Document:

THIS NOTE AND THE RIGHTS PROVIDED HEREIN
		ARE SUBJECT IN ALL RESPECTS TO THE TERMS OF THE SUBORDINATION AGREEMENT OF EVEN
		DATE HEREWITH BETWEEN THE AGENT OF THE PAYEE AND SILICON VALLEY
		BANK.
	 

	 
		THIS NOTE HAS NOT BEEN REGISTERED UNDER
		THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
		STATE SECURITIES LAW AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
		UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE
		SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT
		REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
		PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
	 

	 
		AXS-ONE INC.
	 

	 
		SERIES B 6% SECURED CONVERTIBLE
		PROMISSORY NOTE
	 

	 
		 
	 

	 
			
				
				  U.S. $____________
				

			 	
				
				  Rutherford, NJ
				

			 
	
				
				  No.: PN-2007-B-__
				

			 	
				
				  May 29, 2007
				

			 

 

	 
		FOR VALUE RECEIVED, the undersigned, AXS-ONE INC., a Delaware corporation
		(the “Company”),
		hereby promises to pay to the order of
		_________ or any future holder of this
		promissory note (the “Payee”), at
		the principal office of the Payee set forth herein, or at such other place as
		the holder may designate in writing to the Company, the principal sum of
		_____________ Dollars (U.S. $__________), or such other amount as may be
		outstanding hereunder (the “Principal Amount”), together with all accrued but unpaid interest,
		in such coin or currency of the United States of America as at the time shall
		be legal tender for the payment of public and private debts and in immediately
		available funds, as provided in this promissory note (the “Note”).
	 

	 
		This Note is one of a duly authorized issue
		of Series B 6% Secured Convertible Promissory Notes of the Company, in
		aggregate principal amount of Two Million Five Hundred Thousand Dollars
		($2,500,000) (together with the authorized issue of Series A 6% Secured
		Convertible Promissory Notes of the Company, in aggregate principal amount of
		Two Million Five Hundred Thousand Dollars ($2,500,000), collectively the
		“Promissory Notes”) issued pursuant to the Convertible Note and
		Warrant Purchase Agreement of even date herewith (the “Purchase Agreement”; capitalized terms used herein without definition
		shall have the meanings assigned in the Purchase Agreement). The Promissory
		Notes rank equally and ratably without priority over one another. No payment,
		including any prepayment, shall be made hereunder unless payment, including any
		prepayment, is offered with respect to the other Promissory Notes 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		in an amount which bears the same ratio to
		the then unpaid principal amount of such Promissory Notes as the payment made
		hereon bears to the then unpaid principal amount under this Note.
	 

	 
		1. Principal and Interest Payments.
	 

	 
		(a) The Company shall repay in full the
		entire principal balance then outstanding under this Note plus all accrued and
		unpaid interest on the first to occur (the “Maturity Date”) of: (i) May 29, 2009; (ii) such time as there
		occurs a Sale Transaction (as defined below) or (iii) the acceleration of the
		obligations as contemplated by this Note. 
	 

	 
		“Sale Transaction” shall mean (i) the sale or other disposition of
		all or substantially all of the Company’s assets, or (ii) the acquisition
		of the Company by another entity by means of any transaction or series of
		related transactions to which the Company is party (including, without
		limitation, any stock acquisition, reorganization, merger or consolidation but
		excluding any sale of stock for capital raising purposes) other than a
		transaction or series of transactions in which the holders of the voting
		securities of the Company outstanding immediately prior to such transaction
		continue to retain (either by such voting securities remaining outstanding or
		by such voting securities being converted into voting securities of the
		surviving entity), as a result of shares in the Company held by such holders
		prior to such transaction, at least fifty percent (50%) of the total voting
		power represented by the voting securities of the Company or such surviving
		entity outstanding immediately after such transaction or series of
		transactions. 
	 

	 
		(b) Interest on the outstanding principal
		balance of this Note shall accrue at a rate of six percent (6.00%) per annum,
		compounded quarterly. Interest on the outstanding principal balance of this
		Note shall be computed on the basis of the actual number of days elapsed and a
		year of three hundred sixty (360) days and shall be payable on the Maturity
		Date, upon earlier prepayment of this Note or in the form of shares of common
		stock, par value $0.01 per share, of the Company (the “Common Stock”) upon conversion of this Note as set forth in
		Section 8 below. Furthermore, upon the occurrence of an Event of Default, then
		to the extent permitted by law, the Company will pay interest to the Payee,
		payable on demand, on the outstanding principal balance of this Note from the
		date of the Event of Default until payment in full at the rate of fifteen
		percent (15%) per annum, compounded quarterly.
	 

	 
		(c) The Company may not prepay the
		outstanding principal amount of this Note or the interest thereon prior to the
		Maturity Date (a “Prepayment”) without the written consent of the Payee, unless
		the Company shall provide at least thirty (30) days prior written notice of the
		date on which the Company intends to make such Prepayment (a
		“Prepayment Notice”). Any partial Prepayment shall be applied first
		to accrued but unpaid interest and second to unpaid principal. Nothing in this
		Section 1(c) shall limit the right of the Payee to convert this Note into
		Common Stock at any time after receipt of the Prepayment Notice and prior to
		the time at which such Prepayment is made.
	 

	 
		2. Non-Business Days. Whenever any payment to be made shall be due on a
		non-Business Day, such payment may be due on the next succeeding Business Day
		and such next 
	 

	 
		 
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		succeeding day shall be included in the
		calculation of the amount of accrued interest payable on such date.
	 

	 
		3. Security. This
		Note is secured pursuant to the terms of a Security Agreement (the
		“Security Agreement”) between the Company and the holders of the
		Promissory Notes of even date herewith by a security interest in the Collateral
		(as such term is defined in the Security Agreement). This Note is subject to
		the provisions of the Security Agreement.
	 

	 
		4. Subordination of Future Debt; Payment of
		Dividends. Except as provided in the
		Transaction Documents, any debt incurred after the date hereof to any creditor
		shall be subordinated to the indebtedness evidenced by this Note. The Company
		shall not declare or pay any dividend or distribution with respect to any
		preferred stock or Common Stock of the Company other than a pro rata dividend
		with respect to the Common Stock payable solely in shares of Common
		Stock.
	 

	 
		5. Representations and Warranties of the
		Company. The Company represents and
		warrants to the Payee as follows:
	 

	 
		(a) The Company has been duly incorporated
		and is validly existing and in good standing under the laws of the state of
		Delaware, with full corporate power and authority to own, lease and operate its
		properties and to conduct its business as currently conducted.
	 

	 
		(b) This Note has been duly authorized,
		validly executed and delivered on behalf of the Company and is a valid and
		binding obligation of the Company enforceable against the Company in accordance
		with its terms, subject to limitations on enforcement by general principles of
		equity and by bankruptcy or other laws affecting the enforcement of
		creditors’ rights generally, and the Company has full power and authority
		to execute and deliver this Note and to perform its obligations
		hereunder.
	 

	 
		6. Events of Default. The occurrence of any of the following events shall be
		an “Event of
		Default” under this Note:
	 

	 
		(a) the Company shall fail to pay the
		principal or any accrued interest hereunder or any other Note after the date
		such payment shall become due and payable hereunder or thereunder; or
	 

	 
		(b) if default shall be made in the
		performance or observance of any representation, warranty, covenant, or
		agreement contained in this Note, in the Security Agreement, in the Purchase
		Agreement or in the Investor Rights Agreement, or in any other agreement
		between the Company and the Payee relating to indebtedness of the Company to
		the Payee or any of its affiliates for borrowed money and such default shall
		have continued for a period of five (5) days after Company’s receipt of
		written notice of such default (unless such default is on account of failure to
		give a required notice, in which event such 5 day cure period shall commence
		with the date of such default); or
	 

	 
		 
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
		(c) the Company shall (i) apply for or
		consent to the appointment of, or the taking of possession by, a receiver,
		custodian, trustee or liquidator of itself or of all or a substantial part of
		its property or assets, (ii) make a general assignment for the benefit of its
		creditors, (iii) commence a voluntary case under the United States Bankruptcy
		Code (the “Bankruptcy
		Code”) or under the comparable
		laws of any jurisdiction (foreign or domestic), (iv) file a petition seeking to
		take advantage of any bankruptcy, insolvency, moratorium, reorganization or
		other similar law affecting the enforcement of creditors’ rights
		generally, (v) acquiesce in writing to any petition filed against it in an
		involuntary case under the Bankruptcy Code or under the comparable laws of any
		jurisdiction (foreign or domestic), or (vi) take any action under the laws of
		any jurisdiction (foreign or domestic) analogous to any of the foregoing;
		or
	 

	 
		(d) a proceeding or case shall be commenced
		in respect of the Company or any of its subsidiaries without its application or
		consent, in any court of competent jurisdiction, seeking (i) the liquidation,
		reorganization, moratorium, dissolution, winding up, or composition or
		readjustment of its debts, (ii) the appointment of a trustee, receiver,
		custodian, liquidator or the like of it or of all or any substantial part of
		its assets or (iii) similar relief in respect of it under any law providing for
		the relief of debtors, and such proceeding or case described in clause (i),
		(ii) or (iii) shall continue undismissed, or unstayed and in effect, for a
		period of thirty (30) consecutive days or any order for relief shall be entered
		in an involuntary case under the Bankruptcy Code or under the comparable laws
		of any jurisdiction (foreign or domestic) against the Company or any of its
		subsidiaries or action under the laws of any jurisdiction (foreign or domestic)
		analogous to any of the foregoing shall be taken with respect to the Company or
		any of its subsidiaries and shall continue undismissed, or unstayed and in
		effect for a period of ninety (90) consecutive days.
	 

	 
		7. Remedies Upon an Event of Default. If an Event of Default shall have occurred and shall
		be continuing, the Payee of this Note may at any time at its option, (a)
		declare the entire unpaid principal balance of this Note, together with all
		interest accrued hereon, due and payable, and thereupon, the same shall be
		accelerated and so due and payable; provided,
		however, that upon the occurrence of an Event of Default
		described in (i) Sections 6(c) and (d), without presentment, demand, protest,
		or notice, all of which are hereby expressly unconditionally and irrevocably
		waived by the Company, the outstanding principal balance and accrued interest
		hereunder shall be automatically due and payable, and (ii) Sections 6(a) and
		(b) the Payee may exercise or otherwise enforce any one or more of the
		Payee’s rights, powers, privileges, remedies and interests under this Note
		or applicable law. No course of delay on the part of the Payee shall operate as
		a waiver thereof or otherwise prejudice the right of the Payee. No remedy
		conferred hereby shall be exclusive of any other remedy referred to herein or
		now or hereafter available at law, in equity, by statute or otherwise.
	 

	 
		8. Conversion.
		
	 

	 
		(a) General. The
		holder of this Note shall have the right at any time following approval by the
		American Stock Exchange of an Additional Listing Application with respect to
		the Conversion Shares, at such holder’s option, to convert all or any
		lesser portion of the 
	 

	 
		 
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
	 

	 

	 
		Principal Amount plus accrued and unpaid
		interest thereon into such number of fully paid and non-assessable shares of
		Common Stock as is determined by dividing (i) the portion of the Principal
		Amount to be converted plus accrued and unpaid interest thereon by (ii) the
		Conversion Rate (as defined below) then in effect for this Note. The initial
		conversion rate shall be $2.50, such rate to be subject to adjustment in
		accordance with the provisions of this Section 8. Such conversion rate in
		effect from time to time, as adjusted pursuant to this Section 8, is referred
		to herein as a “Conversion
		Rate.” All of the remaining
		provisions of this Section 8 shall apply separately to each Conversion Rate in
		effect from time to time with respect to this Note.
	 

	 
		(b) Mechanics of Conversion.
	 

	 
		(i) Such right of conversion shall be
		exercised by the Payee by delivering to the Company a conversion notice in the
		form attached hereto as Exhibit
		A (the “Conversion Notice”), appropriately completed and duly signed, and by
		surrender not later than two (2) Business Days thereafter of this Note. The
		Conversion Notice shall also contain a statement of the name or names (with
		addresses and tax identification or social security numbers) in which the
		certificate or certificates for Common Stock shall be issued, if other than the
		name in which this Note is registered. Promptly after the receipt of the
		Conversion Notice, the Company shall issue and deliver, or cause to be
		delivered, to the Payee or such Payee’s nominee, a certificate or
		certificates for the number of shares of Common Stock issuable upon such
		conversion. Such conversion shall be deemed to have been effected as of the
		close of business on the date of receipt by the Company of the Conversion
		Notice (the “Conversion
		Date”), and the person or persons
		entitled to receive the shares of Common Stock issuable upon conversion shall
		be treated for all purposes as the holder or holders of record of such shares
		of Common Stock as of the close of business on the Conversion Date. If the
		Payee has not converted the entire amount of this Note pursuant to the
		Conversion Notice, then the Company shall execute and deliver to the Payee a
		new Note instrument identical in terms to this Note, but with a principal
		amount reflecting the unconverted portion of this Note. The new Note instrument
		shall be delivered subject to the same timing terms as the certificates for the
		Common Stock.
	 

	 
		(ii) The Company shall effect such issuance
		of Common Stock within three (3) trading days following the Conversion Date and
		shall transmit the certificates by messenger or reputable overnight delivery
		service to reach the address designated by such holder within three (3) trading
		days after the receipt by the Company of such Conversion Notice. Provided that
		the holder complies with all of the provisions of this Note relating to the
		conversion hereof, if certificates evidencing the Common Stock are not received
		by the holder (through no fault or negligence of the holder) within five (5)
		Business Days following the Conversion Date, then the holder will be entitled
		to revoke and withdraw its Conversion Notice, in whole or in part, at any time
		prior to its receipt of those certificates.
	 

	 
		(d) Fractional Shares. The Company shall not be required to issue a
		fractional share of Common Stock upon conversion of this Note. As to any
		fraction of a share which the holder of this Note would otherwise be entitled
		to acquire upon such conversion, the Company shall pay an amount in cash equal
		to the Current Market Price (as defined below) per share of Common Stock on the
		date of conversion, multiplied by such fraction.
	 

	 
		 
	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
	 

	 

	 
		“Current Market Price” means, in respect of any share of Common Stock on
		any date herein specified:
	 

	 
		(1) if there shall not then be a public
		market for the Common Stock, the higher of (a) the book value per share of
		Common Stock at such date, and (b) the fair market value per share of Common
		Stock as determined in good faith by the Board, or
	 

	 
		(2) if there shall then be a public market
		for the Common Stock, the average of the daily market prices for the 20
		consecutive trading days immediately before such date. The daily market price
		for each such trading day shall be (i) the closing bid price on such day on the
		principal stock exchange (including Nasdaq) on which such Common Stock is then
		listed or admitted to trading, or quoted, as applicable, (ii) if no sale takes
		place on such day on any such exchange, the last reported closing bid price on
		such day as officially quoted on any such exchange (including Nasdaq), (iii) if
		the Common Stock is not then listed or admitted to trading on any stock
		exchange, the last reported closing bid price on such day in the
		over-the-counter market, as furnished by the National Association of Securities
		Dealers Automatic Quotation System or the Pink Sheets LLC, (iv) if neither such
		corporation at the time is engaged in the business of reporting such prices, as
		furnished by any similar firm then engaged in such business, or (v) if there is
		no such firm, as furnished by any member of the National Association of
		Securities Dealers, Inc. (the “NASD”)
		selected mutually by holders of a majority in interest of the Promissory Notes
		and the Company or, if they cannot agree upon such selection, as selected by
		two such members of the NASD, one of which shall be selected by holders of a
		majority in interest of the Promissory Notes and one of which shall be selected
		by the Company (as applicable, the “Daily Market Price”).
	 

	 
		(e) Stock Dividends, Subdivisions and
		Combinations. If at any time while this
		Note is outstanding, the Company shall: 
	 

	 
		(i) cause the holders of its Common Stock to
		be entitled to receive a dividend payable in, or other distribution of,
		additional shares of Common Stock,
	 

	 
		(ii) subdivide its outstanding shares of
		Common Stock into a larger number of shares of Common Stock, or
	 

	 
		(iii) combine its outstanding shares of
		Common Stock into a smaller number of shares of Common Stock,
	 

	 
		then in each such case the Conversion Rate
		shall be multiplied by a fraction of which the numerator shall be the number of
		shares of Common Stock (excluding treasury shares, if any) outstanding
		immediately before such event and of which the denominator shall be the number
		of shares of Common Stock outstanding immediately after such event. Any
		adjustment made 
	 

	 
		 
	 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
	 

	 

	 
		pursuant to clause (i) of this Section 8(e)
		shall become effective immediately after the record date for the determination
		of stockholders entitled to receive such dividend or distribution, and any
		adjustment pursuant to clauses (ii) or (iii) of this Section 8(e) shall become
		effective immediately after the effective date of such subdivision or
		combination. If any event requiring an adjustment under this paragraph occurs
		during the period that a Conversion Rate is calculated hereunder, then the
		calculation of such Conversion Rate shall be adjusted appropriately to reflect
		such event.
	 

	 
		(f) Certain Other Distributions. If at any time while this Note is outstanding the
		Company shall take a record of the holders of its Common Stock for the purpose
		of entitling them to receive any dividend or other distribution of:
	 

	 
		(i) cash,
	 

	 
		(ii) any evidences of its indebtedness, any
		shares of stock of any class or any other securities or property or assets of
		any nature whatsoever (other than cash or additional shares of Common Stock as
		provided in Section 8(e) hereof), or 
	 

	 
		(iii) any warrants or other rights to
		subscribe for or purchase any evidences of its indebtedness, any shares of
		stock of any class or any other securities or property or assets of any nature
		whatsoever (in each case set forth in subparagraphs 8(f)(i), 8(f)(ii) and
		8(f)(iii) hereof, the “Distributed
		Property”), 
	 

	 
		then upon any conversion of this Note that
		occurs after such record date, the holder of this Note shall be entitled to
		receive, in addition to the Conversion Shares, the Distributed Property that
		such holder would have been entitled to receive in respect of such number of
		Conversion Shares had the holder been the record holder of such Conversion
		Shares as of such record date. Such distribution shall be made whenever any
		such conversion is made. In the event that the Distributed Property consists of
		property other than cash, then the fair value of such Distributed Property
		shall be as determined in good faith by the Board and set forth in reasonable
		detail in a written valuation report (the “Valuation Report”) prepared by the Board. The Company shall give
		written notice of such determination and a copy of the Valuation Report to the
		holder of this Note, and if the holder objects to such determination within
		twenty (20) Business Days following the date such notice is given, the Company
		shall submit such valuation to an investment banking firm of recognized
		national standing selected by the holder of this Note and acceptable to the
		Company in its reasonable discretion, whose opinion shall be binding upon the
		Company and the holder of this Note. A reclassification of the Common Stock
		(other than a change in par value, or from par value to no par value or from no
		par value to par value) into shares of Common Stock and shares of any other
		class of stock shall be deemed a distribution by the Company to the holders of
		its Common Stock of such shares of such other class of stock within the meaning
		of this Section 8(f) and, if the outstanding shares of Common Stock shall be
		changed into a larger or smaller number of shares of Common Stock as a part of
		such reclassification, such change shall be deemed a subdivision or
		combination, as the case may be, of the outstanding shares of Common Stock
		within the meaning of Section 8(e).
	 

	 
		 
	 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
	 

	 

	 
		(g) Common Stock Reserved. The Company shall at all times reserve and keep
		available out of its authorized but unissued Common Stock, solely for issuance
		upon the conversion of the Promissory Notes, such number of shares of Common
		Stock as shall from time to time be issuable upon the conversion of all the
		Promissory Notes at the time outstanding.
	 

	 
		9. Other Provisions Applicable to
		Adjustments. The following provisions
		shall be applicable to the making of adjustments of the number of shares of
		Common Stock into which this Note is convertible and the current Conversion
		Rate provided for in Section 8: 
	 

	 
		(a) When Adjustments to Be Made. The adjustments required by Section 8 shall be made
		whenever and as often as any specified event requiring an adjustment shall
		occur, except that any adjustment to the Conversion Rate that would otherwise
		be required may be postponed (except in the case of a subdivision or
		combination of shares of the Common Stock, as provided for in Section 8(e)) up
		to, but not beyond the Conversion Date if such adjustment either by itself or
		with other adjustments not previously made adds or subtracts less than 1% of
		the shares of Common Stock into which this Note is convertible immediately
		prior to the making of such adjustment. Any adjustment representing a change of
		less than such minimum amount (except as aforesaid) which is postponed shall be
		carried forward and made as soon as such adjustment, together with other
		adjustments required by Section 8 and not previously made, would result in a
		minimum adjustment or on the Conversion Date. For the purpose of any
		adjustment, any specified event shall be deemed to have occurred at the close
		of business on the date of its occurrence. 
	 

	 
		(b) Fractional Interests. In computing adjustments under Section 8, fractional
		interests in Common Stock shall be taken into account to the nearest 1/100th of
		a share.
	 

	 
		(c) When Adjustment Not Required. If the Company undertakes a transaction contemplated
		under Section 8(f) and as a result takes a record of the holders of its Common
		Stock for the purpose of entitling them to receive a dividend or distribution
		or subscription or purchase rights or other benefits contemplated under Section
		8(f) and shall, thereafter and before the distribution to stockholders thereof,
		legally abandon its plan to pay or deliver such dividend, distribution,
		subscription or purchase rights or other benefits contemplated under Section
		8(f), then thereafter no adjustment shall be required by reason of the taking
		of such record and any such adjustment previously made in respect thereof shall
		be rescinded and annulled.
	 

	 
		(d) Escrow of Stock.
		If after any property becomes distributable pursuant to Section 8 by reason of
		the taking of any record of the holders of Common Stock, but prior to the
		occurrence of the event for which such record is taken, a holder of this Note
		converts this Note during such period, the holder of this Note shall continue
		to be entitled to receive any shares of Common Stock issuable upon conversion
		under Section 8 by reason of such adjustment (as if this Note were not yet
		converted) and such shares or other property shall be held in escrow for the
		holder of this Note by the Company to be issued to holder of this Note upon and
		to the extent that the event actually takes place. Notwithstanding any other
		provision to the contrary herein, if the event for which such record was taken
		fails to occur or is rescinded, then such escrowed shares shall be canceled by
		the Company and escrowed property returned to the Company.
	 

	 
		 
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
	 

	 

	 
		10. Replacement.
		Upon receipt of a duly executed, notarized and unsecured written statement from
		the Payee with respect to the loss, theft or destruction of this Note (or any
		replacement hereof), and, if requested by the Company, an indemnity bond
		customary in the industry, or, in the case of a mutilation of this Note, upon
		surrender and cancellation of such Note, the Company shall issue a new Note, of
		like tenor and amount, in lieu of such lost, stolen, destroyed or mutilated
		Note.
	 

	 
		11. Parties in Interest, Transferability. This Note shall be binding upon the Company and its
		successors and permitted assigns and the terms hereof shall inure to the
		benefit of the Payee and its successors and assigns. This Note may be
		transferred or sold, subject to the provisions of Section 19 of this Note, or
		pledged, hypothecated or otherwise granted as security by the Payee.
	 

	 
		12. Amendments. This
		Note may not be modified or amended in any manner except in writing executed by
		the Company and the Payee.
	 

	 
		13. Notices. Any
		notice, demand, request, waiver or other communication required or permitted to
		be given hereunder shall be in writing and shall be effective (a) upon hand
		delivery by telecopy or facsimile at the address or number designated below (if
		delivered on a Business Day during normal business hours where such notice is
		to be received), or the first Business Day following such delivery (if
		delivered other than on a Business Day during normal business hours where such
		notice is to be received) or (b) on the second Business Day following the date
		of mailing by express courier service, fully prepaid, addressed to such
		address, or upon actual receipt of such mailing, whichever shall first occur.
		The Company will give written notice to the Payee at least twenty (20) days
		prior to the date on which dissolution, liquidation or winding-up will take
		place and in no event shall such notice be provided to the Payee prior to such
		information being made known to the public. Notices to the Payee shall be made
		to the address set forth in the Purchase Agreement. Notices to the Company
		shall be made to the following:
	 

	 
		 
	 

	 
			
				
				  Address of the Company:
				

			 	
				
				   
				

			 	
				
				  AXS-One Inc.

				  301 Route 17 North 

				  Rutherford, New Jersey 07070 

				  Attention: Chief Financial Officer 

				  Facsimile No.: (201) 935-5230
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  with a copy to:
				

			 	
				
				   
				

			 	
				
				  Wiggin and Dana LLP 

				  400 Atlantic Street 

				  Stamford, Connecticut 06901 

				  Attention: Michael Grundei

				  Facsimile No.: (203) 363-7676
				

			 

 

	 
		14. Governing Law.
		This Note shall be governed by and construed in accordance with the internal
		laws of the State of New York, without giving effect to the choice of 
	 

	 
		 
	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
	 

	 

	 
		law provisions. This Note shall not be
		interpreted or construed with any presumption against the party causing this
		Note to be drafted.
	 

	 
		15. Headings.
		Article and section headings in this Note are included herein for purposes of
		convenience of reference only and shall not constitute a part of this Note for
		any other purpose.
	 

	 
		16. 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, at law or in equity (including, without limitation,
		a decree of specific performance and/or other injunctive relief), no remedy
		contained herein shall be deemed a waiver of compliance with the provisions
		giving rise to such remedy and nothing herein shall limit a Payee’s right
		to pursue actual 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 and the like (and the computation thereof) shall be the amounts to be
		received by the Payee 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 and material harm to the Payee and that the remedy at law for
		any such breach may be inadequate. Therefore the Company agrees that, in the
		event of any such breach or threatened breach, the Payee shall be entitled, in
		addition to all other available rights and remedies, at law or in equity, to
		such equitable relief, including but not limited to an injunction restraining
		any such breach or threatened breach, without the necessity of showing economic
		loss and without any bond or other security being required.
	 

	 
		17. Failure or Indulgence Not Waiver. No failure or delay on the part of the Payee 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.
	 

	 
		18. Enforcement Expenses. The Company agrees to pay all costs and expenses of
		enforcement of this Note, including, without limitation, reasonable
		attorneys’ fees and expenses.
	 

	 
		19. Compliance with Securities Laws. The Payee of this Note acknowledges that this Note is
		being acquired solely for the Payee’s own account and not as a nominee for
		any other party, and for investment, and that the Payee shall not offer, sell
		or otherwise dispose of this Note other than in compliance with the laws of the
		United States of America and as guided by the rules of the Securities and
		Exchange Commission. This Note and any Note issued in substitution or
		replacement therefore shall be stamped or imprinted with legends, as
		applicable, in substantially the following form:
	 

	 
		“THIS NOTE AND THE RIGHTS PROVIDED
		HEREIN ARE SUBJECT IN ALL RESPECTS TO THE TERMS OF THE 
	 

	 
		 
	 

	 
		 
	 

	 
		10
	 

	 
		 
	 

	 
	 

	 

	 
		SUBORDINATION AGREEMENT OF EVEN DATE
		HEREWITH BETWEEN THE AGENT OF THE PAYEE AND SILICON VALLEY BANK.
	 

	 
		THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
		SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
		STATE SECURITIES LAW AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
		UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE
		SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT
		REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
		PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.”
	 

	 
		20. Severability.
		The provisions of this Note are severable, and if any provision shall be held
		invalid or unenforceable in whole or in part in any jurisdiction, then such
		invalidity or unenforceability shall not in any manner affect such provision in
		any other jurisdiction or any other provision of this Note in any
		jurisdiction.
	 

	 
		21. Consent to Jurisdiction. Each of the Company and the Payee (i) hereby
		irrevocably submits to the jurisdiction of the United States District Court
		sitting in the Southern District of New York and the courts of the State of New
		York located in New York county for the purposes of any suit, action or
		proceeding arising out of or relating to this Note and (ii) hereby waives, and
		agrees not to assert in any such suit, action or proceeding, any claim that it
		is not personally subject to the jurisdiction of such court, that the suit,
		action or proceeding is brought in an inconvenient forum or that the venue of
		the suit, action or proceeding is improper. Each of the Company and the Payee
		consents to process being served in any such suit, action or proceeding by
		mailing a copy thereof to such party at the address set forth in Section 13
		hereof and agrees that such service shall constitute good and sufficient
		service of process and notice thereof. Nothing in this Section 21 shall affect
		or limit any right to serve process in any other manner permitted by
		law.
	 

	 
		22. Company Waivers.
		
	 

	 
		(a) Except as otherwise specifically
		provided herein, the Company and all others that may become liable for all or
		any part of the obligations evidenced by this Note, hereby waive presentment,
		demand, notice of nonpayment, protest and all other demands and notices in
		connection with the delivery, acceptance, performance and enforcement of this
		Note, and do hereby consent to any number of renewals of extensions of the time
		or payment hereof and agree that any such renewals or extensions may be made
		without notice to any such persons and without affecting their liability herein
		and do further consent to the release of any person liable hereon, all without
		affecting the liability of the other persons, firms or Company liable for the
		payment of this Note, AND DO HEREBY WAIVE TRIAL BY JURY.
	 

	 
		 
	 

	 
		 
	 

	 
		11
	 

	 
		 
	 

	 
	 

	 

	 
		(b) No delay or omission on the part of the
		Payee in exercising its rights under this Note, or course of conduct relating
		hereto, shall operate as a waiver of such rights or any other right of the
		Payee, nor shall any waiver by the Payee of any such right or rights on any one
		occasion be deemed a waiver of the same right or rights on any future
		occasion.
	 

	 
		(c) THE COMPANY ACKNOWLEDGES THAT THE
		TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION, AND TO
		THE EXTENT ALLOWED BY APPLICABLE LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND
		HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE PAYEE OR ITS
		SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.
	 

	 
		[REMAINDER OF PAGE INTENTIONALLY LEFT
		BLANK]
	 

	 
		 
	 

	 
		 
	 

	 
		12
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the Company has executed and delivered this Promissory
		Note as of the date first written above.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  AXS-ONE INC.
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title: 
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		13
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A
	 

	 
		FORM OF CONVERSION NOTICE
	 

	 
		(To be executed by the registered holder in
		order to convert the Note)
	 

	 
		The undersigned hereby irrevocably elects to
		convert the Series B 6% Secured Convertible Promissory Note (the
		“Note”) of AXS-One Inc., a Delaware corporation (the
		“Company”), due May 29, 2009 held by the
		undersigned into shares of Common Stock, according to the terms and conditions
		of the Note and the conditions hereof, as of the date written below. The
		undersigned hereby requests that certificates for the shares of Common Stock to
		be issued to the undersigned pursuant to this Conversion Notice be issued in
		the name of, and delivered to, the undersigned or its designee as indicated
		below. If the shares of Common Stock are to be issued in the name of a person
		other than the undersigned, the undersigned will pay all transfer taxes payable
		with respect thereto. A copy of the Note being converted is attached hereto
		(and the original Note shall be transmitted to the Company pursuant to the
		terms thereof). All capitalized terms used in this Conversion Notice, but not
		otherwise defined herein shall have the meanings assigned in the Note.
	 

	 
		 
	 

	 
			
				
				   
				

			 
	
				
				  Date of Conversion (Date of
				  Notice)
				

			 
	
				
				   
				

			 
	
				
				  Principal Amount of Note to be
				  Converted
				

			 
	
				
				   
				

			 
	
				
				  Principal Amount of Note not to be
				  Converted (Principal Amount Remaining after Conversion)
				

			 
	
				
				   
				

			 
	
				
				  Amount of accumulated and unpaid
				  interest on principal amount of Note to be Converted
				

			 
	
				
				   
				

			 
	
				
				  Number of shares of Common Stock to
				  be Issued (including conversion of accrued but unpaid interest on Notes to be
				  Converted)
				

			 
	
				
				   
				

			 
	
				
				  Applicable Conversion Value
				

			 

 

	 
		Conversion Information:[NAME OF
		HOLDER]
	 

	 
		___________________________________
	 

	 
		Address of Holder:
	 

	 
		___________________________________ 
	 

	 
		___________________________________ 
	 

	 
		Issue Common Stock to (if different than
		above): 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Name:_______________________________ 
	 

	 
		Address:____________________________ 
	 

	 
		____________________________ 
	 

	 
		Tax ID #:_____________________
	 

	 
		 
	 

	 
			 	 
	
				
				  Name of Holder
				

			 	 

 

			
				
				  By: 
				

			 	
				
				

			 	
				
				   
				

			 
	
				
				  Name: 
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Title: 
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		15Void after May 29, 2014 
				

			 	
				
				  Warrant No. 2007-_______ 
				

			 

 

	 
		THIS SECURITY AND ANY SHARES ISSUED UPON
		THE EXERCISE OR CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE
		SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
		ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
		REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
		EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
		REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE
		SECURITIES LAWS OR BLUE SKY LAWS. 
	 

	 
		AXS-ONE INC.
	 

	 
		COMMON STOCK PURCHASE WARRANT
	 

	 
		AXS-One Inc. (the “Company”),
		having its principal office as of the date hereof at 301 Route 17 North,
		Rutherford, New Jersey 07070, hereby certifies that, for value received,
		_________________________________, ________________________ or registered
		assigns, is entitled, subject to the terms and conditions set forth below, to
		purchase from the Company at any time on or from time to time after May 29,
		2007 and before 5:00 P.M., New York City time, on May 29, 2014 (the
		“Expiration Date”), ____________ (____) fully paid and
		non-assessable shares of Common Stock (as defined below), at the initial
		Purchase Price per share (as defined below) of $0.01. The number of such shares
		of Common Stock and the Purchase Price per share are subject to adjustment as
		provided in Section 5.
	 

	 
		The Company agreed to issue warrants,
		including this Warrant, to purchase an aggregate of 2,000,000 shares of Common
		Stock (subject to adjustment as provided in Section 5) in connection with the
		issuance by the Company to the Holders of an aggregate original principal
		amount of $5,000,000 of Secured Convertible Promissory Notes, due May 29,
		2009.
	 

	 
		As used herein the following terms, unless
		the context otherwise requires, have the following respective meanings:
	 

	 
		“Aggregate Purchase Price” has the meaning set forth in Section 3.1.
	 

	 
		“AMEX” means
		the American Stock Exchange, Inc. 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		“Blue Sky Laws” means any state securities or “blue
		sky” laws. 
	 

	 
		“Board of Directors” means the board of directors of the
		Company.
	 

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

	 
		“Company”
		includes the Company and any corporation which shall succeed to or assume the
		obligations of the Company hereunder. The term “corporation” shall
		include an association, joint stock company, business trust, limited liability
		company or other similar organization.
	 

	 
		“Common Stock” means the Company’s Common Stock, $.01 par
		value per share, authorized as of the date hereof, and any stock of any class
		or classes (however designated) hereafter authorized upon reclassification
		thereof, which, if the Board of Directors declares any dividends or
		distributions, has the right to participate in the distribution of earnings and
		assets of the Company after the payment of dividends or other distributions on
		any shares of capital stock of the Company entitled to a preference and in the
		voting for the election of directors of the Company. 
	 

	 
		“Convertible Securities” means (i) options to purchase or rights to
		subscribe for Common Stock, (ii) securities by their terms convertible into or
		exchangeable for Common Stock or (iii) options to purchase or rights to
		subscribe for such convertible or exchangeable securities.
	 

	 
		“Exchange Act” means the Securities Exchange Act of 1934 as the
		same shall be in effect at the time.
	 

	 
		“Holder”
		means any record owner of Warrants or Underlying Securities.
	 

	 
		“Investor Rights Agreement” has the meaning set forth in Section 1.
	 

	 
		“Market Price” means with respect to any securities at any date
		(i) if the principal trading market for such securities is AMEX or another
		exchange, the average of the closing sale prices per share for the last ten
		previous trading days in which a sale was reported, as officially reported on
		any consolidated tape, (ii) if the principal market for such securities is the
		over-the-counter market, the average of the closing sale prices per share on
		the last ten previous trading days in which a sale was reported as set forth by
		the over the counter bulletin board or, (iii) if the security is not listed on
		another exchange or the over the counter bulletin board, the average of the
		closing sale prices per share on the last ten previous trading days in which a
		sale was reported as set forth in the National Quotation Bureau sheet listing
		such securities for such days. Notwithstanding the foregoing, if there is no
		reported closing sale price, as the case may be, reported on any of the ten
		trading days preceding the event requiring a determination of Market Price
		hereunder, then the Market Price shall be the average of the high bid and asked
		prices for the last ten previous trading days in which a sale was reported; and
		if there is no reported high bid and asked prices, as the case may be, reported
		on any of the ten trading days preceding the 
	 

	 
		 
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		event requiring a determination of Market
		Price hereunder, then the Market Price shall be determined in good faith by
		resolution of the Board of Directors.
	 

	 
		“Nasdaq”
		means the Nasdaq Capital Market or Nasdaq Global Market.
	 

	 
		“Notice” has
		the meaning set forth in Section 20.
	 

	 
		“Original Issue Date” means May 29, 2007.
	 

	 
		“Other Securities” refers to any stock (other than Common Stock) and
		other securities of the Company or any other Person (corporate or otherwise)
		which the Holders of the Warrants at any time shall be entitled to receive, or
		shall have received, upon the exercise of the Warrants, in lieu of or in
		addition to Common Stock, or which at any time shall be issuable or shall have
		been issued in exchange for or in replacement of Common Stock or Other
		Securities pursuant to Section 5 or 6.
	 

	 
		“Person”
		means any individual, sole proprietorship, partnership, corporation, limited
		liability company, business trust, unincorporated association, joint stock
		corporation, trust, joint venture or other entity, any university or similar
		institution, or any government or any agency or instrumentality or political
		subdivision thereof.
	 

	 
		“Purchase Agreement” means the Convertible Note and Warrant Purchase
		Agreement dated as of May 29, 2007, among the Company and the
		Purchasers.
	 

	 
		“Purchase Price per share” means $0.01 per share, as may be adjusted from
		time to time in accordance with Section 5 or 6.
	 

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

	 
		“registered”
		and “registration” refer to a registration effected by filing a
		registration statement in compliance with the Securities Act, to permit the
		disposition of Underlying Securities issued or issuable upon the exercise of
		Warrants, and any post-effective amendments and supplements filed or required
		to be filed to permit any such disposition.
	 

	 
		“Securities Act” means the Securities Act of 1933 as the same
		shall be in effect at the time.
	 

	 
		“Underlying Securities” means any Common Stock or Other Securities issued
		or issuable upon exercise of Warrants.
	 

	 
		“Warrant”
		means, as applicable, (i) the Warrants dated as of the date hereof, originally
		issued by the Company pursuant to the Purchase Agreement, of which this Warrant
		is one, evidencing rights to purchase up to an aggregate of 2,000,000 shares of
		Common Stock, and all Warrants issued upon transfer, division or combination
		of, or in substitution for, any thereof (all Warrants shall at all times be
		identical as to terms and conditions and date, except as to the number of
		shares of Common Stock for which they may be exercised) or (ii) each right as
		set 
	 

	 
		 
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
		forth in this Warrant to purchase one share
		of Common Stock, as adjusted from time to time in accordance with Section 5 or
		6.
	 

	 
		1. Registration.
		The Holder shall have the rights to registration of Underlying Securities
		issuable upon exercise of the Warrants that are set forth in the Investor
		Rights Agreement, dated the Original Issue Date, among the Company and each of
		the Purchasers (the “Investor
		Rights Agreement”).
	 

	 
		2. Sale Without Registration. If, at the time of any transfer or surrender for
		exchange of a Warrant or of Underlying Securities previously issued upon the
		exercise of Warrants, such Warrant or Underlying Securities shall not be
		registered under the Securities Act, the Company may require, as a condition of
		allowing such transfer or exchange, that the Holder or transferee of such
		Warrant or Underlying Securities, as the case may be, furnish to the Company an
		opinion of counsel, reasonably satisfactory to the Company, to the effect that
		such transfer or exchange may be made without registration under the Securities
		Act and without registration or qualification under any applicable Blue Sky
		Laws, provided that nothing contained in this Section 2 shall relieve (a) the
		Company from complying with the Investor Rights Agreement or (b) the Holder
		from its obligations under the Purchase Agreement. 
	 

	 
		3. Exercise of Warrant. 
	 

	 
		3.1. Exercise in Full. Subject to the provisions hereof, at any time
		following approval by the American Stock Exchange of an Additional Listing
		Application with respect to the shares of Common Stock into which this Warrant
		may be converted, this Warrant may be exercised in full by the Holder hereof by
		surrender of this Warrant, with the form of subscription at the end hereof duly
		executed by such Holder, to the Company at its principal office set forth at
		the head of this Warrant (or such other location as the Company from time to
		time may advise the Holder in writing), accompanied by payment, in cash or by
		certified or official bank check payable to the order of the Company, in the
		amount obtained (the “Aggregate
		Purchase Price”) by multiplying
		(a) the number of shares of Common Stock then issuable upon exercise of this
		Warrant by (b) the Purchase Price per share on the date of such
		exercise.
	 

	 
		3.2. Partial Exercise. Subject to the provisions hereof, at any time
		following approval by the American Stock Exchange of an Additional Listing
		Application with respect to the shares of Common Stock into which this Warrant
		may be converted, this Warrant may be exercised in part by surrender of this
		Warrant in the manner and at the place provided in Section 3.1 except that the
		amount payable by the Holder upon any partial exercise shall be the amount
		obtained by multiplying (a) the number of shares of Common Stock designated by
		the Holder in the subscription at the end hereof by (b) the Purchase Price per
		share on the date of such exercise. Upon any such partial exercise, the Company
		at its expense shall forthwith issue and deliver to or upon the order of the
		Holder hereof a new Warrant or Warrants of like tenor, in the name of the
		Holder hereof or as such Holder (upon payment by such Holder of any applicable
		transfer taxes and subject to the provisions of Section 2) may request, calling
		in the aggregate on the face or faces thereof for the number of shares of
		Common Stock equal 
	 

	 
		 
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
	 

	 

	 
		to the number of such shares issuable prior
		to such partial exercise of this Warrant minus the number of such shares
		designated by the Holder in the subscription at the end hereof.
	 

	 
		3.3. Company to Reaffirm Obligations. The Company shall, at the time of any exercise of this
		Warrant, upon the request of the Holder hereof, acknowledge in writing its
		continuing obligation to afford to such Holder any rights (including, without
		limitation, any right to registration of the Underlying Securities, if any) to
		which such Holder shall continue to be entitled after such exercise in
		accordance with the provisions of this Warrant; provided,
		however, that if the Holder of this Warrant shall fail to make any such
		request, such failure shall not affect the continuing obligation of the Company
		to afford such Holder any such rights.
	 

	 
		3.4. Certain Exercises. If an exercise of this Warrant is to be made in
		connection with a registered public offering or sale of the Company, such
		exercise may, at the election of the Holder, be conditioned on the consummation
		of the public offering or sale of the Company, in which case such exercise
		shall not be deemed effective until the consummation of such
		transaction.
	 

	 
		3.5. Conversion Right. At any time following (i) approval by the American
		Stock Exchange of an Additional Listing Application with respect to the shares
		of Common Stock into which this Warrant may be converted and (ii) the first
		anniversary of the date of original issuance of this Warrant that a
		registration statement as contemplated by the Investor Rights Agreement is not
		effective with respect to the resale of the Common Stock issuable upon exercise
		of this Warrant, then in lieu of exercising this Warrant at such time as
		specified in Section 3.1 and Section 3.2, the Holder may convert this Warrant,
		in whole or in part, into the number of shares of Common Stock determined by
		dividing (a) the aggregate fair market value of the Common Stock or the Other
		Securities issuable upon exercise of this Warrant minus the Aggregate Purchase
		Price of such shares by (b) the current Market Price. Such conversion shall be
		effected by surrender of this Warrant, with the form of subscription at the end
		hereof duly executed by such Holder, to the Company at its principal office set
		forth at the head of this Warrant (or such other location as the Company from
		time to time may advise the Holder in writing).
	 

	 
		4. Delivery of Stock Certificates on
		Exercise. As soon as practicable after
		the exercise of this Warrant in full or in part, and in any event within three
		Business Days thereafter, the Company at its own expense (including the payment
		by it of any applicable issue taxes) shall cause to be issued in the name of
		and delivered to the Holder hereof, or as such Holder (upon payment by such
		Holder of any applicable transfer taxes and subject to the provisions of
		Section 2) may direct, a certificate or certificates for the number of fully
		paid and non-assessable shares of Common Stock or Other Securities to which
		such Holder shall be entitled upon such exercise, plus, in lieu of any
		fractional share to which such Holder would otherwise be entitled, cash equal
		to such fraction multiplied by the then current Market Price of one full
		share.
	 

	 
		5. Adjustment for Dividends.
	 

	 
		 
	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
	 

	 

	 
		(a) In case at any time or from time to time
		after the Original Issue Date, the Company shall at any time declare or pay a
		dividend upon its Common Stock payable in shares of Common Stock, the number of
		shares of Common Stock acquirable upon exercise hereof shall be increased by
		the number of shares that would have been issued pursuant to such dividend with
		respect to the shares acquirable hereunder as of the record date for such
		dividend.
	 

	 
		(b) If the number of shares of Common Stock
		outstanding at any time after the Original Issue Date is decreased by a
		combination or reverse stock split of the outstanding shares of Common Stock,
		the Purchase Price per share shall be increased in proportion to such decrease.
		If the number of shares of Common Stock outstanding at any time after the
		Original Issue Date is increased by a forward stock split of the outstanding
		shares of Common Stock or otherwise, the number of shares of Common Stock
		acquirable upon exercise hereof shall be increased by the number of shares that
		would have been issued had this Warrant been fully exercised as of the date of
		such forward stock split or other transaction resulting in an increase in the
		outstanding shares of Common Stock.
	 

	 
		(c) Upon each adjustment to the Purchase
		Price per share, the Holder of this Warrant shall thereafter be entitled to
		purchase, at the Purchase Price per share resulting from such adjustment, the
		number of shares of Common Stock obtained by multiplying the Purchase Price per
		share in effect immediately prior to such adjustment by the number of shares of
		Common Stock purchasable pursuant hereto immediately prior to such adjustment,
		and dividing the product thereof by the Purchase Price per share resulting from
		such adjustment.
	 

	 
		6. Reorganization, Consolidation, Merger. In case the Company after the Original Issue Date
		shall (a) effect a reorganization, (b) consolidate with or merge into any other
		Person, or (c) transfer all or substantially all of its properties or assets to
		any other Person under any plan or arrangement contemplating the dissolution of
		the Company, then, in each such case, the Holder of this Warrant, upon the
		exercise hereof as provided in Section 3 at any time after the consummation of
		such reorganization, consolidation or merger or the effective date of such
		dissolution, as the case may be, shall be entitled to receive (and the Company
		or its successors or assigns shall be entitled to deliver), in lieu of the
		Underlying Securities issuable upon such exercise prior to such consummation or
		such effective date, the stock and other securities and property (including
		cash) to which such Holder would have been entitled upon such consummation or
		in connection with such dissolution, as the case may be, if such Holder had so
		exercised this Warrant immediately prior thereto. Upon receipt of such stock
		and other securities and property (including cash), if any, the rights of the
		Holder under this Warrant shall terminate and cease and this Warrant shall
		expire and be of no force and effect. In any such case, the Company (or its
		successors or assigns) shall be entitled to make appropriate adjustments in the
		application of the provisions of this Warrant with respect to the rights and
		interests of the Holder after such reorganization, merger, consolidation or
		dissolution. The Company shall not effect any such reorganization,
		consolidation, merger or dissolution, unless prior to or simultaneously with
		the consummation thereof, the successor corporation resulting from such
		consolidation or merger or the corporation purchasing such assets shall confirm
		or assume, by written instrument, the obligation to deliver to each Holder the
		shares of stock, cash, other securities or assets to 
	 

	 
		 
	 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
	 

	 

	 
		which, in accordance with the foregoing
		provisions, each Holder may be entitled to and all other obligations of the
		Company under this Warrant. 
	 

	 
		7. Further Assurances; Reports. The Company shall take all such action as may be
		necessary or appropriate in order that the Company may validly and legally
		issue fully paid and non-assessable shares of Underlying Securities upon the
		exercise of all Warrants from time to time outstanding. For so long as the
		Holder holds this Warrant, the Company shall deliver to the Holder
		contemporaneously with delivery to the holders of Common Stock, a copy of each
		report of the Company delivered to such holders.
	 

	 
		8. Certificate as to Adjustments. In each case of any adjustment or readjustment in the
		Underlying Securities, the Company shall, at its expense, promptly cause its
		Chief Financial Officer to compute such adjustment or readjustment in
		accordance with the terms of this Warrant and prepare a certificate setting
		forth such adjustment or readjustment and showing in detail the facts upon
		which such adjustment or readjustment is based, and the number of shares of
		Common Stock or Other Securities outstanding or deemed to be outstanding. The
		Company shall forthwith mail a copy of each such certificate to the
		Holder.
	 

	 
		9. Notices of Record Date. In the event of:
	 

	 
		(a) any taking by the Company of a record of
		its stockholders for the purpose of determining the stockholders thereof who
		are entitled to receive any dividend or other distribution (other than a
		quarterly dividend payable solely in cash), or any right to subscribe for,
		purchase or otherwise acquire any shares of stock of any class or any other
		securities or property, or to receive any other right, or for the purpose of
		determining stockholders who are entitled to vote in connection with any
		proposed capital reorganization of the Company, any reclassification or
		recapitalization of the capital stock of the Company or any transfer of all or
		substantially all the assets of the Company to or consolidation or merger of
		the Company with or into any other Person, or
	 

	 
		(b) any voluntary or involuntary
		dissolution, liquidation or winding-up of the Company,
	 

	 
		then and in each such event the Company
		shall mail or cause to be mailed to each Holder of a Warrant a notice
		specifying (i) the date on which any such record is to be taken for the purpose
		of such dividend, distribution or right, and stating the amount and character
		of such dividend, distribution or right and (ii) the date on which any such
		reorganization, reclassification, recapitalization, transfer, consolidation,
		merger, dissolution, liquidation or winding-up is to take place, and the time,
		if any, as of which the Holders of record of Underlying Securities shall be
		entitled to exchange their shares of Underlying Securities for securities or
		other property deliverable upon such reorganization, reclassification,
		recapitalization, transfer, consolidation, merger, dissolution, liquidation or
		winding-up. Such notice shall be mailed at least 20 days prior to the date
		therein specified.
	 

	 
		 
	 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
	 

	 

	 
		10. Reservation of Stock Issuable on Exercise of
		Warrants. The Company shall at all
		times reserve and keep available, solely for issuance and delivery upon the
		exercise of the Warrants, all shares of Common Stock (or Other Securities) from
		time to time issuable upon the exercise of the Warrants.
	 

	 
		11. 
		Listing on Securities Exchanges; Registration; Issuance of Certain
		Securities. In furtherance and not in
		limitation of any other provision of this Warrant, if the Company at any time
		shall list any Common Stock (or Other Securities) on any national securities
		exchange or Nasdaq, the Company shall, at its expense, simultaneously list the
		Underlying Securities from time to time issuable upon the exercise of the
		Warrants on such exchange or Nasdaq, upon official notice of issuance.
	 

	 
		12. Exchange of Warrants. Subject to the provisions of Section 2, upon surrender
		for exchange of this Warrant, properly endorsed, to the Company, as soon as
		practicable (and in any event within three Business Days) the Company at its
		own expense shall issue and deliver to or upon the order of the Holder thereof
		a new Warrant or Warrants of like tenor, in the name of such Holder or as such
		Holder (upon payment by such Holder of any applicable transfer taxes) may
		direct, calling in the aggregate on the face or faces thereof for the number of
		shares of Common Stock called for on the face of this Warrant so
		surrendered.
	 

	 
		13. Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to
		the Company of the loss, theft, destruction or mutilation of this Warrant and,
		in the case of any such loss, theft or destruction, upon delivery of an
		indemnity agreement or other collateral reasonably satisfactory in form and
		amount to the Company and its transfer agent or, in the case of any such
		mutilation, upon surrender and cancellation of this Warrant, the Company at its
		expense shall execute and deliver, in lieu thereof, a new Warrant of like
		tenor.
	 

	 
		14. Warrant Agent.
		The Company may, by written notice to each Holder of a Warrant, appoint an
		agent having an office in New York, New York, for the purpose of issuing Common
		Stock (or Other Securities) upon the exercise of the Warrants pursuant to
		Section 3, exchanging Warrants pursuant to Section 12, and replacing Warrants
		pursuant to Section 13, or any of the foregoing, and thereafter any such
		issuance, exchange or replacement, as the case may be, shall be made at such
		office by such agent.
	 

	 
		15. Remedies; Enforcement Expenses. The Company stipulates that the remedies at law of the
		Holder of this Warrant in the event of any default or threatened default by the
		Company in the performance of or compliance with any of the terms of this
		Warrant may not be adequate, and that such terms may be specifically enforced
		by a decree for the specific performance of any agreement contained herein or
		by an injunction that may be sought against a violation of any of the terms
		hereof or otherwise. The Company agrees to pay all costs and expenses of
		enforcement of this Warrant in the event of any default or threatened default
		by the Company in the performance of or compliance with any of the terms of
		this Warrant, including, without limitation, reasonable attorneys’ fees
		and expenses.
	 

	 
		16. No Rights as Stockholder. This Warrant does not entitle the Holder hereof to any
		voting rights or other rights as a stockholder of the Company prior to the
		exercise hereof. 
	 

	 
		 
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
	 

	 

	 
		17. Negotiability.
		Subject to Section 2, this Warrant is issued upon the following terms, to all
		of which each Holder or owner hereof by the taking hereof consents and agrees
		that:
	 

	 
		(a) subject to the provisions of this
		Warrant and the Purchase Agreement, title to this Warrant may be transferred by
		endorsement (by the Holder hereof executing the form of assignment at the end
		hereof); and
	 

	 
		(b) until this Warrant is transferred on the
		books of the Company, the Company may treat the registered Holder hereof as the
		absolute owner hereof for all purposes, notwithstanding any notice to the
		contrary.
	 

	 
		18. Governing Law; Jurisdiction. This Warrant shall be governed by and construed in
		accordance with the laws of the State of New York without regard to principles
		of conflicts of law. Each of the Holder and the Company hereby irrevocably
		consents and submits to the jurisdiction of any New York State or United States
		Federal Court sitting in the State of New York, County of New York, over any
		action or proceeding arising out of or relating to this Warrant and irrevocably
		consents to the service of any and all process in any such action or proceeding
		in the manner for the giving of notices at its address specified in Section 20.
		Each of the Holder and the Company further waives any objection to venue in the
		State of New York, County of New York and any objection to an action or
		proceeding in such state and county on the basis of forum non conveniens. Each of the Holder and the Company also waives any
		right to trial by jury.
	 

	 
		19. Headings. The
		headings of the sections of this Warrant are for convenience and shall not by
		themselves determine the interpretation of this Warrant.
	 

	 
		20. Notices. Any
		notice or other communication required or permitted to be given hereunder (each
		a “Notice”) shall be given in writing and shall be made by
		personal delivery or sent by courier or certified or registered first-class
		mail (postage pre-paid), addressed to a party at its address shown below or at
		such other address as such party may designate by three days’ advance
		Notice to the other party.
	 

	 
		Any Notice to the Holder shall be sent to
		the address for such Holder set forth on books and records of the
		Company.
	 

	 
		Any Notice to the Company shall be sent
		to:
	 

	 
		AXS-One Inc.
	 

	 
		301 Route 17 North
	 

	 
		Rutherford, New Jersey 07070
	 

	 
		Attention: Chief Financial Officer
	 

	 
		Each Notice shall be deemed given and
		effective upon receipt (or refusal of receipt).
	 

	 
		 
	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
	 

	 

	 
		21. Severability.
		Whenever possible, each provision of this Warrant shall be interpreted in such
		a manner as to be effective and valid under applicable law, but if any
		provision of this Warrant shall be deemed prohibited or invalid under such
		applicable law, such provision shall be ineffective to the extent of such
		prohibition or invalidity, and such prohibition or invalidity shall not
		invalidate the remainder of such provision or any other provision of this
		Warrant.
	 

	 
		22. Amendments and Waivers. Any provision of this Warrant may be amended and the
		observance of any provision of this Warrant may be waived (either generally or
		in a particular instance and either retroactively or prospectively), only with
		the written consent of the Company and the Holder of the Warrant.
	 

	 
		23. Construction.
		Words (including capitalized terms defined herein) in the singular shall be
		held to include the plural and vice versa as the context requires. The words
		“herein”, “hereinafter”, “hereunder”
		and words of similar import used in this Warrant shall, unless otherwise
		stated, refer to this Warrant as a whole and not to any particular provision of
		this Warrant. All references to “$” in this Warrant and the other
		agreements contemplated hereby shall refer to United States dollars (unless
		otherwise specified expressly). Any reference to any gender includes the other
		genders.
	 

	 
		[signature page follows]
	 

	 
		 
	 

	 
		 
	 

	 
		10
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the Company has caused
		this Warrant to be signed by its duly authorized officer as of __________ __,
		2007.
	 

	 
		 
	 

	 
			 	 	
				
				  AXS-ONE INC.
				

			 
	
				
				   
				

			 	
				
				   
				

			 	  
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Attest:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
					

 

	 
		 
	 

	 
		 
	 

	 
		11
	 

	 
		 
	 

	 
	 

	 

	 
		FORM OF SUBSCRIPTION
	 

	 
		(To be signed only upon exercise of
		Warrant)
	 

	 
		To: AXS-ONE INC.
	 

	 
		The undersigned, the Holder of the within
		Warrant, hereby irrevocably elects to exercise the purchase right represented
		by such Warrant for, and to purchase thereunder,
		     * shares of Common Stock of AXS-One Inc., and
		herewith makes payment of $__________ and requests that the certificates for
		such shares be issued in the name of, and delivered to, ___________________,
		whose address is _______________________.
	 

	 
		The undersigned, the Holder of the within
		Warrant, hereby irrevocably elects to convert the attached Warrant into shares
		in the manner specified in such Warrant. This conversion is exercised with
		respect to _______ of the shares covered by such Warrant.
	 

	 
		[Strike paragraph above that does not
		apply.]
	 

	 
		The undersigned represents that the
		undersigned is acquiring such securities for its own account for investment and
		not with a view to or for sale in connection with any distribution thereof
		(except for any resale pursuant to, and in accordance with a valid registration
		statement effective under the Securities Act of 1933).
	 

	 
		Dated: 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Signature must conform in all
				  respects to the name of the Holder as specified on the face of the
				  Warrant)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				             (Address)
				

			 

 

	 
			
				
				  *
				

			 	
				
				  Insert here the number of shares
				  called for on the face of the Warrant (or, in the case of a partial exercise,
				  the portion thereof as to which the Warrant is being exercised).
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		12
	 

	 
		 
	 

	 
	 

	 

	 
		FORM OF ASSIGNMENT
	 

	 
		(To be signed by the Holder only upon
		transfer of Warrant)
	 

	 
		For value received, the undersigned hereby
		sells, assigns and transfers unto _________________________ the right
		represented by the within Warrant to purchase _________ shares of Common Stock
		of AXS-One Inc. to which the within Warrant relates, and hereby does
		irrevocably constitute and appoint ______________________________ Attorney to
		transfer such right on the books of AXS-One Inc. with full power of
		substitution in the premises. The Warrant being transferred hereby is one of
		the Warrants issued by AXS-One Inc. as of May 29, 2007 to purchase an aggregate
		of 2,000,000 shares of Common Stock.
	 

	 
		Dated: _______________
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Signature must conform in all
				  respects to name of Holder as specified on the face of the Warrant)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				             (Address)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Signature guaranteed by a bank or
				  trust company having its principal office in New York City or by a Member Firm
				  of the New York Stock Exchange or American Stock Exchange
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]