Document:

PURCHASE AGREEMENT

     THIS PURCHASE AGREEMENT (the "Agreement") is made and entered into as of
the 10th day of March, 2006, by and between the following:

     Steven Reuther, an individual and Samuel Mauro, an individual,
(collectively hereinafter, "Buyers") and

     M POWER ENTERTAINMENT INC. a Delaware corporation (hereinafter "MPWE").

                       W I T N E S S E T H

WHEREAS the parties entered into a Purchase Agreement on November 21, 2005;
and

WHEREAS on November 21, 2005, pursuant to that agreement, MPWE acquired from
Buyers all the outstanding stock of Tropical Printing L.L.C. and MPWE issued
to Buyers shares of MPWE stock valued by the parties at $450,000; and

WHEREAS 9,999,999 shares of restricted common stock were issued to Buyers at
such time as the MPWE stock; and

WHEREAS, in lieu thereof, subject to the terms and conditions of this
Agreement , MPWE and Buyers desire for MPWE to purchase from Buyers, and for
Buyers to sell to MPWE, the MPWE restricted common stock (9,999,999,) the
"MPWE Stock") Buyers received for their sale of all of their stock of TROPICAL
PRINTING L.L.C., to M Power Entertainment Inc. ("MPWE") in November, 2005
under the Purchase Agreement. In payment for their purchase, MPWE desires to
pay to Buyers all of the Tropical Printing LLC stock ("Tropical Printing LLC
Stock") it received, as a successor corporation to MPWE, for the November,
2005 purchase by MPWE of Tropical Printing L.L.C. from Buyers and Buyers
desire to receive same as payment; and

WHEREAS, the Board of Directors of MPWE deems it desirable and in the best
interests of MPWE and its stockholders that MPWE sell the Tropical Printing
LLC Stock in consideration of payment by Buyers of the MPWE Stock and said
contract right; and

WHEREAS, Buyers deem it desirable and in the best interests of Buyers that
Buyers sell the MPWE Stock and said contract right to MPWE in exchange for the
Tropical Printing LLC Stock; and

WHEREAS, MPWE and Buyers desire to provide for certain undertakings,
conditions, representations, warranties, and covenants in connection with the
transactions contemplated by their Agreement; and

WHEREAS, Buyers and the Board of Directors of MPWE have approved and adopted
their Agreement, subject to the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements herein contained, the parties hereto do hereby agree as follows:

                            SECTION 1

                           DEFINITIONS

     1.1    "Agreement", "MPWE", "MPWE Stock", "Tropical Printing LLC Stock",
"MPWE", "Buyers", respectively, shall have the meanings defined in the
foregoing preamble and recitals to their Agreement.

      1.2    "Closing Date" shall mean 6:00 p.m., local time, March 10, 2006,
at Houston, Texas, the date on which the parties hereto shall close the
transactions contemplated herein; provided that the parties can change the
Closing Date and place of Closing to such other time and place as the parties
shall mutually agree, in writing.  As of the Closing Date, all Exhibits to
their Agreement shall be complete and attached to their Agreement.

      1.3    "Confidential information" shall have the meaning defined in
Section 11.1 hereof.

                            SECTION 2

  AGREEMENT FOR PURCHASE AND SALE OF M POWER ENTERTAINMENT STOCK

      2.1    Substantive Terms of the Purchase and Sale of M POWER
ENTERTAINMENT Stock and the Related Contract Right.

      Buyers shall sell and deliver to MPWE the MPWE Stock in a form enabling
MPWE, then and there, to become the record and beneficial owner of said common
stock, consisting of nine million, nine hundred ninety-nine thousand, nine
hundred ninety-nine (9,999,999) shares of MPWE restricted common Stock.

          2.2    Consideration Paid by MPWE.

          (a)    MPWE shall deliver to Buyers the Tropical Printing LLC
Membership Certificates in the names of Samuel Mauro and Steven Reuther.

      2.3    Delivery of Stock to MPWE

             Upon receipt of said Tropical Printing Certificates, Tropical
will then forward the MPWE Stock certificates within 7 days to Gary Kimmons at
his address below in paragraph 14.1.

                            SECTION 3

              REPRESENTATIONS AND WARRANTIES OF MPWE

      MPWE, in order to induce the Buyers to execute their Agreement and to
consummate the transactions contemplated herein, represents and warrants to
Buyers, as follows:

      3.1    Organization and Qualification.  MPWE is a corporation duly
organized, validly existing, and in good standing under the laws of Delaware,
with all requisite power and authority to own its property and to carry on its
business as it is now being conducted.  MPWE is duly qualified as a foreign
corporation and in good standing in each jurisdiction where the ownership,
lease, or operation of property or the conduct of business requires such
qualification, except where the failure to be in good standing or so qualified
would not have a material, adverse effect on the financial condition or
business of MPWE.

      3.2    Authorization and Validity.  MPWE has the requisite power and is
duly authorized to execute and deliver and to carry out the terms of their
Agreement.  The board of directors and stockholders of MPWE have taken all
action required by law, its Articles of Incorporation and Bylaws, both as
amended, or otherwise to authorize the execution and delivery of their
Agreement and the consummation of the transactions contemplated hereby,
subject to the satisfaction or waiver of the conditions precedent set forth in
Section 8 of their Agreement.  Assuming their Agreement has been approved by
all action necessary on the part of Buyers, their Agreement is a valid and
binding agreement of MPWE. Approval by the shareholders of MPWE is not
required in order for it to consummate the transaction provided for in their
Agreement.

     3.3    No Defaults.  MPWE is not in default under or in violation of any
provision of its Articles of Incorporation or Bylaws, both as amended.  MPWE
is not in default under or in violation of any material provision of any
indenture, mortgage, deed of trust, lease, loan agreement, or other agreement
or instrument to which it is a party or by which it is bound or to which any
of its is subject, if such default would have a material, adverse effect on
the financial condition or business of MPWE. MPWE is not in violation of any
statute, law, ordinance, order, judgment, rule, regulation, permit,
franctheire, or other approval or authorization of any court or governmental
agency or body having jurisdiction over it or any of its properties which, if
enforced, would have a material, adverse effect on the financial condition or
business of MPWE.  Neither the execution and delivery of their Agreement, nor
the consummation of the transactions contemplated herein, will conflict with
or result in a breach of or constitute a default under any of the foregoing or
result in the creation of any lien, mortgage, pledge, charge, or encumbrance
upon any asset of MPWE and no consents or waivers thereunder are required to
be obtained in connection therewith in order to consummate the transactions
contemplated by their Agreement.

      3.4    Documents.  The copies of all agreements and other instruments
that have been delivered by MPWE to Buyers are true, correct, and complete
copies of such agreements and instruments and include all amendments thereto.

      3.5    Disclosure.  The representations and warranties made by MPWE
herein and in any schedule, statement, certificate, or document furnished or
to be furnished by MPWE to Buyers pursuant to the provisions hereof or in
connection with the transactions contemplated hereby, taken as a whole, do not
and will not as of their respective dates contain any untrue statements of a
material fact, or omit to state a material fact necessary to make the
statements made not misleading.

                            SECTION 4

             REPRESENTATIONS AND WARRANTIES OF BUYERS

      Buyers, in order to induce MPWE to execute their Agreement and to
consummate the transactions contemplated herein, represents and warrants to
MPWE as follows:

      4.1    Authorization and Validity.  Buyers have the requisite power and
are duly authorized to execute and deliver and to carry out the terms of their
Agreement.  Assuming their Agreement has been approved by all action necessary
on the part of MPWE, their Agreement is a valid and binding agreement of
Buyers.

      4.2    Disclosure.  The representations and warranties made by Buyers
herein and in any schedule, statement, certificate, or document furnished or
to be furnished by Buyers to MPWE pursuant to the provisions hereof or in
connection with the transactions contemplated hereby taken as a whole do not
and will not as of their respective dates contain any untrue statements of a
material fact, or omit to state a material fact necessary to make the
statements made not misleading.

                            SECTION 5

                          PRESS RELEASE

      5.1    Press Release.  MPWE and Buyers shall agree with each other as to
the form and substance of any press releases and the filing of any documents
with any federal or state agency related to their Agreement and the
transactions contemplated hereby and shall consult with each other as to the
form and substance of other public disclosures related thereto; provided,
however, that nothing contained herein shall prohibit either party from making
any disclosure that its counsel deems necessary. In that case, whichever party
deems necessary a press release or filing as mentioned above, agrees to first
present it to the other party for its review by counsel. The other party will
have 3 business days to approve the release or filing, or make its' objections
noted to the other.

                            SECTION 6

                            BROKERAGE

      6.1    Brokers and Finders.  Neither MPWE nor Buyers, or any of their
respective officers, directors, employees, or agents, has employed any broker,
finder, or financial advisor or incurred any liability for any fee or
commissions in connection with initiating the transactions contemplated
herein.  Each party hereto agrees to indemnify and hold the other party
harmless against or in respect of any other commissions, finder's fees, or
brokerage fees incurred or alleged to have been incurred with respect to
initiating the transactions contemplated herein as a result of any action of
the indemnifying party.

                            SECTION 7

               CLOSING AGREEMENTS AND POST-CLOSING

      7.1    Closing Agreements.  On the Closing Date, the following
activities shall occur, the following agreements shall be executed and
delivered, and the respective parties thereto shall have performed all acts
that are required by the terms of such activities and agreements to have been
performed simultaneously with the execution and delivery thereof as of the
Closing Date:

            (a)    Buyers shall have executed and delivered documents to MPWE
sufficient then and there to transfer record and beneficial ownership to MPWE
of the MPWE Stock, consisting of an aggregate of nine million, nine hundred
ninety-nine thousand, nine hundred ninety-nine (9,999,999) shares of
Restricted Common Stock of MPWE. Such shares shall be not pledged, and totally
unencumbered.

          (b)    MPWE shall have delivered to Buyers the Tropical Printing
LLC Membership Certificates in the names of Samuel Mauro and Steven Reuther.

          (c)    Both parties, MPWE and Buyers agree that all monies spent
for any reason, whether in actual cash or in accrued labor expenses of
employees or contractors from either party will be bourn by the respective
parties and neither party will attempt to collect any fees or expenses
expended, including monies spent to help each other operate on a daily basis
or to prevent default actions by creditors.

                            SECTION 8

       CONDITIONS PRECEDENT TO MPWE'S OBLIGATIONS TO CLOSE

      The obligations of MPWE to consummate their Agreement are subject to
satisfaction on or prior to the Closing Date of the following conditions:

      8.1    Representations and Warranties.  The representations and
warranties of Buyers contained in their Agreement shall be true and correct in
all material respects on and as of the Closing Date, and Buyers shall have
performed in all material respects all of their obligations hereunder
theretofore to be performed.

      8.2    Other.  The joint conditions precedent in Section 10 hereof shall
have been satisfied and all documents required for Closing shall be acceptable
to Counsel for MPWE.

                            SECTION 9

       CONDITIONS PRECEDENT TO BUYERS' OBLIGATIONS TO CLOSE

      The obligation of Buyers to consummate their Agreement is subject to the
satisfaction on or prior to the Closing Date of the following conditions:

      9.1    Representations and Warranties.  The representations and
warranties of MPWE contained in their Agreement shall be true and correct in
all material respects on and as of the Closing Date, and MPWE shall have
performed in all material respects all of its obligations hereunder
theretofore to be performed.

      9.2    Other.  The joint conditions precedent in Section 10 hereof shall
have been satisfied.

                            SECTION 10

                    JOINT CONDITIONS PRECEDENT

      The obligations of each MPWE and Buyers to consummate their agreement
shall be subject to satisfaction by the other party ("Other Party") or waiver
in writing by the party entitled to have the Other Party perform each and all
of the following conditions precedent at or prior to the Closing Date:"

      10.1    Other Agreements.  All of the agreements contemplated by Section
7.1 of their Agreement shall have been executed and delivered by the Other
Party, and all acts required to be performed thereunder by the Other Party as
of the Closing Date shall have been duly performed, including, without
limitation, completion of all exhibits to their Agreement.

      10.2    Absence of Litigation.  At the Closing Date, there shall be no
action, suit, or proceeding pending or threatened against Other Party hereto
by any person, governmental agency, or subdivision thereof, nor shall there be
pending or threatened any action in any court or administrative tribunal,
which would have the effect of prohibiting the consummation of the
transactions contemplated herein.

                            SECTION 11

                         CONFIDENTIALITY

      11.1    Buyers acknowledge that they has acquired confidential
information and materials from MPWE and MPWE about the technology, business,
products, strategies, customers, clients and suppliers of MPWE and that all
such information, materials and knowledge acquired, are and will be trade
secrets and confidential and proprietary information of MPWE (collectively,
such acquired information, materials, and knowledge are the "Confidential
Information").  Buyer's covenants to hold such Confidential Information in
strict confidence, not to disclose it to others or use it in any way,
commercially or otherwise, except in connection with the transactions
contemplated by their Agreement and not to allow any unauthorized person
access to such Confidential Information.

      11.2    The Confidential Information disclosed by MPWE to Buyers shall
remain the property of the disclosing party.  The Confidential Information
disclosed by the Buyers to MPWE shall remain the property of the Buyer.

      11.3    Buyers shall maintain in secrecy all Confidential Information
disclosed to him by MPWE using not less than reasonable care.  Buyers shall
not use or disclose in any manner to any third party any Confidential
Information without the express written consent of MPWE unless or until the
Confidential Information is:

            (a)    publicly available or otherwise in the public domain; or

            (b)    rightfully obtained by any third party without restriction;
or

            (c)    disclosed by MPWE without restriction pursuant to judicial
action, or government regulations or other requirements.

      11.4    The obligations of Buyers under Sections 11.1, 11.2, and 11.3 of
their Agreement shall expire one year from the date hereof as to Confidential
Information consisting of commercial and financial information and two years
from the date hereof as to Confidential Information consisting of technical
information.  For their purpose, technical information shall include without
limitation all developments, inventions, innovations, designs, discoveries,
trade secrets and know-how, whether or not patentable or copyrightable.

      11.5  The same confidentiality requirements on the Buyers will similarly
be required by MPWE in regards to information it has obtained about Tropical
Printing LLC and the subsequent potential companies to be attempted to be
acquired, provided to MPWE by Buyers (Arcade Lithographing and Spotlight
Graphics).

                            SECTION 12

                      TERMINATION AND WAIVER

      12.1    Termination.  This Agreement may be terminated and abandoned on
the Closing Date by:

            (a)    the mutual consent in writing of the parties hereto;

            (b)    MPWE, if the conditions precedent in Sections 8 and 10 of
their Agreement have not been satisfied or waived by the Closing Date; and

            (d)    Buyers, if the conditions precedent in Sections 9 and 10 of
their Agreement have not been satisfied or waived by the Closing Date.

If their Agreement is terminated pursuant to Section 12.1, the parties hereto
shall not have any further obligations under their Agreement, and each party
shall bear all costs and expenses incurred by it.

                            SECTION 13

           NATURE AND SURVIVAL OF REPRESENTATIONS, ETC.

      13.1    All statements contained in any certificate or other instrument
delivered by or on behalf of MPWE or Buyers pursuant to their Agreement or in
connection with the transactions contemplated hereby shall be deemed
representations and warranties by such party.  All representations and
warranties and agreements made by MPWE or Buyers in their Agreement or
pursuant hereto shall survive the Closing Date hereunder until the expiration
of the 12th month following the Closing Date.

                            SECTION 14

                          MISCELLANEOUS

      14.1    Notices.  Any notices or other communications required or
permitted hereunder shall be sufficiently given if written and delivered in
person or sent by registered mail, postage prepaid, addressed as follows:

               to Buyers:        Tropical Printing LLC
                                 2147 D Porter Lake Drive
                                 Sarasota, FL 34240

               to MPWE:          M POWER ENTERTAINMENT INC
                                 Attn: Gary Kimmons
                                 2602 Yorktown Place
                                 Houston, TX 77056

or such other address as shall be furnished in writing by the appropriate
person, and any such notice or communication shall be deemed to have been
given as of the date so mailed.

      14.2    Time of the Essence.  Time shall be of the essence of their
Agreement.

      14.3    Costs.  Each party will bear the costs and expenses incurred by
it in connection with their Agreement and the transactions contemplated
hereby.

      14.4    Cancellation of Agreement.  In the event that their Agreement is
canceled by mutual agreement of the parties or by failures of any of the
conditions precedent set forth in Paragraphs 8, 9, and 10, neither Buyers nor
MPWE shall be entitled to any damages, fees, costs, or other consideration.

      14.5    Entire Agreement and Amendment.  This Agreement and documents
delivered at the Closing Date hereunder contain the entire agreement between
the parties hereto with respect to the transactions contemplated by this
Agreement and supersedes all other agreements, written or oral, with respect
thereto.  This Agreement may be amended or modified in whole or in part, and
any rights hereunder may be waived, only by an agreement in writing, duly and
validly executed in the same manner as this Agreement or by the party against
whom the waiver would be asserted.  The waiver of any right hereunder shall be
effective only with respect to the matter specifically waived and shall not
act as a continuing waiver unless it so states by its terms.

      14.6    Counterparts.  This Agreement may be executed in one or more
counterparts each of which shall be deemed to constitute an original and shall
become effective when one or more counterparts have been signed by each party
hereto and delivered to the other party.

      14.7    Governing Law.  This Agreement shall be governed by, and
construed and interpreted in accordance with, the laws of the State of Texas.

      14.8    Attorneys' Fees and Costs.  Each Party will bear the cost of its
own counsel for all expenses they see fit to spend for any reason.  There is
no right to collect attorneys' fees or costs from each other for any reason.

      14.9    Successors and Assigns.  This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective heirs,
executors, personal representatives, successors, and assigns, as the case may
be.

      14.10    Access to Counsel.  Each party hereto acknowledges that each
has had access to legal counsel of her or its own choice and has obtained such
advice therefrom, if any, as such party has deemed necessary and sufficient
prior to the execution hereof.  Each party hereto acknowledges that the
drafting of this Agreement has been a joint effort and any ambiguities or
interpretative issues that may arise from and after the execution hereof shall
not be decided in favor or, or against, any party hereto because the language
reflecting any such ambiguities or issues may have been drafted by any
specific party or her or its counsel.

      14.11    Captions.  The captions appearing in this Agreement are
inserted for convenience of reference only and shall not affect the
interpretation of this Agreement.

      14.12    Indemnification.  Each party hereto agrees to indemnify and
hold the other party harmless against or in respect of any other actions
incurred or alleged to have been incurred with respect to initiating the
transactions contemplated herein as a result of any action of the indemnifying
party.

      14.13    Access to Information.   To the extent actually required for
MPWE's current and future reporting requirements to the SEC, Buyers shall
cause MPWE, its counsel, accountants and auditors ("Representatives") to have
access, during normal business hours, to all of the books and records of
Tropical Printing LLC relating to the period of November 2005 through Closing
Date.  Buyers will cause to be furnished to MPWE and its Representatives upon
proof of necessity therefore from MWPE or its Representatives, all such
information concerning the affairs of Tropical Printing LLC as MPWE or such
Representatives may reasonably request to comply with SEC reporting
requirements.  This provision shall only be effective for one year from the
Closing Date of this Purchase Agreement.

                     [SIGNATURE PAGE FOLLOWS]
     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

M POWER ENTERTAINMENT, INC.

    /s/ Gary F. Kimmons
By: __________________________________
    Gary F. Kimmons
    President & CEO

BUYERS:

/s/ Steven Reuther
______________________________________
Steven Reuther

/s/ Samuel Mauro
______________________________________
Samuel MauroTHE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").  THE SECURITIES MAY NOT BE
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM,
SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE
TRANSACTIONS THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD
PURSUANT TO RULE 144 OR REGULATION S UNDER SAID ACT.

                CALLABLE SECURED CONVERTIBLE NOTE

New York, New York
April 18, 2006                                                         $77,700

      FOR VALUE RECEIVED, M POWER ENTERTAINMENT, INC., a Delaware Corporation
(hereinafter called the "Borrower"), hereby promises to pay to the order of
AJW PARTNERS, LLC or registered assigns (the "Holder") the sum of $77,700, on
April 18, 2009 (the "Maturity Date"), and to pay interest on the unpaid
principal balance hereof at the rate of six percent (6%) (the "Interest Rate")
per annum from April 18, 2006 (the "Issue Date") until the same becomes due
and payable, whether at maturity or upon acceleration or by prepayment or
otherwise.  Any amount of principal or interest on this Note which is not paid
when due shall bear interest at the rate of fifteen percent (15%) per annum
from the due date thereof until the same is paid ("Default Interest").
Interest shall commence accruing on the Issue Date, shall be computed on the
basis of a 365-day year and the actual number of days elapsed and shall be
payable quarterly provided that no interest shall be due and payable for any
month in which the Trading Price (as such term is defined below) is greater
than $.017125 for each Trading Day (as such term is defined below) of the
month. All payments due hereunder (to the extent not converted into common
stock, $.001 par value per share (the "Common Stock") in accordance with the
terms hereof) shall be made in lawful money of the United States of America.
All payments shall be made at such address as the Holder shall hereafter give
to the Borrower by written notice made 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, 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.  As used
in this Note, the term "business day" shall mean any day other than a
Saturday, Sunday or a day on which commercial banks in the city of New York,
New York are authorized or required by law or executive order to remain
closed.  Each capitalized term used herein, and not otherwise defined, shall
have the meaning ascribed thereto in that certain Securities Purchase
Agreement, dated April 18, 2006, pursuant to which this Note was originally
issued (the "Purchase Agreement").

      This Note is free from all taxes, liens, claims and encumbrances with
respect to the issue thereof and shall not be subject to preemptive rights or
other similar rights of shareholders of the Borrower and will not impose
personal liability upon the holder thereof.  The obligations of the Borrower
under this Note shall be secured by that certain Security Agreement and
Intellectual Property Security Agreement, each dated April 18, 2006 by and
between the Borrower and the Holder.

      The following terms shall apply to this Note:

                   ARTICLE I. CONVERSION RIGHTS

      1.1    Conversion Right.  The Holder shall have the right from time to
time, and at any time on or prior to the earlier of (i) the Maturity Date and
(ii) the date of payment of the Default Amount (as defined in Article III)
pursuant to Section 1.6(a) or Article III, the Optional Prepayment Amount (as
defined in Section 5.1 or any payments pursuant to Section 1.7, each in
respect of the remaining outstanding principal amount of this Note to convert
all or any part of the outstanding and unpaid principal amount of this Note
into fully paid and non-assessable shares of Common Stock, as such Common
Stock exists on the Issue Date, or any shares of capital stock or other
securities of the Borrower into which such Common Stock shall hereafter be
changed or reclassified at the conversion price  (the "Conversion Price")
determined as provided herein (a "Conversion"); provided, however, that in no
event shall the Holder be entitled to convert any portion of this Note in
excess of that portion of this Note upon conversion of which the sum of (1)
the number of shares of Common Stock beneficially owned by the Holder and its
affiliates (other than shares of Common Stock which may be deemed beneficially
owned through the ownership of the unconverted portion of the Notes or the
unexercised or unconverted portion of any other security of the Borrower
(including, without limitation, the warrants issued by the Borrower pursuant
to the Purchase Agreement) subject to a limitation on conversion or exercise
analogous to the limitations contained herein) and (2) the number of shares of
Common Stock issuable upon the conversion of the portion of this Note with
respect to which the determination of this proviso is being made, would result
in beneficial ownership by the Holder and its affiliates of more than 4.99% of
the outstanding shares of Common Stock and provided further that the Holder
shall not be entitled to convert any portion of this Note during any month
immediately succeeding a Determination Date on which the Borrower exercises
its prepayment option pursuant to Section 5.2 of this Note.  For purposes of
the proviso to the immediately preceding sentence, beneficial ownership shall
be determined in accordance with Section 13(d) of the Securities Exchange Act
of 1934, as amended, and Regulations 13D-G thereunder, except as otherwise
provided in clause (1) of such proviso.  The number of shares of Common Stock
to be issued upon each conversion of this Note shall be determined by dividing
the Conversion Amount (as defined below) by the applicable Conversion Price
then in effect on the date specified in the notice of conversion, in the form
attached hereto as Exhibit A (the "Notice of Conversion"), delivered to the
Borrower by the Holder in accordance with Section 1.4 below; provided that the
Notice of Conversion is submitted by facsimile (or by other means resulting
in, or reasonably expected to result in, notice) to the Borrower before 6:00
p.m., New York, New York time on such conversion date (the "Conversion Date").
The term "Conversion Amount" means, with respect to any conversion of this
Note, the sum of (1) the principal amount of this Note to be converted in such
conversion plus (2) accrued and unpaid interest, if any, on such principal
amount at the interest rates provided in this Note to the Conversion Date,
provided, however, that the Company shall have the right to pay any or all
interest in cash plus (3) Default Interest, if any, on the amounts referred to
in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder's
option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g)
hereof or pursuant to Section 2(c) of that certain Registration Rights
Agreement, dated as of April 18, 2006, executed in connection with the initial
issuance of this Note and the other Notes issued on the Issue Date (the
"Registration Rights Agreement").  The term "Determination Date" means the
last business day of each month after the Issue Date.

      1.2   Conversion Price.

            (a)    Calculation of Conversion Price.  The Conversion Price
shall be the Variable Conversion Price (as defined herein) (subject, in each
case, to equitable adjustments for stock splits, stock dividends or rights
offerings by the Borrower relating to the Borrower's securities or the
securities of any subsidiary of the Borrower, combinations, recapitalization,
reclassifications, extraordinary distributions and similar events).  The
"Variable Conversion Price" shall mean the Applicable Percentage (as defined
herein) multiplied by the Market Price (as defined herein).  "Market Price"
means the average of the lowest three (3) Trading Prices (as defined below)
for the Common Stock during the twenty (20) Trading Day period ending one
Trading Day prior to the date the Conversion Notice is sent by the Holder to
the Borrower via facsimile (the "Conversion Date").  "Trading Price" means,
for any security as of any date, the intraday trading price on the
Over-the-Counter Bulletin Board (the "OTCBB") as reported by a reliable
reporting service ("Reporting Service") mutually acceptable to Borrower and
Holder and hereafter designated by Holders of a majority in interest of the
Notes and the Borrower or, if the OTCBB is not the principal trading market
for such security, the intraday trading price of such security on the
principal securities exchange or trading market where such security is listed
or traded or, if no intraday trading price of such security is available in
any of the foregoing manners, the average of the intraday trading prices of
any market makers for such security that are listed in the "pink sheets" by
the National Quotation Bureau, Inc.  If the Trading Price cannot be calculated
for such security on such date in the manner provided above, the Trading Price
shall be the fair market value as mutually determined by the Borrower and the
holders of a majority in interest of the Notes being converted for which the
calculation of the Trading Price is required in order to determine the
Conversion Price of such Notes.  "Trading Day" shall mean any day on which the
Common Stock is traded for any period on the OTCBB, or on the principal
securities exchange or other securities market on which the Common Stock is
then being traded.  "Applicable Percentage" shall mean 50%; provided, however,
that the Applicable Percentage shall be increased to (i) 55% in the event that
the Registration Statement (as defined in the Registration Rights Agreement)
is filed on or before the Filing Date (as defined in the in the Registration
Rights Agreement) and (ii) 60% in the event that the Registration Statement
(as defined in the Registration Rights Agreement) becomes effective on or
before the Effectiveness Deadline (as defined in the Registration Rights
Agreement).

            (b)    Conversion Price During Major Announcements.
Notwithstanding anything contained in Section 1.2(a) to the contrary, in the
event the Borrower (i) makes a public announcement that it intends to
consolidate or merge with any other corporation (other than a merger in which
the Borrower is the surviving or continuing corporation and its capital stock
is unchanged) or sell or transfer all or substantially all of the assets of
the Borrower or (ii) any person, group or entity (including the Borrower)
publicly announces a tender offer to purchase 50% or more of the Borrower's
Common Stock (or any other takeover scheme) (the date of the announcement
referred to in clause (i) or (ii) is hereinafter referred to as the
"Announcement Date"), then the Conversion Price shall, effective upon the
Announcement Date and continuing through the Adjusted Conversion Price
Termination Date (as defined below), be equal to the lower of (x) the
Conversion Price which would have been applicable for a Conversion occurring
on the Announcement Date and (y) the Conversion Price that would otherwise be
in effect. From and after the Adjusted Conversion Price Termination Date, the
Conversion Price shall be determined as set forth in this Section 1.2(a).  For
purposes hereof,  "Adjusted Conversion Price Termination Date" shall mean,
with respect to any proposed transaction or tender offer (or takeover scheme)
for which a public announcement as contemplated by this Section 1.2(b) has
been made, the date upon which the Borrower (in the case of clause (i) above)
or the person, group or entity (in the case of clause (ii) above) consummates
or publicly announces the termination or abandonment of the proposed
transaction or tender offer (or takeover scheme) which caused this Section
1.2(b) to become operative.

      1.3    Authorized Shares.  The Borrower covenants that upon the increase
in the number of authorized shares of the Company's Common Stock to
500,000,000 shares within forty-five (45) days from the date hereof and during
the period the conversion right exists thereafter,, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares,
free from preemptive rights, to provide for the issuance of Common Stock upon
the full conversion of this Note and the other Notes issued pursuant to the
Purchase Agreement.  The Borrower is required at all times to have authorized
and reserved two times the number of shares that is actually issuable upon
full conversion of the Notes (based on the Conversion Price of the Notes or
the Exercise Price of the Warrants in effect from time to time) (the "Reserved
Amount").  The Reserved Amount shall be increased from time to time in
accordance with the Borrower's obligations pursuant to Section 4(h) of the
Purchase Agreement.  The Borrower represents that upon issuance, such shares
will be duly and validly issued, fully paid and non-assessable.  In addition,
if the Borrower shall issue any securities or make any change to its capital
structure which would change the number of shares of Common Stock into which
the Notes shall be convertible at the then current Conversion Price, the
Borrower shall at the same time make proper provision so that thereafter there
shall be a sufficient number of shares of Common Stock authorized and
reserved, free from preemptive rights, for conversion of the outstanding
Notes.  The Borrower (i) acknowledges that it has irrevocably instructed its
transfer agent to issue certificates for the Common Stock issuable upon
conversion of this Note, and (ii) agrees that its issuance of this Note shall
constitute full authority to its officers and agents who are charged with the
duty of executing stock certificates to execute and issue the necessary
certificates for shares of Common Stock in accordance with the terms and
conditions of this Note.

      If, at any time a Holder of this Note submits a Notice of Conversion,
and the Borrower does not have sufficient authorized but unissued shares of
Common Stock available to effect such conversion in accordance with the
provisions of this Article I (a "Conversion Default"), subject to Section 4.8,
the Borrower shall issue to the Holder all of the shares of Common Stock which
are then available to effect such conversion.  The portion of this Note which
the Holder included in its Conversion Notice and which exceeds the amount
which is then convertible into available shares of Common Stock (the "Excess
Amount") shall, notwithstanding anything to the contrary contained herein, not
be convertible into Common Stock in accordance with the terms hereof until
(and at the Holder's option at any time after) the date additional shares of
Common Stock are authorized by the Borrower to permit such conversion, at
which time the Conversion Price in respect thereof shall be the lesser of (i)
the Conversion Price on the Conversion Default Date (as defined below) and
(ii) the Conversion Price on the Conversion Date thereafter elected by the
Holder in respect thereof.  In addition, the Borrower shall pay to the Holder
payments ("Conversion Default Payments") for a Conversion Default in the
amount of (x) the sum of (1) the then outstanding principal amount of this
Note plus (2) accrued and unpaid interest on the unpaid principal amount of
this Note through the Authorization Date (as defined below) plus (3) Default
Interest, if any, on the amounts referred to in clauses (1) and/or (2),
multiplied by (y) .24, multiplied by (z) (N/365), where N = the number of days
from the day the holder submits a Notice of Conversion giving rise to a
Conversion Default (the "Conversion Default Date") to the date (the
"Authorization Date") that the Borrower authorizes a sufficient number of
shares of Common Stock to effect conversion of the full outstanding principal
balance of this Note.  The Borrower shall use its best efforts to authorize a
sufficient number of shares of Common Stock as soon as practicable following
the earlier of (i) such time that the Holder notifies the Borrower or that the
Borrower otherwise becomes aware that there are or likely will be insufficient
authorized and unissued shares to allow full conversion thereof and (ii) a
Conversion Default.  The Borrower shall send notice to the Holder of the
authorization of additional shares of Common Stock, the Authorization Date and
the amount of Holder's accrued Conversion Default Payments.  The accrued
Conversion Default Payments for each calendar month shall be paid in cash or
shall be convertible into Common Stock (at such time as there are sufficient
authorized shares of Common Stock) at the applicable Conversion Price, at the
Borrower's option, as follows:

            (a)    In the event Holder elects to take such payment in cash,
cash payment shall be made to Holder by the fifth (5th) day of the month
following the month in which it has accrued; and

            (b)    In the event Holder elects to take such payment in Common
Stock, the Holder may convert such payment amount into Common Stock at the
Conversion Price (as in effect at the time of conversion) at any time after
the fifth day of the month following the month in which it has accrued in
accordance with the terms of this Article I (so long as there is then a
sufficient number of authorized shares of Common Stock).

      The Holder's election shall be made in writing to the Borrower at any
time prior to 6:00 p.m., New York, New York time, on the third day of the
month following the month in which Conversion Default payments have accrued.
If no election is made, the Holder shall be deemed to have elected to receive
cash.  Nothing herein shall limit the Holder's right to pursue actual damages
(to the extent in excess of the Conversion Default Payments) for the
Borrower's failure to maintain a sufficient number of authorized shares of
Common Stock, and each holder shall have the right to pursue all remedies
available at law or in equity (including degree of specific performance and/or
injunctive relief).

      1.4    Method of Conversion.

            (a)    Mechanics of Conversion.  Subject to Section 1.1, this Note
may be converted by the Holder in whole or in part at any time from time to
time after the Issue Date, by (A) submitting to the Borrower a Notice of
Conversion (by facsimile or other reasonable means of communication dispatched
on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B)
subject to Section 1.4(b), surrendering this Note at the principal office of
the Borrower.

            (b)    Surrender of Note Upon Conversion.  Notwithstanding
anything to the contrary set forth herein, upon conversion of this Note in
accordance with the terms hereof, the Holder shall not be required to
physically surrender this Note to the Borrower unless the entire unpaid
principal amount of this Note is so converted.  The Holder and the Borrower
shall maintain records showing the principal amount so converted and the dates
of such conversions or shall use such other method, reasonably satisfactory to
the Holder and the Borrower, so as not to require physical surrender of this
Note upon each such conversion.  In the event of any dispute or discrepancy,
such records of the Borrower shall be controlling and determinative in the
absence of manifest error.  Notwithstanding the foregoing, if any portion of
this Note is converted as aforesaid, the Holder may not transfer this Note
unless the Holder first physically surrenders this Note to the Borrower,
whereupon the Borrower will forthwith issue and deliver upon the order of the
Holder a new Note of like tenor, registered as the Holder (upon payment by the
Holder of any applicable transfer taxes) may request, representing in the
aggregate the remaining unpaid principal amount of this Note.  The Holder and
any assignee, by acceptance of this Note, acknowledge and agree that, by
reason of the provisions of this paragraph, following conversion of a portion
of this Note, the unpaid and unconverted principal amount of this Note
represented by this Note may be less than the amount stated on the face
hereof.

            (c)    Payment of Taxes.  The Borrower shall not be required to
pay any tax which may be payable in respect of any transfer involved in the
issue and delivery of shares of Common Stock or other securities or property
on conversion of this Note in a name other than that of the Holder (or in
street name), and the Borrower shall not be required to issue or deliver any
such shares or other securities or property unless and until the person or
persons (other than the Holder or the custodian in whose street name such
shares are to be held for the Holder's account) requesting the issuance
thereof shall have paid to the Borrower the amount of any such tax or shall
have established to the satisfaction of the Borrower that such tax has been
paid.

            (d)    Delivery of Common Stock Upon Conversion.  Upon receipt by
the Borrower from the Holder of a facsimile transmission (or other reasonable
means of communication) of a Notice of Conversion meeting the requirements for
conversion as provided in this Section 1.4, the Borrower shall issue and
deliver or cause to be issued and delivered to or upon the order of the Holder
certificates for the Common Stock issuable upon such conversion within three
(3) business days after such receipt (and, solely in the case of conversion of
the entire unpaid principal amount hereof, surrender of this Note) (such third
business day being hereinafter referred to as the "Deadline") in accordance
with the terms hereof and the Purchase Agreement (including, without
limitation, in accordance with the requirements of Section 2(g) of the
Purchase Agreement that certificates for shares of Common Stock issued on or
after the effective date of the Registration Statement upon conversion of this
Note shall not bear any restrictive legend).

            (e)    Obligation of Borrower to Deliver Common Stock.  Upon
receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed
to be the holder of record of the Common Stock issuable upon such conversion,
the outstanding principal amount and the amount of accrued and unpaid interest
on this Note shall be reduced to reflect such conversion, and, unless the
Borrower defaults on its obligations under this Article I, all rights with
respect to the portion of this Note being so converted shall forthwith
terminate except the right to receive the Common Stock or other securities,
cash or other assets, as herein provided, on such conversion.  If the Holder
shall have given a Notice of Conversion as provided herein, the Borrower's
obligation to issue and deliver the certificates for Common Stock shall be
absolute and unconditional, irrespective of the absence of any action by the
Holder to enforce the same, any waiver or consent with respect to any
provision thereof, the recovery of any judgment against any person or any
action to enforce the same, any failure or delay in the enforcement of any
other obligation of the Borrower to the holder of record, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder of any obligation to the Borrower, and irrespective of
any other circumstance which might otherwise limit such obligation of the
Borrower to the Holder in connection with such conversion.  The Conversion
Date specified in the Notice of Conversion shall be the Conversion Date so
long as the Notice of Conversion is received by the Borrower before 6:00 p.m.,
New York, New York time, on such date.

            (f)    Delivery of Common Stock by Electronic Transfer.  In lieu
of delivering physical certificates representing the Common Stock issuable
upon conversion, provided the Borrower's transfer agent is participating in
the Depository Trust Company ("DTC") Fast Automated Securities Transfer
("FAST") program, upon request of the Holder and its compliance with the
provisions contained in Section 1.1 and in this Section 1.4, the Borrower
shall use its best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Holder by crediting
the account of Holder's Prime Broker with DTC through its Deposit Withdrawal
Agent Commission ("DWAC") system.

            (g)    Failure to Deliver Common Stock Prior to Deadline.  Without
in any way limiting the Holder's right to pursue other remedies, including
actual damages and/or equitable relief, the parties agree that if delivery of
the Common Stock issuable upon conversion of this Note is more than three (3)
business days after the Deadline (other than a failure due to the
circumstances described in Section 1.3 above, which failure shall be governed
by such Section) the Borrower shall pay to the Holder $1,000 per day in cash,
for each day beyond the Deadline that the Borrower fails to deliver such
Common Stock.  Such cash amount shall be paid to Holder by the fifth day of
the month following the month in which it has accrued or, at the option of the
Holder (by written notice to the Borrower by the first day of the month
following the month in which it has accrued), shall be added to the principal
amount of this Note, in which event interest shall accrue thereon in
accordance with the terms of this Note and such additional principal amount
shall be convertible into Common Stock in accordance with the terms of this
Note.

      1.5    Concerning the Shares.  The shares of Common Stock issuable upon
conversion of this Note may not be sold or transferred unless  (i) such shares
are sold pursuant to an effective registration statement under the Act or (ii)
the Borrower or its transfer agent shall have been furnished 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 the shares
to be sold or transferred may be sold or transferred pursuant to an exemption
from such registration or (iii) such shares are sold or transferred pursuant
to Rule 144 under the Act (or a successor rule) ("Rule 144") or (iv) such
shares are transferred to an "affiliate" (as defined in Rule 144) of the
Borrower who agrees to sell or otherwise transfer the shares only in
accordance with this Section 1.5 and who is an Accredited Investor (as defined
in the Purchase Agreement).  Except as otherwise provided in the Purchase
Agreement (and subject to the removal provisions set forth below), until such
time as the shares of Common Stock issuable upon conversion of this Note have
been registered under the Act as contemplated by the Registration Rights
Agreement or otherwise may be sold pursuant to Rule 144 without any
restriction as to the number of securities as of a particular date that can
then be immediately sold, each certificate for shares of Common Stock issuable
upon conversion of this Note that has not been so included in an effective
registration statement or that has not been sold pursuant to an effective
registration statement or an exemption that permits removal of the legend,
shall bear a legend substantially in the following form, as appropriate:

            "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
            BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
            THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN
            THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
            SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM,
            SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN
            COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED
            UNDER SAID ACT UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION
            S UNDER SAID ACT."

      The legend set forth above shall be removed and the Borrower shall issue
to the Holder a new certificate therefor free of any transfer legend if (i)
the Borrower or its transfer agent shall have received an opinion of counsel,
in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such Common
Stock may be made without registration under the Act and the shares are so
sold or transferred, (ii) such Holder provides the Borrower or its transfer
agent with reasonable assurances that the Common Stock issuable upon
conversion of this Note (to the extent such securities are deemed to have been
acquired on the same date) can be sold pursuant to Rule 144 or (iii) in the
case of the Common Stock issuable upon conversion of this Note, such security
is registered for sale by the Holder under an effective registration statement
filed under the Act or otherwise may be sold pursuant to Rule 144 without any
restriction as to the number of securities as of a particular date that can
then be immediately sold.  Nothing in this Note shall (i) limit the Borrower's
obligation under the Registration Rights Agreement or (ii) affect in any way
the Holder's obligations to comply with applicable prospectus delivery
requirements upon the resale of the securities referred to herein.

      1.6    Effect of Certain Events.

            (a)    Effect of Merger, Consolidation, Etc.  At the option of the
Holder, the sale, conveyance or disposition of all or substantially all of the
assets of the Borrower, the effectuation by the Borrower of a transaction or
series of related transactions in which more than 50% of the voting power of
the Borrower is disposed of, or the consolidation, merger or other business
combination of the Borrower with or into any other Person (as defined below)
or Persons when the Borrower is not the survivor shall either:  (i) be deemed
to be an Event of Default (as defined in Article III) pursuant to which the
Borrower shall be required to pay to the Holder upon the consummation of and
as a condition to such transaction an amount equal to the Default Amount (as
defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof.
"Person" shall mean any individual, corporation, limited liability company,
partnership, association, trust or other entity or organization.

            (b)    Adjustment Due to Merger, Consolidation, Etc.  If, at any
time when this Note is issued and outstanding and prior to conversion of all
of the Notes, there shall be any merger, consolidation, exchange of shares,
recapitalization, reorganization, or other similar event, as a result of which
shares of Common Stock of the Borrower shall be changed into the same or a
different number of shares of another class or classes of stock or securities
of the Borrower or another entity, or in case of any sale or conveyance of all
or substantially all of the assets of the Borrower other than in connection
with a plan of complete liquidation of the Borrower, then the Holder of this
Note shall thereafter have the right to receive upon conversion of this Note,
upon the basis and upon the terms and conditions specified herein and in lieu
of the shares of Common Stock immediately theretofore issuable upon
conversion, such stock, securities or assets which the Holder would have been
entitled to receive in such transaction had this Note been converted in full
immediately prior to such transaction (without regard to any limitations on
conversion set forth herein), and in any such case appropriate provisions
shall be made with respect to the rights and interests of the Holder of this
Note to the end that the provisions hereof (including, without limitation,
provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be applicable, as
nearly as may be practicable in relation to any securities or assets
thereafter deliverable upon the conversion hereof.  The Borrower shall not
effect any transaction described in this Section 1.6(b) unless (a) it first
gives, to the extent practicable, thirty (30) days prior written notice (but
in any event at least fifteen (15) days prior written notice) of the record
date of the special meeting of shareholders to approve, or if there is no such
record date, the consummation of, such merger, consolidation, exchange of
shares, recapitalization, reorganization or other similar event or sale of
assets (during which time the Holder shall be entitled to convert this Note)
and (b) the resulting successor or acquiring entity (if not the Borrower)
assumes by written instrument the obligations of this Section 1.6(b).  The
above provisions shall similarly apply to successive consolidations, mergers,
sales, transfers or share exchanges.

            (c)    Adjustment Due to Distribution.  If the Borrower shall
declare or make any distribution of its assets (or rights to acquire its
assets) to holders of Common Stock as a dividend, stock repurchase, by way of
return of capital or otherwise (including any dividend or distribution to the
Borrower's shareholders in cash or shares (or rights to acquire shares) of
capital stock of a subsidiary (i.e., a spin-off)) (a "Distribution"), then the
Holder of this Note shall be entitled, upon any conversion of this Note after
the date of record for determining shareholders entitled to such Distribution,
to receive the amount of such assets which would have been payable to the
Holder with respect to the shares of Common Stock issuable upon such
conversion had such Holder been the holder of such shares of Common Stock on
the record date for the determination of shareholders entitled to such
Distribution.

            (d)    Adjustment Due to Dilutive Issuance.  If, at any time when
any Notes are issued and outstanding, the Borrower issues or sells, or in
accordance with this Section 1.6(d) hereof is deemed to have issued or sold,
any shares of Common Stock for no consideration or for a consideration per
share (before deduction of reasonable expenses or commissions or underwriting
discounts or allowances in connection therewith) less than the Fixed
Conversion Price in effect on the date of such issuance (or deemed issuance)
of such shares of Common Stock (a "Dilutive Issuance"), then immediately upon
the Dilutive Issuance, the Variable Conversion Price will be reduced to the
amount of the consideration per share received by the Borrower in such
Dilutive Issuance; provided that only one adjustment will be made for each
Dilutive Issuance.

      The Borrower shall be deemed to have issued or sold shares of Common
Stock if the Borrower in any manner issues or grants any warrants, rights or
options (not including employee stock option plans), whether or not
immediately exercisable, to subscribe for or to purchase Common Stock or other
securities convertible into or exchangeable for Common Stock ("Convertible
Securities") (such warrants, rights and options to purchase Common Stock or
Convertible Securities are hereinafter referred to as "Options") and the price
per share for which Common Stock is issuable upon the exercise of such Options
is less than the Variable Conversion Price then in effect, then the Variable
Conversion Price shall be equal to such price per share.  For purposes of the
preceding sentence, the "price per share for which Common Stock is issuable
upon the exercise of such Options" is determined by dividing (i) the total
amount, if any, received or receivable by the Borrower as consideration for
the issuance or granting of all such Options, plus the minimum aggregate
amount of additional consideration, if any, payable to the Borrower upon the
exercise of all such Options, plus, in the case of Convertible Securities
issuable upon the exercise of such Options, the minimum aggregate amount of
additional consideration payable upon the conversion or exchange thereof at
the time such Convertible Securities first become convertible or exchangeable,
by (ii) the maximum total number of shares of Common Stock issuable upon the
exercise of all such Options (assuming full conversion of Convertible
Securities, if applicable).  No further adjustment to the Conversion Price
will be made upon the actual issuance of such Common Stock upon the exercise
of such Options or upon the conversion or exchange of Convertible Securities
issuable upon exercise of such Options.

      Additionally, the Borrower shall be deemed to have issued or sold shares
of Common Stock if the Borrower in any manner issues or sells any Convertible
Securities, whether or not immediately convertible (other than where the same
are issuable upon the exercise of Options), and the price per share for which
Common Stock is issuable upon such conversion or exchange is less than the
Variable Conversion Price then in effect, then the Variable Conversion Price
shall be equal to such price per share.  For the purposes of the preceding
sentence, the "price per share for which Common Stock is issuable upon such
conversion or exchange" is determined by dividing (i) the total amount, if
any, received or receivable by the Borrower as consideration for the issuance
or sale of all such Convertible Securities, plus the minimum aggregate amount
of additional consideration, if any, payable to the Borrower upon the
conversion or exchange thereof at the time such Convertible Securities first
become convertible or exchangeable, by (ii) the maximum total number of shares
of Common Stock issuable upon the conversion or exchange of all such
Convertible Securities.  No further adjustment to the Variable Conversion
Price will be made upon the actual issuance of such Common Stock upon
conversion or exchange of such Convertible Securities.

            (e)    Purchase Rights.  If, at any time when any Notes are issued
and outstanding, the Borrower issues any convertible securities or rights to
purchase stock, warrants, securities or other property (the "Purchase Rights")
pro rata to the record holders of any class of Common Stock, then the Holder
of this Note will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which such Holder could have
acquired if such Holder had held the number of shares of Common Stock
acquirable upon complete conversion of this Note (without regard to any
limitations on conversion contained herein) immediately before the date on
which a record is taken for the grant, issuance or sale of such Purchase
Rights or, if no such record is taken, the date as of which the record holders
of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights.

            (f)    Notice of Adjustments.  Upon the occurrence of each
adjustment or readjustment of the Conversion Price as a result of the events
described in this Section 1.6, the Borrower, at its expense, shall promptly
compute such adjustment or readjustment and prepare and furnish to the Holder
of a certificate setting forth such adjustment or readjustment and showing in
detail the facts upon which such adjustment or readjustment is based.  The
Borrower shall, upon the written request at any time of the Holder, furnish to
such Holder a like certificate setting forth (i) such adjustment or
readjustment, (ii) the Conversion Price at the time in effect and (iii) the
number of shares of Common Stock and the amount, if any, of other securities
or property which at the time would be received upon conversion of the Note.

      1.7    Trading Market Limitations.  Unless permitted by the applicable
rules and regulations of the principal securities market on which the Common
Stock is then listed or traded, in no event shall the Borrower issue upon
conversion of or otherwise pursuant to this Note and the other Notes issued
pursuant to the Purchase Agreement more than the maximum number of shares of
Common Stock that the Borrower can issue pursuant to any rule of the principal
United States securities market on which the Common Stock is then traded (the
"Maximum Share Amount"), which shall be 19.99% of the total shares outstanding
on the Closing Date (as defined in the Purchase Agreement), subject to
equitable adjustment from time to time for stock splits, stock dividends,
combinations, capital reorganizations and similar events relating to the
Common Stock occurring after the date hereof.  Once the Maximum Share Amount
has been issued (the date of which is hereinafter referred to as the "Maximum
Conversion Date"), if the Borrower fails to eliminate any prohibitions under
applicable law or the rules or regulations of any stock exchange, interdealer
quotation system or other self-regulatory organization with jurisdiction over
the Borrower or any of its securities on the Borrower's ability to issue
shares of Common Stock in excess of the Maximum Share Amount (a "Trading
Market Prepayment Event"), in lieu of any further right to convert this Note,
and in full satisfaction of the Borrower's obligations under this Note, the
Borrower shall pay to the Holder, within fifteen (15) business days of the
Maximum Conversion Date (the "Trading Market Prepayment Date"), an amount
equal to 130% times the sum of (a) the then outstanding principal amount of
this Note immediately following the Maximum Conversion Date, plus (b) accrued
and unpaid interest on the unpaid principal amount of this Note to the Trading
Market Prepayment Date, plus (c) Default Interest, if any, on the amounts
referred to in clause (a) and/or (b) above, plus (d) any optional amounts that
may be added thereto at the Maximum Conversion Date by the Holder in
accordance with the terms hereof (the then outstanding principal amount of
this Note immediately following the Maximum Conversion Date, plus the amounts
referred to in clauses (b), (c) and (d) above shall collectively be referred
to as the "Remaining Convertible Amount").  With respect to each Holder of
Notes, the Maximum Share Amount shall refer to such Holder's pro rata share
thereof determined in accordance with Section 4.8 below.  In the event that
the sum of (x) the aggregate number of shares of Common Stock issued upon
conversion of this Note and the other Notes issued pursuant to the Purchase
Agreement plus (y) the aggregate number of shares of Common Stock that remain
issuable upon conversion of this Note and the other Notes issued pursuant to
the Purchase Agreement, represents at least one hundred percent (100%) of the
Maximum Share Amount (the "Triggering Event"), the Borrower will use its best
efforts to seek and obtain Shareholder Approval (or obtain such other relief
as will allow conversions hereunder in excess of the Maximum Share Amount) as
soon as practicable following the Triggering Event and before the Maximum
Conversion Date.  As used herein, "Shareholder Approval" means approval by the
shareholders of the Borrower to authorize the issuance of the full number of
shares of Common Stock which would be issuable upon full conversion of the
then outstanding Notes but for the Maximum Share Amount.

      1.8    Status as Shareholder.  Upon submission of a Notice of Conversion
by a Holder, (i) the shares covered thereby (other than the shares, if any,
which cannot be issued because their issuance would exceed such Holder's
allocated portion of the Reserved Amount or Maximum Share Amount) shall be
deemed converted into shares of Common Stock and (ii) the Holder's rights as a
Holder of such converted portion of this Note shall cease and terminate,
excepting only the right to receive certificates for such shares of Common
Stock and to any remedies provided herein or otherwise available at law or in
equity to such Holder because of a failure by the Borrower to comply with the
terms  of this Note.  Notwithstanding the foregoing, if a Holder has not
received certificates for all shares of Common Stock prior to the tenth (10th)
business day after the expiration of the Deadline with respect to a conversion
of any portion of this Note for any reason, then (unless the Holder otherwise
elects to retain its status as a holder of Common Stock by so notifying the
Borrower) the Holder shall regain the rights of a Holder of this Note with
respect to such unconverted portions of this Note and the Borrower shall, as
soon as practicable, return such unconverted Note to the Holder or, if the
Note has not been surrendered, adjust its records to reflect that such portion
of this Note has not been converted.  In all cases, the Holder shall retain
all of its rights and remedies (including, without limitation, (i) the right
to receive Conversion Default Payments pursuant to Section 1.3 to the extent
required thereby for such Conversion Default and any subsequent Conversion
Default and (ii) the right to have the Conversion Price with respect to
subsequent conversions determined in accordance with Section 1.3) for the
Borrower's failure to convert this Note.

                  ARTICLE II. CERTAIN COVENANTS

      2.1    Distributions on Capital Stock.  So long as the Borrower shall
have any obligation under this Note, the Borrower shall not without the
Holder's written consent (a) pay, declare or set apart for such payment, any
dividend or other distribution (whether in cash, property or other securities)
on shares of capital stock other than dividends on shares of Common Stock
solely in the form of additional shares of Common Stock or (b) directly or
indirectly or through any subsidiary make any other payment or distribution in
respect of its capital stock except for distributions pursuant to any
shareholders' rights plan which is approved by a majority of the Borrower's
disinterested directors.

      2.2    Restriction on Stock Repurchases.  So long as the Borrower shall
have any obligation under this Note, the Borrower shall not without the
Holder's written consent redeem, repurchase or otherwise acquire (whether for
cash or in exchange for property or other securities or otherwise) in any one
transaction or series of related transactions any shares of capital stock of
the Borrower or any warrants, rights or options to purchase or acquire any
such shares.

      2.3    Borrowings.  So long as the Borrower shall have any obligation
under this Note, the Borrower shall not, without the Holder's written consent,
create, incur, assume or suffer to exist any liability for borrowed money,
except (a) borrowings in existence or committed on the date hereof and of
which the Borrower has informed Holder in writing prior to the date hereof,
(b) indebtedness to trade creditors or financial institutions incurred in the
ordinary course of business or (c) borrowings, the proceeds of which shall be
used to repay this Note.

      2.4    Sale of Assets.  So long as the Borrower shall have any
obligation under this Note, the Borrower shall not, without the Holder's
written consent, sell, lease or otherwise dispose of any significant portion
of its assets outside the ordinary course of business.  Any consent to the
disposition of any assets may be conditioned on a specified use of the
proceeds of disposition.

      2.5    Advances and Loans.  So long as the Borrower shall have any
obligation under this Note, the Borrower shall not, without the Holder's
written consent, lend money, give credit or make advances to any person, firm,
joint venture or corporation, including, without limitation, officers,
directors, employees, subsidiaries and affiliates of the Borrower, except
loans, credits or advances (a) in existence or committed on the date hereof
and which the Borrower has informed Holder in writing prior to the date
hereof, (b) made in the ordinary course of business or (c) not in excess of
$50,000.

      2.6    Contingent Liabilities.  So long as the Borrower shall have any
obligation under this Note, the Borrower shall not, without the Holder's
written consent, which shall not be unreasonably withheld, assume, guarantee,
endorse, contingently agree to purchase or otherwise become liable upon the
obligation of any person, firm, partnership, joint venture or corporation,
except by the endorsement of negotiable instruments for deposit or collection
and except assumptions, guarantees, endorsements and contingencies (a) in
existence or committed on the date hereof and which the Borrower has informed
Holder in writing prior to the date hereof, and (b) similar transactions in
the ordinary course of business.

                  ARTICLE III. EVENTS OF DEFAULT

      If any of the following events of default (each, an "Event of Default")
shall occur:

      3.1    Failure to Pay Principal or Interest.  The Borrower fails to pay
the principal hereof or interest thereon when due on this Note, whether at
maturity, upon a Trading Market Prepayment Event pursuant to Section 1.7, upon
acceleration or otherwise;

      3.2    Conversion and the Shares.  The Borrower fails to issue shares of
Common Stock to the Holder (or announces or threatens that it will not honor
its obligation to do so) upon exercise by the Holder of the conversion rights
of the Holder in accordance with the terms of this Note (for a period of at
least sixty (60) days, if such failure is solely as a result of the
circumstances governed by Section 1.3 and the Borrower is using its best
efforts to authorize a sufficient number of shares of Common Stock as soon as
practicable), fails to transfer or cause its transfer agent to transfer
(electronically or in certificated form) any certificate for shares of Common
Stock issued to the Holder upon conversion of or otherwise pursuant to this
Note as and when required by this Note or the Registration Rights Agreement,
or fails to remove any restrictive legend (or to withdraw any stop transfer
instructions in respect thereof) on any certificate for any shares of Common
Stock issued to the Holder upon conversion of or otherwise pursuant to this
Note as and when required by this Note or the Registration Rights Agreement
(or makes any announcement, statement or threat that it does not intend to
honor the obligations described in this paragraph) and any such failure shall
continue uncured (or any announcement, statement or threat not to honor its
obligations shall not be rescinded in writing) for ten (10) days after the
Borrower shall have been notified thereof in writing by the Holder;

      3.3    Failure to Timely File Registration or Effect Registration.  The
Borrower fails to file the Registration Statement within thirty (30) days
following the Closing Date (as defined in the Purchase Agreement) or obtain
effectiveness with the Securities and Exchange Commission of the Registration
Statement within one hundred twenty (120) days following the Closing Date (as
defined in the Purchase Agreement) or such Registration Statement lapses in
effect (or sales cannot otherwise be made thereunder effective, whether by
reason of the Borrower's failure to amend or supplement the prospectus
included therein in accordance with the Registration Rights Agreement or
otherwise) for more than ten (10) consecutive days or twenty (20) days in any
twelve month period after the Registration Statement becomes effective;

      3.4    Breach of Covenants.  The Borrower breaches any material covenant
or other material term or condition contained in Sections 1.3, 1.6 or 1.7 of
this Note, or Sections 4(c), 4(e), 4(h), 4(i), 4(j) or 5 of the Purchase
Agreement and such breach continues for a period of ten (10) days after
written notice thereof to the Borrower from the Holder;

      3.5    Breach of Representations and Warranties.  Any representation or
warranty of the Borrower made herein or in any agreement, statement or
certificate given in writing pursuant hereto or in connection herewith
(including, without limitation, the Purchase Agreement and the Registration
Rights Agreement), shall be false or misleading in any material respect when
made and the breach of which has (or with the passage of time will have) a
material adverse effect on the rights of the Holder with respect to this Note,
the Purchase Agreement or the Registration Rights Agreement;

      3.6    Receiver or Trustee.  The Borrower or any subsidiary of the
Borrower shall make an assignment for the benefit of creditors, or apply for
or consent to the appointment of a receiver or trustee for it or for a
substantial part of its property or business, or such a receiver or trustee
shall otherwise be appointed;

      3.7    Judgments.  Any money judgment, writ or similar process shall be
entered or filed against the Borrower or any subsidiary of the Borrower or any
of its property or other assets for more than $50,000, and shall remain
unvacated, unbonded or unstayed for a period of twenty (20) days unless
otherwise consented to by the Holder, which consent will not be unreasonably
withheld;

      3.8    Bankruptcy.  Bankruptcy, insolvency, reorganization or
liquidation proceedings or other proceedings for relief under any bankruptcy
law or any law for the relief of debtors shall be instituted by or against the
Borrower or any subsidiary of the Borrower, unless such proceeding shall be
stayed within thirty (30) days;

      3.9    Delisting of Common Stock.  The Borrower shall fail to maintain
the listing of the Common Stock on at least one of the OTCBB or an equivalent
replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market,
the New York Stock Exchange, or the American Stock Exchange; or

      3.10    Default Under Other Notes.  An Event of Default has occurred and
is continuing under any of the other Notes issued pursuant to the Purchase
Agreement, then, upon the occurrence and during the continuation of any Event
of Default specified in Section 3.1, 3.2, 3.3, 3.4, 3.5, 3.7, 3.9, or 3.10, at
the option of the Holders of a majority of the aggregate principal amount of
the outstanding Notes issued pursuant to the Purchase Agreement exercisable
through the delivery of written notice to the Borrower by such Holders (the
"Default Notice"), and upon the occurrence of an Event of Default specified in
Section 3.6 or 3.8 (unless, under Section 3.8, such proceeding shall be stayed
within 30 days), the Notes shall become immediately due and payable and the
Borrower shall pay to the Holder, in full satisfaction of its obligations
hereunder, an amount equal to the greater of (i) 130% times the sum of (w) the
then outstanding principal amount of this Note plus (x) accrued and unpaid
interest on the unpaid principal amount of this Note to the date of payment
(the "Mandatory Prepayment Date") plus (y) Default Interest, if any, on the
amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the
Holder pursuant to Sections 1.3 and 1.4(g) hereof or pursuant to Section 2(c)
of the Registration Rights Agreement (the then outstanding principal amount of
this Note to the date of payment plus the amounts referred to in clauses (x),
(y) and (z) shall collectively be known as the "Default Sum") or (ii) the
"parity value" of the Default Sum to be prepaid, where parity value means (a)
the highest number of shares of Common Stock issuable upon conversion of or
otherwise pursuant to such Default Sum in accordance with Article I, treating
the Trading Day immediately preceding the Mandatory Prepayment Date as the
"Conversion Date" for purposes of determining the lowest applicable Conversion
Price, unless the Default Event arises as a result of a breach in respect of a
specific Conversion Date in which case such Conversion Date shall be the
Conversion Date), multiplied by (b) the highest Closing Price for the Common
Stock during the period beginning on the date of first occurrence of the Event
of Default and ending one day prior to the Mandatory Prepayment Date (the
"Default Amount") and all other amounts payable hereunder shall immediately
become due and payable, all without demand, presentment or notice, all of
which hereby are expressly waived, together with all costs, including, without
limitation, legal fees and expenses, of collection, and the Holder shall be
entitled to exercise all other rights and remedies available at law or in
equity.  If the Borrower fails to pay the Default Amount within five (5)
business days of written notice that such amount is due and payable, then the
Holder shall have the right at any time, so long as the Borrower remains in
default (and so long and to the extent that there are sufficient authorized
shares), to require the Borrower, upon written notice, to immediately issue,
in lieu of the Default Amount, the number of shares of Common Stock of the
Borrower equal to the Default Amount divided by the Conversion Price then in
effect.

                    ARTICLE IV. MISCELLANEOUS

      4.1    Failure or Indulgence Not Waiver.  No failure or delay on the
part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof
or of any other right, power or privileges.  All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

      4.2    Notices.  Any notice herein required or permitted to be given
shall be in writing and may be personally served or delivered by courier or
sent by United States mail and shall be deemed to have been given upon receipt
if personally served (which shall include telephone line facsimile
transmission) or sent by courier or three (3) days after being deposited in
the United States mail, certified, with postage pre-paid and properly
addressed, if sent by mail.  For the purposes hereof, the address of the
Holder shall be as shown on the records of the Borrower; and the address of
the Borrower shall be 2602 Yorktown Place, Houston, Texas 77056; facsimile:
(713) 626-5333.  Both the Holder and the Borrower may change the address for
service by service of written notice to the other as herein provided.

      4.3    Amendments.  This Note and any provision hereof may only be
amended by an instrument in writing signed by the Borrower and the Holder.
The term "Note" and all reference thereto, as used throughout this instrument,
shall mean this instrument (and the other Notes issued pursuant to the
Purchase Agreement) as originally executed, or if later amended or
supplemented, then as so amended or supplemented.

      4.4    Assignability.  This Note shall be binding upon the Borrower and
its successors and assigns, and shall inure to be the benefit of the Holder
and its successors and assigns.  Each transferee of this Note must be an
"accredited investor" (as defined in Rule 501(a) of the 1933 Act).
Notwithstanding anything in this Note to the contrary, this Note may be
pledged as collateral in connection with a bona fide margin account or other
lending arrangement.

      4.5    Cost of Collection.  If default is made in the payment of this
Note, the Borrower shall pay the Holder hereof costs of collection, including
reasonable attorneys' fees.

      4.6    Governing Law.  THIS NOTE 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 BORROWER HEREBY SUBMITS TO THE
EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW
YORK, NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS NOTE, 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 NOTE SHALL BE RESPONSIBLE FOR ALL
FEES AND EXPENSES, INCLUDING ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY
IN CONNECTION WITH SUCH DISPUTE.

      4.7    Certain Amounts.  Whenever pursuant to this Note the Borrower is
required to pay an amount in excess of the outstanding principal amount (or
the portion thereof required to be paid at that time) plus accrued and unpaid
interest plus Default Interest on such interest, the Borrower and the Holder
agree that the actual damages to the Holder from the receipt of cash payment
on this Note may be difficult to determine and the amount to be so paid by the
Borrower represents stipulated damages and not a penalty and is intended to
compensate the Holder in part for loss of the opportunity to convert this Note
and to earn a return from the sale of shares of Common Stock acquired upon
conversion of this Note at a price in excess of the price paid for such shares
pursuant to this Note.  The Borrower and the Holder hereby agree that such
amount of stipulated damages is not plainly disproportionate to the possible
loss to the Holder from the receipt of a cash payment without the opportunity
to convert this Note into shares of Common Stock.

      4.8    Allocations of Maximum Share Amount and Reserved Amount.  The
Maximum Share Amount and Reserved Amount shall be allocated pro rata among the
Holders of Notes based on the principal amount of such Notes issued to each
Holder.  Each increase to the Maximum Share Amount and Reserved Amount shall
be allocated pro rata among the Holders of Notes based on the principal amount
of such Notes held by each Holder at the time of the increase in the Maximum
Share Amount or Reserved Amount.  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 such transferor's Maximum Share Amount and
Reserved Amount.  Any portion of the Maximum Share Amount or Reserved Amount
which remains allocated to any person or entity which does not hold any Notes
shall be allocated to the remaining Holders of Notes, pro rata based on the
principal amount of such Notes then held by such Holders.

      4.9    Damages Shares.  The shares of Common Stock that may be issuable
to the Holder pursuant to Sections 1.3 and 1.4(g) hereof and pursuant to
Section 2(c) of the Registration Rights Agreement ("Damages Shares") shall be
treated as Common Stock issuable upon conversion of this Note for all purposes
hereof and shall be subject to all of the limitations and afforded all of the
rights of the other shares of Common Stock issuable hereunder, including
without limitation, the right to be included in the Registration Statement
filed pursuant to the Registration Rights Agreement.  For purposes of
calculating interest payable on the outstanding principal amount hereof,
except as otherwise provided herein, amounts convertible into Damages Shares
("Damages Amounts") shall not bear interest but must be converted prior to the
conversion of any outstanding principal amount hereof, until the outstanding
Damages Amounts is zero.

      4.10    Denominations.  At the request of the Holder, upon surrender of
this Note, the Borrower shall promptly issue new Notes in the aggregate
outstanding principal amount hereof, in the form hereof, in such denominations
of at least $50,000 as the Holder shall request.

      4.11    Purchase Agreement.  By its acceptance of this Note, each Holder
agrees to be bound by the applicable terms of the Purchase Agreement.

      4.12    Notice of Corporate Events.  Except as otherwise provided below,
the Holder of this Note shall have no rights as a Holder of Common Stock
unless and only to the extent that it converts this Note into Common Stock.
The Borrower shall provide the Holder with prior notification of any meeting
of the Borrower's shareholders (and copies of proxy materials and other
information sent to shareholders).  In the event of any taking by the Borrower
of a record of its shareholders for the purpose of determining shareholders
who are entitled to receive payment of any dividend or other distribution, any
right to subscribe for, purchase or otherwise acquire (including by way of
merger, consolidation, reclassification or recapitalization) any share of any
class or any other securities or property, or to receive any other right, or
for the purpose of determining shareholders who are entitled to vote in
connection with any proposed sale, lease or conveyance of all or substantially
all of the assets of the Borrower or any proposed liquidation, dissolution or
winding up of the Borrower, the Borrower shall mail a notice to the Holder, at
least twenty (20) days prior to the record date specified therein (or thirty
(30) days prior to the consummation of the transaction or event, whichever is
earlier), of the date on which any such record is to be taken for the purpose
of such dividend, distribution, right or other event, and a brief statement
regarding the amount and character of such dividend, distribution, right or
other event to the extent known at such time.  The Borrower shall make a
public announcement of any event requiring notification to the Holder
hereunder substantially simultaneously with the notification to the Holder in
accordance with the terms of this Section 4.12.

      4.13    Remedies.  The Borrower 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 Borrower acknowledges that the remedy at law for a breach of its
obligations under this Note will be inadequate and agrees, in the event of a
breach or threatened breach by the Borrower of the provisions of this Note,
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
Note 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.

                      ARTICLE V. CALL OPTION

      5.1    Call Option.  Notwithstanding anything to the contrary contained
in this Article V, so long as (1) no Event of Default or Trading Market
Prepayment Event shall have occurred and be continuing, (2) the Borrower has a
sufficient number of authorized shares of Common Stock reserved for issuance
upon full conversion of the Notes, then at any time after the Issue Date, and
(3) the Common Stock is trading at or below $..05 per share, the Borrower
shall have the right, exercisable on not less than ten (10) Trading Days prior
written notice to the Holders of the Notes (which notice may not be sent to
the Holders of the Notes until the Borrower is permitted to prepay the Notes
pursuant to this Section 5.1), to prepay all of the outstanding Notes in
accordance with this Section 5.1.  Any notice of prepayment hereunder (an
"Optional Prepayment") shall be delivered to the Holders of the Notes at their
registered addresses appearing on the books and records of the Borrower and
shall state (1) that the Borrower is exercising its right to prepay all of the
Notes issued on the Issue Date and (2) the date of prepayment (the "Optional
Prepayment Notice").  On the date fixed for prepayment (the "Optional
Prepayment Date"), the Borrower shall make payment of the Optional Prepayment
Amount (as defined below) to or upon the order of the Holders as specified by
the Holders in writing to the Borrower at least one (1) business day prior to
the Optional Prepayment Date.  If the Borrower exercises its right to prepay
the Notes, the Borrower shall make payment to the holders of an amount in cash
(the "Optional Prepayment Amount") equal to either (i) 120% (for prepayments
occurring within thirty (30) days of the Issue Date), (ii) 130% for
prepayments occurring between thirty-one (31) and sixty  (60) days of the
Issue Date, or (iii) 140% (for prepayments occurring after the sixtieth (60th)
day following the Issue Date), multiplied by the sum of (w) the then
outstanding principal amount of this Note plus (x) accrued and unpaid interest
on the unpaid principal amount of this Note to the Optional Prepayment Date
plus (y) Default Interest, if any, on the amounts referred to in clauses (w)
and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and
1.4(g) hereof or pursuant to Section 2(c) of the Registration Rights Agreement
(the then outstanding principal amount of this Note to the date of payment
plus the amounts referred to in clauses (x), (y) and (z) shall collectively be
known as the "Optional Prepayment Sum"). Notwithstanding notice of an Optional
Prepayment, the Holders shall at all times prior to the Optional Prepayment
Date maintain the right to convert all or any portion of the Notes in
accordance with Article I and any portion of Notes so converted after receipt
of an Optional Prepayment Notice and prior to the Optional Prepayment Date set
forth in such notice and payment of the aggregate Optional Prepayment Amount
shall be deducted from the principal amount of Notes which are otherwise
subject to prepayment pursuant to such notice.  If the Borrower delivers an
Optional Prepayment Notice and fails to pay the Optional Prepayment Amount due
to the Holders of the Notes within two (2) business days following the
Optional Prepayment Date, the Borrower shall forever forfeit its right to
redeem the Notes pursuant to this Section 5.1.

5.2    Partial Call Option.  Notwithstanding anything to the contrary
contained in this Article V, in the event that the Average Daily Price of the
Common Stock, as reported by the Reporting Service, for each day of the month
ending on any Determination Date is below the Initial Market Price, the
Borrower may, at its option, prepay a portion of the outstanding principal
amount of the Notes equal to 104% of the principal amount hereof divided by
thirty-six (36) plus one month's interest.  The term "Initial Market Price"
shall mean the volume weighted average price of the Common Stock for the five
(5) Trading Days immediately preceding the Closing which is $.05.

           [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

      IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its
name by its duly authorized officer this 18th day of April, 2006.

                              M POWER ENTERTAINMENT, INC.

                                  /s/ Gary F. Kimmons
                              By:______________________________
                                 Gary F. Kimmons
                                 Chief Executive Officer

                            EXHIBIT A

                       NOTICE OF CONVERSION
             (To be Executed by the Registered Holder
                  in order to Convert the Notes)

      The undersigned hereby irrevocably elects to convert $__________
principal amount of the Note (defined below) into shares of common stock, par
value $.001 per share ("Common Stock"), of M Power Entertainment, Inc., a
Delaware corporation (the "Borrower") according to the conditions of the
convertible Notes of the Borrower dated as of April 18, 2006 (the "Notes"), as
of the date written below.  If securities are to be issued in the name of a
person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect thereto and is delivering herewith such certificates.  No
fee will be charged to the Holder for any conversion, except for transfer
taxes, if any.  A copy of each Note is attached hereto (or evidence of loss,
theft or destruction thereof).

      The Borrower shall electronically transmit the Common Stock issuable
pursuant to this Notice of Conversion to the account of the undersigned or its
nominee with DTC through its Deposit Withdrawal Agent Commission system ("DWAC
Transfer").

      Name of DTC Prime Broker:_____________________________________
      Account Number:_______________________________________________

      In lieu of receiving shares of Common Stock issuable pursuant to this
Notice of Conversion by way of a DWAC Transfer, the undersigned hereby
requests that the Borrower issue a certificate or certificates for the number
of shares of Common Stock set forth below (which numbers are based on the
Holder's calculation attached hereto) in the name(s) specified immediately
below or, if additional space is necessary, on an attachment hereto:

      Name:_________________________________________________________
      Address:______________________________________________________

      The undersigned represents and warrants that all offers and sales by the
undersigned of the securities issuable to the undersigned upon conversion of
the Notes shall be made pursuant to registration of the securities under the
Securities Act of 1933, as amended (the "Act"), or pursuant to an exemption
from registration under the Act.

      Date of Conversion:___________________________________________
      Applicable Conversion Price:__________________________________
      Number of Shares of Common Stock to be Issued Pursuant to
      Conversion of the Notes:______________________________________
      Signature:____________________________________________________
      Name:_________________________________________________________
      Address:______________________________________________________

The Borrower shall issue and deliver shares of Common Stock to an overnight
courier not later than three business days following receipt of the original
Note(s) to be converted, and shall make payments pursuant to the Notes for the
number of business days such issuance and delivery is late.

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