Document:

STOCK PURCHASE AGREEMENT

                          Dated as of February 8, 2001

                                  by and among

                         [-----------------------------]

                                       and

                        FROST-NEVADA, LIMITED PARTNERSHIP

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         This STOCK PURCHASE AGREEMENT dated as of February 8, 2001, is made and
entered into by and among [___________________________] ("Seller"), and
FROST-NEVADA, LIMITED PARTNERSHIP, a Nevada limited partnership having its
offices at 3500 Lakeside Court, Suite 200, Reno, Nevada 89509 ("Frost").
Capitalized terms not defined herein shall have the meanings ascribed to them in
the Loan Agreement (as defined below).

         WHEREAS, Seller desires to sell to Frost and Frost desires to purchase
from Seller [_______________] ([_____]) shares of common stock, par value
$0.0001 per share, of GBI Capital Management Corp., a Florida corporation
("GBI") (such shares being referred to herein as the "Shares");

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                   ARTICLE I

                           SALE OF SHARES AND CLOSING

         1.01 Purchase and Sale. Seller agrees to sell to Frost, and Frost
agrees to purchase from Seller, all of the right, title and interest of Seller
in and to the Shares at the closing of the Loan pursuant to the Loan Agreement
dated February 8, 2001, between Frost and Seller ("Loan Agreement") on the terms
and subject to the conditions set forth in this Agreement.

         1.02 Purchase Price. The aggregate purchase price for the Shares is
$[_____] (the "Purchase Price"), payable at the closing of the Loan. Frost will
pay the Purchase Price by transfer of immediately available United States funds
to Seller to an account designated by Seller at least two business days before
closing of the Loan. Simultaneously, Seller will assign and transfer to Frost
all of Seller's right, title and interest in and to the Shares by delivering to
Frost a certificate or certificates representing the Shares, in genuine and
unaltered form, duly endorsed in blank or accompanied by duly executed stock
powers endorsed in blank, with requisite stock transfer tax stamps, if any,
attached.

         1.03 Further Assurances. At any time or from time to time after the
closing of the Loan, Seller shall execute and deliver to Frost such other
documents and instruments, provide such materials and information and take such
other actions as Frost may reasonably request to more effectively vest title to
the Shares in Frost, and otherwise to cause Seller to fulfill its obligations
under this Agreement.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

         Each party hereby represents and warrants to the other party as follows
(except in the case of a representation and warranty stated as being made by a
specific party):

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         2.01 Authority. Such party has full power and authority to execute and
deliver this Agreement and to perform its obligations hereunder and to
consummate the transactions contemplated hereby. This Agreement has been duly
and validly executed and delivered by such party and constitutes a legal, valid
and binding obligation of such party enforceable against such party in
accordance with its terms.

         2.02 Capital Stock. Seller represents and warrants that: (a) the Shares
are validly issued, fully paid and nonassessable; (b) Seller owns the Shares,
beneficially and of record, free and clear of all Liens except those imposed by
federal and state securities laws; (c) except for this Agreement, there are no
outstanding options with respect to the Shares; and (d) the delivery of a
certificate or certificates at the closing representing the Shares in the manner
provided in Section 1.02 will transfer to Frost good and valid title to the
Shares, free and clear of all Liens except those imposed by federal and state
securities laws.

         2.03 No Conflicts. The execution, delivery and performance by such
party of this Agreement and the consummation of the transactions contemplated
hereby do not and will not (i) result in any breach or violation of or be in
conflict with or constitute a default under the terms of any law, order,
regulation or agreement or arrangement to which such party or (in the case of
Seller) GBI or its subsidiaries, as the case may be, is a party or by which such
party is bound, (ii) require any filing with or authorization by any
governmental entity other than filings with the Securities and Exchange
Commission to report the transactions contemplated hereby, or (iii) require any
consent or other action by any person under, constitute a default under, or give
rise to any right of termination, cancellation or acceleration or to a loss of
any benefit to which such party is entitled under any provision of any agreement
or other instrument binding on such party.

         2.04 Investment Representations. Frost represents and warrants to
Seller that it is an "accredited investor" as that term is defined under Rule
501 of Regulation D of the Securities Act of 1933, as amended ("1933 Act").
Frost understands that the Shares are "restricted,' such that they may not be
resold by him except pursuant to an effective registration statement under the
1933 Act or an exemption from the registration requirements thereof, and that
the certificates representing such Shares shall bear a legend to this effect. It
understands that its purchase of the Shares represents a speculative investment,
involving a high degree of risk. It has had the opportunity to ask reasonable
questions of Seller and officers of GBI concerning the Shares and the business
of GBI, and such questions have been answered to its full satisfaction.

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                                  ARTICLE III

                                 MISCELLANEOUS

         3.01 Termination. Upon termination of the Loan Agreement prior to the
extension of the Loan thereunder, this Agreement shall likewise terminate and be
of no further force and effect.

         3.02 Notices. All notices, requests and other communications hereunder
must be in writing and will be deemed to have been duly given only if delivered
personally or by facsimile transmission or mailed (first class postage prepaid)
to, with respect to Frost, the address or facsimile number provided in the Loan
Agreement or, with respect to Seller, the following address or facsimile number:

                  [Seller]
                  [Seller's Address]

                  with a copy to:

                  Graubard Mollen & Miller
                  600 Third Avenue
                  New York, New York 10016
                  Facsimile No.:  212-818-8881
                  Attn:  David Alan Miller, Esq.

         All such notices, requests and other communications will be deemed
given as provided in the Loan Agreement. Any party from time to time may change
its address, facsimile number or other information for the purpose of notices to
that party by giving notice specifying such change to the other parties hereto.

         3.03 Entire Agreement. This Agreement supersedes all prior discussions
and agreements between the parties with respect to the subject matter hereof,
and contains the sole and entire agreement between the parties hereto with
respect to the subject matter hereof.

         3.04 Expenses. Except as otherwise expressly provided in this
Agreement, whether or not the transactions contemplated hereby are consummated,
each party will pay its own costs and expenses incurred in connection with the
negotiation, execution and closing of this Agreement and the transactions
contemplated hereby. Notwithstanding the foregoing, Seller shall be responsible
for any documentary, stamp or similar transfer tax due on the sale of Shares
under this Agreement.

         3.05 Waiver. Any term or condition of this Agreement may be waived at
any time by the party that is entitled to the benefit thereof, but no such
waiver shall be effective unless set forth in a written instrument duly executed
by or on behalf of the party waiving such term or condition. No waiver by any
party of any term or condition of this Agreement, in any one or more instances,
shall be deemed to be or construed as a waiver of the same or any other term or

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condition of this Agreement on any future occasion. All remedies, either under
this Agreement or by law or otherwise afforded, will be cumulative and not
alternative.

         3.06 Amendment. This Agreement may be amended, supplemented or modified
only by a written instrument duly executed by or on behalf of each party hereto.

         3.07 No Third Party Beneficiary. The terms and provisions of this
Agreement are intended solely for the benefit of each party hereto and their
respective successors or permitted assigns, and it is not the intention of the
parties to confer third-party beneficiary rights upon any other person or
entity.

         3.08 No Assignment; Binding Effect. Neither this Agreement nor any
right, interest or obligation hereunder may be assigned by any party hereto
without the prior written consent of the other parties hereto and any attempt to
do so will be void, except for assignments and transfers by operation of law.
Subject to the preceding sentence, this Agreement is binding upon, inures to the
benefit of and is enforceable by the parties hereto and their respective
successors and assigns.

         3.09 Headings. The headings used in this Agreement have been inserted
for convenience of reference only and do not define or limit the provisions
hereof.

         3.10 Consent to Jurisdiction and Service of Process. Seller and Frost
hereby irrevocably consent to accept and acknowledge service of any and all
process against such party in any action, suit or proceeding arising out of or
relating to this Agreement or any of the transactions contemplated thereby,
delivered by registered mail to, with respect to Seller, the address provided in
Section 3.02 or, with respect to Frost, to the address provided in the Loan
Agreement, and each party waives all claims of error by reason of such service.
Each party hereby irrevocably submits to the exclusive jurisdiction of the
United States District Court for the Southern District of New York or any court
of the State of New York located in the Borough of Manhattan in the City of New
York in any such action, suit or proceeding arising out of or relating to this
Agreement or any of the transactions contemplated thereby, and agrees that any
such action, suit or proceeding shall be brought only in such court, provided,
however, that such consent to jurisdiction is solely for the purpose referred to
in this Section 3.10 and shall not be deemed to be a general submission to the
jurisdiction of said courts or in the State of New York other than for such
purpose. Each party hereby irrevocably waives, to the fullest extent permitted
by law, any objection that it may now or hereafter have to the laying of the
venue of any such action, suit or proceeding brought in such a court and any
claim that any such action, suit or proceeding brought in such a court has been
brought in an inconvenient forum.

         3.11 Invalid Provisions. If any provision of this Agreement is held to
be illegal, invalid or unenforceable under any present or future law, and if the
rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (a) such provision will be fully
severable, (b) this Agreement will be construed and enforced as if such illegal,
invalid or unenforceable provision had never comprised a part hereof, and (c)
the remaining provisions of this Agreement will remain in full force and effect
and will not be affected by the illegal, invalid or unenforceable provision or
by its severance herefrom.

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         3.12 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE ACTIONS OF THE PARTIES HERETO IN THE
NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF.

         3.13 Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York without giving effect to
principles of conflicts of law.

         3.14 Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

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         IN WITNESS WHEREOF, this Agreement has been duly executed and delivered
by each party hereto as of the date first above written.

                             FROST-NEVADA, LIMITED PARTNERSHIP
                             By:  Frost-Nevada Corporation, General Partner

                             By:  ___________________________
                             Name:
                             Title:

                             --------------------------------
                             [SELLER]

                                       7SENIOR CONVERTIBLE PROMISSORY NOTE

$10,000,000.00 [Aggregate to Sellers]                          __________, 2001

         FOR VALUE RECEIVED, GBI CAPITAL MANAGEMENT CORP., a Florida corporation
("Maker"), having an address at 1055 Stewart Avenue, Bethpage, New York 11714,
hereby promises to pay to _____________________________, a ______________
corporation, its successors and/or permitted assigns (any of which is
hereinafter referred to as "Holder"), at
_______________________________________, in lawful money of the United States,
the sum of ______________ Dollars and No Cents ($_________.00) on December 31,
2005. Interest on the unpaid principal amount of this Note shall be paid at the
rate of seven and one half percent (7-1/2%) per annum on each March 31, June 30,
September 30 and December 31, commencing June 30, 2001 or the lesser of fifteen
percent(15%) per annum or the maximum interest rate permitted by applicable law
following an Event of Default. At the Holder's request payments shall be made by
wire transfer to an account designated by the Holder. If a payment date is not a
business day, payment may be made on the next business day and interest shall
accrue for the intervening period. This Note may not be prepaid.

         The Holder may, with or without notice to the Maker or any guarantor or
other party liable herefor, extend or renew this Note, or extend the time for
making payment of any amount provided for herein, or accept any amount in
advance, all without affecting the liability of the Maker or any other party or
guarantor liable herefor.

         This Note is issued pursuant to the terms of that certain Stock
Purchase Agreement ("Stock Purchase Agreement") dated February 8, 2001 between
the Maker, New Valley Corporation, Ladenburg, Thalmann Group Inc., Ladenburg,
Thalmann & Co. Inc. and Berliner Effektengesellschaft AG. and the Holder and the
Maker are entitled to the benefits provided for therein. Terms used but not
defined herein shall have their respective meanings assigned in the Stock
Purchase Agreement. This Note is entitled to the benefits of the security for
the payment hereof provided pursuant to that certain Pledge and Security
Agreement dated February 8, 2001 between the Maker, the Secured Parties named
therein and U.S. Bank Trust National Association, as Collateral Agent ("Pledge
Agreement").

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         1. Conversion of Note

              The principal of and accrued interest on this Note shall be
convertible, in whole or in part, at any time, at the election of the Holder,
into that number of fully paid and non-assessable shares of the Maker's common
stock, par value $0.0001 per share ("Common Stock"), determined by dividing the
amount of principal and interest to be so converted by the "Conversion Price"
(as hereinafter defined) in effect at the time notice of conversion is given to
the Maker as set forth below. As used herein, "Conversion Price" means,
initially, $2.60. If, at any time after the date hereof, there occurs, with
respect to the Common Stock, a reclassification, stock split, stock dividend,
spin-off or distribution, share combination or other similar change affecting
the Common Stock as a whole and all holders thereof or if the Maker shall
consolidate with, or merge with or into, any other entity, sell or transfer all
or substantially all its assets or engage in any reorganization,
reclassification or recapitalization which is effected in such a manner that the
holders of Common Stock are entitled to receive stock, securities, cash or other
assets with respect to or in exchange for Common Stock (each, an "Adjustment
Event"), the Conversion Price and the kind and amount of stock, securities, cash
or other assets issuable upon conversion of this Note in effect at the time of
the record date for such dividend or distribution or of the effective date of
such share combination, split, consolidation, merger, sale, transfer,
reorganization, reclassification or recapitalization shall be appropriately
adjusted so that the conversion of the Note after such time shall entitle the
Holder to receive the aggregate number of shares of Common Stock or securities,
cash and other assets which, if this Note hade been converted immediately prior
to such time, the Holder would have owned upon such conversion and been entitled
to receive by virtue of such Adjustment Event, provided that if the kind or
amount of securities, cash and other property is not the same for each share of
Common Stock held immediately prior to such reclassification, change,
consolidation, merger, sale, transfer, or conveyance, any Holder who fails to
exercise any right of election shall receive per share the kind and amount of
securities, cash or other property received per share by a plurality of such
shares.

              Promptly after an Adjustment Event, the Maker shall mail to
the Holder a notice of the adjustment together with a certificate from the
Maker's independent public accountants briefly stating the facts requiring the
adjustment and the manner of computing it.

              If (i) the Maker takes any action that would cause an
Adjustment Event, (ii) there is a liquidation or dissolution of the Maker or
(iii) the Maker declares a cash dividend, the Maker shall mail to the Holder a
notice stating the proposed record date for a dividend or distribution or the
proposed effective date of a subdivision, combination, reclassification,
consolidation, merger, transfer, lease, liquidation or dissolution, the Maker
shall mail the notice at least 15 days before such date.

              If, during any period of twenty (20) consecutive trading days,
the closing sale price of the Common Stock is at least $8.00 per share (as
adjusted for all Adjustment Events occurring after the date of this Note), the
principal of and all accrued interest on this Note shall be automatically

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converted, without further action on the part of the Holder, into shares of
Common Stock at the Conversion Price in effect on the last Trading Day of such
period.

              In connection with any conversion of this Note, the Holder
shall surrender this Note and deliver it, together with written instructions to
convert in the form attached hereto, to the Maker at its principal executive
office. The date of such delivery shall be deemed the date of conversion. The
Maker shall, as soon as practicable, issue and deliver to a location in the
United States designated by the Holder certificates representing the securities
(or other assets) to which the Holder is entitled as a result of such conversion
together with a note for the unconverted balance.

              The Maker shall not be required to issue fractions of shares
of Common Stock upon conversion and in lieu thereof any fractional share shall
be rounded up or down to the nearest whole share. The Maker shall reserve and
shall at all times have reserved out of its authorized but unissued shares of
Common Stock sufficient shares of Common Stock to permit the conversion of the
unpaid principal amount and accrued interest as provided for herein. The Maker
shall list such shares on any national securities exchange on which the Common
Stock is then listed. If the Holder converts this Note, the Maker shall pay any
documentary, stamp or similar issue or transfer tax due on such conversion
except that the Holder shall pay any such tax due because the shares are issued
in a name other than the Holder's.

              The certificates representing shares of Common Stock issued
upon conversion of this Note shall bear a legend to the effect that such shares
are not registered under the 1933 Act and may not be sold, assigned or otherwise
transferred or hypothecated except in accordance with the registration
provisions of the 1933 Act or an exemption therefrom and in accordance with the
provisions of that certain Investor Rights Agreement dated as of February 8,
2001 among New Valley Corporation, Ladenburg, Thalmann Group Inc., Berliner
Effektengesellschaft AG, the Maker, Frost-Nevada, Limited Partnership and the
Principals party thereto ("Investor Rights Agreement"). This legend shall be
removed on receipt of an opinion of counsel reasonably satisfactory to the Maker
that such legend is no longer required.

         2. Change of Control

             (i) Promptly after the occurrence of a Change of Control (as
hereinafter defined) (the date of such occurrence being the "Change of Control
Date"), the Maker shall commence (or cause to be commenced) an offer to purchase
all outstanding Notes pursuant to the terms described in paragraph (iii) of this
"Change of Control" section (the "Change of Control Offer") at a purchase price
equal to the unpaid principal amount of this Note and accrued interest thereon
(the "Change of Control Amount") on the Change of Control Payment Date (as
hereinafter defined), and shall purchase (or cause the purchase of) any Notes
tendered in the Change of Control Offer pursuant to the terms hereof. As used in
this Note, the term "Notes" means all Convertible Promissory Notes of the Maker

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of like tenor to this Note (except as to principal amount, interest rate and
Conversion Price). The Change of Control Amount shall be payable in cash.

             (ii) Within 10 days following a Change in Control Date, the Maker
shall send, by first-class mail, postage prepaid, a notice to the Holder. Such
notice shall contain all instructions and materials necessary to enable the
Holder to tender this Note pursuant to the Change of Control Offer and shall
state:

                  (a) that a Change of Control has occurred, that a Change of
Control Offer is being made pursuant to this "Change of Control" section and
that all Notes validly tendered and not withdrawn will be accepted for payment;

                  (b) the Change of Control Amount and the purchase date (which
must be no earlier than 10 days nor later than 20 days from the date such notice
is mailed, other than as may be required by law) (the "Change of Control Payment
Date");

                  (c) that any Notes not tendered will continue to accrue
interest;

                  (d) that, unless the Maker defaults in making payment
therefor, any Note accepted for payment pursuant to the Change of Control Offer
shall cease to accrue interest after the Change of Control Payment Date;

                  (e) that holders electing to have any Notes purchased pursuant
to a Change of Control Offer will be required to surrender such Notes, properly
endorsed for transfer, together with such other customary documents as the Maker
may reasonably request to the Maker at the address specified in the notice prior
to the close of business on the business day prior to the Change of Control
Payment Date;

                  (f) that holders of Notes will be entitled to withdraw their
election if the Maker receives, not later than two business days prior to the
Change of Control Payment Date, a telegram, facsimile transmission or letter
setting forth the name of the holder, the principal amount of the Notes the
holder delivered for purchase and a statement that such holder is withdrawing
its election to have such Notes purchased;

                  (g) that holders who tender only a portion of their Notes
will, upon purchase of the Notes tendered, be issued a Note representing the
Notes not purchased; and

                  (h) the circumstances and relevant facts regarding such Change
of Control (including information with respect to pro forma historical income,
cash flow and capitalization after giving effect to such Change of Control).

             (iii) The Maker will comply with any tender offer rules under the
Exchange Act which then may be applicable in connection with any offer made by
the Maker to repurchase the Notes as a result of a Change of Control. If the
provisions of any securities laws or regulations conflict with provisions of
this Note, in reliance on an opinion of counsel, the Maker may comply with the

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applicable securities laws and regulations and shall not be deemed to have
breached its obligation under this Note by virtue thereof.

             (iv) On the Change of Control Payment Date, the Maker shall (A)
accept for payment the Notes validly tendered pursuant to the Change of Control
Offer, (B) pay to the holders of Notes so accepted the Change of Control Amount
therefor in cash as provided above and (C) cancel each surrendered Note. Unless
the Maker defaults in the payment for the Notes tendered pursuant to the Change
of Control Offer, interest will cease to accrue with respect to the Notes
tendered and all rights of holders of such tendered Notes will terminate, except
for the right to receive payment therefor on the Change of Control Payment Date.

             (v) To accept the Change of Control Offer, the holder of a Note
shall deliver, prior to the close of business on the business day prior to the
Change of Control Payment Date, written notice to the Maker (or an agent
designated by the Maker for such purpose) of such holder's acceptance, together
with the Notes with respect to which the Change of Control Offer is being
accepted, duly endorsed for transfer.

             (vi) For the avoidance of doubt, nothing in this "Change of
Control" section shall restrict the right of the holders of Notes, in connection
with a Change of Control, to convert and to receive the kind and amount of
consideration payable to holders of Common Stock in respect of the Common Stock
into which the Notes may be converted.

             (vii) As used in this "Change of Control" section,

                  "Change of Control" means: (a) the sale, lease, transfer,
                  conveyance, merger, consolidation or other disposition (other
                  than a merger or consolidation that does not result in any
                  change in the Maker's stock and in which a majority of the
                  successor's voting securities is held by holders of the
                  Maker's Common Stock immediately before such transaction ), in
                  one or a series of related transactions, of all or
                  substantially all the assets of the Maker and its
                  subsidiaries, taken as a whole, to any "person" (as such term
                  is used in Section 13(d)(3) of the Exchange Act), (b) the
                  consummation of any transaction (including any merger or
                  consolidation) the result of which is that any "person" (as
                  defined above), other than the Principals party to the
                  Investor Rights Agreement, New Valley Corporation, Ladenburg,
                  Thalmann Group Inc., Berliner Effektengesellschaft AG and Dr.
                  Phillip Frost, individually or collectively, becomes the
                  beneficial owner (as determined in accordance with Rules 13d-3
                  and 13d-5 under the Exchange Act, except that a person will be
                  deemed to have beneficial ownership of all Voting Securities
                  (as hereinafter defined) that such person has the right to
                  acquire, whether such right is exercisable immediately or only
                  after the passage of time), directly or indirectly, of more

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                  than 50% of the Voting Securities of the Maker, or (c) the
                  first day on which a majority of the members of the Board of
                  Directors of the Maker are not Continuing Directors;

                  "Continuing Directors" means individuals who constituted the
                  Board of Directors of the Maker on the date hereof (the
                  "Incumbent Directors"); provided that any individual becoming
                  a director after the date hereof shall be considered to be an
                  Incumbent Director if such individual's election, appointment
                  or nomination was recommended or approved by at least
                  two-thirds of the other Incumbent Directors continuing in
                  office following such election, appointment or nomination
                  present, in person or by telephone, at any meeting of the
                  Board of Directors of the Maker, after the giving of a
                  sufficient notice to each Incumbent Director so as to provide
                  a reasonable opportunity for such Incumbent Directors to be
                  present at such meeting; and

                  "Voting Securities" means securities of the Maker ordinarily
                  having the power to vote for the election of directors of the
                  Maker.

         3. Events of Default

            Upon the occurrence of any of the following events (herein
called "Events of Default"):

             (i) The Maker shall fail to make any payment of principal on this
Note on the date specified herein for such payment;

             (ii) The Maker shall fail to make any payment of interest on this
Note or any other payment due under this Note or the Pledge Agreement within ten
(10) days after it is due;

             (iii) (a) The Maker or Ladenburg shall commence, or consent to the
entry of an order for relief in, any proceeding or other action relating to it
in bankruptcy or seek reorganization, arrangement, readjustment of its debts,
receivership, dissolution, liquidation, winding-up, composition or any other
relief under any bankruptcy law, or under any other insolvency, reorganization,
liquidation, dissolution, arrangement, composition, readjustment of debt or any
other similar act or law, of any jurisdiction, domestic or foreign, now or
hereafter existing; or (b) the Maker or Ladenburg shall admit the material
allegations of any petition or pleading in connection with any such proceeding;
or (c) the Maker or Ladenburg shall apply for, or consent or acquiesce to, the
appointment of a receiver, conservator, trustee or similar officer for it or for
all or a substantial part of its property; or (d) the Maker or Ladenburg shall
make a general assignment for the benefit of creditors; or (e) the Maker or
Ladenburg shall become unable, admit in writing its inability or fail generally
to pay its debts as they become due;

             (iv) (a) The commencement of any proceedings or the taking of any
other action against the Maker or Ladenburg in bankruptcy or seeking
reorganization, arrangement, readjustment of its debts, liquidation,

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dissolution, arrangement, composition, or any other relief under any bankruptcy
law or any other similar act or law of any jurisdiction, domestic or foreign,
now or hereafter existing and the continuance of any of such events for sixty
(60) days undismissed, unbonded or undischarged; or (b) the appointment of a
receiver, conservator, trustee or similar officer for the Maker or Ladenburg for
any of its property and the continuance of any of such events for sixty (60)
days undismissed, unbonded or undischarged; or (c) the issuance of a warrant of
attachment, execution or similar process against any of the property of the
Maker or Ladenburg and the continuance of such event for sixty (60) days
undismissed, unbonded and undischarged;

             (v) The Maker or Ladenburg shall default with respect to any
indebtedness of $250,000 or more for borrowed money if either (a) such default
is a payment default or the effect of such default is to accelerate the maturity
of such indebtedness (in each instance giving effect to any applicable grace
periods) or (b) the holder of such indebtedness declares the Maker or Ladenburg
to be in default (giving effect to any applicable grace periods);

             (vi) The failure by the Maker to observe any of the covenants
contained in this Note (other than the covenants to pay principal and interest
and the covenants in Sections 2 or 5) or in the Pledge Agreement (other than
Section 4.14) which failure is not cured within 30 days after notice thereof is
given to the Maker by any of the Secured Parties thereunder (or, if such failure
is not capable of being cured within such 30-day period, the failure of the
Maker to continue to proceed in a diligent matter to effect such cure);

             (vii) The failure by the Maker to observe any of the covenants
contained in Sections 2 or 5 of this Note or in Section 4.14 of the Pledge
Agreement or the lien of Pledge Agreement will at any time not constitute a
first perfected lien on the collateral intended to be covered thereby; or

             (viii) Any judgment or judgments against the Maker or Ladenburg or
any attachment, levy or execution against any of its properties for any amount
in excess of $250,000 in the aggregate shall remain unpaid, or shall not be
released, discharged, dismissed, stayed or fully bonded for a period of sixty
(60) days or more after its entry, issue or levy, as the case may be;

then, and in any such event, the Holder, at its option and with written notice
to the Maker, may declare the entire principal amount of this Note then
outstanding together with accrued unpaid interest thereon immediately due and
payable, and the same shall forthwith become immediately due and payable without
presentment, demand, protest, or other notice of any kind, all of which are
expressly waived. The Events of Default listed herein are solely for the purpose
of protecting the interests of the Holder of this Note. If the Note is not paid
in full upon acceleration, as required above, interest shall accrue on the
outstanding principal of and interest on this Note from the date of the Event of

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Default up to and including the date of payment at a rate equal to the lesser of
fifteen percent (15%) per annum or the maximum interest rate permitted by
applicable law.

         Upon the occurrence a default under this Note (whether or not it has
become an Event of Default), the Maker agrees to pay the costs, expenses,
attorneys' and other fees paid or incurred by the Holder, or adjudged by a
court, including: (i) costs of suit and such amount as the court adjudges for
the fees of an attorney in an action to enforce this Note in whole or in part;
and (ii) reasonable costs of collection, costs and expenses of, and attorneys'
fees incurred or paid towards, the collection, enforcement, or sale of this Note
in whole or in part, or of any security for it.

         4. Payment of Claims

         Pursuant to Section 7.6 of the Stock Purchase Agreement, the Maker may
offset against amounts due under this Note any amounts owed by the Holder to the
Maker except that, prior to December 31, 2005, the Maker shall not offset
against amounts due under this Note any Claims against the Holder prior to
settlement or the entry of a final judgment and the expiration of all applicable
appeal periods and the failure of the Holder to pay such Claim within ten (10)
Business Days after such settlement or expiration. If any payment of the
indemnity obligations of the Holder pursuant to Section 8.1 of the Stock
Purchase Agreement is required to be made, the Holder may satisfy such payment
by delivery to the Maker of Notes acquired by it pursuant to the Stock Purchase
Agreement in a principal amount, together with accrued interest, equal to the
amount of the Claims for which payment is required in which case the Maker will
issue a new Note to the Holder for the remainder.

         5. Consolidation and Mergers.

         The Maker shall not consolidate or merge into, or transfer or lease all
or substantially all of its assets to, any person unless (1) the person is a
corporation; (2) the person assumes in a writing reasonably acceptable to the
Holder all the obligations of the Maker under this Note; and (3) immediately
after the transaction no Event of Default exists. The surviving, transferee or
lessee corporation shall be the successor Maker, but the predecessor Maker in
the case of a transfer or lease shall not be released from the obligation to pay
the principal of and interest of this Note.

         6. Additional Provisions

         The Maker and each other party liable herefor, whether principal,
endorser, guarantor or otherwise, jointly and severally hereby (i) waive
presentment, demand, protest, notice of dishonor and/or protest, notice of
non-payment and all other notices or demands in connection with the delivery,
acceptance, performance, default, enforcement or guaranty of this Note, and (ii)
waive recourse to suretyship defenses generally, including extensions of time,
releases of security and other indulgences which may be granted from time to
time by the Holder to the Maker or any party liable herefor.

                                       8
<PAGE>

         Nothing contained in this Note or in any other agreement between the
Maker and the Holder shall require the Maker to pay, or the Holder to accept,
interest in an amount which would subject the Holder to any penalty or
forfeiture under applicable law. In no event shall the total of all charges
payable hereunder, whether of interest or of such other charges which may or
might be characterized as interest, exceed the maximum rate permitted to be
charged under applicable law. Should the Holder receive any payment which is or
would be in excess of that permitted to be charged under such applicable law,
such payment shall have been and shall be deemed to have been made in error and
shall automatically be applied to reduce the principal balance outstanding on
this Note.

         The Holder shall not, by any act, delay, omission or otherwise, be
deemed to have waived any of its rights and/or remedies hereunder, and no waiver
whatsoever shall be valid unless in writing, signed by the Holder, and then only
to the extent therein set forth. The making of any demands or the giving of any
notices by the Holder or a waiver by the Holder of any right and/or remedy
hereunder on any one occasion shall not be construed as a bar to or waiver of
any right and/or remedy which the Holder would otherwise have on any future
occasion. All rights and remedies of the Holder shall be cumulative and may be
exercised singly or concurrently.

         The terms and provisions hereof shall survive the payment, cancellation
or surrender of this Note. Any instrument taken by the Holder in payment of, or
for application against, any obligation of the Maker or any other party liable
herefor shall not operate as a discharge of such obligation until the instrument
is finally paid, notwithstanding the fact that a bank may be the maker, drawer
or acceptor of such instrument.

         This Note may be assigned by the Holder only as permitted by the
provisions of the Investor Rights Agreement. In the event of a permitted
assignment of less than the entire unpaid principal amount of this Note, at the
request of the Holder the Maker shall issue new Notes to the transferee and the
Holder in the amounts assigned and not assigned, respectively. If this Note is
lost, destroyed or wrongfully taken, the Maker shall issue a replacement Note.
The Maker may require a reasonable indemnity bond.

         The authority to assert, and to determine to defend against, claims
with respect to this Note on behalf of the Maker shall be vested solely in the
Enforcement Committee established under the Stock Purchase Agreement. This Note
may not be amended and no rights of the Maker hereunder may be waived except
with the consent of the Enforcement Committee.

         This Note shall be governed by, and construed in accordance with, the
law of the State of New York without giving effect to principles of conflicts of
law. The provisions of Section 10.2 (Notices) and 10.12 of the Stock Purchase
Agreement (Consent to Jurisdiction and Service of Process) shall apply to this
Note as if fully set forth herein. THE MAKER HEREBY WAIVES ALL RIGHT TO TRIAL BY

                                       9

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JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF THIS NOTE OR ANY
TRANSACTION RELATING THERETO.

                                               GBI CAPITAL MANAGEMENT CORP.

                                               By:______________________________
                                                   Richard Rosenstock, President

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