Document:

SEPARATION
      AGREEMENT AND GENERAL RELEASE

    

    This
      SEPARATION AGREEMENT is entered into by and between Mr. Robert D. Jenkins of
      229
      Keeler Drive, Ridgefield, Connecticut (“JENKINS”) and Tasker Capital Corp., a
      Nevada corporation (“TASKER”);

    

    WHEREAS
      JENKINS and TASKER both wish to end JENKINS’ employment agreement with TASKER
      dated November 15, 2004, as amended May 6, 2005:

    

    WHEREAS
      JENKINS and TASKER both believe it to be in their mutual interest to set forth
      in writing the terms and conditions of their mutual understanding; and agreement
      concerning the terms of Jenkins’ employment termination; and

    

    WHEREAS,
      this Agreement shall govern and control the aforementioned employment agreement
      and the Employee Nonstatutory Stock Option Agreement dated November 15, 2004,
      from the effective date hereof, and shall supersede all prior oral and written
      agreements between JENKINS and TASKER, except as specifically set forth
      below.

    

    NOW
      THEREFORE, in consideration of the mutual covenants set forth below, and of
      other valuable consideration, the receipt and sufficiency of which are
      acknowledged, the parties stipulate and agree as follows: 

    

    1. TASKER,
      as used herein, shall at all times mean TASKER CAPITAL CORP., its predecessors,
      parents, subsidiaries, divisions and affiliates, all the companies’ respective
      successors and assigns; and their respective current, former or future officers,
      directors, employees, agents, shareholders, insurers, or legal representatives,
      whether in their individual, representative or official capacities.

    

    2. Subject
      to TASKER’S receipt of a fully executed copy of this Agreement, TASKER shall pay
      JENKINS his base salary for the period February 16, 2006 through June 28, 2006,
      inclusive, payable at the annual base salary rate set forth in paragraph 2
      of
      May 6, 2005 first amendment of his employment agreement (the “Base Salary”).
      TASKER, at its option, may pay the Base Salary in a lump sum on February 16,
      2006 or in bi-weekly installments after February 16, 2006 in accordance with
      the
      regular payroll practices of TASKER for its executives. The Base Salary shall
      include paid holidays. All payments hereunder shall be subject to all applicable
      federal, state or local tax withholding, F.I.C.A., and any other applicable
      payroll deductions. In addition, JENKINS and his dependents shall continue
      to be
      eligible to participate in TASKER’S group medical and dental plans until August
      31, 2006, with TASKER continuing to pay Eighty Percent (80%) of the premium
      amounts for this coverage. TASKER agrees to pay any unreimbursed business
      expenses to JENKINS and to pay JENKINS Two Thousand Dollars ($2,000) associated
      with the settlement of the TASKER-funded dental plan by February 15, 2006.
      JENKINS shall be entitled to no further compensation from TASKER in connection
      with his employment or the termination thereof. 

    

    3. JENKINS
      shall retain the option to purchase 1,000,000 shares granted to him under the
      Employee Stock Option Agreement dated November 15, 2004, which remains in full
      force and effect, except that: (a) the option period reflected in paragraph
      4
      and 7 shall remain ten (10) years from the grant date; (b) in the event of
      JENKINS’S death, his options may be exercisable by his beneficiaries, or heirs
      until the fifth anniversary of the option grant; and (c) JENKINS’S options shall
      not expire as a result of him terminating his employment with TASKER.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    4. JENKINS
      shall on or before February 10, 2006 return the motor vehicle provided to him
      by
      TASKER. TASKER indemnifies and holds JENKINS harmless for any financial or
      legal
      obligation associated with this motor vehicle that arises after its return
      to
      TASKER and TASKER agrees to make any required lease payments. 

    

    5.
       In
      consideration of the mutual promises and covenants contained herein, the
      consideration identified in Sections 2 and 3, and other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      JENKINS, for himself and his heirs, legal representatives, beneficiaries,
      assigns and successors-in-interest, hereby releases and forever discharges
      TASKER (the “TASKER
      RELEASED
      PARTIES”),
      of
      and from any and all actions or causes of action, suits, debts, claims,
      complaints, contracts, controversies, agreements, promises, damages, claims
      for
      attorney’s fees, punitive damages and reinstatement, judgments, and demands
      whatsoever, in law or in equity, he has, may have or ever had, whether known
      or
      unknown, suspected or unsuspected, anticipated or unanticipated, from the
      beginning of the world to the date of this Agreement and General Release,
      including, but without limiting the generality of the foregoing, any claim
      alleging violation of the Connecticut General Statutes, § 46a-60, Title VII
      of the Civil Rights Act of 1964, 42 U.S.C. § 2000e
      et
      seq.;
      the
      Americans With Disabilities Act, 42 U.S.C. § 12101
      et
      seq.;
      the
      Family and Medical Leave Act, 29 U.S.C. § 2601 et
      seq.;
      the
      Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1000
et
      seq.;
      any
      other local, state or federal law, regulation or ordinance; or pursuant to
      any
      common law theory of tort or contract and any and all claims for unpaid wages,
      compensation, bonus, severance pay, back pay, front pay, compensatory,
      exemplary, punitive, multiple and liquidated damages, costs, interest, and
      attorney’s fees (“JENKINS’S Released Claims”). JENKINS agrees and understands
      that this release is a GENERAL RELEASE. JENKINS further acknowledges that this
      Agreement and General Release shall not waive rights or claims that may arise
      after the date this Agreement is executed. Further, the parties agree that
      this
      General Release does not affect JENKINS’S rights under the Employee Stock Option
      Agreement dated November 15, 2004 or any rights he has to health insurance
      continuation under the Consolidated Ominous Budget Reconciliation Act 1985.
      

    

    6. JENKINS
      acknowledges and agrees that he understands the meaning of this Agreement and
      General Release and that he freely and voluntarily enters into it and the
      General Release contained herein. JENKINS agrees that no fact, evidence, event,
      or transaction currently known or unknown to him shall affect in any manner
      the
      final and unconditional nature of his agreements and releases. 

    

    7. JENKINS
      shall not institute any charge, complaint, or lawsuit to challenge the validity
      of the General Release or the circumstances surrounding its execution.

    

    8. In
      further exchange for the consideration provided pursuant to this Agreement,
      to
      the extent permitted by law, JENKINS specifically agrees not to commence any
      legal action against the TASKER RELEASED PARTIES, arising out of or in
      connection with JENKINS’S Released Claims. JENKINS expressly agrees, to the
      extent permitted by law, that if he commences such an action in violation of
      this Agreement, he shall indemnify the TASKER
      RELEASED
      PARTIES
      for the
      full and complete costs of defending such an action and enforcing this
      Agreement, including reasonable attorneys’ fees (whether incurred in a third
      party action or in an action to enforce this Agreement), court costs, and other
      related expenses. JENKINS further agrees, to the extent permitted by law, that
      if he commences such an action despite the provisions of this Agreement, he
      shall, as a condition precedent to commencing such an action, return to TASKER
      the entire amount of Base Salary paid to him, as set forth in Paragraph 2.
      

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    9. JENKINS
      agrees not to disclose, either directly or indirectly, the terms of this
      Agreement, or the amounts of payments provided for in Paragraph 2, to any person
      or organization, including but not limited to members of the press or media,
      present and former officers, directors, employees, agents and representatives
      of
      TASKER, and other members of the public, expect an immediate family member,
      financial consultant or attorney if JENKINS first obtains an agreement from
      such
      family member, financial consultant or attorney not to disclose the information.
      If JENKINS violated this paragraph he forfeits all rights to the Base Salary
      to
      be paid to him under Paragraph 2 and must return to TASKER any such payments
      already made to him, and he forfeits all stock options granted to him under
      the
      Employment Stock Option Agreement dated November 15, 2004. 

    

    10. JENKINS
      agrees that he shall not make any statements or remarks, orally or in writing,
      to anyone, which statements or remarks reasonably could be constructed to be
      derogatory or disparaging to TASKER or which statements or remarks reasonably
      could be anticipated to be damaging or injurious to the reputation or good
      will
      of the same. If JENKINS violated this paragraph he forfeits the right to the
      Base Salary to be paid to him under Paragraph 2 and must return to TASKER any
      such payments already made to him, and he forfeits all stock options granted
      to
      him under the Employee Stock Option Agreement dated November 15,
      2004.

    

    11. JENKINS
      agrees that he shall return to TASKER by February 10, 2006 any and all TASKER
      property in his possession or control. 

    

    12. This
      Agreement and General Release may not be modified, altered or changed except
      upon the express prior written consent of the parties.

     

    13. This
      Agreement and General Release and the attachments hereto contains all the terms
      and conditions agreed upon by the parties hereto with reference to the subject
      matters hereof. No other agreements, oral or otherwise, shall be deemed to
      exist
      or to bind either of the parties hereto.

    

    14. This
      Agreement and General Release may be executed in any number of counterparts,
      each of which shall be deemed to be an original and all of which together shall
      be deemed to be one and the same instrument.

    

    15. This
      Agreement and General Release shall in all respects be interpreted, enforced,
      governed and construed by and under the laws of the State of
      Connecticut.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    16. The
      invalidity, illegality or unenforceability of any provision hereof or any
      particular application thereof shall not be deemed to affect or impair in any
      manner the validity, legality or enforceability of any other provision of this
      Agreement and General Release, and this Agreement and General Release shall
      continue in full force and effect and shall be interpreted so as to implement
      as
      nearly as possible the intention of the parties in the absence of such provision
      or application.   

    

    

    IN
      WITNESS WHEREOF, the parties have set their hands and seals on this
      8th
      day of
      February, 2006.

    

    
      
        	 	 	 	 
	 	 	BY:	/s/: Robert
                Jenkins
	
                
Witness	 	 	
                
ROBERT
                D. JENKINS
	 	 	 	 
	 	 	 	 
	 	 	TASKER
                CAPITAL
                CORP.
	 	 	 
	 	 	 
	/s/: Sheryle Wells	 	 	/s/: James Burns
	
                
Witness
	 	
                BY:

                ITS:

              	
                
James
                Burns
Executive
                Vice President

      

    
      
        
        

      

      
        -4-THE
      SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES
      HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS
      AMENDED, AND APPLICABLE STATE SECURITIES LAWS, (II) SUCH SECURITIES MAY BE
      SOLD
      PURSUANT TO RULE 144(K), OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
      REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT
      REGISTRATION UNDER THE SECURITIES ACT OF 1933 OR QUALIFICATION UNDER APPLICABLE
      STATE SECURITIES LAWS.

    

    

    7%
      SECURED CONVERTIBLE NOTE

    

    

    US
      $_______                                                      April
      21,
      2006

    

    FOR
      VALUE
      RECEIVED, The Tube Media Corp., a Delaware corporation (the “Company”),
      hereby unconditionally promises to pay to the order of ___________ (the
“Holder”),
      having an address at _______________________________ at such address or at
      such
      other place as may be designated in writing by the Holder, or its assigns,
      the
      aggregate principal sum of __________________, together with interest on the
      unpaid principal balance of this 7% Secured Convertible Note (the “Note”)
      at a
      rate equal to seven percent (7%) (computed on the basis of the actual number
      of
      days elapsed in a 360-day year) per annum (the “Interest
      Rate”),
      subject to adjustment, until this Note is converted in full or indefeasibly
      and
      irrevocably paid in full by the Company. Except as provided herein, all payments
      of principal and interest by the Company under this Note shall be made in United
      States dollars in immediately available funds to an account specified by the
      Holder.

     

    Upon
      the
      occurrence of an Event of Default (as defined in Section 6 below), the Interest
      Rate shall increase to an rate of twelve percent (12%) per annum. In no event
      shall any interest charged, collected or reserved under this Note exceed the
      maximum rate then permitted by applicable law and if any such payment is paid
      by
      the Company, then such excess sum shall be credited by the Holder as a payment
      of principal.

     

    This
      Note
      is one of a series of Notes (the “Company
      Notes”)
      of
      like tenor in an aggregate principal amount of Two Million Four Hundred Fifty
      Thousand United States Dollars ($2,450,000) issued by the Company pursuant
      to
      the terms of the Purchase Agreement (as defined below). The Company Notes are
      secured by the stock pledged by David Levy pursuant to the terms of the Stock
      Pledge Agreement, dated as of even date hereof, between David Levy and Nite
      Capital, L.P., as collateral agent for the Investors (as defined in the Purchase
      Agreement).

     

    1. Definitions.
      Capitalized terms used herein shall have the respective meanings ascribed
      thereto in the Purchase Agreement unless otherwise defined herein. Unless the
      context otherwise requires, when used herein the following terms shall have
      the
      meaning indicated:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    “Affiliate”
shall
      mean, with respect to any Person, any other Person which directly or indirectly
      through one or more intermediaries Controls, is Controlled by, or is under
      common Control with, such Person.

     

    “Board”
shall
      mean the Board of Directors of Company.

     

    “Business
      Day”
shall
      mean any day other than a Saturday or Sunday, on which banks in New York City
      are open for the general transaction of business.

     

    “Common
      Stock”
shall
      mean the Common Stock, par value $0.0001 per share, of the Company or any
      securities into which shares of Common Stock may be reclassified after the
      date
      hereof.

     

    “Control”
      (including the terms “controlling”, “controlled by” or “under common control
      with”) shall mean the possession, direct or indirect, of the power to direct or
      cause the direction of the management and policies of a Person, whether through
      the ownership of voting securities, by contract or otherwise.

     

    “Conversion
      Price”
shall
      mean initially $2.25 per share, subject to adjustment as provided in Section
      4.

     

    “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended.

     

    “Indebtedness”
shall
      mean any liability or obligation (i) for borrowed money, other than trade
      payables incurred in the ordinary course of business, (ii) evidenced by bonds,
      debentures, notes, or other similar instruments, (iii) in respect of letters
      of
      credit or other similar instruments (or reimbursement obligations with respect
      thereto), except letters of credit or other similar instruments issued to secure
      payment of trade payables arising in the ordinary course of business consistent
      with past practices, (iv) to pay the deferred purchase price of property or
      services, except trade payables arising in the ordinary course of business
      consistent with past practices, (v) as lessee under capitalized leases, or
      (vi)
      secured by a Lien on any asset of the Company or a Subsidiary, whether or not
      such obligation is assumed by the Company or such Subsidiary.

     

    “Investors”
has
      the
      meaning set forth in the Purchase Agreement.

     

    “Lien”
shall
      mean any lien, mortgage, deed of trust, pledge, security interest, charge or
      encumbrance of any kind (including any conditional sale or other title retention
      agreement, any lease in the nature thereof and any agreement to give any of
      the
      foregoing).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    “Market
      Price”,
      as of
      a particular date (the “Valuation
      Date”),
      shall
      mean the following with respect to any class of securities: (A) if such security
      is then listed on a national stock exchange, the Market Price shall be the
      closing bid price of one share of such security on such exchange on the last
      Trading Day prior to the Valuation Date, provided that if such security has
      not
      traded in the prior ten (10) trading sessions, the Market Price shall be the
      average closing bid price of such security in the most recent ten (10) trading
      sessions during which such security has traded; (B) if such security is then
      included in The Nasdaq Stock Market, Inc. (“Nasdaq”),
      the
      Market Price shall be the closing bid price of one share of such security on
      Nasdaq on the last Trading Day prior to the Valuation Date or, if no such
      closing sale price is available, the average of the high bid and the low ask
      price quoted on Nasdaq as of the end of the last Trading Day prior to the
      Valuation Date, provided that if such security has not traded in the prior
      ten
      (10) trading sessions, the Market Price shall be the average closing price
      of
      one share of such security in the most recent ten (10) trading sessions during
      which such security has traded; (C) if such security is then included in the
      Over-the-Counter Bulletin Board, the Market Price shall be the closing sale
      price of one share of such security on the Over-the-Counter Bulletin Board
      on
      the last Trading Day prior to the Valuation Date or, if no such closing sale
      price is available, the average of the high bid and the low ask price quoted
      on
      the Over-the-Counter Bulletin Board as of the end of the last Trading Day prior
      to the Valuation Date, provided that if such stock has not traded in the prior
      ten (10) trading sessions, the Market Price shall be the average closing price
      of one share of such security in the most recent ten (10) trading sessions
      during which such security has traded; or (D) if such security is then included
      in the “pink sheets,” the Market Price shall be the closing sale price of one
      share of such security on the “pink sheets” on the last Trading Day prior to the
      Valuation Date or, if no such closing sale price is available, the average
      of
      the high bid and the low ask price quoted on the “pink sheets” as of the end of
      the last Trading Day prior to the Valuation Date, provided that if such stock
      has not traded in the prior ten (10) trading sessions, the Market Price shall
      be
      the average closing price of one share of such security in the most recent
      ten
      (10) trading sessions during which such security has traded.

     

    “Person”
shall
      mean an individual, corporation, partnership, limited liability company, trust,
      business trust, association, joint stock company, joint venture, sole
      proprietorship, unincorporated organization, governmental authority or any
      other
      form of entity not specifically listed herein.

     

    “Purchase
      Agreement”
shall
      mean the Purchase Agreement, dated as of even date hereof, and as that agreement
      may be amended from time to time, by and among the Company and the
      Investors.

     

    “Registration
      Rights Agreement”
shall
      mean the Registration Rights Agreement, dated as of even date hereof, and as
      that agreement may be amended from time to time, by and among the Company and
      the Investors.

     

    “Subsidiary”
of
      any
      Person shall mean another Person, an amount of the voting securities, other
      voting ownership or voting partnership interests of which is sufficient to
      elect
      at least a majority of its Board of Directors or other governing body (or,
      if
      there are no such voting interests, 50% or more of the equity interests of
      which) is owned directly or indirectly by such first Person.

     

    “Trading
      Day”
means
      (i) if the relevant stock or security is listed or admitted for trading on
      The
      New York Stock Exchange, Inc. or any other national securities exchange, a
      day
      on which such exchange is open for business; (ii) if the relevant stock or
      security is quoted on Nasdaq or any other system of automated dissemination
      of
      quotations of securities prices, a day on which trades may be effected through
      such system; or (iii) if the relevant stock or security is not listed or
      admitted for trading on any national securities exchange or quoted on Nasdaq
      or
      any other system of automated dissemination of quotation of securities prices,
      a
      day on which the relevant stock or security is traded in a regular way in the
      over-the-counter market and for which a closing bid and a closing asked price
      for such stock or security are available, shall mean a day, other than a
      Saturday or Sunday, on which The New York Stock Exchange, Inc. is open for
      trading.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    “VWAP”
means
      the volume weighted average price and is calculated, for each Trading Day,
      by
      adding up the dollars of Common Stock traded for every transaction (price
      multiplied by the number of shares of Common Stock traded) during such Trading
      Day and then dividing the result by the total number of shares of Common Stock
      traded for such Trading Day.

     

    2. Purchase
      Agreement; Compliance with Securities Act and Legends.
      

     

    (a) This
      Note
      is one of the Company Notes issued pursuant to the Purchase Agreement. This
      Note
      is subject to the terms and conditions of, and entitled to the benefit of,
      the
      provisions of the Purchase Agreement. This Note is transferable and assignable
      to any Person to whom such transfer is permissible under the Purchase Agreement
      and applicable law. The Company agrees to issue from time to time a replacement
      Note in the form hereof to facilitate such transfers and assignments. In
      addition, after delivery of an indemnity in form and substance reasonably
      satisfactory to the Company, the Company also agrees to promptly issue a
      replacement Note if this Note is lost, stolen, mutilated or
      destroyed.

     

    (b) The
      Holder, by acceptance hereof, agrees that it will not offer, sell or otherwise
      dispose of this Note, or any shares of Common Stock to be issued upon exercise
      hereof except under circumstances which will not result in a violation of the
      Securities Act of 1933, as amended, or the rules and regulations promulgated
      thereunder, as amended (the “Act”),
      or
      any state’s securities laws. All shares of Common Stock issued upon exercise of
      this Note shall be stamped or imprinted with a legend if required pursuant
      to
      the terms of the Purchase Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    3. Payment
      of Principal and Interest; Right of Prepayment.
      

     

    (a) Interest
      on this Note shall accrue from the date hereof and shall be payable quarterly
      on
      the last day of March, June, September and December of each year, commencing
      on
      September 30, 2006 (the date any such interest payment is due is hereinafter
      referred to as an “Interest
      Payment Date”).
      Interest payments due and owing hereunder shall be paid, at the option of the
      Company, either in cash or in shares of Common Stock (such shares of Common
      Stock being referred to as “Interest
      Shares”),
      provided that the interest which accrued during any period may be payable in
      Interest Shares if, and only if, (i) the Company delivers written notice (each,
      an “Interest
      Election Notice”)
      of
      such election, which notice must specify the amount of interest that shall
      be
      paid in cash and the amount of interest, if any, that shall be paid in shares
      of
      Common Stock, to each holder of the Company Notes on or prior to the tenth
      (10th)
      Trading
      Day prior to the Interest Payment Date (each, an “Interest
      Notice Due Date”),
      provided that the Company may indicate in such notice that the election
      contained in such notice shall apply to future Interest Payment Dates until
      revised by a subsequent notice, and (ii) as to each Interest Payment Date,
      on
      the tenth (10th)
      Trading
      Day prior to the Interest Payment Date, the Company shall have delivered to
      the
      Holder’s account with DTC a number of shares of Common Stock (the “Interest
      Prepayment Shares”)
      to be
      applied against such Interest Shares, if any, valued at the Conversion Price
      then in effect. On the Interest Payment Date, if the Company has elected to
      pay
      any interest in shares of Common Stock, the Company shall deliver to the
      Holder’s account with DTC a number of shares of Common Stock equal to the
      Interest Shares, which Interest Shares shall be valued at the Conversion Price
      in effect as of the close of business on the day immediately preceding such
      Interest Payment Date; provided that the aggregate number of shares of Common
      Stock otherwise issuable to the Holder on an Interest Payment Date shall be
      reduced by the number of Interest Prepayment Shares previously issued to the
      Holder in connection with such Interest Payment Date. If the amount of Interest
      Prepayment Shares exceeds the amount of Interest Shares issuable to the Holder
      in connection with an Interest Payment Date, then the Holder shall promptly
      return such excess shares to the Company. The right of the Company to make
      any
      interest payment in shares of Common Stock on a particular date is subject
      to
      the satisfaction (or waiver by the Holder) of the following additional
      conditions on such date: (1) there is then an effective registration statement
      covering the Interest Prepayment Shares or the Interest Shares, as the case
      may
      be, to be issued on such date for which no stop order is in effect; (2) no
      Event
      of Default shall exist on such date; (3) the Company’s election to pay any
      interest payment in Interest Shares shall apply equally to all holders of the
      Company Notes; provided, however, in the event the payment of any Interest
      Prepayment Shares or Interest Shares to the Holder or any other holder of
      Company Notes would be prohibited by virtue of the limitations imposed by
      Section 13 of this Note or any other Company Note, then the Company shall make
      any such interest payment in cash to such holder affected by such limitation;
      (4) the average of the VWAPs for the ten (10) Trading Days immediately preceding
      the applicable Interest Notice Due Date or Interest Payment Date, as applicable,
      is equal to or greater than $2.75 (as appropriately adjusted for any stock
      split, stock dividend or other similar corporate action); and (5) the Company
      has sufficient authorized but unissued shares of Common Stock to provide for
      the
      issuance of the Interest Prepayment Shares and the Interest Shares to the Holder
      and the other holders of the Company Notes. To the extent that any of the
      foregoing conditions shall cease to be satisfied at any time between an Interest
      Notice Due Date and the following Interest Payment Date and the Company shall
      have elected to make the associated interest payment in Interest Shares, the
      Holder shall have the option to return the Interest Prepayment Shares issued
      to
      the Holder for such interest payment to the Company and have the Company pay
      such interest payment in cash. At any time the Company delivers a notice to
      the
      Holder of its election to pay the interest in shares of Common Stock, the
      Company shall timely file a prospectus supplement pursuant to Rule 424 of the
      Act disclosing such election.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (b) The
      Company shall make equal monthly payments of principal in an amount determined
      by dividing the original outstanding principal amount of this Note by eighteen
      (18), commencing on November 21, 2006 (the
      “Principal
      Trigger Date”)
      and
      continuing on the first Business Day of each month thereafter (the date any
      such
      monthly principal payment is due is hereinafter referred to as a “Principal
      Payment Date”)
      until
      the principal amount of this Note shall have been paid in full. Monthly
      principal payments due and owing hereunder shall be paid, at the option of
      the
      Company, either in cash or in shares of Common Stock (such shares of Common
      Stock being referred to as “Principal
      Shares”),
      provided that the principal amount payable during any period may be payable
      in
      Principal Shares if, and only if, (i) the Company delivers written notice (each,
      a “Principal
      Election Notice”)
      of
      such election, which notice must specify the amount of principal that shall
      be
      paid in cash and the amount of principal, if any, that shall be paid in shares
      of Common Stock, to each holder of the Company Notes on or prior to the tenth
      (10th)
      Trading
      Day prior to the Principal Payment Date (each, a “Principal
      Notice Due Date”),
      provided that the Company may indicate in such notice that the election
      contained in such notice shall apply to future Principal Payment Dates until
      revised by a subsequent notice, and (ii) as to each Principal Payment Date,
      on
      the tenth (10th)
      Trading
      Day prior to the Principal Payment Date, the Company shall have delivered to
      the
      Holder’s account with DTC a number of shares of Common Stock (the “Principal
      Prepayment Shares”)
      to be
      applied against such Principal Shares valued at the Conversion Price then in
      effect. On the Principal Payment Date, the Company shall deliver to the Holder’s
      account with DTC a number of shares of Common Stock equal to the Principal
      Shares, which Principal Shares shall be valued at the Conversion Price in effect
      as of the close of business on the day immediately preceding such Principal
      Payment Date; provided that the aggregate number of shares of Common Stock
      otherwise issuable to the Holder on a Principal Payment Date shall be reduced
      by
      the number of Principal Prepayment Shares previously issued to the Holder in
      connection with such Principal Payment Date. If the amount of Principal
      Prepayment Shares exceeds the amount of Principal Shares issuable to the Holder
      in connection with a Principal Payment Date, then the Holder shall promptly
      return such excess shares to the Company. The right of the Company to make
      any
      monthly principal payment in shares of Common Stock on a particular date is
      subject to the satisfaction (or waiver by the Holder) of the following
      additional conditions on such date: (1) there is then an effective registration
      statement covering the Principal Prepayment Shares or the Principal Shares,
      as
      the case may be, to be issued on such date for which no stop order is in effect;
      (2) no Event of Default shall exist on such date; (3) the Company’s election to
      pay any such monthly principal payment in Principal Shares shall apply equally
      to all holders of the Company Notes; provided, however, in the event the payment
      of any Principal Prepayment Shares or Principal Shares to the Holder or any
      other holder of Company Notes would be prohibited by virtue of the limitations
      imposed by Section 13 of this Note or any other Company Note, then the Company
      shall make any such principal payment in cash to such holder affected by such
      limitation; (4) the average of the VWAPs for the ten (10) Trading Days
      immediately preceding the applicable Principal Notice Due Date or Principal
      Payment Date, as applicable, is equal to or greater than $2.75 (as appropriately
      adjusted for any stock split, stock dividend or other similar corporate action);
      and (5) the Company has sufficient authorized but unissued shares of Common
      Stock to provide for the issuance of the Principal Prepayment Shares and the
      Principal Shares to the Holder and the other holders of the Company Notes.
      To
      the extent that any of the foregoing conditions shall cease to be satisfied
      at
      any time between a Principal Notice Due Date and the following Principal Payment
      Date and the Company shall have elected to make the associated monthly principal
      payment in Principal Shares, the Holder shall have the option to return the
      Principal Prepayment Shares issued to the Holder for such monthly principal
      payment to the Company and have the Company pay such monthly principal payment
      in cash. At any time the Company delivers a notice to the Holder of its election
      to pay the principal in shares of Common Stock, the Company shall timely file
      a
      prospectus supplement pursuant to Rule 424 of the Act disclosing such election.
      

     

    (c) If
      there
      is an effective registration statement covering the shares of Common Stock
      issuable upon conversion of this Note for which no stop order is in effect,
      the
      Company may, upon twenty (20) Business Days’ prior written notice to the Holder,
      prepay this Note, in whole but not in part, for a price equal to one hundred
      five percent (105%) of the outstanding principal amount of this Note, plus
      all
      accrued but unpaid interest; provided, however, the foregoing shall in no manner
      restrict the Holder from converting this Note prior to the prepayment
      date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    4. Conversion
      Rights.

     

    (a) Subject
      to and upon compliance with the provisions of this Note, for as long as this
      Note is outstanding, the Holder shall have the right, at its option at any
      time
      (subject to the limitations set forth in Section 13 hereof), to convert some
      or
      all of the Note into such number of fully paid and nonassessable shares of
      Common Stock as is obtained by: (i) adding (A) the principal amount of this
      Note
      to be converted and (B) the amount of any accrued but unpaid interest with
      respect to such portion of this Note to be converted; and (ii) dividing the
      result obtained pursuant to clause (i) above by the Conversion Price then in
      effect. The rights of conversion set forth in this Section 4 shall be exercised
      by the Holder by giving written notice to the Company (a “Conversion Notice”)
      that the Holder elects to convert a stated amount of this Note into Common
      Stock
      and, if required, by surrender of this Note (or, in lieu thereof, by delivery
      of
      an appropriate lost security affidavit in the event this Note shall have been
      lost or destroyed) to the Company at its principal office (or such other office
      or agency of the Company as the Company may designate by notice in writing
      to
      the Holder) at any time on the date set forth in such notice (which date shall
      not be earlier than the Company’s receipt of such Conversion Notice), together
      with a statement of the name or names (with address) in which the certificate
      or
      certificates for shares of Common Stock shall be issued.

     

    (b) Promptly
      after receipt of a Conversion Notice and, if required, surrender of this Note
      (or, in lieu thereof, by delivery of an appropriate lost security affidavit
      in
      the event this Note shall have been lost or destroyed), but in no event more
      than three (3) Trading Days thereafter (the “Share
      Delivery Date”),
      the
      Company shall (X) provided the Company’s transfer agent is participating in the
      DTC's Fast Automated Securities Transfer Program and such shares are registered
      pursuant to the Act, credit such aggregate number of shares of Common Stock
      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 Company’s transfer agent is not participating in the DTC Fast Automated
      Securities Transfer Program, issue and deliver, or cause to be issued and
      delivered, to the Holder, registered in such name or names as the Holder may
      direct in writing, a certificate or certificates for the number of whole shares
      of Common Stock issuable upon the conversion of such portion of this Note.
      To
      the extent permitted by law, such conversion shall be deemed to have been
      effected, and the Conversion Price shall be determined, as of the close of
      business on the date on which such Conversion Notice shall have been received
      by
      the Company (the “Conversion
      Date”)
      and,
      if required, this Note shall have been surrendered as aforesaid (or, in lieu
      thereof, an appropriate lost security affidavit has been delivered to the
      Company), and at such time, the rights of the Holder shall cease with respect
      to
      the principal amount of the Notes being converted, and the Person or Persons
      in
      whose name or names any certificate or certificates for shares of Common Stock
      shall be issuable upon such conversion shall be deemed to have become the holder
      or holders of record of the shares represented thereby.

     

    (c) No
      fractional shares shall be issued upon any conversion of this Note into Common
      Stock. If any fractional share of Common Stock would, except for the provisions
      of the first sentence of this Section 4(c), be delivered upon such conversion,
      the Company, in lieu of delivering such fractional share, shall pay to the
      Holder an amount in cash equal to the Market Price of such fractional share
      of
      Common Stock. In case the principal amount of this Note exceeds the principal
      amount being converted, the Company shall, upon such conversion, execute and
      deliver to the Holder, at the expense of the Company, a new Note for the
      principal amount of this Note which is not to be converted.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (d) If
      the
      Company shall, at any time or from time to time while this Note is outstanding,
      pay a dividend or make a distribution on its Common Stock in shares of Common
      Stock, subdivide its outstanding shares of Common Stock into a greater number
      of
      shares or combine its outstanding shares of Common Stock into a smaller number
      of shares or issue by reclassification of its outstanding shares of Common
      Stock
      any shares of its capital stock (including any such reclassification in
      connection with a consolidation or merger in which the Company is the continuing
      corporation), then the Conversion Price in effect immediately prior to the
      date
      upon which such change shall become effective, shall be adjusted by the Company
      so that the Holder thereafter converting this Note shall be entitled to receive
      the number of shares of Common Stock or other capital stock which the Holder
      would have received if the Note had been converted immediately prior to such
      event upon payment of a Conversion Price that has been adjusted to reflect
      a
      fair allocation of the economics of such event to the Holder, without regard
      to
      any conversion limitation specified in this Section 4. Such adjustments shall
      be
      made successively whenever any event listed above shall occur.

     

    (e) If
      any
      capital reorganization, reclassification of the capital stock of the Company,
      consolidation or merger of the Company with another corporation in which the
      Company is not the survivor, or sale, transfer or other disposition of all
      or
      substantially all of the Company’s assets to another corporation shall be
      effected, then, as a condition of such reorganization, reclassification,
      consolidation, merger, sale, transfer or other disposition, lawful and adequate
      provision shall be made whereby the Holder shall thereafter have the right
      to
      purchase and receive upon the basis and upon the terms and conditions herein
      specified and in lieu of the shares of Common Stock immediately theretofore
      issuable upon conversion of this Note such shares of stock, securities or assets
      as would have been issuable or payable with respect to or in exchange for a
      number of shares of Common Stock equal to the number of shares of Common Stock
      immediately theretofore issuable upon conversion of this Note, had such
      reorganization, reclassification, consolidation, merger, sale, transfer or
      other
      disposition not taken place, and in any such case appropriate provision shall
      be
      made with respect to the rights and interests of the Holder to the end that
      the
      provisions hereof (including, without limitation, provision for adjustment
      of
      the Conversion Price) shall thereafter be applicable, as nearly equivalent
      as
      may be practicable in relation to any shares of stock, securities or assets
      thereafter deliverable upon the conversion hereof. The Company shall not effect
      any such consolidation, merger, sale, transfer or other disposition unless
      prior
      to or simultaneously with the consummation thereof the successor corporation
      (if
      other than the Company) resulting from such consolidation or merger, or the
      corporation purchasing or otherwise acquiring such assets or other appropriate
      corporation or entity shall assume the obligation to deliver to the Holder,
      at
      the last address of the Holder appearing on the books of the Company, such
      shares of stock, securities or assets as, in accordance with the foregoing
      provisions, the Holder may be entitled to purchase, without regard to any
      conversion limitation specified in Section 4, and the other obligations under
      this Note. The provisions of this paragraph (e) shall similarly apply to
      successive reorganizations, reclassifications, consolidations, mergers, sales,
      transfers or other dispositions.

     

    (f) In
      case
      the Company shall fix a payment date for the making of a distribution to all
      holders of Common Stock (including any such distribution made in connection
      with
      a consolidation or merger in which the Company is the continuing corporation)
      of
      evidences of indebtedness or assets (other than cash dividends or cash
      distributions payable out of consolidated earnings or earned surplus or
      dividends or distributions referred to in Section 4(d)), or subscription rights,
      the Conversion Price to be in effect after such payment date shall be determined
      by multiplying the Conversion Price in effect immediately prior to such payment
      date by a fraction, the numerator of which shall be the total number of shares
      of Common Stock outstanding multiplied by the Market Price of Common Stock
      immediately prior to such payment date, less the fair market value (as
      determined by the Board in good faith) of said assets or evidences of
      indebtedness so distributed, or of such subscription rights, and the denominator
      of which shall be the total number of shares of Common Stock outstanding
      multiplied by such Market Price immediately prior to such payment date. Such
      adjustment shall be made successively whenever such a payment date is
      fixed.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (g) An
      adjustment to the Conversion Price shall become effective immediately after
      the
      payment date in the case of each dividend or distribution and immediately after
      the effective date of each other event which requires an
      adjustment.

     

    (h) In
      the
      event that, as a result of an adjustment made pursuant to this Section 4, the
      Holder shall become entitled to receive any shares of capital stock of the
      Company other than shares of Common Stock, the number of such other shares
      so
      receivable upon conversion of this Note shall be subject thereafter to
      adjustment from time to time in a manner and on terms as nearly equivalent
      as
      practicable to the provisions contained in this Note.

     

    (i) Except
      as
      provided in Section 4(j) hereof, if and whenever the Company shall issue or
      sell, or is, in accordance with any of Sections 4(i)(i) through 4(i)(v) hereof,
      deemed to have issued or sold, any Additional Shares of Common Stock (as defined
      below) for no consideration or for a consideration per share less than the
      Conversion Price in effect immediately prior to the time of such issue or sale,
      then and in each such case (a “Trigger
      Issuance”)
      the
      then-existing Conversion Price shall be reduced, as of the close of business
      on
      the effective date of the Trigger Issuance, to a Conversion Price equal to
      the
      lowest price per share at which any Additional Share of Common Stock was issued
      or sold or deemed to be issued or sold in such Trigger Issuance. 

     

    For
      purposes of this subsection (i), “Additional
      Shares of Common Stock”
shall
      mean all shares of Common Stock issued by the Company or deemed to be issued
      pursuant to this subsection (i), other than Excluded Issuances (as defined
      in
      subsection (j) hereof).

     

    For
      purposes of this Section 4(i), the following subsections (i)(i) to (i)(v) shall
      also be applicable (subject, in each such case, to the provisions of Section
      4(j) hereof):

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (i) In
      case
      at any time after the date hereof the Company shall in any manner grant, issue
      or sell any stock or security convertible into or exchangeable for Common Stock
      (“Convertible
      Securities”)
      or any
      warrants or other rights to subscribe for or to purchase, or any options for
      the
      purchase of, Common Stock or any Convertible Securities (such warrants, rights
      or options being called “Options”),
      whether or not the right to convert, exchange or exercise any such Convertible
      Securities or such Options are immediately exercisable, and the price per share
      for which Common Stock is issuable upon the conversion or exchange of such
      Convertible Securities or upon the exercise of such Options (determined by
      dividing (i) the sum of (x) the total amount, if any, received or receivable
      by
      the Company as consideration for the issue or sale of such Convertible
      Securities or the granting of such Options, plus (y) the aggregate amount of
      additional consideration, if any, payable to the Company upon the conversion
      or
      exchange of all such Convertible Securities or the exercise of all such Options,
      plus (z), in the case of such Options to purchase Convertible Securities, the
      aggregate amount of additional consideration, if any, payable upon the
      conversion or exchange of such Convertible Securities, by (ii) the maximum
      number of shares of Common Stock issuable upon the conversion or exchange of
      all
      such Convertible Securities, or upon the exercise of such Options, or upon
      the
      conversion or exchange of all such Convertible Securities issuable upon the
      exercise of such Options), shall be less than the Conversion Price in effect
      immediately prior to the time of the issue or sale of such Convertible
      Securities or the granting of such Options, then the total number of shares
      of
      Common Stock issuable upon the conversion or exchange of such Convertible
      Securities, or the exercise of such Options, or upon the conversion or exchange
      of the maximum amount of such Convertible Securities issuable upon the exercise
      of such Options shall be deemed to have been issued for such price per share
      as
      of the date of the issuance or sale of such Convertible Securities or the
      granting of such Options (including Options to purchase Convertible Securities)
      and thereafter shall be deemed to be outstanding for purposes of adjusting
      the
      Conversion Price. Except as otherwise provided in Section 4(i)(ii), no
      additional adjustment of the Conversion Price shall be made upon the actual
      issue of such Common Stock upon conversion or exchange of such Convertible
      Securities or upon exercise of such Options.

     

    (ii) Upon
      the
      happening of any of the following events, namely, if (A) the purchase price
      provided for in any Option referred to in Section 4(i)(i) hereof, (B) the
      additional consideration, if any, payable upon the conversion or exchange of
      any
      Convertible Securities referred to in Section 4(i)(i), or (C) the rate at which
      Convertible Securities referred to in Section 4(i)(i) are convertible into
      or
      exchangeable for Common Stock shall increase or decrease at any time (including,
      but not limited to, changes under or by reason of provisions designed to protect
      against dilution), the Conversion Price in effect at the time of such event
      shall forthwith be readjusted to the Conversion Price which would have been
      in
      effect at such time had such Options or Convertible Securities still outstanding
      provided for such changed purchase price, additional consideration or conversion
      rate, as the case may be, at the time initially granted, issued or sold, but
      only if as a result of such adjustment the Conversion Price then in effect
      hereunder is thereby reduced. Upon the expiration or termination of any
      unexercised Option or unconverted or unexchanged Convertible Security (or
      portion thereof) which resulted in an adjustment to the Conversion Price
      pursuant to the terms of Section 4(i), the Conversion Price shall be readjusted
      to such Conversion Price as would have been in effect had such Option or
      Convertible Security (or portion thereof) never been issued.  

     

    (iii) In
      case
      any shares of Common Stock, Options or Convertible Securities shall be issued
      or
      sold for cash, the consideration received therefor shall be deemed to be the
      net
      amount received by the Company therefor, after deduction therefrom of any
      expenses incurred or any underwriting commissions or concessions paid or allowed
      by the Company in connection therewith. In case any shares of Common Stock,
      Options or Convertible Securities shall be issued or sold for a consideration
      other than cash or for a consideration including cash and such other
      consideration, the amount of the consideration other than cash received by
      the
      Company shall be deemed to be the fair value of such consideration as determined
      in good faith by the Board, after deduction of any expenses incurred or any
      underwriting commissions or concessions paid or allowed by the Company in
      connection therewith. Subject to the provisions of this Section 4(i), in case
      the Company shall declare a dividend or make any other distribution upon any
      stock of the Company (other than the Common Stock) payable in Common Stock,
      Options or Convertible Securities, then any Common Stock, Options or Convertible
      Securities, as the case may be, issuable in payment of such dividend or
      distribution shall be deemed to have been issued or sold without
      consideration.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (iv) In
      case
      the Company shall take a record of the holders of its Common Stock for the
      purpose of entitling them (A) to receive a dividend or other distribution
      payable in Common Stock, Options or Convertible Securities or (B) to subscribe
      for or purchase Common Stock, Options or Convertible Securities, then such
      record date shall be deemed to be the date of the issue or sale of the shares
      of
      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. If the Company
      shall
      have taken a record of the holders of its Common Stock for the purpose of
      entitling them to receive a dividend or distribution or subscription or purchase
      rights and shall, thereafter and before the distribution to stockholders
      thereof, legally abandon its plan to pay or deliver such dividend, distribution,
      subscription or purchase rights, then thereafter no adjustment shall be required
      by reason of the taking of such record and any such adjustment previously made
      in respect thereof shall be automatically rescinded and annulled.

     

    (v) The
      number of shares of Common Stock outstanding at any given time shall not include
      shares owned or held by or for the account of the Company or any of its
      wholly-owned subsidiaries, and the disposition of any such shares (other than
      the cancellation or retirement thereof) shall be considered an issue or sale
      of
      Common Stock for the purpose of this subsection (i).

     

    (j) Anything
      herein to the contrary notwithstanding, the Company shall not be required to
      make any adjustment to the Conversion Price in the case of (i) issuances of
      Common Stock upon grant or exercise of Options which may hereafter be granted
      or
      exercised under the Company’s 2004 Stock Option and Stock Incentive Plan or any
      equity incentive or stock option plan adopted by the stockholders of the
      Company; (ii) issuances of shares of Common Stock arising from any of the
      existing obligations set forth on Schedule
      A
      to the
      Purchase Agreement; (iii) securities issued pursuant to the Purchase Agreement
      and securities issued upon the exercise or conversion of those securities,
      (iv)
      issuances of securities to distributors of the Company’s products; (v) issuances
      of securities pursuant to any subsequent agreement between the Investors and
      the
      Company; (vi) issuances of securities as consideration for a merger or
      consolidation with (provided, that, the stockholders of the Company possessing
      the power to elect a majority of the Board prior to such merger or consolidation
      continue to possess such power with respect to such surviving entity following
      the merger or consolidation), or purchase of assets from, a non-Affiliated
      third
      party or in connection with any strategic partnership or joint venture with
      a
      non-Affiliated third party with the Company (the primary purpose of any such
      action is not to raise equity capital); (vii) issuances of shares of Common
      Stock in the ordinary course of business as payment for services rendered (and
      not for cash) to the Company so long as the aggregate amount of all such
      issuances do not exceed ten percent (10%) of the total number of shares of
      Common Stock outstanding as of the date hereof; (viii) shares of Common Stock
      issued or issuable upon the conversion or exercise of Options or Convertible
      Securities outstanding on the date hereof, provided such securities are not
      amended after the date hereof; or (ix) shares of Common Stock issued or
      issuable by reason of a dividend, stock split or other distribution payable
      pro
      rata to all holders of Common Stock (but only to the extent that such a
      dividend, split or distribution results in an adjustment in the Conversion
      Price
      pursuant to the other provisions of this Note) (collectively, “Excluded
      Issuances”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (k) In
      case
      at any time:

     

    (i) the
      Company shall declare any dividend upon its Common Stock or any other class
      or
      series of capital stock of the Company payable in cash or stock or make any
      other distribution to the holders of its Common Stock or any such other class
      or
      series of capital stock;

     

    (ii) the
      Company shall offer for subscription pro rata
      to the
      holders of its Common Stock or any other class or series of capital stock of
      the
      Company any additional shares of stock of any class or other rights;
      or

     

    (iii) there
      shall be any capital reorganization or reclassification of the capital stock
      of
      the Company, any acquisition or a liquidation, dissolution or winding up of
      the
      Company; 

     

    then,
      in
      any one or more of said cases, the Company shall give, by delivery in person
      or
      by certified or registered mail, return receipt requested, addressed to the
      Holder at the address of such Holder as shown on the books of the Company,
      (a)
      at least 20 Business Days’ prior written notice of the date on which the books
      of the Company shall close or a record shall be taken for such dividend,
      distribution or subscription rights or for determining rights to vote in respect
      of any event set forth in clause (iii) of this Section 4(k) and (b) in the
      case
      of any event set forth in clause (iii) of this Section 4(k), at least 20
      Business Days’ prior written notice of the date when the same shall take place.
      Such notice in accordance with the foregoing clause (a) shall also specify,
      in
      the case of any such dividend, distribution or subscription rights, the date
      on
      which the holders of Common Stock or such other class or series of capital
      stock
      shall be entitled thereto and such notice in accordance with the foregoing
      clause (b) shall also specify the date on which the holders of Common Stock
      and
      such other series or class of capital stock shall be entitled to exchange their
      Common Stock and other stock for securities or other property deliverable upon
      consummation of the applicable event set forth in clause (iii) of this Section
      4(k).

    (l) Upon
      any
      adjustment of the Conversion Price, then and in each such case the Company
      shall
      give prompt written notice thereof, by delivery in person or by certified or
      registered mail, return receipt requested, addressed to the Holder at the
      address of such Holder as shown on the books of the Company, which notice shall
      state the Conversion Price resulting from such adjustment and setting forth
      in
      reasonable detail the method upon which such calculation is based.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    (m) The
      Company shall at all times to reserve and keep available out of its authorized
      Common Stock, solely for the purpose of issuance upon conversion of this Note
      as
      herein provided, such number of shares of Common Stock as shall then be issuable
      upon the conversion of this Note. The Company covenants that all shares of
      Common Stock which shall be so issued shall be duly and validly issued and
      fully
      paid and nonassessable, and free from all taxes, liens and charges with respect
      to the issue thereof, and, without limiting the generality of the foregoing,
      and
      that the Company will from time to time take all such action as may be requisite
      to assure that the par value per share of the Common Stock is at all times
      equal
      to or less than the Conversion Price in effect at the time. The Company shall
      take all such action as may be necessary to assure that all such shares of
      Common Stock may be so issued without violation of any applicable law or
      regulation, or of any requirement of any national securities exchange upon
      which
      the Common Stock may be listed. The Company shall not take any action which
      results in any adjustment of the Conversion Price if the total number of shares
      of Common Stock issued and issuable after such action upon conversion of this
      Note would exceed the total number of shares of Common Stock then authorized
      by
      the Company’s Certificate of Incorporation.

     

    (n) The
      issuance of certificates for shares of Common Stock upon conversion of this
      Note
      shall be made without charge to the holders thereof for any issuance tax in
      respect thereof, provided that the Company shall not be required to pay any
      tax
      which may be payable in respect of any transfer involved in the issuance and
      delivery of any certificate in a name other than that of the
      Holder.

     

    (o) The
      Company will not at any time close its transfer books against the transfer,
      as
      applicable, of this Note or of any shares of Common Stock issued or issuable
      upon the conversion of this Note in any manner which interferes with the timely
      conversion of this Note, except as may otherwise be required to comply with
      applicable securities laws.

     

    (p) If
      the
      Company shall fail to issue 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 conversion of any amount of this Note 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 date of such Conversion
      Failure in an amount equal to 2.0% 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 Market 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 4(p) 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 the Holder's conversion of
      any
      principal amount of this Note, 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) Trading Days after the Holder's request
      and
      in the Holder's discretion, either (i) 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 deliver such certificate (and to issue
      such Common Stock) shall terminate, or (ii) 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 (A) such number of shares of Common Stock,
      times (B) the Market Price on the Conversion Date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (q) 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 principal
      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 physical surrender and reissue of this Note.
      The
      Holder and the Company shall maintain records showing the amounts 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.

     

    5. Covenants.
      So long
      as any amount due under this Note is outstanding and until indefeasible payment
      in full of all amounts payable by the Company hereunder: 

     

    (a) The
      Company shall promptly notify the Holder in writing of (A) any change in the
      business or the operations the Company or any Subsidiary that would reasonably
      be expected to have a Material Adverse Effect, and (B) any information which
      indicates that any financial statements which are the subject of any
      representation contained in the Transaction Documents, or which are furnished
      to
      the Holder pursuant to the Transaction Documents, fail, in any material respect,
      to present fairly, as of the date thereof and for the period covered thereby,
      the financial condition and results of operations purported to be presented
      therein.

     

    (b) The
      Company shall promptly notify the Holder of the occurrence of any Event of
      Default or any event which, with the giving of notice, the lapse of time or
      both
      would constitute an Event of Default, which notice shall include a written
      statement as to such occurrence, specifying the nature thereof and the action
      (if any) which is proposed to be taken with respect thereto; provided, however,
      in no event shall the Company disclose to the Holder, without its prior written
      consent, any material non-public information and, by acceptance of this Note,
      the Holder agrees to maintain in confidence any material non-public information
      that the Holder consented, in writing, be disclosed to it. 

     

    (c) The
      Company shall not and shall cause each Subsidiary not to amend its bylaws,
      certificate of incorporation or other charter document in a manner adverse
      to
      the holders of the Company Notes.

     

    (d) The
      Company shall not incur any indebtedness that is senior to the indebtedness
      evidenced by the Company Notes, including any debtor-in-possession financing,
      without the prior written consent of the holders of Company Notes representing
      at least 50% of the then-outstanding principal amount of Company Notes (the
      “Majority
      Holders”).

     

    6. Event
      of Default.
      The
      occurrence of any of following events shall constitute an “Event
      of Default”
      hereunder:

     

    (a) the
      failure of the Company to make any payment of principal on this Note when due,
      whether at a Principal Payment Date, at maturity, upon acceleration or
      otherwise;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b) the
      failure of the Company to make any payment of interest on this Note, or any
      other amounts due under the other Transaction Documents (as defined under the
      Purchase Agreement) when due, whether on an Interest Payment Date, at maturity,
      upon acceleration or otherwise, and such failure continues for more than five
      (5) days;

     

    (c) the
      Company and/or its Subsidiaries fail to make a required payment or payments
      on
      Indebtedness of $500,000 or more in aggregate principal amount and such failure
      continues for more than twenty (20) days;

     

    (d) there
      shall have occurred an acceleration of the stated maturity of any Indebtedness
      of the Company or its Subsidiaries of $500,000 or more in aggregate principal
      amount (which acceleration is not rescinded, annulled or otherwise cured within
      twenty (20) days of receipt by the Company or a Subsidiary of notice of such
      acceleration);

     

    (e) the
      Company makes an assignment for the benefit of creditors or admits in writing
      its inability to pay its debts generally as they become due; or an order,
      judgment or decree is entered adjudicating the Company as bankrupt or insolvent;
      or any order for relief with respect to the Company is entered under the Federal
      Bankruptcy Code or any other bankruptcy or insolvency law; or the Company
      petitions or applies to any tribunal for the appointment of a custodian,
      trustee, receiver or liquidator of the Company or of any substantial part of
      the
      assets of the Company, or commences any proceeding relating to it under any
      bankruptcy, reorganization, arrangement, insolvency, readjustment of debt,
      dissolution or liquidation law of any jurisdiction; or any such petition or
      application is filed, or any such proceeding is commenced, against the Company
      and either (i) the Company by any act indicates its approval thereof, consents
      thereto or acquiescence therein or (ii) such petition application or proceeding
      is not dismissed within sixty (60) days;

     

    (f) a
      final,
      non-appealable judgment which, in the aggregate with other outstanding final
      judgments against the Company and its Subsidiaries, exceeds $500,000 shall
      be
      rendered against the Company or a Subsidiary and within sixty (60) days after
      entry thereof, such judgment is not discharged or execution thereof stayed
      pending appeal, or within sixty (60) days after the expiration of such stay,
      such judgment is not discharged;

     

    (g) if
      any
      representation or statement of material fact made in any Transaction Document
      or
      furnished to the Holder at any time by or on behalf of the Company proves to
      have been false in any material respect when made or furnished; or

     

    (h) if
      the
      Company fails to observe or perform in any material respect any of its covenants
      contained in the Transaction Documents (other than any failure (A) which is
      covered by Section 6(a), (b) or (g) and (B) relating to the delivery of any
      Securities (as defined in the Purchase Agreement) to the Holder or the removal
      of any legends on such Securities, at the time required as set forth in the
      Purchase Agreement or the Securities, which delivery or removal shall constitute
      an Event of Default if not cured within five (5) days from the applicable due
      date (it being acknowledged and agreed by the Company that the foregoing shall
      in no event reduce the obligation of the Company to pay any damages set forth
      in
      the Purchase Agreement or the Securities, as the case may be, for failure to
      deliver the Securities or remove the legend therefrom by the applicable due
      date)), and such failure continues for twenty (20) days after receipt by the
      Company of notice thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Upon
      the
      occurrence of any such Event of Default all unpaid principal and accrued
      interest under this Note shall become immediately due and payable (A) upon
      election of the Holder, with respect to (a) through (d) and (f) through (h),
      and
      (B) automatically, with respect to (e). Upon the occurrence of any Event of
      Default, the Holder may, in addition to declaring all amounts due hereunder
      to
      be immediately due and payable, pursue any available remedy, whether at law
      or
      in equity, including, without limitation, exercising its rights under the other
      Transaction Documents. If an Event of Default occurs, the Company shall pay
      to
      the Holder the reasonable attorneys’ fees and disbursements and all other
      reasonable out-of-pocket costs incurred by the Holder in order to collect
      amounts due and owing under this Note or otherwise to enforce the Holder’s
      rights and remedies hereunder and under the other Transaction
      Documents.

     

    7. No
      Waiver.
      No
      delay or omission on the part of the Holder in exercising any right under this
      Note shall operate as a waiver of such right or of any other right of the
      Holder, nor shall any delay, omission or waiver on any one occasion be deemed
      a
      bar to or waiver of the same or any other right on any future o
      ccasion.

     

    8. Amendments
      in Writing.
      Any
      term of this Note may be amended or waived upon the written consent of the
      Company and the Majority Holders; provided,
      that
      (x) any such amendment or waiver must apply to all outstanding Company Notes;
      and (y) without the consent of the Holder hereof, no amendment or waiver shall
      (i) change the Principal Trigger Date of this Note, (ii) reduce the principal
      amount of this Note or the interest rate due hereon, (iii) change the Conversion
      Price or (iv) change the place of payment of this Note. No such waiver or
      consent on any one instance shall be construed to be a continuing waiver or
      a
      waiver in any other instance unless it expressly so provides.

     

    9. Waivers.
      The
      Company hereby forever waives presentment, demand, presentment for payment,
      protest, notice of protest, notice of dishonor of this Note and all other
      demands and notices in connection with the delivery, acceptance, performance
      and
      enforcement of this Note.

     

    10. Waiver
      of Jury Trial.
      THE
      COMPANY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
      ARISING OUT OF OR BASED UPON THIS NOTE OR ANY CONTEMPLATED TRANSACTION,
      INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THE COMPANY
      HAS
      REVIEWED THIS WAIVER WITH ITS COUNSEL.

     

    11. Governing
      Law; Consent to Jurisdiction.
      This
      Note shall be governed by and construed under the law of the State of New York,
      without giving effect to the conflicts of law principles thereof. The Company
      and, by accepting this Note, the Holder, each irrevocably submits to the
      exclusive jurisdiction of the courts of the State of New York located in New
      York County and the United States District Court for the Southern District
      of
      New York for the purpose of any suit, action, proceeding or judgment relating
      to
      or arising out of this Note and the transactions contemplated hereby. Service
      of
      process in connection with any such suit, action or proceeding may be served
      on
      each party hereto anywhere in the world by the same methods as are specified
      for
      the giving of notices under this Note. The Company and, by accepting this Note,
      the Holder, each irrevocably consents to the jurisdiction of any such court
      in
      any such suit, action or proceeding and to the laying of venue in such court.
      The Company and, by accepting this Note, the Holder, each irrevocably waives
      any
      objection to the laying of venue of any such suit, action or proceeding brought
      in such courts and irrevocably waives any claim that any such suit, action
      or
      proceeding brought in any such court has been brought in an inconvenient
      forum.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    12. Costs.
      If
      action is instituted to collect on this Note, the Company promises to pay all
      costs and expenses, including reasonable attorney’s fees, incurred in connection
      with such action.

     

    13. Limitations
      on Conversion.
      Notwithstanding anything to the contrary contained herein, the number of shares
      that may be acquired by the Holder upon any conversion of this Note (or
      otherwise in respect hereof) or upon issuance by the Company of any Principal
      Shares or Interest Sharse shall be limited to the extent necessary to insure
      that, following such conversion (or other issuance, including any issuance
      of
      Principal Shares or Interest Shares), the total number of shares of Common
      Stock
      then beneficially owned by such Holder and its Affiliates and any other Persons
      whose beneficial ownership of Common Stock would be aggregated with the Holder’s
      for purposes of Section 13(d) of the Exchange Act, does not exceed 4.99% of
      the
      total number of issued and outstanding shares of Common Stock (including for
      such purpose the shares of Common Stock issuable upon such exercise) (the
“Maximum
      Percentage”).
      For
      such purposes, beneficial ownership shall be determined in accordance with
      Section 13(d) of the Exchange Act and the rules and regulations promulgated
      thereunder. Each exercise of conversion rights by the Holder pursuant to Section
      4 hereof will constitute a representation by the Holder that it has evaluated
      the limitation set forth in this Section and determined that issuance of the
      full number of shares of Common Stock requested in such conversion notice is
      permitted under this Section. This provision shall not restrict the number
      of
      shares of Common Stock which a Holder may receive or beneficially own in order
      to determine the amount of securities or other consideration that such Holder
      may receive in the event of a transaction contemplated in Sections 4(b) or
      (c)
      of this Note. By written notice to the Company, the Holder may (i) waive the
      provisions of this Section but any such waiver will not be effective until
      the
      61st
      day
      after such notice is delivered to the Company, nor will any such waiver effect
      any other Holder and (ii) increase or decrease the Maximum Percentage to any
      other percentage not in excess of 9.99% specified in such notice; provided
      that
      (A) any such increase will not be effective until the sixty-first
      (61st)
      day
      after such notice is delivered to the Company, and (B) any such increase or
      decrease will apply only to the Holder and not to any other holder of the
      Company Notes.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    14. Notices.
      All
      notices hereunder shall be given in writing and shall be deemed delivered when
      received by the other party hereto at the address set forth in the Purchase
      Agreement or at such other address as may be specified by such party from time
      to time in accordance with the Purchase Agreement.

     

    15. Successors
      and Assigns.
      This
      Note shall be binding upon the successors or assigns of the Company and shall
      inure to the benefit of the successors and assigns of the Holder.

     

    16. Specific
      Performance.
      The
      Company acnkowledges that any violation or breach of its obligations under
      this
      Note shall result in immediate and irreparable injury to the Holder for which
      a
      remedy at law would be inadequate. Accordingly, in the event of any breach
      or
      threatened breach by the Company of its obligations under this Note, the Holder
      shall be entitled to have such court compel the Company to specifically perform
      its obligations under this Note.

     

    17. Injunction
      - Posting of Bond.
      In the
      event the Holder shall elect to convert this Note or a portion thereof, the
      Company may not refuse conversion based on any claim that the Holder or any
      one
      associated or affiliated with the Holder has been engaged in any violation
      of
      law, unless, an injunction from a court, on notice, restraining and or enjoining
      conversion of all or part of this Note shall have been sought and obtained
      and
      the Company posts a surety bond for the benefit of the Holder in the amount
      of
      130% of the then-outstanding principal amount of this Note, which is subject
      to
      the injunction, which bond shall remain in effect until the completion of
      arbitration/litigation of the dispute and the proceeds of which shall be payable
      to the Holder to the extent it obtains judgment. 

     

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Note to be signed in its name
      effective as of the date first above written.

    

    
      	 	 	 
	 	THE
              TUBE
              MEDIA CORP.
	 
 	 
 	 
 
	Date: 	By:  	 
	 	
              

            
	 	Name
	 	Title

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