assets of
            the Company to, or consolidation or merger of, the Company with or
            into any person,

                  (iii) any voluntary or involuntary dissolution, liquidation or
            winding- up of the Company, or

                  (iv) a sale of substantially all of the outstanding capital
            stock of the Company or the issuance of new shares representing the
            majority of the Company's right to vote,

then and in each such event the Company will mail to the Holder a notice
specifying the record date for voting or the date of closing, as applicable, of
any event (i) through (iv) above. Such notice shall be delivered to the Holder
at least 20 days prior to the date of the relevant event.

      4. ADJUSTMENT AND ANTIDILUTION PROVISIONS. On or after the date of
issuance of this Warrant, the Warrant Exercise Price and number of shares
issuable pursuant to this Warrant shall be subject to adjustment as follows:

            (A) In case the Company shall (i) declare a dividend or make a
      distribution on its outstanding shares of Common Stock in shares of Common
      Stock, (ii) subdivide or reclassify its outstanding shares of Common Stock
      into a greater number of shares, or (iii) combine or reclassify its
      outstanding shares of Common Stock into a smaller number of shares, the
      Exercise Price in effect at the time of the record date for such dividend
      or distribution or of the effective date of such subdivision, combination
      or reclassification shall be adjusted so that it shall equal the price
      determined by multiplying the Exercise Price by a fraction, the
      denominator of which shall be the number of shares of Common Stock
      outstanding after giving effect to such action, and the numerator of which
      shall be the number of shares of Common Stock immediately prior to such
      action. Such adjustment shall be made each time any event listed above
      shall occur.

            (B) Whenever the Exercise Price payable upon exercise of each
      Warrant is adjusted pursuant to Subsection (a) above, the number of shares
      purchasable upon exercise of this Warrant shall simultaneously be adjusted
      by multiplying the number of shares initially issuable upon exercise of
      this Warrant by the Exercise Price in effect on the date hereof and
      dividing the product so obtained by the Exercise Price, as adjusted.

            (C) All calculations under this Section 4 shall be made to the
      nearest cent or to the nearest one-hundredth of a share, as the case may
      be. Anything in this Section 4 to the contrary notwithstanding, the
      Company shall be entitled, but shall not be required, to make such changes
      in the Exercise Price in addition to those required by this Section 4, as
      it shall determine, in its sole discretion, to be advisable in order that
      any dividend or distribution in shares of Common Stock, or any
      subdivision, reclassification or combination of Common Stock, hereafter
      made by the Corporation shall not result in any Federal Income tax
      liability to the holders of the Common Stock or securities convertible
      into Common Stock (including warrants).

            (D) Whenever the Exercise Price is adjusted, as herein provided, the
      Corporation shall promptly cause a notice setting forth the adjusted
      Exercise Price and adjusted number of shares issuable upon exercise of
      each Warrant to be mailed to the Holder, at its last address appearing in
      the Company's Warrant Register. The Company may retain a firm of
      independent certified public accountants selected by the Board of
      Directors (who may be the regular accountants employed by the Company) to
      make any computation required by this Section 4, and a certificate signed
      by such firm shall be conclusive evidence of the correctness of such
      adjustment absent a showing of mathematical or other error.

                                       3
<PAGE>

      5. ISSUE TAX. The issuance of certificates for Warrant Shares upon the
exercise of this Warrant shall be made without charge to the holder of this
Warrant or such shares for any issuance tax or other costs in respect thereof,
provided that the Company shall not be required to pay any tax which may be
payable in respect of any transfer involved in the issuance and delivery of any
certificate in a name other than the holder of this Warrant.

      6. NO RIGHTS OR LIABILITIES AS A SHAREHOLDER. This Warrant shall not
entitle the holder hereof to any voting rights or other rights as a shareholder
of the Company. No provision of this Warrant, in the absence of affirmative
action by the holder hereof to purchase Warrant Shares, and no mere enumeration
herein of the rights or privileges of the holder hereof, 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.

      7. TRANSFER, EXCHANGE, AND REPLACEMENT OF WARRANT.

            (A) RESTRICTION ON TRANSFER. This Warrant and the rights granted to
      the holder hereof are transferable, in whole or in part, upon surrender of
      this Warrant, together with a properly executed assignment in the form
      attached hereto, at the office or agency of the Company referred to in
      Paragraph 7(e) below, provided, however, that any transfer or assignment
      shall be subject to the conditions set forth in Paragraph 7(f) hereof.
      Until due presentment for registration of transfer on the books of the
      Company, the Company may treat the registered holder hereof as the owner
      and holder hereof for all purposes, and the Company shall not be affected
      by any notice to the contrary.

            (B) WARRANT EXCHANGEABLE FOR DIFFERENT DENOMINATIONS. This Warrant
      is exchangeable, upon the surrender hereof by the holder hereof at the
      office or agency of the Company referred to in Paragraph 7(e) below, for
      new Warrants of like tenor representing in the aggregate the right to
      purchase the number of shares of Common Stock which may be purchased
      hereunder, each of such new Warrants to represent the right to purchase
      such number of shares as shall be designated by the holder hereof at the
      time of such surrender.

            (C) REPLACEMENT OF WARRANT. Upon receipt of evidence reasonably
      satisfactory to the Company of the loss, theft, destruction, or mutilation
      of this Warrant and, in the case of any such loss, theft, or destruction,
      upon delivery of an indemnity agreement reasonably satisfactory in form
      and amount to the Company, or, in the case of any such mutilation, upon
      surrender and cancellation of this Warrant, the Company, at its expense,
      will execute and deliver, in lieu thereof, a new Warrant of like tenor.

                                       4
<PAGE>

            (D) CANCELLATION; PAYMENT OF EXPENSES. Upon the surrender of this
      Warrant in connection with any transfer, exchange, or replacement as
      provided in this Paragraph 7, this Warrant shall be promptly canceled by
      the Company. The Company shall pay all taxes (other than securities
      transfer taxes) and all other expenses (other than legal expenses, if any,
      incurred by the holder or transferees) and charges payable in connection
      with the preparation, execution, and delivery of Warrants pursuant to this
      Paragraph 7.

            (E) REGISTER. The Company shall maintain, at its principal executive
      offices (or such other office or agency of the Company as it may designate
      by notice to the holder hereof), a register for this Warrant, in which the
      Company shall record the name and address of the person in whose name this
      Warrant has been issued, as well as the name and address of each
      transferee and each prior owner of this Warrant.

            (F) EXERCISE OR TRANSFER WITHOUT REGISTRATION. If, at the time of
      the surrender of this Warrant in connection with any exercise, transfer,
      or exchange of this Warrant, this Warrant (or, in the case of any
      exercise, the Warrant Shares issuable hereunder), shall not be registered
      under the Securities Act of 1933, as amended (the "Securities Act") and
      under applicable state securities or blue sky laws, the Company may
      require, as a condition of allowing such exercise, transfer, or exchange,
      (i) that the holder or transferee of this Warrant, as the case may be,
      furnish to the Company a written opinion of counsel, which opinion and
      counsel are reasonably acceptable to the Company, to the effect that such
      exercise, transfer, or exchange may be made without registration under
      said Act and under applicable state securities or blue sky laws, (ii) that
      the holder or transferee execute and deliver to the Company an investment
      letter in form and substance reasonably acceptable to the Company and
      (iii) that the transferee be an "accredited investor" as defined in Rule
      501(a) of Regulation D promulgated under the Securities Act; provided that
      no such opinion, letter or status as an "accredited investor" shall be
      required in connection with a transfer pursuant to Rule 144 under the
      Securities Act. The first holder of this Warrant, by taking and holding
      the same, represents to the Company that such holder is acquiring this
      Warrant for investment and not with a view to the distribution thereof.

      8. REGISTRATION RIGHTS. The initial holder of this Warrant (and certain
assignees thereof) shall have registration rights with respect to the Warrant
Shares as are set forth in the Note Purchase Agreement.

      9. NOTICES. All notices, requests, and other communications required or
permitted to be given or delivered hereunder to the holder of this Warrant shall
be in writing, and shall be personally delivered, or shall be sent by certified
or registered mail or by recognized overnight mail courier, postage prepaid and
addressed, to such holder at the address shown for such holder on the books of
the Company, or at such other address as shall have been furnished to the
Company by notice from such holder. All notices, requests, and other
communications required or permitted to be given or delivered hereunder to the
Company shall be in writing, and shall be personally delivered, or shall be sent
by certified or registered mail or by recognized overnight mail courier, postage
prepaid and addressed, to the office of the Company at 6 East River Piers, Suite
216, Downtown Manhattan Heliport, New York, New York 10004, Attention: Chief
Executive Officer, or at such other address as shall have been furnished to the
holder of this Warrant by notice from the Company. Any such notice, request, or
other communication may be sent by facsimile, but shall in such case be
subsequently confirmed by a writing personally delivered or sent by certified or
registered mail or by recognized overnight mail courier as provided above. All
notices, requests, and other communications shall be deemed to have been given
either at the time of the receipt thereof by the person entitled to receive such
notice at the address of such person for purposes of this Paragraph 9, or, if
mailed by registered or certified mail or with a recognized overnight mail
courier two business days following deposit with the United States Post Office
or such overnight mail courier, if postage is prepaid and the mailing is
properly addressed, as the case may be.

                                       5
<PAGE>

      10. GOVERNING LAW. THIS WARRANT SHALL BE ENFORCED, GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICT OF LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE
EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK,
NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS
ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO
THE MAINTENANCE OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT
SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN
EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL
NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER
THIS WARRANT SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING
ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH
DISPUTE.

      11. MISCELLANEOUS.

            (A) AMENDMENTS. This Warrant and any provision hereof may only be
      amended by an instrument in writing signed by the Company and the holder
      hereof.

            (B) DESCRIPTIVE HEADINGS. The descriptive headings of the several
      paragraphs of this Warrant are inserted for purposes of reference only,
      and shall not affect the meaning or construction of any of the provisions
      hereof.

            (C) CASHLESS EXERCISE. In lieu of a monetary payment of the
      aggregate Exercise Price, the Holder may elect to receive, without the
      payment of any additional consideration, shares equal to the value of this
      Warrant or portion thereof by the surrender of such Warrant to the Company
      with the "cashless exercise" election marked in the form of Subscription
      Notice. Thereupon, the Company shall issue to the Holder, such number of
      fully paid and non-assessable shares as is computed using the following
      formula:

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<PAGE>

                                   X = Y(A-B)
                                       ------
                                          A

where       X=    the number of Shares to be issued to the Holder pursuant to
                  this Section 11(c) upon such cashless exercise election.

            Y=    the number of shares covered by this Warrant in respect of
                  which the cashless exercise election is made.

            A=    the Fair Market Value (as defined in Article V hereof) of one
                  Share, as at the time the cashless exercise election is made.

            B=    the Exercise Price in effect under this Warrant at the time
                  the cashless exercise election is made.

            For purposes of this section, "Fair Market Value" means the value of
      a share of Common Stock on a particular date, determined as follows: (i)
      if the Common Stock is not listed on such date on any national securities
      exchange but is traded in the over-the-counter market, the closing "bid"
      quotations of a share of Common Stock on such date (or if none, on the
      most recent date on which there were bid quotations of a share of Common
      Stock), as reported on the National Association of Securities Dealers,
      Inc. Automated Quotation System, or, if not so reported, as reported by
      the National Quotation Bureau, Incorporated, or any other similar service
      selected by the Board; or (ii) if the Common Stock is listed on such date
      on one or more national securities exchanges, the last reported sale price
      of a share of Common Stock on such date as recorded on the composite tape
      system, or, if such system does not cover the Common Stock, the last
      reported sale price of a share of Common Stock on such date on the
      principal national securities exchange on which the Common Stock is
      listed, or if no sale of Common Stock took place on such date, the last
      reported sale price of a share of Common Stock on the most recent day on
      which a sale of a share of Common Stock took place as recorded by such
      system or on such exchange, as the case may be; or (iii) if the Common
      Stock is neither listed on such date on a national securities exchange nor
      traded in the over-the-counter market, as determined by the Company.

            (D) REMEDIES. The Company acknowledges that a breach by it of its
      obligations hereunder will cause irreparable harm to the holder, by
      vitiating the intent and purpose of the transaction contemplated hereby.
      Accordingly, the Company acknowledges that the remedy at law for a breach
      of its obligations under this Warrant will be inadequate and agrees, in
      the event of a breach or threatened breach by the Company of the
      provisions of this Warrant, that the holder shall be entitled, in addition
      to all other available remedies at law or in equity, and in addition to
      the penalties assessable herein, to an injunction or injunctions
      restraining, preventing or curing any breach of this Warrant and to
      enforce specifically the terms and provisions thereof, without the
      necessity of showing economic loss and without any bond or other security
      being required.

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<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
its duly authorized officer.

                                                    U. S. HELICOPTER CORPORATION

                                                    By:
                                                       -------------------------
                                                       George J. Mehm, Jr.
                                                       Chief Financial Officer

Dated: August 28, 2008

                                       8
<PAGE>

                           FORM OF EXERCISE AGREEMENT

                                                        Dated:_________ __, 200_

To:

The undersigned, pursuant to the provisions set forth in the within Warrant,
hereby agrees to purchase _______ shares of Common Stock covered by such
Warrant, and makes payment herewith in full therefor at the price per share
provided by such Warrant in cash or by certified or official bank check or by
wire transfer for the account of the Company to [INSERT THE COMPANY'S WIRE
TRANSFER DETAILS] in the amount of $_______, or, if the resale of such Common
Stock by the undersigned is not currently registered pursuant to an effective
registration statement under the Securities Act of 1933, as amended, by
surrender of securities issued by the Company (including a portion of the
Warrant) having a market value (in the case of a portion of this Warrant,
determined in accordance with Section 11(c) of the Warrant) equal to $_______.
Please issue a certificate or certificates for such shares of Common Stock in
the name of and pay any cash for any fractional share to:

                                        Name:        ___________________________

                                        Signature:   ___________________________
                                        Address:     ___________________________
                                                     ___________________________

                                        Note: The above signature should
                                        correspond exactly with the name on the
                                        face of the within Warrant, if
                                        applicable.

and, if said number of shares of Common Stock shall not be all the shares
purchasable under the within Warrant, a new Warrant is to be issued in the name
of said undersigned covering the balance of the shares purchasable thereunder
less any fraction of a share paid in cash.
<PAGE>

                               FORM OF ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers
all the rights of the undersigned under the within Warrant, with respect to the
number of shares of Common Stock covered thereby set forth herein below, to:

Name of Assignee                    Address                      No. of Shares
----------------                    -------                      -------------

, and hereby irrevocably constitutes and appoints _____________________________
as agent and attorney-in-fact to transfer said Warrant on the books of the
within-named corporation, with full power of substitution in the premises.

Dated: _________ __, 200_

In the presence of:
                                                     ___________________________

                                        Name:        ___________________________

                                        Signature:   ___________________________
       Title of Signing Officer or Agent (if any):   ___________________________

                                        Address:     ___________________________
                                                     ___________________________

                                        Note: The above signature should
                                        correspond exactly with the name on the
                                        face of the within Warrant, if
                                        applicable.EXHIBIT 10.78

                             NOTE PURCHASE AGREEMENT

      THIS NOTE PURCHASE AGREEMENT ("Agreement") is made as of this 12th day of
September, 2008, between U.S. HELICOPTER CORPORATION (the "Company"), a Delaware
corporation, and PORTFOLIO LENDERS II, LLC, a New Jersey limited liability
company (the "Purchaser").

                                    RECITALS

      WHEREAS, the Company has authorized the issuance and sale of the Company's
unsecured Promissory Note to Purchaser in the aggregate principal amount of
$125,000.00, having the terms set forth in Exhibit A attached hereto (the
"Note") and certain warrants as described herein; and

      WHEREAS, the Purchaser desires to purchase, and the Company desires to
issue, the Note and warrants on the terms set forth in this Agreement;

      NOW, THEREFORE, in consideration of the foregoing and of the terms and
conditions contained in this Agreement, the Company and the Purchaser agree as
follows:

      1. PURCHASE AND SALE OF THE NOTE.

            1.1 Subject to the terms and conditions contained in this Agreement,
      at the Closing (as hereinafter defined) the Purchaser shall purchase from
      the Company and the Company shall sell to the Purchaser the Note for
      $125,000.00 (ONE HUNDRED TWENTY FIVE THOUSAND DOLLARS AND 00/100) (the
      "Loan Amount") which shall be payable via wire transfer to the Company's
      designated account (not later than the Closing Date).

            1.2 The Note shall be repaid, along with all accrued and unpaid
      interest, 30 (thirty) days after the Closing Date.

            1.3 The Note shall bear interest at the rate of 15% per annum based
      on a 365-day year. Any prepaid interest paid shall be non-refundable in
      the event of early repayment.

            1.4 As additional consideration, the Purchaser shall receive from
      the Company an origination fee equal to five percent (5%) of the Loan
      Amount, equal to the sum of $6,250, which shall be payable on the Closing
      Date.

            1.5 Any and all principal and accrued but unpaid interest under the
      Note shall be convertible at the sole option of the Purchaser into shares
      of the Company's common stock, par value $0.001 per share, at a price
      equal to $0.20 per share. The shares of common stock issuable under the
      Note (the "Conversion Shares") shall contain piggyback registration
      rights.
<PAGE>

      2. CLOSING. The closing of the purchase and sale of the Note (the
"Closing") shall take place on September 12, 2008, or such other day as agreed
to by the parties (the "Closing Date").

      3. INDUCEMENT WARRANT. As an inducement to purchase the Note, the
Purchaser shall be entitled to receive a warrant to purchase up to 250,000
shares of the Company's common stock (the "Warrant"). The Warrant shall contain
an exercise price of $0.20 per share and be exercisable for a period of five
years from the Closing Date. The shares issuable upon exercise of the Warrant
(the "Warrant Shares") shall contain piggyback registration rights.

      4. REPRESENTATIONS AND WARRANTIES.

            4.1 Representations and Warranties of the Company. The Company
      represents and warrants that as of the date of this Agreement:

                  (a) Existence. The Company is a corporation duly organized and
            in good standing under the laws of the State of Delaware and is duly
            qualified to do business and is in good standing in all states where
            such qualification is necessary, except for those jurisdictions in
            which the failure to qualify would not, in the aggregate, have a
            material adverse effect on the Company's financial condition,
            results of operations or business.

                  (b) Authority. The execution and delivery by the Company of
            this Agreement, the Note, the Warrants and the Registrable
            Securities (together, the "Securities") (i) are within the Company's
            corporate powers; (ii) are duly authorized by the Company's board of
            directors; (iii) are not in contravention of the terms of the
            Company's certificate of incorporation or bylaws; (iv) are not in
            contravention of any law or laws; (v) except for the filing of a
            Form D Notice with the Securities and Exchange Commission and any
            exemption filing related thereto which may be required pursuant to
            applicable state securities or "blue sky" laws, do not require any
            governmental consent, registration or approval; (vi) do not
            contravene any contractual or governmental restriction binding upon
            the Company; and (vii) will not result in the imposition of any
            lien, charge, security interest or encumbrance upon any property of
            the Company under any existing indenture, mortgage, deed of trust,
            loan or credit agreement or other material agreement or instrument
            to which the Company is a party or by which the Company or any of
            the Company's property may be bound or affected.

                  (c) Binding Effect. This Agreement, the Note and the Warrants
            have been duly authorized, executed and delivered by the Company and
            constitute the valid and legally binding obligation of the Company,
            enforceable in accordance with their respective terms, subject to
            bankruptcy, insolvency, reorganization and other laws of general
            applicability relating to or affecting creditors' rights and to
            general equity principles. Upon issuance, the Registrable Securities
            shall be duly authorized, validly issued, fully paid and
            nonassessable shares of the Company's common stock.

                                       2
<PAGE>

                  (d) Capitalization. The authorized capital stock of the
            Company consists of 500,000,000 shares of Common Stock, par value
            $0.001 per share, 45,712,669 shares of which were issued and
            outstanding as of September 1, 2008, and 25,000,000 shares of
            authorized Preferred Stock, par value $0.001 per share, of which
            none are issued and outstanding.

                  (e) Disclosure Documents. The Company has furnished the
            Purchaser or made available at the website of the Securities and
            Exchange Commission (the "SEC") (http://www.sec.gov) copies of the
            Company's (i) Annual Report on Form 10-KSB for the fiscal year ended
            December 31, 2007 as filed with the SEC on April 15, 2008; (ii) the
            Company's Quarterly Reports on Form 10-QSB for the fiscal quarters
            ended March 31, 2008 and June 30, 2008 as filed with the SEC on May
            20, 2008 and August 18, 2008, respectively, and (iii) the Company's
            report on Form 8-K as filed on September 4, 2008 (together, the "SEC
            Documents").

                  (f) Securities Matters. Subject to the accuracy of the
            representations of the Purchaser set forth in Section 3.2 hereof,
            the offer, sale and issuance of the Securities as contemplated by
            this Agreement are exempt from the registration requirements of the
            Securities Act of 1933 as amended (the "Securities Act"). The
            Company has complied and will comply with all applicable state "blue
            sky" or securities laws in connection with the offer, sale and
            issuance of the Securities as contemplated by this Agreement.

            4.2 Representations and Warranties of the Purchaser. The Purchaser
      represents and warrants that as of the date of the execution of this
      Agreement:

                  (a) Authorization. This Agreement constitutes a valid and
            legally binding obligation of the Purchaser.

                  (b) Investment Representations. (i) The Purchaser has received
            and reviewed the SEC Documents and the Purchaser or the Purchaser's
            designated representatives have concluded a satisfactory due
            diligence investigation of the Company and have had an opportunity
            to review the documents provided by the Company and to have all of
            their questions related thereto satisfactorily answered.

                        (ii) The Purchaser understands the fundamental risks of
                  the Securities; has determined that he/she/it can reasonably
                  benefit from the investment based upon net worth, income,
                  overall investment objectives and portfolio structure; that
                  the Purchaser's overall commitment to investments which are
                  not readily marketable is not disproportionate to the
                  Purchaser's net worth, and that the Securities will not cause
                  such overall commitment to become excessive; and, that the
                  Purchaser is able to bear the economic risk of the Securities,
                  including the loss of the entire value of its investment.
                  Additionally, the Purchaser understands that that there are
                  restrictions on the Purchaser's right to liquidate the
                  Securities.

                                       3
<PAGE>

                        (iii) The Purchaser has reviewed the Risk Factors
                  sections included in the SEC Documents, and understands the
                  Risk Factors describing the fact that the Company (a) has
                  substantial liabilities, (b) may not be able to obtain
                  sufficient funds to grow its business and the subsequent
                  financing may be on terms adverse to the Securities and (c) is
                  currently not profitable.

                        (iv) The Purchaser (or its members and/or officers) has
                  previously invested in unregistered securities and has
                  sufficient financial and investing expertise to evaluate and
                  understand the risks of the Securities.

                        (v) The Purchaser has received from the Company, and is
                  relying on, no representations or projections (except as set
                  forth in this Agreement or the SEC Documents) with respect to
                  the Company's business and prospects.

                        (vi) The Purchaser is an "accredited investor" within
                  the meaning of Regulation D under the Securities Act.

                        (vii) The Purchaser is acquiring the Securities for
                  investment purposes only without intent to distribute the
                  same, and acknowledges that the Securities have not been
                  registered under the Securities Act and applicable state
                  securities laws, and accordingly, constitutes "restricted
                  securities" for purposes of the Securities Act and such state
                  securities laws.

                        (viii) The Purchaser acknowledges that it will not be
                  able to transfer the Securities except upon compliance with
                  the registration requirements of the Securities Act and
                  applicable state securities laws or exemptions therefrom.

                        (ix) The certificates and/or instruments evidencing the
                  Securities will contain a legend to the foregoing effect.

      5. REGISTRATION RIGHTS. The initial holder of the Note and Warrants (and
certain assignees thereof) shall have registration rights as follows:

            (a) Participation in Registered Offerings. If the Company proposes
      or is required to register any of its shares or other equity securities
      for public sale for cash under the Securities Act (other than on Forms S-4
      or S-8 or similar registration forms), it will at each such time or times
      give written notice to the Purchaser of its intention to do so. Upon the
      written request of the Purchaser given within twenty (20) days after
      receipt of any such notice, the Company shall use its best efforts to
      cause to be included in such registration any Conversion Shares or
      Registrable Securities (together, "Registrable Securities") held by the
      Purchaser requested to be registered; provided, that if the managing
      underwriter advises that less than all of the shares requested to be
      registered should be offered for sale so as not materially and adversely
      to affect the price or salability of such offering being registered by the

                                       4
<PAGE>

      Company, the Purchaser (but not the Company to the extent it desires to
      include shares for its own account) shall reduce the number of its
      Registrable Securities to be included in the registration statement as
      required by the underwriter to the extent requisite of all prospective
      sellers of the securities proposed to be registered (other than the
      Company) on a pro rata basis according to the amounts of securities
      proposed to be registered by all prospective sellers to permit the sale or
      other disposition (in accordance with the intended method of disposition
      thereof as aforesaid) by the prospective seller or sellers of the
      securities so registered. The registration requested pursuant to this
      Section 5(a) is referred to herein as the "Piggyback Registration".

            (b) Obligations of Purchaser. It shall be a condition precedent to
      the obligation of the Company to register any Registrable Securities
      pursuant to this Section 5 that the Purchaser shall furnish to the Company
      such information regarding the Registrable Securities held and the
      intended method of disposition thereof and other information concerning
      the Purchaser as the Company shall reasonably request and as shall be
      required in connection with the registration statement to be filed by the
      Company. If after a registration statement becomes effective the Company
      advises the Purchaser that the Company considers it appropriate to amend
      or supplement the applicable registration statement, the Purchaser shall
      suspend further sales of the Registrable Securities until the Company
      advises the Purchaser that such registration statement has been amended or
      supplemented.

            (c) Registration Proceedings. Whenever the Company is required by
      the provisions of this Section 5 to effect the registration of the
      Registrable Securities under the Securities Act, the Company shall:

                  (i) Prepare and promptly file with the SEC a registration
            statement with respect to such securities and use its best efforts
            to cause such registration statement to become effective within 90
            days of filing and remain effective;

                  (ii) Prepare and file with the SEC such amendments to such
            registration statement and supplements to the prospectus contained
            therein as may be necessary to keep such registration statement
            effective;

                  (iii) Furnish to the Purchaser and to the underwriters of the
            securities being registered such reasonable number of copies of the
            registration statement, preliminary prospectus, final prospectus and
            such other documents as such underwriters may reasonably request in
            order to facilitate the public offering of such securities;

                  (iv) Use its best efforts to register or qualify the
            securities covered by such registration statement under such state
            securities or Blue Sky Laws of such jurisdictions as the Purchaser
            may reasonably request within twenty (20) days following the
            original filing of such registration statement, except that the
            Company shall not for any purpose be required to execute a general
            consent to service of process or to qualify to do business as a
            foreign corporation in any jurisdiction wherein it is not so
            qualified;

                                       5
<PAGE>

                  (v) Notify the Purchaser, promptly after it shall receive
            notice thereof, of the time when such registration statement has
            become effective or a supplement to any prospectus forming a part of
            such registration statement has been filed;

                  (vi) Notify the Purchaser promptly of any request by the SEC
            for the amending or supplementing of such registration statement or
            prospectus or for additional information; and

                  (vii) Prepare and promptly file with the SEC and promptly
            notify the Purchaser of the filing of such amendment or supplement
            to such registration statement or prospectus as may be necessary to
            correct any statements or omissions if, at the time when a
            prospectus relating to such securities is required to be delivered
            under the Securities Act, any event shall have occurred as the
            result of which any such prospectus or any other prospectus as then
            in effect would include an untrue statement of a material fact or
            omit to state any material fact necessary to make the statements
            therein, in light of the circumstances in which they were made, not
            misleading. Notwithstanding any provision herein to the contrary,
            the Company shall not be required to amend, supplement, or update a
            prospectus contained in any registration statement if to do so would
            result in an unduly burdensome expense to the Company.

            (d) Expenses. With respect to the inclusion of the Registrable
      Securities in a registration statement pursuant to this Section 5, all
      registration expenses, fees, costs and expenses of and incidental to such
      registration, shall be borne by the Company; provided, however, that
      Purchaser shall bear its own professional fees and pro rata share of the
      underwriting discounts and commissions. The fees, costs and expenses of
      registration to be borne by the Company shall include, without limitation,
      all registration, filing, and printing expenses, fees and disbursements of
      counsel and accountants for the Company, fees and disbursements of counsel
      for the underwriter or underwriters of such securities (if the Company
      and/or selling security holders are required to bear such fees and
      disbursements), and all legal fees and disbursements and other expenses of
      complying with state securities or Blue Sky laws of any jurisdiction in
      which the securities to be offered are to be registered or qualified.

            (e) Indemnification of the Purchaser. Subject to the conditions set
      forth below, in connection with any registration of the Registrable
      Securities pursuant to this Section 5, the Company agrees to indemnify and
      hold harmless the Purchaser, any underwriter for the offering and each of
      their officers and directors and agents and each other person, if any, who
      controls Purchaser or their underwriter (each, a "Purchaser Indemnified
      Party"), within the meaning of Section 15 of the Securities Act, as
      follows:

                                       6
<PAGE>

                  (i) Against any and all loss, claim, damage and expense
            whatsoever arising out of or based upon (including, but not limited
            to, any and all expense whatsoever reasonably incurred in
            investigating, preparing or defending any litigation, commenced or
            threatened, or any claim whatsoever based upon) any untrue or
            alleged untrue statement of a material fact contained in any
            preliminary prospectus (if used prior to the effective date of the
            registration statement), the registration statement or the
            prospectus (as from time to time amended and supplemented), or in
            any application or other document executed by the Company or based
            upon written information furnished by the Company filed in any
            jurisdiction in order to qualify the Company's securities under the
            securities laws thereof, or the omission or alleged omission
            therefrom of a material fact required to be stated therein or
            necessary to make the statements therein not misleading, or any
            other violation of applicable federal or state statutory or
            regulatory requirements or limitations relating to action or
            inaction by the Company in the course of preparing, filing, or
            implementing such registered offering; provided, however, that the
            indemnity agreement contained in this section shall not apply to any
            loss, claim, damage, liability or action arising out of or based
            upon any untrue or alleged untrue statement or omission made in
            reliance upon and in conformity with any information furnished in
            writing to the Company by or on behalf of the Purchaser expressly
            for use in connection therewith or arising out of any action or
            inaction of the Purchaser;

                  (ii) Subject to the proviso contained in Subsection (i) above,
            against any and all loss, liability, claim, damage and expense
            whatsoever to the extent of the aggregate amount paid in settlement
            of any litigation, commenced or threatened, or of any claim
            whatsoever based upon any untrue statement or omission (including,
            but not limited to, any and all expense whatsoever reasonably
            incurred in investigating, preparing or defending against any such
            litigation or claim) if such settlement is effected with the written
            consent of the Company; and

                  (iii) In no case shall the Company be liable under this
            indemnity agreement with respect to any claim made against any
            Purchaser Indemnified Party unless the Company shall be notified, by
            letter or by facsimile confirmed by letter, of any action commenced
            against such Purchaser Indemnified Party, promptly after such person
            shall have been served with the summons or other legal process
            giving information as to the nature and basis of the claim. The
            failure to so notify the Company, if prejudicial in any material
            respect to the Company's ability to defend such claim, shall relieve
            the Company from its liability to the indemnified person under this
            Section 5(e), but only to the extent that the Company was
            prejudiced. The failure to so notify the Company shall not relieve
            the Company from any liability which it may have otherwise than on
            account of this indemnity agreement. The Company shall be entitled
            to participate at its own expense in the defense of any suit brought
            to enforce any such claim, but if the Company elects to assume the
            defense, such defense shall be conducted by counsel chosen by it,

                                       7
<PAGE>

            provided such counsel is reasonably satisfactory to the Purchaser
            Indemnified Party in any suit so brought. In the event the Company
            elects to assume the defense of any such suit and retain such
            counsel, the Purchaser Indemnified Party in the suit shall, after
            the date they are notified of such election, bear the fees and
            expenses of any counsel thereafter retained by them, as well as any
            other expenses thereafter incurred by them in connection with the
            defense thereof; provided, however, that if the Purchaser
            Indemnified Party reasonably believes that there may be available to
            it any defense or counterclaim different than those available to the
            Company or that representation of the Purchaser Indemnified Party by
            counsel for the Company presents a conflict of interest for such
            counsel, then the Purchaser Indemnified Party shall be entitled to
            defend such suit with counsel of its own choosing and the Company
            shall bear the fees, expenses and other costs of such separate
            counsel.

            (f) Indemnification of the Company. The Purchaser agrees to
      indemnify and hold harmless the Company, each underwriter for the
      offering, and each of their officers and directors and agents and each
      other person, if any, who controls the Company and the underwriter within
      the meaning of Section 15 of the Securities Act and any other stockholder
      selling securities against any and all such losses, liabilities, claims,
      damages and expenses as are indemnified against by the Company under
      Section 5(f) (i), (ii) and (iii) above; provided, however, that such
      indemnification by Purchaser hereunder shall be limited to any losses,
      liabilities, claims, damages, or expenses to the extent caused by any
      untrue statement of a material fact or omission of a material fact
      (required to be stated therein or necessary to make statements therein not
      misleading), if any made (or in settlement of any litigation effected with
      the written consent of such Purchasers, alleged to have been made) in any
      preliminary prospectus, the registration statement or prospectus or any
      amendment or supplement thereof or in any application or other document in
      reliance upon, and in conformity with, written information furnished in
      respect of such Purchaser by or on behalf of such Purchaser expressly for
      use in any preliminary prospectus, the registration statement or
      prospectus or any amendment or supplement thereof or in any such
      application or other document or arising out of any action or inaction of
      such Purchaser in implementing such registered offering. In case any
      action shall be brought against the Company, or any other person so
      indemnified, in respect of which indemnity may be sought against any
      Purchaser, such Purchaser shall have the rights and duties given to the
      Company, and each other person so indemnified shall have the rights and
      duties given to Purchaser, by the provisions of Section 5(f). The person
      indemnified agrees to notify the Purchaser promptly after the assertion of
      any claim against the person indemnified in connection with the sale of
      securities.

                                       8
<PAGE>

            (g) Contribution. If the indemnification provided for in Sections
      5(e) and 5(f) above are unavailable or insufficient to hold harmless an
      indemnified party in respect of any losses, claims, damages or liabilities
      (or actions in respect thereof) referred to therein, then each
      indemnifying party shall contribute to the amount paid or payable by such
      indemnified party as a result of such losses, claims, damages or
      liabilities (or actions in respect thereof) in such proportion as is
      appropriate to reflect the relative fault of the indemnified party, on one
      hand, and such indemnifying party, on the other hand, in connection with
      the statements or omissions which resulted in such losses, claims,
      damages, or liabilities (or actions in respect thereof). The relative
      fault shall be determined by reference to, among other things, whether the
      untrue or alleged untrue statement of a material fact or the omission or
      alleged omission to state a material fact relates to information supplied
      by the indemnified party, on one hand, or such indemnifying party, on the
      other hand, and the parties' relative intent, knowledge, access to
      information and opportunity to correct or prevent such statement or
      omission. No person who has committed fraudulent misrepresentation (within
      the meaning of the Securities Act) shall be entitled to contribution from
      any person who was not guilty of such fraudulent misrepresentation. The
      amount paid or payable by an indemnified party as a result of the losses,
      claims, damages or liabilities (or actions in respect thereof) referred to
      above in this Section shall be deemed to include any legal or other
      expenses reasonably incurred by such indemnified party in connection with
      investigating or defending any such action or claim.

            (h) Assignment of Registration Rights. The right to have the Company
      register Registrable Securities pursuant to this Warrant shall be
      automatically assignable to any transferee of all or any portion of the
      Registrable Securities if: (a) the Purchaser agrees in writing with the
      transferee or assignee to assign such rights, and a copy of such agreement
      is furnished to the Company within a reasonable time after such
      assignment, (b) the Company is, within a reasonable time after such
      transfer or assignment, furnished with written notice of (i) the name and
      address of such transferee or assignee, and (ii) the securities with
      respect to which such registration rights are being transferred or
      assigned, (c) following such transfer or assignment, the further
      disposition of such securities by the transferee or assignee is restricted
      under the 1933 Act and applicable state securities laws and, (d) at or
      before the time the Company receives the written notice contemplated by
      clause (b) of this sentence, the transferee or assignee agrees in writing
      with the Company to be bound by all of the provisions contained herein
      (the foregoing a "Permitted Transferee").

      6. MISCELLANEOUS.

            6.1 Confidentiality.

                  (a) The Purchaser agrees to keep confidential any and all
            non-public information delivered or made available to the Purchaser
            by the Company except for disclosures, as necessary, made by the
            Purchaser to the Purchaser's officers, directors, employees, agents,
            counsel and accountants each of whom shall be notified by the
            Purchaser of this confidentiality covenant and for whom the
            Purchaser shall be liable in the event of any breach of this
            covenant by any such individual or individuals; provided, however,
            that nothing herein shall prevent the Purchaser from disclosing such
            information (a) upon the order of any court or administrative
            agency, (b) upon the request or demand of any regulatory agency or
            authority having jurisdiction over the Purchaser, (c) which has been
            publicly disclosed or (d) to any of its members provided that any
            such members agree in writing (with a copy provided to the Company)

                                       9
<PAGE>

            to be bound by confidentiality provisions in form and substance
            substantially as are contained herein. In the event of a mandatory
            disclosure as described in clause (a) and/or (b) of the preceding
            sentence, the Purchaser shall promptly notify the Company in writing
            of any applicable order, request or demand for such information,
            cooperate with the Company if and to the extent that the Company
            elects to seek an appropriate protective order or other relief from
            such order, request, or demand, and disclose only the minimal amount
            of information ultimately required to be disclosed. The Purchaser
            shall not use for its own benefit, nor permit any other person to
            use for such person's benefit, any of the Company's non-public
            information including, without limitation, in connection with the
            purchase and/or sale of the Company's securities.

                  (b) The Company shall in no event disclose non-public
            information to the Purchaser, advisors to or representatives of the
            Purchaser unless prior to disclosure of such information the Company
            marks such information as "Non-Public Information - Confidential"
            and provides the Purchaser, such advisors and representatives with
            the opportunity to accept or refuse to accept such non-public
            information for review. The Company may, as a condition to
            disclosing any non-public information hereunder, require the
            Purchaser's advisors and representatives to enter into a
            confidentiality agreement in form reasonably satisfactory to the
            Company and the Purchaser.

                  (c) Nothing herein shall require the Company to disclose
            non-public information to the Purchaser or its advisors or
            representatives, and the Company represents that it does not
            disseminate non-public information to any Purchasers who purchase
            stock in the Company in a public offering, to money managers or to
            securities analysts.

            6.2 Legends. To the extent applicable, each note, certificate or
      other document evidencing the Securities to be purchased and sold pursuant
      to this Agreement shall be endorsed with the legends set forth below, and
      the Purchaser on behalf of itself and each holder of the Securities
      covenants that, except to the extent such restrictions are waived by the
      Company, it shall not transfer the Securities without complying with the
      restrictions on transfer described in the legends endorsed on such
      Securities:

                  (a) The following legend under the Securities Act:

                  "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
                  UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED,
                  AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR
                  HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER
                  SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH
                  ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL,
                  IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY
                  AND ITS COUNSEL AND FROM ATTORNEYS REASONABLY ACCEPTABLE TO
                  THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
                  REQUIRED."

                                       10
<PAGE>

                  (b) If required by the authorities of any state in connection
            with the issuance or sale of the Securities, the legend required by
            such state authority.

                  (c) The legend set forth above shall be removed from the
            Securities and the Company shall within two (2) business days issue
            a certificate without such legend to the holder of the Securities
            upon which it is stamped, if, unless otherwise required by state
            securities laws, (i) in connection with a sale transaction, provided
            the Securities are registered under the Securities Act or (ii) in
            connection with a sale transaction, after such holder provides the
            Company with an opinion of counsel, which opinion shall be in form,
            substance and scope customary for opinions of counsel in comparable
            transactions, to the effect that a public sale, assignment or
            transfer of the Securities may be made without registration under
            the Securities Act. The legend set forth above shall be removed from
            the Securities and the Company shall issue replacement Securities
            without such legend to the holder of the Securities immediately upon
            the registration of the Securities under the Securities Act.

            6.3 Fees and Expenses.

                  (a) The Company shall pay a structuring/finder's fee in an
            amount equal to 15 points, or $18,750 for a total investment of
            $125,000. The Company agrees that such fee may be deducted from the
            gross amount of the Loan Amount at Closing.

                  (b) The Company shall reimburse Purchaser for its reasonable
            legal fees and expenses in connection with the purchase of the
            Securities. The Company shall be responsible for all of its fees and
            expenses in connection with this transaction.

            6.4 Assignability; Successors. The provisions of this Agreement
      shall inure to the benefit of and be binding upon the permitted successors
      and assigns of the parties hereto.

            6.5 Survival. All agreements, covenants, representations and
      warranties made by the Company or by the Purchaser herein shall survive
      the execution and delivery of this Agreement.

            6.6 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED ACCORDING TO
      THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE PRINCIPLES
      THEREOF RELATING TO CONFLICTS OF LAWS.

                                       11
<PAGE>

            6.7 Counterparts: Headings. This Agreement may be executed in
      several counterparts, each of which shall be deemed an original, but such
      counterparts shall together constitute but one and the same agreement. The
      descriptive headings in this Agreement are inserted for convenience of
      reference only and shall not affect the construction of this Agreement.

            6.8 Legal Representation.

                  (a) Each party hereto represents and warrants that it has
            carefully read this Agreement and knows the contents hereof and that
            it has signed this Agreement freely and voluntarily and that each
            party has obtained independent counsel in reviewing this document
            and further acknowledges that the law firm of Gallagher, Briody &
            Butler has memorialized the within Agreement and has provided legal
            advice solely to the Company with respect to this Agreement.

                  (b) The Purchaser was provided the opportunity to retain
            individual counsel, and has retained or waived the right to retain
            individual counsel to review this Agreement.

            6.9 Entire Agreement, Amendments. This Agreement and the Exhibits
      contain the entire understanding of the parties with respect to the
      subject matter hereof, and supersede all other representations and
      understandings, oral or written, with respect to the subject matter
      hereof. No amendment, modification, alteration, or waiver of the terms of
      this Agreement or consent required under the terms of this Agreement shall
      be effective unless made in a writing, which makes specific reference to
      this Agreement and which has been signed by the Company and the Purchaser.
      Any such amendment, modification, alteration, waiver or consent shall be
      effective only in the specific instance and for the specific purpose for
      which given.

            6.10 Notices. All communications or notices required or permitted by
      this Agreement shall be in writing and shall be deemed to have been given
      or made when delivered in hand, deposited in the mail, or sent by
      facsimile, with confirmation (if sent by facsimile on a non-business day,
      receipt shall be deemed to have occurred on the next succeeding business
      day). Communications or notices shall be delivered personally or by
      certified or registered mail, postage, or by facsimile and addressed as
      follows, unless and until either of such parties notifies the other in
      accordance with this Section of a change of address:

            IF TO THE COMPANY:      U.S. Helicopter Corporation
                                    6 East River Piers, Suite 216
                                    Downtown Manhattan Heliport
                                    New York, NY 10004
                                    Attn.: John G. Murphy, CEO and President
                                    Telephone: 212-248-2002
                                    Fax: 212-248-0940

                                       12
<PAGE>

            WITH A COPY TO:         Gallagher, Briody & Butler
                                    155 Village Boulevard
                                    2nd Floor
                                    Princeton, New Jersey 08540
                                    Attn: Thomas P. Gallagher, Esq.
                                    Telephone: 609-452-6000
                                    Fax: 609-452-0090

            IF TO THE PURCHASER:    Portfolio Lenders II, LLC
                                    c/o Gallagher, Briody & Butler
                                    155 Village Boulevard
                                    2nd Floor
                                    Princeton, New Jersey 08540
                                    Attn: Thomas P. Gallagher, Esq.
                                    Telephone: 609-452-6000
                                    Fax: 609-452-0090

            6.11 Severability. Whenever possible, each provision of this
      Agreement shall be interpreted in such manner as to be effective and valid
      under applicable law, but if any provision of this Agreement shall be
      prohibited by or invalid under applicable law, such provision shall be
      ineffective to the extent of such prohibition or invalidity, without
      invalidating the remainder of such provision or the remaining provisions
      of this Agreement.

            6.12 Maximum Interest. It is expressly stipulated and agreed to be
      the intent of the Company and the Purchaser at all times to comply with
      the applicable law governing the maximum rate of interest payable on or in
      connection with all indebtedness and transactions hereunder (or applicable
      United States federal law to the extent that it permits Purchaser to
      contract for, charge, take, reserve or receive a greater amount of
      interest). If the applicable law is ever judicially interpreted so as to
      render usurious any amount of money or other consideration called for
      hereunder, or contracted for, charged, taken, reserved or received with
      respect to any loan or advance hereunder, or if acceleration of the
      maturity of the Note results in the Company's having paid any interest in
      excess of that permitted by law, then it is the Company's and the
      Purchaser's express intent that all excess cash amounts theretofore
      collected by Purchaser be credited on the principal balance of the Note
      (or if the Note has been or would thereby be paid in full, refunded to the
      Company), and the provisions of this Agreement immediately be deemed
      reformed and the amounts thereafter collectible hereunder reduced, without
      the necessity of the execution of any new document, so as to comply with
      the applicable law, but so as to permit the recovery of the fullest amount
      otherwise called for hereunder. The right to accelerate maturity of the
      Note does not include the right to accelerate any interest which has not
      otherwise accrued on the date of such acceleration, and the Purchaser does
      not intend to collect any unearned interest in the event of acceleration.

            [The remainder of this page is intentionally left blank.]

                                       13
<PAGE>

      IN WITNESS WHEREOF, this Agreement has been duly executed as of the day
and year first above written.

                                        U. S. HELICOPTER CORPORATION

                                        By:
                                           -------------------------------------
                                           John G. Murphy
                                           Chief Executive Officer and President

                                        PORTFOLIO LENDERS II, LLC

                                        By:
                                           -------------------------------------
                                           Thomas P. Gallagher
                                           Authorized Officer

                                       14
<PAGE>

                                                                       EXHIBIT A

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED,
ASSIGNED, PLEDGED, OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS
THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO THE COMPANY AND ITS COUNSEL AND FROM ATTORNEYS REASONABLY
ACCEPTABLE TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
REQUIRED.

                                 PROMISSORY NOTE

                                                              September 12, 2008

                    ONE HUNDRED TWENTY FIVE THOUSAND DOLLARS
                                    15% NOTE

      FOR VALUE RECEIVED, U.S. HELICOPTER CORPORATION, a Delaware corporation
(the "Company") hereby promises to pay to the order of PORTFOLIO LENDERS II, LLC
(the "Holder"), or its registered assigns, the principal sum of ONE HUNDRED
TWENTY FIVE THOUSAND DOLLARS AND 00/100 ($125,000.00), and to pay interest from
the date hereof on the outstanding principal sum at the rate of 15% per annum
based on a 365-day year, such interest to accrue from the date hereof (the
"Closing Date"). The principal and accrued but unpaid interest shall be paid in
full 30 days after the date hereof (the "Maturity Date").

      This Note is an authorized issue of a 15% Note of the Company (the "Note")
issued pursuant to a Note Purchase Agreement dated as of the date hereof between
the Company and the Holder (the "Note Purchase Agreement"). The Holder of this
Note is entitled to the benefits of the Note Purchase Agreement and to enforce
the agreements of the Company contained therein. Capitalized terms used herein
and not otherwise defined shall have the meaning ascribed thereto in the Note
Purchase Agreement. All payments shall be paid in lawful money of the United
States of America at the principal office of the Holder or at such other place
as the Holder may designate from time to time in writing to the Company.

      1. CONVERSION RIGHTS. The principal and any and all interest payable on
this Note shall be convertible, at the option of either the Holder, at any time
into shares of Company Common Stock at $0.20 per share.

      2. DEFAULT. The Company shall be in default under this Note upon the
occurrence of any of the following events ("Event of Default"):
<PAGE>

            (a) Failure to make any principal or interest payment required under
      this Note within three days of the date such payment is due;

            (b) Any material default, breach or misrepresentation under the
      terms and provisions of the Note Purchase Agreement that is not cured
      after 30 days written notice by Holder to the Company; or

            (c) An assignment for the benefit of creditors by or the filing of a
      petition under bankruptcy, insolvency or debtor's relief law, or for any
      readjustment of indebtedness, composition or extension by the Company, or
      commenced against the Company which is not discharged within sixty (60)
      days.

      3. REMEDIES UPON EVENT OF DEFAULT. Upon the occurrence of an Event of
Default:

            (a) specified in clause (c) of Section 2, then the Note shall be
      automatically accelerated and immediately due and payable at the option of
      Holder, without notice or demand;

            (b) specified in clauses (a) or (b) of Section 2, then the Holder
      may declare the Note immediately accelerated due and payable; and

            (c) the Holder shall have all of the rights and remedies, at law and
      in equity, by statute or otherwise, and no remedy herein conferred upon
      the Holder is intended to be exclusive of any other remedy and each remedy
      shall be cumulative and shall be in addition to every other remedy given
      hereunder or now or hereafter existing at law, in, equity, by statute or
      otherwise.

      4. CHANGES; PARTIES. This Note can only be changed by an agreement in
writing signed by the Company and the Holder. This Note shall inure to the
benefit of and be binding upon the Company and the Holder and their respective
successors and assigns.

      5. WAIVER OF PRESENTMENT. The Company hereby waives presentment, demand,
notice, protest and all other demands and notices in connection with the
delivery, acceptance, performance, default or enforcement of this Note.

      6. MAXIMUM RATE OF INTEREST. It is expressly stipulated and agreed to be
the intent of the Company and Holder at all times to comply with the applicable
law governing the maximum rate of interest payable on or in connection with all
indebtedness and transactions hereunder (or applicable United States federal law
to the extent that it permits Holder to contract for, charge, take, reserve or
receive a greater amount of interest). If the applicable law is ever judicially
interpreted so as to render usurious any amount of money or other consideration
called for hereunder, or contracted for, charged, taken, reserved or received
with respect to any loan or advance hereunder, or if acceleration of the
maturity of this Note or the indebtedness hereunder or if any prepayment by the

                                       2
<PAGE>

Company results in the Company's having paid any interest in excess of that
permitted by law, then it is the Company's and Holder's express intent that all
excess cash amounts theretofore collected by Holder be credited on the principal
balance of this Note (or if this Note has been or would thereby be paid in full,
refunded to the Company), and the provisions of this Note immediately be deemed
reformed and the amounts thereafter collectible hereunder reduced, without the
necessity of the execution of any new document, so as to comply with the
applicable law, but so as to permit the recovery of the fullest amount otherwise
called for hereunder. The right to accelerate maturity of this Note does not
include the right to accelerate any interest which has not otherwise accrued on
the date of such acceleration, and Holder does not intend to collect any
unearned interest in the event of acceleration.

      7. NO IMPLIED WAIVER. No failure or delay on the part of Holder in
exercising any right, power or privilege under this Note and no course of
dealing between the Company and Holder shall operate as a waiver thereof. No
single or partial exercise of any right, power or privilege hereunder shall
preclude any other or further exercise of any right, power or privilege Holder
would otherwise have. No notice to, or demand on, the Company in any case shall
entitle the Company to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the right of Holder to any other or
further action in any circumstances without notice or demand.

      8. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED ACCORDING TO THE LAWS
OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF
RELATING TO CONFLICTS OF LAWS.

           [The remainder of this page is intentionally left blank.]

                                       3
<PAGE>

      IN WITNESS WHEREOF, the Company has executed this Note as of the day and
year set forth above.

                                    U.S. HELICOPTER CORPORATION

                                    By:
                                       ------------------------
                                       George J. Mehm, Jr.
                                       Chief Financial Officer

                                       4

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