Document:

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                                                                   EXHIBIT 10.18

                 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT
                 ----------------------------------------------

         GMAC Commercial Finance LLC ("LENDER") and I/O Magic Corporation (the
"BORROWER") enter into this First Amendment to Loan and Security Agreement (this
"AMENDMENT") on June 30, 2005.

                                    RECITALS
                                    --------

         A. Borrower and Lender are parties to a Loan and Security Agreement
dated March 9, 2005 (as amended, the "LOAN AGREEMENT").

         B. Borrower has requested certain amendments to the Loan Agreement.
Unless defined in this Amendment, capitalized terms shall have the meanings set
forth in the Loan Agreement and references to Sections are to Sections of the
Loan Agreement.

         Based on the foregoing recitals (which are part of this Amendment and
intended to be representations and warranties of the applicable parties) and in
consideration of the mutual promises and agreements set forth below and other
good and valuable consideration, the receipt and sufficiency of which is
acknowledged, the parties agree as follows:

                              TERMS AND CONDITIONS
                              --------------------

         1. AMENDMENTS.

                  A.       The definition of Measurement Period is amended to
                           read as follows:

                           "Measurement Period" means the 3 month period ending
                           June 30, 2005, the 6 month period ending September
                           30, 2005, the 9 month period ending December 31,
                           2005, the 12 month period ending March 31, 2006 and
                           the 12 month periods ending on each June 20,
                           September 30, December 31 and March 31 thereafter.

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                  B.       The definition of Static Reserve is amended to read
                           as follows:

                           "STATIC RESERVE" means initially $1 million, with
                           such amount reduced to $500,000 if Lender is
                           satisfied, in its Discretion, (a) with Borrowers
                           third quarter fiscal year 2005 operating results, (b)
                           that Borrower has met its revised budget presented to
                           Lender on or about May 31, 2005, and (c) no Event of
                           Default has occurred and is continuing.

                  C.       Section 8.13 of the Loan Agreement is amended to read
                           as follows:

                           8.13 FIXED CHARGE COVERAGE RATIO. Maintain, as of the
                           end of the Measurement Periods ending June 30, 2005
                           and September 30, 2005, a Fixed Charge Coverage Ratio
                           of at least 1.2 to 1.0, and at least 1.5 to 1.0 for
                           all Measurement Periods thereafter.

         2. WAIVER. Lender waives any defaults based on Borrower's failure to
satisfy the Fixed Charge Coverage Ratio for the months of April and May, 2005;
provided, however, that this waiver shall not affect Borrower's obligation to
maintain the Fixed Charge Coverage Ratio (as amended by paragraph 1A above) for
the Measurement Period ending June 30, 2005.

         3. INVENTORY ADVANCES. Subject to Lender's right to obtain updated
appraisals of Borrower's Inventory and to change the effective advance rate
against Eligible Inventory, based on a recent appraisal of Borrower's Inventory,
after execution of this Amendment, the Borrowing Base will include Eligible
inventory at 32.2% of cost (which represents 85% of NOLV of Inventory).

         4. FEE. Borrower shall pay Lender a $10,000 amendment fee upon
execution of this Amendment, which fee shall be fully earned on the date paid.

         5. REAFFIRMATION. Borrower reaffirms, ratifies and confirms its
obligations under the Loan Documents as amended hereby and acknowledges that all
the terms and conditions in the Loan Documents remain in full force and effect.

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         6. ENTIRE AGREEMENT, ETC. This document contains the entire agreement
of the parties in connection with the subject matter of this Amendment and
cannot be changed or terminated orally. All prior agreements, understandings,
representations, warranties and negotiations regarding the subject matter
hereof, if any, are merged into this Amendment. This Amendment shall be deemed
part of the Loan Agreement for all purposes. Time is of the essence as to each
and every term and provision in this Amendment.

         7. AUTHORITY. The individual signing on behalf of Borrower represents
that all necessary corporate action to authorize him to enter into this
Amendment has been taken, including, without limitation, any members or board of
directors approvals and/or resolutions necessary to authorize execution of this
Amendment.

         8. COUNTERPARTS. This Amendment may be executed in counterparts, each
of which when so executed and delivered shall be deemed an original, and all of
such counterparts together shall constitute but one and the same agreement.
Further, facsimile copies of signatures shall be treated as original signatures
for all purposes.

         9. CONFLICTS. If there is an express conflict between the terms of this
Amendment and the terms of the Loan Documents, the terms of this Amendment shall
govern and control.

         10. GOVERNING LAW. This Amendment shall be governed by, and construed
and enforced in accordance with, the laws of the State of Michigan.

         11. WAIVER OF JURY TRIAL/CONSULTATION WITH COUNSEL. THE PARTIES HERETO
ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL RIGHT, BUT THAT
THIS RIGHT MAY BE WAIVED. LENDER AND BORROWER EACH HEREBY KNOWINGLY, VOLUNTARILY

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AND WITHOUT COERCION, WAIVE ALL RIGHTS TO A TRIAL BY JURY OF ALL DISPUTES
ARISING OUT OF OR IN RELATION TO THIS AMENDMENT OR ANY OTHER AGREEMENTS BETWEEN
THE PARTIES. NO PARTY SHALL BE DEEMED TO HAVE RELINQUISHED THE BENEFIT OF THIS
WAIVER OF JURY TRIAL UNLESS SUCH RELINQUISHMENT IS IN A WRITTEN INSTRUMENT
SIGNED BY THE PARTY TO WHICH SUCH RELINQUISHMENT WILL BE CHARGED. BORROWER
ACKNOWLEDGES THAT (1) IT HAS CONSULTED WITH COUNSEL AND OTHER ADVISORS OF ITS
CHOICE, AND AFTER CONSULTING WITH SUCH COUNSEL AND ADVISORS, IT ACKNOWLEDGES
THAT SUCH COUNSEL HAS EXPLAINED THE LEGAL IMPLICATIONS OF ENTERING INTO THIS
AMENDMENT. AND KNOWINGLY, VOLUNTARILY AND WITHOUT DURESS, COERCION, UNLAWFUL
RESTRAINT, INTIMIDATION OR COMPULSION, ENTERS INTO THIS AMENDMENT, BASED UPON
SUCH ADVICE AND COUNSEL AND IN THE EXERCISE OF ITS BUSINESS JUDGMENT, (2) IT HAS
CAREFULLY AND COMPLETELY READ ALL OF THE TERMS AND PROVISIONS OF THIS AMENDMENT
AND IS NOT RELYING ON THE OPINIONS OR ADVICE OF LENDER OR ITS AGENTS OR
REPRESENTATIVES IN ENTERING INTO THIS AMENDMENT. THIS AMENDMENT HAS BEEN ENTERED
IN EXCHANGE FOR GOOD AND VALUABLE CONSIDERATION, RECEIPT OF WHICH THE PARTIES
HERETO ACKNOWLEDGE.

                                                     GMAC COMMERCIAL FINANCE LLC

                                                     By: /s/ Mark Tito
                                                         -----------------------

                                                     Print Name: Mark Tito
                                                                 ---------------

                                                     Title: VICE PRESIDENT
                                                            --------------------

                                                     I/O MAGIC CORPORATION

                                                     By: /s/ Steve Gillings
                                                         -----------------------
                                                     Print Name: Steve Gillings
                                                                 ---------------
                                                     Title: CFO
                                                            --------------------<PAGE>

                                                                     EXHIBIT 4.1

                  FORM OF 7% SENIOR CONVERTIBLE PROMISSORY NOTE

          THE SECURITY REPRESENTED HEREBY, AND THE SECURITIES ISSUABLE
          UPON CONVERSION OR REDEMPTION HEREOF, HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE
          SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST
          THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
          OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
          REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN
          EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS
          WHICH, IN THE OPINION OF COUNSEL FOR THE HOLDER, WHICH
          COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO COUNSEL
          FOR THIS COMPANY, IS AVAILABLE.

                               DEBT RESOLVE, INC.

                      7% SENIOR CONVERTIBLE PROMISSORY NOTE

No.  _____________

US$________________                                                June 28, 2005

     THIS NOTE is one of a duly authorized issue of unsecured convertible
promissory notes (each, a "NOTE" and collectively, the "NOTES") of Debt Resolve,
Inc., a Delaware corporation (the "COMPANY") issued pursuant to that certain
Securities Purchase Agreement, dated June 28, 2005 (the "SECURITIES PURCHASE
AGREEMENT"), between the Company, the Holder (as defined below) and certain
other parties. The Notes are designated as the 7% SENIOR CONVERTIBLE PROMISSORY
NOTES, in an aggregate maximum principal face value for all Notes of this series
(the "SERIES") of up to Three Million United States Dollars (US$3,000,000).

     FOR VALUE RECEIVED, the Company promises to pay to the order of the
registered holder hereof and its successors and assigns (the "HOLDER"), the
principal sum of ________________________ Dollars ($_____________.00), or such
other amount as shall then equal the outstanding principal amount hereof, in
accordance with the terms hereof, and to pay interest on the principal sum
outstanding, at the rate of seven percent (7%) per annum. Accrual of interest on
the outstanding principal amount shall commence on the date hereof and shall
continue until payment in full of the outstanding principal amount has been made
or duly provided for, or until the entire outstanding principal amount of the
Note has been converted. This Note is unsecured.

     The Notes are being sold pursuant to the following agreements and
instruments (collectively, with the Notes, the "TRANSACTION DOCUMENTS"): (i) the
Securities Purchase Agreement, (ii) a term sheet/risk factor booklet, (iii) a
registration rights agreement, (iv) a lock-up agreement and (v) a common stock

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purchase warrant (each, a "WARRANT" and, collectively with the Notes and the
shares of Common Stock underlying the Notes and the Warrants, the "SECURITIES").
The Holder takes this Note subject to the terms and restrictions set forth in
the Transaction Documents and shall be entitled to certain rights and privileges
as set forth in the Transaction Documents.

     The following is a statement of the rights of the Holder of this Note and
the terms and conditions to which this Note is subject, and to which the Holder,
by acceptance of this Note, agrees:

     1. Principal Repayment. This Note and any accrued interest hereunder will
become due and payable in accordance with the terms hereof upon the earlier of:
(i) the consummation of any initial public offering (an "IPO") of the Company's
common stock, par value $.001 per share (the "COMMON STOCK") and (ii) June 28,
2006 (such earlier date, the "MATURITY DATE"), unless this Note has been
converted as described below.

     2. Interest. The holders of the Notes are entitled to receive interest at
an annual cumulative rate of seven percent (7%) of the principal face dollar
value of this Note, payable on the Maturity Date in cash out of funds legally
available therefore. After the Maturity Date, interest on the overdue principal
face dollar value of this Note and accrued interest thereon shall accrue at a
rate of fourteen percent (14%) per annum and shall be payable on demand. Such
interest rates shall be calculated for the actual days elapsed on the basis on a
360-day year and shall apply before and after maturity and judgment.

     3. Conversion.

          (a) Generally. All or any portion of the outstanding principal amount
of and accrued interest under this Note may, at any time on or prior to or after
the Maturity Date and in the Holder's sole discretion (except as provided for in
Section 3(b) below), be converted into shares of Common Stock at a price (the
"CONVERSION PRICE") equal to $0.425 per share.

          (b) In Connection with an IPO. Notwithstanding the provisions of
Section 3(a) to the contrary, if, on or prior to the Maturity Date, the Company
consummates an IPO, then, simultaneously with the closing of such IPO, fifty
percent (50%) of the outstanding principal amount of and accrued interest under
this Note will be converted into Common Stock at a price equal to 85% of the
public offering price in the IPO (the "IPO CONVERSION PRICE"). The remaining
balance of principal of and accrued interest under this Note shall be,
simultaneously with the closing of the IPO, repaid by the Company in cash from
the proceeds of the IPO.

          (c) Mechanics of Conversion. Upon any conversion of this Note: (i)
such principal amount converted and all accrued but unpaid interest thereon
shall be converted and such converted portion of this Note shall become fully
paid and satisfied, (ii) the Holder shall surrender and deliver this Note, duly
endorsed, to the Company or such other address which the Company shall designate
against delivery of the certificates representing the new securities of the
Company, (iii) the Company shall promptly deliver a duly executed Note to the

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Holder in the principal amount, if any, that remains outstanding after any such
conversion; and (iv) in exchange for all or any portion of the surrendered Note
described in the preceding clauses 3(c)(i) or (ii) hereof, the Company shall
deliver to the Holder certificates representing such number of shares of Common
Stock to which the Holder is entitled to receive based on its conversion of the
Note, which certificates shall bear such legends as are required under
applicable state and federal securities laws.

          (d) Issue Taxes. The Company shall pay any and all issue and other
taxes that may be payable with respect to any issue or delivery of shares of
Common Stock on conversion of this Note pursuant hereto; PROVIDED, HOWEVER, that
the Holder shall not be obligated to pay any transfer taxes resulting from any
transfer requested by any holder in connection with any such conversion.

          (e) Elimination of Fractional Interests. No fractional shares of
Common Stock shall be issued upon conversion of this Note, nor shall the Company
be required to pay cash in lieu of fractional interests, it being the intent of
the parties that all fractional interests shall be eliminated and that all
issuances of Common Stock shall be rounded up to the nearest whole share.

     4. Rights upon Liquidation, Dissolution or Winding Up. In the event of any
liquidation, dissolution or winding up of the Company, either voluntary or
involuntary, the holders of the Notes shall be entitled to receive, prior and in
preference to any distribution of any of the assets of the Company to the
holders of any debt or equity securities of the Company, an amount equal to the
unpaid and unconverted principal face amount of their Notes and any accrued and
unpaid interest thereon. The Holder shall be paid in preference to any unsecured
creditors of the Company and shall be paid pro rata in proportion to the
principal amount of Notes held by holders of the Series if the available assets
are not sufficient to repay the Notes. The rights of the Holder described in
this Section 4 are referred to collectively as the "LIQUIDATION PREFERENCE."

     5. Adjustments.

          (a) Splits, Subdivisions, etc. In the event that the Company should at
any time or from time to time, after the date of this Note, fix a record date
for the effectuation of a split or subdivision of the outstanding shares of
Common Stock, or the determination of holders of Common Stock entitled to
receive a dividend or other distribution payable in additional shares of Common
Stock or other securities or rights convertible into, or entitling the holder
thereof to receive directly or indirectly additional shares of Common Stock
(hereinafter referred to as "COMMON STOCK EQUIVALENTS") without payment of any
consideration by such holder for the additional shares of Common Stock or the
Common Stock Equivalents (including the additional shares of Common Stock
issuable upon conversion or exercise thereof), then, as of such record date (or
the date of such dividend, distribution, split or subdivision if no record date
is fixed), the Conversion Price or the IPO Conversion Price, as the case may be
shall be appropriately decreased so that the number of shares of Common Stock
issuable on conversion of this Note shall be increased in proportion to such
increase in the aggregate number of shares of the Common Stock outstanding.

                                       3
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          (b) Combinations. If the number of shares of Common Stock outstanding
at any time after the date of this Note is decreased by a combination of the
outstanding shares of Common Stock, then, following the record date of such
combination, the Conversion Price or the IPO Conversion Price, as the case may
be (in the event such an event shall occur prior to an IPO), shall be
appropriately increased so that the number of shares of Common Stock issuable
upon conversion of this Note shall be decreased in proportion to such decrease
in outstanding shares.

          (c) Mergers, Consolidations, etc. A merger, consolidation or other
corporate reorganization in which the Company's stockholders shall receive cash
or securities of another entity, or any transaction in which all or
substantially all of the assets of the Company are sold shall be treated as a
liquidation for purposes of the Liquidation Preference. The Holder shall receive
prior notice of any of the foregoing transactions and shall have an opportunity
to convert, at their sole election, the Note prior to the consummation of any
such transaction.

          (d) Dilutive Issuances. In the event that the Company shall, at any
time while all or any portion of this Note is outstanding, sell any shares of
Common Stock for a consideration per share less than the Conversion Price, or
issue Common Stock Equivalents convertible into or exchangeable for Common Stock
at an exercise or conversion price below the Conversion Price (such actions, a
"DILUTIVE OFFERING"), then the Conversion Price (or the IPO Conversion Price, if
applicable) shall immediately be changed upon each such issuance such that the
Conversion Price (or the IPO Conversion Price, as the case may be) shall be
adjusted by multiplying the then applicable Conversion Price or IPO Conversion
Price by the following fraction:

                                      A + B
                -------------------------------------------------
                          (A + B) + [((C - D) x B) / C]

          A = Total amount of shares convertible pursuant to this Note assuming
the entire amount of the Note is converted.

          B = Actual shares sold in the Dilutive Offering

          C = Conversion Price (or IPO Conversion Price)

          D = Offering price in the Dilutive Offering

          (e) Computation of Consideration. For purposes of any computation
respecting consideration received pursuant to Section 5(d) above, the following
shall apply:

               (i) in the case of the issuance of shares of Common Stock for
     cash, the consideration shall be the amount of such cash, provided that in
     no case shall any deduction be made for any commissions, discounts or other
     expenses incurred by the Company for any underwriting of the issue or
     otherwise in connection therewith;

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               (ii) in the case of the issuance of shares of Common Stock for a
     consideration in whole or in part other than cash, the consideration other
     than cash shall be deemed to be the fair market value thereof as determined
     in good faith by the Board of Directors of the Company (irrespective of the
     accounting treatment thereof); and

               (iii) upon any such exercise, the aggregate consideration
     received for such securities shall be deemed to be the consideration
     received by the Company for the issuance of such securities plus the
     additional minimum consideration, if any, to be received by the Company
     upon the conversion or exchange thereof (the consideration in each case to
     be determined in the same manner as provided in subsections (i) and (ii) of
     this Section 5(e)).

          (f) Exceptions. No adjustment to the Conversion Price or IPO
Conversion Price, as the case may be, shall be made pursuant to this Section 5
with respect to: (i) the issuance or sale of this Note or other Notes in the
Series, or Warrants issued in connection therewith, or shares of Common Stock
issuable upon exercise of the Notes, the Warrants or other options, warrants and
convertible securities outstanding as of the date hereof, or (ii) the issuance
or sale of any shares of Company capital stock, or the grant of options
exercisable therefore, issued or issuable after the date of this Note, to
directors, officers, employees, advisers and consultants of the Company or any
subsidiary pursuant to any incentive or non-qualified stock option plan or
agreement, stock purchase plan or agreement, employee stock ownership plan
(ESOP), but solely as the same is in existence as of the date hereof, or (iii)
shares of Company capital stock issued in connection with any subdivision,
reclassification or combination of, the outstanding shares of Common Stock, or
(iv) shares of Company capital stock issued at less than the Conversion Price or
IPO Conversion Price, as the case may be, then in effect to the sellers in
connection with the acquisition by the Company of a corporation or other
business entity or assets; PROVIDED, HOWEVER, that in no event shall any
issuances of Company capital stock issued under clause (iv) of this subsection
(f) cause dilution in excess of ten percent (10%) to the holders of the
Securities.

     6. Representations and Affirmative and Negative Covenants of the Company.
The Company hereby represents and warrants to the Holder, and covenants and
agrees, as the case may be, to all of the matters set forth in Sections 3 and 4
of the Securities Purchase Agreement, which representations, warranties,
covenants and agreements are incorporated by reference herein as if set forth
fully herein. In addition, the Company hereby covenants to the holder as
follows:

          (a) Event of Default. Within five (5) days of any officer of the
Company obtaining knowledge of any Event of Default (as defined in Section 7
hereof), if such Event of Default is then continuing, the Company shall furnish
to the Holder a certificate of the chief financial or accounting officer of the
Company setting forth the details thereof and the action which the Company is
taking or proposes to take with respect thereto.

          (b) Performance. The Company will not, by any voluntary action, avoid
or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of the provisions of this Note and in the

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taking of all such action as may be necessary or appropriate in order to protect
the rights of the Holder of this Note against impairment.

     7. Events of Default. This Note shall become immediately due and payable at
the option of the holders of greater than 50% of the face amount of all then
outstanding Notes issued in the Series, upon any one or more of the following
events or occurrences ("EVENTS OF DEFAULT"):

          (a) if any portion of the Note is not paid when due; provided, that
this shall only constitute an Event of Default if such default is not cured by
the Company within fifteen (15) days after the Holder has given the Company
written notice of such default;

          (b) upon a "CHANGE IN CONTROL" of the Company, meaning: (i) an
acquisition of any voting securities of the Company (the "VOTING SECURITIES") by
any "person" (as the term "person" is used for purposes of Section 13(d) or
Section 14(d) of the Securities Exchange Act of 1934, as amended (the "1934
Act")) immediately after which such person has "beneficial ownership" (within
the meaning of Rule 13d-3 promulgated under the 1934 Act) ("BENEFICIAL
OWNERSHIP") of 30% or more of the combined voting power of the Company's then
outstanding Voting Securities without the approval of the Company's Board of
Directors (the "BOARD"); (ii) a merger or consolidation that results in more
than 50% of the combined voting power of the Company's then outstanding Voting
Securities of the Company or its successor changing ownership(whether or not
approved by the Board); (iii) the sale of all or substantially all of the
Company's assets in one or a series of related transactions; (iv) approval by
the stockholders of the Company of a plan of complete liquidation of the
Company; or (v) the individuals constituting the Board as of the date of June
28, 2005 (the "INCUMBENT BOARD") cease for any reason to constitute at least 1/2
of the members of the Board; PROVIDED, HOWEVER, that if the election, or
nomination for election by the Company's stockholders, of any new director was
approved by a vote of the Incumbent Board, such new director shall be considered
a member of the Incumbent Board. The Company shall give the Holder no less than
thirty (30) days written notice of a potential Change in Control.

          (c) if any final judgment for the payment of money is rendered against
the Company and the Company does not discharge the same or cause it to be
discharged or vacated within ninety (90) days from the entry thereof, or does
not appeal therefrom or from the order, decree or process upon which or pursuant
to which said judgment was granted, based or entered, and does not secure a stay
of execution pending such appeal within ninety (90) days after the entry
thereof;

          (d) if the Company makes an assignment for the benefit of creditors or
if the Company generally does not pay its debts as they become due;

          (e) if a receiver, liquidator or trustee of the Company is appointed
or if the Company is adjudicated a bankrupt or insolvent, or if any petition for
bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or
any similar federal or state law, is filed by or against, consented to, or
acquiesced in, by the Company or if any proceeding for the dissolution or
liquidation of the Company is instituted; however, if such appointment,

                                       6
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adjudication, petition or proceeding is involuntary and is not consented to by
the Company, upon the same not being discharged, stayed or dismissed within
sixty (60) days;

          (f) if the Company defaults in any material respect under any other
secured or unsecured indebtedness for borrowed money, other than any
indebtedness owed to officers, directors or shareholders of the Company,
mortgage or security agreement covering any part of its property;

          (g) if the Company defaults in the observance or performance of any
other material term, agreement, covenant or condition of this Note or the
Transaction Documents, and the Company fails to remedy such default within
fifteen (15) days after notice by the Holder to the Company of such default, or,
if such default is of such a nature that it cannot with due diligence be cured
within said fifteen (15) day period, if the Company fails, within said fifteen
(15) days, to commence all steps necessary to cure such default, and fail to
complete such cure within forty five (45) days after the end of such fifteen
(15) day period;

          (h) except for specific defaults set forth in this Section 7, if the
Company defaults in the observance or performance of any material term,
agreement or condition of the Note or the Transaction Documents, and such
default continues after the end of any applicable cure period provided for
therein; and

          (i) if any of the following exist uncured for fifteen (15) days
following written notice to the Company: (i) the failure, subject to applicable
survival periods, of any representation or warranty made by the Company to the
Holder pursuant to any of the Transaction Documents to be true and correct in
all material respects or (ii) the Company fails to provide the Holder with the
written certifications and evidence referred to in this Note.

     8. Usury. In no event shall the amount of interest paid or agreed to be
paid hereunder exceed the highest lawful rate permissible under applicable law.
Any excess amount of deemed interest shall be null and void and shall not
interfere with or affect the Company's obligation to repay the principal of and
interest on the Note.

     9. Holder Not Deemed a Stockholder. The Holder, as such, of this Note shall
be entitled (prior to conversion or redemption of this Note into Common Stock,
and only then to the extent of such conversion) to vote or receive dividends or
be deemed the holder of shares of Common Stock for any purpose, nor shall
anything contained in this Note be construed to confer upon the Holder hereof,
as such, any of the rights at law of a stockholder of the Company prior to the
issuance to the holder of this Note of the shares of Common Stock which the
Holder is then entitled to receive upon the due conversion of all or a portion
of this Note.

     10. Mutilated, Destroyed, Lost or Stolen Notes. In case this Note shall
become mutilated or defaced, or be destroyed, lost or stolen, the Company shall
execute and deliver a new note of like principal amount in exchange and
substitution for the mutilated or defaced Note, or in lieu of and in
substitution for the destroyed, lost or stolen Note. In the case of a mutilated
or defaced Note, the Holder shall surrender such Note to the Company. In the
case of any destroyed, lost or stolen Note, the Holder shall furnish to the
Company: (a) evidence to its satisfaction of the destruction, loss or theft of
such Note and (b) such security or indemnity as may be reasonably required by
the Company to hold the Company harmless.

                                       7
<PAGE>

     11. Waiver of Demand, Presentment, etc. The Company hereby expressly waives
demand and presentment for payment, notice of nonpayment, protest, notice of
protest, notice of dishonor, notice of acceleration or intent to accelerate,
bringing of suit and diligence in taking any action to collect amounts called
for hereunder and shall be directly and primarily liable for the payment of all
sums owing and to be owing hereunder, regardless of and without any notice,
diligence, act or omission as or with respect to the collection of any amount
called for hereunder.

     12. Payment.

          (a) Except as otherwise provided for herein, all payments with respect
to this Note shall be made in lawful currency of the United States of America by
check or wire transfer of immediately available funds, at the option of the
Holder, at the principal office of the Holder or such other place or places or
designated accounts as may be reasonably specified by the Holder of this Note in
a written notice to the Company at least one (1) business day prior to payment.
Payment shall be credited first to the accrued interest then due and payable and
the remainder applied to principal.

          (b) This Note may not be prepaid at any time without the prior written
consent of the Holder; PROVIDED, HOWEVER, that, at any time after September 30,
2005, in the event that the contemplated IPO is abandoned solely and exclusively
as a result of the actions or inactions of Maxim Group LLC, the proposed lead
underwriter of the IPO, then, and thereafter, this Note and all accrued interest
hereunder may be prepaid by the Company without penalty on fourteen (14) days
written notice to the Holder and in the manner called for in Section 12(a)
hereof (it being agreed by the Company that if the Company elects to prepay this
Note in accordance with this Section 12(b), the Company shall simultaneously
prepay all principal and accrued interest under all of the Notes in the Series
in the same manner and at the same time).

     13. Assignment. The rights and obligations of the Company and the Holder of
this Note shall be binding upon, and inure to the benefit of, the permitted
successors, assigns, heirs, administrators and transferees of the parties
hereto.

     14. Waiver and Amendment. Any provision of this Note, including, without
limitation, the due date hereof, and the observance of any term hereof, may be
amended, waived or modified (either generally or in a particular instance and
either retroactively or prospectively) only with the written consent of the
Company and the holders of greater than 50% of the face amount of all then
outstanding Notes issued in the Series.

     15. Notices. Any notice, request or other communication required or
permitted hereunder shall be in writing and shall be deemed to have been duly
given if personally delivered or mailed by registered or certified mail, postage
prepaid, or delivered by facsimile transmission, to the Company at the address
or facsimile number set forth herein or to the Holder at its address or
facsimile number set forth in the records of the Company. Any party hereto may
by notice so given change its address for future notice hereunder. Notice shall

                                       8
<PAGE>

conclusively be deemed to have been given when personally delivered or when
deposited in the mail in the manner set forth above and shall be deemed to have
been received when delivered or, if notice is given by facsimile transmission,
when delivered with confirmation of receipt.

     16. Governing Law; Jurisdiction; Waiver of Jury Trial.

          (a) THIS NOTE SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES
OF CONFLICTS OF LAW.

          (b) THE COMPANY HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
NEW YORK STATE OR UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK
WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS NOTE. THE COMPANY IRREVOCABLY
WAIVES THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR
PROCEEDING. THE COMPANY FURTHER AGREES THAT SERVICE OF PROCESS UPON IT MAILED BY
FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS
UPON THE COMPANY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT THE
HOLDER'S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. THE
COMPANY AGREES THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER.

          (c) 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.

     17. Severability. If one or more provisions of this Note are held to be
unenforceable under applicable law, such provisions shall be excluded from this
Note, and the balance of this Note shall be interpreted as if such provisions
were so excluded and shall be enforceable in accordance with its terms.

     18. Headings. Section headings in this Note are for convenience only, and
shall not be used in the construction of this Note.

                                       9
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the
date first above written.

                                   DEBT RESOLVE, INC.

                                   By: _______________________________
                                       Name:
                                       Title:

                                       10
<PAGE>

                              NOTICE OF CONVERSION

                   (to be signed upon conversion of the Note)

TO DEBT RESOLVE, INC.:

     The undersigned, the holder of the foregoing Note, hereby surrenders such
Note for conversion into ______ shares of the common stock of Debt Resolve,
Inc., and requests that the certificates for such shares be issued in the name
of, and delivered to, ___________________________, whose address is
_________________________________________.

Dated: _____________________

                                            ----------------------------
                                                   (SIGNATURE)

                                            ----------------------------
                                                   (ADDRESS)

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