Document:

Exhibit
4.2

NEITHER
THIS SECURITY NOR ANY SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAS
BEEN REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY U.S. STATE OR OTHER JURISDICTION OR ANY EXCHANGE
OR SELF-REGULATORY ORGANIZATION, IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, AND SUCH OTHER LAWS AND
REQUIREMENTS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT OR LISTING OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AND/OR
LISTING REQUIREMENTS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH WILL BE REASONABLY ACCEPTABLE
TO THE COMPANY.

VUBOTICS,
INC.

FORM OF

SENIOR,
SECURED, CONVERTIBLE PROMISSORY NOTE

	
  $            

  	
   

  	
              ,
  2007

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Atlanta, Georgia

  

 

FOR VALUE
RECEIVED, and upon and subject to the terms and conditions set
forth herein, VuBotics, Inc., a Georgia corporation (“Issuer”),
hereby promises to pay to the order of             ,
a             
(together with its permitted successors and assigns, “Holder”),
the principal sum of             
UNITED STATED DOLLARS (U.S. $            )
on the Maturity Date, together with interest as provided herein.  This Note was issued under and is subject to
a Securities Purchase Agreement (the “Purchase Agreement”)
dated as of August 28, 2007 among Issuer, payee and certain other parties.  Capitalized terms used and not otherwise
defined herein will have the respective meanings given to such terms in the
Purchase Agreement.

1.                                      Maturity
Date.  This Note will mature, and
be due and payable in full, on March 28, 2008 (the “Maturity Date”),
or such later date as may be agreed pursuant to Section 2.3.3 of the Purchase
Agreement, unless Holder has elected to convert this Note pursuant to Section 3
hereof.

2.                                     Interest.  This Note will not bear interest prior to the
earlier of (a) the Maturity Date or (b) the date on which all amounts due
hereunder will be immediately due and payable upon the occurrence of an Event
of Default, but will thereafter bear interest on the unpaid portion of the face
amount hereof until paid at the rate of eighteen percent (18%) per annum.

3.                                     Optional
Conversion of the Note.  

3.1                               By Holder.  At any time prior to repayment
of this Note, Holder may elect, in lieu of repayment, to convert all or a
portion of the outstanding principal and/or interest on this Note into that
number of shares of Common Stock (as defined in the Purchase Agreement) equal
to the product obtained by dividing (a) 83.33% of the amount of principal
and/or interest on this Note being converted, by (b) the Conversion Price (as
hereinafter defined).  Holder will inform
Issuer of such election at least 14 days prior to the date the Note or portion
thereof is converted into Common Stock. 
If Holder delivers such notice to Issuer, Issuer may not elect to pay to
Holder the amount of this Note to be converted without Holder’s written
consent. For purposes of this Note, “Conversion Price” will initially mean $.10
per share. The Conversion Price will be subject to adjustment as provided in
Section 3.3.

3.2                               By
Issuer.  At any time prior to
repayment of this Note, if the
volume weighted average price of the Common Stock on the OTC Bulletin Board
over any 10 consecutive trading days is $.60 or more per share, then Issuer may
give notice to Holder of its election to convert all or a portion of the
outstanding principal of, but not any outstanding interest on, this Note into
the same number of shares of Common Stock as would be calculated pursuant to
Section 3.1 above in the case of an optional conversion by Holder.  Upon conversion, Issuer will pay any
outstanding interest on this Note in cash to Holder.  Any notice of conversion will be
delivered at least 15 days prior to the date of such conversion and the
Conversion Price used in calculating the number of shares of Common Stock to be
issued to Holder will be the Conversion Price on the date of the actual
conversion (which will be the first date on which Holder becomes fully vested
with all rights of such holders of shares of Common Stock).

3.3                               Adjustments.

(a)                                  If Issuer pays a
dividend of Common Stock, makes a distribution in Common Stock, subdivides its
issued and outstanding Common Stock into a greater number of shares, increases
or decreases the number of shares of Common Stock outstanding by reclassifying
its Common Stock (whether through a recapitalization, consolidation, merger or
otherwise), then the Conversion Price on the record date of such division or
distribution or the effective date of such action will be adjusted by
multiplying such Conversion Price by a fraction whose numerator will be the
number of shares of Common Stock outstanding immediately before such event and
whose denominator will be the number of shares of Common Stock outstanding
immediately after such event.

(b)                                 If Issuer issues
additional Common Stock or other securities convertible into Common Stock or
exercisable to purchase Common Stock (other than (x) in a transaction for which
an adjustment is made pursuant to Section 3.3(a) hereof or (y) Common Stock (i)
options issued to any directors, officers or individual contractors of Issuer as
incentive compensation and any Common Stock issued upon exercise thereof, (ii)
issued for consideration other than cash 

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pursuant to a merger, consolidation, acquisition or similar business
combination, (iii) issued in exchange for services rendered to the Company, or
(iv) with respect to which the holders of Notes representing a majority of the
unpaid balance thereof waive their anti-dilution rights under this Section
3.3(b)) at a purchase price less than the applicable Conversion Price, then the
Conversion Price will be subject to a weighted average adjustment to reduce
dilution using the following formula:

NCP = OCP * ((CSO + CSP) / (CSO + CSAP)), where

NCP = new Conversion
Price; and

OCP = old Conversion
Price; and

CSO = shares of Common Stock outstanding prior to the
issuance of the securities triggering the adjustment to the Conversion Price
plus all shares of Common Stock issuable upon exercise of all outstanding
options, warrants, conversion rights and/or other similar rights to acquire
Common Stock, at an exercise or conversion price less than or equal to the old
Conversion Price, outstanding prior to the issuance of the securities
triggering the adjustment to the Conversion Price; and

CSP
= shares of Common Stock purchasable with consideration received by Issuer in
the issuance of securities triggering the adjustment to the Conversion Price
had such securities reflected a per share price for Common Stock that was the
same as the old Conversion Price; and

CSAP
= shares of Common Stock actually purchased, or deemed purchased, in the
issuance of securities triggering the adjustment to the Conversion Price.

3.4                               No
Rights as a Shareholder.  Without
limiting any rights that Holder is entitled to under the Purchase Agreement,
and if this Note has not been converted, Holder will not be entitled to any
voting or other rights as a shareholder of Issuer in connection with this Note.

[The following clause is
optional at the request of the Purchaser of this Note, with the choice between
4.99% and 9.99% being at the option of the Purchaser.]

3.5                               Limitation
on Beneficial Ownership.   Issuer will not effect and will
have no obligation to effect any conversion of this Note, and the Holder will
have no right to convert any portion of this Note, to the extent that after
giving effect to such conversion, the beneficial owner of such shares (together
with such person’s affiliates) would have acquired, through conversion of this
Note or otherwise, beneficial ownership of a number of shares of Common Stock
that exceeds 9.99% (“Maximum Percentage”)
of the number of shares of Common Stock outstanding immediately after giving
effect to such conversion.    For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by a person
and its affiliates shall include the number of shares of Common Stock issuable
upon conversion of this Note with respect to which the determination of such
sentence is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (A) conversion of the remaining, nonconverted
portion of this Note beneficially owned by such person or any of its affiliates
and (B) exercise or conversion of the unexercised or unconverted portion of any
other 

 3
 

securities of
Issuer (including, without limitation, any Warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained herein
beneficially owned by such person or any of its affiliates.  Except as set
forth in the preceding sentence, for purposes of this Section 3.5, beneficial
ownership will be calculated in accordance with Section 13(d) of the Exchange
Act.  For purposes of this Section 3.5, in determining the number of
outstanding shares of Common Stock, a Holder may rely on the number of shares
of outstanding Common Stock as reflected in (1) Issuer’s most recent Form 8-K,
Form 10-Q, Form 10-QSB, Form 10-K or Form 10-KSB as the case may be, (2) a more
recent public announcement by Issuer, or (3) any other notice by Issuer or its
transfer agent setting forth the number of shares of Common Stock
outstanding.  Upon the written request of any Holder, Issuer will
promptly, but in no event later than 2 business days following the receipt of
such notice, confirm orally and in writing to any such Holder the number of
shares of Common Stock then outstanding.  In any case, the number of
outstanding shares of Common Stock will be determined after giving effect to
conversions of Preferred Shares by such Holder and its affiliates since the
date as of which such number of outstanding Common Stock was reported.  By
written notice to Issuer, the Holder may increase or decrease the Maximum
Percentage to any other percentage not in excess of 9.99% specified in such
notice, but (i) any such increase will not be effective until the sixty-first
(61st) day after such notice is delivered to Issuer, and (ii) any such increase
or decrease will apply only to the Holder and not to any other Holder.

4.                                      Registration
Rights.  The Common Stock
issuable on conversion of this Note, is subject to registration  pursuant to a Registration Rights Agreement,
dated as of the date of this Note, among Issuer, the placement agents for the
securities contemplated under the Purchase Agreement, Holder and the other
purchasers under the Purchase Agreement.

5.                                      Security.
 Repayment of this Note is secured, pari passu with Holders of all other Notes
issued pursuant to the Purchase Agreement, by a first priority security
interest in substantially all the assets of Issuer pursuant to a security
agreement, related collateral assignments and such other necessary documents
entered into by Issuer in favor of Collateral Agent as collateral agent for the
purchasers.

6.                                      Prepayment.  Issuer may not prepay this Note prior to the
Maturity Date, without the written consent of Holder.

7.                                      Transfer.  Purchaser may transfer this Note in
compliance with applicable U.S. federal and state and/or foreign securities
laws and in accordance with Section 5.1 of the Purchase Agreement.

8.                                      Events
of Default.  An “Event of Default” will occur if:

(a)                                  Issuer fails to pay this Note in full on the Maturity Date

and/or

(b)                                 Issuer
or any subsidiary of Issuer makes an assignment for the benefit of creditors or
admits in writing its inability to pay its debts generally as they become due;
or an order, judgment or decree is entered adjudicating Issuer or any
subsidiary of Issuer bankrupt or 

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insolvent; or
any order for relief with respect to Issuer or any subsidiary is entered under
Title 11 of the United States Code (as now and hereafter in effect, or any
successor statute); or Issuer or any subsidiary petitions or applies to any
tribunal for the appointment of a custodian, trustee, receiver or liquidator of
Issuer or any subsidiary, or of any substantial part of the assets of Issuer or
any subsidiary, or commences any proceeding (other than a proceeding for the
voluntary liquidation and dissolution of any subsidiary) relating to Issuer or
any subsidiary under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, dissolution or liquidation law of any jurisdiction; or
any such petition or application is filed, or any such proceeding is commenced,
against Issuer or any subsidiary and either (a) Issuer or any such subsidiary
by any act indicates its approval thereof, consent thereto or acquiescence
therein or (b) such petition, application or proceeding is not dismissed within
60 days.

9.                                      Remedies. 
At such time that an Event of Default has occured and is continuing,
then Holder, by written notice to Issuer (the “Notice”), may declare all amounts
hereunder immediately due and payable in cash and Holder will be entitled to
reimbursement of its reasonable costs and expenses related to collection of all
amounts owing in connection thereof. 
Except for the Notice, Holder need not provide, and Company hereby
waives, any presentment, demand, protest or other notice of any kind, and
Holder may immediately and without expiration of any grace period enforce any
and all of its rights and remedies hereunder and all other remedies available
to it under applicable law. Such election may be rescinded and annulled by
Holder at any time prior to payment hereunder. 
No such rescission or annulment will affect any subsequent Event of
Default or impair any right consequent thereon.

10.                               Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder will be in writing
and will be deemed given and effective on the earliest of (a) the date of
transmission if such notice or communication is delivered by fax prior to 5:30
p.m. (Atlanta time) on a business day, (b) the next business day after the date
of transmission if such notice or communication is delivered via fax on a day
that is not a business day or later than 5:30 p.m. (Atlanta time) on a business
day, (c) the 2nd business day after the date of mailing if sent
by U.S. nationally recognized overnight courier service, or (d) upon actual
receipt by the party to whom such notice is required to be given. The facsimile
number and address for such notices and communications are as set forth on the
signature pages to the Purchase Agreement or as otherwise notified by any party
in a writing to the others in accordance herewith from time to time.

SIGNED,
SEALED AND DELIVERED as of the date first above written.

	
  

  	
   

  	
  VUBOTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Philip E. Lundquist

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Philip E. Lundquist

  
	
   

  	
   

  	
  Title: 

  	
  Chief Executive Officer

  

 

 5Exhibit
4.3

NEITHER
THIS SECURITY NOR ANY SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAS
BEEN REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY U.S. STATE OR OTHER JURISDICTION OR ANY EXCHANGE
OR SELF-REGULATORY ORGANIZATION, IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, AND SUCH OTHER LAWS AND
REQUIREMENTS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT OR LISTING OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AND/OR
LISTING REQUIREMENTS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH WILL BE REASONABLY ACCEPTABLE
TO THE COMPANY.

VUBOTICS,
INC.

FORM OF

COMMON
STOCK PURCHASE WARRANT

	
  Warrant Shares:

  	
   

  	
  Initial Exercise Date:                       ,
  2007

  

 

THIS COMMON STOCK
PURCHASE WARRANT (the “Warrant”) certifies that, for value received,                        ,
a                    
(the “Holder”), is entitled, upon the terms and conditions herein, at any time
on or after the date hereof (the “Initial Exercise Date”) and on or prior to
the close of business on                        
    , 2012 (the “Termination Date”), to subscribe for and
purchase from VuBotics, Inc., a Georgia corporation (the “Company”), up to                   
shares (the “Warrant Shares”) of common stock, par value $0.001 per share, of
the Company (the “Common Stock”). The purchase price of each share of Common
Stock under this Warrant will be equal to the Exercise Price as set forth in
Section 2(b).

Section 1.                                            Definitions.
Capitalized terms used and not defined herein will have the respective meanings
as set forth in that certain Securities Purchase Agreement (the “Purchase
Agreement”), dated August 28, 2007, by and between the Company, Holder and
certain other parties.

 1
 

Section 2.                                            Exercise.

(a)                                  Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may
be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company
of a duly executed facsimile copy of the Notice of Exercise Form attached as Exhibit
A; and, within three (3) Trading Days of the date said Notice of Exercise
is delivered to the Company, Holder will forward payment of the aggregate
Exercise Price of the shares thereby purchased by wire transfer. Each exercise
of this Warrant  will be for a whole
number of shares.  Holder will not be
required to physically surrender this Warrant to the Company until Holder has
purchased all of the Warrant Shares and the Warrant has been exercised in full,
in which case, Holder will surrender this Warrant to the Company for
cancellation within three (3) Trading Days of the date the final Notice of
Exercise is delivered to the Company. Partial exercises of this Warrant
resulting in purchases of a portion of the total number of Warrant Shares will
have the effect of reducing the number of Warrant Shares purchasable thereafter
in an amount equal to the number of Warrant Shares purchased. The Company will
maintain records showing the number of Warrant Shares purchased and the date of
such purchases. The Company will deliver any objection to any Notice of
Exercise Form within two (2) Business Days of receipt of such notice. “Business
Day” means any day except Saturday, Sunday, any day which will be a federal
legal holiday in the United States or any day on which banking institutions in
the State of New York are authorized or required by law or other governmental
action to close. Holder and any assignee, by acceptance of this Warrant,
acknowledge and agree that following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face hereof.

(b)                                 Exercise
Price. The exercise price per share of the Common Stock under this Warrant
will be Twenty Cents ($0.20), subject to adjustment hereunder (the “Exercise
Price”).

(c)                                  Mechanics
of Exercise.

(i)                                     Form
of Consideration.  The Warrant is
exercisable, in whole or in part, by either (a) delivery of the exercise price
in cash or (b) the Holder’s election of a cashless exercise, which will result
in the Holder receiving that number of shares of Common Stock equal to (X) the
excess of the fair market value per share (as determined by the volume weighted
average price of the Common Stock on the OTC Bulletin Board over any 10
consecutive trading days) over the exercise price per share on the date of
exercise, multiplied by (Y) the total number of shares as to which exercised,
and then divided by (Z) the exercise price per share.

(ii)                                  Authorization
of Warrant Shares. The Company covenants that all Warrant Shares which may
be issued upon the exercise of the purchase rights represented by this Warrant
will, upon exercise of the purchase rights represented by this Warrant
(including payment for the Warrant Shares), be duly authorized, validly issued,
fully paid and nonassessable and free from all taxes, liens and charges (other
than taxes in respect of any transfer occurring contemporaneously with such
issue).

(iii)                               Delivery
of Certificates Upon Exercise. Certificates for shares purchased hereunder
will be by physically delivery to the address specified by Holder in 

 2
 

the Notice of
Exercise within three (3) Trading Days from the delivery to the Company of the
Notice of Exercise Form, surrender of this Warrant (if required) and payment of
the aggregate Exercise Price as set forth above (“Warrant Share Delivery Date”).
This Warrant will be deemed to have been exercised on the date the Exercise
Price is received by the Company.  The
Warrant Shares will be deemed to have been issued, and Holder or any other
person so designated to be named therein will be deemed to have become a holder
of record of such shares for all purposes, as of the date the Warrant has been
exercised by payment to the Company of the Exercise Price and all taxes
required to be paid by Holder, if any, pursuant to Section 2(d)(vii) prior to
the issuance of such shares, have been paid.

(iv)                              Delivery
of New Warrants Upon Exercise. If this Warrant is exercised in part, the
Company will, at the request of Holder and upon surrender of this Warrant
certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the un-purchased Warrant Shares called for by this
Warrant, which new Warrant will be identical with this Warrant.

(v)                                 No
Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares will be issued upon the exercise of this Warrant. As to any
fraction of a share which Holder would otherwise be entitled to, the Company
will at its election, either pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Exercise Price
or round up to the next whole share.

(vi)                              Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares will be
made without charge to Holder for any issue or transfer tax or other incidental
expense in respect of the issuance of such certificate, all of which taxes and
expenses will be paid by the Company, and such certificates will be issued in
the name of Holder or in such name or names as may be directed by Holder;
however if certificates for Warrant Shares are to be issued in a name other
than the name of Holder, this Warrant when surrendered for exercise will be
accompanied by the Assignment Form attached as Exhibit B duly executed
by Holder; and the Company may require, as a condition thereto, the payment of
a sum sufficient to reimburse it for any transfer tax incidental thereto.

(vii)                           Closing
of Books. The Company will not close its stockholder books or records in
any manner which prevents the timely exercise of this Warrant, pursuant to the
terms hereof.

Section 3.                                            Adjustments.

(a)                                  If
the Company pays a dividend of Common Stock or makes a distribution in Common
Stock, subdivides its issued and outstanding Common Stock into a greater number
of shares, increases or decreases the number of shares of Common Stock
outstanding by reclassifying its Common Stock (whether through a recapitalization,
consolidation, merger or otherwise), then (a) the Exercise Price on the record
date of such division or distribution or the effective date of such action will
be adjusted by multiplying the Exercise Price by a fraction whose numerator is
the number of shares of 

 3
 

Common Stock
outstanding immediately before such event and whose denominator is the number
of shares of Common Stock outstanding immediately after such event, and (b) the
number of shares of Common Stock for which this Warrant may be converted
immediately before such event will be adjusted by multiplying such number by a
fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock outstanding immediately before such event

(b)                                 If
the Company issues additional Common Stock or other securities convertible into
Common Stock or exercisable to purchase Common Stock (other than (x) in a
transaction for which an adjustment is made pursuant to Section 3(a) hereof or
(y) Common Stock (i) options issued to any directors, officers or individual
contractors of Issuer as incentive compensation and any Common Stock issued
upon exercise thereof, (ii) issued for consideration other than cash pursuant
to a merger, consolidation, acquisition or similar business combination, (iii)
issued in exchange for services rendered to the Company, or (iv) with respect
to which the holders of Warrants representing a majority of the shares of
Common Stock issuable upon exercise thereof waive their anti-dilution rights
under this Section 3(b)) at a purchase price less than the $0.10 per share,
then the Exercise Price will be subject to a weighted average adjustment to
reduce dilution using the following formula:

NEP = OEP * ((CSO + CSP) / (CSO + CSAP)), where

NEP = new Exercise Price;
and

OEP = old Exercise Price;
and

CSO
= shares of Common Stock outstanding prior to the issuance of the securities
triggering the adjustment to the Exercise Price plus all shares of Common Stock
issuable upon exercise of all outstanding options, warrants, conversion rights
and/or other similar rights to acquire Common Stock, at an exercise or
conversion price less than or equal to the old Exercise Price, outstanding
prior to the issuance of the securities triggering the adjustment to the
Exercise Price; and

CSP
= shares of Common Stock purchasable with consideration received by the Company
in the issuance of securities triggering the adjustment to the Exercise Price
had such securities reflected a per share price for Common Stock that was the
same as the old Exercise Price; and

CSAP
= shares of Common Stock actually purchased, or deemed purchased, in the
issuance of securities triggering the adjustment to the Exercise Price.

(c)                                  Calculations.
All calculations under this Section 3 will be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of
a given date will be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

 4
 

(d)                                 Notice
to Holder.

(i)                                     Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any
provision of this Section 3, the Company will promptly mail to Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a
brief statement of the facts requiring such adjustment.

Section 4.                                            Transfer
of Warrant.

(a)                                  Transferability.
Subject to compliance with any applicable securities laws and the conditions
set forth in Section 4(d) hereof, this Warrant and all rights hereunder
(including, without limitation, any registration rights) are transferable, in
whole or in part, upon surrender of this Warrant at the principal office of the
Company or its designated agent, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by Holder or
its agent or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if required, such
payment, the Company will execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and will issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant will promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

(b)                                 New
Warrants. This Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office of the Company, together with a
written notice specifying the names and denominations in which new Warrants are
to be issued, signed by Holder or its agent or attorney. Subject to compliance
with Section 4(a), as to any transfer which may be involved in such division or
combination, the Company will execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

(c)                                  Warrant
Register. The Company will register this Warrant, upon records to be
maintained by the Company for that purpose (the “Warrant Register”), in the
name of the record Holder hereof from time to time. The Company may deem and
treat the registered Holder of this Warrant as the absolute owner hereof for
the purpose of any exercise hereof or any distribution to Holder, and for all
other purposes, absent actual notice to the contrary.

(d)                                 Transfer
Restrictions. If, at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant will
not be registered pursuant to an effective registration statement under the
Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer, that (i) Holder
or transferee of this Warrant, as the case may be, furnish to the Company a written
opinion of counsel (which opinion will be in form, substance and scope
customary for opinions of counsel in comparable transactions) to the effect
that such transfer may be made without registration under the Securities Act
and under applicable state securities or blue sky laws and (ii) Holder or
transferee execute and deliver to the Company an investment letter in form and
substance acceptable to the Company and a fully completed investor
questionnaire in the form of Exhibit F to the Purchase Agreement.

 5
 

Section 5.                                       Registration
Rights.  The Common Stock issuable
upon exercise of this Warrant is subject to registration pursuant to a
Registration Rights Agreement, dated as of the date hereof among the Company,
the placement agents for the securities contemplated under the Purchase
Agreement, Holder and the other purchasers under the Purchase Agreement.

[The following clause is
optional at the request of the Purchaser of this Warrant, with the choice
between 4.99% and 9.99% being at the option of the Purchaser.]

Section 6.                                       Limitation
on Beneficial Ownership.   The Company will not effect and will
have no obligation to effect any exercise of this Warrant, and the Holder will
have no right to convert any portion of this Note, to the extent that after
giving effect to such conversion, the beneficial owner of such shares (together
with such person’s affiliates) would have acquired, through exercise of this
Warrant or otherwise, beneficial ownership of a number of shares of Common
Stock that exceeds [4.99% / 9.99%] (“Maximum
Percentage”) of the number of shares of Common Stock outstanding
immediately after giving effect to such conversion.    For
purposes of the foregoing sentence, the number of shares of Common Stock
beneficially owned by a person and its affiliates shall include the number of
shares of Common Stock issuable upon exercise of this Warrant with respect to
which the determination of such sentence is being made, but shall exclude the
number of shares of Common Stock which would be issuable upon (A) exercise of
the remaining, non-exercised portion of this Warrant beneficially owned by such
person or any of its affiliates and (B) exercise or conversion of the
unexercised or unconverted portion of any other securities of the Company
(including, without limitation, the Notes) subject to a limitation on
conversion or exercise analogous to the limitation contained herein
beneficially owned by such person or any of its affiliates.  Except as set
forth in the preceding sentence, for purposes of this Section 6, beneficial
ownership will be calculated in accordance with Section 13(d) of the Exchange
Act.  For purposes of this Section 6, in determining the number of
outstanding shares of Common Stock, a Holder may rely on the number of shares
of outstanding Common Stock as reflected in (1) the Company’s most recent Form
8-K, Form 10-Q, Form 10-QSB, Form 10-K or Form 10-KSB as the case may be, (2) a
more recent public announcement by the Company, or (3) any other notice by the
Company or its transfer agent setting forth the number of shares of Common
Stock outstanding.  Upon the written request of any Holder, the Company
will promptly, but in no event later than 2 business days following the receipt
of such notice, confirm orally and in writing to any such Holder the number of
shares of Common Stock then outstanding.  In any case, the number of
outstanding shares of Common Stock will be determined after giving effect to
conversions of preferred shares by such Holder and its affiliates since the
date as of which such number of outstanding Common Stock was reported.  By
written notice to the Company, the Holder may increase or decrease the Maximum
Percentage to any other percentage not in excess of 9.99% specified in such
notice, but (i) any such increase will not be effective until the sixty-first
(61st) day after such notice is delivered to the Company, and (ii) any such
increase or decrease will apply only to the Holder and not to any other Holder.

Section 7.                                       Miscellaneous.

(a)                                  No
Rights as Shareholder Until Exercise. This Warrant does not entitle Holder
to any voting rights or other rights as a shareholder of the Company prior to
the exercise hereof as set forth in Section 2(d)(ii).

 6
 

(b)                                 Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, will not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and
dated as of such cancellation, in lieu of such Warrant or stock certificate.

(c)                                  Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any
action or the expiration of any right required or granted herein will not be a
Business Day, then such action may be taken or such right may be exercised on
the next succeeding Business Day.

(d)                                 Authorized
Shares.

The Company
covenants that during the period the Warrant is outstanding, it will reserve
from its authorized and unissued Common Stock a sufficient number of shares to
provide for the issuance of the Warrant Shares upon the exercise of any
purchase rights under this Warrant. The Company further covenants that its
issuance of this Warrant will constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares upon the exercise of the purchase
rights under this Warrant. The Company will take all such reasonable action as
may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of any stock exchange or quotation service upon which the Common
Stock is traded, listed or quoted at such time.

Except and to the
extent as waived or consented to by Holder, the Company will not by any action,
including, without limitation, amending its certificate of incorporation 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 of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant
against impairment. Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase
in par value, (b) take all such action as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and
nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use
commercially reasonable efforts to obtain all such authorizations, exemptions
or consents from any public regulatory body having jurisdiction thereof as may
be necessary to enable the Company to perform its obligations under this
Warrant.

Before taking any
action which would result in an adjustment in the number of Warrant Shares for
which this Warrant is exercisable or in the Exercise Price, the Company will
obtain all such authorizations or exemptions thereof, or consents thereto, as
may be necessary from any public regulatory body or bodies having jurisdiction
thereof.

 7
 

(e)                                  Jurisdiction.
All questions concerning the construction, validity, enforcement and
interpretation of this Warrant will be determined in accordance with the
provisions of the Purchase Agreement.

(f)                                    Restrictions.
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

(g)                                 Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any
right hereunder on the part of Holder will operate as a waiver of such right or
otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the
fact that all rights hereunder terminate on the Termination Date. If the
Company willfully and knowingly fails to comply with any provision of this
Warrant, which results in any material damages to Holder, the Company will pay
to Holder such amounts as will be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

(h)                                 Notices.
Any notice, request or other document required or permitted to be given or
delivered to Holder by the Company will be delivered in accordance with the
notice provisions of the Purchase Agreement.

(i)                                     Limitation
of Liability. No provision hereof, in the absence of any affirmative action
by Holder to exercise this Warrant to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of Holder, will give rise to any
liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

(j)                                     Remedies.
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant. The Company agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Warrant and hereby agrees to waive and not to assert the
defense in any action for specific performance that a remedy at law would be
adequate.

(k)                                  Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights
and obligations evidenced hereby will inure to the benefit of and be binding
upon the successors of the Company and the successors and permitted assigns of
Holder. The provisions of this Warrant are intended to be for the benefit of
all Holders from time to time of this Warrant and will be enforceable by any
such Holder or holder of Warrant Shares.

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

(m)                               Severability.
Wherever possible, each provision of this Warrant will be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Warrant will be prohibited by or invalid under applicable law, such
provision 

 8
 

will be ineffective
to the extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this Warrant.

(n)                                 Headings.
The headings used in this Warrant are for the convenience of reference only and
will not, for any purpose, be deemed a part of this Warrant.

[signatures for
Purchase Warrant]

SIGNED,
SEALED AND DELIVERED as of the date first above written.

	
  

  	
   

  	
  VUBOTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Philip E. Lundquist

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Philip E. Lundquist

  
	
   

  	
   

  	
  Title: 

  	
  Chief Executive Officer

  

 

 9
 

EXHIBIT A

NOTICE OF EXERCISE

TO: [                                          

(1) The
undersigned hereby elects to purchase                   
Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

(2) Payment will
be in lawful money of the United States.

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

The Warrant Shares
will be delivered by physical delivery of a certificate to:

(4) Accredited
Investor. The undersigned is an “accredited investor” as defined in Regulation
D promulgated under the Securities Act of 1933, as amended.

[SIGNATURE OF
HOLDER]

	
  Name of Investing Entity:

  	
   

  	
   

  
	
  Signature of Authorized Signatory of Investing
  Entity:

  	
   

  	
   

  
	
  Name of Authorized Signatory:

  	
   

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
							

 

 10
 

EXHIBIT B

ASSIGNMENT FORM

(To assign the
foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

FOR VALUE
RECEIVED, [     ] all of or [      ]
shares of the foregoing Warrant and all rights evidenced thereby are hereby
assigned to                  
whose address is                                    .

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  
	
  Holder’s Signature:

  	
   

  	
   

  
	
   

  
	
  Holder’s Address:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guaranteed:

  	
   

  	
   

  
											

 

NOTE: The
signature to this Assignment Form must correspond with the name as it appears
on the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations
and those acting in a fiduciary or other representative capacity should file
proper evidence of authority to assign the foregoing Warrant.

 11

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