Document:

Exhibit
            10.12

            

            REGISTRATION
            RIGHTS AGREEMENT

            

            
                    
            REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of
            August 31, 2007, by and among Amish Naturals, Inc., a Nevada corporation, with
            headquarters located at 6399 State Route 83, Holmesville, Ohio 44633
            (the “Company”), and the undersigned buyers (each, a
            “Buyer”, and collectively, the
            “Buyers”).

            

            
                     WHEREAS:

            

                
                      A.       
            In connection with the Securities Purchase Agreement by and among the parties hereto of
            even date herewith (the “Securities Purchase Agreement”), the
            Company has agreed, upon the terms and subject to the conditions set forth in the
            Securities Purchase Agreement, to issue and sell to each Buyer (i) senior secured
            convertible notes (the “Notes”) which will, among other things, be
            convertible into shares of the Company’s common stock, par value $0.001 per share
            (the “Common Stock,” as converted, collectively, the
            “Conversion Shares”) and (ii) four series of warrants (the
            “Warrants”), which will be exercisable to purchase shares of Common
            Stock (as exercised collectively, the “Warrant Shares”).

            

                
                      B.       
            The Notes bear interest, which at the option of the Company, subject to certain
            conditions, may be paid in shares of Common Stock (the “Interest
            Shares”).

            

                
                      C.       
            In accordance with the terms of the Securities Purchase Agreement, the Company has
            agreed to provide certain registration rights under the Securities Act of 1933, as
            amended, and the rules and regulations thereunder, or any similar successor statute
            (collectively, the “1933 Act”), and applicable state securities
            laws.

            

            
                    
            NOW, THEREFORE, in consideration of the premises and the mutual covenants contained
            herein and other good and valuable consideration, the receipt and sufficiency of which
            are hereby acknowledged, the Company and each of the Buyers hereby agree as
            follows:

            

            
                    1.    
            Definitions.

            

            
                    Capitalized
            terms used herein and not otherwise defined herein shall have the respective meanings
            set forth in the Securities Purchase Agreement. As used in this Agreement, the
            following terms shall have the following meanings:

            

                a.
                   “Additional Effective
            Date” means the date the Additional Registration Statement is declared
            effective by the SEC.

            

            
                b.       “
            Additional Effectiveness Deadline” means the date which is thirty (30)
            calendar days after the earlier of the Additional Filing Date and the Additional Filing
            Deadline or in the event that the Registration Statement is subject to a full review by
            the SEC, ninety (90) calendar days after the earlier of the Additional Filing Date and
            the Additional Filing Deadline.

            
            
            

            
            

            

            
                c.       “
            Additional Filing Date” means the date on which the Additional Registration
            Statement is filed with the SEC.

            

            
                d.       “
            Additional Filing Deadline” means if Cutback Shares are required to be
            included in any Additional Registration Statement, the later of (i) the date sixty (60)
            days after the date substantially all of the Registrable Securities registered under
            the immediately preceding Registration Statement are sold and (ii) the date six (6)
            months from the Initial Effective Date or the most recent Additional Effective Date, as
            applicable.

            

            
                e.       “
            Additional Registrable Securities” means, (i) any Cutback Shares not
            previously included on a Registration Statement and (ii) any capital stock of the
            Company issued or issuable with respect to the Notes, Conversion Shares, the Interest
            Shares, the Warrant Shares, the Warrants or Cutback Shares as a result of any stock
            split, stock dividend, recapitalization, exchange or similar event or otherwise,
            without regard to any limitations on conversion and/or redemption of the Notes or
            exercise of the Warrants.

            

            
                f.       “
            Additional Registration Statement” means a registration statement or
            registration statements of the Company filed under the 1933 Act covering any Additional
            Registrable Securities.

            

            
                g.       “
            Additional Required Registration Amount” means any Cutback Shares not
            previously included on a Registration Statement, all subject to adjustment as provided
            in Section 2(f), without regard to any limitations on conversions and/or redemptions of
            the Notes or exercises of the Warrants.

            

            
                h.       “
            Business Day” means any day other than Saturday, Sunday or any other day on
            which commercial banks in the City of New York are authorized or required by law to
            remain closed.

            

            
                i.       “
            Closing Date” shall have the meaning set forth in the Securities Purchase
            Agreement.

            

            
                j.       “
            Cutback Shares” means any of the Initial Required Registration Amount
            (without regard to clause (II) in the definition thereof) of Registrable Securities not
            included in all Registration Statements previously declared effective hereunder as a
            result of a limitation on the maximum number of shares of Common Stock of the Company
            permitted to be registered by the staff of the SEC pursuant to Rule 415. For the
            purpose of determining the Cutback Securities, in order to determine any applicable
            Required Registration Amount, first the Interest Shares shall be excluded on a pro rata
            basis until all of the Interest Shares have been excluded and second, the Warrant
            Shares shall be excluded on a pro rata basis until all of the Warrant Shares have been
            excluded.

            

            
                k.       “
            Effective Date” means the Initial Effective Date and the Additional Effective
            Date, as applicable.

            

            
                l.       “
            Effectiveness Deadline” means the Initial Effectiveness Deadline and the
            Additional Effectiveness Deadline, as applicable.

            

            2

            
            
            

            
            

            

            
                m.       “
            Filing Deadline” means the Initial Filing Deadline and the Additional Filing
            Deadline, as applicable.

            

            
                n.       “
            Initial Effective Date” means the date that the Initial Registration
            Statement has been declared effective by the SEC.

            

            
                o.       “
            Initial Effectiveness Deadline” means the date (i) in the event that the
            Initial Registration Statement is not subject to a full review by the SEC, sixty (60)
            calendar days after the Closing Date or (ii) in the event that the Initial Registration
            Statement is subject to a full review by the SEC, one-hundred and twenty (120) calendar
            days after the Closing Date; provided, that if the Company is unable to cause
            the Initial Registration Statement to go effective solely because of delays with
            respect to its financial statements, the Initial Effectiveness Deadline will be
            extended by an additional twenty (20) calendar days..

            

            
                p.       “
            Initial Filing Deadline” means the date which is thirty (30) calendar days
            after the Closing Date.

            

            
                q.       “
            Initial Registrable Securities” for the Initial Registration Statement means
            (i) the Conversion Shares issued or issuable upon conversion of the Notes,
            (ii) the Warrant Shares issued or issuable upon exercise of the Warrants, (iii)
            the Interest Shares issued or issuable with respect to the Notes, and (iv) any capital
            stock of the Company issued or issuable, with respect to the Notes, Conversion Shares,
            the Interest Shares, the Warrant Shares or the Warrants as a result of any stock split,
            stock dividend, recapitalization, exchange or similar event or otherwise, without
            regard to any limitations on conversion and/or redemption of the Notes or exercise of
            the Warrants.

            

            
                r.       “
            Initial Registration Statement” means a registration statement or
            registration statements of the Company filed under the 1933 Act covering the Initial
            Registrable Securities.

            

            
                s.       “
            Initial Required Registration Amount” means (I) 130% of the sum of the number
            of Conversion Shares issued and issuable pursuant to the Notes as of the Trading Day
            (as defined in the Securities Purchase Agreement) immediately preceding the applicable
            date of determination, (ii) the number of Warrant Shares issued and issuable pursuant
            to the Warrants as of the Trading Day immediately preceding the applicable date of
            determination and (iii) the number of Interest Shares issued or issuable pursuant to
            the terms of the Notes as of the trading date immediately preceding the applicable date
            of determination, all subject to adjustment as provided in Section 2(f), without regard
            to any limitations on exercises of the Warrants or (II) such other amount as may be
            required by the staff of the SEC pursuant to Rule 415 with any cutback applied pro rata
            to all Registrable Securities, except to the extent prohibited by the SEC.

            

            
                t.       “
            Investor” means a Buyer or any transferee or assignee thereof to whom a Buyer
            assigns its rights under this Agreement and who agrees to become bound by the
            provisions of this Agreement in accordance with Section 9 and any transferee or
            assignee thereof to whom a transferee or assignee assigns its rights under this
            Agreement and who agrees to become bound by the provisions of this Agreement in
            accordance with Section 9.

            

            
                u.       “
            Person” means an individual, a limited liability company, a partnership, a
            joint venture, a corporation, a trust, an unincorporated organization and a government
            or any department or agency thereof.

            

            3

            
            
            

            
            

            

            
                v.       “
            register,” “registered,” and
            “registration” refer to a registration effected by preparing and
            filing one or more Registration Statements in compliance with the 1933 Act and pursuant
            to Rule 415 and the declaration or ordering of effectiveness of such Registration
            Statement(s) by the SEC.

            

            
                w.       “
            Registrable Securities” means the Initial Registrable Securities and the
            Additional Registrable Securities.

            

            
                x.       “
            Registration Statement” means the Initial Registration Statement and the
            Additional Registration Statement, as applicable.

            

            
                y.       “
            Required Holders” means the holders of at least a majority of the Registrable
            Securities.

            

            
                z.       “
            Required Registration Amount” means either the Initial Required Registration
            Amount or the Additional Required Registration Amount, as applicable.

            

            
                aa.       “
            Rule 415” means Rule 415 promulgated under the 1933 Act or any successor rule
            providing for offering securities on a continuous or delayed basis.

            

            
                bb.       “
            SEC” means the United States Securities and Exchange Commission.

            

            4

            
            
            

            
            

            

            	
                    2.	
                    Registration.
                    

            

            

            
                a.       
            Initial Mandatory Registration. The Company shall prepare, and, as soon as
            practicable, but in no event later than the Initial Filing Deadline, file with the SEC
            the Initial Registration Statement on Form S-3 covering the resale of all of the
            Initial Registrable Securities. In the event that Form S-3 is unavailable for such a
            registration, the Company shall use Form S-1 or such other form as is available for
            such a registration on another appropriate form reasonably acceptable to the Required
            Holders, subject to the provisions of Section 2(e). The Initial Registration Statement
            prepared pursuant hereto shall register for resale at least the number of shares of
            Common Stock equal to the Initial Required Registration Amount determined as of the
            date the Initial Registration Statement is initially filed with the SEC. The Initial
            Registration Statement shall contain (except if otherwise directed by the Required
            Holders) the “Selling Stockholders” and “Plan of
            Distribution” sections in substantially the form attached hereto as
            Exhibit B. The Company shall use its best efforts to have the Initial
            Registration Statement declared effective by the SEC as soon as practicable, but in no
            event later than the Initial Effectiveness Deadline. By 9:30 a.m. New York time on the
            Business Day following the Initial Effective Date, the Company shall file with the SEC
            in accordance with Rule 424 under the 1933 Act the final prospectus to be used in
            connection with sales pursuant to such Initial Registration Statement.

            

            
                b.       
            Additional Mandatory Registrations. The Company shall prepare, and, as soon as
            practicable but in no event later than the Additional Filing Deadline, file with the
            SEC an Additional Registration Statement on Form S-3 covering the resale of all of the
            Additional Registrable Securities not previously registered on an Additional
            Registration Statement hereunder. To the extent the staff of the SEC does not permit
            the Additional Required Registration Amount to be registered on an Additional
            Registration Statement, the Company shall file Additional Registration Statements
            successively trying to register on each such Additional Registration Statement the
            maximum number of remaining Additional Registrable Securities until the Additional
            Required Registration Amount has been registered with the SEC. In the event that Form
            S-3 is unavailable for such a registration, the Company shall use Form S-1 or such
            other form as is available for such a registration on another appropriate form
            reasonably acceptable to the Required Holders, subject to the provisions of Section
            2(e). Each Additional Registration Statement prepared pursuant hereto shall register
            for resale at least that number of shares of Common Stock equal to the Additional
            Required Registration Amount determined as of the date such Additional Registration
            Statement is initially filed with the SEC. Each Additional Registration Statement shall
            contain (except if otherwise directed by the Required Holders) the
            “Selling Stockholders” and “Plan of
            Distribution” sections in substantially the form attached hereto as
            Exhibit B. The Company shall use its best efforts to have each Additional
            Registration Statement declared effective by the SEC as soon as practicable, but in no
            event later than the Additional Effectiveness Deadline. By 9:30 a.m. New York time on
            the Business Day following the Additional Effective Date, the Company shall file with
            the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used
            in connection with sales pursuant to such Additional Registration Statement.

            

            
                c.       
            Allocation of Registrable Securities. The initial number of Registrable Securities
            included in any Registration Statement and any increase or decrease in the number of
            Registrable Securities included therein shall be allocated pro rata among the Investors
            based on the number of Registrable Securities held by each Investor at the time the
            Registration Statement covering such initial number of Registrable Securities or
            increase or decrease thereof is declared effective by the SEC. In the event that an
            Investor sells or otherwise transfers any of such Investor’s Registrable
            Securities, each transferee shall be allocated a pro rata portion of the then remaining
            number of Registrable Securities included in such Registration Statement for such
            transferor. Any shares of Common Stock included in a Registration Statement and which
            remain allocated to any Person which ceases to hold any Registrable Securities covered
            by such Registration Statement shall be allocated to the remaining Investors, pro rata
            based on the number of Registrable Securities then held by such Investors which are
            covered by such Registration Statement. In no event shall the Company include any
            securities other than Registrable Securities on any Registration Statement without the
            prior written consent of the Required Holders.

            

            
                d.       
            Legal Counsel. Subject to Section 5 hereof, the Required Holders shall have the
            right to select one legal counsel to review and oversee any registration pursuant to
            this Section 2 (“Legal Counsel”), which shall be Schulte Roth &
            Zabel LLP or such other counsel as thereafter designated by the Required Holders. The
            Company and Legal Counsel shall reasonably cooperate with each other in performing the
            Company’s obligations under this Agreement.

            

            
                e.       
            Ineligibility for Form S-3. In the event that Form S-3 is not available for the
            registration of the resale of Registrable Securities hereunder, the Company shall (i)
            register the resale of the Registrable Securities on Form S-1 or another appropriate
            form reasonably acceptable to the Required Holders and (ii) undertake to register the
            Registrable Securities on Form S-3 as soon as such form is available, provided that the
            Company shall maintain the effectiveness of the Registration Statement then in effect
            until such time as a Registration Statement on Form S-3 covering the Registrable
            Securities has been declared effective by the SEC.

            

            5

            
            
            

            
            

            

            
                f.       
            Sufficient Number of Shares Registered. In the event the number of shares available
            under a Registration Statement filed pursuant to Section 2(a) or Section 2(b) is
            insufficient to cover all of the Registrable Securities required to be covered by such
            Registration Statement or an Investor’s allocated portion of the Registrable
            Securities pursuant to Section 2(c), the Company shall amend the applicable
            Registration Statement, or file a new Registration Statement (on the short form
            available therefor, if applicable), or both, so as to cover at least the Required
            Registration Amount as of the Trading Day immediately preceding the date of the filing
            of such amendment or new Registration Statement, in each case, as soon as practicable,
            but in any event not later than fifteen (15) days after the necessity therefor arises.
            The Company shall use its best efforts to cause such amendment and/or new Registration
            Statement to become effective as soon as practicable following the filing thereof. For
            purposes of the foregoing provision, the number of shares available under a
            Registration Statement shall be deemed “insufficient to cover all of the
            Registrable Securities” if at any time the number of shares of Common Stock
            available for resale under the Registration Statement is less than the product
            determined by multiplying (i) the Required Registration Amount as of such time by (ii)
            0.90. The calculation set forth in the foregoing sentence shall be made without regard
            to any limitations on the conversion and/or redemption of the Notes or exercise of the
            Warrants and such calculation shall assume that the Notes are then convertible into
            shares of Common Stock at the then prevailing Conversion Rate (as defined in the Notes)
            and that the Warrants are then exercisable for shares of Common Stock at the then
            prevailing Exercise Price (as defined in the Warrants).

            

            	
                    g.	Effect
                    of Failure to File and Obtain and Maintain Effectiveness of Registration
                    Statement. If (i) a Registration Statement covering all of the Registrable
                    Securities required to be covered thereby and required to be filed by the
                    Company pursuant to this Agreement is (A) not filed with the SEC on or before
                    the respective Filing Deadline (a “Filing Failure”) or (B)
                    not declared effective by the SEC on or before the respective Effectiveness
                    Deadline (an “Effectiveness Failure”) or (ii) on any day
                    after the Effective Date sales of all of the Registrable Securities required to
                    be included on such Registration Statement cannot be made (other than during an
                    Allowable Grace Period (as defined in Section 3(r)) pursuant to such
                    Registration Statement or otherwise (including, without limitation, because of
                    a failure to keep such Registration Statement effective, to disclose such
                    information as is necessary for sales to be made pursuant to such Registration
                    Statement, to register a sufficient number of shares of Common Stock or to
                    maintain the listing of the Common Stock) (a “Maintenance
                    Failure”) then, as partial relief for the damages to any holder by
                    reason of any such delay in or reduction of its ability to sell the underlying
                    shares of Common Stock (which remedy shall not be exclusive of any other
                    remedies available at law or in equity), the Company shall pay to each holder
                    of Registrable Securities relating to such Registration Statement an amount in
                    cash equal to two percent (2.0%) of the aggregate Purchase Price (as such term
                    is defined in the Securities Purchase Agreement) of such Investor’s
                    Registrable Securities whether or not included in such Registration Statement,
                    on each of the following dates: (i) the day of a Filing Failure; (ii) the day
                    of an Effectiveness Failure; (iii) the initial day of a Maintenance Failure;
                    (iv) on every thirtieth day after the day of a Filing Failure and thereafter
                    (pro rated for periods totaling less than thirty days) until such Filing
                    Failure is cured; (v) on every thirtieth day after the day of an Effectiveness
                    Failure and thereafter (pro rated for periods totaling less than thirty days)
                    until such Effectiveness Failure is cured; and (vi) on every thirtieth day
                    after the initial day of a Maintenance Failure and thereafter (pro rated for
                    periods totaling less than thirty days) until such Maintenance Failure is
                    cured. The payments to which a holder shall be entitled pursuant to this
                    Section 2(g) are referred to herein as “Registration Delay
                    Payments.” Registration Delay Payments shall be paid on the earlier
                    of (I) the dates set forth above and (II) the third Business Day after the
                    event or failure giving rise to the Registration Delay Payments is cured. In
                    the event the Company fails to make Registration Delay Payments in a timely
                    manner, such Registration Delay Payments shall bear interest at the rate of one
                    percent (1.0%) per month (prorated for partial months) until paid in
                    full. 

            

            

            6

            
            
            

            
            

            

            
                3.       
            Related Obligations.

            

            
                    At
            such time as the Company is obligated to file a Registration Statement with the SEC
            pursuant to Section 2(a), 2(b), 2(e) or 2(f), the Company will use its best efforts to
            effect the registration of the Registrable Securities in accordance with the intended
            method of disposition thereof and, pursuant thereto, the Company shall have the
            following obligations:

            

            
                a.       The
            Company shall promptly prepare and file with the SEC a Registration Statement with
            respect to the Registrable Securities and use its best efforts to cause such
            Registration Statement relating to the Registrable Securities to become effective as
            soon as practicable after such filing (but in no event later than the Effectiveness
            Deadline). The Company shall keep each Registration Statement effective pursuant to
            Rule 415 at all times until the earlier of (i) the date as of which the Investors may
            sell all of the Registrable Securities covered by such Registration Statement without
            restriction pursuant to Rule 144(k) (or any successor thereto) promulgated under the
            1933 Act or (ii) the date on which the Investors shall have sold all of the Registrable
            Securities covered by such Registration Statement (the “Registration
            Period”). The Company shall ensure that each Registration Statement
            (including any amendments or supplements thereto and prospectuses contained therein)
            shall not contain any untrue statement of a material fact or omit to state a material
            fact required to be stated therein, or necessary to make the statements therein (in the
            case of prospectuses, in the light of the circumstances in which they were made) not
            misleading. The term “best efforts” shall mean, among other things, that
            the Company shall submit to the SEC, within two (2) Business Days after the later of
            the date that (i) the Company learns that no review of a particular Registration
            Statement will be made by the staff of the SEC or that the staff has no further
            comments on a particular Registration Statement, as the case may be, and (ii) the
            approval of Legal Counsel pursuant to Section 3(c) (which approval is immediately
            sought), a request for acceleration of effectiveness of such Registration Statement to
            a time and date not later than two (2) Business Days after the submission of such
            request. The Company shall respond in writing to comments made by the SEC in respect of
            a Registration Statement as soon as practicable, but in no event later than fifteen
            (15) days after the receipt of comments by or notice from the SEC that an amendment is
            required in order for a Registration Statement to be declared effective.

            

            7

            
            
            

            
            

            

            
                b.       The
            Company shall prepare and file with the SEC such amendments (including post-effective
            amendments) and supplements to a Registration Statement and the prospectus used in
            connection with such Registration Statement, which prospectus is to be filed pursuant
            to Rule 424 promulgated under the 1933 Act, as may be necessary to keep such
            Registration Statement effective at all times during the Registration Period, and,
            during such period, comply with the provisions of the 1933 Act with respect to the
            disposition of all Registrable Securities of the Company covered by such Registration
            Statement until such time as all of such Registrable Securities shall have been
            disposed of in accordance with the intended methods of disposition by the seller or
            sellers thereof as set forth in such Registration Statement. In the case of amendments
            and supplements to a Registration Statement which are required to be filed pursuant to
            this Agreement (including pursuant to this Section 3(b)) by reason of the Company
            filing a report on Form 10-Q, Form 10-QSB, Form 10-K, Form 10-KSB or any analogous
            report under the Securities Exchange Act of 1934, as amended (the “1934
            Act”), the Company shall have incorporated such report by reference into such
            Registration Statement, if applicable, or shall file such amendments or supplements
            with the SEC on the same day on which the 1934 Act report is filed which created the
            requirement for the Company to amend or supplement such Registration
            Statement.

            

            
                c.       The
            Company shall (A) permit Legal Counsel to review and comment upon (i) a Registration
            Statement at least five (5) Business Days prior to its filing with the SEC and (ii) all
            amendments and supplements to all Registration Statements (except for Annual Reports on
            Form 10-K or Form 10-KSB, Quarterly Reports on Form 10-Q or Form 10-QSB, Current
            Reports on Form 8-K, and any similar or successor reports) within a reasonable number
            of days prior to their filing with the SEC, and (B) not file any Registration Statement
            or amendment or supplement thereto in a form to which Legal Counsel reasonably objects.
            The Company shall not submit a request for acceleration of the effectiveness of a
            Registration Statement or any amendment or supplement thereto without the prior
            approval of Legal Counsel, which consent shall not be unreasonably withheld. The
            Company shall furnish to Legal Counsel, without charge, (i) copies of any
            correspondence from the SEC or the staff of the SEC to the Company or its
            representatives relating to any Registration Statement, (ii) promptly after the same is
            prepared and filed with the SEC, one copy of any Registration Statement and any
            amendment(s) thereto, including financial statements and schedules, all documents
            incorporated therein by reference, if requested by an Investor, and all exhibits and
            (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus
            included in such Registration Statement and all amendments and supplements thereto. The
            Company shall reasonably cooperate with Legal Counsel in performing the Company’s
            obligations pursuant to this Section 3.

            

            
                d.       The
            Company shall furnish to each Investor whose Registrable Securities are included in any
            Registration Statement, without charge, (i) promptly after the same is prepared and
            filed with the SEC, at least one copy of such Registration Statement and any
            amendment(s) thereto, including financial statements and schedules, all documents
            incorporated therein by reference, if requested by an Investor, all exhibits and each
            preliminary prospectus, (ii) upon the effectiveness of any Registration Statement, ten
            (10) copies of the prospectus included in such Registration Statement and all
            amendments and supplements thereto (or such other number of copies as such Investor may
            reasonably request) and (iii) such other documents, including copies of any preliminary
            or final prospectus, as such Investor may reasonably request from time to time in order
            to facilitate the disposition of the Registrable Securities owned by such
            Investor.

            

            8

            
            
            

            
            

            

            
                e.       The
            Company shall use its best efforts to (i) register and qualify, unless an exemption
            from registration and qualification applies, the resale by Investors of the Registrable
            Securities covered by a Registration Statement under such other securities or
            “blue sky” laws of all applicable jurisdictions in the United States, (ii)
            prepare and file in those jurisdictions, such amendments (including post-effective
            amendments) and supplements to such registrations and qualifications as may be
            necessary to maintain the effectiveness thereof during the Registration Period, (iii)
            take such other actions as may be necessary to maintain such registrations and
            qualifications in effect at all times during the Registration Period, and (iv) take all
            other actions reasonably necessary or advisable to qualify the Registrable Securities
            for sale in such jurisdictions; provided, however, that the Company shall not be
            required in connection therewith or as a condition thereto to (x) qualify to do
            business in any jurisdiction where it would not otherwise be required to qualify but
            for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction,
            or (z) file a general consent to service of process in any such jurisdiction. The
            Company shall promptly notify Legal Counsel and each Investor who holds Registrable
            Securities of the receipt by the Company of any notification with respect to the
            suspension of the registration or qualification of any of the Registrable Securities
            for sale under the securities or “blue sky” laws of any jurisdiction in the
            United States or its receipt of actual notice of the initiation or threatening of any
            proceeding for such purpose.

            

            
                f.       The
            Company shall notify Legal Counsel and each Investor in writing of the happening of any
            event, as promptly as practicable after becoming aware of such event, as a result of
            which the prospectus included in a Registration Statement, as then in effect, includes
            an untrue statement of a material fact or omission to state a material fact required to
            be stated therein or necessary to make the statements therein, in the light of the
            circumstances under which they were made, not misleading (provided that in no event
            shall such notice contain any material, nonpublic information), and, subject to Section
            3(r), promptly prepare a supplement or amendment to such Registration Statement to
            correct such untrue statement or omission and deliver ten (10) copies of such
            supplement or amendment to Legal Counsel and each Investor (or such other number of
            copies as Legal Counsel or such Investor may reasonably request). The Company shall
            also promptly notify Legal Counsel and each Investor in writing (i) when a prospectus
            or any prospectus supplement or post-effective amendment has been filed, and when a
            Registration Statement or any post-effective amendment has become effective
            (notification of such effectiveness shall be delivered to Legal Counsel and each
            Investor by facsimile or e-mail on the same day of such effectiveness and by overnight
            mail), (ii) of any request by the SEC for amendments or supplements to a Registration
            Statement or related prospectus or related information, and (iii) of the
            Company’s reasonable determination that a post-effective amendment to a
            Registration Statement would be appropriate.

            

            
                g.       The
            Company shall use its best efforts to prevent the issuance of any stop order or other
            suspension of effectiveness of a Registration Statement, or the suspension of the
            qualification of any of the Registrable Securities for sale in any jurisdiction and, if
            such an order or suspension is issued, to obtain the withdrawal of such order or
            suspension at the earliest possible moment and to notify Legal Counsel and each
            Investor who holds Registrable Securities being sold of the issuance of such order and
            the resolution thereof or its receipt of actual notice of the initiation or threat of
            any proceeding for such purpose.

            

            9

            
            
            

            
            

            

            
                h.       If
            any Investor is required under applicable securities laws to be described in the
            Registration Statement as an underwriter or an Investor believes that it could
            reasonably be deemed to be an underwriter of Registrable Securities, at the reasonable
            request of such Investor, the Company shall furnish to such Investor, on the date of
            the effectiveness of the Registration Statement and thereafter from time to time on
            such dates as an Investor may reasonably request (i) a letter, dated such date, from
            the Company’s independent certified public accountants in form and substance as
            is customarily given by independent certified public accountants to underwriters in an
            underwritten public offering, addressed to the Investors, and (ii) an opinion, dated as
            of such date, of counsel representing the Company for purposes of such Registration
            Statement, in form, scope and substance as is customarily given in an underwritten
            public offering, addressed to the Investors.

            

            
                i.       If
            any Investor is required under applicable securities laws to be described in the
            Registration Statement as an underwriter or an Investor believes that it could
            reasonably be deemed to be an underwriter of Registrable Securities, the Company shall
            make available for inspection by (i) such Investor, (ii) Legal Counsel and (iii) one
            firm of accountants or other agents retained by the Investors (collectively, the
            “Inspectors”), all pertinent financial and other records, and
            pertinent corporate documents and properties of the Company (collectively, the
            “Records”), as shall be reasonably deemed necessary by each
            Inspector, and cause the Company’s officers, directors and employees to supply
            all information which any Inspector may reasonably request; provided, however, that
            each Inspector shall agree to hold in strict confidence and shall not make any
            disclosure (except to an Investor) or use of any Record or other information which the
            Company determines in good faith to be confidential, and of which determination the
            Inspectors are so notified, unless (a) the disclosure of such Records is necessary to
            avoid or correct a misstatement or omission in any Registration Statement or is
            otherwise required under the 1933 Act, (b) the release of such Records is ordered
            pursuant to a final, non-appealable subpoena or order from a court or government body
            of competent jurisdiction, or (c) the information in such Records has been made
            generally available to the public other than by disclosure in violation of this
            Agreement. Each Investor agrees that it shall, upon learning that disclosure of such
            Records is sought in or by a court or governmental body of competent jurisdiction or
            through other means, give prompt notice to the Company and allow the Company, at its
            expense, to undertake appropriate action to prevent disclosure of, or to obtain a
            protective order for, the Records deemed confidential. Nothing herein (or in any other
            confidentiality agreement between the Company and any Investor) shall be deemed to
            limit the Investors’ ability to sell Registrable Securities in a manner which is
            otherwise consistent with applicable laws and regulations.

            

            
                j.       The
            Company shall hold in confidence and not make any disclosure of information concerning
            an Investor provided to the Company unless (i) disclosure of such information is
            necessary to comply with federal or state securities laws, (ii) the disclosure of such
            information is necessary to avoid or correct a misstatement or omission in any
            Registration Statement, (iii) the release of such information is ordered pursuant to a
            subpoena or other final, non-appealable order from a court or governmental body of
            competent jurisdiction, or (iv) such information has been made generally available to
            the public other than by disclosure in violation of this Agreement or any other
            agreement. The Company agrees that it shall, upon learning that disclosure of such
            information concerning an Investor is sought in or by a court or governmental body of
            competent jurisdiction or through other means, give prompt written notice to such
            Investor and allow such Investor, at the Investor’s expense, to undertake
            appropriate action to prevent disclosure of, or to obtain a protective order for, such
            information.

            

            10

            
            
            

            
            

            

            
                k.       The
            Company shall use its best efforts either to (i) cause all of the Registrable
            Securities covered by a Registration Statement to be listed on each securities exchange
            on which securities of the same class or series issued by the Company are then listed,
            if any, if the listing of such Registrable Securities is then permitted under the rules
            of such exchange or (ii) secure the inclusion for quotation of all of the Registrable
            Securities on The NASDAQ Global Select Market or (iii) if, despite the Company’s
            best efforts, the Company is unsuccessful in satisfying the preceding clauses (i) and
            (ii), to secure the inclusion for quotation on The NASDAQ Global Market, the New York
            Stock Exchange, The NASDAQ Capital Market or the American Stock Exchange for such
            Registrable Securities and, without limiting the generality of the foregoing, to use
            its best efforts to arrange for at least two market makers to register with the
            National Association of Securities Dealers, Inc. (“NASD”) as such with
            respect to such Registrable Securities. The Company shall pay all fees and expenses in
            connection with satisfying its obligation under this Section 3(k).

            

            
                l.       The
            Company shall cooperate with the Investors who hold Registrable Securities being
            offered and, to the extent applicable, facilitate the timely preparation and delivery
            of certificates (not bearing any restrictive legend) representing the Registrable
            Securities to be offered pursuant to a Registration Statement and enable such
            certificates to be in such denominations or amounts, as the case may be, as the
            Investors may reasonably request and registered in such names as the Investors may
            request.

            

            
                m.       If
            requested by an Investor, the Company shall as soon as practicable (i) incorporate in a
            prospectus supplement or post-effective amendment such information as an Investor
            reasonably requests to be included therein relating to the sale and distribution of
            Registrable Securities, including, without limitation, information with respect to the
            number of Registrable Securities being offered or sold, the purchase price being paid
            therefor and any other terms of the offering of the Registrable Securities to be sold
            in such offering; (ii) make all required filings of such prospectus supplement or
            post-effective amendment after being notified of the matters to be incorporated in such
            prospectus supplement or post-effective amendment; and (iii) supplement or make
            amendments to any Registration Statement if reasonably requested by an Investor holding
            any Registrable Securities.

            

            
                n.       The
            Company shall use its best efforts to cause the Registrable Securities covered by a
            Registration Statement to be registered with or approved by such other governmental
            agencies or authorities as may be necessary to consummate the disposition of such
            Registrable Securities.

            

            
                o.       The
            Company shall make generally available to its security holders as soon as practical,
            but not later than ninety (90) days after the close of the period covered thereby, an
            earnings statement (in form complying with, and in the manner provided by, the
            provisions of Rule 158 under the 1933 Act) covering a twelve-month period beginning not
            later than the first day of the Company’s fiscal quarter next following the
            applicable Effective Date of a Registration Statement.

            

            11

            
            
            

            
            

            

            
                p.       The
            Company shall otherwise use its best efforts to comply with all applicable rules and
            regulations of the SEC in connection with any registration hereunder.

            

            
                q.       Within
            two (2) Business Days after a Registration Statement which covers Registrable
            Securities is ordered effective by the SEC, the Company shall deliver, and shall cause
            legal counsel for the Company to deliver, to the transfer agent for such Registrable
            Securities (with copies to the Investors whose Registrable Securities are included in
            such Registration Statement) confirmation that such Registration Statement has been
            declared effective by the SEC in the form attached hereto as Exhibit
            A.

            

            
                r.       Notwithstanding
            anything to the contrary herein, at any time after the Effective Date, the Company may
            delay the disclosure of material, non-public information concerning the Company the
            disclosure of which at the time is not, in the good faith opinion of the Board of
            Directors of the Company and its counsel, in the best interest of the Company and, in
            the opinion of counsel to the Company, otherwise required (a “Grace
            Period”); provided, that the Company shall promptly (i) notify the Investors
            in writing of the existence of material, non-public information giving rise to a Grace
            Period (provided that in each notice the Company will not disclose the content of such
            material, non-public information to the Investors) and the date on which the Grace
            Period will begin, and (ii) notify the Investors in writing of the date on which
            the Grace Period ends; and, provided further, that no Grace Period shall exceed five
            (5) consecutive days and during any three hundred sixty five (365) day period such
            Grace Periods shall not exceed an aggregate of twenty (20) days and the first day of
            any Grace Period must be at least five (5) Trading Days after the last day of any prior
            Grace Period (each, an “Allowable Grace Period”). For purposes of
            determining the length of a Grace Period above, the Grace Period shall begin on and
            include the date the Investors receive the notice referred to in clause (i) and shall
            end on and include the later of the date the Investors receive the notice referred to
            in clause (ii) and the date referred to in such notice. The provisions of Section 3(g)
            hereof shall not be applicable during the period of any Allowable Grace Period. Upon
            expiration of the Grace Period, the Company shall again be bound by the first sentence
            of Section 3(f) with respect to the information giving rise thereto unless such
            material, non-public information is no longer applicable. Notwithstanding anything to
            the contrary, the Company shall cause its transfer agent to deliver unlegended shares
            of Common Stock to a transferee of an Investor in accordance with the terms of the
            Securities Purchase Agreement in connection with any sale of Registrable Securities
            with respect to which an Investor has entered into a contract for sale, prior to the
            Investor’s receipt of the notice of a Grace Period and for which the Investor has
            not yet settled.

            

            
                s.       Neither
            the Company nor any Subsidiary or affiliate thereof shall identify any Buyer as an
            underwriter in any public disclosure or filing with the SEC or any Principal Market (as
            defined in the Securities Purchase Agreement) or Eligible Market and any Buyer being
            deemed an underwriter by the SEC shall not relieve the Company of any obligations it
            has under this Agreement or any other Transaction Document (as defined in the
            Securities Purchase Agreement); provided, however, that the foregoing
            shall not prohibit the Company from including the disclosure found in the “Plan
            of Distribution” section attached hereto as Exhibit B in the Registration
            Statement.

            

            12

            
            
            

            
            

            

            
                4.       
            Obligations of the Investors.

            

            
                a.       At
            least five (5) Business Days prior to the first anticipated filing date of a
            Registration Statement, the Company shall notify each Investor in writing of the
            information the Company requires from each such Investor if such Investor elects to
            have any of such Investor’s Registrable Securities included in such Registration
            Statement. It shall be a condition precedent to the obligations of the Company to
            complete the registration pursuant to this Agreement with respect to the Registrable
            Securities of a particular Investor that such Investor shall furnish to the Company
            such information regarding itself, the Registrable Securities held by it and the
            intended method of disposition of the Registrable Securities held by it, as shall be
            reasonably required to effect and maintain the effectiveness of the registration of
            such Registrable Securities and shall execute such documents in connection with such
            registration as the Company may reasonably request.

            

            
                b.       Each
            Investor, by such Investor’s acceptance of the Registrable Securities, agrees to
            cooperate with the Company as reasonably requested by the Company in connection with
            the preparation and filing of any Registration Statement hereunder, unless such
            Investor has notified the Company in writing of such Investor’s election to
            exclude all of such Investor’s Registrable Securities from such Registration
            Statement.

            

            
                c.       Each
            Investor agrees that, upon receipt of any notice from the Company of the happening of
            any event of the kind described in Section 3(g) or the first sentence of 3(f), such
            Investor will immediately discontinue disposition of Registrable Securities pursuant to
            any Registration Statement(s) covering such Registrable Securities until such
            Investor’s receipt of the copies of the supplemented or amended prospectus
            contemplated by Section 3(g) or the first sentence of 3(f) or receipt of notice that no
            supplement or amendment is required. Notwithstanding anything to the contrary, the
            Company shall cause its transfer agent to deliver unlegended shares of Common Stock to
            a transferee of an Investor in accordance with the terms of the Securities Purchase
            Agreement in connection with any sale of Registrable Securities with respect to which
            an Investor has entered into a contract for sale prior to the Investor’s receipt
            of a notice from the Company of the happening of any event of the kind described in
            Section 3(g) or the first sentence of 3(f) and for which the Investor has not yet
            settled.

            

            
                d.       Each
            Investor covenants and agrees that it will comply with the prospectus delivery
            requirements of the 1933 Act as applicable to it or an exemption therefrom in
            connection with sales of Registrable Securities pursuant to the Registration
            Statement.

            

            
                5.       
            Expenses of Registration.

            

            
                    All
            reasonable expenses, other than underwriting discounts and commissions, incurred in
            connection with registrations, filings or qualifications pursuant to Sections 2 and 3,
            including, without limitation, all registration, listing and qualifications fees,
            printers and accounting fees, and fees and disbursements of counsel for the Company
            shall be paid by the Company. The Company shall also reimburse the Investors for the
            fees and disbursements of Legal Counsel in connection with registration, filing or
            qualification pursuant to Sections 2 and 3 of this Agreement which amount shall be
            limited to $20,000 for each such registration, filing or qualification.

            

            13

            
            
            

            
            

            

            6.
            Indemnification.

            

            
                    In
            the event any Registrable Securities are included in a Registration Statement under
            this Agreement:

            

            
                a.       To
            the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold
            harmless and defend each Investor, the directors, officers, members, partners,
            employees, agents, representatives of, and each Person, if any, who controls any
            Investor within the meaning of the 1933 Act or the 1934 Act (each, an
            “Indemnified Person”), against any losses, claims, damages,
            liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’
            fees, amounts paid in settlement or expenses, joint or several, (collectively,
            “Claims”) incurred in investigating, preparing or defending any
            action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
            foregoing by or before any court or governmental, administrative or other regulatory
            agency, body or the SEC, whether pending or threatened, whether or not an indemnified
            party is or may be a party thereto (“Indemnified Damages”), to which
            any of them may become subject insofar as such Claims (or actions or proceedings,
            whether commenced or threatened, in respect thereof) arise out of or are based upon:
            (i) any untrue statement or alleged untrue statement of a material fact in a
            Registration Statement or any post-effective amendment thereto or in any filing made in
            connection with the qualification of the offering under the securities or other
            “blue sky” laws of any jurisdiction in which Registrable Securities are
            offered (“Blue Sky Filing”), or the omission or alleged omission to
            state a material fact required to be stated therein or necessary to make the statements
            therein not misleading, (ii) any untrue statement or alleged untrue statement of a
            material fact contained in any preliminary prospectus if used prior to the effective
            date of such Registration Statement, or contained in the final prospectus (as amended
            or supplemented, if the Company files any amendment thereof or supplement thereto with
            the SEC) or the omission or alleged omission to state therein any material fact
            necessary to make the statements made therein, in light of the circumstances under
            which the statements therein were made, not misleading, (iii) any violation or alleged
            violation by the Company of the 1933 Act, the 1934 Act, any other law, including,
            without limitation, any state securities law, or any rule or regulation thereunder
            relating to the offer or sale of the Registrable Securities pursuant to a Registration
            Statement or (iv) any violation of this Agreement (the matters in the foregoing clauses
            (i) through (iv) being, collectively, “Violations”). Subject to
            Section 6(c), the Company shall reimburse the Indemnified Persons, promptly as such
            expenses are incurred and are due and payable, for any legal fees or other reasonable
            expenses incurred by them in connection with investigating or defending any such Claim.
            Notwithstanding anything to the contrary contained herein, the indemnification
            agreement contained in this Section 6(a): (i) shall not apply to a Claim by an
            Indemnified Person arising out of or based upon a Violation which occurs in reliance
            upon and in conformity with information furnished in writing to the Company by such
            Indemnified Person for such Indemnified Person expressly for use in connection with the
            preparation of the Registration Statement or any such amendment thereof or supplement
            thereto, if such prospectus was timely made available by the Company pursuant to
            Section 3(d); and (ii) shall not apply to amounts paid in settlement of any Claim if
            such settlement is effected without the prior written consent of the Company, which
            consent shall not be unreasonably withheld or delayed. Such indemnity shall remain in
            full force and effect regardless of any investigation made by or on behalf of the
            Indemnified Person and shall survive the transfer of the Registrable Securities by the
            Investors pursuant to Section 9.

            

            14

            
            
            

            
            

            

            
                b.       In
            connection with any Registration Statement in which an Investor is participating, each
            such Investor agrees to severally and not jointly indemnify, hold harmless and defend,
            to the same extent and in the same manner as is set forth in Section 6(a), the Company,
            each of its directors, each of its officers who signs the Registration Statement and
            each Person, if any, who controls the Company within the meaning of the 1933 Act or the
            1934 Act (each, an “Indemnified Party”), against any Claim or
            Indemnified Damages to which any of them may become subject, under the 1933 Act, the
            1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are
            based upon any Violation, in each case to the extent, and only to the extent, that such
            Violation occurs in reliance upon and in conformity with written information furnished
            to the Company by such Investor expressly for use in connection with such Registration
            Statement; and, subject to Section 6(c), such Investor shall reimburse the Indemnified
            Party, promptly as such expenses are incurred and are due and payable, for any legal or
            other expenses reasonably incurred by an Indemnified Party in connection with
            investigating or defending any such Claim; provided, however, that the indemnity
            agreement contained in this Section 6(b) and the agreement with respect to contribution
            contained in Section 7 shall not apply to amounts paid in settlement of any Claim if
            such settlement is effected without the prior written consent of such Investor, which
            consent shall not be unreasonably withheld or delayed; provided, further, however, that
            the Investor shall be liable under this Section 6(b) for only that amount of a Claim or
            Indemnified Damages as does not exceed the net proceeds to such Investor as a result of
            the sale of Registrable Securities pursuant to such Registration Statement. Such
            indemnity shall remain in full force and effect regardless of any investigation made by
            or on behalf of such Indemnified Party and shall survive the transfer of the
            Registrable Securities by the Investors pursuant to Section 9.

            

            
                c.       Promptly
            after receipt by an Indemnified Person or Indemnified Party under this Section 6 of
            notice of the commencement of any action or proceeding (including any governmental
            action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party
            shall, if a Claim in respect thereof is to be made against any indemnifying party under
            this Section 6, deliver to the indemnifying party a written notice of the commencement
            thereof, and the indemnifying party shall have the right to participate in, and, to the
            extent the indemnifying party so desires, jointly with any other indemnifying party
            similarly noticed, to assume control of the defense thereof with counsel mutually
            satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
            Party, as the case may be; provided, however, that an Indemnified Person or Indemnified
            Party shall have the right to retain its own counsel with the fees and expenses of not
            more than one counsel for all such Indemnified Person or Indemnified Party to be paid
            by the indemnifying party, if, in the reasonable opinion of counsel retained by the
            indemnifying party, the representation by such counsel of the Indemnified Person or
            Indemnified Party and the indemnifying party would be inappropriate due to actual or
            potential differing interests between such Indemnified Person or Indemnified Party and
            any other party represented by such counsel in such proceeding. In the case of an
            Indemnified Person, legal counsel referred to in the immediately preceding sentence
            shall be selected by the Investors holding at least a majorityin interest of the
            Registrable Securities included in the Registration Statement to which the Claim
            relates. The Indemnified Party or Indemnified Person shall cooperate reasonably with
            the indemnifying party in connection with any negotiation or defense of any such action
            or Claim by the indemnifying party and shall furnish to the indemnifying party all
            information reasonably available to the Indemnified Party or Indemnified Person which
            relates to such action or Claim. The indemnifying party shall keep the Indemnified
            Party or Indemnified Person fully apprised at all times as to the status of the defense
            or any settlement negotiations with respect thereto. No indemnifying party shall be
            liable for any settlement of any action, claim or proceeding effected without its prior
            written consent, provided, however, that the indemnifying party shall not unreasonably
            withhold, delay or condition its consent. No indemnifying party shall, without the
            prior written consent of the Indemnified Party or Indemnified Person, consent to entry
            of any judgment or enter into any settlement or other compromise which does not include
            as an unconditional term thereof the giving by the claimant or plaintiff to such
            Indemnified Party or Indemnified Person of a release from all liability in respect to
            such Claim or litigation, and such settlement shall not include any admission as to
            fault on the part of the Indemnified Party. Following indemnification as provided for
            hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified
            Party or Indemnified Person with respect to all third parties, firms or corporations
            relating to the matter for which indemnification has been made. The failure to deliver
            written notice to the indemnifying party within a reasonable time of the commencement
            of any such action shall not relieve such indemnifying party of any liability to the
            Indemnified Person or Indemnified Party under this Section 6, except to the extent that
            the indemnifying party is prejudiced in its ability to defend such action.

            

            15

            
            
            

            
            

            

            
                d.       The
            indemnification required by this Section 6 shall be made by periodic payments of the
            amount thereof during the course of the investigation or defense, as and when bills are
            received or Indemnified Damages are incurred.

            

            
                e.       The
            indemnity agreements contained herein shall be in addition to (i) any cause of action
            or similar right of the Indemnified Party or Indemnified Person against the
            indemnifying party or others, and (ii) any liabilities the indemnifying party may be
            subject to pursuant to the law.

            

            
                7.       
            Contribution.

            

            
                    To
            the extent any indemnification by an indemnifying party is prohibited or limited by
            law, the indemnifying party agrees to make the maximum contribution with respect to any
            amounts for which it would otherwise be liable under Section 6 to the fullest extent
            permitted by law; provided, however, that: (i) no Person involved in the sale of
            Registrable Securities which Person is guilty of fraudulent misrepresentation (within
            the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be
            entitled to contribution from any Person involved in such sale of Registrable
            Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by
            any seller of Registrable Securities shall be limited in amount to the amount of net
            proceeds received by such seller from the sale of such Registrable Securities pursuant
            to such Registration Statement.

            

            16

            
            
            

            
            

            

            
                8.           
            Reports Under the 1934 Act.

            

            
                    With
            a view to making available to the Investors the benefits of Rule 144 promulgated under
            the 1933 Act or any other similar rule or regulation of the SEC that may at any time
            permit the Investors to sell securities of the Company to the public without
            registration (“Rule 144”), the Company agrees to:

            

            
                a.       make
            and keep public information available, as those terms are understood and defined in
            Rule 144;

            

            
                b.       file
            with the SEC in a timely manner all reports and other documents required of the Company
            under the 1933 Act and the 1934 Act so long as the Company remains subject to such
            requirements and the filing of such reports and other documents is required for the
            applicable provisions of Rule 144; and

            

            
                c.       furnish
            to each Investor so long as such Investor owns Registrable Securities, promptly upon
            request, (i) a written statement by the Company, if true, that it has complied with the
            reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the
            most recent annual or quarterly report of the Company and such other reports and
            documents so filed by the Company, and (iii) such other information as may be
            reasonably requested to permit the Investors to sell such securities pursuant to Rule
            144 without registration.

            

            
                9.       
            Assignment of Registration Rights.

            

            
                    The
                   rights under this Agreement shall be
            automatically assignable by the Investors to any transferee of all or any portion of
            such Investor’s Registrable Securities if: (i) the Investor agrees in writing
            with the transferee or assignee to assign such rights, and a copy of such agreement is
            furnished to the Company within a reasonable time after such assignment; (ii) the
            Company is, within a reasonable time after such transfer or assignment, furnished with
            written notice of (a) the name and address of such transferee or assignee, and (b) the
            securities with respect to which such registration rights are being transferred or
            assigned; (iii) immediately following such transfer or assignment the further
            disposition of such securities by the transferee or assignee is restricted under the
            1933 Act or applicable state securities laws; (iv) at or before the time the Company
            receives the written notice contemplated by clause (ii) of this sentence the transferee
            or assignee agrees in writing with the Company to be bound by all of the provisions
            contained herein; and (v) such transfer shall have been made in accordance with the
            applicable requirements of the Securities Purchase Agreement.

            

            
                10.           
            Amendment of Registration Rights.

            

            
                    Provisions
            of this Agreement may be amended and the observance thereof may be waived (either
            generally or in a particular instance and either retroactively or prospectively), only
            with the written consent of the Company and the Required Holders. Any amendment or
            waiver effected in accordance with this Section 10 shall be binding upon each Investor
            and the Company. No such amendment shall be effective to the extent that it applies to
            less than all of the holders of the Registrable Securities. No consideration shall be
            offered or paid to any Person to amend or consent to a waiver or modification of any
            provision of this Agreement unless the same consideration also is offered to all of the
            parties to this Agreement.

            

            17

            
            
            

            
            

            

            
                11.       
            Miscellaneous.

            

            
                a.       A
            Person is deemed to be a holder of Registrable Securities whenever such Person owns or
            is deemed to own of record such Registrable Securities. If the Company receives
            conflicting instructions, notices or elections from two or more Persons with respect to
            the same Registrable Securities, the Company shall act upon the basis of instructions,
            notice or election received from such record owner of such Registrable
            Securities.

            

            
                b.       Any
            notices, consents, waivers or other communications required or permitted to be given
            under the terms of this Agreement must be in writing and will be deemed to have been
            delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
            facsimile (provided confirmation of transmission is mechanically or electronically
            generated and kept on file by the sending party); or (iii) one Business Day after
            deposit with a nationally recognized overnight delivery service, in each case properly
            addressed to the party to receive the same. The addresses and facsimile numbers for
            such communications shall be:

            	
                    	
                    
	
                    	If to the
                    Company:

                    

                             Amish Naturals, Inc.

                             6399 State Route 83

                             Holmesville, Ohio
                    44633

                             Telephone: (330)
                    674-0998

                             Facsimile: (303)
                    279-2415

                             Attention: David Skinner,
                    Sr., President

                    

                    With a copy (for informational purposes only) to:

                    

                             Dennis Brovarone,
                    Esq.

                             Attorney at Law

                             18 Mountain Laurel
                    Drive

                             Littleton, Colorado
                    80127

                             Telephone: (303)
                    466-4092

                             Facsimile: (303)
                    466-4826 

            

            

            18

            
            
            

            
            

            	
                    	
                    
	
                    	If to the
                    Transfer Agent:

                    

                             Signature Stock Transfer,
                    Inc.

                             2301 Ohio Drive - Suite
                    100

                             Plano, Texas 75093

                             Telephone: (972)
                    612-4120

                             Facsimile: (972)
                    612-4122

                             Attention: Jason M.
                    Bogutski - President

                    

                    

                    If to Legal Counsel:

                    

                             Schulte Roth & Zabel
                    LLP

                             919 Third Avenue

                             New York, New York
                    10022

                             Telephone: (212)
                    756-2000

                             Facsimile: (212)
                    593-5955

                             Attention: Eleazer N.
                    Klein, Esq. 

            

            

            If to a Buyer, to its address
            and facsimile number set forth on the Schedule of Buyers attached hereto, with copies
            to such Buyer’s representatives as set forth on the Schedule of Buyers, or to
            such other address and/or facsimile number and/or to the attention of such other Person
            as the recipient party has specified by written notice given to each other party five
            (5) days prior to the effectiveness of such change. Written confirmation of receipt (A)
            given by the recipient of such notice, consent, waiver or other communication, (B)
            mechanically or electronically generated by the sender’s facsimile machine
            containing the time, date, recipient facsimile number and an image of the first page of
            such transmission or (C) provided by a courier or overnight courier service shall be
            rebuttable evidence of personal service, receipt by facsimile or receipt from a
            nationally recognized overnight delivery service in accordance with clause (i), (ii) or
            (iii) above, respectively.

            

            
                c.       Failure
            of any party to exercise any right or remedy under this Agreement or otherwise, or
            delay by a party in exercising such right or remedy, shall not operate as a waiver
            thereof.

            

            
                d.       All
            questions concerning the construction, validity, enforcement and interpretation of this
            Agreement shall be governed by the internal laws of the State of New York, without
            giving effect to any choice of law or conflict of law provision or rule (whether of the
            State of New York or any other jurisdictions) that would cause the application of the
            laws of any jurisdictions other than the State of New York. Each party hereby
            irrevocably submits to the exclusive jurisdiction of the state and federal courts
            sitting in The City of New York, Borough of Manhattan, for the adjudication of any
            dispute hereunder or in connection herewith or with any transaction contemplated hereby
            or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
            suit, action or proceeding, any claim that it is not personally subject to the
            jurisdiction of any such court, that such suit, action or proceeding is brought in an
            inconvenient forum or that the venue of such suit, action or proceeding is improper.
            Each party hereby irrevocably waives personal service of process and consents to
            process being served in any such suit, action or proceeding by mailing a copy thereof
            to such party at the address for such notices to it under this Agreement and agrees
            that such service shall constitute good and sufficient service of process and notice
            thereof. Nothing contained herein shall be deemed to limit in any way any right to
            serve process in any manner permitted by law. If any provision of this Agreement shall
            be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
            shall not affect the validity or enforceability of the remainder of this Agreement in
            that jurisdiction or the validity or enforceability of any provision of this Agreement
            in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT
            MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
            DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR
            ANY TRANSACTION CONTEMPLATED HEREBY.

            

            19

            
            
            

            
            

            

            
                e.       This
            Agreement, the other Transaction Documents (as defined in the Securities Purchase
            Agreement) and the instruments referenced herein and therein constitute the entire
            agreement among the parties hereto with respect to the subject matter hereof and
            thereof. There are no restrictions, promises, warranties or undertakings, other than
            those set forth or referred to herein and therein. This Agreement, the other
            Transaction Documents and the instruments referenced herein and therein supersede all
            prior agreements and understandings among the parties hereto with respect to the
            subject matter hereof and thereof.

            

            
                f.       Subject
            to the requirements of Section 9, this Agreement shall inure to the benefit of and be
            binding upon the permitted successors and assigns of each of the parties
            hereto.

            

            
                g.       The
            headings in this Agreement are for convenience of reference only and shall not limit or
            otherwise affect the meaning hereof.

            

            
                h.       This
            Agreement may be executed in identical counterparts, each of which shall be deemed an
            original but all of which shall constitute one and the same agreement. This Agreement,
            once executed by a party, may be delivered to the other party hereto by facsimile
            transmission of a copy of this Agreement bearing the signature of the party so
            delivering this Agreement.

            

            
                i.       Each
            party shall do and perform, or cause to be done and performed, all such further acts
            and things, and shall execute and deliver all such other agreements, certificates,
            instruments and documents as any other party may reasonably request in order to carry
            out the intent and accomplish the purposes of this Agreement and the consummation of
            the transactions contemplated hereby.

            

            
                j.       All
            consents and other determinations required to be made by the Investors pursuant to this
            Agreement shall be made, unless otherwise specified in this Agreement, by the Required
            Holders.

            

            
                k.       The
            language used in this Agreement will be deemed to be the language chosen by the parties
            to express their mutual intent and no rules of strict construction will be applied
            against any party.

            

            
                l.       This
            Agreement is intended for the benefit of the parties hereto and their respective
            permitted successors and assigns, and is not for the benefit of, nor may any provision
            hereof be enforced by, any other Person.

            

            20

            
            
            

            
            

            

            
                m.       The
            obligations of each Investor hereunder are several and not joint with the obligations
            of any other Investor, and no provision of this Agreement is intended to confer any
            obligations on any Investor vis-à-vis any other Investor. Nothing contained
            herein, and no action taken by any Investor pursuant hereto, shall be deemed to
            constitute the Investors as a partnership, an association, a joint venture or any other
            kind of entity, or create a presumption that the Investors are in any way acting in
            concert or as a group with respect to such obligations or the transactions contemplated
            herein.

            

            

            

             * * * * *

            

            [Signature Page
            Follows]

            

            

            

            

            

            

            

            

            

            21

            
            

            
            

            

            
                    
            IN WITNESS WHEREOF, each Buyer and the Company have caused their respective
            signature page to this Registration Rights Agreement to be duly executed as of the date
            first written above.

            	
                    	
                    
	
                    	
                    COMPANY:

                    

                    AMISH NATURALS, INC.

                    

                    

                    

                    By: /s/TROY TRENENGAN

                           Name: Troy Trenengan

                           Title: Executive Vice
                    -President 

            

            

            

            

            

            

            

            

            22

            
            

            
            

            

            
                    
            IN WITNESS WHEREOF, each Buyer and the Company have caused their respective
            signature page to this Registration Rights Agreement to be duly executed as of the date
            first written above.

            	
                    	
                    
	
                    	BUYER:

                    

                    CASTLERIGG MASTER INVESTMENTS LTD.

                    

                    BY: SANDELL ASSET MANAGEMENT CORP.

                    

                    

                    By: /s/ RICHARD GASHLER

                          Name: RICHARD GASHLER

                          Title: GENERAL COUNSEL 

            

            

            

            

            

            

            

            23

            
            

            
            

            

            SCHEDULE OF
            BUYERS

            	
                        Buyer
                        

                    	
                    	
                        Buyer Address

                        and Facsimile Number
                        

                    	
                    	
                        Buyer's
                        Representative's Address

                        and Facsimile Number
                        

                    
	Castlerigg
                    Master Investments Ltd. 	
                    	c/o Sandell
                    Asset Management

                    40 West 57th St

                    26th Floor

                    New York, NY 10019

                    Attention: Cem Hacioglu/Matthew Pliskin

                    Fax: 212-603-5710

                    Telephone: 212-603-5700 	
                    	Schulte
                    Roth & Zabel LLP

                    919 Third Avenue

                    New York, NY 10022

                    Attn: Eleazer Klein, Esq.

                    Facsimile: (212) 593-5955

                    Telephone: (212) 756-2000 

            

            

            

            

            

            

            
            

            
            

            

            EXHIBIT
            A

            

            FORM OF NOTICE
            OF EFFECTIVENESS

            OF REGISTRATION STATEMENT

            

            Signature Stock Transfer,
            Inc.

            2301 Ohio Drive - Suite 100

            Plano, Texas 75093

            Attention:      Jason M. Bogutski - President

            

            	
                      	Re:
                    	Amish
                    Naturals, Inc. 

            

            

            Ladies and Gentlemen:

            

            
                    [We
            are][I am] counsel to Amish Naturals, Inc., a Nevada corporation (the
            “Company”), and have represented the Company in connection with that
            certain Securities Purchase Agreement (the “Securities Purchase
            Agreement”) entered into by and among the Company and the buyers named
            therein (collectively, the “Holders”) pursuant to which the Company
            issued to the Holders senior secured convertible notes (the “Notes”)
            which shall be convertible into the Company’s common stock, par value $0.001 per
            share (the “Common Stock”) and four series of warrants exercisable
            for shares of Common Stock (the “Warrants”). Pursuant to the
            Securities Purchase Agreement, the Company also has entered into a Registration Rights
            Agreement with the Holders (the “Registration Rights Agreement”)
            pursuant to which the Company agreed, among other things, to register the Registrable
            Securities (as defined in the Registration Rights Agreement), including the shares of
            Common Stock issuable upon conversion of the Notes and the shares of Common Stock
            issuable upon exercise of the Warrants, under the Securities Act of 1933, as amended
            (the “1933 Act”). In connection with the Company’s obligations
            under the Registration Rights Agreement, on ____________ ___, 200_, the Company filed a
            Registration Statement on Form S-1 (File No. 333-_____________) (the
            “Registration Statement”) with the Securities and Exchange
            Commission (the “SEC”) relating to the Registrable Securities which
            names each of the Holders as a selling stockholder thereunder.

            

            
                    In
            connection with the foregoing, [we][I] advise you that a member of the SEC’s
            staff has advised [us][me] by telephone that the SEC has entered an order declaring the
            Registration Statement effective under the 1933 Act at [ENTER TIME OF
            EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and [we][I] have
            no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any
            stop order suspending its effectiveness has been issued or that any proceedings for
            that purpose are pending before, or threatened by, the SEC and the Registrable
            Securities are available for resale under the 1933 Act pursuant to the Registration
            Statement.

            
            
            

            
            

            

            
                    This
            letter shall serve as our standing instruction to you that the shares of Common Stock
            are freely transferable by the Holders pursuant to the Registration Statement. You need
            not require further letters from us to effect any future legend-free issuance or
            reissuance of shares of Common Stock to the Holders as contemplated by the
            Company’s Irrevocable Transfer Agent Instructions dated August __,
            2007.

            	
                    	
                    
	
                    	Very truly
                    yours,

                    

                    [ISSUER'S COUNSEL]

                    

                    

                    By:_____________________ 

            

            	CC:
                    	[LIST
                    NAMES OF HOLDERS] 

            

            
            

            
            

            

            EXHIBIT
            B

            

            SELLING
            STOCKHOLDERS

            

            
                    The
            shares of common stock being offered by the selling stockholders are issuable upon
            conversion of the convertible notes, upon exercise of the warrants and in payment of
            interest on the convertible notes. For additional information regarding the issuance of
            those convertible notes and warrants, see “Private Placement of Convertible Notes
            and Warrants” above. We are registering the shares of common stock in order to
            permit the selling stockholders to offer the shares for resale from time to time.
            Except for the ownership of the convertible notes and the warrants issued pursuant to
            the Securities Purchase Agreement, the selling stockholders have not had any material
            relationship with us within the past three years.

            

            
                    The
            table below lists the selling stockholders and other information regarding the
            beneficial ownership of the shares of common stock by each of the selling stockholders.
            The second column lists the number of shares of common stock beneficially owned by each
            selling stockholder, based on its ownership of the convertible notes and warrants, as
            of ________, 2007, assuming conversion of all convertible notes and exercise of the
            warrants held by the selling stockholders on that date, without regard to any
            limitations on conversions or exercise.

            

            
                    The
            third column lists the shares of common stock being offered by this prospectus by the
            selling stockholders.

            

            
                    In
            accordance with the terms of a registration rights agreement with the selling
            stockholders, this prospectus generally covers the resale of at least 130% of the sum
            of (i) the number of shares of common stock issuable upon conversion of the convertible
            notes as of the Trading Day immediately preceding the date the registration statement
            is initially filed with the SEC, (ii) as Interest Shares pursuant to the terms of the
            Notes as of the Trading Day immediately preceding the date the registration statement
            is initially filed with the SEC, and (iii) the number of shares of common stock
            issuable upon exercise of the related warrants as of the Trading Day immediately
            preceding the date the registration statement is initially filed with the SEC.
            Because the conversion price of the convertible notes and the exercise price of the
            warrants may be adjusted, the number of shares that will actually be issued may be more
            or less than the number of shares being offered by this prospectus. The fourth column
            assumes the sale of all of the shares offered by the selling stockholders pursuant to
            this prospectus.

            

            
                    Under
            the terms of the convertible notes and the warrants, a selling stockholder may not
            convert the convertible notes or exercise the warrants to the extent such conversion or
            exercise would cause such selling stockholder, together with its affiliates, to
            beneficially own a number of shares of common stock which would exceed [4.99]% of our
            then outstanding shares of common stock following such conversion or exercise,
            excluding for purposes of such determination shares of common stock issuable upon
            conversion of the convertible notes which have not been converted and upon exercise of
            the warrants which have not been exercised. The number of shares in the second column
            does not reflect this limitation. The selling stockholders may sell all, some or none
            of their shares in this offering. See “Plan of Distribution.”

            
            

            
            

            	
                        Name of Selling
                        Stockholder
                        

                    	
                    	
                        Number of Shares of

                        Common Stock Owned Prior

                        to Offering
                        

                    	
                    	
                        Maximum Number of
                        Shares

                        of Common Stock to be

                        Sold Pursuant to this

                        Prospectus
                        

                    	
                    	
                        Number of Shares of

                        Common Stock Owned

                        After Offering
                        

                    
	Castlerigg
                    Master Investments Ltd. (1) 	
                      	
                      	
                      	
                      	
                      	
                    0

            

            

            

            (1)    
            Sandell Asset Management Corp. is the investment manager of Castlerigg Master
            Investment Ltd. (“Castlerigg”) and has shared voting and dispositive power
            over the securities owned by Castlerigg. Sandell Asset Management Corp. and Thomas E.
            Sandell, its sole shareholder, disclaim beneficial ownership of the securities owned by
            Castlerigg.

            
            

            
            

            

            PLAN OF
            DISTRIBUTION

            

            
                    We
            are registering the shares of common stock issuable upon conversion of the convertible
            notes and upon exercise of the warrants and as interest on the convertible notes to
            permit the resale of these shares of common stock by the holders of the convertible
            notes and warrants from time to time after the date of this prospectus. We will not
            receive any of the proceeds from the sale by the selling stockholders of the shares of
            common stock. We will bear all fees and expenses incident to our obligation to register
            the shares of common stock.

            

            
                    The
            selling stockholders may sell all or a portion of the shares of common stock
            beneficially owned by them and offered hereby from time to time directly or through one
            or more underwriters, broker-dealers or agents. If the shares of common stock are sold
            through underwriters or broker-dealers, the selling stockholders will be responsible
            for underwriting discounts or commissions or agent’s commissions. The shares of
            common stock may be sold in one or more transactions at fixed prices, at prevailing
            market prices at the time of the sale, at varying prices determined at the time of
            sale, or at negotiated prices. These sales may be effected in transactions, which may
            involve crosses or block transactions,

            

            	
                      	
                    • 	on any
                    national securities exchange or quotation service on which the securities may
                    be listed or quoted at the time of sale; 

            

            

            	
                      	
                    • 	in the
                    over-the-counter market; 

            

            

            	
                      	
                    • 	in
                    transactions otherwise than on these exchanges or systems or in the
                    over-the-counter market; 

            

            

            	
                      	
                    • 	through the
                    writing of options, whether such options are listed on an options exchange or
                    otherwise; 

            

            

            	
                      	
                    • 	ordinary
                    brokerage transactions and transactions in which the broker-dealer solicits
                    purchasers; 

            

            

            	
                      	
                    • 	block
                    trades in which the broker-dealer will attempt to sell the shares as agent but
                    may position and resell a portion of the block as principal to facilitate the
                    transaction; 

            

            

            	
                      	
                    • 	purchases
                    by a broker-dealer as principal and resale by the broker-dealer for its
                    account; 

            

            

            	
                      	
                    • 	an exchange
                    distribution in accordance with the rules of the applicable exchange;
                    

            

            

            	
                      	
                    • 	privately
                    negotiated transactions; 

            

            

            	
                      	
                    • 	short
                    sales; 

            

            

            	
                      	
                    • 	sales
                    pursuant to Rule 144; 

            

            
            
            

            
            

            

            	
                      	
                    • 	
                    broker-dealers may agree
                    with the selling securityholders to sell a specified number of such shares at a
                    stipulated price per share; 

            

            

            	
                      	
                    • 	a
                    combination of any such methods of sale; and 

            

            

            	
                      	
                    • 	any other
                    method permitted pursuant to applicable law. 

            

            

            
                    If
            the selling stockholders effect such transactions by selling shares of common stock to
            or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or
            agents may receive commissions in the form of discounts, concessions or commissions
            from the selling stockholders or commissions from purchasers of the shares of common
            stock for whom they may act as agent or to whom they may sell as principal (which
            discounts, concessions or commissions as to particular underwriters, broker-dealers or
            agents may be in excess of those customary in the types of transactions involved). In
            connection with sales of the shares of common stock or otherwise, the selling
            stockholders may enter into hedging transactions with broker-dealers, which may in turn
            engage in short sales of the shares of common stock in the course of hedging in
            positions they assume. The selling stockholders may also sell shares of common stock
            short and deliver shares of common stock covered by this prospectus to close out short
            positions and to return borrowed shares in connection with such short sales. The
            selling stockholders may also loan or pledge shares of common stock to broker-dealers
            that in turn may sell such shares.

            

            
                    The
            selling stockholders may pledge or grant a security interest in some or all of the
            convertible notes, warrants or shares of common stock owned by them and, if they
            default in the performance of their secured obligations, the pledgees or secured
            parties may offer and sell the shares of common stock from time to time pursuant to
            this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other
            applicable provision of the Securities Act of 1933, as amended, amending, if necessary,
            the list of selling stockholders to include the pledgee, transferee or other successors
            in interest as selling stockholders under this prospectus. The selling stockholders
            also may transfer and donate the shares of common stock in other circumstances in which
            case the transferees, donees, pledgees or other successors in interest will be the
            selling beneficial owners for purposes of this prospectus.

            

            
                    The
            selling stockholders and any broker-dealer participating in the distribution of the
            shares of common stock may be deemed to be “underwriters” within the
            meaning of the Securities Act, and any commission paid, or any discounts or concessions
            allowed to, any such broker-dealer may be deemed to be underwriting commissions or
            discounts under the Securities Act. At the time a particular offering of the shares of
            common stock is made, a prospectus supplement, if required, will be distributed which
            will set forth the aggregate amount of shares of common stock being offered and the
            terms of the offering, including the name or names of any broker-dealers or agents, any
            discounts, commissions and other terms constituting compensation from the selling
            stockholders and any discounts, commissions or concessions allowed or reallowed or paid
            to broker-dealers.

            

            
                    Under
            the securities laws of some states, the shares of common stock may be sold in such
            states only through registered or licensed brokers or dealers. In addition, in some
            states the shares of common stock may not be sold unless such shares have been
            registered or qualified for sale in such state or an exemption from registration or
            qualification is available and is complied with.

            
            
            

            
            

            

            
                    There
            can be no assurance that any selling stockholder will sell any or all of the shares of
            common stock registered pursuant to the registration statement, of which this
            prospectus forms a part.

            

            
                    The
            selling stockholders and any other person participating in such distribution will be
            subject to applicable provisions of the Securities Exchange Act of 1934, as amended,
            and the rules and regulations thereunder, including, without limitation, Regulation M
            of the Exchange Act, which may limit the timing of purchases and sales of any of the
            shares of common stock by the selling stockholders and any other participating person.
            Regulation M may also restrict the ability of any person engaged in the distribution of
            the shares of common stock to engage in market-making activities with respect to the
            shares of common stock. All of the foregoing may affect the marketability of the shares
            of common stock and the ability of any person or entity to engage in market-making
            activities with respect to the shares of common stock.

            

            
                    We
            will pay all expenses of the registration of the shares of common stock pursuant to the
            registration rights agreement, estimated to be $[     ] in
            total, including, without limitation, Securities and Exchange Commission filing fees
            and expenses of compliance with state securities or “blue sky” laws;
            provided, however, that a selling stockholder will pay all underwriting discounts and
            selling commissions, if any. We will indemnify the selling stockholders against
            liabilities, including some liabilities under the Securities Act, in accordance with
            the registration rights agreements, or the selling stockholders will be entitled to
            contribution. We may be indemnified by the selling stockholders against civil
            liabilities, including liabilities under the Securities Act, that may arise from any
            written information furnished to us by the selling stockholder specifically for use in
            this prospectus, in accordance with the related registration rights agreement, or we
            may be entitled to contribution.

            

            
                    Once
            sold under the registration statement, of which this prospectus forms a part, the
            shares of common stock will be freely tradable in the hands of persons other than our
            affiliates.Exhibit 10.13 

            

            [FORM OF SENIOR
            SECURED CONVERTIBLE NOTE]

            

            NEITHER THE ISSUANCE AND SALE
            OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE
            SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
            AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR
            SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
            STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN
            OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
            UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
            NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA
            FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.
            ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE, INCLUDING
            SECTIONS 3(c)(iii) AND 19(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND,
            ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE
            AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS
            NOTE.

            

            AMISH NATURALS
            INC.

            

            SENIOR SECURED
            CONVERTIBLE NOTE

            	
                    	
                    
	Issuance
                    Date: September [__], 2007 	
                     Original Principal
                    Amount: U.S. $6,000,000 

            

            
                    
            FOR VALUE RECEIVED, Amish Naturals Inc., a Nevada corporation (the
            “Company”), hereby promises to pay to the order of CASTLERIGG MASTER
            INVESTMENTS LTD. or registered assigns (“Holder”) the amount set out
            above as the Original Principal Amount (as reduced pursuant to the terms hereof
            pursuant to redemption, conversion or otherwise, the “Principal”)
            when due, whether upon the Maturity Date (as defined below), acceleration, redemption
            or otherwise (in each case in accordance with the terms hereof) and to pay interest
            (“Interest”) on any outstanding Principal at the applicable Interest
            Rate, from the date set out above as the Issuance Date (the “Issuance
            Date”) until the same becomes due and payable, whether upon an Interest
            Date (as defined below) or the Maturity Date, acceleration, conversion, redemption or
            otherwise (in each case in accordance with the terms hereof). This Senior Secured
            Convertible Note (including all Senior Secured Convertible Notes issued in exchange,
            transfer or replacement hereof, this “Note”) is one of an issue of
            Senior Secured Convertible Notes issued pursuant to the Securities Purchase Agreement
            (as defined below) on the Closing Date (collectively, the “Notes”
            and such other Senior Secured Convertible Notes, the “Other
            Notes”). Certain capitalized terms used herein are defined in Section
            29.

            
            

            

             

             

            

            
                (1)       
            PAYMENTS OF PRINCIPAL. On the Maturity Date, the Company shall pay to the Holder an
            amount in cash representing all outstanding Principal, accrued and unpaid Interest and
            accrued and unpaid Late Charges, if any, on such Principal and Interest. The
            “MaturityDate” shall be September [__], 2010, as may be
            extended at the option of the Holder (i) in the event that, and for so long as, an
            Event of Default (as defined in Section 4(a)) shall have occurred and be continuing on
            the Maturity Date (as may be extended pursuant to this Section 1) or any event that
            shall have occurred and be continuing that with the passage of time and the failure to
            cure would result in an Event of Default and (ii) through the date that is ten (10)
            Business Days after the consummation of a Change of Control in the event that a Change
            of Control is publicly announced or a Change of Control Notice (as defined in Section
            5(b)) is delivered prior to the Maturity Date. Other than as specifically permitted by
            this Note, the Company may not prepay any portion of the outstanding Principal, accrued
            and unpaid Interest or accrued and unpaid Late Charges on Principal and Interest, if
            any. Notwithstanding any provision of this Section 1 to the contrary, the Holder may,
            at its option and in its sole discretion, deliver a written notice to the Company at
            least two (2) days prior to the Maturity Date electing to have the payment of all or
            any portion of the Principal and Interest payable on the Maturity Date deferred (such
            amount deferred, the “Deferral Amount”) up to a date that is two (2)
            years after the Maturity Date, which date shall thereafter be the “Maturity
            Date” for all purposes hereunder. Any notice delivered by the Holder pursuant to
            this Section 1 shall set forth (i) the Deferral Amount and (ii) the date that such
            Deferral Amount shall now be payable.

            

            
                (2)       
            INTEREST; INTEREST RATE. (a) Interest on this Note shall commence accruing on the
            Issuance Date and shall be computed on the basis of a 360-day year comprised of twelve
            (12) thirty (30) day months and shall be payable in arrears for each Calendar Quarter
            on the first day of the succeeding Calendar Quarter during the period beginning on the
            Issuance Date and ending on, and including, the Maturity Date (each, an
            “InterestDate”) with the first Interest Date being October 1,
            2007. Interest shall be payable on each Interest Date, to the record holder of this
            Note on the applicable Interest Date, in shares of Common Stock (“Interest
            Shares”) so long as there has been no Equity Conditions Failure; provided
            however, that the Company may, at its option following notice to the Holder, pay
            Interest on any Interest Date in cash (“Cash Interest”) or in a
            combination of Cash Interest and Interest Shares. The Company shall deliver a written
            notice (each, an “Interest Election Notice”) to each holder of the
            Notes on or prior to the Interest Notice Due Date (the date such notice is delivered to
            all of the holders, the “Interest Notice Date”) which notice (1)
            either (A) confirms that Interest to be paid on such Interest Date shall be paid
            entirely in Interest Shares or (B) elects to pay Interest as Cash Interest or a
            combination of Cash Interest and Interest Shares and specifies the amount of Interest
            that shall be paid as Cash Interest and the amount of Interest, if any, that shall be
            paid in Interest Shares and (2) certifies that there has been no Equity Conditions
            Failure; provided, however, that the Company shall not be entitled to pay any portion
            of Interest on an Interest Date in Interest Shares in excess of the Holder Pro Rata
            Amount of the applicable Volume Limitation. If any portion of Interest for a particular
            Interest Date shall be paid in Interest Shares, then the Company shall pay to the
            Holder, in accordance with Section 2(b), a number of shares of Common Stock equal to
            (x) the amount of Interest payable on the applicable Interest Date in Interest Shares
            divided by (y) the applicable Interest Conversion Price. Interest to be paid on an
            Interest Date in Interest Shares shall be paid in a number of fully paid and
            nonassessable shares of Common Stock (rounded to the nearest whole share). If the
            Equity Conditions are not satisfied as of the Interest Notice Date, then unless the
            Company has elected to pay such Interest in cash, the Interest Notice shall indicate
            that unless the Holder waives the Equity Conditions, the Interest shall be paid in
            cash. If the Equity Conditions were satisfied as of the Interest Notice Date but the
            Equity Conditions are no longer satisfied at any time prior to the Interest Date, the
            Company shall provide the Holder a subsequent notice to that effect indicating that
            unless the Holder waives the Equity Conditions, the Interest shall be paid in
            cash.

            

            -2-

            
            

            

             

            

                
                      (b)       When
            any Interest Shares are to be paid on an Interest Date, the Company shall (i) (A)
            provided that the Company’s transfer agent (the “Transfer
            Agent”) is participating in the Depository Trust Company
            (“DTC”) Fast Automated Securities Transfer Program and such action
            is not prohibited by applicable law or regulation or any applicable policy of DTC,
            credit such aggregate number of Interest Shares to which the Holder shall be entitled
            to the Holder’s or its designee’s balance account with DTC through its
            Deposit Withdrawal Agent Commission system, or (B) if the foregoing shall not apply,
            issue and deliver on the applicable Interest Date, to the address set forth in the
            register maintained by the Company for such purpose pursuant to the Securities Purchase
            Agreement or to such address as specified by the Holder in writing to the Company at
            least two (2) Business Days prior to the applicable Interest Date, a certificate,
            registered in the name of the Holder or its designee, for the number of Interest Shares
            to which the Holder shall be entitled and (ii) with respect to each Interest Date, pay
            to the Holder, in cash by wire transfer of immediately available funds, the amount of
            any Cash Interest. Notwithstanding the foregoing, the Company shall not be entitled to
            pay Interest in Interest Shares and shall be required to pay such Interest in cash as
            Cash Interest on the applicable Interest Date if, unless waived in writing by the
            Holder, there has been an Equity Conditions Failure. If an Event of Default or Equity
            Conditions Failure occurs during the Interest Measuring Period, then on the Interest
            Date, at the Holder’s option, the Holder may require the Company to pay all or
            any specified portion of the Interest due on the applicable Interest Date as Cash
            Interest.

            

                
                      (c)       Prior
            to the payment of Interest on an Interest Date, Interest on this Note shall accrue at
            the Interest Rate and be payable by way of inclusion of the Interest in the Conversion
            Amount in accordance with Section 3(b)(i). From and after the occurrence and during the
            continuance of an Event of Default, the Interest Rate shall be increased to fifteen
            percent (15.0%) per annum. In the event that such Event of Default is subsequently
            cured, the adjustment referred to in the preceding sentence shall cease to be effective
            as of the date of such cure; provided that the Interest as calculated and unpaid at
            such increased rate during the continuance of such Event of Default shall continue to
            apply to the extent relating to the days after the occurrence of such Event of Default
            through and including the date of cure of such Event of Default. The Company shall pay
            any and all taxes that may be payable with respect to the issuance and delivery of
            Interest Shares.

            

            -3-

            
            

            

            
                (3)       
            CONVERSION OF NOTES. This Note shall be convertible into shares of the
            Company’s common stock, par value $0.001 per share (the “Common
            Stock”), on the terms and conditions set forth in this Section 3.

            

                
                      (a)       
            Conversion Right. Subject to the provisions of Section 3(d), at any time or times
            on or after the Issuance Date, the Holder shall be entitled to convert any portion of
            the outstanding and unpaid Conversion Amount (as defined below) into fully paid and
            nonassessable shares of Common Stock in accordance with Section 3(c), at the Conversion
            Rate (as defined below). The Company shall not issue any fraction of a share of Common
            Stock upon any conversion. If the issuance would result in the issuance of a fraction
            of a share of Common Stock, the Company shall round such fraction of a share of Common
            Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp
            and similar taxes that may be payable with respect to the issuance and delivery of
            Common Stock upon conversion of any Conversion Amount.

            

                
                      (b)       
            Conversion Rate. The number of shares of Common Stock issuable upon conversion of
            any Conversion Amount pursuant to Section 3(a) shall be determined by dividing (x) such
            Conversion Amount by (y) the Conversion Price (the “Conversion
            Rate”).

            

                
                      
                      (i)       “
            Conversion Amount” means the sum of (A) the portion of the Principal to be
            converted, redeemed or otherwise with respect to which this determination is being
            made, (B) accrued and unpaid Interest with respect to such Principal, and (C) accrued
            and unpaid Late Charges with respect to such Principal and Interest.

            

                
                      
                      (ii)       “
            Conversion Price” means, as of any Conversion Date (as defined below) or
            other date of determination, $ 1.8781, subject to adjustment as provided
            herein.

            

                
                      (c)       
            Mechanics of Conversion.

            

                
                      
                      (i)       
            Optional Conversion. To convert any Conversion Amount into shares of Common Stock
            on any date (a “Conversion Date”), the Holder shall (A) transmit by
            facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York Time,
            on such date, a copy of an executed notice of conversion in the form attached hereto as
            Exhibit I (the “Conversion Notice”) to the Company and (B) if
            required by Section 3(c)(iii), surrender this Note to a common carrier for delivery to
            the Company as soon as practicable on or following such date (or an indemnification
            undertaking with respect to this Note in the case of its loss, theft or destruction).
            On or before the first (1st) Business Day following the date of receipt of a
            Conversion Notice, the Company shall transmit by facsimile a confirmation (the
            “Conversion Confirmation”) of receipt of such Conversion Notice to
            the Holder and the Company’s Transfer Agent. On or before the (2nd)
            second Business Day following the date of receipt of a Conversion Notice (the
            “Share DeliveryDate”), the Company shall (X) provided that
            the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
            Program, credit such aggregate number of shares of Common Stock (including any Interest
            Shares) to which the Holder shall be entitled to the Holder’s or its
            designee’s balance account with DTC through its Deposit Withdrawal Agent
            Commission system or (Y) if the Transfer Agent is not participating in the DTC Fast
            Automated Securities Transfer Program, issue and deliver to the address as specified in
            the Conversion Notice, a certificate, registered in the name of the Holder or its
            designee, for the number of shares of Common Stock (including any Interest Shares) to
            which the Holder shall be entitled. If this Note is physically surrendered for
            conversion as required by Section 3(c)(iii) and the outstanding Principal of this Note
            is greater than the Principal portion of the Conversion Amount being converted, then
            the Company shall as soon as practicable and in no event later than three (3) Business
            Days after receipt of this Note and at its own expense, issue and deliver to the holder
            a new Note (in accordance with Section 20(d)) representing the outstanding Principal
            not converted. The Person or Persons entitled to receive the shares of Common Stock
            issuable upon a conversion of this Note shall be treated for all purposes as the record
            holder or holders of such shares of Common Stock on the Conversion Date.

            

            -4-

            
            
            

            

                
                      
                      (ii)       
            Company’s Failure to Timely Convert. If the Company shall fail to issue a
            certificate to the Holder or credit the Holder’s balance account with DTC, as
            applicable, for the number of shares of Common Stock to which the Holder is entitled
            upon conversion of any Conversion Amount on or prior to the date which is three (3)
            Trading Days after the Conversion Date (a “Conversion Failure”),
            then (A) the Company shall pay damages to the Holder for each Trading Day of such
            Conversion Failure in an amount equal to 1.5% of the product of (I) the sum of the
            number of shares of Common Stock not issued to the Holder on or prior to the Share
            Delivery Date and to which the Holder is entitled, and (II) the Closing Sale Price of
            the Common Stock on the Share Delivery Date and (B) the Holder, upon written notice to
            the Company, may void its Conversion Notice with respect to, and retain or have
            returned, as the case may be, any portion of this Note that has not been converted
            pursuant to such Conversion Notice; provided that the voiding of a Conversion
            Notice shall not affect the Company’s obligations to make any payments which have
            accrued prior to the date of such notice pursuant to this Section 3(c)(ii) or
            otherwise. In addition to the foregoing, if within three (3) Trading Days after the
            Company’s receipt of the facsimile copy of a Conversion Notice the Company shall
            fail to issue and deliver a certificate to the Holder or credit the Holder’s
            balance account with DTC for the number of shares of Common Stock to which the Holder
            is entitled upon such holder’s conversion of any Conversion Amount, and if on or
            after such Trading Day the Holder purchases (in an open market transaction or
            otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of Common
            Stock issuable upon such conversion that the Holder anticipated receiving from the
            Company (a “Buy-In”), then the Company shall, within three (3)
            Business Days after the Holder’s request and in the Holder’s discretion,
            either (A) pay cash to the Holder in an amount equal to the Holder’s total
            purchase price (including brokerage commissions and other out of pocket expenses, if
            any) for the shares of Common Stock so purchased (the “Buy-In
            Price”), at which point the Company’s obligation to issue and deliver
            such certificate or to credit the Holder’s balance account with DTC for the
            number of shares of Common Stock to which the Holder is entitled upon such
            Holder’s conversion of any Conversion Amount shall terminate, or (B) promptly
            honor its obligation to deliver to the Holder a certificate or certificates
            representing such Common Stock and pay cash to the Holder in an amount equal to the
            excess (if any) of the Buy-In Price over the product of (1) such number of shares of
            Common Stock, times (2) the Closing Bid Price on the Conversion Date.

            

            -5-

            
            
            

            

                
                      
                      (iii)       
            Registration; Book-Entry. The Company shall maintain a register (the
            “Register”) for the recordation of the names and addresses of the
            holders of each Note and the principal amount of the Notes held by such holders (the
            “Registered Notes”). The entries in the Register shall be conclusive
            and binding for all purposes absent manifest error. The Company and the holders of the
            Notes shall treat each Person whose name is recorded in the Register as the owner of a
            Note for all purposes, including, without limitation, the right to receive payments of
            principal and interest hereunder, notwithstanding notice to the contrary. A Registered
            Note may be assigned or sold in whole or in part only by registration of such
            assignment or sale on the Register. Upon its receipt of a request to assign or sell all
            or part of any Registered Note by a Holder, the Company shall record the information
            contained therein in the Register and issue one or more new Registered Notes in the
            same aggregate principal amount as the principal amount of the surrendered Registered
            Note to the designated assignee or transferee pursuant to Section 19. Notwithstanding
            anything to the contrary set forth herein, upon conversion of any portion of this Note
            in accordance with the terms hereof, the Holder shall not be required to physically
            surrender this Note to the Company unless (A) the full Conversion Amount represented by
            this Note is being converted or (B) the Holder has provided the Company with prior
            written notice (which notice may be included in a Conversion Notice) requesting
            reissuance of this Note upon physical surrender of this Note. The Holder and the
            Company shall maintain records showing the Principal, Interest and Late Charges, if
            any, converted and the dates of such conversions or shall use such other method,
            reasonably satisfactory to the Holder and the Company, so as not to require physical
            surrender of this Note upon conversion.

            

                
                      
                      (iv)       
            Pro Rata Conversion; Disputes. In the event that the Company receives a Conversion
            Notice from more than one holder of Notes for the same Conversion Date and the Company
            can convert some, but not all, of such portions of the Notes submitted for conversion,
            the Company, subject to Section 3(d), shall convert from each holder of Notes electing
            to have Notes converted on such date a pro rata amount of such holder’s portion
            of its Notes submitted for conversion based on the principal amount of Notes submitted
            for conversion on such date by such holder relative to the aggregate principal amount
            of all Notes submitted for conversion on such date. In the event of a dispute as to the
            number of shares of Common Stock issuable to the Holder in connection with a conversion
            of this Note, the Company shall issue to the Holder the number of shares of Common
            Stock not in dispute and resolve such dispute in accordance with Section 25.

            

            
                (d)       
            Limitations on Conversions.

            

                
                      
                      (i)       
            Beneficial Ownership. The Company shall not effect any conversion of this Note, and
            the Holder of this Note shall not have the right to convert any portion of this Note
            pursuant to Section 3(a), to the extent that after giving effect to such conversion,
            the Holder (together with the Holder’s affiliates) would beneficially own in
            excess of 4.99% (the “Maximum Percentage”) of the number of shares
            of Common Stock outstanding immediately after giving effect to such conversion. For
            purposes of the foregoing sentence, the number of shares of Common Stock beneficially
            owned by the Holder and its affiliates shall include the number of shares of Common
            Stock issuable upon conversion of this Note with respect to which the determination of
            such sentence is being made, but shall exclude the number of shares of Common Stock
            which would be issuable upon (A) conversion of the remaining, nonconverted portion of
            this Note beneficially owned by the Holder or any of its affiliates and (B) exercise or
            conversion of the unexercised or nonconverted portion of any other securities of the
            Company (including, without limitation, any Other Notes or warrants) subject to a
            limitation on conversion or exercise analogous to the limitation contained herein
            beneficially owned by the Holder or any of its affiliates. Except as set forth in the
            preceding sentence, for purposes of this Section 3(d)(i), beneficial ownership shall be
            calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as
            amended (the “1934 Act”). For purposes of this Section 3(d)(i), in
            determining the number of outstanding shares of Common Stock, the Holder may rely on
            the number of outstanding shares of Common Stock as reflected in (x) the
            Company’s most recent Form 10-K, Form 10-Q, Form 8-K or other public filing with
            the Securities Exchange Commission, as the case may be (y) a more recent public
            announcement by the Company or (z) any other notice by the Company or the Transfer
            Agent setting forth the number of shares of Common Stock outstanding. For any reason at
            any time, upon the written or oral request of the Holder, the Company shall within one
            (1) Business Day confirm orally and in writing to the Holder the number of shares of
            Common Stock then outstanding. In any case, the number of outstanding shares of Common
            Stock shall be determined after giving effect to the conversion or exercise of
            securities of the Company, including this Note, by the Holder or its affiliates since
            the date as of which such number of outstanding shares of Common Stock was reported. By
            written notice to the Company, the Holder may increase or decrease the Maximum
            Percentage to any other percentage not in excess of 9.99% specified in such notice;
            provided that (i) any such increase will not be effective until the sixty-first
            (61st) day after such notice is delivered to the Company, and (ii) any such
            increase or decrease will apply only to the Holder and not to any other holder of
            Notes.

            

            -6-

            
            
            

            

                
                      
                      (ii)       
            Principal Market Regulation. The Company shall not be obligated to issue any shares
            of Common Stock upon conversion of this Note if the issuance of such shares of Common
            Stock would exceed the aggregate number of shares of Common Stock which the Company may
            issue upon conversion or exercise, as applicable, of the Notes and Warrants without
            breaching the Company’s obligations under the rules or regulations of any
            applicable Eligible Market (the “Exchange Cap”), except that such
            limitation shall not apply in the event that the Company (A) obtains the approval of
            its stockholders as required by the applicable rules of such Eligible Market for
            issuances of Common Stock in excess of such amount or (B) obtains a written opinion
            from outside counsel to the Company that such approval is not required, which opinion
            shall be reasonably satisfactory to the Required Holders. Until such approval or
            written opinion is obtained, no purchaser of the Notes pursuant to the Securities
            Purchase Agreement (each, a “Purchaser” and collectively the
            “Purchasers”) shall be issued in the aggregate, upon conversion or
            exercise or otherwise, as applicable, of Notes or Warrants, shares of Common Stock in
            an amount greater than the product of the Exchange Cap multiplied by a fraction, the
            numerator of which is the principal amount of Notes issued to any Purchaser pursuant to
            the Securities Purchase Agreement on the Closing Date and the denominator of which is
            the aggregate principal amount of all Notes issued to all of the Purchasers pursuant to
            the Securities Purchase Agreement on the Closing Date (with respect to each Purchaser,
            the “Exchange Cap Allocation”). In the event that any Purchaser
            shall sell or otherwise transfer any of such Purchaser’s Notes, the transferee
            shall be allocated a pro rata portion of such Purchaser’s Exchange Cap
            Allocation, and the restrictions of the prior sentence shall apply to such transferee
            with respect to the portion of the Exchange Cap Allocation allocated to such
            transferee. In the event that any holder of Notes shall convert all of such
            holder’s Notes into a number of shares of Common Stock which, in the aggregate,
            is less than such holder’s Exchange Cap Allocation, then the difference between
            such holder’s Exchange Cap Allocation and the number of shares of Common Stock
            actually issued to such holder shall be allocated to the respective Exchange Cap
            Allocations of the remaining holders of Notes on a pro rata basis in proportion to the
            aggregate principal amount of the Notes then held by each such holder.

            

                
                      (e)       
            Company’s Right of Mandatory Conversion.

            

            -7-

            
            
            

            

                
                      
                      (i)       
            Mandatory Conversion. If at any time from and after the one (1) year anniversary of
            the Issuance Date (the “Mandatory Conversion Eligibility Date”), (i)
            the Average Market Price of the Common Stock exceeds for any twenty (20) Trading Days
            (which need not be consecutive) out of any thirty (30) consecutive Trading Day period
            following the applicable Mandatory Conversion Eligibility Date (the “Mandatory
            Conversion Measuring Period”) 200% of the Conversion Price on the Issuance
            Date (as adjusted for any stock splits, stock dividends, recapitalizations,
            combinations, reverse stock splits or other similar events during such period) (the
            “Mandatory Conversion Condition”) and (ii) there shall not have been
            any Equity Conditions Failure, the Company shall have the right to require the Holder
            to convert all, or any portion, of the Conversion Amount then remaining under this Note
            into fully paid, validly issued and nonassessable shares of Common Stock in accordance
            with Section 3(c) hereof at the Conversion Rate as of the Mandatory Conversion
            Date (as defined below) with respect to the Conversion Amount (a “Mandatory
            Conversion”). The Company may exercise its right to require conversion under
            this Section 3(e)(i) by delivering within not more than twenty (20) Trading Days
            following the end of such Mandatory Conversion Measuring Period a written notice
            thereof by facsimile and overnight courier to all, but not less than all, of the
            holders of Notes and the Transfer Agent (the “Mandatory Conversion
            Notice” and the date all of the holders received such notice by facsimile is
            referred to as the “Mandatory Conversion Notice Date”). The
            Mandatory Conversion Notice shall be irrevocable except with respect to a Mandatory
            Conversion Conditions Failure (as defined below). The Mandatory Conversion Notice shall
            state (i) the Trading Day selected for the Mandatory Conversion in accordance with this
            Section 3(e)(i), which Trading Day shall be at least thirty (30) Business Days, but no
            more than forty (40) Business Days following the Mandatory Conversion Notice Date (the
            “Mandatory Conversion Date”), (ii) the aggregate Conversion Amount
            of the Notes subject to mandatory conversion from the Holder and all of the holders of
            the Notes pursuant to this Section 8 (and analogous provisions under the Other Notes),
            (iii) the number of shares of Common Stock to be issued to such Holder on the Mandatory
            Conversion Date and (iv) that there has been no Equity Conditions Failure; provided,
            however, that the Company may not effect a Mandatory Conversion under this Section in
            excess of the Holder Pro Rata Amount of the applicable Mandatory Conversion Volume
            Limitation. On the Business Day immediately prior to the Mandatory Conversion Date, the
            Company shall deliver to the Holder a certificate (the “Mandatory Conversion
            Certification”) signed by the Chief Financial Officer of the Company
            certifying that since the Mandatory Conversion Notice Date, (x) the Mandatory
            Conversion Condition has been met for the Mandatory Conversion Measuring Period ending
            on the Business Day immediately preceding the Mandatory Conversion Date and (y) there
            has been no Equity Conditions Failure; provided, that to the extent the Company is
            unable to deliver the foregoing Mandatory Conversion Certification (a
            “Mandatory Conversion Conditions Failure”), such Mandatory
            Conversion Certification shall instead state that the conditions have not been met and
            that such Mandatory Conversion Notice is revoked and null and void; provided, further,
            that a failure by the Company to deliver a Mandatory Conversion Certification to the
            Holder on the Business Day immediately prior to the Mandatory Conversion Date shall be
            deemed to be a Mandatory Conversion Conditions Failure. Notwithstanding the foregoing,
            the Company may effect only one (1) Mandatory Conversion during any sixty (60)
            consecutive Trading Days. Any shares of Common Stock delivered in connection with a
            Mandatory Conversion hereunder shall be accompanied by a payment in cash equal to the
            amount of any accrued and unpaid Interest with respect to such Conversion Amount
            subject to such Mandatory Conversion and accrued and unpaid Late Charges, if any, with
            respect to such Conversion Amount and Interest. All Conversion Amounts converted by the
            Holder after the Mandatory Conversion Notice Date shall reduce the Conversion Amount of
            this Note required to be converted on the Mandatory Conversion Date. The mechanics of
            conversion set forth in Section 3(c) shall apply to any Mandatory Conversion as if the
            Company and the Transfer Agent had received from the Holder on the Mandatory Conversion
            Date a Conversion Notice with respect to the Conversion Amount being converted pursuant
            to the Mandatory Conversion. Notwithstanding the foregoing, if the Company cannot
            effect a Mandatory Conversion, in whole or in part, of the Conversion Amount of this
            Note (such portion, the “Unconverted Amount”) as contemplated in any
            Mandatory Conversion Notice due to the limitation on conversions set forth in Section
            3(d)(i), then, as of the applicable Mandatory Conversion Date, Interest on such
            Unconverted Amount shall cease to accrue and such Unconverted Amount shall be converted
            in accordance with Section 3(c)(iv) on such date such conversion is permitted under
            Section 3(d)(i).

            

            -8-

            
            
            

            

                
                      
                      (ii)       
            Pro Rata Conversion Requirement. If the Company elects to cause a conversion of any
            Conversion Amount of this Note pursuant to Section 3(e)(i), then it must simultaneously
            take the same action in the same proportion with respect to the Other Notes. If the
            Company elects a Mandatory Conversion of this Note pursuant to Section 3(e)(i) (or
            similar provisions under the Other Notes) with respect to less than all of the
            Conversion Amounts of the Notes then outstanding, then the Company shall require
            conversion of a Conversion Amount from each of the holders of the Notes equal to the
            product of (I) the aggregate Conversion Amount of Notes which the Company has elected
            to cause to be converted pursuant to Section 3(e)(i), multiplied by (II) the fraction,
            the numerator of which is the sum of the aggregate Original Principal Amount of the
            Notes purchased by such holder of outstanding Notes and the denominator of which is the
            sum of the aggregate Original Principal Amount of the Notes purchased by all holders
            holding outstanding Notes (such fraction with respect to each holder is referred to as
            its “ConversionAllocation Percentage,” and such amount with
            respect to each holder is referred to as its “Pro Rata Conversion
            Amount”); provided, however, that in the event that any holder’s Pro
            Rata Conversion Amount exceeds the outstanding Principal amount of such holder’s
            Note, then such excess Pro Rata Conversion Amount shall be allocated amongst the
            remaining holders of Notes in accordance with the foregoing formula. In the event that
            the initial holder of any Notes shall sell or otherwise transfer any of such
            holder’s Notes, the transferee shall be allocated a pro rata portion of such
            holder’s Conversion Allocation Percentage and the Pro Rata Conversion
            Amount.

            

            
                (4)       
            RIGHTS UPON EVENT OF DEFAULT.

            

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

            

                
                      

                       (i)       the
            failure of the applicable Registration Statement required to be filed pursuant to the
            Registration Rights Agreement to be declared effective by the SEC on or prior to the
            date that is sixty (60) days after the applicable Effectiveness Deadline (as defined in
            the Registration Rights Agreement), or, while the applicable Registration Statement is
            required to be maintained effective pursuant to the terms of the Registration Rights
            Agreement, the effectiveness of the applicable Registration Statement lapses for any
            reason (including, without limitation, the issuance of a stop order) or is unavailable
            to any holder of the Notes for sale of all of such holder’s Registrable
            Securities (as defined in the Registration Rights Agreement) in accordance with the
            terms of the Registration Rights Agreement, and such lapse or unavailability continues
            for a period of five (5) consecutive days or for more than an aggregate of twenty (20)
            days in any 365-day period (other than days during an Allowable Grace Period (as
            defined in the Registration Rights Agreement));

            

            -9-

            
            
            

            

                
                      
                      (ii)       the
            suspension from trading or failure of the Common Stock to be listed on an Eligible
            Market for a period of five (5) consecutive Trading Days or for more than an aggregate
            of ten (10) Trading Days in any 365-day period;

            

                
                      
                      (iii)       the
            Company’s (A) failure to cure a Conversion Failure by delivery of the required
            number of shares of Common Stock within ten (10) Business Days after the applicable
            Conversion Date or (B) notice, written or oral, to any holder of the Notes, including
            by way of public announcement or through any of its agents, at any time, of its
            intention not to comply with a request for conversion of any Notes into shares of
            Common Stock that is tendered in accordance with the provisions of the
            Notes;

            

                
                      
                      (iv)       at
            any time following the tenth (10th) consecutive Business Day that the
            Holder’s Authorized Share Allocation is less than the number of shares of Common
            Stock that the Holder would be entitled to receive upon a conversion of the full
            Conversion Amount of this Note (without regard to any limitations on conversion set
            forth in Section 3(d) or otherwise);

            

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

            

                
                      
                      (vi)       any
            default under, redemption of or acceleration prior to maturity of any Indebtedness of
            the Company or any of its Subsidiaries (as defined in Section 3(a) of the Securities
            Purchase Agreement) other than with respect to any Other Notes;

            

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

            

                
                      
                      (viii)       a
            court of competent jurisdiction enters an order or decree under any Bankruptcy Law that
            (A) is for relief against the Company or any of its Subsidiaries in an involuntary
            case, (B) appoints a Custodian of the Company or any of its Subsidiaries or (C) orders
            the liquidation of the Company or any of its Subsidiaries;

            

            -10-

            
            
            

            

                
                      
                      (ix)       a
            final judgment or judgments for the payment of money aggregating in excess of (A)
            $100,000 are rendered against the Company or any of its Subsidiaries or (B) $50,000 are
            rendered against any of the officers or directors of the Company or any of its
            Subsidiaries, and which judgments are not, within sixty (60) days after the entry
            thereof, bonded, discharged or stayed pending appeal, or are not discharged within
            sixty (60) days after the expiration of such stay; provided, however, that any judgment
            which is covered by insurance or an indemnity from a credit worthy party shall not be
            included in calculating the amounts set forth above so long as the Company provides the
            Holder a written statement from such insurer or indemnity provider (which written
            statement shall be reasonably satisfactory to the Holder) to the effect that such
            judgment is covered by insurance or an indemnity and the Company will receive the
            proceeds of such insurance or indemnity within thirty (30) days of the issuance of such
            judgment;

            

                
                      
                      (x)       the
            Company breaches any representation, warranty, covenant or other term or condition of
            any Transaction Document, except, in the case of a breach of a covenant or other term
            or condition of any Transaction Document which is curable, only if such breach
            continues for a period of at least ten (10) consecutive Business Days;

            

                
                      
                      (xi)       any
            breach or failure in any respect to comply with Section 15 of this Note; or

            

                
                      
                      (xii)       any
            Event of Default (as defined in the Other Notes) occurs with respect to any Other
            Notes.

            

                
                      (b)       
            Redemption Right. Upon the occurrence of an Event of Default, the Company shall
            within one (1) Business Day deliver written notice thereof via facsimile and overnight
            courier (an “Event of Default Notice”) to the Holder. At any time
            after the earlier of the Holder’s receipt of an Event of Default Notice and the
            Holder becoming aware of an Event of Default, the Holder may require the Company to
            redeem all or any portion of this Note by delivering written notice thereof (the
            “Event of Default Redemption Notice”) to the Company, which Event of
            Default Redemption Notice shall indicate the portion of this Note the Holder is
            electing to redeem. Each portion of this Note subject to redemption by the Company
            pursuant to this Section 4(b) shall be redeemed by the Company at a price equal to the
            greater of (i) the product of (A) the sum of the Conversion Amount to be redeemed
            together with accrued and unpaid Interest with respect to such Conversion Amount and
            accrued and unpaid Late Charges, if any, with respect to such Conversion Amount and
            Interest and (B) the Redemption Premium and (ii) the product of (A) the Conversion Rate
            with respect to such sum of the Conversion Amount together with accrued and unpaid
            Interest with respect to such Conversion Amount and accrued and unpaid Late Charges, if
            any, with respect to such Conversion Amount and Interest in effect at such time as the
            Holder delivers an Event of Default Redemption Notice and (B) the product of (1) the
            Equity Value Redemption Premium and (2) the greatest Closing Sale Price of the Common
            Stock beginning on the date immediately preceding such Event of Default and ending on
            the date the Holder delivers the Event of Default Redemption Notice (the
            “Event of DefaultRedemption Price”). Redemptions required by
            this Section 4(b) shall be made in accordance with the provisions of Section 14. To the
            extent redemptions required by this Section 4(b) are deemed or determined by a court of
            competent jurisdiction to be prepayments of the Note by the Company, such redemptions
            shall be deemed to be voluntary prepayments. The parties hereto agree that in the event
            of the Company’s redemption of any portion of the Note under this Section 4(b),
            the Holder’s damages would be uncertain and difficult to estimate because of the
            parties’ inability to predict future interest rates and the uncertainty of the
            availability of a suitable substitute investment opportunity for the Holder.
            Accordingly, any Redemption Premium due under this Section 4(b) is intended by the
            parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual
            loss of its investment opportunity and not as a penalty.

            

            -11-

            
            
            

            

            
                (5)       
            RIGHTS UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL.

            

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

            

            -12-

            
            
            

            

                
                      (b)       
            Redemption Right. No sooner than fifteen (15) Trading Days nor later than ten (10)
            Trading Days prior to the consummation of a Change of Control, but not prior to the
            public announcement of such Change of Control, the Company shall deliver written notice
            thereof via facsimile and overnight courier to the Holder (a “Change of
            ControlNotice”). At any time during the period beginning after the
            Holder’s receipt of a Change of Control Notice and ending twenty (20) Trading
            Days after the date of the consummation of such Change of Control, the Holder may
            require the Company to redeem all or any portion of this Note by delivering written
            notice thereof (“Change of Control Redemption Notice”) to the
            Company, which Change of Control Redemption Notice shall indicate the Conversion Amount
            the Holder is electing to redeem. The portion of this Note subject to redemption
            pursuant to this Section 5 shall be redeemed by the Company in cash at a price equal to
            the greater of (i) 130% of the sum of (x) the Conversion Amount being redeemed and (y)
            the amount of any accrued but unpaid Interest on such Conversion Amount being redeemed
            and accrued and unpaid Late Charges, if any, with respect to such Conversion Amount and
            Interest through the date of such redemption payment and (ii) the product of (x) the
            Equity Value Redemption Premium and (y) the sum of (1) the product of (A) the
            Conversion Amount being redeemed multiplied by (B) the quotient determined by dividing
            (I) the aggregate cash consideration and the aggregate cash value of any non-cash
            consideration per Common Share to be paid to the holders of the Common Shares upon
            consummation of the Change of Control (any such non-cash consideration consisting of
            marketable securities to be valued at the higher of the Closing Sale Price of such
            securities as of the Trading Day immediately prior to, the Closing Sale Price as of the
            Trading Day immediately following the public announcement of such proposed Change of
            Control and the Closing Sale Price of the Common Stock immediately prior to the public
            announcement of such proposed Change of Control) by (II) the Conversion Price plus (2)
            the amount of any accrued but unpaid Interest on such Conversion Amount being redeemed
            and accrued and unpaid Late Charges, if any, with respect to such Conversion Amount and
            Interest through the date of such redemption payment, (the “Change of Control
            Redemption Price”). Redemptions required by this Section 5 shall be made in
            accordance with the provisions of Section 14 and shall have priority to payments to
            stockholders in connection with a Change of Control. To the extent redemptions required
            by this Section 5(b) are deemed or determined by a court of competent jurisdiction to
            be prepayments of the Note by the Company, such redemptions shall be deemed to be
            voluntary prepayments. Notwithstanding anything to the contrary in this Section 5, but
            subject to Section 3(d), until the Change of Control Redemption Price (together with
            any interest thereon) is paid in full, the Conversion Amount submitted for redemption
            under this Section 5(b) (together with any interest thereon) may be converted, in whole
            or in part, by the Holder into Common Stock pursuant to Section 3. The parties hereto
            agree that in the event of the Company’s redemption of any portion of the Note
            under this Section 5(b), the Holder’s damages would be uncertain and difficult to
            estimate because of the parties’ inability to predict future interest rates and
            the uncertainty of the availability of a suitable substitute investment opportunity for
            the Holder. Accordingly, any Change of Control redemption premium due under this
            Section 5(b) is intended by the parties to be, and shall be deemed, a reasonable
            estimate of the Holder’s actual loss of its investment opportunity and not as a
            penalty.

            

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

            

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

            

            -13-

            
            
            

            

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

            

            
                (7)       
            RIGHTS UPON ISSUANCE OF OTHER SECURITIES.

            

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

            

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

            

            -14-

            
            
            

            

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

            

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

            

            -15-

            
            
            

            

                
                      
                      (iv)       
            Calculation of Consideration Received. In case any Option is issued in connection
            with the issue or sale of other securities of the Company, together comprising one
            integrated transaction in which no specific consideration is allocated to such Options
            by the parties thereto, the Options will be deemed to have been issued for a
            consideration of $.01. If any Common Stock, Options or Convertible Securities are
            issued or sold or deemed to have been issued or sold for cash, the consideration
            received therefor will be deemed to be the net amount received by the Company therefor.
            If any Common Stock, Options or Convertible Securities are issued or sold for a
            consideration other than cash, the amount of the consideration other than cash received
            by the Company will be the fair value of such consideration, except where such
            consideration consists of securities, in which case the amount of consideration
            received by the Company will be the Closing Sale Price of such securities on the date
            of receipt. If any Common Stock, Options or Convertible Securities are issued to the
            owners of the non-surviving entity in connection with any merger in which the Company
            is the surviving entity, the amount of consideration therefor will be deemed to be the
            fair value of such portion of the net assets and business of the non-surviving entity
            as is attributable to such Common Stock, Options or Convertible Securities, as the case
            may be. The fair value of any consideration other than cash or securities will be
            determined jointly by the Company and the Required Holders. If such parties are unable
            to reach agreement within ten (10) days after the occurrence of an event requiring
            valuation (the “Valuation Event”), the fair value of such
            consideration will be determined within five (5) Business Days after the tenth
            (10th) day following the Valuation Event by an independent, reputable
            appraiser jointly selected by the Company and the Required Holders. The determination
            of such appraiser shall be deemed binding upon all parties absent manifest error and
            the fees and expenses of such appraiser shall be borne by the Company.

            

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

            

                
                      
                      (vi)       
            Voluntary Adjustment By Company. The Company may at any time during the term of
            this Note reduce the then current  Conversion Price to any amount
            and for any period of time deemed appropriate by the Board of Directors of the
            Company.

            

                
                      
                      (vii)       
            Milestone Adjustment. If the Company fails a Financial Milestone (as defined below)
            (each a “Milestone Failure”), the then current Conversion
            Price hereunder shall be reset on the tenth (10th) Trading Date after the earlier to
            occur of the applicable Announcement Date (as defined below) or Announcement Date
            Deadline (as defined below) to the lower of the (i) then existing Conversion Price and
            (ii) the Average Market Price as of the date that is ten (10) Trading Days after such
            Announcement Date or Announcement Date Deadline, as applicable.

            

            -16-

            
            
            

            

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

            

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

            

            
                (8)       
            SECURITY. This Note and the Other Notes are secured to the extent and in the manner
            set forth in the Security Documents (as defined in the Securities Purchase
            Agreement).

            

            
                (9)       
            NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will
            not, by amendment of its Certificate of Incorporation, Bylaws or through any
            reorganization, transfer of assets, consolidation, merger, scheme of arrangement,
            dissolution, issue or sale of securities, or any other voluntary action, avoid or seek
            to avoid the observance or performance of any of the terms of this Note, and will at
            all times in good faith carry out all of the provisions of this Note and take all
            action as may be required to protect the rights of the Holder of this Note.

            

            
                (10)       
            RESERVATION OF AUTHORIZED SHARES.

            

                
                      
                      (a)       
            Reservation. The Company shall initially reserve out of its authorized and unissued
            Common Stock a number of shares of Common Stock for each of the Notes equal to 130% of
            the Conversion Rate with respect to the Conversion Amount of each such Note as of the
            IssuanceDate. So long as any of the Notes are outstanding, the Company shall take all
            action necessary to reserve and keep available out of its authorized and unissued
            Common Stock, solely for the purpose of effecting the conversion of the Notes, 130% of
            the number of shares of Common Stock as shall from time to time be necessary to effect
            the conversion of all of the Notes then outstanding; provided that at no time shall the
            number of shares of Common Stock so reserved be less than the number of shares required
            to be reserved by the previous sentence (without regard to any limitations on
            conversions) (the “Required Reserve Amount”). The initial number of
            shares of Common Stock reserved for conversions of the Notes and each increase in the
            number of shares so reserved shall be allocated pro rata among the holders of the Notes
            based on the principal amount of the Notes held by each holder at the Closing (as
            defined in the Securities Purchase Agreement) or increase in the number of reserved
            shares, as the case may be (the “Authorized Share Allocation”). In
            the event that a holder shall sell or otherwise transfer any of such holder’s
            Notes, each transferee shall be allocated a pro rata portion of such holder’s
            Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any
            Person which ceases to hold any Notes shall be allocated to the remaining holders of
            Notes, pro rata based on the principal amount of the Notes then held by such
            holders.

            

            -17-

            
            
            

            

                
                      (b)       
            Insufficient Authorized Shares. If at any time while any of the Notes remain
            outstanding the Company does not have a sufficient number of authorized and unreserved
            shares of Common Stock to satisfy its obligation to reserve for issuance upon
            conversion of the Notes at least a number of shares of Common Stock equal to the
            Required Reserve Amount (an “Authorized Share Failure”), then the
            Company shall immediately take all action necessary to increase the Company’s
            authorized shares of Common Stock to an amount sufficient to allow the Company to
            reserve the Required Reserve Amount for the Notes then outstanding. Without limiting
            the generality of the foregoing sentence, as soon as practicable after the date of the
            occurrence of an Authorized Share Failure, but in no event later than sixty (60) days
            after the occurrence of such Authorized Share Failure, the Company shall hold a meeting
            of its stockholders for the approval of an increase in the number of authorized shares
            of Common Stock. In connection with such meeting, the Company shall provide each
            stockholder with a proxy statement and shall use its best efforts to solicit its
            stockholders’ approval of such increase in authorized shares of Common Stock and
            to cause its board of directors to recommend to the stockholders that they approve such
            proposal.

            

            
                (11)       
            HOLDER’S RIGHT OF OPTIONAL REDEMPTION. Following each of the one (1) year
            anniversary of the Issuance Date and the two (2) year anniversary of the Issuance Date,
            the Holder shall have the right (each a “Holder Optional
            Redemption”), in its sole discretion, to require that the Company to redeem a
            Principal amount of this Note in an amount up to the Available Redemption Amount plus
            accrued and unpaid Interest on such Available Redemption Amount plus accrued and unpaid
            Late Charges with respect to such Principal and Interest (the “Redemption
            Amount”) by delivering written notice thereof to the Company within five (5)
            Business Days following each of the above mentioned anniversary dates (a
            “Holder Optional Redemption Notice” and the date the Holder delivers
            such notice, the “Holder Optional Redemption Notice Date). The Company
            shall redeem any Redemption Amounts within five (5) Trading Days of the Holder Optional
            Redemption Notice Date (the “Optional Redemption Date”) in cash at a
            price equal to the Redemption Amount (the “Holder Optional Redemption
            Price”). Redemptions made pursuant to this Section 11 shall be made in
            accordance with Section 13. No later than one (1) Trading Day following any Optional
            Redemption Date, the Company shall file a Current Report on Form 8-K describing the
            terms of each the applicable Holder Optional Redemption.

            

            
                (12)       
            HOLDER’S RIGHT OF OPTIONAL CONVERSION/REDEMPTION

            

            -18-

            
            
            

            

                
                      (a)       
            General. At any time and from time to time after the earlier of (i) the Initial
            Effective Date (as defined in the Registration Rights Agreement) and (ii) the one (1)
            year anniversary of the Issuance Date, the Holder shall have the right, in its sole
            discretion, to require that the Company, convert, or, at the Company’s election,
            redeem up to the Available Conversion/Redemption Amount of the Conversion Amount (the
            “Conversion/Redemption Amount”) by delivering written notice thereof
            (a “Holder Optional Conversion/Redemption Notice” and the date the
            Holder delivers such notice, the “Holder Optional Conversion/Redemption Notice
            Date”). Within one (1) Business Day of the Holder Optional
            Conversion/Redemption Notice Date, the Company shall deliver to the Holder a written
            notice (a “Company Conversion/Redemption Notice” and the date the
            Holder receives such written notice, the “Company Conversion/Redemption Notice
            Date”) which notice shall (i) either (A) confirm that the
            Conversion/Redemption Amount shall be converted (an “Optional
            Conversion”) in whole or in part or (B)(1) state that the Company elects to
            redeem (an “Optional Redemption”), in whole or in part, the
            Conversion/Redemption Amount and (2) specify the portion which the Company elects to
            redeem pursuant to an Optional Redemption (such amount to be redeemed, the
            “Optional Redemption Amount”) and the portion, if any, that the
            Company elects to convert pursuant to an Optional Conversion (such amount also, an
            “Optional Conversion Amount”) and (ii) if the Conversion/Redemption
            Amount is to be paid, in whole or in part, pursuant to an Optional Conversion, certify
            that there has been no Equity Conditions Failure (other than with respect to clause
            (iv)(A) of the definition of Equity Conditions); provided, however, that the Company
            may not effect a Optional Conversion under this Section 12 in excess of the Holder Pro
            Rata Amount of the applicable Optional Conversion Volume Limitation. Each Company
            Conversion/Redemption Notice shall be irrevocable. The Company shall redeem and convert
            any Optional Redemption Amounts and Optional Conversion Amounts within three (3)
            Trading Days of the Company Conversion/Redemption Notice Date (the “Optional
            Conversion/Redemption Date”) and shall make the same conversion and
            redemption decisions as to all the Notes for which the Company has received a Holder
            Optional Conversion/Redemption Notice. The portion of this Note subject to redemption
            pursuant to this Section 10 shall be redeemed by the Company in cash at a price equal
            to the Optional Redemption Amount (the “Holder Optional Redemption
            Price”).

            

                
                      (b)       
            Mechanics of Holder Optional Conversion. (i) If the Company delivers a Company
            Conversion/Redemption Notice electing an Optional Conversion in accordance with Section
            12(a), then, on the Trading Day prior to the Optional Conversion/Redemption Date, the
            Company shall, or shall direct the Transfer Agent to, deliver to the Holder’s
            account with DTC, or issue the Holder a certificate for, a number of shares of Common
            Stock equal to the quotient of (A) such Optional Conversion Amount divided by (B) the
            Optional Conversion Price (the “Optional Conversion Shares”) on the
            Optional Conversion/Redemption Date. If an Event of Default occurs during any
            applicable Optional Conversion/Redemption Measuring Period and the Holder elects an
            Event of Default Redemption in accordance with Section 4(b), then, at the
            Holder’s option, either (1) the Holder, upon receipt of the Event of Default
            Redemption Price (which Redemption Price includes redemption of any portion of a Holder
            Optional Conversion Amount represented by Optional Conversion Shares that the Holder
            shall return to the Company), shall return any Optional Conversion Shares delivered in
            connection with the Holder Optional Conversion/Redemption Date, which the Holder has
            not otherwise sold, transferred or disposed of, to the Company or (2) the Conversion
            Amount used to calculate the Event of Default Redemption Price shall be reduced by the
            Holder Optional Conversion Amount applicable to such Holder Optional
            Conversion/Redemption Date.

            

            -19-

            
            
            

            

                
                      
                      (ii)       
            If the Company has elected an Optional Conversion, in whole or in part, and there is an
            Equity Conditions Failure (other than with respect to clause (iv)(A) of the definition
            of Equity Conditions) at the Holder Optional Conversion/Redemption Date, then at the
            option of the Holder designated in writing to the Company, the Holder may require the
            Company to do either one or both of the following: (A) the Company shall redeem all or
            any part designated by the Holder of the unconverted Holder Optional Conversion Amount
            (such designated amount is referred to as the “Holder Designated Redemption
            Amount”) on such Holder Optional Conversion/Redemption Date and the Company
            shall pay to the Holder on such Holder Optional Conversion/Redemption Date by wire
            transfer of immediately available funds, an amount in cash equal to 125% of such Holder
            Designated Redemption Amount, and/or (B) the Holder Optional Conversion shall be null
            and void with respect to all or any part designated by the Holder of the unconverted
            Holder Optional Conversion Amount and the Holder shall be entitled to all the rights of
            a holder of this Note with respect to such amount of the Holder Optional Conversion
            Amount; provided, however, that the Conversion Price for such unconverted Holder
            Optional Conversion Amount shall thereafter be adjusted to equal the lowest the
            Optional Conversion Price as in effect during the period beginning on the date on which
            the Holder voided the Holder Optional Conversion and ending on the date on which the
            Holder delivers a Conversion Notice relating thereto. In the event the Holder elects to
            require payment of the Holder Designated Redemption Amount upon an Equity Conditions
            Failure (other than with respect to clause (iv)(A) of the definition of Equity
            Conditions) following the Holder Optional Conversion/Redemption Date, at the
            Holder’s option, either (x) the Holder shall, upon receipt of a Holder Designated
            Redemption Amount (which amount includes redemption of any portion of a Holder Optional
            Conversion Amount represented by Optional Conversion Shares that the Holder shall
            return to the Company), return any Optional Conversion Shares delivered in connection
            with the applicable Holder Optional Conversion/Redemption Date, which the Holder has
            not otherwise sold, transferred or disposed of, to the Company or (y) any related
            Holder Designated Redemption Amount shall be reduced by the Holder Optional Conversion
            Amount applicable to such Holder Optional Conversion/Redemption Date. If the Company
            fails to redeem the Holder Designated Redemption Amount on or before the Holder
            Optional Conversion/Redemption Date by payment of such amount on such Holder Optional
            Conversion/Redemption Date then the Holder shall have the rights set forth in Section
            13 as if the Company failed to pay the applicable Holder Optional Redemption Price and
            all other rights under this Note (including, without limitation, such failure
            constituting an Event of Default described in Section 4(a)(xi)).

            

                
                      (c)           
            Mechanics of Holder Optional Redemption. Optional Redemptions made pursuant to this
            Section 12 shall be made in accordance with Section 13.

            

            
                (13)           
            HOLDER’S REDEMPTIONS.

            

                
                      (a)           
            Mechanics. The Company shall deliver the applicable Event of Default Redemption
            Price to the Holder within five (5) Business Days after the Company’s receipt of
            the Holder’s Event of Default Redemption Notice. If the Holder has submitted a
            Change of Control Redemption Notice in accordance with Section 5(b), the Company shall
            deliver the applicable Change of Control Redemption Price to the Holder concurrently
            with the consummation of such Change of Control if such notice is received prior to the
            consummation of such Change of Control and within five (5) Business Days after the
            Company’s receipt of such notice otherwise. The Company shall deliver the
            applicable Holder Optional Redemption Price on the applicable Redemption Date. In the
            event of a redemption of less than all of the Conversion Amount of this Note, the
            Company shall promptly cause to be issued and delivered to the Holder a new Note (in
            accordance with Section 19(d)) representing the outstanding Principal which has not
            been redeemed. In the event that the Company does not pay the applicable Redemption
            Price to the Holder within the time period required, at any time thereafter and until
            the Company pays such unpaid Redemption Price in full, the Holder shall have the
            option, in lieu of redemption, to require the Company to promptly return to the Holder
            all or any portion of this Note representing the Conversion Amount that was submitted
            for redemption and for which the applicable Redemption Price (together with any Late
            Charges thereon) has not been paid. Upon the Company’s receipt of such notice,
            (x) the Redemption Notice shall be null and void with respect to such Conversion
            Amount, (y) the Company shall immediately return or reinstate this Note, or issue a new
            Note (in accordance with Section 19(d)) to the Holder representing such Conversion
            Amount and (z) the Conversion Price of this Note or such new Notes shall be adjusted to
            the lesser of (A) the Conversion Price as in effect on the date on which the applicable
            Redemption Notice is voided and (B) the lowest Closing Bid Price of the Common Stock
            during the period beginning on and including the date on which the applicable
            Redemption Notice is delivered to the Company and ending on and including the date on
            which the applicable Redemption Notice is voided. The Holder’s delivery of a
            notice voiding a Redemption Notice and exercise of its rights following such notice
            shall not affect the Company’s obligations to make any payments of Late Charges
            which have accrued prior to the date of such notice with respect to the Conversion
            Amount subject to such notice.

            

            -20-

            
            
            

            

                
                      
            (b)           Redemption by
            Other Holders. Upon the Company’s receipt of notice from any of the holders
            of the Other Notes for redemption or repayment as a result of an event or occurrence
            substantially similar to the events or occurrences described in Section 4(b), Section
            5(b) or Section 8 (each, an “Other Redemption Notice”), the Company
            shall immediately, but no later than one (1) Business Day of its receipt thereof,
            forward to the Holder by facsimile a copy of such notice. If the Company receives a
            Redemption Notice and one or more Other Redemption Notices, during the seven (7)
            Business Day period beginning on and including the date which is three (3) Business
            Days prior to the Company’s receipt of the Holder’s Redemption Notice and
            ending on and including the date which is three (3) Business Days after the
            Company’s receipt of the Holder’s Redemption Notice and the Company is
            unable to redeem all principal, interest and other amounts designated in such
            Redemption Notice and such Other Redemption Notices received during such seven (7)
            Business Day period, then the Company shall redeem a pro rata amount from each holder
            of the Notes (including the Holder) based on the principal amount of the Notes
            submitted for redemption pursuant to such Redemption Notice and such Other Redemption
            Notices received by the Company during such seven Business Day period.

            

            
                (14)           
            VOTING RIGHTS. The Holder shall have no voting rights as the holder of this Note,
            except as required by law, including, but not limited to, the Nevada Business
            Corporation Act and as expressly provided in this Note.

            

            
                (15)           
            COVENANTS. So long as this Note is outstanding:

            

                
                      (a)           
            Rank. All payments due under this Note (A) shall rank pari passu with all
            Other Notes and (B) shall be senior to all other Indebtedness of the Company and its
            Subsidiaries, other than Permitted Indebtedness secured by Permitted Liens.

            

                
                      (b)           
            Incurrence of Indebtedness. The Company shall not, and the Company shall not permit
            any of its Subsidiaries to, directly or indirectly, incur or guarantee, assume or
            suffer to exist any Indebtedness, other than (i) the Indebtedness evidenced by this
            Note and the Other Notes and (ii) other Permitted Indebtedness.

            

            -21-

            
            
            

            

                
                      (c)           
            Existence of Liens. The Company shall not, and the Company shall not permit any of
            its Subsidiaries to, directly or indirectly, allow or suffer to exist any mortgage,
            lien, pledge, charge, security interest or other encumbrance upon or in any property or
            assets (including accounts and contract rights) owned by the Company or any of its
            Subsidiaries (collectively, “Liens”) other than Permitted
            Liens.

            

                
                      (d)           
            Restricted Payments. The Company shall not, and the Company shall not permit any of
            its Subsidiaries to, directly or indirectly, redeem, defease, repurchase, repay or make
            any payments in respect of, by the payment of cash or cash equivalents (in whole or in
            part, whether by way of open market purchases, tender offers, private transactions or
            otherwise), all or any portion of any Indebtedness (other than this Note and the Other
            Notes), whether by way of payment in respect of principal of (or premium, if any) or
            interest on such Indebtedness, if at the time such payment is due or is otherwise made
            or, after giving effect to such payment, an event constituting, or that with the
            passage of time and without being cured would constitute, an Event of Default has
            occurred and is continuing; provided that notwithstanding the foregoing, no principal
            (or any portion thereof) of any Subordinated Indebtedness may be paid (whether upon
            maturity, redemption, acceleration or otherwise) so long as this Note is
            outstanding.

            

                
                      (e)           
            Restriction on Redemption and Cash Dividends. Until all of the Notes have been
            converted, redeemed or otherwise satisfied in accordance with their terms, the Company
            shall not, directly or indirectly, redeem, repurchase or declare or pay any cash
            dividend or distribution on its capital stock without the prior express written consent
            of the Required Holders.

            

                
                      (f)           
            Creation of New Subsidiaries. So long as the obligations of the Company under this
            Note are outstanding, if the Company shall create or acquire any Subsidiary,
            simultaneous with the creation or acquisition of such Subsidiary, the Company shall (i)
            promptly cause such Subsidiary to become a guarantor by executing a guaranty in favor
            of the Holder in form and substance reasonably acceptable to the Company, the
            Subsidiary and the Holder, (ii) promptly cause such Subsidiary to become a grantor
            under the Security Agreement by executing a joinder to the Security Agreement in form
            and substance reasonably acceptable to the Company, the Subsidiary and the Holder,
            (iii) promptly cause such Subsidiary to become a pledgor by the Company and such
            Subsidiary executing a pledge agreement in form and substance reasonably acceptable to
            the Company, the Subsidiary and the Holder, and (iv) promptly cause such Subsidiary to
            duly execute and/or deliver such opinions of counsel and other documents, in form and
            substance reasonable acceptable to the Holder, as the Holder shall reasonably request
            with respect thereto.

            

                
                      (g)           
            Intellectual Property. So long as the obligations of the Company under this Note
            are outstanding, the Company shall not, and shall not permit any Subsidiary to,
            directly or indirectly, (i) assign, transfer or otherwise encumber or allow any other
            Person to have any rights or license to any of the Intellectual Property Rights (as
            defined in the Securities Purchase Agreement) of the Company or its Subsidiaries or
            (ii) take any action or inaction to impair the value of their Intellectual Property
            Rights.

            

            -22-

            
            
            

            

                
                      (h)           
            Change in Collateral; Collateral Records. The Company shall (i) give the Collateral
            Agent (as defined in the Securities Purchase Agreement) not less than
            30 days’ prior written notice of any change in the location of any
            Collateral (as defined in the Security Documents (as defined in the Securities Purchase
            Agreement)), other than to locations set forth on Schedule 13(g) hereto and with
            respect to which the Collateral Agent has filed financing statements and otherwise
            fully perfected its Liens thereon, (ii) advise the Collateral Agent promptly, in
            sufficient detail, of any material adverse change relating to the type, quantity or
            quality of the Collateral or the Lien granted thereon and (iii) execute and
            deliver, and cause each of its Subsidiaries to execute and deliver, to the Collateral
            Agent for the benefit of the Holder and holders of the Other Notes from time to time,
            solely for the Collateral Agent’s convenience in maintaining a record of
            Collateral, such written statements and schedules as the Collateral Agent may
            reasonably require, designating, identifying or describing the Collateral.

            

                
                      
            (i)           Transactions
            with Affiliates. The Company shall not, nor shall it permit any of its Subsidiaries
            to, enter into, renew, extend or be a party to, any transaction or series of related
            transactions (including, without limitation, the purchase, sale, lease, transfer or
            exchange of property or assets of any kind or the rendering of services of any kind)
            with any Affiliate, except (i) in the ordinary course of business in a manner and
            to an extent consistent with past practice and necessary or desirable for the prudent
            operation of its business, for fair consideration and on terms no less favorable to it
            or its Subsidiaries than would be obtainable in a comparable arm’s length
            transaction with a Person that is not an Affiliate thereof.

            

                
                      (j)           
            Change in Nature of Business. The Company shall not make, or permit any of its
            Subsidiaries to make, any change in the nature of its business as described in the
            Company’s most recent annual report filed on Form 10-K with the SEC. The Company
            shall not modify its corporate structure or purpose.

            

                
                      (k)           
            Preservation of Existence, Etc. The Company shall maintain and preserve, and cause
            each of its Subsidiaries to maintain and preserve, its existence, rights and
            privileges, and become or remain, and cause each of its Subsidiaries to become or
            remain, duly qualified and in good standing in each jurisdiction in which the character
            of the properties owned or leased by it or in which the transaction of its business
            makes such qualification necessary.

            

                
                      (l)           
            Maintenance of Properties, Etc. The Company shall maintain and preserve, and cause
            each of its Subsidiaries to maintain and preserve, all of its properties which are
            necessary or useful in the proper conduct of its business in good working order and
            condition, ordinary wear and tear excepted, and comply, and cause each of its
            Subsidiaries to comply, at all times with the provisions of all leases to which it is a
            party as lessee or under which it occupies property, so as to prevent any loss or
            forfeiture thereof or thereunder.

            

            -23-

            
            
            

            

                
                      (m)           
            Maintenance of Insurance. The Company shall maintain, and cause each of its
            Subsidiaries to maintain, insurance with responsible and reputable insurance companies
            or associations (including, without limitation, comprehensive general liability,
            hazard, rent and business interruption insurance) with respect to its properties
            (including all real properties leased or owned by it) and business, in such amounts and
            covering such risks as is required by any governmental authority having jurisdiction
            with respect thereto or as is carried generally in accordance with sound business
            practice by companies in similar businesses similarly situated and in any event in
            amount, adequacy and scope reasonably satisfactory to the Collateral Agent. All
            policies covering the Collateral are to be made payable to the Collateral Agent for the
            benefit of the Holder and the holder of the Other Notes, as its interests may appear,
            in case of loss, under a standard non-contributory “lender” or
            “secured party” clause and are to contain such other provisions as the
            Collateral Agent may require to fully protect the interest of the Holder and the holder
            of the Other Notes in the Collateral and to any payments to be made under such
            policies. All certificates of insurance are to be delivered to the Collateral Agent and
            the policies are to be premium prepaid, with the loss payable and additional insured
            endorsement in favor of the Collateral Agent and such other Persons as the Collateral
            Agent may designate from time to time, and shall provide for not less than 30
            days’ prior written notice to the Collateral Agent of the exercise of any right
            of cancellation. If the Company or any of its Subsidiaries fails to maintain such
            insurance, the Collateral Agent may arrange for such insurance, but at the
            Company’s expense and without any responsibility on the Collateral Agent’s
            part for obtaining the insurance, the solvency of the insurance companies, the adequacy
            of the coverage, or the collection of claims. Upon the occurrence and during the
            continuance of an Event of Default, the Collateral Agent shall have the sole right, in
            the name of the Holder and the holders of the Other Notes, the Company and its
            Subsidiaries, to file claims under any insurance policies, to receive, receipt and give
            acquittance for any payments that may be payable thereunder, and to execute any and all
            endorsements, receipts, releases, assignments, reassignments or other documents that
            may be necessary to effect the collection, compromise or settlement of any claims under
            any such insurance policies.

            

                
                      (n)           
            Operating Results Announcement. The Company shall announce (the date of such
            announcement, the “Announcement Date”) its operating results (the
            “Operating Results”) from which achievement of each Financial
            Milestone can be determined no later than (x) with respect to a Financial Milestone for
            a six month period ended June 30th (the “LSM Period”), the
            forty-fifth (45th) day after the end of such Fiscal Quarter ended June 30th
            or, (y) with respect to a Financial Milestone for the twelve month period ended
            December 31st (the “LTM Period”, and together with the LSM Period,
            the “Milestone Periods”), the ninetieth (90th) day after
            the last Fiscal Quarter of such fiscal year (each such date, the “Announcement
            Date Deadline”), including, without limitation, the EBITDA and Net Revenue
            for such Milestone Period, and, in the event the Company shall have achieved the
            Financial Milestone, such announcement shall include a statement to the effect that the
            Company has achieved the Financial Milestone for such Milestone Period ended as of such
            Fiscal Quarter; provided, however, that in the event the Company is delayed in
            announcing its Operating Results for any such Fiscal Quarter, the Company shall, in
            lieu of the foregoing, (i) publicly disclose (the “Interim
            Announcement”) on a Current Report on Form 8-K on or prior to the applicable
            Announcement Date Deadline that it has complied with all of its covenants under the
            Notes, including, without limitation, the achievement of the Financial Milestone for
            such Milestone Period ended as of such Fiscal Quarter and (ii) provide to the Holders a
            certification, in accordance with terms of the next sentence, certifying the same;
            provided, further, that if (A) the Company does not make the Interim Announcement by
            the applicable deadline or (B) subsequently, at the time of announcement of its
            Operating Results for such Fiscal Quarter, such Operating Results report EBITDA and/or
            Net Revenue for the applicable Milestone Period which are less than those set forth in
            the Interim Announcement, then, in each case, the Company shall be deemed to have
            failed to achieve the applicable Financial Milestone. On each Announcement Date or
            Interim Announcement Date, the Company shall also provide to the Holders a
            certification, executed on behalf of the Company by the Chief Financial Officer of the
            Company, certifying that the Company achieved the applicable Financial Milestone and,
            in the case of the Interim Announcement Date, setting for the EBITDA and Net Revenue
            for the applicable Milestone Period required by the foregoing sentence.

            

            -24-

            
            
            

            

                
            (16)           PARTICIPATION.
            The Holder, as the holder of this Note, shall be entitled to receive such dividends
            paid and distributions made to the holders of Common Stock to the same extent as if the
            Holder had converted this Note into Common Stock (without regard to any limitations on
            conversion herein or elsewhere) and had held such shares of Common Stock on the record
            date for such dividends and distributions. Payments under the preceding sentence shall
            be made concurrently with the dividend or distribution to the holders of Common
            Stock.

            

            
                (17)           
            VOTE TO ISSUE, OR CHANGE THE TERMS OF, NOTES. The affirmative vote at a meeting
            duly called for such purpose or the written consent without a meeting of the Required
            Holders shall be required for any change or amendment to this Note or the Other Notes.
            No consideration shall be offered or paid to any holder of Notes to amend or consent to
            a waiver or modification of the Notes unless the same consideration also is offered to
            all of the holders of Notes.

            

            
                (18)           
            TRANSFER. This Note and any shares of Common Stock issued upon conversion of this
            Note may be offered, sold, assigned or transferred by the Holder without the consent of
            the Company, subject only to the provisions of Section 2(f) of the Securities Purchase
            Agreement.

            

            
                (19)           
            REISSUANCE OF THIS NOTE.

            

                
                      (a)           
            Transfer. If this Note is to be transferred, the Holder shall surrender this Note
            to the Company, whereupon the Company will forthwith issue and deliver upon the order
            of the Holder a new Note (in accordance with Section 19(d)), registered as the Holder
            may request, representing the outstanding Principal being transferred by the Holder
            and, if less then the entire outstanding Principal is being transferred, a new Note (in
            accordance with Section 19(d)) to the Holder representing the outstanding Principal not
            being transferred. The Holder and any assignee, by acceptance of this Note, acknowledge
            and agree that, by reason of the provisions of Section 3(c)(iii) following conversion
            or redemption of any portion of this Note, the outstanding Principal represented by
            this Note may be less than the Principal stated on the face of this Note.

            

                
                      (b)           
            Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably
            satisfactory to the Company of the loss, theft, destruction or mutilation of this Note,
            and, in the case of loss, theft or destruction, of any indemnification undertaking by
            the Holder to the Company in customary form and, in the case of mutilation, upon
            surrender and cancellation of this Note, the Company shall execute and deliver to the
            Holder a new Note (in accordance with Section 19(d)) representing the outstanding
            Principal.

            

            -25-

            
            
            

            

                
                      (c)           
            Note Exchangeable for Different Denominations. This Note is exchangeable, upon the
            surrender hereof by the Holder at the principal office of the Company, for a new Note
            or Notes (in accordance with Section 19(d)) representing in the aggregate the
            outstanding Principal of this Note, and each such new Note will represent such portion
            of such outstanding Principal as is designated by the Holder at the time of such
            surrender.

            

                
                      (d)           
            Issuance of New Notes. Whenever the Company is required to issue a new Note
            pursuant to the terms of this Note, such new Note (i) shall be of like tenor with this
            Note, (ii) shall represent, as indicated on the face of such new Note, the Principal
            remaining outstanding (or in the case of a new Note being issued pursuant to Section
            19(a) or Section 19(c), the Principal designated by the Holder which, when added to the
            principal represented by the other new Notes issued in connection with such issuance,
            does not exceed the Principal remaining outstanding under this Note immediately prior
            to such issuance of new Notes), (iii) shall have an issuance date, as indicated on the
            face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall
            have the same rights and conditions as this Note, and (v) shall represent accrued and
            unpaid Interest and Late Charges, if any, on the Principal and Interest of this Note
            from the Issuance Date.

            

            
                (20)           
            REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The
            remedies provided in this Note shall be cumulative and in addition to all other
            remedies available under this Note and any of the other Transaction Documents at law or
            in equity (including a decree of specific performance and/or other injunctive relief),
            and nothing herein shall limit the Holder’s right to pursue actual and
            consequential damages for any failure by the Company to comply with the terms of this
            Note. Amounts set forth or provided for herein with respect to payments, conversion and
            the like (and the computation thereof) shall be the amounts to be received by the
            Holder and shall not, except as expressly provided herein, be subject to any other
            obligation of the Company (or the performance thereof). The Company acknowledges that a
            breach by it of its obligations hereunder will cause irreparable harm to the Holder and
            that the remedy at law for any such breach may be inadequate. The Company therefore
            agrees that, in the event of any such breach or threatened breach, the Holder shall be
            entitled, in addition to all other available remedies, to an injunction restraining any
            breach, without the necessity of showing economic loss and without any bond or other
            security being required.

            

            
                (21)           
            PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in
            the hands of an attorney for collection or enforcement or is collected or enforced
            through any legal proceeding or the Holder otherwise takes action to collect amounts
            due under this Note or to enforce the provisions of this Note or (b) there occurs any
            bankruptcy, reorganization, receivership of the Company or other proceedings affecting
            Company creditors’ rights and involving a claim under this Note, then the Company
            shall pay the costs incurred by the Holder for such collection, enforcement or action
            or in connection with such bankruptcy, reorganization, receivership or other
            proceeding, including, but not limited to, financial advisory fees and attorneys’
            fees and disbursements.

            

            
                (22)           
            CONSTRUCTION; HEADINGS. This Note shall be deemed to be jointly drafted by the
            Company and all the Purchasers and shall not be construed against any person as the
            drafter hereof. The headings of this Note are for convenience of reference and shall
            not form part of, or affect the interpretation of, this Note.

            

            -26-

            
            
            

            

            
                (23)           
            FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in
            the exercise of any power, right or privilege hereunder shall operate as a waiver
            thereof, nor shall any single or partial exercise of any such power, right or privilege
            preclude other or further exercise thereof or of any other right, power or
            privilege.

            

            
                (24)           
            DISPUTE RESOLUTION. In the case of a dispute as to the determination of (a) the
            Closing Bid Price, the Closing Sale Price or the Weighted Average Price or (b) the
            arithmetic calculation of the Conversion Rate or any Redemption Price, the Company
            shall submit the disputed determinations or arithmetic calculations via facsimile
            within one (1) Business Day of receipt, or deemed receipt, of the Conversion Notice or
            Redemption Notice or other event giving rise to such dispute, as the case may be, to
            the Holder. If the Holder and the Company are unable to agree upon such determination
            or calculation within one (1) Business Day of such disputed determination or arithmetic
            calculation being submitted to the Holder, then the Company shall, within one (1)
            Business Day submit via facsimile (a) the disputed determination of the Closing Bid
            Price, the Closing Sale Price or the Weighted Average Price to an independent,
            reputable investment bank selected by the Company and approved by the Holder or (b) the
            disputed arithmetic calculation of the Conversion Rate or any Redemption Price to the
            Company’s independent, outside accountant. The Company, at the Company’s
            expense, shall cause the investment bank or the accountant, as the case may be, to
            perform the determinations or calculations and notify the Company and the Holder of the
            results no later than five (5) Business Days from the time it receives the disputed
            determinations or calculations. Such investment bank’s or accountant’s
            determination or calculation, as the case may be, shall be binding upon all parties
            absent demonstrable error.

            

            
                (25)           
            NOTICES; PAYMENTS.

            

                
                      (a)           
            Notices. Whenever notice is required to be given under this Note, unless otherwise
            provided herein, such notice shall be given in accordance with Section 9(f) of the
            Securities Purchase Agreement. The Company shall provide the Holder with prompt written
            notice of all actions taken pursuant to this Note, including in reasonable detail a
            description of such action and the reason therefore. Without limiting the generality of
            the foregoing, the Company will give written notice to the Holder (i) immediately upon
            any adjustment of the Conversion Price, setting forth in reasonable detail, and
            certifying, the calculation of such adjustment and (ii) at least twenty (20) days prior
            to the date on which the Company closes its books or takes a record (A) with respect to
            any dividend or distribution upon the Common Stock, (B) with respect to any pro rata
            subscription offer to holders of Common Stock or (C) for determining rights to vote
            with respect to any Fundamental Transaction, dissolution or liquidation, provided in
            each case that such information shall be made known to the public prior to or in
            conjunction with such notice being provided to the Holder.

            

                
                      (b)           
            Payments. Whenever any payment of cash is to be made by the Company to any Person
            pursuant to this Note, such payment shall be made in lawful money of the United States
            of America by a check drawn on the account of the Company and sent via overnight
            courier service to such Person at such address as previously provided to the Company in
            writing (which address, in the case of each of the Purchasers, shall initially be as
            set forth on the Schedule of Buyers attached to the Securities Purchase Agreement);
            provided that the Holder may elect to receive a payment of cash via wire transfer of
            immediately available funds by providing the Company with prior written notice setting
            out such request and the Holder’s wire transfer instructions. Whenever any amount
            expressed to be due by the terms of this Note is due on any day which is not a Business
            Day, the same shall instead be due on the next succeeding day which is a Business Day
            and, in the case of any Interest Date which is not the date on which this Note is paid
            in full, the extension of the due date thereof shall not be taken into account for
            purposes of determining the amount of Interest due on such date. Any amount of
            Principal or other amounts due under the Transaction Documents which is not paid when
            due shall result in a late charge being incurred and payable by the Company in an
            amount equal to interest on such amount at the rate of eighteen percent (18%) per annum
            from the date such amount was due until the same is paid in full (“Late
            Charge”).

            

            -27-

            
            
            

            

            
                (26)           
            CANCELLATION. After all Principal, accrued Interest and other amounts at any time
            owed on this Note have been paid in full, this Note shall automatically be deemed
            canceled, shall be surrendered to the Company for cancellation and shall not be
            reissued.

            

            
                (27)           
            WAIVER OF NOTICE. To the extent permitted by law, the Company hereby waives demand,
            notice, protest and all other demands and notices in connection with the delivery,
            acceptance, performance, default or enforcement of this Note and the Securities
            Purchase Agreement.

            

            
                (28)           
            GOVERNING LAW; JURISDICTION; SEVERABILITY; JURY TRIAL. This Note shall be construed
            and enforced in accordance with, and all questions concerning the construction,
            validity, interpretation and performance of this Note shall be governed by, the
            internal laws of the State of New York, without giving effect to any choice of law or
            conflict of law provision or rule (whether of the State of New York or any other
            jurisdictions) that would cause the application of the laws of any jurisdictions other
            than the State of New York. The Company hereby irrevocably submits to the exclusive
            jurisdiction of the state and federal courts sitting in The City of New York, Borough
            of Manhattan, for the adjudication of any dispute hereunder or in connection herewith
            or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
            waives, and agrees not to assert in any suit, action or proceeding, any claim that it
            is not personally subject to the jurisdiction of any such court, that such suit, action
            or proceeding is brought in an inconvenient forum or that the venue of such suit,
            action or proceeding is improper. Nothing contained herein shall be deemed to limit in
            any way any right to serve process in any manner permitted by law. In the event that
            any provision of this Note is invalid or unenforceable under any applicable statute or
            rule of law, then such provision shall be deemed inoperative to the extent that it may
            conflict therewith and shall be deemed modified to conform with such statute or rule of
            law. Any such provision which may prove invalid or unenforceable under any law shall
            not affect the validity or enforceability of any other provision of this Note. Nothing
            contained herein shall be deemed or operate to preclude the Holder from bringing suit
            or taking other legal action against the Company in any other jurisdiction to collect
            on the Company’s obligations to the Holder, to realize on any collateral or any
            other security for such obligations, or to enforce a judgment or other court ruling in
            favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
            AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
            OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED
            HEREBY.

            

            -28-

            
            
            

            

            
                (29)           
            CERTAIN DEFINITIONS. For purposes of this Note, the following terms shall have the
            following meanings:

            

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

            

                
                      (b)           
            “Available Conversion/Redemption Amount” means the product of (x)
            20% of the aggregate dollar trading volume (as reported on Bloomberg) of the Common
            Stock on the Principal Market over the thirty (30) consecutive day period immediately
            prior to the Holder Optional Conversion/Redemption Notice Date and (y) the Interest
            Conversion Price.

            

                
                      (c)           
            “Available Redemption Amount” means on each of the one (1) year
            anniversary and the two (2) year anniversary of the Issuance Date, an amount equal to
            one-third of the original Principal amount of this Note on the Issuance
            Date.

            

                
                      (d)           
            “Average Market Price” means, for any given date, the lesser of (i)
            the arithmetic average of the lowest Weighted Average Price of the Common Stock during
            the fifteen (15) consecutive Trading Days ending on the Trading Day immediately prior
            to such given date (the “Measuring Period”) and (ii) the arithmetic
            average of the Weighted Average Price of the Common Stock of the three Trading Days
            with the lowest Weighted Average Price of the Common Stock during the Measuring Period;
            provided, that all such determinations shall be appropriately adjusted for any stock
            split, stock dividend, stock combination or other similar transaction that
            proportionately decreases or increases the Common Stock during such periods.

            

                
                      (e)           
            “Bloomberg” means Bloomberg Financial Markets.

            

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

            

                
                      (g)           
            “Calendar Quarter” means each of: the period beginning on and
            including January 1 and ending on and including March 31; the period beginning on and
            including April 1 and ending on and including June 30; the period beginning on and
            including July 1 and ending on and including September 30; and the period beginning on
            and including October 1 and ending on and including December 31.

            

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

            

            -29-

            
            
            

            

                
                      (i)           
            “Closing Bid Price” and “Closing Sale Price”
            means, for any security as of any date, the last closing bid price and last closing
            trade price, respectively, for such security on the Principal Market, as reported by
            Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and
            does not designate the closing bid price or the closing trade price, as the case may
            be, then the last bid price or last trade price, respectively, of such security prior
            to 4:00:00 p.m., New York Time, as reported by Bloomberg, or, if the Principal Market
            is not the principal securities exchange or trading market for such security, the last
            closing bid price or last trade price, respectively, of such security on the principal
            securities exchange or trading market where such security is listed or traded as
            reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or
            last trade price, respectively, of such security in the over-the-counter market on the
            electronic bulletin board for such security as reported by Bloomberg, or, if no closing
            bid price or last trade price, respectively, is reported for such security by
            Bloomberg, the average of the bid prices, or the ask prices, respectively, of any
            market makers for such security as reported in the “pink sheets” by Pink
            Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or
            the Closing Sale Price cannot be calculated for a security on a particular date on any
            of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case
            may be, of such security on such date shall be the fair market value as mutually
            determined by the Company and the Holder. If the Company and the Holder are unable to
            agree upon the fair market value of such security, then such dispute shall be resolved
            pursuant to Section 24. All such determinations to be appropriately adjusted for any
            stock dividend, stock split, stock combination or other similar transaction during the
            applicable calculation period.

            

                
                      (j)           
            “Closing Date” shall have the meaning set forth in the Securities
            Purchase Agreement which corresponds to the date this Note and the Other Notes were
            initially issued pursuant to the terms of the Securities Purchase Agreement.

            

                
                      (k)           
            “Consolidated Net Interest Expense” means, for any applicable
            period, gross interest expense of the Company and its Subsidiaries for such period less
            interest income for such period, each determined on a consolidated basis and in
            accordance with GAAP.

            

                
                      (l)           
            “Consolidated Net Income” means, for any applicable period, the net
            income (loss) of the Company and its Subsidiaries for such period, determined on a
            consolidated basis and in accordance with GAAP, but excluding from the determination of
            Consolidated Net Income (without duplication) (a) any extraordinary or non
            recurring gains or losses or gains or losses from dispositions, (b) restructuring
            charges, (c) any tax refunds, net operating losses or other net tax benefits and
            (d) effects of discontinued operations.

            

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

            

            -30-

            
            
            

            

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

            

                
                      (o)           
            “EBITDA” means, with respect to any Person and its Subsidiaries for
            any applicable Fiscal Quarters, the Consolidated Net Income of such Person and its
            Subsidiaries as set forth in the financial statements of the Company contained in the
            Form 10-Q or Form 10-K of the Company for the applicable Fiscal Quarter,
            plus without duplication, the sum of the following amounts of the Company
            and its Subsidiaries for such period to the extent deducted in determining Consolidated
            Net Income of such Persons for such period: (i) Consolidated Net Interest Expense, (ii)
            income tax expense, (iii) depreciation expense and (iv) amortization
            expense.

            

                
                      (p)           
            “Eligible Market” means the Principal Market, The New York Stock
            Exchange, Inc., the American Stock Exchange, The NASDAQ Global Select Market, The
            NASDAQ Global Market or The NASDAQ Capital Market, or any market that is a successor to
            any of the foregoing.

            

                
                      (q)           
            “Equity Conditions” means that each of the following conditions is
            satisfied: (i) on each day during the period beginning six (6) month prior to the
            applicable date of determination and ending on and including the applicable date of
            determination (the “Equity Conditions Measuring Period”), either (x)
            the Registration Statement filed pursuant to the Registration Rights Agreement shall be
            effective and available for the resale of all remaining Registrable Securities in
            accordance with the terms of the Registration Rights Agreement and there shall not have
            been any Grace Periods (as defined in the Registration Rights Agreement) or (y) all
            shares of Common Stock issuable upon conversion of the Notes and exercise of the
            Warrants shall be eligible for sale without restriction and without the need for
            registration under any applicable federal or state securities laws; (ii) on each day
            during the Equity Conditions Measuring Period, the Common Stock is designated for
            quotation on the Principal Market or any other Eligible Market and shall not have been
            suspended from trading on such exchange or market (other than suspensions of not more
            than two (2) days and occurring prior to the applicable date of determination due to
            business announcements by the Company) nor shall delisting or suspension by such
            exchange or market been threatened or pending either (A) in writing by such exchange or
            market or (B) by falling below the then effective minimum listing maintenance
            requirements of such exchange or market; (iii) during the one (1) year period ending on
            and including the date immediately preceding the applicable date of determination, the
            Company shall have delivered shares of Common Stock upon conversion of the Notes and
            upon exercise of the Warrants to the holders on a timely basis as set forth in Section
            3(c)(ii) hereof (and analogous provisions under the Other Notes) and Section 1(a) of
            the Warrants; (iv) any applicable shares of Common Stock to be issued in connection
            with the event requiring determination may be issued in full without violating (A)
            Section 3(d)(i) hereof, (B) Section 3(d)(ii) and (C) the rules or regulations of the
            Principal Market or any applicable Eligible Market; (v) the Company shall not have
            failed to timely make any payments within five (5) Business Days of when such payment
            is due pursuant to any Transaction Document; (vi) during the Equity Conditions
            Measuring Period, there shall not have occurred either (A) the public announcement of a
            pending, proposed or intended Fundamental Transaction which has not been abandoned,
            terminated or consummated, or (B) an Event of Default or (C) an event that with the
            passage of time or giving of notice would constitute an Event of Default; (vii) the
            Company shall have no knowledge of any fact that would cause (x) the Registration
            Statements required pursuant to the Registration Rights Agreement not to be effective
            and available for the resale of all remaining Registrable Securities in accordance with
            the terms of the Registration Rights Agreement or (y) any shares of Common Stock
            issuable upon conversion of the Notes and shares of Common Stock issuable upon exercise
            of the Warrants not to be eligible for sale without restriction pursuant to Rule 144(k)
            and any applicable state securities laws; and (viii) the Company otherwise shall have
            been in compliance with and shall not have breached any provision, covenant,
            representation or warranty of any Transaction Document.

            

            -31-

            
            
            

            

                
                      (r)           
            “Equity Conditions Failure” means that (i) on any day during the
            period commencing ten (10) Trading Days prior to the applicable Interest Notice Date
            through the applicable Interest Date, (ii) on any day during the period commencing ten
            (10) Trading Days prior to the applicable Mandatory Conversion Notice Date through the
            applicable Mandatory Conversion Date, (iii) on any day during the period commencing ten
            (10) Trading Days prior to the applicable Holder Optional Redemption Notice Date
            through the applicable Optional Redemption Date, the Equity Conditions have not been
            satisfied (or waived in writing by the Holder) or (iv) on any day during the period
            commencing ten (10) Trading Days prior to the applicable Change of Control Notice Date
            through the applicable Change of Control Conversion Date.

            

                
                      (s)           
            “Equity Value Redemption Premium” means for any Change of Control
            Notice or Event of Default Notice, as applicable, delivered or required to be delivered
            in connection with a Change of Control or Event of Default, as applicable,
            150%.

            

                
                      (t)           
            “Excluded Securities” means any Common Stock issued or issuable: (i)
            in connection with any Approved Stock Plan; (ii) upon conversion of the Notes or the
            exercise of the Warrants; (iii) in connection with the payment of any Interest Shares
            on the Notes; and (iv) upon exercise of any Options or Convertible Securities which are
            outstanding on the day immediately preceding the Subscription Date, provided that the
            terms of such Options or Convertible Securities are not amended, modified or changed on
            or after the Subscription Date.

            

                
                      (u)           
            “Financial Milestones” means:

            

                
                      
                      (i)           
            $500,000 of Net Revenues reported for the twelve month period ended December 31,
            2007;

            

                
                      
                      (ii)           
            $6.0 million of Net Revenues and $1 million of EBITDA reported for the six month period
            ended June 30, 2008;

            

                
                      
                      (iii)           
            $15.5 million of Net Revenues and $2.5 million of EBITDA reported for the twelve month
            period ended December 31, 2008;

            

                
                      
                      (iv)           
            $12.0 million of Net Revenues and $4.0 million of EBITDA reported for the six month
            period ended June 30, 2009; and

            

                
                      
                      (v)           
            $25.0 million of Net Revenues and $8.5 million of EBITDA reported for the twelve month
            period ended December 31, 2009.

            

            -32-

            
            
            

            

                
                      
            (v)            “Fiscal
            Quarters” means each of the fiscal quarters adopted by the Company for
            financial reporting purposes that correspond to the Company’s fiscal year that
            ends on December 31, or such other fiscal quarter adopted by the Company for financial
            reporting purposes in accordance with GAAP.

            

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

            

                
                      (x)           
            “GAAP” means United States generally accepted accounting principles,
            consistently applied.

            

                
                      (y)           
            “Holder Pro Rata Amount” means a fraction (i) the numerator of which
            is the Principal amount of this Note on the applicable Closing Date and (ii) the
            denominator of which is the aggregate principal amount of all Notes issued to the
            initial purchasers pursuant to the Securities Purchase Agreement on the applicable
            Closing Date.

            

                
                      (z)           
            “Optional Conversion Volume Limitation” means 20% of the aggregate
            dollar trading volume (as reported on Bloomberg) of the Common Stock on the Principal
            Market over the twenty (20) consecutive Trading Day period immediately prior to the
            applicable Option Conversion/Redemption Notice Date.

            

            -33-

            
            
            

            

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

            

                
                      (bb)           
            “Interest Conversion Price” means, with respect to any Interest Date
            that price which shall be the price computed as 85% of the Average Market Price
            immediately preceding the applicable Interest Date or Share Delivery Date, as
            applicable (each, an “Interest Measuring Period”). All such
            determinations to be appropriately adjusted for any stock split, stock dividend, stock
            combination or other similar transaction that proportionately decreases or increases
            the Common Stock during the applicable Interest Measuring Period.

            

                
                      (cc)           
            “Interest Notice Due Date” means the sixteenth (16th)
            Trading Day prior to the applicable Interest Date.

            

                
                      (dd)           
            “InterestRate” means, nine and one-quarter percent (9.25%)
            per annum, subject to adjustment as set forth in Section 2 hereof.

            

                
                      (ee)           
            “Mandatory Conversion Volume Limitation” means 20% of the aggregate
            dollar trading volume (as reported on Bloomberg) of the Common Stock on the Principal
            Market over the twenty (20) consecutive Trading Day period immediately prior to the
            applicable Mandatory Conversion Notice Date.

            

                
                      (ff)           
            “Net Revenue” means the consolidated net revenue of a Company and
            its Subsidiaries calculated in accordance with US GAAP and all applicable laws, as
            historically applied by the Company and its Subsidiaries, including, without
            limitation, such reductions for all pricing discounts and allowances, credits,
            allowances, returns and refunds, promotions, fraud losses, freight, shipping,
            insurance, broker fees, revenue-based fees, other fees, sales taxes, value added taxes
            and other taxes.

            

                
                      (gg)           
            “Optional Conversion Price” means, the lower of (i) the applicable
            Conversion Price and (ii) that price which shall be computed as 85% of the Average
            Market Price ending on the Trading Day immediately prior to the Optional
            Conversion/Redemption Date. All such determinations shall be appropriately adjusted for
            any stock split, stock dividend, stock combination during or other similar transaction
            that proportionately decreases or increases the price of the Common Stock during the
            applicable period during which the Average Market Price is calculated.

            

                
                      
            (hh)           
            “Options” means any rights, warrants or options to subscribe for or
            purchase shares of Common Stock or Convertible Securities.

            

            -34-

            
            
            

            

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

            

                
                      (jj)           
            “Permitted Indebtedness” means (i) Indebtedness incurred by the
            Company that is made expressly subordinate in right of payment to the Indebtedness
            evidenced by this Note, as reflected in a written agreement acceptable to the Holder
            and approved by the Holder in writing, and which Indebtedness does not provide at any
            time for (1) the payment, prepayment, repayment, repurchase or defeasance, directly or
            indirectly, of any principal or premium, if any, thereon until ninety-one (91) days
            after the Maturity Date or later and (2) total interest and fees at a rate in excess of
            the initial Interest Rate per annum (such Indebtedness, the “Subordinated
            Indebtedness”); provided, however, that any Subordinated Indebtedness
            incurred in connection with the repayment of the Notes in full shall not be limited by
            clause (2) of the foregoing, (ii) Indebtedness secured by Permitted Liens, (iii)
            Indebtedness under this Note and the Other Notes, (iv) the Permitted Senior
            Indebtedness, and (iv) extensions, refinancings and renewals of any items in clauses
            (i) through (ii) above, provided that the principal amount is not increased or the
            terms modified to impose more burdensome terms upon the Company or its Subsidiaries, as
            the case may be.

            

            -35-

            
            
            

            

                
                      (kk)           
            “Permitted Liens” means (i) any Lien for taxes not yet due or
            delinquent or being contested in good faith by appropriate proceedings for which
            adequate reserves have been established in accordance with GAAP, (ii) any statutory
            Lien arising in the ordinary course of business by operation of law with respect to a
            liability that is not yet due or delinquent, (iii) any Lien created by operation of
            law, such as materialmen’s liens, mechanics’ liens and other similar liens,
            arising in the ordinary course of business with respect to a liability that is not yet
            due or delinquent or that are being contested in good faith by appropriate proceedings,
            (iv) Liens (A) upon or in any equipment (as defined in the Security Agreement) acquired
            or held by the Company or any of its Subsidiaries to secure the purchase price of such
            equipment or indebtedness incurred solely for the purpose of financing the acquisition
            or lease of such equipment, or (B) existing on such equipment at the time of its
            acquisition, provided that the Lien is confined solely to the property so acquired and
            improvements thereon, and the proceeds of such equipment, (v) Liens incurred in
            connection with the extension, renewal or refinancing of the indebtedness secured by
            Liens of the type described in clauses (i) and (iv) above, provided that any extension,
            renewal or replacement Lien shall be limited to the property encumbered by the existing
            Lien and the principal amount of the Indebtedness being extended, renewed or refinanced
            does not increase, (vi) Liens securing the Company’s obligations under the Notes;
            (vii) leases or subleases and licenses and sublicenses granted to others in the
            ordinary course of the Company’s business, not interfering in any material
            respect with the business of the Company and its Subsidiaries taken as a whole,
            (viii) Liens in favor of customs and revenue authorities arising as a matter of
            law to secure payments of custom duties in connection with the importation of goods,
            (ix) Liens arising from judgments, decrees or attachments in circumstances not
            constituting an Event of Default under Section 4(a)(viii), and (x) Liens securing the
            Permitted Senior Indebtedness on inventory and accounts receivables of the Company and
            its Subsidiaries.

            

                
                      (ll)           
            “Permitted Senior Indebtedness” means Indebtedness in an aggregate
            amount not to exceed $3 million, which utilizes a borrowing base providing availability
            based on the eligible inventory and accounts receivables of the Company and its
            Subsidiaries.

            

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

            

                
                      (nn)           
            “Principal Market” means the OTB Bulletin Board.

            

                
                      (oo)           
            “Redemption Notices” means, collectively, any Event of Default
            Redemption Notices, any Change of Control Redemption Notices, and any Holder Optional
            Redemption Notices (if an Optional Redemption has been elected) each of the foregoing,
            individually, a Redemption Notice.

            

                
                      (pp)           
            “Redemption Premium” means (i) in the case of the Events of Default
            described in Section 4(a)(i) — (vi) and (ix) — (xii), 125% or (ii) in the
            case of the Events of Default described in Section 4(a)(vii) — (viii),
            100%.

            

                
                      (qq)           
            “Redemption Prices” means, collectively, the Event of Default
            Redemption Price, Change of Control Redemption Price and the Holder Optional Redemption
            Price, each of the foregoing, individually, a Redemption Price.

            

                
                      (rr)           
            “Registration Rights Agreement” means that certain Registration
            Rights Agreement dated as of the Subscription Date by and among the Company and the
            initial holders of the Notes.

            

                
                      (ss)           
            “Required Holders” means the holders of Notes representing at least
            majority of the aggregate principal amount of the Notes then outstanding.

            

                
                      (tt)           
            “SEC” means the United States Securities and Exchange
            Commission.

            

                
                      (uu)           
            “Securities Purchase Agreement” means that certain securities
            purchase agreement dated as of the Subscription Date by and among the Company and the
            initial holders of the Notes pursuant to which the Company issued the Notes and
            Warrants.

            

                
                      (vv)           
            “Subscription Date” means August 31, 2007.

            

                
                      (ww)           
            “Subsidiary” means any entity in which the Company, directly or
            indirectly, owns any of the capital stock or holds an equity or similar
            interest.

            

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

            

            -36-

            
            
            

            

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

            

                
                      (zz)           
            “Volume Limitation” means 20% of the aggregate dollar trading volume
            (as reported on Bloomberg) of the Common Stock on the Principal Market over the twenty
            (20) consecutive Trading Day period immediately prior to the applicable Interest Notice
            Date.

            

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

            

                
                      (bbb)           
            “Warrants” has the meaning ascribed to such term in the Securities
            Purchase Agreement, and shall include all warrants issued in exchange therefor or
            replacement thereof.

            

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

            

            -37-

            
            
            

            

            
                (30)           
            DISCLOSURE. Upon receipt or delivery by the Company of any notice in accordance
            with the terms of this Note, unless the Company has in good faith determined that the
            matters relating to such notice do not constitute material, nonpublic information
            relating to the Company or its Subsidiaries, the Company shall within one (1) Business
            Day after any such receipt or delivery publicly disclose such material, nonpublic
            information on a Current Report on Form 8-K or otherwise. In the event that the Company
            believes that a notice contains material, nonpublic information, relating to the
            Company or its Subsidiaries, the Company shall indicate to the Holder contemporaneously
            with delivery of such notice, and in the absence of any such indication, the Holder
            shall be allowed to presume that all matters relating to such notice do not constitute
            material, nonpublic information relating to the Company or its Subsidiaries.

            

            [Signature Page
            Follows]

            

            

            

            

            

            

            -38-

            
            
            

            

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

            	
                    	
                    
	
                    	AMISH
                    NATURALS INC.

                    

                    

                    By: _______________________________________________

                           Name:

                           Title: 

            

            

            

            

            

            

            

            

            

            -39-

            
            
            

            

            EXHIBIT
            I

            

            AMISH NATURALS
            INC.

            

            CONVERSION
            NOTICE

            

            Reference is made to the Senior
            Secured Convertible Note (the “Note”) issued to the undersigned by
            Amish Naturals Inc. (the “Company”). In accordance with and pursuant
            to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined
            in the Note) of the Note indicated below into shares of Common Stock par value $0.001
            per share (the “Common Stock”) of the Company, as of the date
            specified below.

            	
                        
                        Date of Conversion:

                    	
                     
	
                        
                        Aggregate Conversion Amount to be converted:

                    	
                     
	
                        
                        Please confirm the following information:

                    
	
                        
                        Conversion Price:

                    	
                     
	
                        
                        Number of shares of Common Stock to be issued:

                    	
                     

            

            

Notwithstanding anything to the
contrary contained herein, this Conversion Notice shall             constitute a
representation by the holder submitting this Conversion Notice that, after
            giving effect to the conversion provided for in this Conversion Notice, such
holder             (together with its affiliates) will not have beneficial ownership
(together with the             beneficial ownership of such Person’s affiliates) of
a number of shares of Common             Stock which exceeds the Maximum Percentage.  

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

            	
                        
                        Issue to:

                    	
                     
	
                     	
                     
	
                     	
                     
	
                        
                        Facsimile Number:

                    	
                     
	
                        
                        Authorization:

                    	
                     
	
                        
                        By:

                    	
                     
	
                        
                        Title:

                    	
                     
	
                        
                        Dated:

                    	
                     
	
                        
                        Account Number:

                    	
                     
	
                        
                          (if electronic book entry transfer)

                    	
                     
	
                        
                        Transaction Code Number:

                    	
                     
	
                        
                          (if electronic book entry transfer)

                    	
                     

            

            

            
            
            

            

            
            ACKNOWLEDGMENT

            

            
                    The
            Company hereby acknowledges this Conversion Notice and hereby directs Signature Stock
            Transfer, Inc. to issue the above indicated number of shares of Common Stock in
            accordance with the Transfer Agent Instructions dated September [__], 2007 from the
            Company and acknowledged and agreed to by Signature Stock Transfer, Inc..

            	
                    	
                    
	
                    	AMISH
                    NATURALS INC.

                    

                    

                    By: _______________________________________________

                           Name:

                           Title:

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