Document:

Unassociated Document

    

      EXHIBIT
4.1

      

      Warrant
Certificate No. __

      

      NEITHER
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE UPON
THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH
SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN
EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF
COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE
SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED,
ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
LAWS.

      

      
        	
                Effective
      Date: _________, 2009

              	
                Void
      After: __________, 2012

              

      

      

      LA
CORTEZ ENERGY, INC.

      

      WARRANT
TO PURCHASE COMMON STOCK

      

      La Cortez
Energy, Inc., a Nevada corporation (the “Company”), for value received
on __________, 2009 (the “Effective Date”), hereby
issues to _________ (the “Holder”) this Warrant (the
“Warrant”) to purchase,
______________ (________) shares (each such share as from time to time adjusted
as hereinafter provided being a “Warrant Share” and all such
shares being the “Warrant
Shares”) of the Company’s Common Stock (as defined below), at the
Exercise Price (as defined below), as adjusted from time to time as provided
herein, on or before ___________, 2012 (the “Expiration Date”), all subject
to the following terms and conditions. Unless otherwise defined in this Warrant,
terms appearing in initial capitalized form shall have the meaning ascribed to
them in that certain Subscription Agreement between the Company and the
purchaser signatory thereto pursuant to which this Warrant was issued (the
“Subscription
Agreement”).  This Warrant is one of a series of Warrants
issued in accordance with the terms of the Offering (collectively, the “Warrants”) to the Holder and
additional investors (collectively, the “Holders”).

      

      As used
in this Warrant, (i) “Business
Day” means any day other than Saturday, Sunday or any other day on which
commercial banks in the City of New York, New York, are authorized or required
by law or executive order to close; (ii) “Common Stock” means the common
stock of the Company, par value $0.001 per share, including any securities
issued or issuable with respect thereto or into which or for which such shares
may be exchanged for, or converted into, pursuant to any stock dividend, stock
split, stock combination, recapitalization, reclassification, reorganization or
other similar event; (iii) “Exercise Price” means $3.00
per share of Common Stock, subject to adjustment as provided herein; (iv) “Trading Day” means any day on
which the
Common Stock is traded on the primary national or regional stock exchange on
which the Common Stock is listed, or if not so listed, the OTC Bulletin Board,
if quoted thereon, is open for the transaction of business; and (v) “Affiliate” means any person
that, directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, a person, as such terms are used
and construed in Rule 144 promulgated under the Securities Act of 1933, as
amended (the “Securities
Act”).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                1.

              	
                DURATION
      AND EXERCISE OF WARRANTS

              

      

      

      (a)           Exercise
Period.  The Holder may exercise this Warrant in whole or in
part on any Business Day on or before 5:00 P.M., Eastern Time, on the Expiration
Date, at which time this Warrant shall become void and of no value.

      

      
        	
                 
      

              	
                (b)

              	
                Exercise
      Procedures.

              

      

      

      (i)           While
this Warrant remains outstanding and exercisable in accordance with Section
1(a), in addition to the manner set forth in Section 1(b)(ii) below, the Holder
may exercise this Warrant in whole or in part at any time and from time to time
by:

      

      (A)           delivery
to the Company of a duly completed and executed copy of the notice of exercise
attached as Exhibit A
(the “Notice of
Exercise”);

      

      (B)           surrender
of this Warrant to the Secretary of the Company at its principal offices or at
such other office or agency as the Company may specify in writing to the Holder;
and

      

      (C)           payment
of the then-applicable Exercise Price per share multiplied by the number of
Warrant Shares being purchased upon exercise of the Warrant (such amount, the
“Aggregate Exercise
Price”) made in the form of cash, or by certified check, wire transfer,
bank draft or money order payable in lawful money of the United States of
America or in the form of a Cashless Exercise to the extent permitted in Section
1(b)(ii) below.

      

      (ii)           While
this Warrant remains outstanding and exercisable in accordance with Section
1(a), if we default in honoring the Holder’s “piggyback” registration
rights (as defined in that certain Registration Rights Agreement of even date
herewith executed by the Holder in connection with the Offering, the
“Registration Rights Agreement”) with respect to the Warrant Shares at any time,
the Holder may, in its sole discretion, exercise all or any part of the Warrant
in a “cashless” or “net-issue” exercise (a “Cashless Exercise”) by
delivering to the Company (1) the Notice of Exercise and (2) the original
Warrant, pursuant to which the Holder shall surrender the right to receive upon
exercise of this Warrant, a number of Warrant Shares having a value (as
determined below) equal to the Aggregate Exercise Price, in which case, the
number of Warrant Shares to be issued to the Holder upon such exercise shall be
calculated using the following formula:

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

                                                                    X              =              Y * (A -
B)

                                                                                                             A

      

      
        	 	
                with:

              	
                X
      =             the
      number of Warrant Shares to be issued to the
  Holder

              

      

      

      
        	
                 

              	
                 

              	
                Y
      =

              	
                the
      number of Warrant Shares with respect to which the Warrant is being
      exercised

              

      

      

      
        	
                  

              	
                 

              	
                A
      =

              	
                the
      fair market value per share of Common Stock on the date of exercise of
      this Warrant

              

      

      

      
        	
                 
      

              	
                B
      =             the
      then-current Exercise Price of the
Warrant

              

      

      

      Solely
for the purposes of this paragraph, “fair market value” per share of Common
Stock shall mean (A) the average of the closing sales prices, as quoted on the
primary national or regional stock exchange on which the Common Stock is listed,
or, if not listed, the OTC Bulletin Board if quoted thereon, on the twenty (20)
trading days immediately preceding the date on which the Notice of Exercise is
deemed to have been sent to the Company, or (B) if the Common Stock is not
publicly traded as set forth above, as reasonably and in good faith determined
by the Board of Directors of the Company as of the date which the Notice of
Exercise is deemed to have been sent to the Company.

      

      Notwithstanding
the foregoing provisions of this Section 1(b)(ii), the Holder may not make a
Cashless Exercise if and to the extent that such exercise would require the
Company to issue a number of shares of Common Stock in excess of its authorized
but unissued shares of Common Stock, less all amounts of Common Stock that have
been reserved for issue upon the conversion of all outstanding securities
convertible into shares of Common Stock and the exercise of all outstanding
options, warrants and other rights exercisable for shares of Common
Stock.  If the Company does not have the requisite number of
authorized but unissued shares of Common Stock to permit the Holder to make a
Cashless Exercise, the Company shall use commercially reasonable efforts to
obtain the necessary stockholder consent to increase the authorized number of
shares of Common Stock to permit such Holder to make a Cashless Exercise
pursuant to this Section 1(b)(ii).

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      (iii)           Upon
the exercise of this Warrant in compliance with the provisions of this Section
1(b), and except as limited pursuant to the last paragraph of Section 1(b)(ii),
the Company shall promptly issue and cause to be delivered to the Holder a
certificate for the Warrant Shares purchased by the Holder.  Each
exercise of this Warrant shall be effective immediately prior to the close of
business on the date (the “Date
of Exercise”) that the conditions set forth in Section 1(b) have been
satisfied, as the case may be.  On the first Business Day following
the date on which the Company has received each of the Notice of Exercise and
the Aggregate Exercise Price (or notice of a Cashless Exercise in accordance
with Section 1(b)(ii)) (the “Exercise Delivery Documents”),
the Company shall transmit an acknowledgment of receipt of the Exercise Delivery
Documents to the Company’s transfer agent (the “Transfer Agent”). On or before
the fifth 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 Notice of Exercise, 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 Delivery Documents, 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 Section 1(a) and the number of Warrant Shares represented
by this Warrant submitted for exercise is greater than the actual number of
Warrant Shares being acquired upon such an exercise, then the
Company shall as soon as practicable and in no event later than five (5)
Business Days after any exercise and at its own expense, issue a new Warrant of
like tenor 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.

      

      (iv)           If
the Company shall fail for any reason or for no reason to issue to the Holder,
within five (5) Business Days of receipt of the Exercise Delivery Documents, a
certificate for the number of shares of Common Stock to which the Holder is
entitled and register such shares of Common Stock on the Company’s share
register or to credit the Holder’s balance account with DTC for such number of
shares of Common Stock to which the Holder is entitled upon the Holder’s
exercise of this Warrant, and if on or after such Business 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 five (5) 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 closing bid price on the date of exercise.

      

      (c)           Partial
Exercise.  This Warrant shall be exercisable, either in its
entirety or, from time to time, for part only of the number of Warrant Shares
referenced by this Warrant. If this Warrant is exercised in part, the Company
shall issue, at its expense, a new Warrant, in substantially the form of this
Warrant, referencing such reduced number of Warrant Shares that remain subject
to this Warrant.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      (d)           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 15.

      

      
        	
                2.

              	
                ISSUANCE
      OF WARRANT SHARES

              

      

      

      (a)           The
Company covenants that all Warrant Shares will, upon issuance in accordance with
the terms of this Warrant, be (i) duly authorized, fully paid and
non-assessable, and (ii) free from all liens, charges and security interests,
with the exception of claims arising through the acts or omissions of any Holder
and except as arising from applicable Federal and state securities
laws.

      

      (b)           The
Company shall register this Warrant upon records to be maintained by the Company
for that purpose in the name of the record holder of such Warrant from time to
time. The Company may deem and treat the registered Holder of this Warrant as
the absolute owner thereof for the purpose of any exercise thereof, any
distribution to the Holder thereof and for all other purposes.

      

      (c)           The
Company will not, by amendment of its articles of incorporation, by-laws or
through any reorganization, transfer of assets, consolidation, merger,
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 to be observed
or performed hereunder by the Company, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the
taking of all action necessary or appropriate in order to protect the
rights of the Holder to exercise this Warrant, or against impairment of such
rights.

      

      
        	
                3.

              	
                ADJUSTMENTS
      OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT
  SHARES

              

      

      

      (a)           The
Exercise Price and the number of shares purchasable upon the exercise of this
Warrant shall be subject to adjustment from time to time upon the occurrence of
certain events described in this Section 3(a); provided, that
notwithstanding the provisions of this Section 3, the Company shall not be
required to make any adjustment if and to the extent that such adjustment would
require the Company to issue a number of shares of Common Stock in excess of its
authorized but unissued shares of Common Stock, less all amounts of Common Stock
that have been reserved for issue upon the conversion of all outstanding
securities convertible into shares of Common Stock and the exercise of all
outstanding options, warrants and other rights exercisable for shares of Common
Stock.  If the Company does not have the requisite number of
authorized but unissued shares of Common Stock to make any adjustment, the
Company shall use its commercially reasonable efforts to obtain the necessary
stockholder consent to increase the authorized number of shares of Common Stock
to make such an adjustment pursuant to this Section 3(a).

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      (i)           Subdivision or Combination
of Stock. In case the Company shall at any time subdivide (whether by way
of stock dividend, stock split or otherwise) its outstanding shares of Common
Stock into a greater number of shares, the Exercise Price in effect immediately
prior to such subdivision shall be proportionately reduced and the number of
Warrant Shares shall be proportionately increased, and conversely, in case the
outstanding shares of Common Stock of the Company shall be
combined (whether by way of stock combination, reverse stock split or
otherwise) into a smaller number of shares, the Exercise Price in effect
immediately prior to such combination shall be proportionately increased and the
number of Warrant Shares shall be proportionately decreased.  The
Exercise Price and the Warrant Shares, as so adjusted, shall be readjusted in
the same manner upon the happening of any successive event or events described
in this Section 3(a)(i).

      

      (ii)           Dividends in Stock,
Property, Reclassification. If at any time,
or from time to time, the holders of Common Stock (or any shares of stock or
other securities at the time receivable upon the exercise of this Warrant) shall
have received or become entitled to receive, without payment
therefore:

      

      (A)           any
shares of stock or other securities that are at any time directly or indirectly
convertible into or exchangeable for Common Stock, or any rights or options to
subscribe for, purchase or otherwise acquire any of the foregoing by way of
dividend or other distribution, or

      

      (B)           additional
stock or other securities or property (including cash) by way of spin-off,
split-up, reclassification, combination of shares or similar corporate
rearrangement (other than shares of Common Stock issued as a stock split or
adjustments in respect of which shall be covered by the terms of Section 3(a)(i)
above),

      

      then and
in each such case, the Exercise Price and the number of Warrant Shares to be
obtained upon exercise of this Warrant shall be adjusted proportionately, and
the Holder hereof shall, upon the exercise of this Warrant, be entitled to
receive, in addition to the number of shares of Common Stock receivable
thereupon, and without payment of any additional consideration therefor, the
amount of stock and other securities and property (including cash in the cases
referred to above) that such Holder would hold on the date of such exercise had
such Holder been the holder of record of such Common Stock as of the date on
which holders of Common Stock received or became entitled to receive such shares
or all other additional stock and other securities and property.  The
Exercise Price and the Warrant Shares, as so adjusted, shall be readjusted in
the same manner upon the happening of any successive event or events described
in this Section 3(a)(ii).

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      (iii)           Reorganization,
Reclassification, Consolidation, Merger or Sale. If any recapitalization,
reclassification or reorganization of the capital stock of the Company, or any
consolidation or merger of the Company with another corporation, or the sale of
all or substantially all of its assets or other transaction shall be effected in
such a way that holders of Common Stock shall be entitled to receive stock,
securities or other assets or property (an “Organic Change”), then lawful
and adequate provisions shall be made by the Company whereby the Holder hereof
shall thereafter have the right to purchase and receive (in lieu of the shares
of the Common Stock of the Company immediately theretofore purchasable and
receivable upon the exercise of the rights represented by this Warrant) such
shares of stock, securities or other assets or property as may be issued or
payable with respect to or in exchange for a number of outstanding shares of
such Common Stock equal to the number of shares of such stock immediately
theretofore purchasable and receivable assuming the full exercise of the rights
represented by this Warrant. In the event of any Organic Change, appropriate
provision shall be made by the Company with respect to the rights and interests
of the Holder of this Warrant to the end that the provisions hereof (including,
without limitation, provisions for adjustments of the Exercise Price and of the
number of shares purchasable and receivable upon the exercise of this Warrant)
shall thereafter be applicable, in relation to any shares of stock, securities
or assets thereafter deliverable upon the exercise hereof. To the extent
necessary to effect the foregoing provisions, the successor corporation (if
other than the Company) resulting from such consolidation or merger or the
corporation purchasing such assets shall assume by written instrument reasonably
satisfactory in form and substance to the Holder executed and mailed or
delivered to the registered Holder hereof at the last address of such Holder
appearing on the books of the Company, the obligation to deliver to such Holder
such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such Holder may be entitled to purchase. If there is an Organic
Change, then the Company shall cause to be mailed to the Holder at its last
address as it shall appear on the books and records of the Company, at least 10
calendar days before the effective date of the Organic Change, a notice stating
the date on which such Organic Change is expected to become effective or close,
and the date as of which it is expected that holders of the Common Stock of
record shall be entitled to exchange their shares for securities, cash, or other
property delivered upon such Organic Change; provided, that the
failure to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to be specified
in such notice.  The Holder is entitled to exercise this Warrant
during the 10-day period commencing on the date of such notice to the effective
date of the event triggering such notice.  In any event, the successor
corporation (if other than the Company) resulting from such consolidation or
merger or the corporation purchasing such assets shall be deemed to assume
such obligation to deliver to such Holder such shares of stock, securities or
assets even in the absence of a written instrument assuming such obligation to
the extent such assumption occurs by operation of law.

      

      (b)           Certificate as to Adjustments.
Upon the occurrence of each adjustment or readjustment pursuant to this Section
3, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to each Holder of
this Warrant a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based.
The Company shall promptly furnish or cause to be furnished to such Holder a
like certificate setting forth: (i) such adjustments and readjustments; and (ii)
the number of shares and the amount, if any, of other property which at the time
would be received upon the exercise of the Warrant.

      

      (c)           Certain Events. If
any event occurs as to which the other provisions of this Section 3 are not
strictly applicable but the lack of any adjustment would not fairly protect the
purchase rights of the Holder under this Warrant in accordance with the basic
intent and principles of such provisions, or if strictly applicable would not
fairly protect the purchase rights of the Holder under this Warrant in
accordance with the basic intent and principles of such provisions, then the
Company's Board of Directors will, in good faith and subject to applicable law,
make an appropriate adjustment to protect the rights of the Holder; provided, that no
such adjustment pursuant to this Section 3(c) will increase the Exercise Price
or decrease the number of Warrant Shares as otherwise determined pursuant to
this Section 3.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      (d)           Adjustment of Exercise Price Upon
Issuance of Additional Shares of Common Stock.  In the event
the Company shall at any time prior to the Expiration Date issue Additional
Shares of Common Stock, as defined below, without consideration or for a
consideration per share less than the Exercise Price in effect immediately prior
to such issue, then the Exercise Price shall be reduced, concurrently with such
issue, to a price (calculated to the nearest cent) determined by multiplying
such Exercise Price by a fraction, (A) the numerator of which shall be (1) the
number of shares of Common Stock outstanding immediately prior to such issue
plus (2) the number of shares of Common Stock which the aggregate consideration
received or to be received by the Company for the total number of Additional
Shares of Common Stock so issued would purchase at such Exercise Price; and (B)
the denominator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issue plus the number of such Additional
Shares of Common Stock so issued; provided that, (i)
for the purpose of this Section 3(d), all shares of Common Stock issuable upon
conversion or exchange of convertible securities outstanding immediately prior
to such issue shall be deemed to be outstanding, and (ii) the number of shares
of Common Stock deemed issuable upon conversion or exchange of such outstanding
convertible securities shall be determined without giving effect to any
adjustments to the conversion or exchange price or conversion or exchange rate
of such convertible securities resulting from the issuance of Additional Shares
of Common Stock that is the subject of this calculation.  For purposes
of this Warrant, “Additional Shares of Common Stock” shall mean all shares of
Common Stock issued by the Company after the Effective Date (including without
limitation any shares of Common Stock issuable upon conversion or exchange of
any convertible securities or upon exercise of any option or warrant, on an
as-converted basis), other than: (i) shares of Common Stock issued or
issuable upon conversion or exchange of any convertible securities or exercise
of any options outstanding on the Effective Date; (ii) shares of Common Stock
issued or issuable upon conversion of the warrants issued in connection with the
Offering; (iii) shares of Common Stock issued or issuable by reason of a
dividend, stock split, split-up or other distribution on shares of Common Stock
that is covered by Sections 3(a)(i) through 3(a)(iii) above; (iv) shares of
Common Stock issued in a registered public offering under the Securities Act;
(v) shares of Common Stock issued or issuable pursuant to the acquisition of
another corporation by the Corporation by merger, purchase of substantially all
of the assets or other reorganization or to a joint venture agreement; or
(vi) shares of Common Stock issued or issuable to officers, directors and
employees of, or consultants to, the Company pursuant to stock grants, option
plans, purchase plans or other employee stock incentive programs or arrangements
approved by the Board of Directors, or upon exercise of options or warrants
granted to such parties pursuant to any such plan or
arrangement;.  The provisions of this Section 3(d) shall not operate
to increase the Exercise Price.

      

      
        	
                4.

              	
                TRANSFERS
      AND EXCHANGES OF WARRANT AND WARRANT
SHARES

              

      

      

      (a)           Registration of Transfers
and Exchanges. Subject to Section 4(c), upon the Holder’s surrender of
this Warrant, with a duly executed copy of the Form of Assignment attached as
Exhibit B, to the
Secretary of the Company at its principal offices or at such other office or
agency as the Company may specify in writing to the Holder, the Company shall
register the transfer of all or any portion of this Warrant. Upon such
registration of transfer, the Company shall issue a new Warrant, in
substantially the form of this Warrant, evidencing the acquisition rights
transferred to the transferee and a new Warrant, in similar form, evidencing the
remaining acquisition rights not transferred, to the Holder requesting the
transfer.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

      (b)           Warrant Exchangeable for
Different Denominations. The Holder may exchange this Warrant for a new
Warrant or Warrants, in substantially the form of this Warrant, evidencing in
the aggregate the right to purchase the number of Warrant Shares, which may then
be purchased hereunder, each of such new Warrants to be dated the date of such
exchange and to represent the right to purchase such number of Warrant Shares as
shall be designated by the Holder. The Holder shall surrender this Warrant with
duly executed instructions regarding such re-certification of this Warrant to
the Secretary of the Company at its principal offices or at such other office or
agency as the Company may specify in writing to the Holder.

      

      (c)           Restrictions on
Transfers. This Warrant may not be transferred at any time without (i)
registration under the Securities Act or (ii) an exemption from such
registration and a written opinion of legal counsel addressed to the Company
that the proposed transfer of the Warrant may be effected without registration
under the Securities Act, which opinion will be in form and from counsel
reasonably satisfactory to the Company.

      

      (d)           Permitted Transfers and
Assignments.  Notwithstanding any provision to the contrary in
this Section 4, the Holder may transfer, with or without consideration, this
Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s
Affiliates (as such term is defined under Rule 144 of the Securities Act)
without obtaining the opinion from counsel that may be required by Section
4(c)(ii), provided, that the
Holder delivers to the Company and its counsel certification, documentation, and
other assurances reasonably required by the Company’s counsel to enable the
Company’s counsel to render an opinion to the Company’s Transfer Agent that such
transfer does not violate applicable securities laws.

      

      
        	
                5.

              	
                MUTILATED
      OR MISSING WARRANT CERTIFICATE

              

      

      

      If this
Warrant is mutilated, lost, stolen or destroyed, upon request by the Holder, the
Company will, at its expense, issue, in exchange for and upon cancellation of
the mutilated Warrant, or in substitution for the lost, stolen or destroyed
Warrant, a new Warrant, in substantially the form of this Warrant, representing
the right to acquire the equivalent number of Warrant Shares; provided, that, as a
prerequisite to the issuance of a substitute Warrant, the Company may require
satisfactory evidence of loss, theft or destruction as well as an indemnity from
the Holder of a lost, stolen or destroyed Warrant.

      

      
        	
                6.

              	
                PAYMENT
      OF TAXES

              

      

      

      The
Company will pay all transfer and stock issuance taxes attributable to the
preparation, issuance and delivery of this Warrant and the Warrant Shares (and
replacement Warrants) including, without limitation, all documentary and stamp
taxes; provided, however, that the
Company shall not be required to pay any tax in respect of the transfer of this
Warrant, or the issuance or delivery of certificates for Warrant Shares or other
securities in respect of the Warrant Shares to any person or entity other than
to the Holder.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

      
        	
                7. 

              	
                FRACTIONAL
      WARRANT SHARES

              

      

      

      No
fractional Warrant Shares shall be issued upon exercise of this Warrant. The
Company, in lieu of issuing any fractional Warrant Share, shall round up the
number of Warrant Shares issuable to nearest whole share.

      

      
        	
                8.

              	
                NO
      STOCK RIGHTS AND LEGEND

              

      

      

      No holder
of this Warrant, as such, shall be entitled to vote or be deemed the holder of
any other securities of the Company that may at any time be issuable on the
exercise hereof, nor shall anything contained herein be construed to confer upon
the holder of this Warrant, as such, the rights of a stockholder of the Company
or the right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or give or withhold consent to any
corporate action or to receive notice of meetings or other actions affecting
stockholders (except as provided herein), or to receive dividends or
subscription rights or otherwise (except as provide herein).

      

      Each
certificate for Warrant Shares initially issued upon the exercise of this
Warrant, and each certificate for Warrant Shares issued to any subsequent
transferee of any such certificate, shall be stamped or otherwise imprinted with
a legend in substantially the following form:

      

                 “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS,
AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION
STATEMENT WITH  RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION
EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH
SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE
COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT OR   APPLICABLE STATE SECURITIES
LAWS.”

      

      
        	
                9.

              	
                REGISTRATION
      UNDER THE SECURITIES ACT OF 1933

              

      

      

      The Company agrees to provide
registration rights for the resale of the Warrant Shares under the Securities
Act on the terms and subject to the conditions set forth in the Registration
Rights Agreement between the Company and each of the investors party to the
subscription agreements substantially similar to the Subscription
Agreement, pursuant to which this Warrant was issued.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      
        	
                10. 

              	
                NOTICES

              

      

      

      All
notices, consents, waivers, and other communications under this Warrant must be
in writing and will be deemed given to a party when (a) delivered to the
appropriate address by hand or by nationally recognized overnight courier
service (costs prepaid); (b) sent by facsimile or e-mail with confirmation of
transmission by the transmitting equipment; (c) received or rejected by the
addressee, if sent by certified mail, return receipt requested, if to the
registered Holder hereof; or (d) seven days after the placement of the notice
into the mails (first class postage prepaid), to the Holder at the address,
facsimile number, or e-mail address furnished by the registered Holder to the
Company in accordance with the Subscription Agreement by and between the Company
and the Holder, or if to the Company, to it at Calle 67 #7-35 Oficina 409,
Bogotá, Colombia, Attention: Andres Gutierrez rivera, Chief Executive Officer
(or to such other address, facsimile number, or e-mail address as the Holder or
the Company as a party may designate by notice the other party) with a copy to
Gottbetter & Partners, 488 Madison Avenue, New York, New York 10022,
Attention: Adam S. Gottbetter.

      

      
        	
                11.

              	
                SEVERABILITY

              

      

      

      If a
court of competent jurisdiction holds any provision of this Warrant invalid or
unenforceable, the other provisions of this Warrant will remain in full force
and effect. Any provision of this Warrant held invalid or unenforceable only in
part or degree will remain in full force and effect to the extent not held
invalid or unenforceable.

      

      
        	
                12.

              	
                BINDING
      EFFECT

              

      

      

      This
Warrant shall be binding upon and inure to the sole and exclusive benefit of the
Company, its successors and assigns, the registered Holder or Holders from time
to time of this Warrant and the Warrant Shares.

      

      
        	
                13.

              	
                SURVIVAL
      OF RIGHTS AND DUTIES

              

      

      

      This
Warrant shall terminate and be of no further force and effect on the earlier of
5:00 P.M., Eastern Time, on the Expiration Date or the date on which this
Warrant has been exercised in full.

      

      
        	
                14.

              	
                GOVERNING
      LAW

              

      

      

      This
Warrant will be governed by and construed under the laws of the State of [New
York] without regard to conflicts of laws principles that would require the
application of any other law.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

      
        	
                15.

              	
                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 five (5)
Business Days of receipt of the Notice of Exercise 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 three Business Days of such disputed determination or
arithmetic calculation being submitted to the Holder, then the Company shall, at
its sole discretion, within five (5) 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 (10) Business Days from the time it receives the
disputed determinations or calculations; provided that, if such disputed
determination or arithmetic calculation being submitted by the Holder is
determined to be incorrect, then the expense of the investment bank or the
accountant shall be the responsibility of the Holder. Such investment bank’s or
accountant’s determination or calculation, as the case may be, shall be final,
binding and conclusive upon the parties thereto.

      

      
        	
                16.

              	
                NOTICES
      OF RECORD DATE

              

      

      

      Upon (a)
any establishment by the Company of a record date of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled
to receive any dividend or other distribution, or right or option to acquire
securities of the Company, or any other right, or (b) any capital
reorganization, reclassification, recapitalization, merger or consolidation of
the Company with or into any other corporation, any transfer of all or
substantially all the assets of the Company, or any voluntary or involuntary
dissolution, liquidation or winding up of the Company, or the sale, in a single
transaction, of a majority of the Company’s voting stock (whether newly issued,
or from treasury, or previously issued and then outstanding, or any combination
thereof), the Company shall mail to the Holder at least ten (10) Business Days,
or such longer period as may be required by law, prior to the record date
specified therein, a notice specifying (i) the date established as the record
date for the purpose of such dividend, distribution, option or right and a
description of such dividend, option or right, (ii) the date on which any such
reorganization, reclassification, transfer, consolidation, merger, dissolution,
liquidation or winding up, or sale is expected to become effective and (iii) the
date, if any, fixed as to when the holders of record of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such reorganization, reclassification, transfer,
consolation, merger, dissolution, liquidation or winding up.

      

      
        	
                17.

              	
                RESERVATION
      OF SHARES

              

      

      

      The
Company shall reserve and keep available out of its authorized but unissued
shares of Common Stock for issuance upon the exercise of this Warrant, free from
pre-emptive rights, such number of shares of Common Stock for which this Warrant
shall from time to time be exercisable.  The Company will take all
such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or
regulation. Without limiting the generality of the foregoing, the Company
covenants that it will use commercially reasonable efforts to 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 Warrant Shares upon the exercise
of this Warrant and use commercially reasonable efforts to obtain all such
authorizations, exemptions or consents, including but not limited to consents
from the Company’s stockholders or Board of Directors or any public regulatory
body, as may be necessary to enable the Company to perform its obligations under
this Warrant.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      

      
        	
                18.

              	
                HEADINGS

              

      

      

      The headings used in this Warrant are
for the convenience of reference only and shall not, for any purpose, be deemed
a part of this Warrant.

      

      
        	
                19.

              	
                AMENDMENT
      AND WAIVERS

              

      

      

      Any term of this Warrant may be amended
and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively), with the
written consent of the Company and the Holders of a majority of the Warrant
Shares issuable upon exercise of the Warrants.

      

      
        	
                20.

              	
                NO
      THIRD PARTY RIGHTS

              

      

      

      This
Warrant is not intended, and will not be construed, to create any rights in any
parties other than the Company and the Holder, and no person or entity may
assert any rights as third-party beneficiary hereunder.

      

      SIGNATURE
PAGE FOLLOWS

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      

      IN WITNESS WHEREOF, the Company has
caused this Warrant to be duly executed as of the date first set forth
above.

      

      
        
          
            	 
      	
                    LA
      CORTEZ ENERGY, INC.

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	 
        
	 
      	
                    Name:  
      Andres Gutierrez Rivera

                  
	 
      	
                    Title:    
      Chief Executive Officer

                  

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      EXHIBIT
A

      

      NOTICE OF
EXERCISE

      

      (To be
executed by the Holder of Warrant if such Holder desires to exercise
Warrant)

      

      To La
Cortez Energy, Inc.:

      

      The
undersigned hereby irrevocably elects to exercise this Warrant and to purchase
thereunder, ___________________ full shares of La Cortez Energy, Inc. common
stock issuable upon exercise of the Warrant and delivery of:

      

      (1)                 $_________
(in cash as provided for in the foregoing Warrant) and any applicable taxes
payable by the undersigned pursuant to such Warrant; and

      

      (2)                 __________
shares of Common Stock (pursuant to a Cashless Exercise in accordance with
Section 1(b)(ii) of the Warrant) (check here if the undersigned desires to
deliver an unspecified number of shares equal the number sufficient to effect a
Cashless Exercise [___]).

      

          The
undersigned requests that certificates for such shares be issued in the name
of:

      

      _________________________________________

      (Please
print name, address and social security or federal employer

      identification
number (if applicable))

      

      _________________________________________

      

      _________________________________________

      

                    If
the shares issuable upon this exercise of the Warrant are not all of the Warrant
Shares which the Holder is entitled to acquire upon the exercise of the Warrant,
the undersigned requests that a new Warrant evidencing the rights not so
exercised be issued in the name of and delivered to:

      

      _________________________________________

      (Please
print name, address and social security or federal employer

      identification
number (if applicable))

      

      _________________________________________

      

      _________________________________________

       

      Name of
Holder
(print):       ________________________  
        

      (Signature):   ___________________________________      
     

      (By:)  _________________________________________  
         

      (Title:)
________________________________________        
   

      Dated:   ________________________________________  
       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      EXHIBIT
B

      

      FORM OF
ASSIGNMENT

      

      FOR VALUE
RECEIVED, ___________________________________ hereby sells, assigns and
transfers to each assignee set forth below all of the rights of the undersigned
under the Warrant (as defined in and evidenced by the attached Warrant) to
acquire the number of Warrant Shares set opposite the name of such assignee
below and in and to the foregoing Warrant with respect to said acquisition
rights and the shares issuable upon exercise of the Warrant:

       

      
        
          
            
              
                
                  	
                          Name
      of Assignee

                        	 	
                          Address

                        	 	
                          Number
      of Shares

                        
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      

                

              

            

          

        

      

      

      If the
total of the Warrant Shares are not all of the Warrant Shares evidenced by the
foregoing Warrant, the undersigned requests that a new Warrant evidencing the
right to acquire the Warrant Shares not so assigned be issued in the name of and
delivered to the undersigned.

      

      

       Name
of Holder
(print):       ________________________         

       (Signature):   ___________________________________          

      (By:)  _________________________________________       
   

      (Title:)
________________________________________       
   

      Dated:   ________________________________________   
      

      
        
           

        

        
          16NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION 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 ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF
THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY SUCH SECURITIES.

    

    8%
SECURED CONVERTIBLE DEBENTURE

    

    
      
        	
                $300,000

              	
                December
      ___, 2009

              

      

    FOR VALUE
RECEIVED, INFERX CORPORATION (the “Company” or the
“Maker”)
promises to pay to the order of ____________, having an address located at
_______________ (the “Holder” or the “Payee”) or its
registered assigns (the “Payee”), upon the
terms set forth below, the principal sum of Three Hundred Thousand Dollars
($300,000) (this “Debenture”).

    

    1.           Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Debenture and Warrant Purchase Agreement (the “Purchase Agreement”),
dated December __, 2009, among the Company and the purchasers signatory
thereto.

    

    “Base Conversion
Price” shall have the meaning set forth in Section 17(c).

    

    “Buy-In” shall have
the meaning set forth in Section 17(b)(v).

    

    “Change of Control
Transaction” shall have the meaning set forth in Section
5(a)(vi).

    

    “Conversion Date”
shall have the meaning set forth in Section 17(a).

    

    “Conversion Price”
shall have the meaning set forth in Section 17(a).

    

    “Conversion Shares”
means, collectively, the shares of Common Stock issuable upon conversion of this
Debenture in accordance with the terms hereof.

    

    “Dilutive Issuance”
shall have the meaning set forth in Section 17(c).

    

    “Dilutive Issuance
Notice” shall have the meaning set forth in Section 17(c).

    

    “Event of Default”
shall have the meaning set forth in Section 5(a).

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    “New York Courts”
shall have the meaning set forth in Section 13.

    

    “Notice of Conversion”
shall have the meaning set forth in Section 17(a).

    

    “Original Issue Date”
means the date of the first issuance of the Debentures, regardless of any
transfers of any Debenture and regardless of the number of instruments which may
be issued to evidence such Debentures.

    

    “Permitted
Indebtedness” shall mean up to $900,000 of indebtedness as described on
Schedule 4(k)
to the Purchase Agreement.

    

    “Permitted Lien” shall
mean the individual and collective reference to the following: (a) liens in
connection with this Debenture; (b) liens for taxes, assessments and other
governmental charges or levies not yet due or liens for taxes, assessments and
other governmental charges or levies being contested in good faith and by
appropriate proceedings for which adequate reserves (in the good faith judgment
of the management of the Maker) have been established in accordance with
generally accepted accounting procedures and (c) liens imposed by law which were
incurred in the ordinary course of business, such as carriers’, warehousemen’s
and mechanics’ liens, statutory landlords’ liens, and other similar liens
arising in the ordinary course of business, and (x) which do not individually or
in the aggregate materially detract from the value of such property or assets or
materially impair the use thereof in the operation of the business of the Maker
and its consolidated subsidiaries or (y) which are being contested in good faith
by appropriate proceedings, which proceedings have the effect of preventing the
forfeiture or sale of the property or asset subject to such lien.

    

    “Prepayment” shall
have the meaning set forth in Section 2(d).

    

    “Prepayment Notice”
shall have the meaning set forth in Section 2(d).

    

    “Share Delivery Date”
shall have the meaning set forth in Section 17(a).

    

    2.           Payment
Terms.

    

    (a)        The
entire principal amount of this Debenture, together with all accrued interest
and unpaid interest, shall be due and payable on June __, 2010 (the “Maturity
Date”).

    

    (b)        The
Company shall pay interest to the Holder on the aggregate then outstanding
principal amount of this Debenture at the rate of 8% per annum, which shall be
payable in cash quarterly in arrears commencing March __, 2010, provided, however, upon the
occurrence of an Event of Default as set forth in Section 4(a) the Company shall
pay interest to the Holder on the aggregate principal amount of this Debenture
as of the original date of issuance of this Debenture at a rate of 22% per annum
and such interest shall be payable in cash monthly, on the first business day of
each month with any accrued and unpaid interest due and payable on the Maturity
Date.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (c)         All
overdue accrued and unpaid principal and interest to be paid hereunder shall
entail a late fee at the rate of 22% per annum (or such lower maximum amount of
interest permitted to be charged under applicable law) which will accrue daily,
from the date such principal and/or interest is due hereunder through and
including the date of payment.

    

    (d)         This
Debenture may be prepaid, in full, and in cash, subject to the terms and
conditions set forth herein (the “Prepayment”). At
least ten (10) business days prior to the Prepayment, the Company shall deliver
to the Holder a written notice of its intention to prepay (“Prepayment
Notice”).  All payments shall be made by the Company, in lawful
money of the United States, at the offices of the Company, or such other place
as the Holder shall designate by notice to the Company. The Company
covenants and agrees that it will honor all conversion
requests tendered from the time of delivery
of the first Notice of
Conversion through the date all amounts
owing thereon are due and paid in
full (including, without limitation, at all
times following any Prepayment Notice prior to the Prepayment date)). The Company’s determination to exercise a
Prepayment shall be applied ratably to all of the holders of the then
outstanding Debentures based on their (or their predecessor’s) initial purchases
of Debentures pursuant to the Purchase Agreement.

    

    3.           Secured Obligation.
As security for the payment in full of principal, interest and performance under
this Debenture and of all other liabilities and obligations of the Maker to the
Payee, Maker hereby grants to the Payee a general security interest in all of
the assets of the Maker and its subsidiaries and all proceeds arising therefrom
and any and all products of such assets. Maker represents that it is the sole
lawful owner of such assets attributable to it, free and clear of any liens and
encumbrances, and has the right and power to pledge, sell, assign and transfer
absolute title thereto to the Payee and that no financing statement covering
such assets has been filed in any jurisdiction. Maker agrees that this security
interest shall be a first priority security interest, senior and prior in
payment to all other indebtedness and obligations of Maker and its subsidiaries
to third parties. Maker hereby authorizes the Payee to file one or more
financing statements under the UCC and any amendments thereto or extensions
thereof without the signature of the Maker or any of its
subsidiaries.

    

    4.           Representations and
Warranties.  The Maker hereby represents and warrants to the
Payee as follows:

    

    (a)  Each of the Maker and each of
its subsidiaries has been duly organized and is validly existing under the laws
of its jurisdiction of organization and has all requisite power and authority to
execute, deliver and perform its obligations under this Debenture. This
Debenture has been duly authorized, executed and delivered by the Maker and each
of its subsidiaries that is a party thereto and constitutes its legal, valid and
binding obligation, enforceable against it in accordance with the terms hereof
and thereof. The execution, delivery and performance by the Maker and each of
its subsidiaries of this Debenture, and the incurrence by them of their
respective obligations hereunder, do not contravene or conflict with any law
applicable to the Maker or any of its subsidiaries or other instrument binding
on or otherwise affecting the Maker or any of its subsidiaries or give rise to
any lien, security interest or other charge or encumbrance (other than in favor
of the Payee) upon any of the Maker’s or its subsidiary’s properties. No consent
or approval of or notice to or filing with any governmental authority or other
third party is or will be required as a condition to the validity or
enforceability of this Debenture, other than such consents which have been
obtained and are in full force and effect.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (b)  Except with respect to the
material terms and conditions of the transactions contemplated by the
Transaction Documents (as defined herein), the Maker confirms that neither it
nor any other person acting on its behalf has provided Payee or their agents or
counsel with any information that it believes constitutes or might constitute
material, non-public information.  All of the disclosure furnished by
or on behalf of the Maker to the Payee regarding the Maker, its business and the
transactions contemplated hereby, is true and correct and does not contain any
untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading.

    

    5.           Events of
Default.

    

    (a)           “Event of Default”,
wherever used herein, means any one of the following events (whatever the reason
and whether it shall be voluntary or involuntary or effected by operation of law
or pursuant to any judgment, decree or order of any court, or any order, rule or
regulation of any administrative or governmental body):

    

    i.            any
default on the payment of (A) the principal amount of this Debenture or (B)
interest or other amounts owing to the Payee on this Debenture, as and when the
same shall become due and payable (whether on the Maturity Date or by
acceleration or otherwise);

    

    ii.           Maker
shall fail to observe or perform any material obligation or shall breach any
material term or provision of this Debenture and such failure or breach shall
not have been remedied within 10 days after the date on which notice of such
failure or breach shall have been delivered;

    

    iii.          Maker
or any of its subsidiaries shall fail to observe or perform any of their
respective obligations owed to Payee or any other covenant, agreement,
representation or warranty contained in, or otherwise commit any breach
hereunder or any other agreement executed in connection herewith and such
failure or breach shall not have been remedied within three days after the date
on which notice of such failure or breach shall have been
delivered;

    

    iv.          Maker
or any of its subsidiaries shall commence, or there shall be commenced against
Maker or any subsidiary a case under any applicable bankruptcy or insolvency
laws as now or hereafter in effect or any successor thereto, or Maker or any
subsidiary commences any other proceeding under any reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or
similar law of any jurisdiction whether now or hereafter in effect relating to
Maker or any subsidiary, or there is commenced against Maker or any subsidiary
any such bankruptcy, insolvency or other proceeding which remains undismissed
for a period of 60 days; or Maker or any subsidiary is adjudicated insolvent or
bankrupt; or any order of relief or other order approving any such case or
proceeding is entered; or Maker or any subsidiary suffers any appointment of any
custodian or the like for it or any substantial part of its property which
continues undischarged or unstayed for a period of 60 days; or Maker or any
subsidiary makes a general assignment for the benefit of creditors; or Maker or
any subsidiary shall fail to pay, or shall state that it is unable to pay, or
shall be unable to pay, its debts generally as they become due; or Maker or any
subsidiary shall call a meeting of its creditors with a view to arranging a
composition, adjustment or restructuring of its debts; or Maker or any
subsidiary shall by any act or failure to act expressly indicate its consent to,
approval of or acquiescence in any of the foregoing; or any corporate or other
action is taken by Maker or any subsidiary for the purpose of effecting any of
the foregoing;

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    v.           Maker
or any subsidiary shall default in any of its respective obligations under any
other note or any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be
issued, or by which there may be secured or evidenced any indebtedness for
borrowed money or money due under any long term leasing or factoring arrangement
of Maker or any subsidiary, whether such indebtedness now exists or shall
hereafter be created and such default shall result in such indebtedness becoming
or being declared due and payable prior to the date on which it would otherwise
become due and payable; or

    

    vi.          Maker
(a) shall be a party to any Change of Control Transaction (as defined below),
(b) shall agree to sell or dispose all or in excess of 50% of its assets in one
or more transactions (whether or not such sale would constitute a Change of
Control Transaction), (c) shall redeem or repurchase more than a de minimis number of
shares of the Maker's capital stock or other equity securities of Maker, or (d)
shall make any distribution or declare or pay any dividends (in cash or other
property, other than common stock) on, or purchase, acquire, redeem, or retire
any of Maker's capital stock, of any class, whether now or hereafter
outstanding. “Change
of Control Transaction” means the occurrence of any of: (i) an
acquisition after the date hereof by an individual or legal entity or “group”
(as described in Rule 13d-5(b)(1) promulgated under the Securities Exchange Act
of 1934, as amended) of effective control (whether through legal or beneficial
ownership of capital stock of Maker, by contract or otherwise) of in excess of
50% of the voting securities of Maker, (ii) a replacement at one time or over
time of more than one-half of the members of Maker's board of directors which is
not approved by a majority of those individuals who are members of the board of
directors on the date hereof (or by those individuals who are serving as members
of the board of directors on any date whose nomination to the board of directors
was approved by a majority of the members of the board of directors who are
members on the date hereof), (iii) the merger of Maker with or into another
entity that is not wholly-owned by Maker or the consolidation or sale of 33% or
more of the assets of Maker in one or a series of related transactions, or (iv)
the execution by Maker of an agreement to which Maker is a party or by which it
is bound, providing for any of the events set forth above in (i), (ii) or
(iii).

    

    (b)           Remedies Upon Event of
Default. If any Event of Default occurs, the outstanding principal amount
of this Debenture plus accrued but unpaid interest and other amounts owing in
respect thereof through the date of acceleration, shall become, at the Payee’s
election, immediately due and payable in cash. Commencing 5 days after the
occurrence of any Event of Default that results in the acceleration of this
Debenture, the interest rate on this Debenture shall accrue at the rate of 22%
per annum, or such lower maximum amount of interest permitted to be charged
under applicable law.  The Payee need not provide and the Maker hereby
waives any presentment, demand, protest or other notice of any kind, and the
Payee may immediately and without expiration of any grace period enforce any and
all of its rights and remedies hereunder and all other remedies available to it
under applicable law. Such declaration may be rescinded and annulled by Payee at
any time prior to payment hereunder and the Payee shall have all rights as
holder of this Debenture until such time, if any, as the Payee receives full
payment pursuant to this Section 5(b). No such rescission or annulment shall
affect any subsequent Event of Default or impair any right consequent
thereon.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    6.           Negative
Covenants.    So long as any portion of this
Debenture is outstanding, without the prior written consent of the Payee, the
Maker will not and will not permit any of its subsidiaries to directly or
indirectly:

    

    (a)   
      other than Permitted Indebtedness, enter
into, create, incur, assume, guarantee or suffer to exist any indebtedness for
borrowed money of any kind, including but not limited to, a guarantee, on or
with respect to any of its property or assets now owned or hereafter acquired or
any interest therein or any income or profits therefrom;

    

    (b)    
     other than Permitted Liens, enter into, create,
incur, assume or suffer to exist any liens of any kind, on or with respect to
any of its property or assets now owned or hereafter acquired or any interest
therein or any income or profits therefrom;

    

    (c)    
     amend its certificate of incorporation, bylaws or
other charter documents so as to adversely affect any rights of the
Payee;

    

    (d)     
    repay, repurchase or offer to repay, repurchase or
otherwise acquire more than a de minimis number of securities;

    

    (e)     
    repay, repurchase or offer to repay repurchase or
otherwise acquire any indebtedness, other than this Debenture if on a pro-rata
basis, other than regularly scheduled interest payment as such terms are in
effect as of the date hereof; provided, however, that no
regularly scheduled principal and interest payments may be made if, at the time
such payment is due or is otherwise made or after giving effect to such payment,
an event constituting, or that with the passage of time and without being cured
would constitute, an Event of Default has occurred and is
continuing;

    

    (f)     
     pay cash dividends or distributions on any equity
securities of the Maker; or

    

    (g)   
      enter into any agreement with respect to any of
the foregoing.

    

    7.           No Waiver of Payee’s
Rights.   All payments of principal and interest shall be
made without setoff, deduction or counterclaim. No delay or failure on the part
of the Payee in exercising any of its options, powers or rights, nor any partial
or single exercise of its options, powers or rights shall constitute a waiver
thereof or of any other option, power or right, and no waiver on the part of the
Payee of any of its options, powers or rights shall constitute a waiver of any
other option, power or right. Maker hereby waives presentment of payment,
protest, and all notices or demands in connection with the delivery, acceptance,
performance, default or endorsement of this Debenture. Acceptance by the Payee
of less than the full amount due and payable hereunder shall in no way limit the
right of the Payee to require full payment of all sums due and payable hereunder
in accordance with the terms hereof.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    8.           Remedies; Usury. In
case any one or more Event of Default shall have occurred and be continuing, the
Holder may exercise all remedies permitted by applicable law, without further
notice or demand. No failure or delay on the part of the Holder in exercising
any right, power or privilege under this Debenture and no course of dealing
between the Company and the Holder shall operate as a waiver thereof. No single
or partial exercise of any right, power or privilege hereunder shall preclude
any other or further exercise of any right, power or privilege the Holder would
otherwise have. No notice to, or demand on, the Company in any case shall
entitle the Company to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the right of Company to any other or
further action in any circumstances without notice or demand. If it shall be
found that any interest due hereunder shall violate applicable laws governing
usury, the applicable rate of interest due hereunder shall be reduced to the
maximum permitted rate of interest under such law.

    

    9.           Payment of Costs and
Expenses. The Maker agrees to pay, in addition to the principal and
interest due and payable hereon, all costs and expenses (including, without
limitation, reasonable attorneys' fees) incurred by the Holder in order to
collect the amounts due hereunder or to protect its interests hereunder. The
Company further agrees to pay, on demand, all costs and expenses of any
endorsement or any guaranty hereof, if any, and/or the enforcement of the
Holder's rights with respect to, or the administration, supervision,
preservation, protection of, or realization upon, any property securing payment
hereof, including reasonable attorney's fees.

    

    10.         Waiver of Presentment and
Notice of Dishonor. The Company and all others who may at any time be
liable hereon in any capacity, jointly and severally, waive presentment for
payment, demand, notice of nonpayment, notice of protest and protest of this
Debenture, and hereby consent to any and all extensions of time. Renewals,
waivers or modifications that may be granted by the Holder with respect to the
payment or other provisions of this Debenture, and to the release of any
collateral securing this Debenture or any part thereof, with or without
substitution, and agree that additional obligors may become parties hereto
without notice to the Company and without affecting their liability
hereunder.

    

    11.         Collection
Expenses.  If Payee shall commence an action or proceeding to
enforce this Debenture, then Maker shall reimburse Payee for its costs of
collection and reasonable attorneys fees incurred with the investigation,
preparation and prosecution of such action or proceeding.

    

    12.         Notices. All notices,
requests, consents and other communications hereunder to any party shall be
deemed to be sufficient if contained in a written instrument delivered in person
or duly sent by overnight courier, facsimile transmission or first class
registered or certified mail, return receipt requested, postage prepaid,
addressed to such party at the address set forth below or such other address as
may hereafter be designated in writing by the addressee to the addressor listing
all parties:

    

    If to the
Company, to:

    

    InferX
Corporation

    46950
Jennings Farm Drive, Suite 290

    Sterling,
Virginia, 20164-8679

    (fax) 703
444-2119

    Attn:
Vijay Suri, President

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    With a
copy to

    

    Seyfarth
Shaw LLP

    975 F
Street, N.W.

    Washington,
D.C. 20004

    (fax) 202
641-9260

    Attn:
Ernest M. Stern, Esq.

    

    If to the
Holder: at the address set forth in the Purchase Agreement

    

    All such
notices and communications shall be deemed to have been given in the case of (a)
facsimile transmission on the date sent, (b) personal delivery on the date of
such delivery, (c) overnight courier on the day following delivery to such
courier and (d) mailing on the third day after the posting thereof.

    

    13.         Governing Law. All
questions concerning the construction, validity, enforcement and interpretation
of this Debenture shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflict of laws thereof.  Each party agrees that all
legal proceedings concerning the interpretation, enforcement and defense of the
transactions contemplated by this Debenture (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced in the state and federal courts sitting
in the City of New York, Borough of Manhattan (the “New York
Courts”).  Each party hereto hereby irrevocably submits to the
exclusive jurisdiction of the New York Courts 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 such New York Courts, or such New York Courts are
improper or inconvenient venue for such proceeding.  Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Debenture
and agrees that such service shall constitute good and sufficient service of
process and notice thereof.  Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by
applicable law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any
legal proceeding arising out of or relating to this Debenture or the
transactions contemplated hereby. If any party shall commence an action or
proceeding to enforce any provisions of this Debenture, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for
its attorneys fees and other costs and expenses incurred in the investigation,
preparation and prosecution of such action or proceeding.

    

    14.         Binding; Effect: Successor
and Assigns. This Debenture shall be binding upon and inure to the
benefit of and be enforceable by the respective successors and assigns of the
parties hereto, provided that the Company may not sell or assign or transfer any
of its interest hereunder without the prior written consent of the Holder, its
successors or assigns.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    15.         Severability. If any
term, condition, or provision of this Debenture shall be held to be invalid,
illegal or unenforceable in any respect, then in such event the remainder of
this Debenture shall not be affected thereby and it shall remain in full force
and effect except with respect to such term, condition, or
provision.

    

    16.         Amendments. No
provision of this Debenture may be amended, waived, modified or discharged
orally, by course of dealing or otherwise, without a writing signed by the party
to be charged with such amendment, waiver, modification or
discharge.

    

    17.         Conversion
Right.

    

    (a)      At
any time after the date hereof, this Debenture shall be convertible into shares
of Common Stock at a conversion price equal to $0.20 per share subject to
adjustment for reverse and forward stock splits the like after the date of
issuance of this Debenture (the “Conversion Price”);
provided, however, this
Debenture shall only be convertible to the extent that the Payee’s beneficial
ownership of common stock does not exceed 4.99% of the issued and outstanding
shares of common stock of the Company then outstanding.  The Holder
shall effect conversions by delivering to the Company a Notice of Conversion,
the form of which is attached hereto as Annex A (each, a
“Notice of
Conversion”), specifying therein the principal amount of this Debenture
to be converted and the date on which such conversion shall be effected (such
date, the “Conversion
Date”).  If no Conversion Date is specified in a Notice of
Conversion, the Conversion Date shall be the date that such Notice of Conversion
is deemed delivered hereunder.  To effect conversions hereunder, the
Holder shall not be required to physically surrender this Debenture to the
Company unless the entire principal amount of this Debenture, plus all accrued
and unpaid interest thereon, has been so converted. Conversions hereunder shall
have the effect of lowering the outstanding principal amount of this Debenture
in an amount equal to the applicable conversion.  The Holder and the
Company shall maintain records showing the principal amount(s) converted and the
date of such conversion(s).  The Company may deliver an objection to
any Notice of Conversion within one (1) Business Day of delivery of such Notice
of Conversion.  In the event of any dispute or discrepancy, the
records of the Holder shall be controlling and determinative in the absence of
manifest error. The Holder, and
any assignee by acceptance of this Debenture, acknowledge and agree that, by
reason of the provisions of this paragraph, following conversion of a portion of
this Debenture, the unpaid and unconverted principal amount of this Debenture
may be less than the amount stated on the face hereof.

    

    (b)       Mechanics of
Conversion.

    

    i.         
  Conversion
Shares Issuable Upon Conversion of Principal Amount.  The
number of Conversion Shares issuable upon a conversion hereunder shall be
determined by the quotient obtained by dividing (x) the outstanding principal
amount of this Debenture to be converted by (y) the Conversion
Price.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    ii.           Delivery of Certificate Upon
Conversion. Not later than three (3) Trading Days after each Conversion
Date (the “Share
Delivery Date”), the Company shall deliver, or cause to be delivered, to
the Holder (A) a certificate or certificates representing the Conversion Shares
which, on or after the earlier of (i) the six month anniversary of the Original
Issue Date or (ii) the effective date of a registration statement registering
the Conversion Shares, shall be free of restrictive legends and trading
restrictions (other than those which may then be required by the Purchase
Agreement) representing the number of Conversion Shares being acquired upon the
conversion of this Debenture and (B) a bank check in the amount of accrued and
unpaid interest (if the Company has elected or is required to pay accrued
interest in cash). On or after the earlier of (i) the six month anniversary of
the Original Issue Date or (ii) the effective date of a registration registering
the Conversion Shares, the Company shall use its best efforts to deliver any
certificate or certificates required to be delivered by the Company under this
Section 17(b) electronically through the Depository Trust Company or another
established clearing corporation performing similar functions.

    

    iii.          Failure to Deliver
Certificates.  If, in the case of any Notice of Conversion,
such certificate or certificates are not delivered to or as directed by the
applicable Holder by the Share Delivery Date, the Holder shall be entitled to
elect by written notice to the Company at any time on or before its receipt of
such certificate or certificates, to rescind such Conversion, in which event the
Company shall promptly return to the Holder any original Debenture delivered to
the Company and the Holder shall promptly return to the Company the Common Stock
certificates issued to such Holder pursuant to the rescinded Conversion
Notice.

    

    iv.          Obligation Absolute; Partial
Liquidated Damages.  The Company’s obligations to issue and
deliver the Conversion Shares upon conversion of this Debenture in accordance
with the terms hereof are absolute and unconditional, irrespective of any action
or inaction by the Holder to enforce the same, any waiver or consent with
respect to any provision hereof, the recovery of any judgment against any Person
or any action to enforce the same, or any setoff, counterclaim, recoupment,
limitation or termination, or any breach or alleged breach by the Holder or any
other Person of any obligation to the Company or any violation or alleged
violation of law by the Holder or any other Person, and irrespective of any
other circumstance which might otherwise limit such obligation of the Company to
the Holder in connection with the issuance of such Conversion Shares; provided, however, that such
delivery shall not operate as a waiver by the Company of any such action the
Company may have against the Holder.  In the event the Holder of this
Debenture shall elect to convert any or all of the outstanding principal amount
hereof, the Company may not refuse conversion based on any claim that the Holder
or anyone associated or affiliated with the Holder has been engaged in any
violation of law, agreement or for any other reason, unless an injunction from a
court, on notice to Holder, restraining and or enjoining conversion of all or
part of this Debenture shall have been sought and obtained, and the Company
posts a surety bond for the benefit of the Holder in the amount of 150% of the
outstanding principal amount of this Debenture, which is subject to the
injunction, which bond shall remain in effect until the completion of
arbitration/litigation of the underlying dispute and the proceeds of which shall
be payable to the Holder to the extent it obtains judgment.  In the
absence of such injunction, the Company shall issue Conversion Shares or, if
applicable, cash, upon a properly noticed conversion.  If the Company
fails for any reason to deliver to the Holder such certificate or certificates
pursuant to Section 17(b)(ii) by the Share Delivery Date, the Company shall pay
to the Holder, in cash, as liquidated damages and not as a penalty, for each
$1,000 of principal amount being converted, $10 per Trading Day (increasing to
$20 per Trading Day on the fifth (5th)
Trading Day after such liquidated damages begin to accrue) for each Trading Day
after such Share Delivery Date until such certificates are delivered or Holder
rescinds such conversion.    Nothing herein shall limit a
Holder’s right to pursue actual damages or declare an Event of Default pursuant
to Section 6 hereof for the Company’s failure to deliver Conversion Shares
within the period specified herein and the Holder shall have the right to pursue
all remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive
relief.  The exercise of any such rights shall not prohibit the Holder
from seeking to enforce damages pursuant to any other Section hereof or under
applicable law.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    v.           Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Conversion. In addition to
any other rights available to the Holder, if the Company fails for any reason to
deliver to the Holder such certificate or certificates by the Share Delivery
Date pursuant to Section 17(b)(ii), and if after such Share Delivery Date the
Holder is required by its brokerage firm to purchase (in an open market
transaction or otherwise), or the Holder’s brokerage firm otherwise purchases,
shares of Common Stock to deliver in satisfaction of a sale by the Holder of the
Conversion Shares which the Holder was entitled to receive upon the conversion
relating to such Share Delivery Date (a “Buy-In”), then the
Company shall (A) pay in cash to the Holder (in addition to any other remedies
available to or elected by the Holder) the amount, if any, by which (x) the
Holder’s total purchase price (including any brokerage commissions) for the
Common Stock so purchased exceeds (y) the product of (1) the aggregate number of
shares of Common Stock that the Holder was entitled to receive from the
conversion at issue multiplied by (2) the actual sale price at which the sell
order giving rise to such purchase obligation was executed (including any
brokerage commissions) and (B) at the option of the Holder, either reissue (if
surrendered) this Debenture in a principal amount equal to the principal amount
of the attempted conversion (in which case such conversion shall be deemed
rescinded) or deliver to the Holder the number of shares of Common Stock that
would have been issued if the Company had timely complied with its delivery
requirements under Section 17(b)(ii).  For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted conversion of this Debenture with respect to
which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000
under clause (A) of the immediately preceding sentence, the Company shall be
required to pay the Holder $1,000.  The Holder shall provide the
Company written notice indicating the amounts payable to the Holder in respect
of the Buy-In and, upon request of the Company, evidence of the amount of such
loss.  Nothing herein shall limit a Holder’s right to pursue any other
remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver certificates representing
shares of Common Stock upon conversion of this Debenture as required pursuant to
the terms hereof.

    

    vi.          Reservation of Shares
Issuable Upon Conversion. The Company covenants that it will at all times
reserve and keep available out of its authorized and unissued shares of Common
Stock for the sole purpose of issuance upon conversion of this Debenture and
payment of interest on this Debenture, each as herein provided, free from
preemptive rights or any other actual contingent purchase rights of Persons
other than the Holder (and the other holders of the Debentures), not less than
such aggregate number of shares of the Common Stock as shall (subject to the
terms and conditions set forth in the Purchase Agreement) be issuable (taking
into account the adjustments and restrictions of Section 17(a)) upon the
conversion of the then outstanding principal amount of this Debenture and
payment of interest hereunder.  The Company covenants that all shares
of Common Stock that shall be so issuable shall, upon issue, be duly authorized,
validly issued, fully paid and nonassessable and, if a registration statement is
then effective under the Securities Act, shall be registered for public resale
in accordance with such registration statement.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    vii.         Fractional Shares. No
fractional shares or scrip representing fractional shares shall be issued upon
the conversion of this Debenture.  As to any fraction of a share which
the Holder would otherwise be entitled to purchase upon such conversion, the
Company shall at its election, either pay a cash adjustment in respect of such
final fraction in an amount equal to such fraction multiplied by the Conversion
Price or round up to the next whole share.

    

    viii.        Transfer
Taxes.  The issuance of certificates for shares of the Common
Stock on conversion of this Debenture shall be made without charge to the Holder
hereof for any documentary stamp or similar taxes that may be payable in respect
of the issue or delivery of such certificates, provided that, the Company shall
not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any such certificate upon conversion in
a name other than that of the Holder of this Debenture so converted and the
Company shall not be required to issue or deliver such certificates unless or
until the Person or Persons requesting the issuance thereof shall have paid to
the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid.

    

    (c)      If,
at any time while this Debenture is outstanding, the Company or any subsidiary,
as applicable, sells or grants any option to purchase or sells or grants any
right to reprice, or otherwise disposes of or issues (or announces any sale,
grant or any option to purchase or other disposition), any common stock or other
equity securities (including securities a Common Stock Equivalent) entitling any
person or entity to acquire shares of common stock at an effective price per
share that is lower than the then Conversion Price (such lower price, the “Base Conversion
Price” and such issuances, collectively, a “Dilutive Issuance”)
(if the holder of the common stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of common stock at an effective
price per share that is lower than the Conversion Price, such issuance shall be
deemed to have occurred for less than the Conversion Price on such date of the
Dilutive Issuance), then the Conversion Price shall be reduced to equal the Base
Conversion Price, provided, however, that a
Dilutive Issuance shall not include the Company’s granting of stock options,
and/or issuance of common stock upon exercise thereof, to directors, officers,
employees or consultants of the Company pursuant to the Company’s 2007 Stock
Incentive Plan.  Such adjustment shall be made whenever such common
stock or Common Stock Equivalents are issued.  The Company shall
notify the Payee in writing, no later than one (1) business day following the
issuance of any common stock or Common Stock Equivalents subject to this Section
17(c), indicating therein the applicable issuance price, or applicable reset
price, exchange price, conversion price and other pricing terms (such notice,
the “Dilutive Issuance
Notice”).  For purposes of clarification, whether or not the
Company provides a Dilutive Issuance Notice pursuant to this Section 17(c), upon
the occurrence of any Dilutive Issuance, the Payee is entitled to receive a
number of common stock based upon the Base Conversion Price on or after the date
of such Dilutive Issuance, regardless of whether the Payee accurately refers to
the Base Conversion Price in a notice of conversion.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    [Signature Page
Follows]

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Company has caused this Debenture to be executed and delivered by its agent duly
authorized, as of the date first written above.

    

    
      
        
          
            
              
                
                  	
                          INFERX
      CORPORATION

                        
	 
      	 
	
                          By:

                        	 
	
                          Name:

                        
	
                          Title:

                        

                

              

            

          

        

      

    

    

    [Signature Page to Debenture with
StreetCapital Investors]

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    ANNEX
A

    

    NOTICE
OF CONVERSION

    

    The undersigned hereby elects to
convert principal under the 8% Secured Convertible Debenture due June __, 2010
of InferX Corporation, a Delaware corporation (the “Company”), into
shares of common stock (the “Common Stock”), of
the Company according to the conditions hereof, as of the date written
below.  If 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 and is delivering herewith such certificates and
opinions as reasonably requested by the Company in accordance
therewith.  No fee will be charged to the holder for any conversion,
except for such transfer taxes, if any.

    

    By the delivery of this Notice of
Conversion the undersigned represents and warrants to the Company that its
ownership of the Common Stock does not exceed the amounts specified under
Section 4 of this Debenture, as determined in accordance with Section 13(d) of
the Exchange Act.

    

    The undersigned agrees to comply with
the prospectus delivery requirements under the applicable securities laws in
connection with any transfer of the aforesaid shares of Common
Stock.

    

    Conversion
calculations:

    
      
        
          
            	
                    Date
      to Effect Conversion:

                  
	 
      
	
                    Principal
      Amount of Debenture to be Converted:

                  
	 
      
	
                    Payment
      of Interest in Common Stock __ yes  __ no

                  
	
                    If
      yes, $_____ of Interest Accrued on Account of Conversion at
      Issue.

                  
	 
      
	
                    Number
      of shares of Common Stock to be issued:

                  
	 
      
	
                    Signature:

                  
	 
      
	
                    Name:

                  
	 
      
	
                    Address
      for Delivery of Common Stock Certificates:

                  
	 
      
	
                    Or

                  
	 
      
	
                    DWAC
      Instructions:

                  
	 
      
	
                    Broker
      No:_____________________

                  
	
                    Account
      No:_______________

                  

          

        

      

    

     

    
      
         

      

      
        15

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