Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Banyan Corporation - Exhibit 4.16

	 	
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED (THE “ACT”). THE SECURITIES MAY NOT BE
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
      SAID ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE
      AND SCOPE CUSTOMARY FOR OPINIONS
      OF COUNSEL IN COMPARABLE TRANSACTIONS THAT REGISTRATION
      IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT
      TO RULE 144 OR REGULATION
      S UNDER SAID ACT. 
	 

CALLABLE SECURED CONVERTIBLE NOTE 

	Los Angeles, California 	  
	_________, 200_ 	$_____ 

           FOR
  VALUE RECEIVED, BANYAN CORPORATION, an Oregon corporation (hereinafter
  called the “Borrower”), hereby promises to pay to the order
  of AJW PARTNERS, LLC or registered assigns (the “Holder”) the
  sum of ___________), on ________, 20__ (the “Maturity Date”),
  and to pay interest on the unpaid principal balance hereof at the rate of eight
  percent (8%) (the “Interest Rate”) per annum from _______,
  20__ (the “Issue Date”) until the same becomes due and payable,
  whether at maturity or upon acceleration or by prepayment or otherwise. Any
  amount of principal or interest on this Note which is not paid when due shall
  bear interest at the rate of fifteen percent (15%) per annum from the due date
  thereof until the same is paid (“Default Interest”). Interest
  shall commence accruing on the Issue Date, shall be computed on the basis of
  a 365-day year and the actual number of days elapsed and shall be payable quarterly
  in arrears on the fifth day of the following the end of a calendar quarter.
  All payments due hereunder (to the extent not converted into common stock, no
  par value per share (the “Common Stock”) in accordance with
  the terms hereof) shall be made in lawful money of the United States of America.
  All payments shall be made at such address as the Holder shall hereafter give
  to the Borrower by written notice made in accordance with the provisions of
  this Note. Whenever any amount expressed to be due by the terms of this Note
  is due on any day which is not a business day, the same shall instead be due
  on the next succeeding day which is a business day and, in the case of any interest
  payment date which is not the date on which this Note is paid in full, the extension
  of the due date thereof shall not be taken into account for purposes of determining
  the amount of interest due on such date. As used in this Note, the term “business
  day” shall mean any day other than a Saturday, Sunday or a day on which
  commercial banks in the city of New York, New York are authorized or required
  by law or executive order to remain closed. Each capitalized term used herein,
  and not otherwise defined, shall have the meaning ascribed thereto in that certain
  Securities Purchase Agreement 

dated ________, pursuant to which this Note was originally
issued (the “Purchase Agreement”). 

          This
  Note is free from all taxes, liens, claims and encumbrances with respect to
  the issue thereof and shall not be subject to preemptive rights or other similar
  rights of shareholders of the Borrower and will not impose personal liability
  upon the holder thereof. The obligations of the Borrower under this Note shall
  be secured by that certain Security Agreement and Intellectual Property Security
  Agreement, each dated _________by and between the Borrower and the Holder. 

          The
  following terms shall apply to this Note: 

ARTICLE I. OPTIONAL PREPAYMENT OF MONTHLY
AMOUNT 

          1.1
  Payment of Monthly Amount in Cash. Subject to the terms hereof,
  if the average of the Average Daily Prices (as defined herein) for the five
  (5) Trading Days (as defined herein) preceding the Notice Date (as defined herein)
  is less than the Initial Market Price (as defined herein), the Borrower shall
  have the option to pay the Monthly Amount (as defined herein) on the first day
  of a month (the “Repayment Date”). In order to exercise this
  option, on the fifth (5th) business day prior to each Repayment Date (the “Notice
  Date”), the Borrower shall deliver to Holder a written notice in the
  form of Exhibit B attached hereto electing to pay the Monthly Amount on the
  Repayment Date. The “Monthly Amount” shall be an amount equal
  to the sum of (x) 1/36th of the original principal amount plus (y)
  interest on the remaining amount outstanding calculated at the rate of 12% per
  annum. The “Initial Market Price” shall mean $.005. “Average
  Daily Price” means, for any security as of any date, the price based
  on the VWAP. “VWAP” shall mean the daily volume weighted average
  price of the Common Stock on the principal trading market for such security
  as reported by Bloomberg, L.P. using the VWAP function. If the Average Daily
  Price cannot be calculated for such security on such date in the manner provided
  above, the Average Daily Price shall be the fair market value as mutually determined
  by the Borrower and the holders of a majority in interest of the Notes being
  converted for which the calculation of the Average Daily Price is required in
  order to determine the Conversion Price of such Notes. “Trading Day”
  shall mean any day on which the Common Stock is traded for any period on the
  Over-the-Counter Bulletin Board (“OTCBB”), or on the principal
  securities exchange or other securities market on which the Common Stock is
  then being traded. 

          1.2
  Limitation on Conversion Rights. In any month in which
  the Borrower makes payment of the Monthly Amount in accordance with Section
  1.1, the Holder shall not be entitled to exercise its conversion rights
  pursuant to Section 2.1. 

ARTICLE II. CONVERSION RIGHTS 

          2.1
  Conversion Right. Subject to Section 1.2, the Holder
  shall have the right from time to time, and at any time on or prior to the earlier
  of (i) the Maturity Date and (ii) the 

2 

date of payment of the Default Amount (as defined in Article
III) pursuant to Section 2.6(a) or Article III, the Optional Prepayment Amount
(as defined in Section 6.1 or any payments pursuant to Section 2.7, each in
respect of the remaining outstanding principal amount of this Note to convert
all or any part of the outstanding and unpaid principal amount of this Note into
fully paid and non-assessable shares of Common Stock, as such Common Stock
exists on the Issue Date, or any shares of capital stock or other securities of
the Borrower into which such Common Stock shall hereafter be changed or
reclassified at the conversion price (the “Conversion Price”) determined
as provided herein (a “Conversion”); provided, however,
that in no event shall the Holder be entitled to convert any portion of this
Note in excess of that portion of this Note upon conversion of which the sum of
(1) the number of shares of Common Stock beneficially owned by the Holder and
its affiliates (other than shares of Common Stock which may be deemed
beneficially owned through the ownership of the unconverted portion of the Notes
or the unexercised or unconverted portion of any other security of the Borrower
(including, without limitation, the warrants issued by the Borrower pursuant to
the Purchase Agreement) subject to a limitation on conversion or exercise
analogous to the limitations contained herein) and (2) the number of shares of
Common Stock issuable upon the conversion of the portion of this Note with
respect to which the determination of this proviso is being made, would result
in beneficial ownership by the Holder and its affiliates of more than 4.99% of
the outstanding shares of Common Stock. For purposes of the proviso to the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and Regulations 13D-G thereunder, except as otherwise provided in
clause (1) of such proviso. The number of shares of Common Stock to be issued
upon each conversion of this Note shall be determined by dividing the Conversion
Amount (as defined below) by the applicable Conversion Price then in effect on
the date specified in the notice of conversion, in the form attached hereto as
Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the
Holder in accordance with Section 1.4 below; provided that the Notice of
Conversion is submitted by facsimile (or by other means resulting in, or
reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New
York, New York time on such conversion date (the “Conversion Date”). The
term “Conversion Amount” means, with respect to any conversion of this
Note, the sum of (1) the principal amount of this Note to be converted in such
conversion plus (2) accrued and unpaid interest, if any, on such
principal amount at the interest rates provided in this Note to the Conversion
Date, provided, however, that the Company shall have the right to pay any or all
interest in cash plus (3) Default Interest, if any, on the amounts
referred to in the immediately preceding clauses (1) and/or (2) plus (4)
at the Holder’s option, any amounts owed to the Holder pursuant to Sections 2.3
and 2.4(g) hereof or pursuant to Section 2(c) of that certain Registration
Rights Agreement, dated as of March 13, 2007, executed in connection with the
initial issuance of this Note and the other Notes issued on the Issue Date (the
“Registration Rights Agreement”). The term “Determination Date”
means the last business day of each month after the Issue Date. 

          2.2
  Conversion Price. 

                    (a)
  Calculation of Conversion Price. The Conversion Price
  shall be the lesser of (i) the Variable Conversion Price (as defined herein)
  and (ii) the Fixed Conversion Price (as defined herein) (subject, in each case,
  to equitable adjustments for stock splits, stock dividends or rights offerings
  by the Borrower relating to the Borrower’s securities or the securities
  of any subsidiary of the Borrower, combinations, recapitalization, reclassifications,

3 

extraordinary distributions and similar events). The
“Variable Conversion Price” shall mean the Applicable Percentage (as
defined herein) multiplied by the Market Price (as defined herein). “Market
Price” means the average of the lowest three (3) Trading Prices (as defined
below) for the Common Stock during the twenty (20) Trading Day period ending one
Trading Day prior to the date the Conversion Notice is sent by the Holder to the
Borrower via facsimile (the “Conversion Date”). “Trading Price”
means, for any security as of any date, the intraday trading price on the OTCBB
as reported by a reliable reporting service mutually acceptable to and hereafter
designated by Holders of a majority in interest of the Notes and the Borrower
or, if the OTCBB is not the principal trading market for such security, the
intraday trading price of such security on the principal securities exchange or
trading market where such security is listed or traded or, if no intraday
trading price of such security is available in any of the foregoing manners, the
average of the intraday trading prices of any market makers for such security
that are listed in the “pink sheets” by the National Quotation Bureau, Inc. If
the Trading Price cannot be calculated for such security on such date in the
manner provided above, the Trading Price shall be the fair market value as
mutually determined by the Borrower and the holders of a majority in interest of
the Notes being converted for which the calculation of the Trading Price is
required in order to determine the Conversion Price of such Notes. “Trading
Day” shall mean any day on which the Common Stock is traded for any period
on the OTCBB, or on the principal securities exchange or other securities market
on which the Common Stock is then being traded. “Applicable Percentage”
shall mean 50.0% . The “Fixed Conversion Price” shall mean $.0057. 

                    (b)
  Conversion Price During Major Announcements. Notwithstanding anything
  contained in Section 2.2(a) to the contrary, in the event the Borrower (i) makes
  a public announcement that it intends to consolidate or merge with any other
  corporation (other than a merger in which the Borrower is the surviving or continuing
  corporation and its capital stock is unchanged) or sell or transfer all or substantially
  all of the assets of the Borrower or (ii) any person, group or entity (including
  the Borrower) publicly announces a tender offer to purchase 50% or more of the
  Borrower’s Common Stock (or any other takeover scheme) (the date of the
  announcement referred to in clause (i) or (ii) is hereinafter referred to as
  the “Announcement Date”), then the Conversion Price shall,
  effective upon the Announcement Date and continuing through the Adjusted Conversion
  Price Termination Date (as defined below), be equal to the lower of (x) the
  Conversion Price which would have been applicable for a Conversion occurring
  on the Announcement Date and (y) the Conversion Price that would otherwise be
  in effect. From and after the Adjusted Conversion Price Termination Date, the
  Conversion Price shall be determined as set forth in this Section 2.2(a) . For
  purposes hereof, “Adjusted Conversion Price Termination Date”
  shall mean, with respect to any proposed transaction or tender offer (or takeover
  scheme) for which a public announcement as contemplated by this Section 2.2(b)
  has been made, the date upon which the Borrower (in the case of clause (i) above)
  or the person, group or entity (in the case of clause (ii) above) consummates
  or publicly announces the termination or abandonment of the proposed transaction
  or tender offer (or takeover scheme) which caused this Section 2.2(b) to become
  operative. 

          2.3
  Authorized Shares. The Borrower covenants that during
  the period the conversion right exists, the Borrower will reserve from its authorized
  and unissued Common Stock a sufficient number of shares, free from preemptive
  rights, to provide for the issuance of 

4 

Common Stock upon the full conversion of this Note and the
other Notes issued pursuant to the Purchase Agreement. The Borrower is required
at all times to have authorized and reserved two times the number of shares that
is actually issuable upon full conversion of the Notes (based on the Conversion
Price of the Notes or the Exercise Price of the Warrants in effect from time to
time) (the “Reserved Amount”). The Reserved Amount shall be increased
from time to time in accordance with the Borrower’s obligations pursuant to
Section 4(h) of the Purchase Agreement. The Borrower represents that upon
issuance, such shares will be duly and validly issued, fully paid and
non-assessable. In addition, if the Borrower shall issue any securities or make
any change to its capital structure which would change the number of shares of
Common Stock into which the Notes shall be convertible at the then current
Conversion Price, the Borrower shall at the same time make proper provision so
that thereafter there shall be a sufficient number of shares of Common Stock
authorized and reserved, free from preemptive rights, for conversion of the
outstanding Notes. The Borrower (i) acknowledges that it has irrevocably
instructed its transfer agent to issue certificates for the Common Stock
issuable upon conversion of this Note, and (ii) agrees that its issuance of this
Note shall constitute full authority to its officers and agents who are charged
with the duty of executing stock certificates to execute and issue the necessary
certificates for shares of Common Stock in accordance with the terms and
conditions of this Note. 

           If,
  at any time a Holder of this Note submits a Notice of Conversion, and the Borrower
  does not have sufficient authorized but unissued shares of Common Stock available
  to effect such conversion in accordance with the provisions of this Article
  II (a “Conversion Default”), subject to Section 5.8, the Borrower
  shall issue to the Holder all of the shares of Common Stock which are then available
  to effect such conversion. The portion of this Note which the Holder included
  in its Conversion Notice and which exceeds the amount which is then convertible
  into available shares of Common Stock (the “Excess Amount”)
  shall, notwithstanding anything to the contrary contained herein, not be convertible
  into Common Stock in accordance with the terms hereof until (and at the Holder’s
  option at any time after) the date additional shares of Common Stock are authorized
  by the Borrower to permit such conversion, at which time the Conversion Price
  in respect thereof shall be the lesser of (i) the Conversion Price on the Conversion
  Default Date (as defined below) and (ii) the Conversion Price on the Conversion
  Date thereafter elected by the Holder in respect thereof. In addition, the Borrower
  shall pay to the Holder payments (“Conversion Default Payments”)
  for a Conversion Default in the amount of (x) the sum of (1) the then
  outstanding principal amount of this Note plus (2) accrued and unpaid
  interest on the unpaid principal amount of this Note through the Authorization
  Date (as defined below) plus (3) Default Interest, if any, on the amounts
  referred to in clauses (1) and/or (2), multiplied by (y) .24, multiplied
  by (z) (N/365), where N = the number of days from the day the holder submits
  a Notice of Conversion giving rise to a Conversion Default (the “Conversion
  Default Date”) to the date (the “Authorization Date”)
  that the Borrower authorizes a sufficient number of shares of Common Stock to
  effect conversion of the full outstanding principal balance of this Note. The
  Borrower shall use its best efforts to authorize a sufficient number of shares
  of Common Stock as soon as practicable following the earlier of (i) such time
  that the Holder notifies the Borrower or that the Borrower otherwise becomes
  aware that there are or likely will be insufficient authorized and unissued
  shares to allow full conversion thereof and (ii) a Conversion Default. The Borrower
  shall send notice to the Holder of the authorization of additional shares of
  Common Stock, the Authorization Date and the amount of Holder’s accrued
  Conversion Default Payments. The 

5 

accrued Conversion Default Payments for each calendar month
shall be paid in cash or shall be convertible into Common Stock (at such time as
there are sufficient authorized shares of Common Stock) at the applicable
Conversion Price, at the Borrower’s option, as follows: 

                    (a)
  In the event Holder elects to take such payment in cash, cash payment shall
  be made to Holder by the fifth (5th) day of the month following the
  month in which it has accrued; and 

                    (b)
  In the event Holder elects to take such payment in Common Stock, the Holder
  may convert such payment amount into Common Stock at the Conversion Price (as
  in effect at the time of conversion) at any time after the fifth day of the
  month following the month in which it has accrued in accordance with the terms
  of this Article II (so long as there is then a sufficient number of authorized
  shares of Common Stock). 

          The
  Holder’s election shall be made in writing to the Borrower at any time
  prior to 6:00 p.m., New York, New York time, on the third day of the month following
  the month in which Conversion Default payments have accrued. If no election
  is made, the Holder shall be deemed to have elected to receive cash. Nothing
  herein shall limit the Holder’s right to pursue actual damages (to the
  extent in excess of the Conversion Default Payments) for the Borrower’s
  failure to maintain a sufficient number of authorized shares of Common Stock,
  and each holder shall have the right to pursue all remedies available at law
  or in equity (including degree of specific performance and/or injunctive relief).

          2.4
  Method of Conversion. 

                    (a)
  Mechanics of Conversion. Subject to Section 2.1, this
  Note may be converted by the Holder in whole or in part at any time from time
  to time after the Issue Date, by (A) submitting to the Borrower a Notice of
  Conversion (by facsimile or other reasonable means of communication dispatched
  on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B)
  subject to Section 2.4(b), surrendering this Note at the principal office of
  the Borrower.

                    (b)
  Surrender of Note Upon Conversion. Notwithstanding
  anything to the contrary set forth herein, upon conversion of this Note in accordance
  with the terms hereof, the Holder shall not be required to physically surrender
  this Note to the Borrower unless the entire unpaid principal amount of this
  Note is so converted. The Holder and the Borrower shall maintain records showing
  the principal amount so converted and the dates of such conversions or shall
  use such other method, reasonably satisfactory to the Holder and the Borrower,
  so as not to require physical surrender of this Note upon each such conversion.
  In the event of any dispute or discrepancy, such records of the Borrower shall
  be controlling and determinative in the absence of manifest error. Notwithstanding
  the foregoing, if any portion of this Note is converted as aforesaid, the Holder
  may not transfer this Note unless the Holder first physically surrenders this
  Note to the Borrower, whereupon the Borrower will forthwith issue and deliver
  upon the order of the Holder a new Note of like tenor, registered as the Holder
  (upon payment by the Holder of any applicable transfer taxes) may request, representing
  in the aggregate the remaining unpaid principal amount of this Note. The Holder
  and any assignee, by acceptance of this Note, acknowledge and agree that, by
  reason of the provisions of this 

6 

paragraph, following conversion of a portion of this Note, the
unpaid and unconverted principal amount of this Note represented by this Note
may be less than the amount stated on the face hereof. 

                    (c)
  Payment of Taxes. The Borrower shall not be required
  to pay any tax which may be payable in respect of any transfer involved in the
  issue and delivery of shares of Common Stock or other securities or property
  on conversion of this Note in a name other than that of the Holder (or in street
  name), and the Borrower shall not be required to issue or deliver any such shares
  or other securities or property unless and until the person or persons (other
  than the Holder or the custodian in whose street name such shares are to be
  held for the Holder’s account) requesting the issuance thereof shall have
  paid to the Borrower the amount of any such tax or shall have established to
  the satisfaction of the Borrower that such tax has been paid. 

                    (d)
  Delivery of Common Stock Upon Conversion. Upon receipt
  by the Borrower from the Holder of a facsimile transmission (or other reasonable
  means of communication) of a Notice of Conversion meeting the requirements for
  conversion as provided in this Section 2.4, the Borrower shall issue and deliver
  or cause to be issued and delivered to or upon the order of the Holder certificates
  for the Common Stock issuable upon such conversion within three (3) business
  days after such receipt (and, solely in the case of conversion of the entire
  unpaid principal amount hereof, surrender of this Note) (such third business
  day being hereinafter referred to as the “Deadline”) in accordance
  with the terms hereof and the Purchase Agreement (including, without limitation,
  in accordance with the requirements of Section 2(g) of the Purchase Agreement
  that certificates for shares of Common Stock issued on or after the effective
  date of the Registration Statement upon conversion of this Note shall not bear
  any restrictive legend). 

                    (e)
  Obligation of Borrower to Deliver Common Stock. Upon
  receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed
  to be the holder of record of the Common Stock issuable upon such conversion,
  the outstanding principal amount and the amount of accrued and unpaid interest
  on this Note shall be reduced to reflect such conversion, and, unless the Borrower
  defaults on its obligations under this Article I, all rights with respect to
  the portion of this Note being so converted shall forthwith terminate except
  the right to receive the Common Stock or other securities, cash or other assets,
  as herein provided, on such conversion. If the Holder shall have given a Notice
  of Conversion as provided herein, the Borrower’s obligation to issue and
  deliver the certificates for Common Stock shall be absolute and unconditional,
  irrespective of the absence of any action by the Holder to enforce the same,
  any waiver or consent with respect to any provision thereof, the recovery of
  any judgment against any person or any action to enforce the same, any failure
  or delay in the enforcement of any other obligation of the Borrower to the holder
  of record, or any setoff, counterclaim, recoupment, limitation or termination,
  or any breach or alleged breach by the Holder of any obligation to the Borrower,
  and irrespective of any other circumstance which might otherwise limit such
  obligation of the Borrower to the Holder in connection with such conversion.
  The Conversion Date specified in the Notice of Conversion shall be the Conversion
  Date so long as the Notice of Conversion is received by the Borrower before
  6:00 p.m., New York, New York time, on such date. 

7 

                    (f)
  Delivery of Common Stock by Electronic Transfer. In
  lieu of delivering physical certificates representing the Common Stock issuable
  upon conversion, provided the Borrower’s transfer agent is participating
  in the Depository Trust Company (“DTC”) Fast Automated Securities
  Transfer (“FAST”) program, upon request of the Holder and its
  compliance with the provisions contained in Section 2.1 and in this Section
  2.4, the Borrower shall use its best efforts to cause its transfer agent to
  electronically transmit the Common Stock issuable upon conversion to the Holder
  by crediting the account of Holder’s Prime Broker with DTC through its
  Deposit Withdrawal Agent Commission (“DWAC”) system. 

                    (g)
  Failure to Deliver Common Stock Prior to Deadline. Without
  in any way limiting the Holder’s right to pursue other remedies, including
  actual damages and/or equitable relief, the parties agree that if delivery of
  the Common Stock issuable upon conversion of this Note is more than two (2)
  business days after the Deadline (other than a failure due to the circumstances
  described in Section 2.3 above, which failure shall be governed by such Section)
  the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond
  the Deadline that the Borrower fails to deliver such Common Stock. Such cash
  amount shall be paid to Holder by the fifth day of the month following the month
  in which it has accrued or, at the option of the Holder (by written notice to
  the Borrower by the first day of the month following the month in which it has
  accrued), shall be added to the principal amount of this Note, in which event
  interest shall accrue thereon in accordance with the terms of this Note and
  such additional principal amount shall be convertible into Common Stock in accordance
  with the terms of this Note. 

          2.5
  Concerning the Shares. The shares of Common Stock issuable
  upon conversion of this Note may not be sold or transferred unless (i) such
  shares are sold pursuant to an effective registration statement under the Act
  or (ii) the Borrower or its transfer agent shall have been furnished with an
  opinion of counsel (which opinion shall be in form, substance and scope customary
  for opinions of counsel in comparable transactions) to the effect that the shares
  to be sold or transferred may be sold or transferred pursuant to an exemption
  from such registration or (iii) such shares are sold or transferred pursuant
  to Rule 144 under the Act (or a successor rule) (“Rule 144”)
  or (iv) such shares are transferred to an “affiliate” (as defined
  in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares
  only in accordance with this Section 2.5 and who is an Accredited Investor (as
  defined in the Purchase Agreement). Except as otherwise provided in the Purchase
  Agreement (and subject to the removal provisions set forth below), until such
  time as the shares of Common Stock issuable upon conversion of this Note have
  been registered under the Act as contemplated by the Registration Rights Agreement
  or otherwise may be sold pursuant to Rule 144 without any restriction as to
  the number of securities as of a particular date that can then be immediately
  sold, each certificate for shares of Common Stock issuable upon conversion of
  this Note that has not been so included in an effective registration statement
  or that has not been sold pursuant to an effective registration statement or
  an exemption that permits removal of the legend, shall bear a legend substantially
  in the following form, as appropriate: 

	 	
      “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE
      SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION 
	 

8 

	 	
      STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN
      OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF
      COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED
      UNDER SAID ACT UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S UNDER SAID
      ACT.” 
	 

          The
  legend set forth above shall be removed and the Borrower shall issue to the
  Holder a new certificate therefor free of any transfer legend if (i) the Borrower
  or its transfer agent shall have received an opinion of counsel, in form, substance
  and scope customary for opinions of counsel in comparable transactions, to the
  effect that a public sale or transfer of such Common Stock may be made without
  registration under the Act and the shares are so sold or transferred, (ii) such
  Holder provides the Borrower or its transfer agent with reasonable assurances
  that the Common Stock issuable upon conversion of this Note (to the extent such
  securities are deemed to have been acquired on the same date) can be sold pursuant
  to Rule 144 or (iii) in the case of the Common Stock issuable upon conversion
  of this Note, such security is registered for sale by the Holder under an effective
  registration statement filed under the Act or otherwise may be sold pursuant
  to Rule 144 without any restriction as to the number of securities as of a particular
  date that can then be immediately sold. Nothing in this Note shall (i) limit
  the Borrower’s obligation under the Registration Rights Agreement or (ii)
  affect in any way the Holder’s obligations to comply with applicable prospectus
  delivery requirements upon the resale of the securities referred to herein.

          2.6
  Effect of Certain Events. 

                    (a)
  Effect of Merger, Consolidation, Etc. At the option
  of the Holder, the sale, conveyance or disposition of all or substantially all
  of the assets of the Borrower, the effectuation by the Borrower of a transaction
  or series of related transactions in which more than 50% of the voting power
  of the Borrower is disposed of, or the consolidation, merger or other business
  combination of the Borrower with or into any other Person (as defined below)
  or Persons when the Borrower is not the survivor shall either: (i) be deemed
  to be an Event of Default (as defined in Article IV) pursuant to which the Borrower
  shall be required to pay to the Holder upon the consummation of and as a condition
  to such transaction an amount equal to the Default Amount (as defined in Article
  IV) or (ii) be treated pursuant to Section 2.6(b) hereof. “Person”
  shall mean any individual, corporation, limited liability company, partnership,
  association, trust or other entity or organization. 

                    (b)
  Adjustment Due to Merger, Consolidation, Etc. If, at
  any time when this Note is issued and outstanding and prior to conversion of
  all of the Notes, there shall be any merger, consolidation, exchange of shares,
  recapitalization, reorganization, or other similar event, as a result of which
  shares of Common Stock of the Borrower shall be changed into the same or a different
  number of shares of another class or classes of stock or securities of the Borrower
  or another entity, or in case of any sale or conveyance of all or substantially
  all of the assets of the Borrower other than in connection with a plan of complete
  liquidation of the Borrower, then the Holder of this Note shall thereafter have
  the right to receive upon conversion of this Note, upon the basis and upon the
  terms and conditions specified herein and in lieu of the shares of Common Stock
  immediately theretofore issuable upon conversion, such stock, securities or
  assets which the Holder would have been entitled to receive in such transaction
  had 

9 

this Note been converted in full immediately prior to such
transaction (without regard to any limitations on conversion set forth herein),
and in any such case appropriate provisions shall be made with respect to the
rights and interests of the Holder of this Note to the end that the provisions
hereof (including, without limitation, provisions for adjustment of the
Conversion Price and of the number of shares issuable upon conversion of the
Note) shall thereafter be applicable, as nearly as may be practicable in
relation to any securities or assets thereafter deliverable upon the conversion
hereof. The Borrower shall not effect any transaction described in this Section
2.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days
prior written notice (but in any event at least fifteen (15) days prior written
notice) of the record date of the special meeting of shareholders to approve, or
if there is no such record date, the consummation of, such merger,
consolidation, exchange of shares, recapitalization, reorganization or other
similar event or sale of assets (during which time the Holder shall be entitled
to convert this Note) and (b) the resulting successor or acquiring entity (if
not the Borrower) assumes by written instrument the obligations of this Section
1.6(b) . The above provisions shall similarly apply to successive
consolidations, mergers, sales, transfers or share exchanges. 

                    (c)
  Adjustment Due to Distribution. If the Borrower shall
  declare or make any distribution of its assets (or rights to acquire its assets)
  to holders of Common Stock as a dividend, stock repurchase, by way of return
  of capital or otherwise (including any dividend or distribution to the Borrower’s
  shareholders in cash or shares (or rights to acquire shares) of capital stock
  of a subsidiary (i.e., a spin-off)) (a “Distribution”), then
  the Holder of this Note shall be entitled, upon any conversion of this Note
  after the date of record for determining shareholders entitled to such Distribution,
  to receive the amount of such assets which would have been payable to the Holder
  with respect to the shares of Common Stock issuable upon such conversion had
  such Holder been the holder of such shares of Common Stock on the record date
  for the determination of shareholders entitled to such Distribution. 

                    (d)
  Adjustment Due to Dilutive Issuance. If, at any time
  when any Notes are issued and outstanding, the Borrower issues or sells, or
  in accordance with this Section 2.6(d) hereof is deemed to have issued or sold,
  any shares of Common Stock for no consideration or for a consideration per share
  (before deduction of reasonable expenses or commissions or underwriting discounts
  or allowances in connection therewith) less than the Fixed Conversion Price
  in effect on the date of such issuance (or deemed issuance) of such shares of
  Common Stock (a “Dilutive Issuance”), then immediately upon
  the Dilutive Issuance, the Variable Conversion Price will be reduced to the
  amount of the consideration per share received by the Borrower in such Dilutive
  Issuance; provided that only one adjustment will be made for each Dilutive
  Issuance. 

                    The
  Borrower shall be deemed to have issued or sold shares of Common Stock if the
  Borrower in any manner issues or grants any warrants, rights or options (not
  including employee stock option plans), whether or not immediately exercisable,
  to subscribe for or to purchase Common Stock or other securities convertible
  into or exchangeable for Common Stock (“Convertible Securities”)
  (such warrants, rights and options to purchase Common Stock or Convertible Securities
  are hereinafter referred to as “Options”) and the price per
  share for which Common Stock is issuable upon the exercise of such Options is
  less than the Variable Conversion Price then in effect, then the Variable Conversion
  Price shall be equal to such price 

10 

per share. For purposes of the preceding sentence, the “price
per share for which Common Stock is issuable upon the exercise of such Options”
is determined by dividing (i) the total amount, if any, received or receivable
by the Borrower as consideration for the issuance or granting of all such
Options, plus the minimum aggregate amount of additional consideration, if any,
payable to the Borrower upon the exercise of all such Options, plus, in the case
of Convertible Securities issuable upon the exercise of such Options, the
minimum aggregate amount of additional consideration payable upon the conversion
or exchange thereof at the time such Convertible Securities first become
convertible or exchangeable, by (ii) the maximum total number of shares of
Common Stock issuable upon the exercise of all such Options (assuming full
conversion of Convertible Securities, if applicable). No further adjustment to
the Conversion Price will be made upon the actual issuance of such Common Stock
upon the exercise of such Options or upon the conversion or exchange of
Convertible Securities issuable upon exercise of such Options. 

                    Additionally,
  the Borrower shall be deemed to have issued or sold shares of Common Stock if
  the Borrower in any manner issues or sells any Convertible Securities, whether
  or not immediately convertible (other than where the same are issuable upon
  the exercise of Options), and the price per share for which Common Stock is
  issuable upon such conversion or exchange is less than the Variable Conversion
  Price then in effect, then the Variable Conversion Price shall be equal to such
  price per share. For the purposes of the preceding sentence, the “price
  per share for which Common Stock is issuable upon such conversion or exchange”
  is determined by dividing (i) the total amount, if any, received or receivable
  by the Borrower as consideration for the issuance or sale of all such Convertible
  Securities, plus the minimum aggregate amount of additional consideration, if
  any, payable to the Borrower upon the conversion or exchange thereof at the
  time such Convertible Securities first become convertible or exchangeable, by
  (ii) the maximum total number of shares of Common Stock issuable upon the conversion
  or exchange of all such Convertible Securities. No further adjustment to the
  Variable Conversion Price will be made upon the actual issuance of such Common
  Stock upon conversion or exchange of such Convertible Securities. 

                    (e)
  Purchase Rights. If, at any time when any Notes are
  issued and outstanding, the Borrower issues any convertible securities or rights
  to purchase stock, warrants, securities or other property (the “Purchase
  Rights”) pro rata to the record holders of any class of Common Stock,
  then the Holder of this Note will be entitled to acquire, upon the terms applicable
  to such Purchase Rights, the aggregate Purchase Rights which such Holder could
  have acquired if such Holder had held the number of shares of Common Stock acquirable
  upon complete conversion of this Note (without regard to any limitations on
  conversion contained herein) immediately before the date on which a record is
  taken for the grant, issuance or sale of such Purchase Rights or, if no such
  record is taken, the date as of which the record holders of Common Stock are
  to be determined for the grant, issue or sale of such Purchase Rights. 

                    (f)
  Notice of Adjustments. Upon the occurrence of each
  adjustment or readjustment of the Conversion Price as a result of the events
  described in this Section 1.6, the Borrower, at its expense, shall promptly
  compute such adjustment or readjustment and prepare and furnish to the Holder
  of a certificate setting forth such adjustment or readjustment and showing in
  detail the facts upon which such adjustment or readjustment is based. The Borrower
  shall, upon the written request at any time of the Holder, furnish to such Holder
  a like certificate setting forth (i) such adjustment or readjustment, (ii) the
  Conversion Price at the time in effect 

11 

and (iii) the number of shares of Common Stock and the amount,
if any, of other securities or property which at the time would be received upon
conversion of the Note. 

          2.7
  Trading Market Limitations. Unless permitted by the
  applicable rules and regulations of the principal securities market on which
  the Common Stock is then listed or traded, in no event shall the Borrower issue
  upon conversion of or otherwise pursuant to this Note and the other Notes issued
  pursuant to the Purchase Agreement more than the maximum number of shares of
  Common Stock that the Borrower can issue pursuant to any rule of the principal
  United States securities market on which the Common Stock is then traded (the
  “Maximum Share Amount”), which shall be 19.99% of the total
  shares outstanding on the Closing Date (as defined in the Purchase Agreement),
  subject to equitable adjustment from time to time for stock splits, stock dividends,
  combinations, capital reorganizations and similar events relating to the Common
  Stock occurring after the date hereof. Once the Maximum Share Amount has been
  issued (the date of which is hereinafter referred to as the “Maximum
  Conversion Date”), if the Borrower fails to eliminate any prohibitions
  under applicable law or the rules or regulations of any stock exchange, interdealer
  quotation system or other self-regulatory organization with jurisdiction over
  the Borrower or any of its securities on the Borrower’s ability to issue
  shares of Common Stock in excess of the Maximum Share Amount (a “Trading
  Market Prepayment Event”), in lieu of any further right to convert
  this Note, and in full satisfaction of the Borrower’s obligations under
  this Note, the Borrower shall pay to the Holder, within fifteen (15) business
  days of the Maximum Conversion Date (the “Trading Market Prepayment
  Date”), an amount equal to 130% times the sum of (a)
  the then outstanding principal amount of this Note immediately following the
  Maximum Conversion Date, plus (b) accrued and unpaid interest on the
  unpaid principal amount of this Note to the Trading Market Prepayment Date,
  plus (c) Default Interest, if any, on the amounts referred to in clause
  (a) and/or (b) above, plus (d) any optional amounts that may be added
  thereto at the Maximum Conversion Date by the Holder in accordance with the
  terms hereof (the then outstanding principal amount of this Note immediately
  following the Maximum Conversion Date, plus the amounts referred to in
  clauses (b), (c) and (d) above shall collectively be referred to as the “Remaining
  Convertible Amount”). With respect to each Holder of Notes, the Maximum
  Share Amount shall refer to such Holder’s pro rata share
  thereof determined in accordance with Section 5.8 below. In the event that the
  sum of (x) the aggregate number of shares of Common Stock issued upon conversion
  of this Note and the other Notes issued pursuant to the Purchase Agreement plus
  (y) the aggregate number of shares of Common Stock that remain issuable upon
  conversion of this Note and the other Notes issued pursuant to the Purchase
  Agreement, represents at least one hundred percent (100%) of the Maximum Share
  Amount (the “Triggering Event”), the Borrower will use its
  best efforts to seek and obtain Shareholder Approval (or obtain such other relief
  as will allow conversions hereunder in excess of the Maximum Share Amount) as
  soon as practicable following the Triggering Event and before the Maximum Conversion
  Date. As used herein, “Shareholder Approval” means approval
  by the shareholders of the Borrower to authorize the issuance of the full number
  of shares of Common Stock which would be issuable upon full conversion of the
  then outstanding Notes but for the Maximum Share Amount. 

          2.8
  Status as Shareholder. Upon submission of a Notice
  of Conversion by a Holder, (i) the shares covered thereby (other than the shares,
  if any, which cannot be issued because their issuance would exceed such Holder’s
  allocated portion of the Reserved Amount or 

12 

Maximum Share Amount) shall be deemed converted into shares of
Common Stock and (ii) the Holder’s rights as a Holder of such converted portion
of this Note shall cease and terminate, excepting only the right to receive
certificates for such shares of Common Stock and to any remedies provided herein
or otherwise available at law or in equity to such Holder because of a failure
by the Borrower to comply with the terms of this Note. Notwithstanding the
foregoing, if a Holder has not received certificates for all shares of Common
Stock prior to the tenth (10th) business day after the expiration of the
Deadline with respect to a conversion of any portion of this Note for any
reason, then (unless the Holder otherwise elects to retain its status as a
holder of Common Stock by so notifying the Borrower) the Holder shall regain the
rights of a Holder of this Note with respect to such unconverted portions of
this Note and the Borrower shall, as soon as practicable, return such
unconverted Note to the Holder or, if the Note has not been surrendered, adjust
its records to reflect that such portion of this Note has not been converted. In
all cases, the Holder shall retain all of its rights and remedies (including,
without limitation, (i) the right to receive Conversion Default Payments
pursuant to Section 2.3 to the extent required thereby for such Conversion
Default and any subsequent Conversion Default and (ii) the right to have the
Conversion Price with respect to subsequent conversions determined in accordance
with Section 2.3) for the Borrower’s failure to convert this Note. 

ARTICLE III. CERTAIN COVENANTS 

          3.1
  Distributions on Capital Stock. So long as the Borrower
  shall have any obligation under this Note, the Borrower shall not without the
  Holder’s written consent (a) pay, declare or set apart for such payment,
  any dividend or other distribution (whether in cash, property or other securities)
  on shares of capital stock other than dividends on shares of Common Stock solely
  in the form of additional shares of Common Stock or (b) directly or indirectly
  or through any subsidiary make any other payment or distribution in respect
  of its capital stock except for distributions pursuant to any shareholders’
  rights plan which is approved by a majority of the Borrower’s disinterested
  directors. 

          3.2
  Restriction on Stock Repurchases. So long as the Borrower
  shall have any obligation under this Note, the Borrower shall not without the
  Holder’s written consent redeem, repurchase or otherwise acquire (whether
  for cash or in exchange for property or other securities or otherwise) in any
  one transaction or series of related transactions any shares of capital stock
  of the Borrower or any warrants, rights or options to purchase or acquire any
  such shares. 

          3.3
  Borrowings. So long as the Borrower shall have any
  obligation under this Note, the Borrower shall not, without the Holder’s
  written consent, create, incur, assume or suffer to exist any liability for
  borrowed money, except (a) borrowings in existence or committed on the date
  hereof and of which the Borrower has informed Holder in writing prior to the
  date hereof, (b) indebtedness to trade creditors or financial institutions incurred
  in the ordinary course of business or (c) borrowings, the proceeds of which
  shall be used to repay this Note. 

          3.4
  Sale of Assets. So long as the Borrower shall have
  any obligation under this Note, the Borrower shall not, without the Holder’s
  written consent, sell, lease or otherwise 

13 

dispose of any significant portion of its assets outside the
ordinary course of business. Any consent to the disposition of any assets may be
conditioned on a specified use of the proceeds of disposition. 

          3.5
  Advances and Loans. So long as the Borrower shall have
  any obligation under this Note, the Borrower shall not, without the Holder’s
  written consent, lend money, give credit or make advances to any person, firm,
  joint venture or corporation, including, without limitation, officers, directors,
  employees, subsidiaries and affiliates of the Borrower, except loans, credits
  or advances (a) in existence or committed on the date hereof and which the Borrower
  has informed Holder in writing prior to the date hereof, (b) made in the ordinary
  course of business or (c) not in excess of $50,000. 

          3.6
  Contingent Liabilities. So long as the Borrower shall
  have any obligation under this Note, the Borrower shall not, without the Holder’s
  written consent, which shall not be unreasonably withheld, assume, guarantee,
  endorse, contingently agree to purchase or otherwise become liable upon the
  obligation of any person, firm, partnership, joint venture or corporation, except
  by the endorsement of negotiable instruments for deposit or collection and except
  assumptions, guarantees, endorsements and contingencies (a) in existence or
  committed on the date hereof and which the Borrower has informed Holder in writing
  prior to the date hereof, and (b) similar transactions in the ordinary course
  of business.

ARTICLE IV. EVENTS OF DEFAULT 

     If any of the following events of
default (each, an “Event of Default”) shall occur: 

          4.1
  Failure to Pay Principal or Interest. The Borrower
  fails to pay the principal hereof or interest thereon when due on this Note,
  whether at maturity, upon a Trading Market Prepayment Event pursuant to Section
  2.7, upon acceleration or otherwise; 

          4.2
  Conversion and the Shares. The Borrower fails to issue
  shares of Common Stock to the Holder (or announces or threatens that it will
  not honor its obligation to do so) upon exercise by the Holder of the conversion
  rights of the Holder in accordance with the terms of this Note (for a period
  of at least sixty (60) days, if such failure is solely as a result of the circumstances
  governed by Section 2.3 and the Borrower is using its best efforts to authorize
  a sufficient number of shares of Common Stock as soon as practicable), fails
  to transfer or cause its transfer agent to transfer (electronically or in certificated
  form) any certificate for shares of Common Stock issued to the Holder upon conversion
  of or otherwise pursuant to this Note as and when required by this Note or the
  Registration Rights Agreement, or fails to remove any restrictive legend (or
  to withdraw any stop transfer instructions in respect thereof) on any certificate
  for any shares of Common Stock issued to the Holder upon conversion of or otherwise
  pursuant to this Note as and when required by this Note or the Registration
  Rights Agreement (or makes any announcement, statement or threat that it does
  not intend to honor the obligations described in this paragraph) and any such
  failure shall continue uncured (or any announcement, statement or threat not
  to honor its obligations shall not be rescinded in writing) for ten (10) days
  after the Borrower shall have been notified thereof in writing by the Holder;

14 

          4.3
  Failure to Timely File Registration or Effect Registration.
  The Borrower fails to file the Registration Statement within forty-five (45)
  days following the Closing Date (as defined in the Purchase Agreement) or obtain
  effectiveness with the Securities and Exchange Commission of the Registration
  Statement within one hundred five (105) days following the Closing Date (as
  defined in the Purchase Agreement) or such Registration Statement lapses in
  effect (or sales cannot otherwise be made thereunder effective, whether by reason
  of the Borrower’s failure to amend or supplement the prospectus included
  therein in accordance with the Registration Rights Agreement or otherwise) for
  more than ten (10) consecutive days or twenty (20) days in any twelve month
  period after the Registration Statement becomes effective; 

          4.4
  Breach of Covenants. The Borrower breaches any material
  covenant or other material term or condition contained in Sections 2.3, 2.6
  or 2.7 of this Note, or Sections 4(c), 4(e), 4(h), 4(i), 4(j) or 5 of the Purchase
  Agreement and such breach continues for a period of ten (10) days after written
  notice thereof to the Borrower from the Holder; 

          4.5
  Breach of Representations and Warranties. Any representation
  or warranty of the Borrower made herein or in any agreement, statement or certificate
  given in writing pursuant hereto or in connection herewith (including, without
  limitation, the Purchase Agreement and the Registration Rights Agreement), shall
  be false or misleading in any material respect when made and the breach of which
  has (or with the passage of time will have) a material adverse effect on the
  rights of the Holder with respect to this Note, the Purchase Agreement or the
  Registration Rights Agreement; 

          4.6
  Receiver or Trustee. The Borrower or any subsidiary
  of the Borrower shall make an assignment for the benefit of creditors, or apply
  for or consent to the appointment of a receiver or trustee for it or for a substantial
  part of its property or business, or such a receiver or trustee shall otherwise
  be appointed; 

          4.7
  Judgments. Any money judgment, writ or similar process
  shall be entered or filed against the Borrower or any subsidiary of the Borrower
  or any of its property or other assets for more than $50,000, and shall remain
  unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise
  consented to by the Holder, which consent will not be unreasonably withheld;

          4.8
  Bankruptcy. Bankruptcy, insolvency, reorganization
  or liquidation proceedings or other proceedings for relief under any bankruptcy
  law or any law for the relief of debtors shall be instituted by or against the
  Borrower or any subsidiary of the Borrower, unless such proceeding shall be
  stayed within thirty (30) days; 

          4.9
  Delisting of Common Stock. The Borrower shall fail
  to maintain the listing of the Common Stock on at least one of Nasdaq or an
  equivalent replacement exchange, the Nasdaq National Market, the New York Stock
  Exchange, or the American Stock Exchange; or 

          4.10
  Default Under Other Notes. An Event of Default has
  occurred and is continuing under any of the other Notes issued pursuant to the
  Purchase Agreement,then, upon 

15 

the occurrence and during the continuation of any Event of
Default specified in Section 4.1, 4.2, 4.3, 4.4, 4.5, 4.7, 4.9, or 4.10, at the
option of the Holders of a majority of the aggregate principal amount of the
outstanding Notes issued pursuant to the Purchase Agreement exercisable through
the delivery of written notice to the Borrower by such Holders (the “Default
Notice”), and upon the occurrence of an Event of Default specified in
Section 4.6 or 4.8 (unless, under Section 3.8, such proceeding shall be stayed
within 30 days), the Notes shall become immediately due and payable and the
Borrower shall pay to the Holder, in full satisfaction of its obligations
hereunder, an amount equal to the greater of (i) 130% times the
sum of (w) the then outstanding principal amount of this Note plus
(x) accrued and unpaid interest on the unpaid principal amount of this Note to
the date of payment (the “Mandatory Prepayment Date”) plus (y)
Default Interest, if any, on the amounts referred to in clauses (w) and/or (x)
plus (z) any amounts owed to the Holder pursuant to Sections 2.3 and
2.4(g) hereof or pursuant to Section 2(c) of the Registration Rights Agreement
(the then outstanding principal amount of this Note to the date of payment
plus the amounts referred to in clauses (x), (y) and (z) shall
collectively be known as the “Default Sum”) or (ii) the “parity value” of
the Default Sum to be prepaid, where parity value means (a) the highest number
of shares of Common Stock issuable upon conversion of or otherwise pursuant to
such Default Sum in accordance with Article II, treating the Trading Day
immediately preceding the Mandatory Prepayment Date as the “Conversion Date” for
purposes of determining the lowest applicable Conversion Price, unless the
Default Event arises as a result of a breach in respect of a specific Conversion
Date in which case such Conversion Date shall be the Conversion Date),
multiplied by (b) the highest Closing Price for the Common Stock during
the period beginning on the date of first occurrence of the Event of Default and
ending one day prior to the Mandatory Prepayment Date (the “Default
Amount”) and all other amounts payable hereunder shall immediately become
due and payable, all without demand, presentment or notice, all of which hereby
are expressly waived, together with all costs, including, without limitation,
legal fees and expenses, of collection, and the Holder shall be entitled to
exercise all other rights and remedies available at law or in equity. If the
Borrower fails to pay the Default Amount within five (5) business days of
written notice that such amount is due and payable, then the Holder shall have
the right at any time, so long as the Borrower remains in default (and so long
and to the extent that there are sufficient authorized shares), to require the
Borrower, upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower equal to the
Default Amount divided by the Conversion Price then in effect. 

ARTICLE V. MISCELLANEOUS 

          5.1
  Failure or Indulgence Not Waiver. No failure or delay
  on the part of the Holder in the exercise of any power, right or privilege hereunder
  shall operate as a waiver thereof, nor shall any single or partial exercise
  of any such power, right or privilege preclude other or further exercise thereof
  or of any other right, power or privileges. All rights and remedies existing
  hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise
  available. 

          5.2
  Notices. Any notice herein required or permitted to
  be given shall be in writing and may be personally served or delivered by courier
  or sent by United States mail and 

16 

shall be deemed to have been given upon receipt if personally
served (which shall include telephone line facsimile transmission) or sent by
courier or three (3) days after being deposited in the United States mail,
certified, with postage pre-paid and properly addressed, if sent by mail. For
the purposes hereof, the address of the Holder shall be as shown on the records
of the Borrower; and the address of the Borrower shall be 1925 Century Park
East, Suite 500, Los Angeles, California 90067, Attn: Chief Executive Officer,
facsimile number: 403-287-8804. Both the Holder and the Borrower may
change the address for service by service of written notice to the other as
herein provided. 

          5.3
  Amendments. This Note and any provision hereof may
  only be amended by an instrument in writing signed by the Borrower and the Holder.
  The term “Note” and all reference thereto, as used throughout this
  instrument, shall mean this instrument (and the other Notes issued pursuant
  to the Purchase Agreement) as originally executed, or if later amended or supplemented,
  then as so amended or supplemented. 

          5.4
  Assignability. This Note shall be binding upon the
  Borrower and its successors and assigns, and shall inure to be the benefit of
  the Holder and its successors and assigns. Each transferee of this Note must
  be an “accredited investor” (as defined in Rule 501(a) of the 1933
  Act). Notwithstanding anything in this Note to the contrary, this Note may be
  pledged as collateral in connection with a bona fide margin account
  or other lending arrangement. 

          5.5
  Cost of Collection. If default is made in the payment
  of this Note, the Borrower shall pay the Holder hereof costs of collection,
  including reasonable attorneys’ fees. 

          5.6
  Governing Law. THIS NOTE SHALL BE ENFORCED, GOVERNED
  BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE
  TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD
  TO THE PRINCIPLES OF CONFLICT OF LAWS. THE BORROWER HEREBY SUBMITS TO THE EXCLUSIVE
  JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK
  WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS NOTE, THE AGREEMENTS ENTERED
  INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
  BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
  OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
  UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
  SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN
  SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
  PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN
  ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
  JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY
  WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE
  FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING
  PARTY IN CONNECTION WITH SUCH DISPUTE. 

17 

          5.7
  Certain Amounts. Whenever pursuant to this Note the
  Borrower is required to pay an amount in excess of the outstanding principal
  amount (or the portion thereof required to be paid at that time) plus accrued
  and unpaid interest plus Default Interest on such interest, the Borrower and
  the Holder agree that the actual damages to the Holder from the receipt of cash
  payment on this Note may be difficult to determine and the amount to be so paid
  by the Borrower represents stipulated damages and not a penalty and is intended
  to compensate the Holder in part for loss of the opportunity to convert this
  Note and to earn a return from the sale of shares of Common Stock acquired upon
  conversion of this Note at a price in excess of the price paid for such shares
  pursuant to this Note. The Borrower and the Holder hereby agree that such amount
  of stipulated damages is not plainly disproportionate to the possible loss to
  the Holder from the receipt of a cash payment without the opportunity to convert
  this Note into shares of Common Stock. 

          5.8
  Allocations of Maximum Share Amount and Reserved Amount.
  The Maximum Share Amount and Reserved Amount shall be allocated pro rata
  among the Holders of Notes based on the principal amount of such Notes issued
  to each Holder. Each increase to the Maximum Share Amount and Reserved Amount
  shall be allocated pro rata among the Holders of Notes based on the principal
  amount of such Notes held by each Holder at the time of the increase in the
  Maximum Share Amount or Reserved Amount. In the event a Holder shall sell or
  otherwise transfer any of such Holder’s Notes, each transferee shall be
  allocated a pro rata portion of such transferor’s Maximum Share Amount
  and Reserved Amount. Any portion of the Maximum Share Amount or Reserved Amount
  which remains allocated to any person or entity which does not hold any Notes
  shall be allocated to the remaining Holders of Notes, pro rata based on the
  principal amount of such Notes then held by such Holders. 

          5.9
  Damages Shares. The shares of Common Stock that may
  be issuable to the Holder pursuant to Sections 2.3 and 2.4(g) hereof and pursuant
  to Section 2(c) of the Registration Rights Agreement (“Damages Shares”)
  shall be treated as Common Stock issuable upon conversion of this Note for all
  purposes hereof and shall be subject to all of the limitations and afforded
  all of the rights of the other shares of Common Stock issuable hereunder, including
  without limitation, the right to be included in the Registration Statement filed
  pursuant to the Registration Rights Agreement. For purposes of calculating interest
  payable on the outstanding principal amount hereof, except as otherwise provided
  herein, amounts convertible into Damages Shares (“Damages Amounts”)
  shall not bear interest but must be converted prior to the conversion of any
  outstanding principal amount hereof, until the outstanding Damages Amounts is
  zero. 

          5.10
  Denominations. At the request of the Holder, upon surrender
  of this Note, the Borrower shall promptly issue new Notes in the aggregate outstanding
  principal amount hereof, in the form hereof, in such denominations of at least
  $50,000 as the Holder shall request. 

          5.11
  Purchase Agreement. By its acceptance of this Note,
  each Holder agrees to be bound by the applicable terms of the Purchase Agreement.

          5.12
  Notice of Corporate Events. Except as otherwise provided
  below, the Holder of this Note shall have no rights as a Holder of Common Stock
  unless and only to the 

18 

extent that it converts this Note into Common Stock. The
Borrower shall provide the Holder with prior notification of any meeting of the
Borrower’s shareholders (and copies of proxy materials and other information
sent to shareholders). In the event of any taking by the Borrower of a record of
its shareholders for the purpose of determining shareholders who are entitled to
receive payment of any dividend or other distribution, any right to subscribe
for, purchase or otherwise acquire (including by way of merger, consolidation,
reclassification or recapitalization) any share of any class or any other
securities or property, or to receive any other right, or for the purpose of
determining shareholders who are entitled to vote in connection with any
proposed sale, lease or conveyance of all or substantially all of the assets of
the Borrower or any proposed liquidation, dissolution or winding up of the
Borrower, the Borrower shall mail a notice to the Holder, at least twenty (20)
days prior to the record date specified therein (or thirty (30) days prior to
the consummation of the transaction or event, whichever is earlier), of the date
on which any such record is to be taken for the purpose of such dividend,
distribution, right or other event, and a brief statement regarding the amount
and character of such dividend, distribution, right or other event to the extent
known at such time. The Borrower shall make a public announcement of any event
requiring notification to the Holder hereunder substantially simultaneously with
the notification to the Holder in accordance with the terms of this Section
4.12. 

          5.13
  Remedies. The Borrower acknowledges that a breach by
  it of its obligations hereunder will cause irreparable harm to the Holder, by
  vitiating the intent and purpose of the transaction contemplated hereby. Accordingly,
  the Borrower acknowledges that the remedy at law for a breach of its obligations
  under this Note will be inadequate and agrees, in the event of a breach or threatened
  breach by the Borrower of the provisions of this Note, that the Holder shall
  be entitled, in addition to all other available remedies at law or in equity,
  and in addition to the penalties assessable herein, to an injunction or injunctions
  restraining, preventing or curing any breach of this Note and to enforce specifically
  the terms and provisions thereof, without the necessity of showing economic
  loss and without any bond or other security being required. 

ARTICLE VI. CALL OPTION 

          6.1
  Call Option. Notwithstanding anything to the contrary
  contained in this Article VI, so long as (i) no Event of Default or Trading
  Market Prepayment Event shall have occurred and be continuing, (ii) the Borrower
  has a sufficient number of authorized shares of Common Stock reserved for issuance
  upon full conversion of the Notes, then at any time after the Issue Date, and
  (iii) the Common Stock is trading at or below the Initial Purchase Price, the
  Borrower shall have the right, exercisable on not less than ten (10) Trading
  Days prior written notice to the Holders of the Notes (which notice may not
  be sent to the Holders of the Notes until the Borrower is permitted to prepay
  the Notes pursuant to this Section 6.1), to prepay all or a portion of the outstanding
  Notes in accordance with this Section 6.1. Any notice of prepayment hereunder
  (an “Optional Prepayment”) shall be delivered to the Holders
  of the Notes at their registered addresses appearing on the books and records
  of the Borrower and shall state (1) that the Borrower is exercising its right
  to prepay all or a portion of the Notes issued on the Issue Date, (2) the date
  of prepayment and (3) the amount of the prepayment and the amount of any 

19 

Additional Payment as applicable (the “Optional Prepayment
Notice”). On the date fixed for prepayment (the “Optional Prepayment
Date”), the Borrower shall make payment of the Optional Prepayment Amount
(as defined below) to or upon the order of the Holders as specified by the
Holders in writing to the Borrower at least one (1) business day prior to the
Optional Prepayment Date. If the Borrower exercises its right to prepay the
Notes, the Borrower shall make payment to the holders of an amount in cash (the
“Optional Prepayment Amount”) equal to either (i) 125% (for prepayments
occurring within thirty (30) days of the Issue Date), (ii) 135% for prepayments
occurring between thirty-one (31) and sixty (60) days of the Issue Date, or
(iii) 145% (for prepayments occurring after the sixtieth (60th) day
following the Issue Date), multiplied by the sum of (w) the then outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the
unpaid principal amount of this Note to the Optional Prepayment Date plus
(y) Default Interest, if any, on the amounts referred to in clauses (w) and (x)
plus (z) any amounts owed to the Holder pursuant to Sections 2.3 and
2.4(g) hereof or pursuant to Section 2(c) of the Registration Rights Agreement
(the then outstanding principal amount of this Note to the date of payment
plus the amounts referred to in clauses (x), (y) and (z) shall
collectively be known as the “Optional Prepayment Sum”). Notwithstanding
notice of an Optional Prepayment, the Holders shall at all times prior to the
Optional Prepayment Date maintain the right to convert all or any portion of the
Notes in accordance with Article II and any portion of Notes so converted after
receipt of an Optional Prepayment Notice and prior to the Optional Prepayment
Date set forth in such notice and payment of the aggregate Optional Prepayment
Amount shall be deducted from the principal amount of Notes which are otherwise
subject to prepayment pursuant to such notice. If the Borrower delivers an
Optional Prepayment Notice and fails to pay the Optional Prepayment Amount due
to the Holders of the Notes within two (2) business days following the Optional
Prepayment Date, the Borrower shall forever forfeit its right to redeem the
Notes pursuant to this Section 6.1. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

20 

     IN WITNESS WHEREOF,
Borrower has caused this Note to be signed in its name by its duly authorized
officer this ____ day of _______, 20__. 

	 	 	BANYAN CORPORATION 
	 	 	  
	 	 	  
	 	 	  
	 	By:	 
	 	 	Michael J. Gelmon 
	 	 	Chief Executive Officer 

21 

EXHIBIT A 

NOTICE OF CONVERSION
(To be Executed by the Registered
Holder 
in order to Convert the Notes) 

          The
  undersigned hereby irrevocably elects to convert $__________principal amount
  of the Note (defined below) into shares of common stock, no par value per share
  (“Common Stock”), of Banyan Corporation, an Oregon corporation
  (the “Borrower”) according to the conditions of the convertible
  Notes of the Borrower dated as of ____________, 20____ (the “Notes”),
  as of the date written below. If securities 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. No
  fee will be charged to the Holder for any conversion, except for transfer taxes,
  if any. A copy of each Note is attached hereto (or evidence of loss, theft or
  destruction thereof). 

          The
  Borrower shall electronically transmit the Common Stock issuable pursuant to
  this Notice of Conversion to the account of the undersigned or its nominee with
  DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).

Name of DTC Prime Broker:
_____________________________________________________________
Account Number:
____________________________________________________________________

          In
  lieu of receiving shares of Common Stock issuable pursuant to this Notice of
  Conversion by way of a DWAC Transfer, the undersigned hereby requests that the
  Borrower issue a certificate or certificates for the number of shares of Common
  Stock set forth below (which numbers are based on the Holder’s calculation
  attached hereto) in the name(s) specified immediately below or, if additional
  space is necessary, on an attachment hereto: 

Name:
____________________________________________________________________________
Address:
__________________________________________________________________________

          The
  undersigned represents and warrants that all offers and sales by the undersigned
  of the securities issuable to the undersigned upon conversion of the Notes shall
  be made pursuant to registration of the securities under the Securities Act
  of 1933, as amended (the “Act”), or pursuant to an exemption
  from registration under the Act. 

Date of Conversion: ___________________________

  Applicable Conversion Price: ____________________

  Number of Shares of Common Stock to be Issued
Pursuant to Conversion of the
Notes:______________

  Signature: ___________________________________

  Name: ______________________________________

  Address: ____________________________________

22 

          The
  Borrower shall issue and deliver shares of Common Stock to an overnight courier
  not later than three business days following receipt of the original Note(s)
  to be converted, and shall make payments pursuant to the Notes for the number
  of business days such issuance and delivery is late.

23 

EXHIBIT B 

OPTIONAL PREPAYMENT ELECTION NOTICE 

(To be executed by the Borrower in order to prepay the Monthly
Amount)

[Name and Address of Borrower] 

Borrower hereby elects to prepay the Monthly Amount due on
[specify applicable Repayment Date] under the Convertible Term Note issued by
BANYAN CORPORATION dated March 13, 2007 subject to the conditions set forth in
Article II of such Note. 

	Date: 	 	 	BANYAN CORPORATION 
	 	  	 	 	  
	 	  	 	 	  
	 	  	 	By:	 
	 	  	 	 	   Michael J. Gelmon 
	 	  	 	 	   Chief Executive OfficerFiled by Automated Filing Services Inc. (604) 609-0244 - Banyan Corporation - Exhibit 4.17

THIS WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS
WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
EXCEPT AS OTHERWISE SET FORTH HEREIN OR IN A SECURITIES PURCHASE AGREEMENT DATED
AS OF MARCH 13, 2007, NEITHER THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD,
TRANSFERRED OR ASSIGNED IN THE 

ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH
SECURITIES UNDER SAID ACT OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND
SCOPE, CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT
REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144
OR REGULATION S UNDER SUCH ACT. 

Right to 
Purchase 
_______
Shares of 
Common

Stock, no par
value per
share 

STOCK PURCHASE WARRANT 

          THIS
  CERTIFIES THAT, for value received, _______________or its registered assigns,
  is entitled to purchase from BANYAN CORPORATION, an Oregon corporation (the
  “Company”), at any time or from time to time during the period specified
  in Paragraph 2 hereof, ___________fully paid and nonassessable shares of the
  Company’s Common Stock, no par value per share (the “Common Stock”),
  at an exercise price per share equal to $.001 (the “Exercise Price”).
  The term “Warrant Shares,” as used herein, refers to the shares of
  Common Stock purchasable hereunder. The Warrant Shares and the Exercise Price
  are subject to adjustment as provided in Paragraph 4 hereof. The term “Warrants”
  means this Warrant and the other warrants issued pursuant to that certain Securities
  Purchase Agreement, dated ______, 20__, by and among the Company and the Buyers
  listed on the execution page thereof (the “Securities Purchase Agreement”),
  including any additional warrants issuable pursuant thereto.

          This
  Warrant is subject to the following terms, provisions, and conditions:

          1.
  Manner of Exercise; Issuance of Certificates; Payment for Shares.
  Subject to the provisions hereof, this Warrant may be exercised by the holder
  hereof, in whole or in part, by the surrender of this Warrant, together with
  a completed exercise agreement in the form attached hereto (the “Exercise
  Agreement”), to the Company during normal business hours on any business
  day at the Company’s principal executive offices (or such other office
  or agency of the 

Company as it may designate by notice to the holder hereof),
and upon (i) payment to the Company in cash, by certified or official bank check
or by wire transfer for the account of the Company of the Exercise Price for the
Warrant Shares specified in the Exercise Agreement or (ii) if the resale of the
Warrant Shares by the holder is not then registered pursuant to an effective
registration statement under the Securities Act of 1933, as amended (the
“Securities Act”), delivery to the Company of a written notice of an election to
effect a “Cashless Exercise” (as defined in Section 11(c) below) for the Warrant
Shares specified in the Exercise Agreement.

          The
  Warrant Shares so purchased shall be deemed to be issued to the holder hereof
  or such holder’s designee, as the record owner of such shares, as of the
  close of business on the date on which this Warrant shall have been surrendered,
  the completed Exercise Agreement shall have been delivered, and payment shall
  have been made for such shares as set forth above. Certificates for the Warrant
  Shares so purchased, representing the aggregate number of shares specified in
  the Exercise Agreement, shall be delivered to the holder hereof within a reasonable
  time, not exceeding three (3) business days, after this Warrant shall have been
  so exercised. The certificates so delivered shall be in such denominations as
  may be requested by the holder hereof and shall be registered in the name of
  such holder or such other name as shall be designated by such holder. If this
  Warrant shall have been exercised only in part, then, unless this Warrant has
  expired, the Company shall, at its expense, at the time of delivery of such
  certificates, deliver to the holder a new Warrant representing the number of
  shares with respect to which this Warrant shall not then have been exercised.
  In addition to all other available remedies at law or in equity, if the Company
  fails to deliver certificates for the Warrant Shares within three (3) business
  days after this Warrant is exercised, then the Company shall pay to the holder
  in cash a penalty (the “Penalty”) equal to 2% of the number of Warrant
  Shares that the holder is entitled to multiplied by the Market Price (as hereinafter
  defined) for each day that the Company fails to deliver certificates for the
  Warrant Shares. For example, if the holder is entitled to 100,000 Warrant Shares
  and the Market Price is $2.00, then the Company shall pay to the holder $4,000
  for each day that the Company fails to deliver certificates for the Warrant
  Shares. The Penalty shall be paid to the holder by the fifth day of the month
  following the month in which it has accrued.

           Notwithstanding
  anything in this Warrant to the contrary, in no event shall the holder of this
  Warrant be entitled to exercise a number of Warrants (or portions thereof) in
  excess of the number of Warrants (or portions thereof) upon exercise of which
  the sum of (i) the number of shares of Common Stock beneficially owned by the
  holder and its affiliates (other than shares of Common Stock which may be deemed
  beneficially owned through the ownership of the unexercised Warrants and the
  unexercised or unconverted portion of any other securities of the Company (including
  the Notes (as defined in the Securities Purchase Agreement)) subject to a limitation
  on conversion or exercise analogous to the limitation contained herein) and
  (ii) the number of shares of Common Stock issuable upon exercise of the Warrants
  (or portions thereof) with respect to which the determination described herein
  is being made, would result in beneficial ownership by the holder and its affiliates
  of more than 4.9% of the outstanding shares of Common Stock. For purposes of
  the immediately preceding sentence, beneficial ownership shall be determined
  in accordance with Section 13(d) of the Securities Exchange Act of 1934, as
  amended, and Regulation 13D-G thereunder, except as otherwise provided in clause
  (i) of the preceding sentence. Notwithstanding anything to the contrary contained
  herein, the limitation on exercise of this Warrant set forth herein may not
  be amended without (i) the written consent of the holder hereof and the Company
  and (ii) the approval of a majority of shareholders of the Company. 

- 2 - 

          2.
  Period of Exercise. This Warrant is exercisable at
  any time or from time to time on or after the date on which this Warrant is
  issued and delivered pursuant to the terms of the Securities Purchase Agreement
  and before 6:00 p.m., New York, New York time on the seventh (7th)
  anniversary of the date of issuance (the “Exercise Period”). 

          3.
  Certain Agreements of the Company. The Company hereby
  covenants and agrees as follows: 

                    (a)
  Shares to be Fully Paid. All Warrant Shares will, upon
  issuance in accordance with the terms of this Warrant, be validly issued, fully
  paid, and nonassessable and free from all taxes, liens, and charges with respect
  to the issue thereof. 

                    (b)
  Reservation of Shares. Subject to the Stockholder Approval
  (as defined in the Securities Purchase Agreement), during the Exercise Period,
  the Company shall at all times have authorized, and reserved for the purpose
  of issuance upon exercise of this Warrant, a sufficient number of shares of
  Common Stock to provide for the exercise of this Warrant. 

                    (c)
  Listing. The Company shall promptly secure the listing
  of the shares of Common Stock issuable upon exercise of the Warrant upon each
  national securities exchange or automated quotation system, if any, upon which
  shares of Common Stock are then listed (subject to official notice of issuance
  upon exercise of this Warrant) and shall maintain, so long as any other shares
  of Common Stock shall be so listed, such listing of all shares of Common Stock
  from time to time issuable upon the exercise of this Warrant; and the Company
  shall so list on each national securities exchange or automated quotation system,
  as the case may be, and shall maintain such listing of, any other shares of
  capital stock of the Company issuable upon the exercise of this Warrant if and
  so long as any shares of the same class shall be listed on such national securities
  exchange or automated quotation system. 

                    (d)
  Certain Actions Prohibited. The Company will not, by
  amendment of its charter 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 by it hereunder, 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 such action as may reasonably be requested by the holder
  of this Warrant in order to protect the exercise privilege of the holder of
  this Warrant against dilution or other impairment, consistent with the tenor
  and purpose of this Warrant. Without limiting the generality of the foregoing,
  the Company (i) will not increase the par value of any shares of Common Stock
  receivable upon the exercise of this Warrant above the Exercise Price then in
  effect, and (ii) will take all such actions as may be necessary or appropriate
  in order that the Company may validly and legally issue fully paid and nonassessable
  shares of Common Stock upon the exercise of this Warrant. 

                    (e)
  Successors and Assigns. This Warrant will be binding
  upon any entity succeeding to the Company by merger, consolidation, or acquisition
  of all or substantially all the Company’s assets. 

           4.
  Antidilution Provisions. During the Exercise Period,
  the Exercise Price and the number of Warrant Shares shall be subject to adjustment
  from time to time as provided in this Paragraph 4. 

- 3 - 

          In
  the event that any adjustment of the Exercise Price as required herein results
  in a fraction of a cent, such Exercise Price shall be rounded up to the nearest
  cent. 

                    (a)
  Adjustment of Exercise Price and Number of Shares upon Issuance of
  Common Stock. Except as otherwise provided in Paragraphs
  4(c) and 4(e) hereof, if and whenever on or after the date of issuance of this
  Warrant, the Company issues or sells, or in accordance with Paragraph 4(b) hereof
  is deemed to have issued or sold, any shares of Common Stock for no consideration
  or for a consideration per share (before deduction of reasonable expenses or
  commissions or underwriting discounts or allowances in connection therewith)
  less than the Market Price on the date of issuance (a “Dilutive Issuance”),
  then immediately upon the Dilutive Issuance, the Exercise Price will be reduced
  to a price determined by multiplying the Exercise Price in effect immediately
  prior to the Dilutive Issuance by a fraction, (i) the numerator of which is
  an amount equal to the sum of (x) the number of shares of Common Stock actually
  outstanding immediately prior to the Dilutive Issuance, plus (y) the quotient
  of the aggregate consideration, calculated as set forth in Paragraph 4(b) hereof,
  received by the Company upon such Dilutive Issuance divided by the Market Price
  in effect immediately prior to the Dilutive Issuance, and (ii) the denominator
  of which is the total number of shares of Common Stock Deemed Outstanding (as
  defined below) immediately after the Dilutive Issuance.

                    (b)
  Effect on Exercise Price of Certain Events. For purposes
  of determining the adjusted Exercise Price under Paragraph 4(a) hereof, the
  following will be applicable: 

                              (i)
  Issuance of Rights or Options. If the Company in any
  manner issues or grants any warrants, rights or options, whether or not immediately
  exercisable, to subscribe for or to purchase Common Stock or other securities
  convertible into or exchangeable for Common Stock (“Convertible Securities”)
  (such warrants, rights and options to purchase Common Stock or Convertible Securities
  are hereinafter referred to as “Options”) and the price per share
  for which Common Stock is issuable upon the exercise of such Options is less
  than the Market Price on the date of issuance or grant of such Options, then
  the maximum total number of shares of Common Stock issuable upon the exercise
  of all such Options will, as of the date of the issuance or grant of such Options,
  be deemed to be outstanding and to have been issued and sold by the Company
  for such price per share. For purposes of the preceding sentence, the “price
  per share for which Common Stock is issuable upon the exercise of such Options”
  is determined by dividing (i) the total amount, if any, received or receivable
  by the Company as consideration for the issuance or granting of all such Options,
  plus the minimum aggregate amount of additional consideration, if any, payable
  to the Company upon the exercise of all such Options, plus, in the case of Convertible
  Securities issuable upon the exercise of such Options, the minimum aggregate
  amount of additional consideration payable upon the conversion or exchange thereof
  at the time such Convertible Securities first become convertible or exchangeable,
  by (ii) the maximum total number of shares of Common Stock issuable upon the
  exercise of all such Options (assuming full conversion of Convertible Securities,
  if applicable). No further adjustment to the Exercise Price will be made upon
  the actual issuance of such Common Stock upon the exercise of such Options or
  upon the conversion or exchange of Convertible Securities issuable upon exercise
  of such Options. 

- 4 - 

                              (ii)
  Issuance of Convertible Securities. If the Company
  in any manner issues or sells any Convertible Securities, whether or not immediately
  convertible (other than where the same are issuable upon the exercise of Options)
  and the price per share for which Common Stock is issuable upon such conversion
  or exchange is less than the Market Price on the date of issuance, then the
  maximum total number of shares of Common Stock issuable upon the conversion
  or exchange of all such Convertible Securities will, as of the date of the issuance
  of such Convertible Securities, be deemed to be outstanding and to have been
  issued and sold by the Company for such price per share. For the purposes of
  the preceding sentence, the “price per share for which Common Stock is
  issuable upon such conversion or exchange” is determined by dividing (i)
  the total amount, if any, received or receivable by the Company as consideration
  for the issuance or sale of all such Convertible Securities, plus the minimum
  aggregate amount of additional consideration, if any, payable to the Company
  upon the conversion or exchange thereof at the time such Convertible Securities
  first become convertible or exchangeable, by (ii) the maximum total number of
  shares of Common Stock issuable upon the conversion or exchange of all such
  Convertible Securities. No further adjustment to the Exercise Price will be
  made upon the actual issuance of such Common Stock upon conversion or exchange
  of such Convertible Securities. 

                              (iii)
  Change in Option Price or Conversion Rate. If there
  is a change at any time in (i) the amount of additional consideration payable
  to the Company upon the exercise of any Options; (ii) the amount of additional
  consideration, if any, payable to the Company upon the conversion or exchange
  of any Convertible Securities; or (iii) the rate at which any Convertible Securities
  are convertible into or exchangeable for Common Stock (other than under or by
  reason of provisions designed to protect against dilution), the Exercise Price
  in effect at the time of such change will be readjusted to the Exercise Price
  which would have been in effect at such time had such Options or Convertible
  Securities still outstanding provided for such changed additional consideration
  or changed conversion rate, as the case may be, at the time initially granted,
  issued or sold. 

                              (iv)
  Treatment of Expired Options and Unexercised Convertible
  Securities. If, in any case, the total number of shares
  of Common Stock issuable upon exercise of any Option or upon conversion or exchange
  of any Convertible Securities is not, in fact, issued and the rights to exercise
  such Option or to convert or exchange such Convertible Securities shall have
  expired or terminated, the Exercise Price then in effect will be readjusted
  to the Exercise Price which would have been in effect at the time of such expiration
  or termination had such Option or Convertible Securities, to the extent outstanding
  immediately prior to such expiration or termination (other than in respect of
  the actual number of shares of Common Stock issued upon exercise or conversion
  thereof), never been issued. 

                              (v)
  Calculation of Consideration Received. If any Common
  Stock, Options or Convertible Securities are issued, granted or sold for cash,
  the consideration received therefor for purposes of this Warrant will be the
  amount received by the Company therefor, before deduction of reasonable commissions,
  underwriting discounts or allowances or other reasonable expenses paid or incurred
  by the Company in connection with such issuance, grant or sale. In case any
  Common Stock, Options or Convertible Securities are issued or sold for a consideration
  part or all of which shall be other than cash, the amount of the consideration
  other than cash received by the Company will be the fair value of such consideration,
  except where 

- 5 - 

such consideration consists of securities, in which case the
amount of consideration received by the Company will be the Market Price thereof
as of the date of receipt. In case any Common Stock, Options or Convertible
Securities are issued in connection with any acquisition, merger or
consolidation in which the Company is the surviving corporation, the amount of
consideration therefor will be deemed to be the fair value of such portion of
the net assets and business of the non-surviving corporation as is attributable
to such Common Stock, Options or Convertible Securities, as the case may be. The
fair value of any consideration other than cash or securities will be determined
in good faith by the Board of Directors of the Company. 

                              (vi)
  Exceptions to Adjustment of Exercise Price. No adjustment
  to the Exercise Price will be made (i) upon the exercise of any warrants, options
  or convertible securities granted, issued and outstanding on the date of issuance
  of this Warrant; (ii) upon the grant or exercise of any stock or options which
  may hereafter be granted or exercised under any employee benefit plan, stock
  option plan or restricted stock plan of the Company now existing or to be implemented
  in the future, so long as the issuance of such stock or options is approved
  by a majority of the independent members of the Board of Directors of the Company
  or a majority of the members of a committee of independent directors established
  for such purpose; or (iii) upon the exercise of the Warrants. 

                    (c)
  Subdivision or Combination of Common Stock. If the
  Company at any time subdivides (by any stock split, stock dividend, recapitalization,
  reorganization, reclassification or otherwise) the shares of Common Stock acquirable
  hereunder into a greater number of shares, then, after the date of record for
  effecting such subdivision, the Exercise Price in effect immediately prior to
  such subdivision will be proportionately reduced. If the Company at any time
  combines (by reverse stock split, recapitalization, reorganization, reclassification
  or otherwise) the shares of Common Stock acquirable hereunder into a smaller
  number of shares, then, after the date of record for effecting such combination,
  the Exercise Price in effect immediately prior to such combination will be proportionately
  increased. 

                    (d)
  Adjustment in Number of Shares. Upon each adjustment
  of the Exercise Price pursuant to the provisions of this Paragraph 4, the number
  of shares of Common Stock issuable upon exercise of this Warrant shall be adjusted
  by multiplying a number equal to the Exercise Price in effect immediately prior
  to such adjustment by the number of shares of Common Stock issuable upon exercise
  of this Warrant immediately prior to such adjustment and dividing the product
  so obtained by the adjusted Exercise Price. 

                    (e)
  Consolidation, Merger or Sale. In case of any consolidation
  of the Company with, or merger of the Company into any other corporation, or
  in case of any sale or conveyance of all or substantially all of the assets
  of the Company other than in connection with a plan of complete liquidation
  of the Company, then as a condition of such consolidation, merger or sale or
  conveyance, adequate provision will be made whereby the holder of this Warrant
  will have the right to acquire and receive upon exercise of this Warrant in
  lieu of the shares of Common Stock immediately theretofore acquirable upon the
  exercise of this Warrant, such shares of stock, securities or assets as may
  be issued or payable with respect to or in exchange for the number of shares
  of Common Stock immediately theretofore acquirable and receivable upon exercise
  of this Warrant had such consolidation, merger or sale or conveyance not taken
  place. In any such case, the Company will make appropriate provision to insure
  that the 

- 6 - 

provisions of this Paragraph 4 hereof will thereafter be
applicable as nearly as may be in relation to any shares of stock or securities
thereafter deliverable upon the exercise of this Warrant. The Company will not
effect any consolidation, merger or sale or conveyance unless prior to the
consummation thereof, the successor corporation (if other than the Company)
assumes by written instrument the obligations under this Paragraph 4 and the
obligations to deliver to the holder of this Warrant such shares of stock,
securities or assets as, in accordance with the foregoing provisions, the holder
may be entitled to acquire. 

                    (f)
  Distribution of Assets. In case the Company shall declare
  or make any distribution of its assets (including cash) to holders of Common
  Stock as a partial liquidating dividend, by way of return of capital or otherwise,
  then, after the date of record for determining shareholders entitled to such
  distribution, but prior to the date of distribution, the holder of this Warrant
  shall be entitled upon exercise of this Warrant for the purchase of any or all
  of the shares of Common Stock subject hereto, to receive the amount of such
  assets which would have been payable to the holder had such holder been the
  holder of such shares of Common Stock on the record date for the determination
  of shareholders entitled to such distribution. 

                    (g)
  Notice of Adjustment. Upon the occurrence of any event
  which requires any adjustment of the Exercise Price, then, and in each such
  case, the Company shall give notice thereof to the holder of this Warrant, which
  notice shall state the Exercise Price resulting from such adjustment and the
  increase or decrease in the number of Warrant Shares purchasable at such price
  upon exercise, setting forth in reasonable detail the method of calculation
  and the facts upon which such calculation is based. Such calculation shall be
  certified by the Chief Financial Officer of the Company. 

                    (h)
  Minimum Adjustment of Exercise Price. No adjustment
  of the Exercise Price shall be made in an amount of less than 1% of the Exercise
  Price in effect at the time such adjustment is otherwise required to be made,
  but any such lesser adjustment shall be carried forward and shall be made at
  the time and together with the next subsequent adjustment which, together with
  any adjustments so carried forward, shall amount to not less than 1% of such
  Exercise Price. 

                    (i)
  No Fractional Shares. No fractional shares of Common
  Stock are to be issued upon the exercise of this Warrant, but the Company shall
  pay a cash adjustment in respect of any fractional share which would otherwise
  be issuable in an amount equal to the same fraction of the Market Price of a
  share of Common Stock on the date of such exercise. 

                    (j)
  Other Notices. In case at any time: 

                              (i)
  the Company shall declare any dividend upon the Common Stock payable in
  shares of stock of any class or make any other distribution (including dividends
  or distributions payable in cash out of retained earnings) to the holders of
  the Common Stock; 

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

- 7 - 

                              (iii)
  there shall be any capital reorganization of the Company, or reclassification
  of the Common Stock, or consolidation or merger of the Company with or into,
  or sale of all or substantially all its assets to, another corporation or entity;
  or 

                              (iv)
  there shall be a voluntary or involuntary dissolution, liquidation or winding
  up of the Company; then, in each such case, the Company shall give to the holder
  of this Warrant (a) notice of the date on which the books of the Company shall
  close or a record shall be taken for determining the holders of Common Stock
  entitled to receive any such dividend, distribution, or subscription rights
  or for determining the holders of Common Stock entitled to vote in respect of
  any such reorganization, reclassification, consolidation, merger, sale, dissolution,
  liquidation or winding-up and (b) in the case of any such reorganization, reclassification,
  consolidation, merger, sale, dissolution, liquidation or winding-up, notice
  of the date (or, if not then known, a reasonable approximation thereof by the
  Company) when the same shall take place. Such notice shall also specify the
  date on which the holders of Common Stock shall be entitled to receive such
  dividend, distribution, or subscription rights or to exchange their Common Stock
  for stock or other securities or property deliverable upon such reorganization,
  reclassification, consolidation, merger, sale, dissolution, liquidation, or
  winding-up, as the case may be. Such notice shall be given at least 30 days
  prior to the record date or the date on which the Company’s books are closed
  in respect thereto. Failure to give any such notice or any defect therein shall
  not affect the validity of the proceedings referred to in clauses (i), (ii),
  (iii) and (iv) above. 

                    (k)
  Certain Events. If any event occurs of the type contemplated
  by the adjustment provisions of this Paragraph 4 but not expressly provided
  for by such provisions, the Company will give notice of such event as provided
  in Paragraph 4(g) hereof, and the Company’s Board of Directors will make
  an appropriate adjustment in the Exercise Price and the number of shares of
  Common Stock acquirable upon exercise of this Warrant so that the rights of
  the holder shall be neither enhanced nor diminished by such event. 

                    (l)
  Certain Definitions.

                              (i)
  “Common Stock Deemed Outstanding”
  shall mean the number of shares of Common Stock actually outstanding (not including
  shares of Common Stock held in the treasury of the Company), plus (x) pursuant
  to Paragraph 4(b)(i) hereof, the maximum total number of shares of Common Stock
  issuable upon the exercise of Options, as of the date of such issuance or grant
  of such Options, if any, and (y) pursuant to Paragraph 4(b)(ii) hereof, the
  maximum total number of shares of Common Stock issuable upon conversion or exchange
  of Convertible Securities, as of the date of issuance of such Convertible Securities,
  if any.

                              (ii)
  “Market Price,” as of any date, (i)
  means the average of the last reported sale prices for the shares of Common
  Stock on the OTCBB for the five (5) Trading Days immediately preceding such
  date as reported by Bloomberg, or (ii) if the OTCBB is not the principal trading
  market for the shares of Common Stock, the average of the last reported sale
  prices on the principal trading market for the Common Stock during the same
  period as reported by Bloomberg, or (iii) if market value cannot be calculated
  as of such date on any of the foregoing bases, the Market Price shall be the
  fair market value as reasonably determined in good faith by (a) the Board of
  Directors of the Company or, at the option of a majority-in-interest 

- 8 - 

of the holders of the outstanding Warrants by (b) an
independent investment bank of nationally recognized standing in the valuation
of businesses similar to the business of the corporation. The manner of
determining the Market Price of the Common Stock set forth in the foregoing
definition shall apply with respect to any other security in respect of which a
determination as to market value must be made hereunder. 

                              (iii)
  “Common Stock,” for purposes of this
  Paragraph 4, includes the Common Stock, no par value per share, and any additional
  class of stock of the Company having no preference as to dividends or distributions
  on liquidation, provided that the shares purchasable pursuant to this Warrant
  shall include only shares of Common Stock, no par value per share, in respect
  of which this Warrant is exercisable, or shares resulting from any subdivision
  or combination of such Common Stock, or in the case of any reorganization, reclassification,
  consolidation, merger, or sale of the character referred to in Paragraph 4(e)
  hereof, the stock or other securities or property provided for in such Paragraph.

          5.
  Issue Tax. The issuance of certificates for Warrant
  Shares upon the exercise of this Warrant shall be made without charge to the
  holder of this Warrant or such shares for any issuance tax or other costs in
  respect thereof, provided that the Company shall not be required to pay any
  tax which in a name other than the holder of this Warrant. 

          6.
  No Rights or Liabilities as a Shareholder. This Warrant
  shall not entitle the holder hereof to any voting rights or other rights as
  a shareholder of the Company. No provision of this Warrant, in the absence of
  affirmative action by the holder hereof to purchase Warrant Shares, and no mere
  enumeration herein of the rights or privileges of the holder hereof, shall give
  rise to any liability of such holder for the Exercise Price or as a shareholder
  of the Company, whether such liability is asserted by the Company or by creditors
  of the Company. 

          7.
  Transfer, Exchange, and Replacement of Warrant. 

                    (a)
  Restriction on Transfer. This Warrant and the rights
  granted to the holder hereof are transferable, in whole or in part, upon surrender
  of this Warrant, together with a properly executed assignment in the form attached
  hereto, at the office or agency of the Company referred to in Paragraph 7(e)
  below, provided, however, that any transfer or assignment shall be subject to
  the conditions set forth in Paragraph 7(f) hereof and to the applicable provisions
  of the Securities Purchase Agreement. Until due presentment for registration
  of transfer on the books of the Company, the Company may treat the registered
  holder hereof as the owner and holder hereof for all purposes, and the Company
  shall not be affected by any notice to the contrary. Notwithstanding anything
  to the contrary contained herein, the registration rights described in Paragraph
  8 are assignable only in accordance with the provisions of that certain Registration
  Rights Agreement, dated March 13, 2007, by and among the Company and the other
  signatories thereto (the “Registration Rights Agreement”). 

                    (b)
  Warrant Exchangeable for Different Denominations. This
  Warrant is exchangeable, upon the surrender hereof by the holder hereof at the
  office or agency of the Company referred to in Paragraph 7(e) below, for new
  Warrants of like tenor representing in the aggregate the right to purchase the
  number of shares of Common Stock which may be purchased hereunder, each of such
  new Warrants to represent the right to purchase such number of shares as shall
  be designated by the holder hereof at the time of such surrender. 

- 9 - 

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

                    (d)
  Cancellation; Payment of Expenses. Upon the surrender
  of this Warrant in connection with any transfer, exchange, or replacement as
  provided in this Paragraph 7, this Warrant shall be promptly canceled by the
  Company. The Company shall pay all taxes (other than securities transfer taxes)
  and all other expenses (other than legal expenses, if any, incurred by the holder
  or transferees) and charges payable in connection with the preparation, execution,
  and delivery of Warrants pursuant to this Paragraph 7. 

                    (e)
  Register. The Company shall maintain, at its principal
  executive offices (or such other office or agency of the Company as it may designate
  by notice to the holder hereof), a register for this Warrant, in which the Company
  shall record the name and address of the person in whose name this Warrant has
  been issued, as well as the name and address of each transferee and each prior
  owner of this Warrant. 

                    (f)
  Exercise or Transfer Without Registration. If, at the
  time of the surrender of this Warrant in connection with any exercise, transfer,
  or exchange of this Warrant, this Warrant (or, in the case of any exercise,
  the Warrant Shares issuable hereunder), shall not be registered under the Securities
  Act of 1933, as amended (the “Securities Act”) and under applicable
  state securities or blue sky laws, the Company may require, as a condition of
  allowing such exercise, transfer, or exchange, (i) that the holder or transferee
  of this Warrant, as the case may be, furnish to the Company a written opinion
  of counsel, which opinion and counsel are acceptable to the Company, to the
  effect that such exercise, transfer, or exchange may be made without registration
  under said Act and under applicable state securities or blue sky laws, (ii)
  that the holder or transferee execute and deliver to the Company an investment
  letter in form and substance acceptable to the Company and (iii) that the transferee
  be an “accredited investor” as defined in Rule 501(a) promulgated
  under the Securities Act; provided that no such opinion, letter or status as
  an “accredited investor” shall be required in connection with a transfer
  pursuant to Rule 144 under the Securities Act. The first holder of this Warrant,
  by taking and holding the same, represents to the Company that such holder is
  acquiring this Warrant for investment and not with a view to the distribution
  thereof.

          8.
  Registration Rights. The initial holder of this Warrant
  (and certain assignees thereof) is entitled to the benefit of such registration
  rights in respect of the Warrant Shares as are set forth in Section 2 of the
  Registration Rights Agreement. 

          9.
  Notices. All notices, requests, and other communications
  required or permitted to be given or delivered hereunder to the holder of this
  Warrant shall be in writing, and shall be personally delivered, or shall be
  sent by certified or registered mail or by recognized overnight mail courier,
  postage prepaid and addressed, to such holder at the address shown for such
  holder on the books of the Company, or at such other address as shall have been
  furnished to the Company by notice from such holder. All notices, requests,
  and other communications 

- 10 - 

required or permitted to be given or delivered hereunder to the
Company shall be in writing, and shall be personally delivered, or shall be sent
by certified or registered mail or by recognized overnight mail courier, postage
prepaid and addressed, to the office of the Company at 1925 Century Park East,
Suite 500, Los Angeles, California 90067, Attention: Chief Executive Officer, or
at such other address as shall have been furnished to the holder of this Warrant
by notice from the Company. Any such notice, request, or other communication may
be sent by facsimile, but shall in such case be subsequently confirmed by a
writing personally delivered or sent by certified or registered mail or by
recognized overnight mail courier as provided above. All notices, requests, and
other communications shall be deemed to have been given either at the time of
the receipt thereof by the person entitled to receive such notice at the address
of such person for purposes of this Paragraph 9, or, if mailed by registered or
certified mail or with a recognized overnight mail courier upon deposit with the
United States Post Office or such overnight mail courier, if postage is prepaid
and the mailing is properly addressed, as the case may be. 

          10.
  Governing Law. THIS WARRANT SHALL BE ENFORCED, GOVERNED
  BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE
  TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD
  TO THE PRINCIPLES OF CONFLICT OF LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE
  EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK,
  NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS
  ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY
  OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM
  TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT
  SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN
  EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
  PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS
  IN ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE
  JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED
  IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER.
  THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS WARRANT SHALL
  BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED
  BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE. 

          11.
  Miscellaneous. 

                    (a)
  Amendments. This Warrant and any provision hereof may
  only be amended by an instrument in writing signed by the Company and the holder
  hereof. 

                    (b)
  Descriptive Headings. The descriptive headings of the
  several paragraphs of this Warrant are inserted for purposes of reference only,
  and shall not affect the meaning or construction of any of the provisions hereof.

- 11 - 

                    (c)
  Cashless Exercise. Notwithstanding anything to the
  contrary contained in this Warrant, if the resale of the Warrant Shares by the
  holder is not then registered pursuant to an effective registration statement
  under the Securities Act, this Warrant may be exercised by presentation and
  surrender of this Warrant to the Company at its principal executive offices
  with a written notice of the holder’s intention to effect a cashless exercise,
  including a calculation of the number of shares of Common Stock to be issued
  upon such exercise in accordance with the terms hereof (a “Cashless Exercise”).
  In the event of a Cashless Exercise, in lieu of paying the Exercise Price in
  cash, the holder shall surrender this Warrant for that number of shares of Common
  Stock determined by multiplying the number of Warrant Shares to which it would
  otherwise be entitled by a fraction, the numerator of which shall be the difference
  between the then current Market Price per share of the Common Stock and the
  Exercise Price, and the denominator of which shall be the then current Market
  Price per share of Common Stock. For example, if the holder is exercising 100,000
  Warrants with a per Warrant exercise price of $0.75 per share through a cashless
  exercise when the Common Stock’s current Market Price per share is $2.00
  per share, then upon such Cashless Exercise the holder will receive 62,500 shares
  of Common Stock. 

                    (d)
  Remedies. The Company acknowledges that a breach by it of
  its obligations hereunder will cause irreparable harm to the holder, by vitiating
  the intent and purpose of the transaction contemplated hereby. Accordingly,
  the Company acknowledges that the remedy at law for a breach of its obligations
  under this Warrant will be inadequate and agrees, in the event of a breach or
  threatened breach by the Company of the provisions of this Warrant, that the
  holder shall be entitled, in addition to all other available remedies at law
  or in equity, and in addition to the penalties assessable herein, to an injunction
  or injunctions restraining, preventing or curing any breach of this Warrant
  and to enforce specifically the terms and provisions thereof, without the necessity
  of showing economic loss and without any bond or other security being required.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

- 12 - 

     IN WITNESS WHEREOF, the
Company has caused this Warrant to be signed by its duly authorized officer.

	 	BANYAN CORPORATION 
	 	 	  
	 	 	  
	 	 	  
	 	By: 	 
	 	 	    Michael J. Gelmon 
	 	 	    Chief Executive Officer 
	 	 	  
	 	 	  
	 Dated as of _____. 20___ 		

FORM OF EXERCISE AGREEMENT 

Dated: __________, 200_ 

To: ______________________

           The
  undersigned, pursuant to the provisions set forth in the within Warrant, hereby
  agrees to purchase ________shares of Common Stock covered by such Warrant, and
  makes payment herewith in full therefor at the price per share provided by such
  Warrant in cash or by certified or official bank check in the amount of, or,
  if the resale of such Common Stock by the undersigned is not currently registered
  pursuant to an effective registration statement under the Securities Act of
  1933, as amended, by surrender of securities issued by the Company (including
  a portion of the Warrant) having a market value (in the case of a portion of
  this Warrant, determined in accordance with Section 11(c) of the Warrant) equal
  to $_________. Please issue a certificate or certificates for such shares of
  Common Stock in the name of and pay any cash for any fractional share to: 

	 	Name: 	 
    
	 	  	  
	 	  	  
	 	Signature: 	  
	 	  	  
	 	Address:	 
	 	  	  
	 	  	  
	 	Note: 	
      The above signature should correspond exactly with the
      name on the face of the within Warrant, if applicable.

and, if said number of shares of Common Stock shall not be all
the shares purchasable under the within Warrant, a new Warrant is to be issued
in the name of said undersigned covering the balance of the shares purchasable
thereunder less any fraction of a share paid in cash. 

FORM OF ASSIGNMENT 

          FOR
  VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers all
  the rights of the undersigned under the within Warrant, with respect to the
  number of shares of Common Stock covered thereby set forth hereinbelow, to:

	Name of Assignee 	Address 	No of Shares 

 

 

 

, and hereby irrevocably constitutes and appoints ___________________________________as
  agent and attorney-in-fact to transfer said Warrant on the books of the within-named
  corporation, with full power of substitution in the premises. 

Dated: __________, 200_ 

	In the presence of: 	             __________________________________
	 	Name:  __________________________________
	 	  
	 	Signature: __________________________________
	 	Title of Signing Officer or Agent (if any): 
	 	                   __________________________________
	 	Address:   __________________________________
	 	                    __________________________________
	 	 
	 	  
	 	 Note: The above signature should
        correspond exactly with the name on the face of the within Warrant, if
        applicable.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]