Document:

(4)(4)
                Form
                of 10% Convertible Note

            

    

    

    NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL
      (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
      FORM,
      THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT
      TO
      RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
      SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
      OTHER
      LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

    

    
      	
              Principal
                Amount: $____________

            	
              Issue Date: October ___, 2007

            

    

    

    SECURED
      CONVERTIBLE PROMISSORY NOTE

    

    FOR
      VALUE
      RECEIVED, ATTITUDE DRINKS INC., a Delaware corporation (hereinafter called
      “Borrower”), hereby promises to pay to ____________________________________,
      ___________________________________________________________, (the “Holder”) or
      its registered assigns or successors in interest or order, without demand,
      the
      sum of ____________________________ Dollars ($__________) (“Principal Amount”),
      on October ___, 2009 (the “Maturity Date”), if not sooner paid.

    

    This
      Note
      has been entered into pursuant to the terms of a subscription agreement between
      the Borrower, the Holder and certain other holders (the “Other Holders”) of
      convertible promissory notes (the “Other Notes”), dated of even date herewith
      (the “Subscription Agreement”), and shall be governed by the terms of such
      Subscription Agreement. Unless otherwise separately defined herein, all
      capitalized terms used in this Note shall have the same meaning as is set forth
      in the Subscription Agreement. The following terms shall apply to this
      Note:

    

    ARTICLE
      I

    

    INTEREST
      AMORTIZATION

    

    1.1. 
        Interest
      Rate .
      Interest on the outstanding Principal Amount shall accrue from the date of
      this
      Note and shall be payable in cash in arrears together with, at the same time
      and
      in the same manner as payment of Principal Amount and on the Maturity Date,
      whether by acceleration or otherwise. Interest on the outstanding principal
      balance of this Note shall accrue at the rate of ten percent (10%) per annum
      (the “Interest Rate”). Interest on the outstanding principal balance of the Note
      shall be computed on the basis of the actual number of days elapsed and a year
      of three hundred and sixty (360) days.

    

    1.2. 
        Minimum
      Monthly Principal and Interest Payments .
      Amortizing payments of the outstanding Principal Amount of this Note shall
      commence on the twelve (12) month anniversary after the Issue date and on the
      same day of each month thereafter (each a “Repayment Date”) until the Principal
      Amount has been repaid in full, whether by the payment of cash or by the
      conversion of such Principal Amount into Common Stock pursuant to the terms
      hereof. Subject to Section 2.1 and Article 3 below, on each Repayment Date,
      the
      Borrower shall make payments to the Holder in an amount equal to eight and
      one-third percent (8.333%) of the initial Principal Amount of this Note, and
      any
      other amounts which are then owing under this Note that have not
      been paid
      (collectively, the “Monthly Amount”). Amounts of conversions made by the Holder
      or Borrower pursuant to Section 2.1 or Article III shall be applied first
      against outstanding fees and damages, then outstanding interest and then to
      Principal Amounts of any not yet due Monthly Amounts at the discretion of the
      Holder. Any Principal Amount, interest and any other sum arising under this
      Note
      and the Subscription Agreement that remains outstanding on the Maturity Date
      shall be due and payable on the Maturity Date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.3. 
      Default
      Interest Rate .
      Following the occurrence and during the continuance of an Event of Default
      (as
      defined in Article IV), which, if susceptible to cure is not cured within the
      cure periods (if any) set forth in Article IV, otherwise then from the first
      date of such occurrence, the annual interest rate on this Note shall (subject
      to
      Section 6.7) be fifteen percent (15%).

    

    ARTICLE
      II

    

    CONVERSION
      AND REPAYMENT

    

    2.1. 
      Payment
      of Monthly Amount in Cash or Common Stock .
      Subject
      to Section 3.2 hereof, the Borrower shall pay the Monthly Amount on the
      applicable Repayment Date, at the Borrower’s election, in either of the
      following manners: (i) in cash equal to 110% of the principal portion of the
      Monthly Amount together with all other amounts payable with such principal,
      or
      (ii) in registered Common Stock at an applied conversion rate equal to the
      lesser of (A) the Fixed Conversion Price (as defined in section 3.1 hereof),
      or
      (B) 80% of the average of the five lowest closing bid prices for the Common
      Stock as reported by Bloomberg L.P. for the Principal Market for the twenty
      trading days preceding such Repayment Date (“Lookback Period”) (“Minimum
      Conversion Price”), as such amount may be adjusted as described herein. In the
      event the closing price of the Common Stock as reported by Bloomberg L.P. for
      the ten trading days preceding the Repayment Date is equal to or greater than
      200% of the Fixed Conversion Price, then the Company may not elect to pay the
      corresponding Monthly Amount with cash but must instead pay with shares of
      Common Stock valued at the Fixed Conversion Price. Amounts paid with shares
      of
      Common Stock must be delivered to the Holder not later than three business
      days
      after the applicable Repayment Date. The Borrower must send notice to the Holder
      by confirmed telecopier not later than 6:00 PM, New York City time on the
      thirtieth trading day preceding a Repayment Date notifying Holder of Borrower’s
      election to pay the Monthly Amount in cash or Common Stock. The Notice must
      state the amount of the Monthly Amount including a description of the components
      of such Monthly Amount and include supporting calculations. Elections by the
      Borrower must be made to all Other Holders in proportion to the initial relative
      Note principal held by the Holder and the Other Holders. If such notice is
      not
      given, or is not timely sent or if the Monthly Redemption Amount is not timely
      delivered or if the Borrower elects to pay the Monthly Amount with Common Stock,
      then Holder shall have the right, instead of the Company, to elect in writing
      prior to three trading days before the applicable Repayment Date, whether to
      be
      paid in cash or Common Stock or defer the payment of the relevant Monthly Amount
      until three business days after demand therefore by the Holder. If notice by
      the
      Company is not given, or is not timely given, then, unless notice is given
      by
      the Holder pursuant to the preceding sentence, the relevant Monthly Amount
      must
      be paid in cash. The conversion price in connection with such deferred Monthly
      Amount, if the Holder elects to convert such deferred Monthly Amount, shall
      be
      the lowest Conversion Price or Minimum Conversion Price that could be calculated
      for any Repayment Date from the Repayment Date for such deferred Monthly Amount
      until such Monthly Amount is actually paid. Such Holder’s election shall not be
      construed to be a waiver of any default by Borrower relating to non-timely
      compliance by Borrower with any of its obligations under this
      Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.2. 
      Effective
      Registration Statement .
      Notwithstanding anything to the contrary herein, no amount payable
      hereunder may
      be
      paid in
      shares
      of Common Stock
      by
      the Borrower nor may the Borrower exercise its right to give a Notice of
      Mandatory Conversion without the Holder’s consent unless (a) either (i) an
      effective current Registration Statement covering the shares of Common Stock
      to
      be issued in satisfaction of such obligations exists, or (ii) an exemption
      from
      registration of the resale of shares of Common Stock to be issued in
      satisfaction of such obligations is available pursuant to Rule 144(k) of the
      1933 Act, (b) an Event of Default hereunder (or an event that with the passage
      of time or the giving of notice could become an Event of Default), is pending
      or
      is otherwise waived in writing by the Holder in whole or in part at the Holder’s
      option, and (c) the Principal Market is either the OTC Bulletin Board, American
      Stock Exchange, Nasdaq Capital Market, Nasdaq Global Market, or New York Stock
      Exchange (“Listing Condition”) from and after thirty (30) days prior to the
      relevant Repayment Date.

     

    ARTICLE
      III

    

    CONVERSION
      RIGHTS

    

    3.1. 
      Holder’s
      Conversion Rights .
      Subject
      to Section 3.2, the Holder shall have the right, but not the obligation, to
      convert all or any portion of the then aggregate outstanding Principal Amount
      of
      this Note, together with interest, if any, and fees due hereon, and any sum
      arising under the Subscription Agreement, and the Transaction Documents,
      including but not limited to Liquidated Damages, into shares of Common Stock,
      subject to the terms and conditions set forth in this Article III, at the rate
      of $0.33   per
      share
      of Common Stock (“Fixed Conversion Price”), as the same may be adjusted pursuant
      to this Note and the Subscription Agreement. The Holder may exercise such right
      by delivery to the Borrower of a written Notice of Conversion pursuant to
      Section 3.3.

    

    3.2. 
      Conversion
      Limitation .
      Neither Holder
      nor the Borrower may convert (including a Mandatory Conversion) on any date
      that
      amount of the Note Principal or interest in connection with that number of
      shares of Common Stock which would be in excess of the sum of (i) the number
      of
      shares of Common Stock beneficially owned by the Holder and its affiliates
      on a
      Conversion Date, Repayment Date, or interest payment date, as the case may
      be,
      (ii) any Common Stock issuable in connection with the unconverted portion of
      the
      Note, and (iii) the number of shares of Common Stock issuable upon the
      conversion of the Note with respect to which the determination of this provision
      is being made, which would result in beneficial ownership by the Holder and
      its
      affiliates of more than 4.99% of the outstanding shares of Common Stock of
      the
      Borrower on such Conversion Date. For the purposes of the provision 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 Regulation 13d-3 thereunder. Subject to the foregoing, the Holder
      shall not be limited to aggregate conversions of only 4.99% and aggregate
      conversion by the Holder may exceed 4.99%. The Holder shall have the authority
      and obligation to determine whether the restriction contained in this Section
      3.2 will limit any conversion hereunder and to the extent that the Holder
      determines that the limitation contained in this Section applies, the
      determination of which portion of the Notes are convertible shall be the
      responsibility and obligation of the Holder. The Holder may waive the conversion
      limitation described in this Section 3.2, in whole or in part, upon and
      effective after 61 days prior written notice to the Borrower to increase such
      percentage to up to 9.99%.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.3. 
      Mechanics
      of Holder’s Conversion .

    

    (a) 
      In
      the
      event that the Holder elects to convert any amounts outstanding under this
      Note
      into Common Stock, the Holder shall give notice of such election by delivering
      an executed and completed notice of conversion (a “Notice of Conversion”) to the
      Borrower, which Notice of Conversion shall provide a breakdown in reasonable
      detail of the Principal Amount, accrued interest and amounts being converted.
      The original Note is not required
      to be surrendered to the Borrower until all sums due under the Note have been
      paid. On each Conversion Date (as hereinafter defined) and in accordance with
      its Notice of Conversion, the Holder shall make the appropriate reduction to
      the
      Principal Amount, accrued interest and fees as entered in its records. Each
      date
      on which a Notice of Conversion is delivered or telecopied to the Borrower
      in
      accordance with the provisions hereof shall be deemed a “Conversion Date.” A
      form of Notice of Conversion
      to be employed by the Holder is annexed hereto as Exhibit A.

    

    (b) Pursuant
      to the terms of a Notice of Conversion, the Borrower will issue instructions
      to
      the transfer agent accompanied by an opinion of counsel (if so required by
      the
      Borrower’s transfer agent), and, except as otherwise provided below, shall cause
      the transfer agent to transmit the certificates representing the Conversion
      Shares to the Holder by crediting the account of the Holder’s designated broker
      with the Depository Trust Corporation (“DTC”) through its Deposit Withdrawal
      Agent Commission (“DWAC”) system within three (3) business days after receipt by
      the Borrower of the Notice of Conversion (the “Delivery Date”). In the case of
      the exercise of the conversion rights set forth herein, the conversion privilege
      shall be deemed to have been exercised and the Conversion Shares issuable upon
      such conversion shall be deemed to have been issued upon the date of receipt
      by
      the Borrower of the Notice of Conversion. The Holder shall be treated for all
      purposes as the beneficial holder of such shares of Common Stock, or, in the
      case that Borrower delivers physical certificates as set forth below, the record
      holder of such shares of Common Stock, unless the Holder provides the Borrower
      written instructions to the contrary.  Notwithstanding the foregoing
      to the contrary, the Borrower or its transfer agent shall only be obligated
      to
      issue and deliver the shares to the DTC on the Holder’s behalf via DWAC (or
      certificates free of restrictive legends) if the registration statement
      providing for the resale of the shares of Common Stock issuable upon the
      conversion of this Note is effective and the Holder has complied with all
      applicable securities laws in connection with the sale of the Common Stock,
      including, without limitation, the prospectus delivery requirements and has
      provided representations accordingly. In the event that Conversion Shares cannot
      be delivered to the Holder via DWAC, the Borrower shall deliver physical
      certificates representing the Conversion Shares by the Delivery Date to an
      address designated by Holder in the U.S.

    

    3.4. 
      Conversion
      Mechanics .

    

    (a) 
      The
      number of shares of Common Stock to be issued upon each conversion of this
      Note
      pursuant to this Article III shall be determined by dividing that portion of
      the
      Principal Amount and interest and fees to be converted, if any, by the then
      applicable Fixed Conversion Price.

    

    (b) 
      The
      Fixed
      Conversion Price and number and kind of shares or other securities to be issued
      upon conversion shall be subject to adjustment from time to time upon the
      happening of certain events while this conversion right remains outstanding,
      as
      follows:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    A. 
      Merger,
      Sale of Assets, etc .
      If (A)
      the Company effects any merger or consolidation of the Company with or into
      another entity, (B) the Company effects any sale of all or substantially all
      of
      its assets in one or a series of related transactions, (C) any tender offer
      or
      exchange offer (whether by the Company or another entity) is completed pursuant
      to which holders of Common Stock are permitted to tender or exchange their
      shares for other securities, cash or property, (D) the Company consummates
      a
      stock purchase agreement or other business combination (including, without
      limitation, a reorganization, recapitalization, spin-off or scheme of
      arrangement) with one or more persons or entities whereby such other persons
      or
      entities acquire more than the 50% of the outstanding shares of Common Stock
      (not including any shares of Common Stock held by such other persons or entities
      making or party to, or associated or affiliated with the other persons or
      entities making or party to, such stock purchase agreement or other business
      combination), (E) any "person" or "group" (as these terms are used for purposes
      of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the "beneficial
      owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly,
      of
      50% of the aggregate Common Stock of the Company, or (F) the Company effects
      any
      reclassification of the Common Stock or any compulsory share exchange pursuant
      to which the Common Stock is effectively converted into or exchanged for other
      securities, cash or property (in any such case, a "Fundamental Transaction"),
      this Note, as to the unpaid principal portion thereof and accrued interest
      thereon, shall thereafter be deemed to evidence the right to convert into such
      number and kind of shares or other securities and property as would have been
      issuable or distributable on account of such Fundamental Transaction, upon
      or
      with respect to the securities subject to the conversion right immediately
      prior
      to such Fundamental Transaction. The foregoing provision shall similarly apply
      to successive Fundamental Transactions of a similar nature by any such successor
      or purchaser. Without limiting the generality of the foregoing, the
      anti-dilution provisions of this Section shall apply to such securities of
      such
      successor or purchaser after any such Fundamental Transaction.

    

    B. 
      Reclassification,
      etc .
      If the
      Borrower at any time shall, by reclassification or otherwise, change the Common
      Stock into the same or a different number of securities of any class or classes,
      this Note, as to the unpaid principal portion hereof and accrued interest
      hereon, shall thereafter be deemed to evidence the right to convert into an
      adjusted number of such securities and kind of securities as would have been
      issuable as the result of such change with respect to the Common Stock
      immediately prior to such reclassification or other change.

    

    C. 
      Stock
      Splits, Combinations and Dividends .
      If the
      shares of Common Stock are subdivided or combined into a greater or smaller
      number of shares of Common Stock, or if a dividend is paid on the Common Stock
      in shares of Common Stock, the Conversion Price shall be proportionately reduced
      in case of subdivision of shares or stock dividend or proportionately increased
      in the case of combination of shares, in each such case by the ratio which
      the
      total number of shares of Common Stock outstanding immediately after such event
      bears to the total number of shares of Common Stock outstanding immediately
      prior to such event.

    

    D. 
      Share
      Issuance .
      So long
      as this Note is outstanding, if the Borrower shall issue any Common Stock except
      for the Excepted Issuances (as defined in the Subscription Agreement), prior
      to
      the complete conversion or payment of this Note, for a consideration less than
      the Fixed Conversion Price that would be in effect at the time of such issue,
      then, and thereafter successively upon each such issuance, the Fixed Conversion
      Price shall be reduced to such other lower issue price. For purposes of this
      adjustment, the issuance of any security or debt instrument of the Borrower
      carrying the right to convert such security or debt instrument into Common
      Stock
      or of any warrant, right or option to purchase Common Stock shall result in
      an
      adjustment to the Fixed Conversion Price upon the issuance of the
      above-described security, debt instrument, warrant, right, or option and again
      upon the issuance of shares of Common Stock upon exercise of such conversion
      or
      purchase rights if such issuance is at a price lower than the then applicable
      Fixed Conversion Price. The reduction of the Fixed Conversion Price described
      in
      this paragraph is in addition to the other rights of the Holder described in
      the
      Subscription Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) 
      Whenever
      the Conversion Price is adjusted pursuant to Section 3.4(b) above, the Borrower
      shall promptly mail to the Holder a notice setting forth the Conversion Price
      after such adjustment and setting forth a statement of the facts requiring
      such
      adjustment.

    

    3.5. 
      Reservation
      . During
      the period the conversion right exists, Borrower will reserve from its
      authorized and unissued Common Stock not less than one hundred and seventy-five
      percent (175%) of the number of shares to provide for the issuance of Common
      Stock upon the full conversion of this Note. Borrower represents that upon
      issuance, such shares will be duly and validly issued, fully paid and
      non-assessable. Borrower agrees that its issuance of this Note shall constitute
      full authority to its officers, agents, and transfer agents who are charged
      with
      the duty of executing and issuing stock certificates to execute and issue the
      necessary certificates for shares of Common Stock upon the conversion of this
      Note.

    

    3.6 
      Issuance
      of Replacement Note .
      Upon
      any partial conversion of this Note, a replacement Note containing the same
      date
      and provisions of this Note shall, at the written request of the Holder, be
      issued by the Borrower to the Holder for the outstanding Principal Amount of
      this Note and accrued interest which shall not have been converted or paid,
      provided Holder has surrendered an original Note to the Borrower. In the event
      that the Holder elects not to surrender a Note for reissuance upon partial
      payment or conversion, the Holder hereby indemnifies the Borrower against any
      and all loss or damage attributable to a third-party claim in an amount in
      excess of the actual amount then due under the Note, and t he
      Borrower is hereby expressly authorized to offset any such amounts mutually
      agreed upon by Borrower and Holder or pursuant to a judgment in Borrower’s favor
      against amounts then due under the Note.

    

    ARTICLE
      IV

    

    EVENTS
      OF DEFAULT

    

    The
      occurrence of any of the following events of default (“Event of Default”) shall,
      at the option of the Holder hereof, make all sums of principal and interest
      then
      remaining unpaid hereon and all other amounts payable hereunder immediately
      due
      and payable, upon demand, without presentment, or grace period, all of which
      hereby are expressly waived, except as set forth below:

    

    4.1 
      Failure
      to Pay Principal or Interest .
      The
      Borrower fails to pay any installment of Principal Amount, interest or other
      sum
      due under this Note or any Transaction Document when due and such failure
      continues for a period of five (5) business days after the due
      date.

    

    4.2 
      Breach
      of Covenant .
      The
      Borrower breaches any material covenant or other term or condition of the
      Subscription Agreement, this Note or Transaction Document in any material
      respect and such breach, if subject to cure, continues for a period of ten
      (10)
      business days after written notice to the Borrower from the Holder.

    

    4.3 
      Breach
      of Representations and Warranties .
      Any
      material representation or warranty of the Borrower made herein, in the
      Subscription Agreement, Transaction Document or in any agreement, statement
      or
      certificate given in writing pursuant hereto or in connection herewith or
      therewith shall be false or misleading in any material respect as of the date
      made and the Closing Date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.4 
      Receiver
      or Trustee .
      The
      Borrower or any Subsidiary of Borrower shall make an assignment for the benefit
      of creditors, or apply for or consent to the appointment of a receiver or
      trustee for them or for a substantial part of their property or business; or
      such a receiver or trustee shall otherwise be appointed.

    

    4.5 
      Judgments .
      Any
      money judgment, writ or similar final process shall be entered or filed against
      Borrower or any subsidiary of Borrower or any of their property or other assets
      for more than $ 100,000, and
      shall
      remain unvacated, unbonded, unappealed, unsatisfied, or unstayed for a period
      of
      forty-five (45) days.

    

    4.6 
      Non-Payment .
      A
      default by the Borrower under any one or more obligations in an aggregate
      monetary amount in excess of $100,000 for more than twenty (20) days after
      the
      due date, unless the Borrower is contesting the validity of such obligation
      in
      good faith and has segregated cash funds equal to the contested
      amount.

    

    4.7 
      Listing
      and Filing Defaults .
      Failure
      by Borrower to timely comply with the listing and filing requirements set forth
      in Sections 9(b) and 9(d) of the Subscription Agreement.

    

    4.8 
      Bankruptcy .
      Bankruptcy, insolvency, reorganization, or liquidation proceedings or other
      proceedings or relief under any bankruptcy law or any law, or the issuance
      of
      any notice in relation to such event, for the relief of debtors shall be
      instituted by or against the Borrower or any Subsidiary of
      Borrower.

    

    4.9 
      Delisting .
      Delisting of the Common Stock from any Principal Market for a period of seven
      consecutive trading days; or notification from a Principal Market that the
      Borrower is not in compliance with the conditions for such continued listing
      on
      such Principal Market.

    

    4.10 
      Stop
      Trade .
      An SEC
      or judicial stop trade order or Principal Market trading suspension with respect
      to Borrower’s Common Stock that lasts for five or more consecutive trading
      days.

    

    4.11 
      Failure
      to Deliver Common Stock or Replacement Note .
      Borrower’s failure to timely deliver Common Stock to the Holder pursuant to and
      in the form required by this Note or the Subscription Agreement, or
      if
      required, a replacement Note .

    

    4.12 
      Non-Registration
      Event .
      The
      occurrence of a Non-Registration Event as described in Section 11.4 of the
      Subscription Agreement.

    

    4.13 
      Reverse
      Splits .
      The
      Borrower effectuates a reverse split of its Common Stock without twenty days
      prior written notice to the Holder.

     

    4.14 
      Cross
      Default .
      A
      default by the Borrower of a material term, covenant, warranty or undertaking
      of
      any Transaction Document or other agreement to which the Borrower and Holder
      are
      parties, or the occurrence of a material event of default under any such other
      agreement which is not cured after any required notice and/or cure
      period.

    

    4.15 
      Reservation
      Default .
      Failure
      by the Borrower to have reserved for issuance upon conversion of the Note the
      amount of Common Stock as set forth in this Note and the Subscription
      Agreement.

    

    4.16 
      Financial
      Statement Restatement .  
      The restatement of any financial statements filed by the Borrower for any date
      or period from two years prior to the Issue Date of this Note and until this
      Note is no longer outstanding, if the result of such restatement would, by
      comparison to the unrestated financial statements, have constituted a Material
      Adverse Effect.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.17 
      Other
      Note Default .
      The
      occurrence of any Event of Default under any Other Note.

    

    ARTICLE
      V

    

    SECURITY
      INTEREST

    

    5. 
      Security
      Interest/Waiver of Automatic Stay .
      This
      Note is secured by a security interest granted to the Collateral Agent for
      the
      benefit of the Holder pursuant to a Security Agreement, as delivered by Borrower
      to Holder. The Borrower acknowledges and agrees that should a proceeding under
      any bankruptcy or insolvency law be commenced by or against the Borrower, or
      if
      any of the Collateral (as defined in the Security Agreement) should become
      the
      subject of any bankruptcy or insolvency proceeding, then the Holder should
      be
      entitled to, among other relief to which the Holder may be entitled under the
      Transaction Documents and any other agreement to which the Borrower and Holder
      are parties (collectively, "Loan Documents") and/or applicable law, an order
      from the court granting immediate relief from the automatic stay pursuant to
      11
      U.S.C. Section 362 to permit the Holder to exercise all of its rights and
      remedies pursuant to the Loan Documents and/or applicable law. THE BORROWER
      EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY IMPOSED BY 11 U.S.C. SECTION
      362. FURTHERMORE, THE BORROWER EXPRESSLY ACKNOWLEDGES AND AGREES THAT NEITHER
      11
      U.S.C. SECTION 362 NOR ANY OTHER SECTION OF THE BANKRUPTCY CODE OR OTHER STATUTE
      OR RULE (INCLUDING, WITHOUT LIMITATION, 11 U.S.C. SECTION 105) SHALL STAY,
      INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY WAY THE ABILITY OF THE HOLDER
      TO
      ENFORCE ANY OF ITS RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS AND/OR
      APPLICABLE LAW. The Borrower hereby consents to any motion for relief from
      stay
      that may be filed by the Holder in any bankruptcy or insolvency proceeding
      initiated by or against the Borrower and, further, agrees not to file any
      opposition to any motion for relief from stay filed by the Holder. The Borrower
      represents, acknowledges and agrees that this provision is a specific and
      material aspect of the Loan Documents, and that the Holder would not agree
      to
      the terms of the Loan Documents if this waiver were not a part of this Note.
      The
      Borrower further represents, acknowledges and agrees that this waiver is
      knowingly, intelligently and voluntarily made, that neither the Holder nor
      any
      person acting on behalf of the Holder has made any representations to induce
      this waiver, that the Borrower has been represented (or has had the opportunity
      to he represented) in the signing of this Note and the Loan Documents and in
      the
      making of this waiver by independent legal counsel selected by the Borrower
      and
      that the Borrower has discussed this waiver with counsel.

    

    ARTICLE
      VI

    

    MISCELLANEOUS

    

    6.1 
      Failure
      or Indulgence Not Waiver .
      No
      failure or delay on the part of Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

    

    6.2 
      Notices .
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: (i) if to the Borrower to: Attitude Drinks Inc., 11300
      U.S. Highway
      1, Suite 207, North Palm Beach, Florida 33408, Attn: Roy Warren, CEO and
      President, telecopier: (561) 799-5039, with a copy by telecopier only to: Weed
      & Co., LLP, 4695 MacArthur Court, Suite 1430, Newport Beach, CA 92660, Attn:
      Rick Weed, Esq., telecopier number: (949) 475-9087, and (ii) if to the Holder,
      to the name, address and telecopy number set forth on the front page of this
      Note, with a copy by telecopier only
      to
      Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York
      10176, telecopier number: (212) 697-3575.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.3 
      Amendment
      Provision .
      The
      term “Note” and all reference thereto, as used throughout this instrument, shall
      mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented.

    

    6.4 
      Assignability .
      This
      Note shall be binding upon the Borrower and its successors and assigns, and
      shall inure to the benefit of the Holder and its successors and
      assigns.

    

    6.5 
      Cost
      of Collection .
      If
      default is made in the payment of this Note, Borrower shall pay the Holder
      hereof reasonable costs of collection, including reasonable attorneys’
fees.

    

    6.6 
      Governing
      Law .
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of New York, including,
      but not limited to, New York statutes of limitations .
      Any
      action brought by either party against the other concerning the transactions
      contemplated by this Agreement shall be brought only in the civil or state
      courts of New York or in the federal courts located in the State and county
      of
      New York. Both parties and the individual signing this Agreement on behalf
      of
      the Borrower agree to submit to the jurisdiction of such courts. The prevailing
      party shall be entitled to recover from the other party its reasonable
      attorney's fees and costs. In
      the
      event that any provision of this Note is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or unenforceability of any other provision of this Note. Nothing contained
      herein shall be deemed or operate to preclude the Holder from bringing suit
      or
      taking other legal action against the Borrower in any other jurisdiction to
      collect on the Borrower's obligations to Holder, to realize on any collateral
      or
      any other security for such obligations, or to enforce a judgment or other
      decision in favor of the Holder. This
      Note shall be deemed an unconditional obligation of Borrower for the payment
      of
      money and, without limitation to any other remedies of Holder, may be enforced
      against Borrower by summary proceeding pursuant to New York Civil Procedure
      Law
      and Rules Section 3213 or any similar rule or statute in the jurisdiction where
      enforcement is sought. For purposes of such rule or statute, any other document
      or agreement to which Holder and Borrower are parties or which Borrower
      delivered to Holder, which may be convenient or necessary to determine Holder’s
      rights hereunder or Borrower’s obligations to Holder are deemed a part of this
      Note, whether or not such other document or agreement was delivered together
      herewith or was executed apart from this Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.7 
      Maximum
      Payments .
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum permitted by such law, any payments in excess
      of
      such maximum shall be credited against amounts owed by the Borrower to the
      Holder and thus refunded to the Borrower.

    

    6.8. 
      Construction .
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Note and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Note to favor any party

    against
      the other.

    

    6.9 
      Redemption .
      This
      Note may not be redeemed or called without the consent of the Holder except
      as
      described in this Note or the Subscription Agreement.

    

    6.10 
      Shareholder
      Status .
      The
      Holder shall not have rights as a shareholder of the Borrower with respect
      to
      unconverted portions of this Note. However, the Holder will have the rights
      of a
      shareholder of the Borrower with respect to the Shares of Common Stock to be
      received after delivery by the Holder of a Conversion Notice to the
      Borrower.

    

    6.11 
      Non-Business
      Days .
      Whenever any payment or any action to be made shall be due on a Saturday, Sunday
      or a public holiday under the laws of the State of New York, such payment may
      be
      due or action shall be required on the next succeeding business day and, for
      such payment, such next succeeding day shall be included in the calculation
      of
      the amount of accrued interest payable on such date.

    

    IN
      WITNESS WHEREOF ,
      Borrower has caused this Note to be signed in its name by an authorized officer
      as of the ____ day of October, 2007.

    

      
        
          	
                   

                	
                  ATTITUDE
                    DRINKS INC.

                
	
                    

                	
                    

                	
                    

                
	 	
                  By:  

                	
                  /s/ 

                	 
	
                   

                	
                  Name:

                
	
                   

                	
                  Title:

                

        

      

    

    WITNESS:

     

    
       

      
        

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOTICE
      OF CONVERSION

    

    (To
      be
      executed by the Registered Holder in order to convert the Note)

     

    The
      undersigned hereby elects to convert $_________ of the principal and $_________
      of the interest due on the Note issued by Attitude Drinks Inc. on October ___,
      2007 into Shares of Common Stock of Attitude Drinks Inc. (the “Borrower”)
      according to the conditions set forth in such Note, as of the date written
      below.

    

    Date
      of
      Conversion:____________________________________________________________________

    

    Conversion
      Price:______________________________________________________________________

    

    Number
      of
      Shares of Common Stock Beneficially Owned on the Conversion Dat e:
      Less
      than 5% of the outstanding Common Stock of Attitude Drinks Inc.

    

    Shares
      To
      Be
      Delivered:_________________________________________________________________

    

    Signature:____________________________________________________________________________

    

    Print
      Name:__________________________________________________________________________

    

    Address:_____________________________________________________________________________

    

    ____________________________________________________________________________

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      of other documents omitted

    [(4)(4)
        Form of Convertible Note]

    

    $50,000
      Convertible Note dated October 23, 2007 issued to Roy G. Warren

    

    $300,000
      Convertible Note dated October 23, 2007 issued to Alpha Capital
      Anstalt

    

    $150,000
      Convertible Note dated October 23, 2007 issued to Whalehaven Capital Fund
      Limited

    

    $100,000
      Convertible Note dated October 23, 2007 issued to Monarch Capital Fund
      Ltd.

    

    $50,000
      Convertible Note dated February 15, 2008 issued to Roy G. Warren

    

    $300,000
      Convertible Note dated February 15, 2008 issued to Alpha Capital
      Anstalt

    

    $150,000
      Convertible Note dated February 15, 2008 issued to Whalehaven Capital Fund
      LimitedNEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL
      (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
      FORM,
      THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT
      TO
      RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
      SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
      OTHER
      LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 

     

    
      
        	
                Principal
                  Amount $________

              	
                Issue
                  Date: January ___, 2008

              
	
                Purchase
                  Price $________

              	 

      

       

    

    SECURED
      CONVERTIBLE NOTE

    

    FOR
      VALUE
      RECEIVED, ATTITUDE
      DRINKS INC., a Delaware (hereinafter
      called "Borrower"), hereby promises to pay to
      ______________________________________,
      ______________________________________________ (the "Holder") or order, without
      demand, the sum of ___________________________________________ Dollars
      ($__________), with interest accruing thereon, on the sooner of the Second
      Closing of the transaction dated October 23, 2007, or [120
      days from the Issue Date of this Note]
      (the
      "Maturity Date"), if not retired sooner.

    

    The
      following terms shall apply to this Note:

    

    ARTICLE
      I

    

    GENERAL
      PROVISIONS

    

    1.1 Payment
      Grace Period.
      The
      Borrower shall have a five (5) day grace period to pay any monetary amounts
      due
      under this Note, after which grace period a default interest rate of fifteen
      percent (15%) per annum shall apply to the amounts owed hereunder.

    

    1.2 Subscription
      Agreement.
      This
      Note has been entered into pursuant to the terms of a subscription agreement
      between the Borrower and the Holder, dated of even date herewith (the
“Subscription Agreement”), and shall be governed by the terms of such
      Subscription Agreement. Unless otherwise separately defined herein, all
      capitalized terms used in this Note shall have the same meaning as is set forth
      in the Subscription Agreement.

    

    ARTICLE
      II

    

    CONVERSION
      RIGHTS

    

    The
      Borrower shall have the right to convert the principal and any interest due
      under this Note into Shares of the Borrower's Common Stock, $.001 par value
      per
      share (“Common Stock”) as set forth below.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.1
       Conversion
      of Note.

     

    (a) Mandatory
      Conversion.
      Provided an Event of Default or an event which with the passage of time or
      giving of notice could become an Event of Default has not occurred, then, until
      the Maturity Date, the Borrower will have the option by written notice to the
      Holder (“Notice of Mandatory Conversion”) of compelling the Holder to convert
      all or a portion of the outstanding and unpaid principal of the Note and accrued
      interest, thereon, into Common Stock at fifty percent (50%) of the Conversion
      Price as defined in the October 23, 2007 transaction, as adjusted, (the
“Conversion Price”) then in affect (“Mandatory Conversion”). The Notice of
      Mandatory Conversion, which notice must be given on the first day following
      twenty (20) consecutive trading days (“Lookback Period”) during which the
      closing price for the Common Stock as reported by Bloomberg, LP for the
      Principal Market shall be greater than Five Dollars ($5.00) each such trading
      day and during which twenty (20) trading days, the daily trading volume as
      reported by Bloomberg L.P. for the Principal Market is greater than 100,000
      shares. The date the Notice of Mandatory Conversion is given is the “Mandatory
      Conversion Date.” The Notice of Mandatory Conversion shall specify the aggregate
      principal amount of the Note which is subject to Mandatory Conversion. Mandatory
      Conversion Notices must be given proportionately to all Holders of Notes. The
      Borrower shall reduce the amount of Note principal subject to a Notice of
      Mandatory Conversion by the amount of Note Principal and interest for which
      the
      Holder had delivered a Notice of Conversion to the Borrower during the twenty
      (20) trading days preceding the Mandatory Conversion Date. Each Mandatory
      Conversion Date shall be a deemed Conversion Date and the Borrower will be
      required to deliver the Common Stock issuable pursuant to a Mandatory Conversion
      Notice in the same manner and time period as described in the Subscription
      Agreement. A Notice of Mandatory Conversion may be given only in connection
      with
      an amount of Common Stock which would not cause a Holder to exceed the 4.99%
      (or
      if increased, 9.99%) beneficial ownership limitation set forth in Section 2.3
      of
      this Note.

    

    (b) 
      The
      Conversion Price and number and kind of shares or other securities to be issued
      upon conversion determined pursuant to Section 2.1(a), shall be subject to
      adjustment from time to time upon the happening of certain events while this
      conversion right remains outstanding, as follows:

    

    A. Merger,
      Sale of Assets, etc. If the Borrower at any time shall consolidate with or
      merge
      into or sell or convey all or substantially all its assets to any other
      corporation, this Note, as to the unpaid principal portion thereof and accrued
      interest thereon, shall thereafter be deemed to evidence the right to purchase
      such number and kind of shares or other securities and property as would have
      been issuable or distributable on account of such consolidation, merger, sale
      or
      conveyance, upon or with respect to the securities subject to the conversion
      or
      purchase right immediately prior to such consolidation, merger, sale or
      conveyance. The foregoing provision shall similarly apply to successive
      transactions of a similar nature by any such successor or purchaser. Without
      limiting the generality of the foregoing, the anti-dilution provisions of this
      Section shall apply to such securities of such successor or purchaser after
      any
      such consolidation, merger, sale or conveyance.

    

    B. Reclassification,
      etc. If the Borrower at any time shall, by reclassification or otherwise, change
      the Common Stock into the same or a different number of securities of any class
      or classes that may be issued or outstanding, this Note, as to the unpaid
      principal portion thereof and accrued interest thereon, shall thereafter be
      deemed to evidence the right to purchase an adjusted number of such securities
      and kind of securities as would have been issuable as the result of such change
      with respect to the Common Stock immediately prior to such reclassification
      or
      other change.

    

    C. Stock
      Splits, Combinations and Dividends. If the shares of Common Stock are subdivided
      or combined into a greater or smaller number of shares of Common Stock, or
      if a
      dividend is paid on the Common Stock in shares of Common Stock, the Conversion
      Price shall be proportionately reduced in case of subdivision of shares or
      stock
      dividend or proportionately increased in the case of combination of shares,
      in
      each such case by the ratio which the total number of shares of Common Stock
      outstanding immediately after such event bears to the total number of shares
      of
      Common Stock outstanding immediately prior to such event..

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    D. Share
      Issuance. So long as this Note is outstanding, if the Borrower shall issue
      or
      agree to issue any shares of Common Stock except for the Excepted Issuances
      (as
      defined in the Subscription Agreement) for a consideration less than the
      Conversion Price in effect at the time of such issue, then, and thereafter
      successively upon each such issue, the Conversion Price shall be reduced to
      such
      other lower issue price. For purposes of this adjustment, the issuance of any
      security carrying the right to convert such security into shares of Common
      Stock
      or of any warrant, right or option to purchase Common Stock shall result in
      an
      adjustment to the Conversion Price upon the issuance of the above-described
      security and again upon the issuance of shares of Common Stock upon exercise
      of
      such conversion or purchase rights if such issuance is at a price lower than
      the
      then applicable Conversion Price. The reduction of the Conversion Price
      described in this paragraph is in addition to other rights of the Holder
      described in this Note and the Subscription Agreement.

    

    (c) Whenever
      the Conversion Price is adjusted pursuant to Section 2.1(b) above, the Borrower
      shall promptly mail to the Holder a notice setting forth the Conversion Price
      after such adjustment and setting forth a statement of the facts requiring
      such
      adjustment.

    

    (d) During
      the period the conversion right exists, Borrower will reserve from its
      authorized and unissued Common Stock not less than an amount of Common Stock
      equal to 150% of the amount of shares of Common Stock issuable upon the full
      conversion of this Note. Borrower represents that upon issuance, such shares
      will be duly and validly issued, fully paid and non-assessable. Borrower agrees
      that its issuance of this Note shall constitute full authority to its officers,
      agents, and transfer agents who are charged with the duty of executing and
      issuing stock certificates to execute and issue the necessary certificates
      for
      shares of Common Stock upon the conversion of this Note.

    

    2.2 Method
      of Conversion.
      This
      Note may be converted by the Borrower in whole or in part as described in
      Section 2.1(a) hereof. Upon partial conversion of this Note, a new Note
      containing the same date and provisions of this Note shall, at the request
      of
      the Holder, be issued by the Borrower to the Holder for the principal balance
      of
      this Note and interest which shall not have been converted or paid.

    

    2.3 Maximum
      Conversion.
      The
      Borrower shall not be entitled to convert on a Conversion Date that amount
      of
      the Note in connection with that number of shares of Common Stock which would
      be
      in excess of the sum of (i) the number of shares of Common Stock beneficially
      owned by the Holder and its affiliates on a Conversion Date, (ii) any Common
      Stock issuable in connection with the unconverted portion of the Note, and
      (iii)
      the number of shares of Common Stock issuable upon the conversion of the Note
      with respect to which the determination of this provision is being made on
      a
      Conversion Date, which would result in beneficial ownership by the Holder and
      its affiliates of more than 4.99% of the outstanding shares of Common Stock
      of
      the Borrower on such Conversion Date. For the purposes of the provision 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 Regulation 13d-3 thereunder. Subject to the foregoing, the Holder
      shall not be limited to aggregate conversions of only 4.99% and aggregate
      conversion by the Borrower may exceed 4.99%. The Borrower shall have the
      authority and obligation to determine whether the restriction contained in
      this
      Section 2.3 will limit any conversion hereunder and to the extent that the
      Borrower determines that the limitation contained in this Section applies,
      the
      determination of which portion of the Notes are convertible shall be the
      responsibility and obligation of the Holder. The Holder may waive the conversion
      limitation described in this Section 2.3, in whole or in part, upon and
      effective after 61 days prior written notice to the Borrower to increase such
      percentage to up to 9.99%.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      III

    EVENTS
      OF DEFAULT

    

    The
      occurrence of any of the following events of default (“Event of Default”) shall,
      at the option of the Holder hereof, make all sums of principal and interest
      then
      remaining unpaid hereon and all other amounts payable hereunder immediately
      due
      and payable, upon demand, without presentment, or grace period, all of which
      hereby are expressly waived, except as set forth below:

    

    3.1 Failure
      to Pay Principal or Interest.
      The
      Borrower fails to pay any installment of Principal Amount, interest or other
      sum
      due under this Note or any Transaction Document when due and such failure
      continues for a period of five (5) business days after the due
      date.

    

    3.2 Breach
      of Covenant.
      The
      Borrower breaches any material covenant or other term or condition of the
      Subscription Agreement, this Note or Transaction Document in any material
      respect and such breach, if subject to cure, continues for a period of ten
      (10)
      business days after written notice to the Borrower from the Holder.

    

    3.3 Breach
      of Representations and Warranties.
      Any
      material representation or warranty of the Borrower made herein, in the
      Subscription Agreement, Transaction Document or in any agreement, statement
      or
      certificate given in writing pursuant hereto or in connection herewith or
      therewith shall be false or misleading in any material respect as of the date
      made and the Closing Date.

    

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

    

    3.5 Judgments.
      Any
      money judgment, writ or similar final process shall be entered or filed against
      Borrower or any subsidiary of Borrower or any of their property or other assets
      for more than $100,000,
      and
      shall remain unvacated, unbonded, unappealed, unsatisfied, or unstayed for
      a
      period of forty-five (45) days.

    

    3.6 Non-Payment.
      A
      default by the Borrower under any one or more obligations in an aggregate
      monetary amount in excess of $100,000 for more than twenty (20) days after
      the
      due date, unless the Borrower is contesting the validity of such obligation
      in
      good faith and has segregated cash funds equal to the contested
      amount.

    

    3.7 Listing
      and Filing Defaults.
      Failure
      by Borrower to timely comply with the listing and filing requirements set forth
      in Sections 9(b) and 9(d) of the Subscription Agreement.

    

    3.8 Bankruptcy.
      Bankruptcy, insolvency, reorganization, or liquidation proceedings or other
      proceedings or relief under any bankruptcy law or any law, or the issuance
      of
      any notice in relation to such event, for the relief of debtors shall be
      instituted by or against the Borrower or any Subsidiary of
      Borrower.

    

    3.9 Delisting.
      Delisting of the Common Stock from any Principal Market for a period of seven
      consecutive trading days; or notification from a Principal Market that the
      Borrower is not in compliance with the conditions for such continued listing
      on
      such Principal Market.

    

    3.10 Stop
      Trade.
      An SEC
      or judicial stop trade order or Principal Market trading suspension with respect
      to Borrower’s Common Stock that lasts for five or more consecutive trading
      days.

    

    3.11 Failure
      to Deliver Common Stock or Replacement Note.
      Borrower’s failure to timely deliver Common Stock to the Holder pursuant to and
      in the form required by this Note or the Subscription Agreement,
      or if
      required, a replacement Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.12 Non-Registration
      Event.
      The
      occurrence of a Non-Registration Event as described in Section 11.4 of the
      Subscription Agreement.

    

    3.13 Reverse
      Splits.
      The
      Borrower effectuates a reverse split of its Common Stock without twenty days
      prior written notice to the Holder.

     

    3.14 Cross
      Default.
      A
      default by the Borrower of a material term, covenant, warranty or undertaking
      of
      any Transaction Document or other agreement to which the Borrower and Holder
      are
      parties, or the occurrence of a material event of default under any such other
      agreement which is not cured after any required notice and/or cure
      period.

    

    3.15 Reservation
      Default.
      Failure
      by the Borrower to have reserved for issuance upon conversion of the Note the
      amount of Common Stock as set forth in this Note and the Subscription
      Agreement.

    

    3.16 Financial
      Statement Restatement.  
      The restatement of any financial statements filed by the Borrower for any date
      or period from two years prior to the Issue Date of this Note and until this
      Note is no longer outstanding, if the result of such restatement would, by
      comparison to the unrestated financial statements, have constituted a Material
      Adverse Effect.

    

    3.17 Other
      Note Default.
      The
      occurrence of any Event of Default under any Other Note.

    

    ARTICLE
      IV

    

    SECURITY
      INTEREST

    

    4. Security
      Interest/Waiver of Automatic Stay.
      This
      Note is secured by a security interest granted to the Collateral Agent for
      the
      benefit of the Holder pursuant to a Security Agreement, as delivered by Borrower
      to Holder. The Borrower acknowledges and agrees that should a proceeding under
      any bankruptcy or insolvency law be commenced by or against the Borrower, or
      if
      any of the Collateral (as defined in the Security Agreement) should become
      the
      subject of any bankruptcy or insolvency proceeding, then the Holder should
      be
      entitled to, among other relief to which the Holder may be entitled under the
      Transaction Documents and any other agreement to which the Borrower and Holder
      are parties (collectively, "Loan Documents") and/or applicable law, an order
      from the court granting immediate relief from the automatic stay pursuant to
      11
      U.S.C. Section 362 to permit the Holder to exercise all of its rights and
      remedies pursuant to the Loan Documents and/or applicable law. THE BORROWER
      EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY IMPOSED BY 11 U.S.C. SECTION
      362. FURTHERMORE, THE BORROWER EXPRESSLY ACKNOWLEDGES AND AGREES THAT NEITHER
      11
      U.S.C. SECTION 362 NOR ANY OTHER SECTION OF THE BANKRUPTCY CODE OR OTHER STATUTE
      OR RULE (INCLUDING, WITHOUT LIMITATION, 11 U.S.C. SECTION 105) SHALL STAY,
      INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY WAY THE ABILITY OF THE HOLDER
      TO
      ENFORCE ANY OF ITS RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS AND/OR
      APPLICABLE LAW. The Borrower hereby consents to any motion for relief from
      stay
      that may be filed by the Holder in any bankruptcy or insolvency proceeding
      initiated by or against the Borrower and, further, agrees not to file any
      opposition to any motion for relief from stay filed by the Holder. The Borrower
      represents, acknowledges and agrees that this provision is a specific and
      material aspect of the Loan Documents, and that the Holder would not agree
      to
      the terms of the Loan Documents if this waiver were not a part of this Note.
      The
      Borrower further represents, acknowledges and agrees that this waiver is
      knowingly, intelligently and voluntarily made, that neither the Holder nor
      any
      person acting on behalf of the Holder has made any representations to induce
      this waiver, that the Borrower has been represented (or has had the opportunity
      to he represented) in the signing of this Note and the Loan Documents and in
      the
      making of this waiver by independent legal counsel selected by the Borrower
      and
      that the Borrower has discussed this waiver with counsel.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      V

    

    MISCELLANEOUS

    

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

    

    5.2 Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: (i) if to the Borrower to: Attitude Drinks Inc., 11300
      U.S. Highway
      1, Suite 207, North Palm Beach, Florida 33408, Attn: Roy Warren, CEO and
      President, telecopier: (561) 799-5039, with a copy by telecopier only to: Weed
      & Co., LLP, 4695 MacArthur Court, Suite 1430, Newport Beach, CA 92660, Attn:
      Rick Weed, Esq., telecopier number: (949) 475-9087, and (ii) if to the Holder,
      to the name, address and telecopy number set forth on the front page of this
      Note, with a copy by telecopier
      only to
      Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York
      10176, telecopier number: (212) 697-3575.

    

    5.3 Amendment
      Provision.
      The
      term “Note” and all reference thereto, as used throughout this instrument, shall
      mean this instrument 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 the benefit of the Holder and its successors and
      assigns.

    

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

    

    5.6 Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of New York, including,
      but not limited to, New York statutes of limitations.
      Any
      action brought by either party against the other concerning the transactions
      contemplated by this Agreement shall be brought only in the civil or state
      courts of New York or in the federal courts located in the State and county
      of
      New York. Both parties and the individual signing this Agreement on behalf
      of
      the Borrower agree to submit to the jurisdiction of such courts. The prevailing
      party shall be entitled to recover from the other party its reasonable
      attorney's fees and costs. In
      the
      event that any provision of this Note is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or unenforceability of any other provision of this Note. Nothing contained
      herein shall be deemed or operate to preclude the Holder from bringing suit
      or
      taking other legal action against the Borrower in any other jurisdiction to
      collect on the Borrower's obligations to Holder, to realize on any collateral
      or
      any other security for such obligations, or to enforce a judgment or other
      decision in favor of the Holder. This
      Note shall be deemed an unconditional obligation of Borrower for the payment
      of
      money and, without limitation to any other remedies of Holder, may be enforced
      against Borrower by summary proceeding pursuant to New York Civil Procedure
      Law
      and Rules Section 3213 or any similar rule or statute in the jurisdiction where
      enforcement is sought. For purposes of such rule or statute, any other document
      or agreement to which Holder and Borrower are parties or which Borrower
      delivered to Holder, which may be convenient or necessary to determine Holder’s
      rights hereunder or Borrower’s obligations to Holder are deemed a part of this
      Note, whether or not such other document or agreement was delivered together
      herewith or was executed apart from this Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.7 Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum permitted by such law, any payments in excess
      of
      such maximum shall be credited against amounts owed by the Borrower to the
      Holder and thus refunded to the Borrower.

    

    5.8. Construction.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Note and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Note to favor any party

    against
      the other.

    

    5.9 Redemption.
      This
      Note may not be redeemed or called without the consent of the Holder except
      as
      described in this Note or the Subscription Agreement.

    

    5.10 Shareholder
      Status.
      The
      Holder shall not have rights as a shareholder of the Borrower with respect
      to
      unconverted portions of this Note. However, the Holder will have the rights
      of a
      shareholder of the Borrower with respect to the Shares of Common Stock to be
      received after delivery by the Holder of a Conversion Notice to the
      Borrower.

    

    5.11 Non-Business
      Days.
      Whenever any payment or any action to be made shall be due on a Saturday, Sunday
      or a public holiday under the laws of the State of New York, such payment may
      be
      due or action shall be required on the next succeeding business day and, for
      such payment, such next succeeding day shall be included in the calculation
      of
      the amount of accrued interest payable on such date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      Borrower has caused this Note to be signed in its name by an authorized officer
      as of the 8th day of January, 2008.

    

    
      	
              ATTITUDE
                DRINKS INC.

            
	 	 
	
              By:

            	
              /s/
                Roy G. Warren

            
	 	
                  
                Name: Roy G. Warren

            
	 	
                  Title:
                CEO

            

    

     

    WITNESS:

    

    /s/
      Debra
      L. Lieblong

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOTICE
      OF CONVERSION

    

    (To
      be
      executed by the Registered Holder in order to convert the Note)

    

    The
      undersigned hereby elects to convert $_________ of the principal and $_________
      of the interest due on the Note issued by Attitude Drinks Inc. on January ___,
      2008 into Shares of Common Stock of Attitude Drinks Inc. (the “Borrower”)
      according to the conditions set forth in such Note, as of the date written
      below.

    

    Date
      of
      Conversion:_________________________________________________________________________________

    

    Conversion
      Price:___________________________________________________________________________________

    

    Number
      of
      Shares of Common Stock Beneficially Owned on the Conversion Date:
      Less
      than 5% of the outstanding Common Stock of Attitude Drinks Inc.

     

    Shares
      To
      Be
      Delivered:______________________________________________________________________________

    

    Signature:_________________________________________________________________________________________

    

    Print
      Name:________________________________________________________________________________________

    

    Address:__________________________________________________________________________________________

     

    __________________________________________________________________________________________

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      of other documents omitted

    [(4)(5)
      Form of Secured Convertible Note]

    

    

    Secured
      Convertible Note issued to Momona Capital LLC

    

    Principal
      Amount $36,280

    Purchase
      Price $30,000

    Issue
      Date: January 8, 2008

    

    Secured
      Convertible Note issued to CMS Capital

    

    Principal
      Amount $120,930

    Purchase
      Price $100,000

    Issue
      Date: January 8, 2008

    

    Secured
      Convertible Note issued to Mahoney Associates

    

    Principal
      Amount $362,790

    Purchase
      Price $300,000

    Issue
      Date: January 8, 2008

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