Document:

Exhibit
      4.4

    Form
      of Warrant

    

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK WHICH MAY BE PURCHASED UPON THE EXERCISE
      OF THIS WARRANT HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT AND HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
      STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE,
      PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF
      COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH SALE, OFFER,
      PLEDGE OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
      REQUIREMENTS OF THE ACT AND OF ANY APPLICABLE STATE SECURITIES
      LAWS.

    

    ITEC
      ENVIRONMENTAL GROUP INC.

    

    COMMON
      STOCK PURCHASE WARRANT

     

    
      
        

      

    

    

    
      	
              No.

            	
              Void
                after April 15, 2010

            

    

     

    THIS
      CERTIFIES THAT, for value received, _______________ (the "Holder") is entitled
      to subscribe for and purchase ___________ shares (as such number of shares
      shall
      be adjusted pursuant to Section 3 hereof, thus adjusting the per share Exercise
      Price) of the fully paid and nonassessable Common Stock, $0.001 par value (the
      "Shares"), of Itec Environmental Group, Inc., a Delaware corporation (the
      "Company"), at the exercise price of $.06 per share (the "Exercise Price"),
      subject to the provisions and upon the terms and conditions hereinafter set
      forth. 

    

    1.
       Method
      of
      Exercise; Payment.

    

    (a)
       Cash
      Exercise. The purchase rights represented by this Warrant may be exercised
      by
      the Holder, in whole or in part, by the surrender of this Warrant (with the
      notice of exercise form attached hereto as Exhibit
      A
      duly
      executed) at the principal office of the Company, and by the payment to the
      Company, by certified, cashier's or other check acceptable to the Company or
      by
      wire transfer to an account designated by the Company, of an amount equal to
      the
      aggregate Exercise Price of the Shares being purchased.

    

    (b)
       Net
      Issue
      Exercise. In lieu of exercising this Warrant, the Holder may elect to receive
      Shares equal to the value of this Warrant (or the portion thereof being
      canceled) by surrender of this Warrant at the principal office of the Company
      together with notice of such election, in which event the Company shall issue
      to
      the Holder a number of Shares computed using the following formula:

     

    X
      = Y
      (A-B)

    -------

    A

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Where
      X
 =
      the
      number of the Shares to be issued to the Holder.

    

    Y
      =
      the
      number of the Shares purchasable under this Warrant.

    

    A
      =
      the
      fair market value of one Share on the date of determination.

    

    B
      =
      the per
      share Exercise Price (as adjusted to the date of such
      calculation).

    

    (c)
       Fair
      Market Value. For purposes of this Section 1, the per share fair market value
      of
      the Shares shall mean:

    

    (i)
       If
      the
      Company's Common Stock is publicly traded, the per share fair market value
      of
      the Shares shall be the average of the closing prices of the Common Stock as
      quoted on the Nasdaq National Market or the principal exchange on which the
      Common Stock is listed, or if not so listed then the fair market value shall
      be
      the average of the closing bid prices of the Common Stock as published in The
      Wall Street Journal, in each case for the fifteen (15) trading days ending
      five
      (5) trading days prior to the date of determination of fair market
      value;

    

    (ii)
       If
      the
      Company's Common Stock is not so publicly traded, the per share fair market
      value of the Shares shall be such fair market value as is determined in good
      faith by the Board of Directors of the Company after taking into consideration
      factors it deems appropriate, including, without limitation, recent sale and
      offer prices of the capital stock of the Company in private transactions
      negotiated at arm's length.

    

    (d)
       Stock
      Certificates. In the event of any exercise of the rights represented by this
      Warrant, certificates for the Shares so purchased shall be delivered to the
      Holder within a reasonable time and, unless this Warrant has been fully
      exercised or has expired, a new Warrant representing the shares with respect
      to
      which this Warrant shall not have been exercised shall also be issued to the
      Holder within such time.

    

    2.
       Stock
      Fully Paid; Reservation of Shares. All of the Shares issuable upon the exercise
      of the rights represented by this Warrant will, upon issuance and receipt of
      the
      Exercise Price therefor, be fully paid and nonassessable, and free from all
      taxes, liens and charges with respect to the issue thereof. During the period
      within which the rights represented by this Warrant may be exercised, the
      Company shall at all times have authorized and reserved for issuance sufficient
      shares of its Common Stock to provide for the exercise of the rights represented
      by this Warrant.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.
       Adjustments.
      Subject to the provisions of Section 11 hereof, the number and kind of
      securities purchasable upon the exercise of this Warrant and the Exercise Price
      therefor shall be subject to adjustment from time to time upon the occurrence
      of
      certain events, as follows:

    

    (a)
       Reclassification.
      In the case of any reclassification or change of securities of the class
      issuable upon exercise of this Warrant (other than a change in par value, or
      from par value to no par value, or from no par value to par value, or as a
      result of a subdivision or combination), or in case of any merger of the Company
      with or into another corporation (other than a merger with another corporation
      in which the Company is the acquiring and the surviving corporation and which
      does not result in any reclassification or change of outstanding securities
      issuable upon exercise of this Warrant), or in case of any sale of all or
      substantially all of the assets of the Company, the Company, or such successor
      or purchasing corporation, as the case may be, shall duly execute and deliver
      to
      the holder of this Warrant a new Warrant (in form and substance reasonably
      satisfactory to the holder of this Warrant), or the Company shall make
      appropriate provision without the issuance of a new Warrant, so that the holder
      of this Warrant shall have the right to receive, at a total purchase price
      not
      to exceed that payable upon the exercise of the unexercised portion of this
      Warrant, and in lieu of the shares of Common Stock theretofore issuable upon
      exercise of this Warrant, (i) the kind and amount of shares of stock, other
      securities, money and property receivable upon such reclassification, change,
      merger or sale by a holder of the number of shares of Common Stock then
      purchasable under this Warrant, or (ii) in the case of such a merger or sale
      in
      which the consideration paid consists all or in part of assets other than
      securities of the successor or purchasing corporation, at the option of the
      Holder of this Warrant, the securities of the successor or purchasing
      corporation having a value at the time of the transaction equivalent to the
      fair
      market value of the Common Stock at the time of the transaction. The provisions
      of this subparagraph (a) shall similarly apply to successive reclassifications,
      changes, mergers and transfers.

     

    (b)
       Stock
      Splits, Dividends and Combinations. In the event that the Company shall at
      any
      time subdivide the outstanding shares of Common Stock or shall issue a stock
      dividend on its outstanding shares of Common Stock the number of Shares issuable
      upon exercise of this Warrant immediately prior to such subdivision or to the
      issuance of such stock dividend shall be proportionately increased, and the
      Exercise Price shall be proportionately decreased, and in the event that the
      Company shall at any time combine the outstanding shares of Common Stock the
      number of Shares issuable upon exercise of this Warrant immediately prior to
      such combination shall be proportionately decreased, and the Exercise Price
      shall be proportionately increased, effective at the close of business on the
      date of such subdivision, stock dividend or combination, as the case may
      be.

    

    4.
       Notice
      of
      Adjustments. Whenever the number of Shares purchasable hereunder or the Exercise
      Price thereof shall be adjusted pursuant to Section 3 hereof, the Company shall
      provide notice to the Holder setting forth, in reasonable detail, the event
      requiring the adjustment, the amount of the adjustment, the method by which
      such
      adjustment was calculated, and the number and class of shares which may be
      purchased thereafter and the Exercise Price therefor after giving effect to
      such
      adjustment.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    5.
       Fractional
      Shares. This Warrant may not be exercised for fractional shares. In lieu of
      fractional shares the Company shall make a cash payment therefor based upon
      the
      Exercise Price then in effect and the fair market value of the shares then
      obtaining (calculated in accordance with Section 1(c) hereof as if the shares
      were the Shares referred to in such Section).

    

    6.
       Representations
      of the Company. The Company represents that all corporate actions on the part
      of
      the Company, its officers, directors and shareholders necessary for the sale
      and
      issuance of the Shares pursuant hereto and the performance of the Company's
      obligations hereunder were taken prior to and are effective as of the effective
      date of this Warrant.

    

    7.
       Representations
      and Warranties by the Holder. The Holder represents and warrants to the Company
      as follows:

    

    (a)
       This
      Warrant and the Shares issuable upon exercise thereof are being acquired for
      its
      own account, for investment and not with a view to, or for resale in connection
      with, any distribution or public offering thereof within the meaning of the
      Securities Act of 1933, as amended (the "Act"). Upon exercise of this Warrant,
      the Holder shall, if so requested by the Company, confirm in writing, in a
      form
      satisfactory to the Company, that the securities issuable upon exercise of
      this
      Warrant are being acquired for investment and not with a view toward
      distribution or resale.

    

    (b)
       The
      Holder understands that the Warrant and the Shares have not been registered
      under the Act by reason of their issuance in a transaction exempt from the
      registration and prospectus delivery requirements of the Act pursuant to Section
      4(2) thereof, and that they must be held by the Holder indefinitely, and that
      the Holder must therefore bear the economic risk of such investment
      indefinitely, unless a subsequent disposition thereof is registered under the
      Act or is exempted from such registration. The Holder further understands that
      the Shares have not been qualified under the California Securities Law of 1968
      (the "California Law") by reason of their issuance in a transaction exempt
      from
      the qualification requirements of the California Law pursuant to Section
      25102(f) thereof, which exemption depends upon, among other things, the bona
      fide nature of the Holder's investment intent expressed above.

    

    (c)
       The
      Holder has such knowledge and experience in financial and business matters
      that
      it is capable of evaluating the merits and risks of the purchase of this Warrant
      and the Shares purchasable pursuant to the terms of this Warrant and of
      protecting its interests in connection therewith.

    

    (d)
       The
      Holder is able to bear the economic risk of the purchase of the Shares pursuant
      to the terms of this Warrant.

    
       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      8.
         Restrictive
        Legend.

    

     

    The
      Shares (unless registered under the Act) shall be stamped or imprinted with
      a
      legend in substantially the following form:

    

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND
      NOT
      WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF, AND
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH
      SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR
      UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO
      IT
      STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND
      PROSPECTUS DELIVERY REQUIREMENTS OF THE ACT.

    

    9.
       Restrictions
      Upon Transfer and Removal of Legend.

    

    (a)
       The
      Company need not register a transfer of this Warrant or Shares bearing the
      restrictive legend set forth in Section 8 hereof, unless the conditions
      specified in such legend are satisfied. The Company may also instruct its
      transfer agent not to register the transfer of the Shares, unless one of the
      conditions specified in the legend referred to in Section 8 hereof is
      satisfied.

    

    (b)
       Notwithstanding
      the provisions of paragraph (a) above, no opinion of counsel shall be necessary
      for a transfer without consideration by any holder (i) if such holder is a
      partnership, to a partner or retired partner of such partnership who retires
      after the date hereof or to the estate of any such partner or retired partner,
      or (ii) if such holder is a corporation, to a shareholder of such corporation,
      or to any other corporation under common control, direct or indirect, with
      such
      holder.

    

    10.
       Rights
      of
      Shareholders. No holder of this Warrant shall be entitled, as a Warrant holder,
      to vote or receive dividends or be deemed the holder of any Shares or any other
      securities of the Company which may at any time be issuable on the exercise
      hereof for any purpose, nor shall anything contained herein be construed to
      confer upon the holder of this Warrant, as such, any of the rights of a
      stockholder of the Company or any right to vote for the election of directors
      or
      upon any matter submitted to shareholders at any meeting thereof, or to give
      or
      withhold consent to any corporate action (whether upon any recapitalization,
      issuance of stock, reclassification of stock, change of par value,
      consolidation, merger, conveyance, or otherwise) or to receive notice of
      meetings, or to receive dividends or subscription rights or otherwise until
      the
      Warrant shall have been exercised and the Shares purchasable upon the exercise
      hereof shall have become deliverable, as provided herein. The holder of this
      Warrant will not be entitled to share in the assets of the Company in the event
      of a liquidation, dissolution or the winding up of the Company.

    

    11.
       Notices.
      All notices and other communications required or permitted hereunder shall
      be in
      writing, shall be effective when given, and shall in any event be deemed to
      be
      given upon receipt or, if earlier, (a) five (5) days after deposit with the
      U.S.
      Postal Service or other applicable postal service, if delivered by first class
      mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one business
      day after the business day of deposit with Federal Express or similar overnight
      courier, freight prepaid or (d) one business day after the business day of
      facsimile transmission, if delivered by facsimile transmission with copy by
      first class mail, postage prepaid, and shall be addressed (i) if to the Holder,
      at the Holder's address as set forth on the books of the Company, and (ii)
      if to
      the Company, at the address of its principal corporate offices (attention:
      Gary
      De Laurentiis, President and CEO), with a copy to David M. Otto, The Otto Law
      Group, PLLC, 900 Fourth Avenue, Suite 3140, Seattle, WA 98164 or at such other
      address as a party may designate by ten (10) days advance written notice to
      the
      other party pursuant to the provisions above.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    12.
       Independent
      Legal Advice. Each of the parties
      hereto represents and warrants (a) that it, she or he
      has read
      and understands each of the provisions set forth herein, that he, she or it
      has
      had the opportunity to consult with counsel of his, her or its own choice in
      connection with this Agreement and to have each of the provisions set forth
      herein fully explained by such counsel, and that this Agreement is entered
      into
      freely, voluntarily, and without any duress or undue influence of any nature
      by,
      or on behalf of, any person or entity and (b) that each of the Parties, together
      with its, his or her attorneys, has made such investigation of the facts
      pertaining to this settlement and this release, and of all the matters
      pertaining thereto, as it, she or he deems necessary.

    

    13. Piggy
      Back Registration of the Shares. If the Company proposes to register any of
      its
      securities under the Securities Act (other than pursuant to a Form S-4, Form
      S-8
      or any other successor form of limited purpose), it will give written notice
      by
      registered mail at least thirty (30) business days prior to the filing of each
      such registration statement to the Holder of its intention to do so. If the
      Holder notifies the Company within twenty (20) business days after receipt
      of
      any such notice of its desire to include any of the Shares in such proposed
      registration statement, the Company shall afford the Holder the opportunity
      to
      have any such amount of the Shares registered under such registration
      statement.

    

    14. Governing
      Law. This Warrant and all actions arising out of or in connection with this
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California, without regard to the conflicts of law provisions of the
      State of California or of any other state.

    
      	 	 	 
	 	
              ITEC
                ENVIRONMENTAL GROUP, INC.

            
	 
 	 
 	 
 
	 	
              

              Name:
                Gary De Laurentiis

            
	 	
              Title:
                Chief Executive Officer

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    NOTICE
      OF EXERCISE

    

      
        	
                TO:
                  

              	
                Itec
                  Environmental Group, Inc.

              
	 	
                P.O.
                  Box 760

              
	 	
                Riverbank,
                  Ca. 95367

              
	 	
                Attention:
                  President

              

      

    

     

    1.
      The
      undersigned hereby elects to purchase __________ Shares of Itec Environmental
      Group, Inc. pursuant to the terms of the attached Warrant.

    

    2.
      Method
      of Exercise (Please initial the applicable blank):

    

    
      	 	
              ___

            	
              The
                undersigned elects to exercise the attached Warrant by means of a
                cash
                payment, and tenders herewith or by concurrent wire transfer payment
                in
                full for the purchase price of the shares being purchased, together
                with
                all applicable transfer taxes, if
                any.

            

    

    

    
      	 	
              ___

            	
              The
                undersigned elects to exercise the attached Warrant by means of the
                net
                exercise provisions of Section 1(b) of the
                Warrant.

            

    

    

    
      	 	
              3.
                

            	
              Please
                issue a certificate or certificates representing said Shares in the
                name
                of the undersigned or in such other name as is specified
                below:

            

    

    

    _________________________________

    (Name)

    _________________________________

    

    _________________________________

    (Address)

    

    4.
       The
      undersigned hereby represents and warrants that the aforesaid Shares are being
      acquired for the account of the undersigned for investment and not with a view
      to, or for resale, in connection with the distribution thereof, and that the
      undersigned has no present intention of distributing or reselling such shares
      and all representations and warranties of the undersigned set forth in Section
      7
      of the attached Warrant are true and correct as of the date hereof.

     

    _________________________________

    (Signature)

    

    Title:
      _____________________________

    

    _________________________________

    (Date)

     

    
      
        
        

      

      
        7Exhibit
      4.5

     

    Common
      Stock Warrant and Convertible Debenture issued to Roaring Fork Capital SBIC
      L.P.

    

    THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      U.S.
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER APPLICABLE SECURITIES LAWS
      AND
      HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
      SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
      MAY BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED
      OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, OR A VALID EXEMPTION THEREFROM.

     

    ITEC
      ENVIRONMENTAL GROUP, INC.

    

    Warrant
      To Purchase Common Stock

    

    Warrant
      No.:    

    Number
      of
      Shares of Common Stock: 6,000,000

    Date
      of
      Issuance: December [__], 2006 ("Issuance
      Date")

    

    Itec
      Environmental Group, Inc., a Delaware corporation (the "Company"),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Roaring Fork Capital SBIC, L.P.,
      the registered holder hereof or its permitted assigns (the "Holder"),
      is
      entitled, subject to the terms set forth below, to purchase from the Company,
      at
      the Exercise Price (as defined below) then in effect, upon surrender of this
      Warrant to Purchase Common Stock (including any Warrants to Purchase Common
      Stock issued in exchange, transfer or replacement hereof, the "Warrant"),
      at
      any time or times on or after the date hereof, but not after 5:00 p.m.,
      Riverbank, California time, on April 15, 2015 (the “Expiration Date”), Six
      Million (6,000,000) fully paid nonassessable shares of Common Stock (as defined
      below) (the
      "Warrant
      Shares").
      Except as otherwise defined herein, capitalized terms in this Warrant shall
      have
      the meanings set forth in Section 15. This Warrant is one of the Warrants to
      purchase Common Stock (the "SPA
      Warrants")
      issued
      pursuant to Article II of that certain Convertible Note and Warrant Purchase
      Agreement, dated as of December __, 2006 (the "Subscription
      Date"),
      by
      and between the Company and Roaring Fork Capital SBIC, L.P. (the "Purchaser")
      referred to therein (the "Securities
      Purchase Agreement").

     

    (1) EXERCISE
      OF WARRANT.

     

    (i) Mechanics
      of Exercise.
      Subject
      to the terms and conditions hereof (including, without limitation, the
      limitations set forth in Section 1(f)), this Warrant may be exercised by the
      Holder on any day on or after the date hereof, in whole or in part, by
      (i) delivery of a written notice, in the form attached hereto as
Exhibit
      A
      (the
      "Exercise
      Notice"),
      of
      the Holder's election to exercise this Warrant and (ii) (A) payment to the
      Company of an amount equal to the applicable Exercise Price multiplied by the
      number of Warrant Shares as to which this Warrant is being exercised (the
      "Aggregate
      Exercise Price")
      in
      cash or by wire transfer of immediately available funds or (B) by notifying
      the
      Company that this Warrant is being exercised pursuant to a Cashless Exercise
      (as
      defined in Section 1(d)). The Holder shall not be required to deliver the
      original Warrant in order to effect an exercise hereunder. Execution and
      delivery of the Exercise Notice with respect to less than all of the Warrant
      Shares shall have the same effect as cancellation of the original Warrant and
      issuance of a new Warrant evidencing the right to purchase the remaining number
      of Warrant Shares. On or before the first (1st)
      Business Day following the date on which the Company has received each of the
      Exercise Notice and the Aggregate Exercise Price (or notice of a Cashless
      Exercise) (the "Exercise
      Delivery Documents"),
      the
      Company shall transmit by facsimile an acknowledgment of confirmation of receipt
      of the Exercise Delivery Documents to the Holder and the Company's transfer
      agent (the "Transfer
      Agent").
      On or
      before the third (3rd)
      Business Day following the date on which the Company has received all of the
      Exercise Delivery Documents (the "Share
      Delivery Date"),
      the
      Company shall (X) provided that the Transfer Agent is participating in The
      Depository Trust Company ("DTC")
      Fast
      Automated Securities Transfer Program, upon the request of the Holder, credit
      such aggregate number of shares of Common Stock to which the Holder is entitled
      pursuant to such exercise to the Holder's or its designee's balance account
      with
      DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the
      Transfer Agent is not participating in the DTC Fast Automated Securities
      Transfer Program, issue and dispatch by overnight courier to the address as
      specified in the Exercise Notice, a certificate, registered in the Company's
      share register in the name of the Holder or its designee, for the number of
      shares of Common Stock to which the Holder is entitled pursuant to such
      exercise. Upon delivery of the Exercise Notice and Aggregate Exercise Price
      referred to in clause (ii)(A) above or notification to the Company of a Cashless
      Exercise referred to in Section 1(d), the Holder shall be deemed for all
      corporate purposes to have become the holder of record of the Warrant Shares
      with respect to which this Warrant has been exercised, irrespective of the
      date
      of delivery of the certificates evidencing such Warrant Shares. If this Warrant
      is submitted in connection with any exercise pursuant to this Section 1(a)
      and
      the number of Warrant Shares represented by this Warrant submitted for exercise
      is greater than the number of Warrant Shares being acquired upon an exercise,
      then the Company shall as soon as practicable and in no event later than three
      Business Days after any exercise and at its own expense, issue a new Warrant
      (in
      accordance with Section 7(d)) representing the right to purchase the number
      of
      Warrant Shares purchasable immediately prior to such exercise under this
      Warrant, less the number of Warrant Shares with respect to which this Warrant
      is
      exercised. No fractional shares of Common Stock are to be issued upon the
      exercise of this Warrant, but rather the number of shares of Common Stock to
      be
      issued shall be rounded up to the nearest whole number. The Company shall pay
      any and all taxes which may be payable with respect to the issuance and delivery
      of Warrant Shares upon exercise of this Warrant. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (ii) Exercise
      Price.
      For
      purposes of this Warrant, "Exercise
      Price"
      means
      $0.06, subject to adjustment as provided herein.

     

    (iii) Company's
      Failure to Timely Deliver Securities.
      If
      within five (5) Trading Days after the Company's receipt of the facsimile copy
      of a Exercise Notice the Company shall fail to issue and deliver a certificate
      to the Holder and register such shares of Common Stock on the Company's share
      register 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
      exercise hereunder, and if on or after such Trading Day the Holder purchases
      (in
      an open market transaction or otherwise) shares of Common Stock to deliver
      in
      satisfaction of a sale by the Holder of shares of Common Stock issuable upon
      such exercise that the Holder anticipated receiving from the Company (a
      "Buy-In"),
      then
      the Company shall, within three (3) Business Days after the Holder's request
      and
      in the Holder's discretion, either (i) pay cash to the Holder in an amount
      equal
      to the Holder's total purchase price (including brokerage commissions, 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 shares of Common Stock) shall terminate, or (ii) promptly honor its
      obligation to deliver to the Holder a certificate or certificates representing
      such shares of 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 Weighted Average Price on the date of
      exercise.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (iv) Cashless
      Exercise.
       Notwithstanding
      anything contained herein to the contrary, if a registration statement covering
      the Warrant Shares that are the subject of an Exercise Notice (the "Unavailable
      Warrant Shares")
      is not
      available for the resale of such Unavailable Warrant Shares, the Holder may,
      in
      its sole discretion, exercise this Warrant in whole or in part and, in lieu
      of
      making the cash payment otherwise contemplated to be made to the Company upon
      such exercise in payment of the Aggregate Exercise Price, elect instead to
      receive upon such exercise the "Net Number" of shares of Common Stock determined
      according to the following formula (a "Cashless
      Exercise"):

     

    Net
      Number = (A
      x
      B) - (A x C)

    B

     

    For
      purposes of the foregoing formula:

     

    
      	
            	A=	
              the
                total number of shares with respect to which this Warrant is then
                being
                exercised.

            

    

     

    
      	
            	B=	
              the
                arithmetic average of the Weighted Average Prices of the shares of
                Common
                Stock (as reported by Bloomberg) for the five (5) consecutive Trading
                Days
                ending on the date immediately preceding the date of the Exercise
                Notice.

            

    

     

    
      	
            	C=	
              the
                Exercise Price then in effect for the applicable Warrant Shares at
                the
                time of such exercise.

            

    

    

    (v) Disputes.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall promptly issue
      to the Holder the number of Warrant Shares that are not disputed and resolve
      such dispute in accordance with Section 12.

     

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

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (2) ADJUSTMENT
      OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES.
      The
      Exercise Price and the number of Warrant Shares shall be adjusted from time
      to
      time as follows:

     

    (i) Adjustment
      upon Issuance of shares of Common Stock.
      If and
      whenever on or after the Subscription Date and through the Expiration Date
      (the
      "Full
      Rachet Period"),
      the
      Company issues or sells, or in accordance with this Section 2 is deemed to
      have
      issued or sold, any shares of Common Stock (including the issuance or sale
      of
      shares of Common Stock owned or held by or for the account of the Company for
      a
      consideration per share (the "New
      Issuance Price")
      less
      than a price (the "Applicable
      Price")
      equal
      to the Exercise Price in effect immediately prior to such issue or sale or
      deemed issuance or sale (the foregoing a "Dilutive
      Issuance"),
      then
      immediately after such Dilutive Issuance, the Exercise Price then in effect
      shall be reduced to an amount equal to the New Issuance Price. Upon each such
      adjustment of the Exercise Price hereunder, the number of Warrant Shares shall
      be adjusted to the number of shares of Common Stock determined by multiplying
      the Exercise Price in effect immediately prior to such adjustment by the number
      of Warrant Shares acquirable upon exercise of this Warrant immediately prior
      to
      such adjustment and dividing the product thereof by the Exercise Price resulting
      from such adjustment. For purposes of determining the adjusted Exercise Price
      under this Section 2(a), the following shall be applicable:

     

    (i) Issuance
      of Options.
      If the
      Company in any manner grants any Options and the lowest price per share for
      which one share of Common Stock is issuable upon the exercise of any such Option
      or upon conversion, exercise or exchange of any Convertible Securities issuable
      upon exercise of any such Option is less than the Applicable Price, then such
      share of Common Stock shall be deemed to be outstanding and to have been issued
      and sold by the Company at the time of the granting or sale of such Option
      for
      such price per share. For purposes of this Section 2(a)(i), the "lowest price
      per share for which one share of Common Stock is issuable upon exercise of
      such
      Options or upon conversion, exercise or exchange of such Convertible Securities"
      shall be equal to the sum of the lowest amounts of consideration (if any)
      received or receivable by the Company with respect to any one share of Common
      Stock upon the granting or sale of the Option, upon exercise of the Option
      and
      upon conversion, exercise or exchange of any Convertible Security issuable
      upon
      exercise of such Option. No further adjustment of the Exercise Price or number
      of Warrant Shares shall be made upon the actual issuance of such shares of
      Common Stock or of such Convertible Securities upon the exercise of such Options
      or upon the actual issuance of such shares of Common Stock upon conversion,
      exercise or exchange of such Convertible Securities. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (ii) Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any Convertible Securities and the lowest
      price per share for which one share of Common Stock is issuable upon the
      conversion, exercise or exchange thereof is less than the Applicable Price,
      then
      such share of Common Stock shall be deemed to be outstanding and to have been
      issued and sold by the Company at the time of the issuance or sale of such
      Convertible Securities for such price per share. For the purposes of this
      Section 2(a)(ii), the "lowest price per share for which one share of Common
      Stock is issuable upon the conversion, exercise or exchange" shall be equal
      to
      the sum of the lowest amounts of consideration (if any) received or receivable
      by the Company with respect to one share of Common Stock upon the issuance
      or
      sale of the Convertible Security and upon conversion, exercise or exchange
      of
      such Convertible Security. No further adjustment of the Exercise Price or number
      of Warrant Shares shall be made upon the actual issuance of such shares of
      Common Stock upon conversion, exercise or exchange of such Convertible
      Securities, and if any such issue or sale of such Convertible Securities is
      made
      upon exercise of any Options for which adjustment of this Warrant has been
      or is
      to be made pursuant to other provisions of this Section 2(a), no further
      adjustment of the Exercise Price or number of Warrant Shares shall be made
      by
      reason of such issue or sale. 

     

    (iii) Change
      in Option Price or Rate of Conversion.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the issue, conversion, exercise or exchange of any Convertible
      Securities, or the rate at which any Convertible Securities are convertible
      into
      or exercisable or exchangeable for shares of Common Stock increases or decreases
      at any time, the Exercise Price and the number of Warrant Shares in effect
      at
      the time of such increase or decrease shall be adjusted to the Exercise Price
      and the number of Warrant Shares which would have been in effect at such time
      had such Options or Convertible Securities provided for such increased or
      decreased purchase price, additional consideration or increased or decreased
      conversion rate, as the case may be, at the time initially granted, issued
      or
      sold. For purposes of this Section 2(a)(iii), if the terms of any Option or
      Convertible Security that was outstanding as of the date of issuance of this
      Warrant are increased or decreased in the manner described in the immediately
      preceding sentence, then such Option or Convertible Security and the shares
      of
      Common Stock deemed issuable upon exercise, conversion or exchange thereof
      shall
      be deemed to have been issued as of the date of such increase or decrease.
      No
      adjustment pursuant to this Section 2(a) shall be made if such adjustment would
      result in an increase of the Exercise Price then in effect or a decrease in
      the
      number of Warrant Shares.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (iv) Calculation
      of Consideration Received.
      In case
      any Option is issued in connection with the issue or sale of other securities
      of
      the Company, together comprising one integrated transaction, the Options will
      be
      deemed to have been issued for the difference of (x) the aggregate fair market
      value of such Options and other securities issued or sold in such integrated
      transaction, less (y) the fair market value of the securities other than such
      Option, issued or sold in such transaction and the other securities issued
      or
      sold in such integrated transaction will be deemed to have been issued or sold
      for the balance of the consideration received by the Company. If any shares
      of
      Common Stock, Options or Convertible Securities are issued or sold or deemed
      to
      have been issued or sold for cash, the consideration received therefor will
      be
      deemed to be the net amount received by the Company therefor. If any shares
      of
      Common Stock, Options or Convertible Securities are issued or sold for a
      consideration other than cash, the amount of such consideration received by
      the
      Company will be the fair value of such consideration, except where such
      consideration consists of securities, in which case the amount of consideration
      received by the Company will be the Weighted Average Price of such security
      on
      the date of receipt. If any shares of Common Stock, Options or Convertible
      Securities are issued to the owners of the non-surviving entity in connection
      with any merger in which the Company is the surviving entity, the amount of
      consideration therefor will be deemed to be the fair value of such portion
      of
      the net assets and business of the non-surviving entity as is attributable
      to
      such shares of Common Stock, Options or Convertible Securities, as the case
      may
      be. The fair value of any consideration other than cash or securities will
      be
      determined jointly by the Company and Roaring Fork Capital SBIC, L.P. If such
      parties are unable to reach agreement within ten (10) days after the occurrence
      of an event requiring valuation (the "Valuation
      Event"),
      the
      fair value of such consideration will be determined within five (5) Business
      Days after the tenth day following the Valuation Event by an independent,
      reputable appraiser jointly selected by the Company and Roaring Fork Capital
      SBIC, L.P. The determination of such appraiser shall be final and binding upon
      all parties absent manifest error and the fees and expenses of such appraiser
      shall be borne by the Company.

     

    (v) Record
      Date.
      If the
      Company takes a record of the holders of shares of Common Stock for the purpose
      of entitling them (A) to receive a dividend or other distribution payable
      in shares of Common Stock, Options or in Convertible Securities or (B) to
      subscribe for or purchase shares of Common Stock, Options or Convertible
      Securities, then such record date will 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.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (ii) Adjustment
      upon Subdivision or Combination of Common Stock.
      If the
      Company at any time on or after the Subscription Date subdivides (by any stock
      split, stock dividend, recapitalization or otherwise) one or more classes of
      its
      outstanding shares of Common Stock into a greater number of shares, the Exercise
      Price in effect immediately prior to such subdivision will be proportionately
      reduced and the number of Warrant Shares will be proportionately increased.
      If
      the Company at any time on or after the Subscription Date combines (by
      combination, reverse stock split or otherwise) one or more classes of its
      outstanding shares of Common Stock into a smaller number of shares, the Exercise
      Price in effect immediately prior to such combination will be proportionately
      increased and the number of Warrant Shares will be proportionately decreased.
      Any adjustment under this Section 2(b) shall become effective at the close
      of
      business on the date the subdivision or combination becomes
      effective.

     

    (iii) Other
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 2 but
      not expressly provided for by such provisions (including, without limitation,
      the granting of stock appreciation rights, phantom stock rights or other rights
      with equity features), then the Company's Board of Directors will make an
      appropriate adjustment in the Exercise Price and the number of Warrant Shares
      so
      as to protect the rights of the Holder; provided that no such adjustment
      pursuant to this Section 2(c) will increase the Exercise Price or decrease
      the
      number of Warrant Shares as otherwise determined pursuant to this Section
      2.

     

    (3) RIGHTS
      UPON DISTRIBUTION OF ASSETS.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of shares of Common Stock, by
      way
      of return of capital or otherwise (including, without limitation, any
      distribution of cash, stock or other securities, property or options by way
      of a
      dividend, spin off, reclassification, corporate rearrangement, scheme of
      arrangement or other similar transaction) (a "Distribution"),
      at
      any time after the issuance of this Warrant, then, in each such
      case:

     

    (i) any
      Exercise Price in effect immediately prior to the close of business on the
      record date fixed for the determination of holders of shares of Common Stock
      entitled to receive the Distribution shall be reduced, effective as of the
      close
      of business on such record date, to a price determined by multiplying such
      Exercise Price by a fraction of which (i) the numerator shall be the Weighted
      Average Price of the shares of Common Stock on the Trading Day immediately
      preceding such record date minus the value of the Distribution (as determined
      in
      good faith by the Company's Board of Directors) applicable to one share of
      shares of Common Stock, and (ii) the denominator shall be the Weighted Average
      Price of the shares of Common Stock on the Trading Day immediately preceding
      such record date; and

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (ii) the
      number of Warrant Shares shall be increased to a number of shares equal to
      the
      number of shares of Common Stock obtainable immediately prior to the close
      of
      business on the record date fixed for the determination of holders of shares
      of
      Common Stock entitled to receive the Distribution multiplied by the reciprocal
      of the fraction set forth in the immediately preceding paragraph (a); provided
      that in the event that the Distribution is of shares of Common Stock (or common
      stock) ("Other
      Shares of Common Stock")
      of a
      company whose common shares are traded on a national securities exchange or
      a
      national automated quotation system, then the Holder may elect to receive a
      warrant to purchase Other Shares of Common Stock in lieu of an increase in
      the
      number of Warrant Shares, the terms of which shall be identical to those of
      this
      Warrant, except that such warrant shall be exercisable into the number of shares
      of Other Shares of Common Stock that would have been payable to the Holder
      pursuant to the Distribution had the Holder exercised this Warrant immediately
      prior to such record date and with an aggregate exercise price equal to the
      product of the amount by which the exercise price of this Warrant was decreased
      with respect to the Distribution pursuant to the terms of the immediately
      preceding paragraph (a) and the number of Warrant Shares calculated in
      accordance with the first part of this paragraph (b).

     

    (4) PURCHASE
      RIGHTS; FUNDAMENTAL TRANSACTIONS.

     

    (i) Purchase
      Rights.
      In
      addition to any adjustments pursuant to Section 2 above, if at any time the
      Company grants, issues or sells any Options, Convertible Securities or rights
      to
      purchase stock, warrants, securities or other property pro rata to the record
      holders of any class of shares of Common Stock (the "Purchase
      Rights"),
      then
      the Holder will be entitled to acquire, upon the terms applicable to such
      Purchase Rights, the aggregate Purchase Rights which the Holder could have
      acquired if the Holder had held the number of shares of Common Stock acquirable
      upon complete exercise of this Warrant (without regard to any limitations on
      the
      exercise of this Warrant) immediately before the date on which a record is
      taken
      for the grant, issuance or sale of such Purchase Rights, or, if no such record
      is taken, the date as of which the record holders of shares of Common Stock
      are
      to be determined for the grant, issue or sale of such Purchase
      Rights.

     

    (ii) Fundamental
      Transactions.
      Upon
      the occurrence of any Fundamental Transaction, the Successor Entity shall
      succeed to, and be substituted for (so that from and after the date of such
      Fundamental Transaction, the provisions of this Warrant referring to the
      "Company" shall refer instead to the Successor Entity), and may exercise every
      right and power of the Company and shall assume all of the obligations of the
      Company under this Warrant with the same effect as if such Successor Entity
      had
      been named as the Company herein. Upon consummation of the Fundamental
      Transaction, the Successor Entity shall deliver to the Holder confirmation
      that
      there shall be issued upon exercise of this Warrant at
      any
      time after the consummation of the Fundamental Transaction, in lieu of the
      shares of the Common Stock (or
      other
      securities, cash, assets or other property) purchasable
      upon the exercise of the Warrant prior to such Fundamental Transaction, such
      shares of stock, securities, cash, assets or any other property whatsoever
      (including warrants or other purchase or subscription rights) which the Holder
      would have been entitled to receive upon the happening of such Fundamental
      Transaction had this Warrant been converted immediately prior to such
      Fundamental Transaction, as adjusted in accordance with the provisions of this
      Warrant.
      In
      addition to and not in substitution for any other rights hereunder, prior to
      the
      consummation of any Fundamental Transaction pursuant to which holders of shares
      of Common Stock are entitled to receive securities or other assets with respect
      to or in exchange for shares of Common Stock (a "Corporate
      Event"),
      the
      Company shall make appropriate provision to insure that the Holder will
      thereafter have the right to receive upon an exercise of this Warrant
at
      any
      time after the consummation of the Fundamental Transaction but
      prior
      to the Expiration Date,
      in lieu
      of the shares of the Common Stock (or
      other
      securities, cash, assets or other property) purchasable
      upon the exercise of the Warrant prior to such Fundamental
      Transaction,
      such
      shares of stock, securities, cash, assets or any other property whatsoever
      (including warrants or other purchase or subscription rights) which the Holder
      would have been entitled to receive upon the happening of such Fundamental
      Transaction had the Warrant been exercised immediately prior to such Fundamental
      Transaction. Provision
      made pursuant to the preceding sentence shall be in a form and substance
      reasonably satisfactory to Roaring Fork Capital SBIC, L.P. The provisions of
      this Section shall apply similarly and equally to successive Fundamental
      Transactions and Corporate Events and shall be applied without regard to any
      limitations on the exercise of this Warrant. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (5) NONCIRCUMVENTION.
      The
      Company hereby covenants and agrees that the Company will not, by amendment
      of
      its Certificate of Incorporation, Bylaws or through any reorganization, transfer
      of assets, consolidation, merger, scheme of arrangement, dissolution, issue
      or
      sale of securities, or any other voluntary action, avoid or seek to avoid the
      observance or performance of any of the terms of this Warrant, and will at
      all
      times in good faith carry out all the provisions of this Warrant and take all
      action as may be required to protect the rights of the Holder. Without limiting
      the generality of the foregoing, the Company (i) shall not increase the par
      value of any shares of Common Stock receivable upon the exercise of this Warrant
      above the Exercise Price then in effect, (ii) shall take all such actions
      as may be necessary or appropriate in order that the Company may validly and
      legally issue fully paid and nonassessable shares of Common Stock upon the
      exercise of this Warrant, and (iii) shall, so long as any of the SPA Warrants
      are outstanding, take all action necessary to reserve and keep available out
      of
      its authorized and unissued shares of Common Stock, solely for the purpose
      of
      effecting the exercise of the SPA Warrants, the number of shares of Common
      Stock
      as shall from time to time be necessary to effect the exercise of the SPA
      Warrants then outstanding (without regard to any limitations on
      exercise).

     

    (6) WARRANT
      HOLDER NOT DEEMED A STOCKHOLDER.
      Except
      as otherwise specifically provided herein, the Holder, solely in such Person's
      capacity as a holder of this Warrant, shall not be entitled to vote or receive
      dividends or be deemed the holder of share capital of the Company for any
      purpose, nor shall anything contained in this Warrant be construed to confer
      upon the Holder, solely in such Person's capacity as the Holder of this Warrant,
      any of the rights of a stockholder of the Company or any right to vote, give
      or
      withhold consent to any corporate action (whether any reorganization, issue
      of
      stock, reclassification of stock, consolidation, merger, conveyance or
      otherwise), receive notice of meetings, receive dividends or subscription
      rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
      which such Person is then entitled to receive upon the due exercise of this
      Warrant. In addition, nothing contained in this Warrant shall be construed
      as
      imposing any liabilities on the Holder to purchase any securities (upon exercise
      of this Warrant or otherwise) or as a stockholder of the Company, whether such
      liabilities are asserted by the Company or by creditors of the Company.
      Notwithstanding this Section 6, the Company shall provide the Holder with copies
      of the same notices and other information given to the stockholders of the
      Company generally, contemporaneously with the giving thereof to the
      stockholders.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (7) REISSUANCE
      OF WARRANTS.

     

    (i) Lost,
      Stolen or Mutilated Warrant.
      Upon
      receipt by the Company of evidence reasonably satisfactory to the Company of
      the
      loss, theft, destruction or mutilation of this Warrant, and, in the case of
      loss, theft or destruction, of any indemnification undertaking by the Holder
      to
      the Company in customary form and, in the case of mutilation, upon surrender
      and
      cancellation of this Warrant, the Company shall execute and deliver to the
      Holder a new Warrant (in accordance with Section 7(d)) representing the right
      to
      purchase the Warrant Shares then underlying this Warrant.

     

    (ii) Exchangeable
      for Multiple Warrants.
      This
      Warrant is exchangeable, upon the surrender hereof by the Holder at the
      principal office of the Company, for a new Warrant or Warrants (in accordance
      with Section 7(c)) representing in the aggregate the right to purchase the
      number of Warrant Shares then underlying this Warrant, and each such new Warrant
      will represent the right to purchase such portion of such Warrant Shares as
      is
      designated by the Holder at the time of such surrender; provided, however,
      that
      no Warrants for fractional shares of Common Stock shall be given.

     

    (iii) Issuance
      of New Warrants.
      Whenever the Company is required to issue a new Warrant pursuant to the terms
      of
      this Warrant, such new Warrant (i) shall be of like tenor with this Warrant,
      (ii) shall represent, as indicated on the face of such new Warrant, the right
      to
      purchase the Warrant Shares then underlying this Warrant (or in the case of
      a
      new Warrant being issued pursuant to Section 7(a) or Section 7(b), the Warrant
      Shares designated by the Holder which, when added to the number of shares of
      Common Stock underlying the other new Warrants issued in connection with such
      issuance, does not exceed the number of Warrant Shares then underlying this
      Warrant), (iii) shall have an issuance date, as indicated on the face of such
      new Warrant which is the same as the Issuance Date, and (iv) shall have the
      same
      rights and conditions as this Warrant.

     

    (8) NOTICES.
      Whenever notice is required to be given under this Warrant, unless otherwise
      provided herein, such notice shall be given in accordance with Section 8.6
      of
      the Securities Purchase Agreement. The Company shall provide the Holder with
      prompt written notice of all actions taken pursuant to this Warrant, including
      in reasonable detail a description of such action and the reason therefore.
      Without limiting the generality of the foregoing, the Company will give written
      notice to the Holder (i) immediately upon any adjustment of the Exercise Price,
      setting forth in reasonable detail, and certifying, the calculation of such
      adjustment and (ii) at least fifteen days prior to the date on which the Company
      closes its books or takes a record (A) with respect to any dividend or
      distribution upon the shares of Common Stock, (B) with respect to any grants,
      issuances or sales of any Options, Convertible Securities or rights to purchase
      stock, warrants, securities or other property to holders of shares of Common
      Stock or (C) for determining rights to vote with respect to any Fundamental
      Transaction, dissolution or liquidation, provided in each case that such
      information shall be made known to the public prior to or in conjunction with
      such notice being provided to the Holder.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (9) AMENDMENT.
      This
      Warrant may be modified or amended or the provisions hereof waived only with
      the
      written consent of the Company and the Holder. 

     

    (10) GOVERNING
      LAW.
      This
      Warrant shall be governed by and construed and enforced in accordance with,
      and
      all questions concerning the construction, validity, interpretation and
      performance of this Warrant shall be governed by, the internal laws of the
      State
      of California, without giving effect to any choice of law or conflict of law
      provision or rule (whether of the State of California or any other
      jurisdictions) that would cause the application of the laws of any jurisdictions
      other than the State of California.

     

    (11) CONSTRUCTION;
      HEADINGS.
      This
      Warrant shall be deemed to be jointly drafted by the Company and Roaring Fork
      Capital SBIC, L.P. and shall not be construed against any person as the drafter
      hereof. The headings of this Warrant are for convenience of reference and shall
      not form part of, or affect the interpretation of, this Warrant.

     

    (12) DISPUTE
      RESOLUTION.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall submit the
      disputed determinations or arithmetic calculations via facsimile within seven
      Business Days of receipt of the Exercise Notice giving rise to such dispute,
      as
      the case may be, to the Holder. If the Holder and the Company are unable to
      agree upon such determination or calculation of the Exercise Price or the
      Warrant Shares within seven Business Days of such disputed determination or
      arithmetic calculation being submitted to the Holder, then the Company shall,
      within seven Business Days submit via facsimile (a) the disputed determination
      of the Exercise Price to an independent, reputable investment bank selected
      by
      the Company and approved by the Holder or (b) the disputed arithmetic
      calculation of the Warrant Shares to the Company's independent, outside
      accountant. The Company shall cause at its expense the investment bank or the
      accountant, as the case may be, to perform the determinations or calculations
      and notify the Company and the Holder of the results no later than ten Business
      Days from the time it receives the disputed determinations or calculations.
      Such
      investment bank's or accountant's determination or calculation, as the case
      may
      be, shall be binding upon all parties absent demonstrable error.

     

    (13) REMEDIES,
      OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.
      The
      remedies provided in this Warrant shall be cumulative and in addition to all
      other remedies available under this Warrant and the other Transaction Documents,
      at law or in equity (including a decree of specific performance and/or other
      injunctive relief), and nothing herein shall limit the right of the Holder
      right
      to pursue actual damages for any failure by the Company to comply with the
      terms
      of this Warrant. The Company acknowledges that a breach by it of its obligations
      hereunder will cause irreparable harm to the Holder and that the remedy at
      law
      for any such breach may be inadequate. The Company therefore agrees that, in
      the
      event of any such breach or threatened breach, the holder of this Warrant shall
      be entitled, in addition to all other available remedies, to an injunction
      restraining any breach, without the necessity of showing economic loss and
      without any bond or other security being required.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (14) TRANSFER.
      This
      Warrant may be offered for sale, sold, transferred or assigned without the
      consent of the Company; provided, that, the Holder acknowledges that the Warrant
      Shares acquired upon exercise of this Warrant, if not registered, will have
      restrictions upon resale imposed by state and federal securities
      laws.

     

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

     

    (i) "Bloomberg"
      means
      Bloomberg Financial Markets.

     

    (ii) "Business
      Day"
      means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      Riverdale, California are authorized or required by law to remain
      closed.

     

    (iii) "Common
      Stock"
      means
      (i) the Company's shares of Common Stock, par value $0.001 per share, and
      (ii) any share capital into which such Common Stock shall have been changed
      or any share capital resulting from a reclassification of such Common
      Stock.

     

    (iv) "Common
      Stock Deemed Outstanding"
      means,
      at any given time, the number of shares of Common Stock actually outstanding
      at
      such time, plus the number of shares of Common Stock deemed to be outstanding
      pursuant to Sections 2(a)(i) and 2(a)(ii) hereof regardless of whether the
      Options or Convertible Securities are actually exercisable at such time, but
      excluding any shares of Common Stock owned or held by or for the account of
      the
      Company or issuable upon exercise of the SPA Warrants.

     

    (v) "Convertible
      Securities"
      means
      any stock or securities (other than Options) directly or indirectly convertible
      into or exercisable or exchangeable for shares of Common Stock.

     

    (vi) "Eligible
      Market"
      means
      the Principal Market, The New York Stock Exchange, Inc., the American Stock
      Exchange, The NASDAQ Global Market, The NASDAQ Global Select Market or The
      NASDAQ Capital Market.

     

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

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    (xi) "Principal
      Market"
      means
      the OTC Bulletin Board.

     

    (xii) "Successor
      Entity"
      means
      the Person formed by, resulting from or surviving any Fundamental Transaction
      or
      the Person with which such Fundamental Transaction shall have been entered
      into.

     

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

     

    (xiv) "Weighted
      Average Price"
      means,
      for any security as of any date, the dollar volume-weighted average price for
      such security on the Principal Market during the period beginning at 9:30:01
      a.m., New York City time, and ending at 4:00:00 p.m., New York City time, as
      reported by Bloomberg through its "Volume at Price" function or, if the
      foregoing does not apply, the dollar volume-weighted average price of such
      security in the over-the-counter market on the electronic bulletin board for
      such security during the period beginning at 9:30:01 a.m., New York City time,
      and ending at 4:00:00 p.m., New York City time, as reported by Bloomberg, or,
      if
      no dollar volume-weighted average price is reported for such security by
      Bloomberg for such hours, the average of the highest closing bid price and
      the
      lowest closing ask price of any of the market makers for such security as
      reported in the "pink sheets" by Pink Sheets LLC (formerly the National
      Quotation Bureau, Inc.). If the Weighted Average Price cannot be calculated
      for
      such security on such date on any of the foregoing bases, the Weighted Average
      Price of such security on such date shall be the fair market value as mutually
      determined by the Company and the Required Holders. If the Company and the
      Required Holders are unable to agree upon the fair market value of the such
      security, then such dispute shall be resolved pursuant to Section 12 with the
      term "Weighted Average Price" being substituted for the term "Exercise Price."
      All such determinations shall be appropriately adjusted for any share dividend,
      share split or other similar transaction during such period.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

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

    
      	 	 	 
	 	
              ITEC
                ENVIRONMENTAL GROUP, INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name: 

              
                Title: 

              

            

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    EXERCISE
      NOTICE

    TO
      BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

    WARRANT
      TO PURCHASE COMMON STOCK

    

    ITEC
      ENVIRONMENTAL GROUP, INC.

     

    The
      undersigned holder hereby exercises the right to purchase _________________
      of
      the shares of Common Stock ("Warrant
      Shares")
      of
      ITEC Environmental Group, Inc., a Delaware corporation (the "Company"),
      evidenced by the attached Warrant to Purchase Common Stock (the "Warrant").
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

    

    1.
      Form
      of Exercise Price. The Holder intends that payment of the Exercise Price shall
      be made as:

    

    ____________ a
      "Cash
      Exercise"
      with
      respect to _________________ Warrant Shares; and/or

    

    ____________ a
      "Cashless
      Exercise"
      with
      respect to _______________ Warrant Shares.

    

    2.
      Payment of Exercise Price. In the event that the holder has elected a Cash
      Exercise with respect to some or all of the Warrant Shares to be issued pursuant
      hereto, the holder shall pay the Aggregate Exercise Price in the sum of
      $___________________ to the Company in accordance with the terms of the
      Warrant.

    

    3.
      Delivery of Warrant Shares. The Company shall deliver to the holder __________
      Warrant Shares in accordance with the terms of the Warrant.

    

    Date:
      _______________ __, ______

    

    

    
      

    

    Name
      of
      Registered Holder

     

     

    By:

    
      
        

      

    Name:

    Title:

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    ACKNOWLEDGMENT

     

    The
      Company hereby acknowledges this Exercise Notice and hereby directs [Transfer
      Agent]
      to issue
      the above indicated number of shares of Common Stock.

    
      	 	 	 
	 	
              ITEC
                ENVIRONMENTAL GROUP, INC.

            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              

              Name:

              Title:

            

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    THE
      SECURITIES EVIDENCED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE U.S.
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER APPLICABLE SECURITIES LAWS
      AND
      HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
      SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
      MAY BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED
      OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, OR A VALID EXEMPTION THEREFROM.

     

    Itec
      Environmental Group, Inc.

     

    Convertible
      Note

     

    
      	
              Issuance
                Date: December [__], 2006

            	
              Original
                Principal Amount: U.S. $2,000,000

            

    

    

    FOR
      VALUE RECEIVED,
      Itec
      Environmental Group, Inc., a Delaware corporation (the "Company"),
      hereby promises to pay to Roaring Fork Capital SBIC, L.P. or registered assigns
      ("Holder")
      the
      amount set out above as the Original Principal Amount (as reduced pursuant
      to
      the terms hereof pursuant to conversion or otherwise, the "Principal")
      when
      due, whether upon the Maturity Date (as defined below), acceleration, redemption
      or otherwise (in each case in accordance with the terms hereof) and to pay
      interest ("Interest")
      on any
      outstanding Principal at the Interest Rate as may be required by Section 2
      hereof. This Convertible Note (including all Convertible Notes issued in
      exchange, transfer or replacement hereof, this "Note")
      is
      issued pursuant to the Convertible Note and Warrant Purchase Agreement (the
      “Securities Purchase Agreement”). Certain capitalized terms used herein are
      defined in Section 22.

     

    (16) PAYMENTS
      OF PRINCIPAL.
      On the
      Maturity Date, the Company shall pay to the Holder an amount in cash
      representing all outstanding Principal, accrued and unpaid Interest, if any,
      and
      accrued and unpaid Late Charges, if any, on such Principal and Interest. The
      "Maturity Date"
      shall
      be March 31, 2008, as may be extended at the option of the Holder (i) in the
      event that, and for so long as, an Event of Default (as defined in Section
      4(a))
      shall have occurred and be continuing on the Maturity Date (as may be extended
      pursuant to this Section 1) or any event that shall have occurred and be
      continuing that with the passage of time and the failure to cure would result
      in
      an Event of Default, and (ii) through the date that is ten (10) Business Days
      after the consummation of a Change of Control in the event that a Change of
      Control is publicly announced or a Change of Control Notice (as defined in
      Section 5(b)) is delivered prior to the Maturity Date. Other than as
      specifically permitted by the Note, the Company may not prepay any portion
      of
      the outstanding Principal, accrued and unpaid Interest or accrued and unpaid
      Late Charges, if any, on Principal and Interest.

     

    (17) INTEREST;
      INTEREST RATE.
      Prior
      to
      the occurrence of an Event of Default, Interest shall accrue on the outstanding
      Principal of this Note at an interest rate equal to ten percent (10.0%) per
      annum. From
      and
      after the occurrence and during the continuance of an Event of Default, Interest
      shall accrue on such outstanding Principal at an interest rate equal to ten
      percent (10.0%) per annum commencing on the date of the occurrence of such
      Event
      of Default. In the event that such Event of Default is subsequently cured,
      and
      no other Events of Default have occurred and are continuing, Interest shall
      cease to accrue hereunder as of the date of such cure; provided that the
      Interest as calculated and unpaid at such interest rate during the continuance
      of such Event of Default shall continue to apply to the extent relating to
      the
      days after the occurrence of such Event of Default through and including the
      date of cure of such Event of Default.
      Any
      Interest that shall accrue hereunder shall be payable upon any conversion or
      redemption of this Note in accordance with the terms set forth herein and on
      the
      Maturity Date.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

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

     

    (a) Conversion
      Right.
      At any
      time or times on or after the Issuance Date, the Holder shall be entitled to
      convert any portion of the outstanding and unpaid Conversion Amount (as defined
      below) into fully paid and nonassessable shares of Common Stock in accordance
      with Section 3(c), at the Conversion Rate (as defined below). The Company shall
      not issue any fraction of a share of Common Stock upon any conversion. If the
      issuance would result in the issuance of a fraction of a share of Common Stock,
      the Company shall round such fraction of a share of Common Stock up to the
      nearest whole share. The Company shall pay any and all taxes that may be payable
      with respect to the issuance and delivery of Common Stock upon conversion of
      any
      Conversion Amount; provided
      that the
      Company shall not be required to pay any tax that may be payable in respect
      of
      any issuance of Common Stock to any Person other than the converting Holder
      or
      with respect to any income tax due by the Holder with respect to such Common
      Stock.

     

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

     

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

     

    (ii) "Conversion
      Price"
      means,
      as of any Conversion Date (as defined below) or other date of determination,
      $0.0975, subject to adjustment as provided herein.

     

    (c) Mechanics
      of Conversion.

     

    (i) Optional
      Conversion.
      To
      convert any Conversion Amount into shares of Common Stock on any date (a
      "Conversion
      Date"),
      the
      Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt
      on or
      prior to 11:59 p.m., Riverdale, California Time, on such date, a copy of an
      executed notice of conversion in the form attached hereto as Exhibit
      I
      (the
      "Conversion
      Notice")
      to the
      Company and (B) if required by Section 3(c)(iii), surrender this Note to a
      common carrier for delivery to the Company as soon as practicable on or
      following such date (or an indemnification undertaking with respect to this
      Note
      in the case of its loss, theft or destruction). On or before the second
      (2nd)
      Trading
      Day following the date of receipt of a Conversion Notice, the Company shall
      transmit by facsimile a confirmation of receipt of such Conversion Notice to
      the
      Holder and the Company's transfer agent (the "Transfer
      Agent").
      On or
      before the third (3rd)
      Trading
      Day following the date of receipt of a Conversion Notice (the "Share
      Delivery Date"),
      the
      Company shall (X) provided that the Transfer Agent is participating in the
      Depository Trust Company ("DTC")
      Fast
      Automated Securities Transfer Program, 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 Transfer Agent is not participating in the
      DTC
      Fast Automated Securities Transfer Program, issue and deliver to the address
      as
      specified in the Conversion Notice, a certificate, registered in the name of
      the
      Holder or its designee, for the number of shares of Common Stock to which the
      Holder shall be entitled. If this Note is physically surrendered for conversion
      as required by Section 3(c)(iii) and the outstanding Principal of this Note
      is
      greater than the Principal portion of the Conversion Amount being converted,
      then the Company shall as soon as practicable and in no event later than three
      (3) Business Days after receipt of this Note and at its own expense, issue
      and
      deliver to the holder a new Note (in accordance with Section 16(d)) representing
      the outstanding Principal not converted. The Person or Persons entitled to
      receive the shares of Common Stock issuable upon a conversion of this Note
      shall
      be treated for all purposes as the record holder or holders of such shares
      of
      Common Stock on the Conversion Date. 

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    (ii) Registration;
      Book-Entry.
      The
      Company shall maintain a register (the "Register")
      for
      the recordation of the names and addresses of the holders of each Note and
      the
      principal amount of the Notes held by such holders (the "Registered
      Notes").
      The
      entries in the Register shall be conclusive and binding for all purposes absent
      manifest error. The Company and the holders of the Notes shall treat each Person
      whose name is recorded in the Register as the owner of a Note for all purposes,
      including, without limitation, the right to receive payments of principal and
      interest hereunder, notwithstanding notice to the contrary. A Registered Note
      may be assigned or sold in whole or in part only by registration of such
      assignment or sale on the Register. Upon its receipt of a request to assign
      or
      sell all or part of any Registered Note by a Holder, the Company shall record
      the information contained therein in the Register and issue one or more new
      Registered Notes in the same aggregate principal amount as the principal amount
      of the surrendered Registered Note to the designated assignee or transferee
      pursuant to Section 16. Notwithstanding anything to the contrary set forth
      herein, upon conversion of any portion of this Note in accordance with the
      terms
      hereof, the Holder shall not be required to physically surrender this Note
      to
      the Company unless (A) the full Conversion Amount represented by this Note
      is
      being converted or (B) the Holder has provided the Company with prior written
      notice (which notice may be included in a Conversion Notice) requesting
      reissuance of this Note upon physical surrender of this Note. The Holder and
      the
      Company shall maintain records showing the Principal, Interest and Late Charges,
      if any, converted and the dates of such conversions or shall use such other
      method, reasonably satisfactory to the Holder and the Company, so as not to
      require physical surrender of this Note upon conversion.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    (19) RIGHTS
      UPON EVENT OF DEFAULT.
      

     

    (a) Event
      of Default The
      following will be “Events
      of Default”
under
      the Note: (a) the Company shall default on the payment of principal or interest
      on the Note or on any other indebtedness of the Company when due; (b) the
      Company shall default on the observance or performance of any other covenant
      set
      forth in the Note; (c) the Company shall issue any indebtedness senior to the
      Note or grant any security for any other indebtedness (other than in connection
      with operating leases such as stand-alone office equipment leases); (d) the
      Company shall become insolvent or file a voluntary petition in bankruptcy (or
      have such a petition filed against it) or have an assignment for the benefit
      of
      creditors or other creditor arrangement or similar event occur with respect
      to
      it or its assets; or (e) failure to comply with any other term or condition of
      the Note, which shall not have been cured within ten (10) business days receipt
      of written notice to the Company.

     

    (b) Upon
      Default, and
      at
      the option of Holder, or Holder’s successors or assigns, with
      fifteen (15) days written notice to the Company, demand or presentment, Holder
      may (i) accelerate all amounts due and owing under this Note and demand payment
      immediately and/or (ii) declare the right to exercise any and all remedies
      available to Holder under applicable law.

     

    (c) Redemption
      Right.
      Upon
      the occurrence of an Event of Default with respect to this Note, the Company
      shall within (1) Business Day deliver written notice thereof via facsimile
      or
      e-mail and overnight courier (an “Event
      of Default Notice”)
      to the
      Holder. At any time after the earlier of the Holder's receipt of an Event of
      Default Notice and the Holder becoming aware of an Event of Default, the Holder
      may require the Company to redeem all or any portion of this Note by delivering
      written notice thereof (the “Event
      of Default Redemption Notice”)
      to the
      Company, which Event of Default Redemption Notice shall indicate the portion
      of
      this Note the Holder is electing to redeem. Each portion of this Note subject
      to
      redemption by the Company pursuant to this Section 4(c) shall be redeemed by
      the
      Company at a price equal to the greater of (i) the Conversion Amount to be
      redeemed and (ii) the product of (A) the Conversion Rate with respect to such
      Conversion Amount in effect at such time as the Holder delivers an Event of
      Default Redemption Notice and (B) the greater of (1) the Closing Sale Price
      of
      the Common Stock on the date immediately preceding such Event of Default, (2)
      the Closing Sale Price of the Common Stock on the date immediately after such
      Event of Default and (3) the Closing Sale Price of the Common Stock on the
      date
      the Holder delivers the Event of Default Redemption Notice (the “Event
      of Default Redemption
      Price”).
      Redemptions required by this Section 4(c) shall be made in accordance with
      the
      provisions of Section 9. To the extent redemptions required by this Section
      4(c)
      are deemed or determined by a court of competent jurisdiction to be prepayments
      of the Note by the Company, such redemptions shall be deemed to be voluntary
      prepayments. The parties hereto agree that in the event of the Company's
      redemption of any portion of the Note under this Section 4(c), the Holder's
      damages would be uncertain and difficult to estimate because of the parties'
      inability to predict future interest rates and the uncertainty of the
      availability of a suitable substitute investment opportunity for the Holder.
      Accordingly, any redemption premium due under this Section 4(c) is intended
      by
      the parties to be, and shall be deemed, a reasonable estimate of the Holder's
      actual loss of its investment opportunity and not as a penalty.

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

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

     

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

     

    (b) Redemption
      Right.
      No
      sooner than fifteen (15) days nor later than ten (10) days prior to the
      consummation of a Change of Control, but not prior to the public announcement
      of
      such Change of Control, the Company shall deliver written notice thereof via
      facsimile and overnight courier to the Holder (a "Change
      of Control Notice").
      At
      any time during the period beginning on the date of the Holder's receipt of
      a
      Change of Control Notice and ending twenty (20) Trading Days after the
      consummation of such Change of Control, the Holder may require the Company
      to
      redeem all or any portion of this Note by delivering written notice thereof
      ("Change
      of Control Redemption Notice")
      to the
      Company, which Change of Control Redemption Notice shall indicate the Conversion
      Amount the Holder is electing to redeem. The portion of this Note subject to
      redemption pursuant to this Section 5 shall be redeemed by the Company in cash
      at a price equal to the greater of (i) the product of (x) the Conversion Amount
      being redeemed and (y) the quotient determined by dividing (A) the greater
      of
      the Closing Sale Price of the Common Stock immediately prior to the consummation
      of the Change of Control, the Closing Sale Price immediately following the
      public announcement of such proposed Change of Control and the Closing Sale
      Price of the Common Stock immediately prior to the public announcement of such
      proposed Change of Control by (B) the Conversion Price and (ii) 100% of the
      Conversion Amount being redeemed (the "Change
      of Control Redemption Price").
      Redemptions required by this Section 5 shall be made in accordance with the
      provisions of Section 10 and shall have priority to payments to stockholders
      in
      connection with a Change of Control. To the extent redemptions required by
      this
      Section 5(b) are deemed or determined by a court of competent jurisdiction
      to be
      prepayments of the Note by the Company, such redemptions shall be deemed to
      be
      voluntary prepayments. Notwithstanding anything to the contrary in this Section
      5, but subject to Section 3(d), until the Change of Control Redemption Price
      is
      paid in full, the Conversion Amount submitted for redemption under this Section
      5(c) may be converted, in whole or in part, by the Holder into Common Stock
      pursuant to Section 3. The parties hereto agree that in the event of the
      Company's redemption of any portion of the Note under this Section 5(b), the
      Holder's damages would be uncertain and difficult to estimate because of the
      parties' inability to predict future interest rates and the uncertainty of
      the
      availability of a suitable substitute investment opportunity for the Holder.
      Accordingly, any redemption premium due under this Section 5(b) is intended
      by
      the parties to be, and shall be deemed, a reasonable estimate of the Holder's
      actual loss of its investment opportunity and not as a penalty.

     

    
      
         

      

      
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    (21) RIGHTS
      UPON ISSUANCE OF OTHER SECURITIES.

     

    (a) Adjustment
      of Conversion Price upon Issuance of Common Stock.
      If and
      whenever on or after the Issuance Date and so long as any of the Notes are
      outstanding, the Company issues or sells, or in accordance with this Section
      7(a) is deemed to have issued or sold, any shares
      of
Common
      Stock (including the issuance or sale of shares
      of
Common
      Stock owned or held by or for the account of the Company, but excluding
shares
      of
Common
      Stock deemed to have been issued or sold by the Company in connection with
      any
      Excluded Security) for a consideration per share (the "New
      Issuance Price")
      less
      than a price (the "Applicable
      Price")
      equal
      to the Conversion Price in effect immediately prior to such issue or sale (the
      foregoing a "Dilutive
      Issuance"),
      then
      immediately after such Dilutive Issuance, the Conversion Price then in effect
      shall be reduced to an amount equal to the
      New
      Issuance Price. For
      purposes of determining the adjusted Conversion Price under this Section 6(a),
      the following shall be applicable:

     

    (i) Issuance
      of Options.
      Except
      for Options granted and/or reserved for Rodney Rougelot, if
      the
      Company in any manner grants or sells any Options and the lowest price per
      share
      for which one (1) share
      of
Common
      Stock is issuable upon the exercise of any such Option or upon conversion or
      exchange or exercise of any Convertible Securities issuable upon exercise of
      such Option is less than the Applicable Price, then such share
      of
Common
      Stock shall be deemed to be outstanding and to have been issued and sold by
      the
      Company at the time of the granting or sale of such Option for such price per
      share. For purposes of this Section 6(a)(i), the "lowest price per share for
      which one share
      of
Common
      Stock is issuable upon the exercise of any such Option or upon conversion or
      exchange or exercise of any Convertible Securities issuable upon exercise of
      such Option" shall be equal to the sum of the lowest amounts of consideration
      (if any) received or receivable by the Company with respect to any one
share
      of
Common
      Stock upon granting or sale of the Option, upon exercise of the Option and
      upon
      conversion or exchange or exercise of any Convertible Security issuable upon
      exercise of such Option. No further adjustment of the Conversion Price shall
      be
      made upon the actual issuance of such share of Common Stock or of such
      Convertible Securities upon the exercise of such Options or upon the actual
      issuance of such Common Stock upon conversion or exchange or exercise of such
      Convertible Securities.

     

    
      
         

      

      
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    (ii) Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any Convertible Securities and the lowest
      price per share for which one share of Common Stock is issuable upon such
      conversion or exchange or exercise thereof is less than the Applicable Price,
      then such share of Common Stock shall be deemed to be outstanding and to have
      been issued and sold by the Company at the time of the issuance or sale of
      such
      Convertible Securities for such price per share. For the purposes of this
      Section 6(a)(ii), the "lowest price per share for which one share of Common
      Stock is issuable upon such conversion or exchange or exercise" shall be equal
      to the sum of the lowest amounts of consideration (if any) received or
      receivable by the Company with respect to any one share of Common Stock upon
      the
      issuance or sale of the Convertible Security and upon the conversion or exchange
      or exercise of such Convertible Security. No further adjustment of the
      Conversion Price shall be made upon the actual issuance of such share of Common
      Stock upon conversion or exchange or exercise of such Convertible Securities,
      and if any such issue or sale of such Convertible Securities is made upon
      exercise of any Options for which adjustment of the Conversion Price had been
      or
      are to be made pursuant to other provisions of this Section 6(a), no further
      adjustment of the Conversion Price shall be made by reason of such issue or
      sale.

     

    (iii) Change
      in Option Price or Rate of Conversion.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the issue, conversion, exchange or exercise of any Convertible
      Securities, or the rate at which any Convertible Securities are convertible
      into
      or exchangeable or exercisable for Common Stock changes at any time, the
      Conversion Price in effect at the time of such change shall be adjusted to
      the
      Conversion Price which would have been in effect at such time had such Options
      or Convertible Securities provided for such changed purchase price, additional
      consideration or changed conversion rate, as the case may be, at the time
      initially granted, issued or sold. For purposes of this Section 6(a)(iii),
      if
      the terms of any Option or Convertible Security that was outstanding as of
      the
      Issuance Date are changed in the manner described in the immediately preceding
      sentence, then such Option or Convertible Security and the Common Stock deemed
      issuable upon exercise, conversion or exchange thereof shall be deemed to have
      been issued as of the date of such change. No adjustment shall be made if such
      adjustment would result in an increase of the Conversion Price then in
      effect.

     

    (iv) Calculation
      of Consideration Received.
      In case
      any Option is issued in connection with the issue or sale of other securities
      of
      the Company, together comprising one (1) integrated transaction in which no
      specific consideration is allocated to such Options by the parties thereto,
      the
      Options will be deemed to have been issued for a consideration of $.01. If
      any
      Common Stock, Options or Convertible Securities are issued or sold or deemed
      to
      have been issued or sold for cash, the consideration received therefor will
      be
      deemed to be the net amount received by the Company therefor. If any Common
      Stock, Options or Convertible Securities are issued or sold for a consideration
      other than cash, the amount of the consideration other than cash received by
      the
      Company will be the fair value of such consideration, except where such
      consideration consists of securities, in which case the amount of consideration
      received by the Company will be the Closing Sale Price of such securities on
      the
      date of receipt. If any Common Stock, Options or Convertible Securities are
      issued to the stockholders of the non-surviving entity in connection with any
      merger in which the Company is the surviving entity, the amount of consideration
      therefor will be deemed to be the fair value of such portion of the net assets
      and business of the non-surviving entity as is attributable to such Common
      Stock, Options or Convertible Securities, as the case may be. The fair value
      of
      any consideration other than cash or securities will be determined jointly
      by
      the Company and the Required Holders. If such parties are unable to reach
      agreement within ten (10) days after the occurrence of an event requiring
      valuation (the “Valuation
      Event”),
      the
      fair value of such consideration will be determined, at the Company's expense,
      within five (5) Business Days after the tenth (10th)
      day
      following the Valuation Event by an independent, reputable appraiser jointly
      selected by the Company and the Required Holders. The determination of such
      appraiser shall be deemed binding upon all parties absent manifest
      error.

     

    
      
         

      

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

     

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

     

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

     

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

     

    
      
         

      

      
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    (23) RESERVATION
      OF AUTHORIZED SHARES.

     

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

     

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

     

    (24) HOLDER'S
      REDEMPTIONS.

     

    (a) Mechanics.
      The
      Company shall deliver the applicable Event of Default Redemption Price to the
      Holder within five (5) Business Days after the Company's receipt of the Holder's
      Event of Default Redemption Notice. If the Holder has submitted a Change of
      Control Redemption Notice in accordance with Section 5(b), the Company shall
      deliver the applicable Change of Control Redemption Price to the Holder
      concurrently with the consummation of such Change of Control if such notice
      is
      received prior to the consummation of such Change of Control and within five
      (5)
      Business Days after the Company's receipt of such notice otherwise. In the
      event
      of a redemption of less than all of the Conversion Amount of this Note, the
      Company shall promptly cause to be issued and delivered to the Holder a new
      Note
      (in accordance with Section 12(d)) representing the outstanding Principal which
      has not been redeemed. In the event that the Company does not pay the applicable
      Redemption Price to the Holder within the time period required, at any time
      thereafter and until the Company pays such unpaid Redemption Price in full,
      the
      Holder shall have the option, in lieu of redemption, to require the Company
      to
      promptly return to the Holder all or any portion of this Note representing
      the
      Conversion Amount that was submitted for redemption and for which the applicable
      Redemption Price (together with any Late Charges thereon) has not been paid.
      Upon the Company's receipt of such notice, (x) the Redemption Notice shall
      be
      null and void with respect to such Conversion Amount, (y) the Company shall
      immediately return this Note, or issue a new Note (in accordance with Section
      12(d)) to the Holder representing such Conversion Amount and (z) the Conversion
      Price of this Note or such new Notes shall be adjusted to the lesser of (A)
      the
      Conversion Price as in effect on the date on which the Redemption Notice is
      voided and (B) the lowest Closing Bid Price of the Common Stock during the
      period beginning on and including the date on which the Redemption Notice is
      delivered to the Company and ending on and including the date on which the
      Redemption Notice is voided. The Holder's delivery of a notice voiding a
      Redemption Notice and exercise of its rights following such notice shall not
      affect the Company's obligations to make any payments of Late Charges which
      have
      accrued prior to the date of such notice with respect to the Conversion Amount
      subject to such notice.

     

    
      
         

      

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

     

    (25) VOTING
      RIGHTS.
      The
      Holder shall have no voting rights as the holder of this Note, except
      as
      required by law and as expressly provided in this Note.

     

    (26) COVENANTS.

     

    (a) Rank. Subject
      to Section 11(a)(i) and 11(b) herein, all payments due under this Note (A)
      shall
      rank pari
      passu,
      on a
      pro-rata basis, with all the Permitted Indebtedness and (B) shall be senior
      to
      all other Indebtedness of the Company and its Subsidiaries, other than Permitted
      Senior Indebtedness. 

     

    (i) Pro
      Rata Distributions. It
      is
      expressly agreed by the Holder that all payments received by the Company under
      or in connection with any sale or liquidation of any assets or collateral,
      subject to the Permitted Senior Indebtedness, shall be divided among the Holder
      and ICG pari
      passu, on
      a
      pro-rata basis, equal to the quotient of: (x) the unpaid principal amount of
      the
      Notes held by the Holder and ICG (without regard to interest); divided by (y)
      the aggregate unpaid principal amount of all Notes held by the Holder and ICG
      (without regard to interest).

     

    
      
         

      

      
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    (b) Restricted
      Payments.
      The
      Company shall not, and the Company shall not permit any of its Subsidiaries
      to,
      directly or indirectly, redeem, defease, repurchase, repay or make any payments
      in respect of, by the payment of cash or cash equivalents (in whole or in part,
      whether by way of open market purchases, tender offers, private transactions
      or
      otherwise), of any amount more than Five Hundred Thousand Dollars ($500,000)
      (the “Limited
      Amount”)
      of any
      Permitted Indebtedness (other than this Note), whether by way of payment in
      respect of principal of (or premium, if any) or interest on such Indebtedness.
      In the event that investor’s representing a portion of the Permitted
      Indebtedness in excess of the Limited Amount object to the Common Stock shares,
      options or warrants issued or otherwise allocated to Mr. Rodney Rougelot
      pursuant to Mr. Rougelot’s employment agreement or demand an adjustment to their
      conversion price as a result of the Common Stock shares, options and/or warrants
      issued or otherwise allocated to Mr. Rougelot pursuant to Mr. Rougelot’s
      employment agreement, then the Company shall return, at the written request
      of
      Roaring Fork, the Two Million Dollar ($2,000,000) investment underlying this
      Note. 

     

    (27) REISSUANCE
      OF THIS NOTE.

     

    (a) Lost,
      Stolen or Mutilated Note.
      Upon
      receipt by the Company of evidence reasonably satisfactory to the Company of
      the
      loss, theft, destruction or mutilation of this Note, and, in the case of loss,
      theft or destruction, of any indemnification undertaking by the Holder to the
      Company in customary form and, in the case of mutilation, upon surrender and
      cancellation of this Note, the Company shall execute and deliver to the Holder
      a
      new Note (in accordance with Section 16(d)) representing the outstanding
      Principal.

     

    (b) Note
      Exchangeable for Different Denominations.
      This
      Note is exchangeable, upon the surrender hereof by the Holder at the principal
      office of the Company, for a new Note or Notes (in accordance with Section
      12(d)
      and in principal amounts of at least $100,000) representing in the aggregate
      the
      outstanding Principal of this Note, and each such new Note will represent such
      portion of such outstanding Principal as is designated by the Holder at the
      time
      of such surrender.

     

    (c) Issuance
      of New Notes.
      Whenever the Company is required to issue a new Note pursuant to the terms
      of
      this Note, such new Note (i) shall be of like tenor with this Note, (ii) shall
      represent, as indicated on the face of such new Note, the Principal remaining
      outstanding (or in the case of a new Note being issued pursuant to Section
      12(a)
      or Section 12(c), the Principal designated by the Holder which, when added
      to
      the principal represented by the other new Notes issued in connection with
      such
      issuance, does not exceed the Principal remaining outstanding under this Note
      immediately prior to such issuance of new Notes), (iii) shall have an issuance
      date, as indicated on the face of such new Note, which is the same as the
      Issuance Date of this Note, (iv) shall have the same rights and conditions
      as
      this Note, and (v) shall represent accrued and unpaid Interest and Late Charges
      on the Principal and Interest of this Note, if any, from the Issuance
      Date.

     

    
      
         

      

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

     

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

     

    (30) TRANSFER.
      This
      Note may be offered, sold, assigned or transferred by the Holder without the
      consent of the Company; provided that the Holder acknowledges that there is
      an
      exemption from registration available pursuant to the Securities Act of 1933,
      as
      amended, and applicable state securities laws.

     

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

     

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

     

    
      
         

      

      
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    (33) DISPUTE
      RESOLUTION.
      In the
      case of a dispute as to the determination of the Closing Bid Price, the Closing
      Sale Price or the Weighted Average Price or the arithmetic calculation of the
      Conversion Rate or any Redemption Price, the Company shall submit the disputed
      determinations or arithmetic calculations via facsimile within seven (7)
      Business Days of receipt, or deemed receipt, of the Conversion Notice or
      Redemption Notice or other event giving rise to such dispute, as the case may
      be, to the Holder. If the Holder and the Company are unable to agree upon such
      determination or calculation within seven (7) Business Days of such disputed
      determination or arithmetic calculation being submitted to the Holder, then
      the
      Company shall, within seven Business Days submit via facsimile (a) the disputed
      determination of the Closing Bid Price, the Closing Sale Price or the Weighted
      Average Price to an independent, reputable investment bank selected by the
      Company and approved by the Holder or (b) the disputed arithmetic calculation
      of
      the Conversion Rate or any Redemption Price to the Company's independent,
      outside accountant. The Company, at the Company's expense, shall cause the
      investment bank or the accountant, as the case may be, to perform the
      determinations or calculations and notify the Company and the Holder of the
      results no later than seven (7) Business Days from the time it receives the
      disputed determinations or calculations. Such investment bank's or accountant's
      determination or calculation, as the case may be, shall be binding upon all
      parties absent demonstrable error.

     

    (34) NOTICES;
      PAYMENTS.

     

    (a) Notices.
      Whenever notice is required to be given under this Note, unless otherwise
      provided herein, such notice shall be given in accordance with Section 8.6
      of
      the Securities Purchase Agreement. The Company shall provide the Holder with
      prompt written notice of all actions taken pursuant to this Note, including
      in
      reasonable detail a description of such action and the reason therefore. Without
      limiting the generality of the foregoing, the Company will give written notice
      to the Holder (i) immediately upon any adjustment of the Conversion Price,
      setting forth in reasonable detail, and certifying, the calculation of such
      adjustment and (ii) at least twenty (20) days prior to the date on which the
      Company closes its books or takes a record (A) with respect to any dividend
      or
      distribution upon the Common Stock, (B) with respect to any pro rata
      subscription offer to holders of Common Stock or (C) for determining rights
      to
      vote with respect to any Fundamental Transaction, dissolution or liquidation,
      provided in each case that such information shall be made known to the public
      prior to or in conjunction with such notice being provided to the
      Holder.

     

    (b) Payments.
      Whenever any payment of cash is to be made by the Company to any Person pursuant
      to this Note, such payment shall be made in lawful money of the United States
      of
      America by a check drawn on the account of the Company and sent via overnight
      courier service to such Person at such address as previously provided to the
      Company in writing (which address, in the case of each of the Purchasers, shall
      initially be as set forth on the Schedule of Buyers attached to the Securities
      Purchase Agreement); provided that the Holder may elect to receive a payment
      of
      cash via wire transfer of immediately available funds by providing the Company
      with prior written notice setting out such request and the Holder's wire
      transfer instructions. Whenever any amount expressed to be due by the terms
      of
      this Note is due on any day which is not a Business Day, the same shall instead
      be due on the next succeeding day which is a Business Day and, in the case
      of
      any Interest Date which is not the date on which this Note is paid in full,
      the
      extension of the due date thereof shall not be taken into account for purposes
      of determining the amount of Interest due on such date. 

     

    
      
         

      

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

     

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

     

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

     

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

     

    (a) "Bloomberg"
      means
      Bloomberg Financial Markets.

     

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

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

     

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

     

    (d) "Closing
      Bid Price"
      and
      "Closing
      Sale Price"
      means,
      for any security as of any date, the last closing bid price and last closing
      trade price, respectively, for such security on the Principal Market, as
      reported by Bloomberg, or, if the Principal Market begins to operate on an
      extended hours basis and does not designate the closing bid price or the closing
      trade price, as the case may be, then the last bid price or last trade price,
      respectively, of such security prior to 4:00:00 p.m., New York Time, as reported
      by Bloomberg, or, if the Principal Market is not the principal securities
      exchange or trading market for such security, the last closing bid price or
      last
      trade price, respectively, of such security on the principal securities exchange
      or trading market where such security is listed or traded as reported by
      Bloomberg, or if the foregoing do not apply, the last closing bid price or
      last
      trade price, respectively, of such security in the over-the-counter market
      on
      the electronic bulletin board for such security as reported by Bloomberg, or,
      if
      no closing bid price or last trade price, respectively, is reported for such
      security by Bloomberg, the average of the bid prices, or the ask prices,
      respectively, of any market makers for such security as reported in the "pink
      sheets" by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).
      If
      the Closing Bid Price or the Closing Sale Price cannot be calculated for a
      security on a particular date on any of the foregoing bases, the Closing Bid
      Price or the Closing Sale Price, as the case may be, of such security on such
      date shall be the fair market value as mutually determined by the Company and
      the Holder. If the Company and the Holder are unable to agree upon the fair
      market value of such security, then such dispute shall be resolved pursuant
      to
      Section 21. All such determinations to be appropriately adjusted for any stock
      dividend, stock split, stock combination or other similar transaction during
      the
      applicable calculation period.

     

    (e) "Common
      Stock Deemed Outstanding"
      means,
      at any given time, the number of shares of Common Stock outstanding at such
      time, plus the number of shares of Common Stock deemed to be outstanding
      pursuant to Sections 7(a)(i) and 7(a)(ii) hereof regardless of whether the
      Options or Convertible Securities are actually exercisable at such time, but
      excluding any Common Stock owned or held by or for the account of the Company
      or
      issuable upon conversion or exercise, as applicable, of the Notes and the
      Warrants.

     

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

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

     

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

     

    (h) "Eligible
      Market"
      means
      The New York Stock Exchange, Inc., the American Stock Exchange, The NASDAQ
      Global Select Market, The NASDAQ Global Market or The NASDAQ Capital
      Market.

     

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

     

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

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

     

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

     

    (l) "Permitted
      Indebtedness"
      means
      (i) the Indebtedness evidenced by this Note, and (ii) Itec Capital Group, LLC
      (“ICG”).

     

    (m) "Permitted
      Senior Indebtedness"
      the
      principal of (and premium, if any), interest on, and all fees and other amounts
      (including, without limitation, any reasonable out-of-pocket costs, enforcement
      expenses (including reasonable out-of-pocket legal fees and disbursements),
      collateral protection expenses and other reimbursement or indemnity obligations
      relating thereto) payable by Company and/or its Subsidiaries under or in
      connection with its credit agreement for the principle amount of approximately
      Two Million Dollars ($2,000,000) with the California Integrated Waste Management
      Board. 

     

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

     

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

     

    (p) "Principal
      Market"
      means
      the NASD OTC Bulletin Board.

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

     

    (q) "Redemption
      Notices"
      means,
      collectively, the Event of Default Redemption Notices and the Change of Control
      Redemption Notices, each of the foregoing, individually, a Redemption
      Notice.

     

    (r) "Redemption
      Prices"
      means,
      collectively, the Event of Default Redemption Price and the Change of Control
      Redemption Price, each of the foregoing, individually, a Redemption
      Price.

     

    (s) "Required
      Holders"
      means
      the holders of Notes representing at least two-thirds (2/3rd)
      of the
      aggregate principal amount of the Notes then outstanding.

     

    (t) "SEC"
      means
      the United States Securities and Exchange Commission. 

     

    (u) "Securities
      Purchase Agreement"
      means
      that certain Convertible Note and Warrant Purchase Agreement dated as of the
      Issuance Date by and between the Company and Roaring Fork Capital SBIC, L.P.
      pursuant to which the Company issued the Note. 

     

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

     

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

     

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

     

    (y) "Weighted
      Average Price"
      means,
      for any security as of any date, the dollar volume-weighted average price for
      such security on the Principal Market during the period beginning at 9:30:01
      a.m., New York Time (or such other time as the Principal Market publicly
      announces is the official open of trading), and ending at 4:00:00 p.m., New
      York
      Time (or such other time as the Principal Market publicly announces is the
      official close of trading) as reported by Bloomberg through its "Volume at
      Price" functions, or, if the foregoing does not apply, the dollar
      volume-weighted average price of such security in the over-the-counter market
      on
      the electronic bulletin board for such security during the period beginning
      at
      9:30:01 a.m., New York Time (or such other time as such market publicly
      announces is the official open of trading), and ending at 4:00:00 p.m., New
      York
      Time (or such other time as such market publicly announces is the official
      close
      of trading) as reported by Bloomberg, or, if no dollar volume-weighted average
      price is reported for such security by Bloomberg for such hours, the average
      of
      the highest closing bid price and the lowest closing ask price of any of the
      market makers for such security as reported by the OTC Bulletin Board. If the
      Weighted Average Price cannot be calculated for a security on a particular
      date
      on any of the foregoing bases, the Weighted Average Price of such security
      on
      such date shall be the fair market value as mutually determined by the Company
      and the Holder. If the Company and the Holder are unable to agree upon the
      fair
      market value of such security, then such dispute shall be resolved pursuant
      to
      Section 21. All such determinations to be appropriately adjusted for any stock
      dividend, stock split, stock combination or other similar transaction during
      the
      applicable calculation period.

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

     

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

     

    [Signature
      Page Follows]

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

     

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

    
      	 	 	 
	 	
              ITEC
                ENVIRONMENTAL GROUP, INC.

            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              

              Name:
                
                Title:

              

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
      I

     

    ITEC
      ENVIRONMENTAL GROUP, INC.

     

    CONVERSION
      NOTICE

     

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

    

      
        	
                Date
                  of Conversion:

              	 
	
                Aggregate
                  Conversion Amount to be converted:

              	 
	
                Please
                  confirm the following information:

              
	
                Conversion
                  Price:

              	 
	
                Number
                  of shares of Common Stock to be issued:

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

              
	
                Issue
                  to:

              	 
	 	 
	 	 
	
                Facsimile
                  Number:

              	 
	
                Authorization:

              	 
	
                By:

              	 
	
                Title:

              	 
	
                Dated:

              	 
	
                Account
                  Number:

              	 
	
                  (if
                  electronic book entry transfer)

              	 
	
                Transaction
                  Code Number:

              	 
	
                  (if
                  electronic book entry transfer)

              	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ACKNOWLEDGMENT

     

    The
      Company hereby acknowledges this Conversion Notice and hereby directs
[INSERT
      NAME OF TRANSFER AGENT]
      to issue
      the above indicated number of shares of Common Stock.

    
      	 	 	 
	 	
              ITEC
                ENVIRONMENTAL GROUP, INC.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                
                Title:

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