Document:

EXHIBIT 4.6

                                   SCHEDULE II
                       SCHEDULE OF ADDITIONAL PROVISIONS

EXTENSION ELECTION:

         This Note will mature on the Initial Stated  Maturity Date,  unless the
maturity of all or any portion of the principal  amount of this Note is extended
in accordance with the procedures described below. In no event will the maturity
of this Note be extended beyond the Final Stated Maturity Date.

         During a notice period  relating to an Election Date (as defined below)
the  Holder  may elect to  extend  the  maturity  of all or any  portion  of the
principal  amount of this Note (in any  multiple of $1,000) so that the maturity
of this Note will be extended  to the  Corresponding  Maturity  Date (as defined
below) for the immediately  following Election Date, provided,  however, if such
maturity  date is not a  Business  Day,  the  maturity  of this Note will be the
immediately  preceding  Business Day. The  "Election  Dates" are the 15th day of
each March, June,  September,  and December,  if such day is not a Business Day,
the next day that is a Business Day,  commencing on June 15, 2007, and ending on
March 15, 2010. The respective  "Corresponding  Maturity Date" for each Election
Date is the 15th day of the 24th calendar month  following the Election Date for
which an election to extend is made.  If no election is made,  the maturity date
of this Note is the  Corresponding  Maturity Date for the immediately  preceding
Election Date.

         To make an  effective  election,  the Holder  must  deliver a notice of
election during the notice period for an Election Date substantially in the form
attached  hereto as Exhibit A (an "Election  Notice") duly completed and, in the
event of an election to extend the  maturity of only a portion of the  principal
of this Note,  this Note.  The notice  period for an Election Date begins on the
6th  Business  Day  prior to the  Election  Date and  ends on the  Business  Day
immediately  preceding the Election Date. The Holder's  Election  Notice must be
delivered to the Paying Agent through the normal  clearing system  channels,  no
later than the close of  business in New York City on the last  Business  Day in
the notice period, at which time such notice becomes irrevocable.

         If,  with  respect to any  Election  Date,  the Holder does not make an
election to extend the maturity of all or a portion of the  principal  amount of
this Note, the principal  amount of this Note for which the Holder has failed to
make such an election  will become due and payable on the earlier of the Initial
Stated  Maturity Date or such later  Corresponding  Maturity Date related to the
relevant  Election  Date on which  the  maturity  of this  Note  was  previously
extended  or if  such  day is not a  Business  Day,  the  immediately  preceding
Business Day. The  principal  amount of this Note for which such election is not
exercised will be represented by a new note  substantially  in the form attached
hereto as Exhibit B (each a "Short Term Note")  issued as of such  Election Date
and Schedule A hereto shall be annotated as of such Election Date to reflect the
corresponding  decrease in the principal amount hereof.  Each Short Term Note so
issued  will  have  the  same  terms as this  Note,  except  that it will not be
extendible, will have the relevant

                   Hartford Life Global Funding Trust 2007-003
                                     SII - 1

<PAGE>

CUSIP number  specified  below and its maturity  date will be the earlier of the
Initial Stated Maturity Date or such later  Corresponding  Maturity Date related
to the  relevant  Election  Date on  which  the  maturity  of this  Note was not
extended,  or, if such day is not a  Business  Day,  the  immediately  preceding
Business  Day. The failure to elect to extend the maturity of all or any portion
of the principal of this Note will be  irrevocable  and will be binding upon any
subsequent holder of this Note.

         The Trust and the Indenture Trustee shall deem this Note canceled as to
any  portion  hereof  for  which  a  duly  completed  Election  Notice  and,  if
applicable,  this Note are not  delivered  to the Paying Agent during the notice
period for any Election Date.

         If, with respect to any Election Date under this Note,  the Holder does
not extend the maturity of all of the principal  amount of this Note, the Paying
Agent, on behalf of the Trust, shall immediately (but in no event later than the
third (3rd) Business Day following the relevant  Election Date) notify  Hartford
Life of the amount  not  extended  which  shall be the  principal  amount of the
Funding Agreement redeemed on the applicable maturity date.

SPREAD:

         The spread for the Notes for the indicated periods is as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------- ---------------
                                                  PERIOD                                     SPREAD
---------------------------------------------------------------------------------------- ---------------
<S>                                                                                      <C>
From and including the Issuance Date to but not including March 15, 2009                 + 0.02%
---------------------------------------------------------------------------------------- ---------------
From and including March 15, 2009 to but not including March 15, 2010                    + 0.03%
---------------------------------------------------------------------------------------- ---------------
From and including March 15, 2010 to but not including the Final Stated Maturity Date    + 0.04%
---------------------------------------------------------------------------------------- ---------------
</TABLE>
CUSIP NUMBERS:

         The CUSIP numbers for each possible Short Term Note shall be as follows
with regard to each possible maturity date for such Short Term Note:

--------------------------------------- --------------------------------------
             CUSIP NUMBER                           MATURITY DATE
--------------------------------------- --------------------------------------
              41659EFN2                            March 15, 2009
--------------------------------------- --------------------------------------
              41659EFP7                             June 15, 2009
--------------------------------------- --------------------------------------
              41659EFQ5                          September 15, 2009
--------------------------------------- --------------------------------------
              41659EFR3                           December 15, 2009
---------------------------------------- --------------------------------------
              41659EFS1                            March 15, 2010
--------------------------------------- --------------------------------------
              41659EFT9                             June 15, 2010
--------------------------------------- --------------------------------------
              41659EFU6                          September 15, 2010
--------------------------------------- --------------------------------------
              41659EFV4                           December 15, 2010
--------------------------------------- --------------------------------------
              41659EFW2                            March 15, 2011
--------------------------------------- --------------------------------------
              41659EFX0                             June 15, 2011
--------------------------------------- --------------------------------------
              41659EFY8                          September 15, 2011
--------------------------------------- --------------------------------------
              41659EFZ5                           December 15, 2011
--------------------------------------- --------------------------------------

                   Hartford Life Global Funding Trust 2007-003
                                     SII - 2

<PAGE>

                                   SCHEDULE A

         The initial  aggregate  principal  amount of the Note  evidenced by the
Certificate to which this Schedule is attached is $300,000,000. The notations on
the following table evidence decreases in the aggregate  principal amount of the
Note evidenced by such Certificate:
<TABLE>
<CAPTION>
-------------------------- ------------------------------ --------------------------------- --------------------------
Election Date              Decreases in  Principal        Principal Amount of this Note     Notation by Security
                           Amount of this Note            Remaining After Such Decrease     Registrar
-------------------------- ------------------------------ --------------------------------- --------------------------
<S>                        <C>                            <C>                               <C>
-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------

-------------------------- ------------------------------ --------------------------------- --------------------------
</TABLE>

                   Hartford Life Global Funding Trust 2007-003
                                     SII - 3

<PAGE>

                                    EXHIBIT A
                                    ---------
                             FORM OF ELECTION NOTICE

The undersigned hereby elects to extend the maturity of the Hartford Life Global
Funding Trust 2007-003 Secured  Medium-Term Note (CUSIP  41659EFM4) (the "Note")
(or the portion thereof  specified  below) with the effect provided in said Note
by delivering  this Election  Notice duly  completed by the Holder of said Note,
and in the event of an election to extend the  maturity of only a portion of the
principal amount of said Note, by surrendering  said Note to the Paying Agent at
the following address:

                  The Bank of New York Trust Company, N.A.
                  4 New York Plaza, 15th Floor
                  New York, NY 10004

or such other  address of which the Paying  Agent shall from time to time notify
the Holders of the Notes.

If the option to extend the maturity of less than the entire principal amount of
said Note is elected, specify the portion of said Note (which shall be $1,000 or
an integral  multiple of $1,000 in excess thereof) as to which the Holder elects
to  extend  the  maturity:   $_________;   and  specify  the   denomination   or
denominations (which shall be $1,000 or an integral multiple of $1,000 in excess
thereof)  of the  Notes in the form  attached  to said  Note as  Exhibit B to be
issued to the Holder for the  portion of said Note to which the option to extend
the maturity is not being elected (in absence of any such specification one such
Note in the form of said  Exhibit B will be issued  for the  portion as to which
the option to extend maturity is not being made): $__________.

Date:____________________

                                        ________________________________
                                        NOTICE:  The  signature on this Election
                                        Notice must  correspond with the name as
                                        written  upon  the  face of the  Note in
                                        every particular,  without alteration or
                                        enlargement or any change whatever.

                   Hartford Life Global Funding Trust 2007-003
                                      A - 1

<PAGE>

                                    EXHIBIT B
                                    ---------
                             FORM OF SHORT-TERM NOTE

THIS NOTE IS A GLOBAL  NOTE  WITHIN THE  MEANING OF THE  INDENTURE  (HEREINAFTER
DEFINED)  AND IS  REGISTERED  IN THE NAME OF A  DEPOSITARY  (AS  DEFINED  IN THE
INDENTURE) OR A NOMINEE OF A DEPOSITARY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES
REGISTERED  IN THE NAME OF A PERSON  OTHER THAN THE  DEPOSITARY  OR ITS  NOMINEE
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE,  AND NO TRANSFER
OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITARY TO
A NOMINEE OF THE  DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE  DEPOSITARY)  MAY BE REGISTERED  EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF THE DEPOSITORY
TRUST  COMPANY,  A NEW  YORK  CORPORATION  ("DTC"),  TO THE  TRUST  (HEREINAFTER
DEFINED) OR ITS AGENT FOR  REGISTRATION  OF TRANSFER,  EXCHANGE OR PAYMENT,  AND
UNLESS ANY  CERTIFICATE  ISSUED IS  REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH  OTHER  ENTITY AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF DTC),  ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
<TABLE>
<CAPTION>
               REGISTERED NO.:                CUSIP NO.:                                            PRINCIPAL AMOUNT: U.S. $
<S>                                                                              <C>
Issuance Date:                                                                   Floating Rate Note: [X] Yes [ ] No.
Settlement Date:                                                                 If yes, Regular Floating Rate Notes [X] / Inverse
Issue Price: 100%                                                                Floating Rate Notes [ ]
Stated Maturity Date:  ___________, or if such day is not a                           Fixed Interest Rate:
    Business Day, the immediately preceding Business Day.                        Floating Rate/ Fixed Rate Notes: [ ]
Securities Exchange Listing: [ ] Yes [X] No. If yes, indicate name(s) of              Fixed Interest Rate:
    Securities Exchange(s):______________________________.                            Fixed Rate Commencement Date:
Depositary: The Depository Trust Company.                                        Interest Rate Basis(es):
Authorized Denominations: $1,000 integral amounts.                               CD Rate [ ]
Collateral held in the Trust:  Hartford Life Insurance Company Funding           CMT Rate [ ]
    Agreement No. FA-407003, all proceeds of the Funding Agreement and all       Designated CMT Telerate Page:
    rights and books and records pertaining to the foregoing.                             If Telerate Page 7052: [ ] Weekly Average
Additional Amounts to be Paid: [ ] Yes [X] No                                                                    [ ] Monthly Average
Interest Rate or Formula:                                                             Designated CMT Maturity Index:
Fixed Rate Note: [  ] Yes [X] No. If yes,                                             Commercial Paper Rate [ ]
    Interest Rate:                                                                    Federal Funds Rate [ ]
    Interest Payment Dates:                                                               LIBOR [X]
    Additional/Other Terms:                                                              [X] LIBOR Reuters Page:  LIBOR 01
Amortizing Note: [ ] Yes [X] No. If yes, Amortization schedule or formula:               [ ] LIBOR Moneyline Telerate Page:
    Additional/Other Terms:                                                               LIBOR Currency: U.S. Dollars
Discount Note: [ ] Yes [X] No. If yes, Total Amount of Discount:                       Prime Rate [ ]
    Initial Accrual Period of Discount:                                                Treasury Rate [ ]
    Interest Payment Dates:                                                      Index Maturity: Three month.
    Additional/Other Terms:                                                      Spread:  See attached Schedule II.
                                                                                 Spread Multiplier: Not applicable.
                                                                                 Initial Interest Rate, if any:
</TABLE>

                   Hartford Life Global Funding Trust 2007-003
                                      B - 1

<PAGE>

<TABLE>
<S>                                                                        <C>
Redemption Provisions: [X] Yes [ ]  No.   If yes,                          Initial Interest Reset Date:  __________; provided
    Initial Redemption Date:  Any day on or after the                        that if such day is not a Business Day, such
    Issuance Date.                                                           Interest Reset Date will be the next succeeding
    Redemption Dates: Any day on or after the Issuance Date.                 day that is a Business Day, unless that succeeding
    Initial Redemption Percentage: 100%                                      Business Day would fall in the next calendar
    Annual Redemption Percentage Reduction, if any:  N/A                     month, in which case such Interest Reset Date will
    Additional/Other Terms:  Notwithstanding anything on the                 be the immediately preceding Business Day.
    reverse hereof to the contrary, the Trust may redeem this Note         Interest Reset Dates: The 15th day of each June,
    on any day, provided that the Trust has provided written notice to       September, December and March; provided that if
    the Holder hereof not more than twenty (20) nor less than fifteen        such day is not a Business Day, such Interest
    15) calendar days prior to the proposed redemption date.                 Reset Date will be the next succeeding day that
Repayment Provisions: [ ] Yes [X] No. If yes,                                is  a Business Day, unless that succeeding Business
    Repayment Date(s):                                                       Day would fall in the next calendar month, in
    Repayment Price:                                                         which case such Interest Reset Date will be the
    Additional/Other Terms:                                                  immediately preceding Business Day.
Regular Record Date(s): 15 days prior to each Interest                     Interest Determination Date(s):  As provided herein.
Payment Date.                                                              Interest Payment Dates: The 15th day of each June,
Sinking Fund: None.                                                          September, December and March; provided that (1)
Day Count Convention: Actual/360.                                            if such Interest Payment Date (other than the
Specified Currency:  U.S. Dollars.                                           maturity date) is not a Business Day, such
Exchange Rate Agent: Not Applicable                                          Interest Payment Date will be the next succeeding
                                                                             day that is a Business Day, unless that succeeding
                                                                             Business Day would fall in the next calendar
                                                                             month, in which case such Interest Payment Date
                                                                             will be the immediately preceding Business Day and
                                                                             (2) the final Interest Payment Date of this Note
                                                                             will be the maturity date of this Note.
                                                                           Maximum Interest Rate, if any: Not applicable.
                                                                           Minimum Interest Rate, if any: Not applicable.
                                                                           Additional/Other Terms:  See attached Schedule II.
                                                                           Calculation Agent:  The Bank of New York Trust
                                                                           Company, N.A.

</TABLE>

         The Hartford Life Global Funding Trust  designated above (the "Trust"),
for value  received,  hereby  promises to pay to Cede & Co.,  or its  registered
assigns,  the  Principal  Amount  specified  above on the Stated  Maturity  Date
specified  above and, if so specified  above,  to pay interest  thereon from the
Issuance  Date  specified  above or from the most recent  Interest  Payment Date
specified above to which interest has been paid or duly provided for at the rate
per annum determined in accordance with the provisions on the reverse hereof and
as specified  above,  until the principal  hereof is paid or made  available for
payment.  Unless otherwise specified above,  payments of principal,  premium, if
any,  and  interest  hereon  will be made in the lawful  currency  of the United
States of America ("U.S. Dollars" or "United States dollars").  If the Specified
Currency  specified above is other than U.S. Dollars,  the Holder (as defined in
the  Indenture)  shall  receive  such  payments  in such  Foreign  Currency  (as
hereinafter defined).  The "Principal Amount" of this Note at any time means (1)
if this Note is a Discount Note (as  hereinafter  defined),  the Amortized  Face
Amount (as hereinafter  defined) at such time (as defined in SECTION 3(C) on the
reverse  hereof)  and (2) in all  other  cases,  the  Principal  Amount  hereof.
Capitalized  terms not otherwise  defined  herein shall have their  meanings set
forth in the Indenture, dated as of the Issuance Date (the "Indenture"), between
The  Bank of New  York  Trust  Company,  N.A.,  as the  indenture  trustee  (the
"Indenture Trustee"), and the Trust, or on the face hereof.

This Note will mature on the Stated Maturity Date,  unless its principal (or any
installment  of its  principal)  becomes  due and  payable  prior to the  Stated
Maturity Date,  whether,  as applicable,  by the  declaration of acceleration of
maturity,  notice of redemption by the Trust or otherwise  (the Stated  Maturity
Date or any date prior to the Stated  Maturity  Date on which this Note  becomes
due and payable, as the case may be, is referred to as the "MATURITY DATE").

A "DISCOUNT  NOTE" is any Note that has an Issue Price that is less than 100% of
the Principal  Amount thereof by more than a percentage  equal to the product of
0.25% and the number of full years to the Stated Maturity Date.

                   Hartford Life Global Funding Trust 2007-003
                                      B - 2
<PAGE>

Unless otherwise  specified above, the interest payable on each Interest Payment
Date or the  Maturity  Date will be the  amount  of  interest  accrued  from and
including the Issuance Date or from and including the last Interest Payment Date
to which  interest has been paid or duly  provided  for, as the case may be, to,
but excluding,  such Interest Payment Date or the Maturity Date, as the case may
be.

Unless  otherwise  specified above, the interest payable on any Interest Payment
Date will be paid to the Holder on the  Regular  Record  Date for such  Interest
Payment Date,  which Regular Record Date shall be the fifteenth  (15th) calendar
day, whether or not a Business Day,  immediately  preceding the related Interest
Payment Date;  PROVIDED that,  notwithstanding any provision of the Indenture to
the  contrary,  interest  payable on any  Maturity  Date shall be payable to the
Person to whom principal shall be payable;  and PROVIDED,  FURTHER,  that unless
otherwise  specified  above,  in the case of a Note  initially  issued between a
Regular  Record Date and the  Interest  Payment  Date  relating to such  Regular
Record Date,  interest for the period  beginning on the Issuance Date and ending
on such  Interest  Payment  Date  shall  be paid on the  Interest  Payment  Date
following  the next  succeeding  Regular  Record Date to the Holder on such next
succeeding Regular Record Date.

Payments of principal  of, and premium,  if any, and interest and other  amounts
due and owing, if any, will be made through the Indenture Trustee to the account
of  DTC  or  its  nominee  and  will  be  made  in  accordance  with  depositary
arrangements with DTC.

Unless  otherwise  specified on the face hereof,  the Holder  hereof will not be
obligated to pay any administrative costs imposed by banks in making payments in
immediately available funds by the Trust. Unless otherwise specified on the face
hereof,  any  tax  assessment  or  governmental  charge  imposed  upon  payments
hereunder,  including, without limitation, any withholding tax, will be borne by
the Holder hereof.

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE
REVERSE  HEREOF.  SUCH FURTHER  PROVISIONS  SHALL FOR ALL PURPOSES HAVE THE SAME
EFFECT AS IF SET FORTH AT THIS PLACE.

Unless the certificate of authentication  hereon shall have been executed by the
Indenture Trustee pursuant to the Indenture,  this Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

                   Hartford Life Global Funding Trust 2007-003
                                      B - 3
<PAGE>

         IN WITNESS  WHEREOF,  the Trust has caused this  instrument  to be duly
executed, by manual or facsimile signature.

                            HARTFORD LIFE GLOBAL FUNDING TRUST 2007-003

Dated: [o]                  By:  Wilmington Trust Company, not in its individual
                            capacity  but solely as Delaware Trustee.

                            By: __________________________________
                                Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Notes of the  Hartford  Life  Global  Funding  Trust
specified  on the face of this  Note  and  referred  to in the  within-mentioned
Indenture.

                            THE BANK OF NEW YORK TRUST COMPANY, N.A.
                            As Indenture Trustee

Dated:  [o]

                            By: _____________________________
                                authorized officer

                   Hartford Life Global Funding Trust 2007-003
                                      B - 4

<PAGE>

                                [REVERSE OF NOTE]

SECTION 1. GENERAL. This Note is one of a duly authorized issue of Notes of the
Trust. The Notes are issued pursuant to the Indenture.

SECTION 2. CURRENCY.

         (a)  Unless  specified  otherwise  on the  face  hereof,  this  Note is
denominated in, and payments of principal,  premium, if any, and/or interest, if
any, will be made in U.S. Dollars. If specified as the Specified Currency,  this
Note may be denominated in, and payments of principal,  premium,  if any, and/or
interest,  if any, may be made in a single  currency other than U.S.  Dollars (a
"Foreign  Currency").  If this Note is  denominated in a Foreign  Currency,  the
Holder of this Note is required to pay for this Note in the Specified Currency.

         (b) Unless  specified  otherwise  on the face  hereof,  if this Note is
denominated  in a Foreign  Currency,  the Trust is obligated to make payments of
principal of, and premium,  if any, and  interest,  if any, on, this Note in the
Specified  Currency.  Any  amounts  so  payable  by the  Trust in the  Specified
Currency  will be  converted by the  Exchange  Rate Agent into U.S.  Dollars for
payment to the Holder hereof unless otherwise specified on the face of this Note
or the Holder elects, in the manner described below, to receive these amounts in
the Specified Currency.  If this Note is denominated in a Foreign Currency,  any
U.S.  Dollar amount to be received by the Holder hereof will be based on the bid
quotation  in The  City of New  York  received  by the  Exchange  Rate  Agent at
approximately  11:00  A.M.,  New York City  time,  on the  second  Business  Day
preceding the applicable  payment date from a recognized foreign exchange dealer
(which may be the Exchange  Rate Agent)  selected by the Exchange Rate Agent and
approved by the Trust for the  purchase by the quoting  dealer of the  Specified
Currency for U.S.  Dollars for  settlement on that payment date in the aggregate
amount of the Specified  Currency  payable to all Holders of the Notes scheduled
to receive U.S.  Dollar  payments and at which the applicable  dealer commits to
execute a contract.  All currency exchange costs will be borne by the Holders of
the Notes by deductions from any payments.  If a bid quotation is not available,
payments will be made in the Specified Currency.  If this Note is denominated in
a Foreign  Currency,  the  Holder of this  Note may  elect to  receive  all or a
specified portion of any payment of principal, premium, if any, and/or interest,
if any,  in the  Specified  Currency  by  submitting  a written  request  to the
Indenture  Trustee at its  Corporate  Trust Office in The City of New York on or
prior to

                   Hartford Life Global Funding Trust 2007-003
                                      B - 5
<PAGE>

the  applicable  Regular  Record Date or at least 15 calendar  days prior to the
Maturity  Date,  as the case may be. This written  request may be mailed or hand
delivered or sent by cable, telex or other form of facsimile transmission.  This
election will remain in effect until revoked by written notice  delivered to the
Indenture  Trustee on or prior to a Regular  Record Date or at least 15 calendar
days  prior to the  Maturity  Date,  as the case may be.  The  Holder  of a Note
denominated in a Foreign  Currency to be held in the name of a broker or nominee
should contact their broker or nominee to determine  whether and how an election
to receive  payments in the  Specified  Currency may be made.  Unless  specified
otherwise  on the face  hereof,  if the  Specified  Currency  is other than U.S.
Dollars,  a beneficial owner of a Note represented by a Global Note which elects
to receive payments of principal,  premium, if any, and/or interest,  if any, in
the  Specified  Currency must notify the  participant  through which it owns its
interest  on or  prior  to the  applicable  Regular  Record  Date or at least 15
calendar  days prior to the Maturity  Date, as the case may be, of its election.
The  applicable  participant  must notify DTC of its election on or prior to the
third  Business  Day after the  applicable  Regular  Record  Date or at least 12
calendar  days  prior to the  Maturity  Date,  as the case may be,  and DTC will
notify the Indenture  Trustee of that election on or prior to the fifth Business
Day after the applicable Regular Record Date or at least ten calendar days prior
to the Maturity Date, as the case may be. If complete  instructions are received
by the  participant  from the applicable  beneficial  owner and forwarded by the
participant  to DTC, and by DTC to the  Indenture  Trustee,  on or prior to such
dates,  then the  applicable  beneficial  owner  will  receive  payments  in the
Specified Currency.

         (c) The  Trust  will  indemnify  the  Holder  hereof  against  any loss
incurred as a result of any judgment or order being given or made for any amount
due under this Note and that judgment or order  requiring  payment in a currency
(the "Judgment Currency") other than the Specified Currency,  and as a result of
any variation between:  (i) the rate of exchange at which the Specified Currency
amount is converted into the Judgment  Currency for the purpose of that judgment
or order;  and (ii) the rate of  exchange  at which the  Holder,  on the date of
payment of that judgment or order,  is able to purchase the  Specified  Currency
with the amount of the Judgment Currency actually received.

         (d) Unless otherwise specified on the face hereof, if payment hereon is
required to be made in a Foreign  Currency and such currency is unavailable  due
to the imposition of exchange controls or other circumstances beyond the Trust's
control, then the Trust will be entitled to make payments with respect hereto in
U.S. Dollars on the basis of the Market Exchange Rate (as hereinafter  defined),
computed by the  Exchange  Rate Agent,  on the second  Business Day prior to the
particular payment or, if the Market Exchange Rate is not then available, on the
basis of the most recently available Market Exchange Rate.

         (e) The "Market  Exchange Rate" for the Foreign Currency shall mean the
noon  dollar  buying  rate in The City of New York for cable  transfers  for the
Foreign Currency as certified for customs purposes (or, if not so certified,  as
otherwise determined) by the Federal Reserve Bank of New York.

         (f) All determinations  made by the Exchange Rate Agent shall be at its
sole  discretion and shall,  in the absence of manifest error, be conclusive for
all purposes and binding on the Holder hereof.

         (g) All costs of exchange in respect of this Note, if  denominated in a
Foreign Currency, will be borne by the Holder hereof.

SECTION 3.  DETERMINATION OF INTEREST RATE AND CERTAIN OTHER TERMS.

         (a) FIXED RATE NOTES. If this Note is specified on the face hereof as a
"Fixed Rate Note":

           (i) This Note will bear  interest at the rate per annum  specified on
           the face hereof.  Interest on this Note will be computed on the basis
           of a 360-day year of twelve 30-day months.

                   Hartford Life Global Funding Trust 2007-003
                                      B - 6
<PAGE>

           (ii) Unless  otherwise  specified  on the face  hereof,  the Interest
           Payment Dates for this Note will be as follows:

                 INTEREST PAYMENT FREQUENCY        INTEREST PAYMENT DATES
                 -----------------------------     -----------------------------
                 Monthly                           Fifteenth    day   of    each
                                                   calendar month,  beginning in
                                                   the  first   calendar   month
                                                   following the month this Note
                                                   was issued.

                 Quarterly                         Fifteenth  day of every third
                                                   calendar month,  beginning in
                                                   the  third   calendar   month
                                                   following the month this Note
                                                   was issued.

                 Semi-annual                       Fifteenth  day of every sixth
                                                   calendar month,  beginning in
                                                   the  sixth   calendar   month
                                                   following the month this Note
                                                   was issued.

                 Annual                            Fifteenth    day   of   every
                                                   twelfth    calendar    month,
                                                   beginning   in  the   twelfth
                                                   calendar month  following the
                                                   month this Note was issued.

           (iii) If any Interest  Payment Date or the Maturity Date of this Note
           falls on a day that is not a  Business  Day,  the Trust will make the
           required  payment of principal,  premium,  if any, and/or interest or
           other amounts on the next succeeding  Business Day, and no additional
           interest  will  accrue in  respect of the  payment  made on that next
           succeeding Business Day.

       (b) FLOATING  RATE NOTES. If this Note is specified on the face hereof as
           a "Floating Rate Note":

           (i) INTEREST RATE BASIS.  Interest on this Note will be determined by
           reference  to the  applicable  Interest  Rate Basis or Interest  Rate
           Bases,  which may, as described  below,  include the CD Rate, the CMT
           Rate, the Commercial  Paper Rate, the Federal Funds Rate,  LIBOR, the
           Prime Rate or the Treasury Rate (each as defined below) in accordance
           with a schedule attached hereto.

           (ii) EFFECTIVE  RATE.  The rate derived from the applicable  Interest
           Rate  Basis  will  be  determined  in  accordance  with  the  related
           provisions  below.  The  interest  rate in effect on each day will be
           based  on:  (1) if that  day is an  Interest  Reset  Date,  the  rate
           determined  as  of  the  Interest   Determination   Date  immediately
           preceding  that  Interest  Reset  Date;  or (2) if that day is not an
           Interest  Reset  Date,  the  rate   determined  as  of  the  Interest
           Determination  Date  immediately  preceding the most recent  Interest
           Reset Date.

           (iii) SPREAD; SPREAD MULTIPLIER;  INDEX MATURITY. The "Spread" is the
           number of basis  points (one  one-hundredth  of a  percentage  point)
           specified  on the face hereof to be added to or  subtracted  from the
           related Interest Rate Basis or Interest Rate Bases applicable to this
           Note. The "Spread Multiplier" is the percentage specified on the

                   Hartford Life Global Funding Trust 2007-003
                                      B - 7
<PAGE>

           face hereof of the related Interest Rate Basis or Interest Rate Bases
           applicable  to this Note by which the Interest Rate Basis or Interest
           Rate Bases will be multiplied to determine  the  applicable  interest
           rate.  The  "Index  Maturity"  is  the  period  to  maturity  of  the
           instrument or obligation  with respect to which the related  Interest
           Rate Basis or Interest Rate Bases will be calculated.

           (iv) REGULAR FLOATING RATE NOTE. Unless this Note is specified on the
           face hereof as a Floating Rate/Fixed Rate Note or an Inverse Floating
           Rate Note,  this Note (a  "Regular  Floating  Rate  Note")  will bear
           interest  at the  rate  determined  by  reference  to the  applicable
           Interest  Rate Basis or Interest  Rate Bases:  (1)  multiplied by the
           applicable  Spread  Multiplier,  if any; and/or (2) plus or minus the
           applicable  Spread,  if any.  Commencing on the first  Interest Reset
           Date, the rate at which  interest on this Regular  Floating Rate Note
           is payable will be reset as of each  Interest  Reset Date;  provided,
           HOWEVER,  that the  interest  rate in effect for the period,  if any,
           from the Issuance  Dateto the first  Interest  Reset Date will be the
           Initial Interest Rate.

           (v) FLOATING  RATE/FIXED RATE NOTES. If this Note is specified on the
           face hereof as a "Floating Rate/Fixed Rate Note", this Note will bear
           interest  at the  rate  determined  by  reference  to the  applicable
           Interest  Rate Basis or Interest  Rate Bases:  (1)  multiplied by the
           applicable  Spread  Multiplier,  if any; and/or (2) plus or minus the
           applicable  Spread,  if any.  Commencing on the first  Interest Reset
           Date, the rate at which this Floating Rate/Fixed Rate Note is payable
           will be reset as of each  Interest  Reset  Date;  PROVIDED,  HOWEVER,
           that:  (A) the interest  rate in effect for the period,  if any, from
           the  Issuance  Date to the  first  Interest  Reset  Date  will be the
           Initial  Interest  Rate  specified  on the face  hereof;  and (B) the
           interest  rate in effect  commencing  on the Fixed Rate  Commencement
           Date  will be the  Fixed  Interest  Rate,  if  specified  on the face
           hereof,  or, if not so specified,  the interest rate in effect on the
           day immediately preceding the Fixed Rate Commencement Date.

           (vi) INVERSE  FLOATING  RATE NOTES.  If this Note is specified on the
           face hereof as an "Inverse  Floating Rate Note",  this Note will bear
           interest  at the Fixed  Interest  Rate minus the rate  determined  by
           reference  to the  applicable  Interest  Rate Basis or Interest  Rate
           Bases: (1) multiplied by the applicable  Spread  Multiplier,  if any;
           and/or (2) plus or minus the  applicable  Spread,  if any;  PROVIDED,
           HOWEVER, that interest on this Inverse Floating Rate Note will not be
           less than zero. Commencing on the first Interest Reset Date, the rate
           at which interest on this Inverse  Floating Rate Note is payable will
           be reset as of each Interest Reset Date; PROVIDED,  HOWEVER, that the
           interest  rate in effect for the period,  if any,  from the  Issuance
           Date to the first  Interest  Reset Date will be the Initial  Interest
           Rate.

           (vii) INTEREST RESET DATES.  The period between  Interest Reset Dates
           will be the "Interest  Reset Period." Unless  otherwise  specified on
           the face  hereof,  the  Interest  Reset Dates will be, in the case of
           this  Floating Rate Note if by its terms it resets:  (1)  daily--each
           Business  Day;  (2)  weekly--the  Wednesday  of each  week,  with the
           exception  of any  weekly  reset  Floating  Rate Note as to which the
           Treasury Rate is an applicable  Interest Rate Basis, which will reset
           the  Tuesday of each week;  (3)  monthly--the  fifteenth  day of each
           calendar month; (4) quarterly--the fifteenth day

                   Hartford Life Global Funding Trust 2007-003
                                      B - 8
<PAGE>

           of every third calendar month,  beginning in the third calendar month
           following  the  month  in  which  the  Issuance  Date  occurred;  (5)
           semi-annually--the  fifteenth  day of  every  sixth  calendar  month,
           beginning in the sixth  calendar  month  following the month in which
           the Issuance Date occurred;  and (6)  annually--the  fifteenth day of
           every twelfth calendar month, beginning in the twelfth calendar month
           following  the month in which the Issuance Date  occurred;  PROVIDED,
           HOWEVER,  that, with respect to a Floating  Rate/Fixed Rate Note, the
           rate of interest  thereon will not reset after the  particular  Fixed
           Rate Commencement  Date. If any Interest Reset Date for this Floating
           Rate Note would  otherwise  be a day that is not a Business  Day, the
           particular  Interest  Reset  Date  will  be  postponed  to  the  next
           succeeding  Business Day,  except that in the case of a Floating Rate
           Note as to which LIBOR is an applicable  Interest Rate Basis and that
           Business  Day  falls  in the  next  succeeding  calendar  month,  the
           particular  Interest  Reset  Date will be the  immediately  preceding
           Business Day.

           (viii) INTEREST  DETERMINATION DATES. The interest rate applicable to
           a Floating Rate Note for an Interest  Reset Period  commencing on the
           related  Interest  Reset Date will be  determined by reference to the
           applicable  Interest  Rate  Basis  as  of  the  particular  "Interest
           Determination   Date",  which  will  be:  (1)  with  respect  to  the
           Commercial  Paper Rate,  Federal  Funds Rate and the Prime  Rate--the
           Business Day immediately  preceding the related  Interest Reset Date;
           (2) with respect to the CD Rate and the CMT Rate--the second Business
           Day preceding the related  Interest  Reset Date;  (3) with respect to
           LIBOR--the  second London Banking Day preceding the related  Interest
           Reset  Date,  unless  the  applicable  LIBOR  Currency  is (A) pounds
           sterling, in which case the Interest Determination Date - will be the
           related  Interest Reset Date, or (B) euro, in which case the Interest
           Determination  Date  will be the  second  TARGET  Settlement  Day (as
           defined below) preceding the applicable  Interest Reset Date; and (4)
           with respect to the Treasury  Rate--the  day of the week in which the
           related  Interest  Reset Date falls on which day  Treasury  Bills (as
           defined  below) are  normally  auctioned  (i.e.,  Treasury  Bills are
           normally sold at auction on Monday of each week, unless that day is a
           legal  holiday,  in which case the  auction is  normally  held on the
           following  Tuesday,  except  that  the  auction  may be  held  on the
           preceding Friday);  PROVIDED,  HOWEVER, that if an auction is held on
           the Friday of the week preceding the related Interest Reset Date, the
           Interest  Determination  Date  will  be  the  preceding  Friday.  The
           Interest  Determination  Date pertaining to a Floating Rate Note, the
           interest  rate of which is determined  with  reference to two or more
           Interest  Rate  Bases,  will be the latest  Business  Day which is at
           least two Business  Days before the related  Interest  Reset Date for
           the applicable  Floating Rate Note on which each Interest Reset Basis
           is  determinable.  "TARGET  SETTLEMENT  DAY" means a day on which the
           TARGET System is open.

           (ix) CALCULATION DATES. The interest rate applicable to each Interest
           Reset Period will be determined by the Calculation  Agent on or prior
           to the Calculation  Date (as defined  below),  except with respect to
           LIBOR,   which  will  be  determined  on  the   particular   Interest
           Determination  Date.  Upon  request of the Holder of a Floating  Rate
           Note, the  Calculation  Agent will disclose the interest rate then in
           effect  and,  if  determined,  the  interest  rate that  will  become
           effective as a result of a determination made for the next succeeding
           Interest Reset Date with respect to such Floating Rate

                   Hartford Life Global Funding Trust 2007-003
                                      B - 9
<PAGE>

           Note.  The  "CALCULATION  DATE",  if  applicable,  pertaining  to any
           Interest  Determination  Date will be the  earlier  of: (1) the tenth
           calendar day after the particular Interest  Determination Date or, if
           such day is not a Business Day, the next succeeding  Business Day; or
           (2) the Business Day  immediately  preceding the applicable  Interest
           Payment Date or the Maturity Date, as the case may be.

           (x)  MAXIMUM OR  MINIMUM  INTEREST  RATE.  If  specified  on the face
           hereof,  this Note may have either or both of a Maximum Interest Rate
           or a  Minimum  Interest  Rate.  If a  Maximum  Interest  Rate  is  so
           designated,  the interest  rate for a Floating  Rate Note cannot ever
           exceed such Maximum  Interest Rate and in the event that the interest
           rate on any Interest  Reset Date would  exceed such Maximum  Interest
           Rate  (as if no  Maximum  Interest  Rate  were in  effect)  then  the
           interest  rate on such  Interest  Reset  Date  shall  be the  Maximum
           Interest  Rate.  If a Minimum  Interest  Rate is so  designated,  the
           interest  rate for a Floating Rate Note cannot ever be less than such
           Minimum  Interest Rate and in the event that the interest rate on any
           Interest Reset Date would be less than such Minimum Interest Rate (as
           if no Minimum Interest Rate were in effect) then the interest rate on
           such  Interest  Reset  Date  shall  be  the  Minimum  Interest  Rate.
           Notwithstanding  anything  to  the  contrary  contained  herein,  the
           interest  rate on a Floating  Rate Note shall not exceed the  maximum
           interest rate permitted by applicable law.

           (xi)  INTEREST  PAYMENTS.  Unless  otherwise  specified  on the  face
           hereof, the Interest Payment Dates will be, in the case of a Floating
           Rate Note which resets: (1) daily,  weekly or monthly--the  fifteenth
           day of each  calendar  month or on the  fifteenth  day of every third
           calendar  month,  beginning in the third calendar month following the
           month in which the Issuance Date  occurred,  as specified on the face
           hereof;  (2)  quarterly--the  fifteenth  day of every third  calendar
           month,  beginning in the third calendar month  following the month in
           which the Issuance Date occurred;  (3)  semi-annually--the  fifteenth
           day of every sixth  calendar  month,  beginning in the sixth calendar
           month  following the month in which the Issuance Date  occurred;  and
           (4)  annually--the  fifteenth  day of every twelfth  calendar  month,
           beginning in the twelfth  calendar month following the month in which
           the Issuance Date occurred. In addition,  the Maturity Date will also
           be an Interest  Payment Date. If any Interest Payment Date other than
           the Maturity Date for this  Floating  Rate Note would  otherwise be a
           day that is not a Business Day,  such  Interest  Payment Date will be
           postponed to the next  succeeding  Business  Day,  except that in the
           case of a  Floating  Rate  Note as to which  LIBOR  is an  applicable
           Interest  Rate  Basis  and  that  Business  Day  falls  in  the  next
           succeeding  calendar month, the particular Interest Payment Date will
           be the immediately  preceding Business Day. If the Maturity Date of a
           Floating  Rate Note  falls on a day that is not a Business  Day,  the
           Trust will make the required payment of principal,  premium,  if any,
           and interest or other  amounts on the next  succeeding  Business Day,
           and no additional interest will accrue in respect of the payment made
           on that next succeeding Business Day.

           (xii) ROUNDING.  Unless otherwise  specified on the face hereof,  all
           percentages resulting from any calculation on this Floating Rate Note
           will be rounded to the nearest one hundred-thousandth of a percentage
           point, with five one-millionths of a

                   Hartford Life Global Funding Trust 2007-003
                                     B - 10
<PAGE>

           percentage  point  rounded  upwards.  All dollar  amounts  used in or
           resulting  from any  calculation  on this  Floating Rate Note will be
           rounded,  in the case of U.S. Dollars, to the nearest cent or, in the
           case of a Foreign  Currency,  to the nearest unit (with one-half cent
           or unit being rounded upwards).

           (xiii) INTEREST FACTOR. With respect to a Floating Rate Note, accrued
           interest is calculated by  multiplying  the principal  amount of such
           Note by an accrued  interest  factor.  The accrued interest factor is
           computed by adding the interest factor calculated for each day in the
           particular  Interest Reset Period.  The interest  factor for each day
           will be computed by dividing the interest rate applicable to such day
           by 360, in the case of a Floating  Rate Note as to which the CD Rate,
           the Commercial Paper Rate, the Federal Funds Rate, LIBOR or the Prime
           Rate is an applicable Interest Rate Basis, or by the actual number of
           days in the year, in the case of a Floating Rate Note as to which the
           CMT Rate or the Treasury Rate is an  applicable  Interest Rate Basis.
           The interest factor for a Floating Rate Note as to which the interest
           rate is calculated  with reference to two or more Interest Rate Bases
           will be  calculated  in each period in the same manner as if only the
           Interest Rate Basis specified under "Additional/Other Terms" applied.

           (xiv)  DETERMINATION  OF INTEREST RATE BASIS.  The Calculation  Agent
           shall  determine  the rate derived from each  Interest  Rate Basis in
           accordance with the following provisions.

               (1) CD RATE NOTES. If the Interest Rate Basis is the CD Rate,
               this Note shall be deemed a "CD Rate Note." Unless otherwise
               specified on the face hereof, "CD Rate" means, from the Issuance
               Date to the first Interest Reset Date, the Initial Interest Rate,
               if any, and thereafter:

                   (A) the rate on the particular Interest Determination Date
                   for negotiable United States dollar certificates of deposit
                   having the Index Maturity specified on the face hereof as
                   published in H.15(519) (as defined below) under the caption
                   "CDs (secondary market)"; or

                   (B) if the rate referred to in clause (A) is not so published
                   by 3:00 P.M., New York City time, on the related Calculation
                   Date, the rate on the particular Interest Determination Date
                   for negotiable United States dollar certificates of deposit
                   of the particular Index Maturity as published in H.15 Daily
                   Update (as defined below), or other recognized electronic
                   source used for the purpose of displaying the applicable
                   rate, under the caption "CDs (secondary market)"; or

                   (C) if the rate referred to in clause (B) is not so published
                   by 3:00 P.M., New York City time, on the related Calculation
                   Date, the rate on the particular Interest Determination Date
                   calculated by the Calculation Agent as the arithmetic mean of
                   the secondary market offered rates as of 10:00 A.M., New York
                   City time, on that Interest Determination Date, of three
                   leading non-bank dealers in negotiable United States dollar
                   certificates of deposit in The City of New York (which may
                   include the purchasing agent or its affiliates) selected by
                   the Calculation Agent for negotiable United States dollar
                   certificates of deposit of major United States money market
                   banks for negotiable United States certificates of

                   Hartford Life Global Funding Trust 2007-003
                                     B - 11
<PAGE>

                   deposit with a remaining maturity closest to the particular
                   Index Maturity in an amount that is representative for a
                   single transaction in that market at that time; or

                   (D) if the dealers so selected by the Calculation Agent are
                   not quoting as mentioned in clause (C), the CD Rate in effect
                   on the particular Interest Determination Date; provided that
                   if no CD Rate is then in effect, the interest rate for the
                   next Interest Reset Period will be the Initial Interest Rate.

               "H.15(519)" means the weekly statistical release designated as
               H.15(519), or any successor publication, published by the Board
               of Governors of the Federal Reserve System.

               "H.15 Daily Update" means the daily update of H.15(519),
               available through the world-wide-web site of the Board of
               Governors of the Federal Reserve System at
               http//www.federalreserve.gov/releases/H15/update, or any
               successor site or publication.

               (2) CMT RATE NOTES. If the Interest Rate Basis is the CMT Rate,
               this Note shall be deemed a "CMT Rate Note." Unless otherwise
               specified on the face hereof, "CMT Rate" means, from the Issuance
               Date to the first Interest Reset Date, the Initial Interest Rate,
               if any, and thereafter:

                   (A) if CMT Moneyline Telerate Page 7051 is specified on the
                   face hereof:

                        ix.  the percentage equal to the yield for United States
                             Treasury  securities at "constant  maturity" having
                             the Index Maturity  specified on the face hereof as
                             published in H.15(519) under the caption  "Treasury
                             Constant Maturities",  as the yield is displayed on
                             Moneyline  Telerate (or any  successor  service) on
                             page 7051 (or any  other  page as may  replace  the
                             specified   page  on  that   service)   ("Moneyline
                             Telerate Page 7051"),  for the particular  Interest
                             Determination Date; or

                        x.   if the rate  referred  to in clause (i) does not so
                             appear  on  Moneyline   Telerate  Page  7051,   the
                             percentage  equal to the  yield for  United  States
                             Treasury  securities at "constant  maturity" having
                             the   particular   Index   Maturity   and  for  the
                             particular Interest Determination Date as published
                             in H.15(519) under the caption  "Treasury  Constant
                             Maturities"; or

                   Hartford Life Global Funding Trust 2007-003
                                     B - 12
<PAGE>

                        xi.  if the rate  referred to in clause (ii) does not so
                             appear  in  H.15(519),  the rate on the  particular
                             Interest  Determination  Date for the period of the
                             particular  Index Maturity as may then be published
                             by  either  the  Federal  Reserve  System  Board of
                             Governors or the United  States  Department  of the
                             Treasury that the Calculation  Agent  determines to
                             be  comparable  to the rate which  would  otherwise
                             have been published in H.15(519); or

                        xii. if the rate  referred to in clause  (iii) is not so
                             published,  the  rate  on the  particular  Interest
                             Determination  Date  calculated by the  Calculation
                             Agent  as  a  yield  to   maturity   based  on  the
                             arithmetic mean of the secondary  market bid prices
                             at approximately  3:30 P.M., New York City time, on
                             that Interest  Determination  Date of three leading
                             primary United States government securities dealers
                             in The  City of New York  (which  may  include  the
                             purchasing  agent  or  its  affiliates)   (each,  a
                             "Reference  Dealer")  selected  by the  Calculation
                             Agent from five Reference  Dealers  selected by the
                             Calculation   Agent  and  eliminating  the  highest
                             quotation, or, in the event of equality, one of the
                             highest,  and the lowest quotation or, in the event
                             of equality,  one of the lowest,  for United States
                             Treasury securities with an original maturity equal
                             to the particular Index Maturity,  a remaining term
                             to maturity no more than one year shorter than that
                             Index  Maturity  and in a principal  amount that is
                             representative  for a  single  transaction  in  the
                             securities in that market at that time; or

                       xiii. if fewer  than five but more than two of the prices
                             referred  to  in  clause   (iv)  are   provided  as
                             requested,  the  rate  on the  particular  Interest
                             Determination  Date  calculated by the  Calculation
                             Agent  based  on the  arithmetic  mean  of the  bid
                             prices  obtained  and  neither  the highest nor the
                             lowest of the quotations shall be eliminated; or

                        xiv. if fewer than three  prices  referred  to in clause
                             (iv) are  provided  as  requested,  the rate on the
                             particular  Interest  Determination Date calculated
                             by the  Calculation  Agent as a yield  to  maturity
                             based  on the  arithmetic  mean  of  the  secondary
                             market  bid prices as of  approximately  3:30 P.M.,
                             New York City time, on that Interest  Determination
                             Date of three  Reference  Dealers  selected  by the
                             Calculation   Agent  from  five  Reference  Dealers
                             selected by the  Calculation  Agent and eliminating
                             the highest quotation or, in the event of equality,
                             one of the highest and the lowest  quotation or, in
                             the  event  of  equality,  one of the  lowest,  for
                             United States Treasury  securities with an original
                             maturity   greater   than  the   particular   Index
                             Maturity, a remaining term to

                   Hartford Life Global Funding Trust 2007-003
                                     B - 13

<PAGE>

                             maturity  closest to that Index  Maturity  and in a
                             principal  amount  that  is  representative  for  a
                             single transaction in the securities in that market
                             at that time; or

                        xv.  if  fewer  than  five  but  more  than  two  prices
                             referred  to  in  clause   (vi)  are   provided  as
                             requested,  the  rate  on the  particular  Interest
                             Determination  Date  calculated by the  Calculation
                             Agent  based  on the  arithmetic  mean  of the  bid
                             prices  obtained  and  neither  the highest nor the
                             lowest of the quotations will be eliminated; or

                       xvi.  if  fewer than three  prices  referred to in clause
                             (vi) are  provided  as  requested,  the CMT Rate in
                             effect  on the  particular  Interest  Determination
                             Date;  provided  that  if no CMT  Rate  is  then in
                             effect,  the  interest  rate for the next  Interest
                             Reset Period will be the Initial Interest Rate; or

               (B) if CMT Moneyline  Telerate Page 7052 is specified on the face
               hereof:

                         ix. the percentage  equal to the one-week or one-month,
                             as specified on the face hereof,  average yield for
                             United  States  Treasury  securities  at  "constant
                             maturity"  having the Index  Maturity  specified on
                             the face hereof as published in H.15(519)  opposite
                             the caption "Treasury Constant Maturities",  as the
                             yield is displayed  on  Moneyline  Telerate (or any
                             successor  service) (on page 7052 or any other page
                             as may replace the specified  page on that service)
                             ("Moneyline  Telerate Page 7052"),  for the week or
                             month, as applicable,  ended immediately  preceding
                             the week or  month,  as  applicable,  in which  the
                             particular Interest Determination Date falls; or

                         x.  if the rate  referred  to in clause (i) does not so
                             appear  on  Moneyline   Telerate  Page  7052,   the
                             percentage  equal to the one-week or one-month,  as
                             specified  on the face  hereof,  average  yield for
                             United  States  Treasury  securities  at  "constant
                             maturity"  having the particular Index Maturity and
                             for the week or month, as applicable, preceding the
                             particular Interest Determination Date as published
                             in  H.15(519)   opposite   the  caption   "Treasury
                             Constant Maturities"; or

                        xi.  if the rate referred to in clause (ii) does not  so
                             appear in H.15(519),  the one-week or one-month, as
                             specified  on the face  hereof,  average  yield for
                             United  States  Treasury  securities  at  "constant
                             maturity"  having the particular  Index Maturity as
                             otherwise  announced by the Federal Reserve Bank of
                             New  York  for the week or  month,  as  applicable,
                             ended  immediately

                   Hartford Life Global Funding Trust 2007-003
                                     B - 14

<PAGE>

                             preceding  the week or  month,  as  applicable,  in
                             which the particular  Interest  Determination  Date
                             falls; or

                        xii. if the rate  referred to in clause  (iii) is not so
                             published,  the  rate  on the  particular  Interest
                             Determination  Date  calculated by the  Calculation
                             Agent  as  a  yield  to   maturity   based  on  the
                             arithmetic mean of the secondary  market bid prices
                             at approximately  3:30 P.M., New York City time, on
                             that Interest Determination Date of three Reference
                             Dealers selected by the Calculation Agent from five
                             Reference Dealers selected by the Calculation Agent
                             and eliminating the highest  quotation,  or, in the
                             event  of  equality,  one of the  highest,  and the
                             lowest quotation or, in the event of equality,  one
                             of  the   lowest,   for  United   States   Treasury
                             securities  with an original  maturity equal to the
                             particular  Index  Maturity,  a  remaining  term to
                             maturity  no more than one year  shorter  than that
                             Index  Maturity  and in a principal  amount that is
                             representative  for a  single  transaction  in  the
                             securities in that market at that time; or

                       xiii. if fewer  than five but more than two of the prices
                             referred  to  in  clause   (iv)  are   provided  as
                             requested,  the  rate  on the  particular  Interest
                             Determination  Date  calculated by the  Calculation
                             Agent  based  on the  arithmetic  mean  of the  bid
                             prices  obtained  and  neither  the highest nor the
                             lowest of the quotations shall be eliminated; or

                        xiv. if fewer than three  prices  referred  to in clause
                             (iv) are  provided  as  requested,  the rate on the
                             particular  Interest  Determination Date calculated
                             by the  Calculation  Agent as a yield  to  maturity
                             based  on the  arithmetic  mean  of  the  secondary
                             market  bid prices as of  approximately  3:30 P.M.,
                             New York City time, on that Interest  Determination
                             Date of three  Reference  Dealers  selected  by the
                             Calculation   Agent  from  five  Reference  Dealers
                             selected by the  Calculation  Agent and eliminating
                             the highest quotation or, in the event of equality,
                             one of the highest and the lowest  quotation or, in
                             the  event  of  equality,  one of the  lowest,  for
                             United States Treasury  securities with an original
                             maturity   greater   than  the   particular   Index
                             Maturity,  a remaining term to maturity  closest to
                             that Index Maturity and in a principal  amount that
                             is representative  for a single  transaction in the
                             securities in that market at the time; or

                        xv.  if  fewer  than  five  but  more  than  two  prices
                             referred  to  in  clause   (vi)  are   provided  as
                             requested,  the  rate  on the  particular  Interest
                             Determination  Date  calculated by the  Calculation
                             Agent  based  on the  arithmetic  mean  of the  bid
                             prices obtained and neither

                   Hartford Life Global Funding Trust 2007-003
                                     B - 16
<PAGE>

                             the highest nor the lowest of the  quotations  will
                             be eliminated; or

                        xvi. if fewer than three prices  referred to in clause
                             (vi) are  provided  as  requested,  the CMT Rate in
                             effect  on  that   Interest   Determination   Date;
                             provided that if no CMT Rate is then in effect, the
                             interest  rate for the next  Interest  Reset Period
                             will be the Initial Interest Rate.

               If  two  United  States  Treasury  securities  with  an  original
               maturity  greater than the Index  Maturity  specified on the face
               hereof  have  remaining  terms to maturity  equally  close to the
               particular  Index  Maturity,  the quotes  for the  United  States
               Treasury  security with the shorter  original  remaining  term to
               maturity will be used.

           (3) COMMERCIAL  PAPER RATE NOTES.  If the Interest Rate Basis  is the
           Commercial Paper Rate, this Note shall be deemed a "Commercial  Paper
           Rate  Note."   Unless   otherwise   specified  on  the  face  hereof,
           "Commercial  Paper Rate" means,  from the Issuance  Date to the first
           Interest  Reset  Date,  the  Initial   Interest  Rate,  if  any,  and
           thereafter:

               (A) the Money Market Yield (as defined below) on the particular
               Interest Determination Date of the rate for commercial paper
               having the Index Maturity specified on the face hereof as
               published in H.15(519) under the caption "Commercial
               Paper--Nonfinancial"; or

               (B) if the rate referred to in clause (A) is not so published by
               3:00 P.M., New York City time, on the related Calculation Date,
               the Money Market Yield of the rate on the particular Interest
               Determination Date for commercial paper having the particular
               Index Maturity as published in H.15 Daily Update, or such other
               recognized electronic source used for the purpose of displaying
               the applicable rate, under the caption "Commercial
               Paper--Nonfinancial"; or

               (C) if the rate referred to in clause (B) is not so published by
               3:00 P.M., New York City time, on the related Calculation Date,
               the rate on the particular Interest Determination Date calculated
               by the Calculation Agent as the Money Market Yield of the
               arithmetic mean of the offered rates at approximately 11:00 A.M.,
               New York City time, on that Interest Determination Date of three
               leading dealers of United States dollar commercial paper in The
               City of New York (which may include the purchasing agent or its
               affiliates) selected by the Calculation Agent for commercial
               paper having the particular Index Maturity placed for industrial
               issuers whose bond rating is "Aa", or the equivalent, from a
               nationally recognized statistical rating organization; or

                   Hartford Life Global Funding Trust 2007-003
                                     B - 16
<PAGE>

               (D) if the dealers so selected by the Calculation Agent are not
               quoting as mentioned in clause (C), the Commercial Paper Rate in
               effect on the particular Interest Determination Date; provided
               that if no Commercial Paper Rate is then in effect, the interest
               rate for the next Interest Reset Period will be the Initial
               Interest Rate.

           "Money Market Yield" means a yield (expressed as a percentage)
           calculated in accordance with the following formula:

               Money Market Yield =                D x 360      x 100
                                                  -----------------
                                                    360 - (D x M)

           where "D" refers to the applicable per annum rate for commercial
           paper quoted on a bank discount basis and expressed as a decimal, and
           "M" refers to the actual number of days in the applicable Interest
           Reset Period.

           (4) FEDERAL FUNDS RATE NOTES. If the Interest Rate Basis is the
           Federal Funds Rate, this Note shall be deemed a "Federal Funds Rate
           Note." Unless otherwise specified on the face hereof, "Federal Funds
           Rate" means, from the Issuance Date to the first Interest Reset Date,
           the Initial Interest Rate, if any, and thereafter:

               (A) the rate on the particular Interest Determination Date for
               United States dollar federal funds as published in H.15(519)
               under the caption "Federal Funds (Effective)" and displayed on
               Moneyline Telerate (or any successor service) on page 120 (or any
               other page as may replace the specified page on that service)
               ("Moneyline Telerate Page 120"); or

               (B) if the rate referred to in clause (A) does not so appear on
               Moneyline Telerate Page 120 or is not so published by 3:00 P.M.,
               New York City time, on the related Calculation Date, the rate on
               the particular Interest Determination Date for United States
               dollar federal funds as published in H.15 Daily Update, or such
               other recognized electronic source used for the purpose of
               displaying the applicable rate, under the caption "Federal Funds
               (Effective)"; or

               (C) if the rate referred to in clause (B) is not so published by
               3:00 P.M., New York City time, on the related Calculation Date,
               the rate on the particular Interest Determination Date calculated
               by the Calculation Agent as the arithmetic mean of the rates for
               the last transaction in overnight United States dollar federal
               funds arranged by three leading brokers of United States dollar
               federal funds transactions in The City of New York (which may
               include the purchasing agent or its affiliates) selected by the
               Calculation Agent prior to 9:00 A.M., New York City time, on that
               Interest Determination Date; or

               (D) if the brokers so selected by the Calculation Agent are not
               quoting as mentioned in clause (C), the Federal Funds Rate in
               effect on the particular Interest Determination Date; provided
               that if no Federal Funds

                   Hartford Life Global Funding Trust 2007-003
                                     B - 17
<PAGE>

               Rate is then in effect, the interest rate for the next Interest
               Reset Period will be the Initial Interest Rate.

           (5) LIBOR NOTES. If the Interest Rate Basis is LIBOR, this Note shall
           be deemed a "LIBOR Note." Unless otherwise specified on the face
           hereof, "LIBOR" means, from the Issuance Date to the first Interest
           Reset Date, the Initial Interest Rate, if any, and thereafter:

               (A) if "LIBOR Moneyline Telerate" is specified on the face hereof
               or if neither "LIBOR Reuters" nor "LIBOR Moneyline Telerate" is
               specified on the face hereof as the method for calculating LIBOR,
               the rate for deposits in the LIBOR Currency (as defined below)
               having the Index Maturity specified on the face hereof,
               commencing on the related Interest Reset Date, that appears on
               the LIBOR Page (as defined below) as of 11:00 A.M., London time,
               on the particular Interest Determination Date; or

               (B) if "LIBOR Reuters" is specified on the face hereof, the
               arithmetic mean of the offered rates, calculated by the
               Calculation Agent, or the offered rate, if the LIBOR Page by its
               terms provides only for a single rate, for deposits in the LIBOR
               Currency having the particular Index Maturity, commencing on the
               related Interest Reset Date, that appear or appears, as the case
               may be, on the LIBOR Page as of 11:00 A.M., London time, on the
               particular Interest Determination Date; or

               (C) if fewer than two offered rates appear, or no rate appears,
               as the case may be, on the particular Interest Determination Date
               on the LIBOR Page as specified in clause (A) or (B), as
               applicable, the rate calculated by the Calculation Agent as the
               arithmetic mean of at least two offered quotations obtained by
               the Calculation Agent after requesting the principal London
               offices of each of four major reference banks (which may include
               affiliates of the purchasing agent) in the London interbank
               market to provide the Calculation Agent with its offered
               quotation for deposits in the LIBOR Currency for the period of
               the particular Index Maturity, commencing on the related Interest
               Reset Date, to prime banks in the London interbank market at
               approximately 11:00 A.M., London time, on that Interest
               Determination Date and in a principal amount that is
               representative for a single transaction in the LIBOR Currency in
               that market at that time; or

               (D) if fewer than two offered quotations referred to in clause
               (C) are provided as requested, the rate calculated by the
               Calculation Agent as the arithmetic mean of the rates quoted at
               approximately 11:00 A.M., in the applicable Principal Financial
               Center, on the particular Interest Determination Date by three
               major banks (which may include affiliates of the purchasing
               agent) in that Principal Financial Center selected by the
               Calculation Agent for loans in the LIBOR Currency to leading
               European

                   Hartford Life Global Funding Trust 2007-003
                                     B - 18
<PAGE>

               banks, having the particular Index Maturity and in a principal
               amount that is representative for a single transaction in the
               LIBOR Currency in that market at that time; or

               (E) if the banks so selected by the Calculation Agent are not
               quoting as mentioned in clause (D), LIBOR in effect on the
               particular Interest Determination Date; provided that if no LIBOR
               is then in effect, the interest rate for the next Interest Reset
               Period will be the Initial Interest Rate.

           "LIBOR Currency" means the currency specified on the face hereof as
           to which LIBOR shall be calculated or, if no currency is specified on
           the face hereof, United States dollars.

           "LIBOR Page" means either: (1) if "LIBOR Reuters" is specified on the
           face hereof, the display on the Reuter Monitor Money Rates Service
           (or any successor service) on the page specified on the face hereof
           (or any other page as may replace that page on that service) for the
           purpose of displaying the London interbank rates of major banks for
           the LIBOR Currency; or (2) if "LIBOR Moneyline Telerate" is specified
           on the face hereof or neither "LIBOR Reuters" nor "LIBOR Moneyline
           Telerate" is specified on the face hereof as the method for
           calculating LIBOR, the display on Moneyline Telerate (or any
           successor service) on the page specified on the face hereof (or any
           other page as may replace such page on such service), or if no such
           page is specified, on the Moneyline Telerate (or any successor
           service) page generally used for the purpose of displaying the London
           interbank rates of major banks for the LIBOR Currency.

           (6) PRIME RATE NOTES. If the Interest Rate Basis is the Prime Rate,
           this Note shall be deemed a "Prime Rate Note." Unless otherwise
           specified on the face hereof, "Prime Rate" means, from the Issuance
           Date to the first Interest Reset Date, the Initial Interest Rate, if
           any, and thereafter:

               (A) the rate on the particular Interest Determination Date as
               published in H.15(519) under the caption "Bank Prime Loan"; or

               (B) if the rate referred to in clause (A) is not so published by
               3:00 P.M., New York City time, on the related Calculation Date,
               the rate on the particular Interest Determination Date as
               published in H.15 Daily Update, or such other recognized
               electronic source used for the purpose of displaying the
               applicable rate, under the caption "Bank Prime Loan", or

               (C) if the rate referred to in clause (B) is not so published by
               3:00 P.M., New York City time, on the related Calculation Date,
               the rate on the particular Interest Determination Date calculated
               by the Calculation Agent as the arithmetic mean of the rates of
               interest publicly announced by each bank that appears on the
               Reuters Screen US PRIME 1 Page (as defined

                   Hartford Life Global Funding Trust 2007-003
                                     B - 19
<PAGE>

               below) as the applicable bank's prime rate or base lending rate
               as of 11:00 A.M., New York City time, on that Interest
               Determination Date; or

               (D) if fewer than four rates referred to in clause (C) are so
               published by 3:00 p.m., New York City time, on the related
               Calculation Date, the rate calculated by the Calculation Agent on
               the particular Interest Determination Date as the arithmetic mean
               of the prime rates or base lending rates quoted on the basis of
               the actual number of days in the year divided by a 360-day year
               as of the close of business on that Interest Determination Date
               by three major banks (which may include affiliates of the
               purchasing agent) in The City of New York selected by the
               Calculation Agent; or

               (E) if the banks so selected by the Calculation Agent are not
               quoting as mentioned in clause (D), the Prime Rate in effect on
               the particular Interest Determination Date; provided that if no
               Prime Rate is then in effect, the interest rate for the next
               Interest Reset Period will be the Initial Interest Rate.

           "Reuters Screen US PRIME 1 Page" means the display on the Reuter
           Monitor Money Rates Service (or any successor service) on the "US
           PRIME 1" page (or any other page as may replace that page on that
           service) for the purpose of displaying prime rates or base lending
           rates of major United States banks.

           (7) TREASURY RATE NOTES. If the Interest Rate Basis is the Treasury
           Rate, this Note shall be deemed a "Treasury Rate Note." Unless
           otherwise specified on the face hereof, "Treasury Rate" means, from
           the Issuance Date to the first Interest Reset Date, the Initial
           Interest Rate, if any, and thereafter:

               (A) the rate from the auction held on the Interest Determination
               Date (the "Auction") of direct obligations of the United States
               ("Treasury Bills") having the Index Maturity specified on the
               face hereof under the caption "Investment Rate" on the display on
               Moneyline Telerate (or any successor service) on page 56 (or any
               other page as may replace that page on that service) ("Moneyline
               Telerate Page 56") or page 57 (or any other page as may replace
               that page on that service) ("Moneyline Telerate Page 57"); or

               (B) if the rate referred to in clause (A) is not so published by
               3:00 P.M., New York City time, on the related Calculation Date,
               the Bond Equivalent Yield (as defined below) of the rate for the
               applicable Treasury Bills as published in H.15 Daily Update, or
               another recognized electronic source used for the purpose of
               displaying the applicable rate, under the caption "U.S.
               Government Securities/Treasury Bills/Auction High"; or

               (C) if the rate referred to in clause (B) is not so published by
               3:00 P.M., New York City time, on the related Calculation Date,
               the Bond

                   Hartford Life Global Funding Trust 2007-003
                                     B - 20
<PAGE>

               Equivalent Yield of the auction rate of the applicable Treasury
               Bills as announced by the United States Department of the
               Treasury; or

               (D) if the rate referred to in clause (C) is not so announced by
               the United States Department of the Treasury, or if the Auction
               is not held, the Bond Equivalent Yield of the rate on the
               particular Interest Determination Date of the applicable Treasury
               Bills as published in H.15(519) under the caption "U.S.
               Government Securities/Treasury Bills/Secondary Market"; or

               (E) if the rate referred to in clause (D) is not so published by
               3:00 P.M., New York City time, on the related Calculation Date,
               the rate on the particular Interest Determination Date of the
               applicable Treasury Bills as published in H.15 Daily Update, or
               another recognized electronic source used for the purpose of
               displaying the applicable rate, under the caption "U.S.
               Government Securities/Treasury Bills/Secondary Market"; or

               (F) if the rate referred to in clause (E) is not so published by
               3:00 P.M., New York City time, on the related Calculation Date,
               the rate on the particular Interest Determination Date calculated
               by the Calculation Agent as the Bond Equivalent Yield of the
               arithmetic mean of the secondary market bid rates, as of
               approximately 3:30 P.M., New York City time, on that Interest
               Determination Date, of three primary United States government
               securities dealers (which may include the purchasing agent or its
               affiliates) selected by the Calculation Agent, for the issue of
               Treasury Bills with a remaining maturity closest to the Index
               Maturity specified on the face hereof; or

               (G) if the dealers so selected by the Calculation Agent are not
               quoting as mentioned in clause (F), the Treasury Rate in effect
               on the particular Interest Determination Date; provided that if
               no Treasury Rate is then in effect, the interest rate for the
               next Interest Reset Period will be the Initial Interest Rate.

           "Bond Equivalent Yield" means a yield (expressed as a percentage)
           calculated in accordance with the following formula:

               Bond Equivalent Yield =              D x N       x 100
                                              -----------------
                                                360 - (D x M)

           where "D" refers to the  applicable per annum rate for Treasury Bills
           quoted on a bank  discount  basis and  expressed  as a  decimal,  "N"
           refers  to 365 or 366,  as the case  may be,  and "M"  refers  to the
           actual number of days in the applicable Interest Reset Period.

      (c)  DISCOUNT NOTES.  If  this  Note  is specified on the face hereof as a
           "Discount Note":

                   Hartford Life Global Funding Trust 2007-003
                                     B - 21

<PAGE>

               (i) PRINCIPAL  AND INTEREST.  This Note will bear interest in the
               same manner as set forth in Section  3(a) above,  and payments of
               principal  and  interest  shall be made as set  forth on the face
               hereof. Discount Notes may not bear any interest currently or may
               bear interest at a rate that is below market rates at the time of
               issuance.  The  difference  between the Issue Price of a Discount
               Note and par is referred to as the "Discount".

               (ii) REDEMPTION; REPAYMENT; ACCELERATION. In the event a Discount
               Note is redeemed,  repaid or  accelerated,  the amount payable to
               the Holder of such Discount Note will be equal to the sum of: (A)
               the Issue Price  (increased by any accruals of Discount)  and, in
               the event of any redemption of such Discount Note, if applicable,
               multiplied by the Initial  Redemption  Percentage (as adjusted by
               the Annual Redemption Percentage Reduction,  if applicable);  and
               (B) any  unpaid  interest  accrued on such  Discount  Note to the
               Maturity  Date  ("Amortized   Face  Amount").   Unless  otherwise
               specified on the face hereof,  for  purposes of  determining  the
               amount of  Discount  that has  accrued  as of any date on which a
               redemption,  repayment or  acceleration  of maturity occurs for a
               Discount  Note, a Discount will be accrued using a constant yield
               method.  The  constant  yield will be  calculated  using a 30-day
               month, 360-day year convention, a compounding period that, except
               for the Initial  Period (as defined  below),  corresponds  to the
               shortest period between Interest Payment Dates for the applicable
               Discount  Note  (with  ratable   accruals  within  a  compounding
               period),   a  coupon  rate  equal  to  the  initial  coupon  rate
               applicable to the applicable Discount Note and an assumption that
               the maturity of such  Discount Note will not be  accelerated.  If
               the period from the date of issue to the first  Interest  Payment
               Date for a Discount Note (the  "Initial  Period") is shorter than
               the  compounding  period for such Discount Note, a  proportionate
               amount  of the yield for an  entire  compounding  period  will be
               accrued.  If the Initial  Period is longer  than the  compounding
               period,   then  the  period  will  be  divided   into  a  regular
               compounding period and a short period with the short period being
               treated as provided above.

SECTION 4.  REDEMPTION.  If no redemption right is set forth on the face hereof,
this Note may not be redeemed prior to the Stated  Maturity Date,  except as set
forth in the Indenture.  If a redemption  right is set forth on the face of this
Note, the Trust shall redeem this Note on the Interest  Payment Date on or after
the  Initial  Redemption  Date set forth on the face hereof on which the Funding
Agreement  is to be  redeemed  in whole or in part by  Hartford  Life  Insurance
Company  ("HARTFORD LIFE") (each, a "REDEMPTION  DATE"), in which case this Note
must be redeemed on such  Redemption  Date in whole or in part,  as  applicable,
prior to the  Stated  Maturity  Date,  in  increments  equal  to the  Authorized
Denominations  (provided that any remaining  Principal Amount hereof shall be at
least equal to the Authorized  Denomination) at the applicable  Redemption Price
(as defined below),  together with unpaid interest,  if any, accrued thereon to,
but excluding,  the applicable Redemption Date. "REDEMPTION PRICE" shall mean an
amount  equal to the Initial  Redemption  Percentage  (as adjusted by the Annual
Redemption  Percentage  Reduction,  if  applicable)  multiplied  by  the  unpaid
Principal  Amount of this Note to be redeemed (or in the case of Discount Notes,
multiplied as set forth in Section 3(c)(ii) above).  The unpaid Principal Amount
of  this  Note  to be  redeemed  shall  be  determined  by  multiplying  (1) the
Outstanding  Principal  Amount  of  this  Note by (2) the  quotient  derived  by
dividing (A) the  outstanding  principal  amount of the Funding  Agreement to be
redeemed by Hartford Life by (B) the outstanding principal amount of the Funding
Agreement.

                   Hartford Life Global Funding Trust 2007-003
                                     B - 22
<PAGE>

The Initial Redemption Percentage, if any, applicable to this Note shall decline
at each  anniversary  of the Initial  Redemption  Date by an amount equal to the
applicable Annual Redemption Percentage Reduction,  if any, until the Redemption
Price is equal to 100% of the unpaid amount thereof to be redeemed.  Notice must
be given not more than seventy-five (75) nor less than thirty (30) calendar days
prior to the proposed  Redemption  Date. In the event of redemption of this Note
in part only, a new Note for the  unredeemed  portion  hereof shall be issued in
the name of the Holder hereof upon the surrender hereof.

SECTION 5. SINKING  FUNDS AND  AMORTIZING  NOTES.  Unless  specified on the face
hereof,  this Note will not be subject  to, or  entitled  to the benefit of, any
sinking  fund.  If this Note is specified  on the face hereof as an  "Amortizing
Note",  this Note will bear  interest in the same manner as set forth in Section
3(a) above,  and payments of  principal,  premium,  if any, and interest will be
made as set  forth on the face  hereof  and/or in  accordance  with  Schedule  I
attached hereto. The Trust will make payments combining  principal,  premium (if
any) and interest,  if applicable,  on the dates and in the amounts set forth in
the table  appearing in SCHEDULE I, attached to this Note or in accordance  with
the formula  specified on the face hereof.  Payments made hereon will be applied
first to interest due and payable hereon and then to the reduction of the unpaid
principal amount hereof.

SECTION 6.  REPAYMENT.  If no  repayment  right is set forth on the face hereof,
this Note may not be repaid at the  option  of the  Holder  hereof  prior to the
Stated  Maturity Date. If a repayment right is granted on the face of this Note,
this  Note may be  subject  to  repayment  at the  option  of the  Holder on any
Interest  Payment  Date on and  after the date,  if any,  indicated  on the face
hereof (each,  a "Repayment  Date").  On any Repayment  Date,  unless  otherwise
specified on the face  hereof,  this Note shall be repayable in whole or in part
in increments equal to the Authorized Denominations (provided that any remaining
Principal Amount hereof shall be at least equal to the Authorized  Denomination)
at  the  option  of the  Holder  hereof  at the  Repayment  Price  equal  to the
percentage  of the Principal  Amount to be repaid  specified on the face hereof,
together with interest  thereon  payable to the Repayment Date. For this Note to
be repaid in whole or in part at the option of the Holder hereof,  the Indenture
Trustee (or the Paying Agent on behalf of the  Indenture  Trustee) must receive,
at its  Corporate  Trust  Office,  or at such other place or places of which the
Trust  shall from time to time  notify  the  Holder of this Note,  not more than
seventy-five  (75) nor less than  thirty  (30) days prior to a  Repayment  Date,
shown on the face of this Note, (I) this Note with the form entitled  "Option to
Elect  Repayment",  attached  hereto,  duly  completed  by the  Holder or (II) a
telegram,  telex, facsimile transmission or a letter from a member of a national
securities exchange or the National Association of Securities Dealers, Inc. or a
commercial  bank or a trust company in the United States  setting forth the name
of the holder of this Note, the principal amount hereof,  the certificate number
of this Note or a  description  of this Note's  tenor and terms,  the  principal
amount hereof to be repaid,  a statement  that the option to elect  repayment is
being exercised  thereby and a guarantee that this Note,  together with the form
entitled  "Option to Elect  Repayment" duly  completed,  will be received by the
Indenture  Trustee (or the Paying Agent on behalf of the Indenture  Trustee) not
later than the fifth (5th) Business Day after the date of such telegram,  telex,
facsimile transmission or letter; PROVIDED, that such telegram, telex, facsimile
transmission  or  letter  shall  only be  effective  if this  Note and form duly
completed are received by the  Indenture  Trustee (or the Paying Agent on behalf
of the Indenture  Trustee) by such fifth (5th)  Business  Day.  Exercise of such
repayment  option by the Holder  hereof  shall be  irrevocable.  In the event of
repayment of this Note in part only, a new

                   Hartford Life Global Funding Trust 2007-003
                                     B - 23
<PAGE>

Note or Notes for the amount of the unpaid portion hereof shall be issued in the
name of the Holder hereof upon the cancellation hereof.

SECTION  7.  MODIFICATIONS  AND  WAIVERS.   The  Indenture  contains  provisions
permitting the Trust and the Indenture  Trustee (1) at any time and from time to
time without notice to, or the consent of, the Holders of any Notes issued under
the  Indenture  to enter into one or more  supplemental  indentures  for certain
enumerated  purposes  and (2) with the  consent of the  Holders of a majority in
aggregate  principal amount of the Outstanding Notes affected thereby,  to enter
into  one or  more  supplemental  indentures  for  the  purpose  of  adding  any
provisions  to, or changing in any manner or  eliminating  any of the provisions
of, the  Indenture  or of modifying in any manner the rights of Holders of Notes
under  the  Indenture;  PROVIDED,  that,  with  respect  to  certain  enumerated
provisions,  no such  supplemental  indenture  shall be entered into without the
consent of the Holder of each Note affected thereby.  Any such consent or waiver
by the Holder of this Note shall be conclusive  and binding upon such Holder and
upon  all  future  Holders  of  this  Note  and  of any  Note  issued  upon  the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not  notation of such  consent or waiver is made upon this Note or such other
Notes.

SECTION 8. OBLIGATIONS  UNCONDITIONAL.  No reference herein to the Indenture and
no provisions  of this Note or of the  Indenture  shall impair the right of each
Holder of any Note, which is absolute and  unconditional,  to receive payment of
the principal of, and any interest on, and premium, if any, on, such Note on the
respective Stated Maturity Date or redemption date thereof and to institute suit
for the  enforcement of any such payment,  and such rights shall not be impaired
without the consent of such Holder.

SECTION 9. EVENTS OF DEFAULT.  If an Event of Default  with respect to the Notes
shall occur and be continuing,  the principal of, and all other amounts  payable
on,  the  Notes  may be  declared  due  and  payable,  or  may be  automatically
accelerated,  as the case may be, in the manner and with the effect  provided in
the  Indenture.  In the event that this Note is a Discount  Note,  the amount of
principal of this Note that becomes due and payable upon such acceleration shall
be equal to the amount calculated as set forth in Section 3(c) hereof.

SECTION 10. WITHHOLDING; TAX EVENT. All amounts due in respect of this Note will
be made free and clear of any  applicable  withholding  or  deduction  for or on
account of any present or future taxes,  duties,  levies,  assessments  or other
governmental charges of whatever nature imposed or levied by or on behalf of any
governmental authority, unless such withholding or deduction is required by law.
Unless  otherwise  specified  on the face  hereof,  the  Trust  will not pay any
additional amounts to the Holder of this Note in respect of any such withholding
or deduction,  any such  withholding or deduction will not give rise to an Event
of Default or any  independent  right or  obligation to redeem this Note and the
Holder will be deemed for all purposes to have  received cash in an amount equal
to the portion of such  withholding  or deduction that is  attributable  to such
Holder's interest in this Note as equitably determined by the Trust.

If  Hartford  Life will be required  to pay  additional  amounts to the Trust to
reflect any required  withholding or deduction  under the Funding  Agreement and
Hartford Life is required,  or based on an opinion of independent  legal counsel
selected by Hartford Life more than an insubstantial

                   Hartford Life Global Funding Trust 2007-003
                                     B - 24

<PAGE>

risk exists that  Hartford  Life will be required to pay  additional  amounts in
respect of such  withholding or deduction,  Hartford Life will have the right to
redeem the  Funding  Agreement  and,  if  Hartford  Life elects to so redeem the
Funding  Agreement,  the Trust will redeem  this Note,  subject to the terms and
conditions of Section 2.04 of the Indenture.

         If (1) a Tax Event (defined below) as to the relevant Funding Agreement
occurs and (2) Hartford Life elects to redeem the Funding  Agreement in whole or
in part, the Trust will redeem this Note, subject to the terms and conditions of
Section 2.04 of the Indenture, at the Tax Event Redemption Price (defined below)
together with unpaid interest accrued thereon to the applicable redemption date.
"TAX  EVENT"  means  that  Hartford  Life  shall  have  received  an  opinion of
independent  legal  counsel  stating  in  effect  that  as a  result  of (A) any
amendment to, or change  (including  any announced  prospective  change) in, the
laws (or any  regulations  thereunder)  of the  United  States or any  political
subdivision or taxing  authority  thereof or therein or (B) any amendment to, or
change in, an  interpretation  or application of any such laws or regulations by
any  governmental  authority in the United States,  which amendment or change is
enacted, promulgated,  issued or announced on or after the effective date of the
relevant Funding  Agreement,  there is more than an insubstantial  risk that (I)
the Trust is, or will be within ninety (90) days of the date thereof, subject to
U.S.  federal  income tax with  respect to  interest  accrued or received on the
relevant  Funding  Agreement or (II) the Trust is, or will be within ninety (90)
days of the date  thereof,  subject to more than a de  minimis  amount of taxes,
duties or other  governmental  charges.  "TAX EVENT  REDEMPTION  PRICE" means an
amount equal to the unpaid principal  amount of this Note to be redeemed,  which
shall be determined by multiplying (1) the Outstanding  Principal Amount of this
Note by (2) the  quotient  derived by  dividing  (A) the  outstanding  principal
amount to be  redeemed  by Hartford  Life of the  Funding  Agreement  by (B) the
outstanding principal amount of the Funding Agreement.

SECTION 11. LISTING.  Unless otherwise  specified on the face hereof,  this Note
will not be listed on any securities exchange.

SECTION  12.  COLLATERAL.  The  Collateral  for this Note  includes  the Funding
Agreement specified on the face \hereof.

SECTION 13. NO RECOURSE  AGAINST CERTAIN  PERSONS.  No recourse shall be had for
the payment of any principal, interest or any other sums at any time owing under
the terms of this Note, or for any claim based  hereon,  or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental
thereto, against the Nonrecourse Parties, whether by virtue of any constitution,
statute or rule of law, or by the  enforcement  of any  assessment or penalty or
otherwise,  all such personal  liability being, by the acceptance  hereof and as
part of the consideration for issue hereof, expressly waived and released.

SECTION 14.   MISCELLANEOUS.

         (a) This Note is issuable only as a registered  Note without coupons in
denominations  of $1,000 and any integral  multiple of $1,000 in excess  thereof
unless otherwise specified on the face of this Note.

                   Hartford Life Global Funding Trust 2007-003
                                     B - 25
<PAGE>

         (b) Prior to due presentment for registration of transfer of this Note,
the Trust, the Indenture  Trustee,  the Registrar,  the Paying Agent, any Agent,
and any other agent of the Trust or the  Indenture  Trustee may treat the Person
in whose name this Note is  registered  as the owner  hereof for the  purpose of
receiving payment as herein provided and for all other purposes,  whether or not
this Note shall be overdue,  and none of the Trust, the Indenture  Trustee,  the
Registrar,  the Paying Agent,  any Agent, or any other agent of the Trust or the
Indenture Trustee shall be affected by notice to the contrary.

         (c) The  Notes are being  issued by means of a  book-entry-only  system
with no physical  distribution  of certificates to be made except as provided in
the Indenture.  The book-entry system maintained by DTC will evidence  ownership
of the Notes, with transfers of ownership effected on the records of DTC and its
participants  pursuant  to  rules  and  procedures  established  by DTC  and its
participants.  The Trust and the Indenture Trustee will recognize Cede & Co., as
nominee of DTC, as the registered owner of the Notes, as the Holder of the Notes
for all purposes, including payment of principal, premium (if any) and interest,
notices and  voting.  Transfer of  principal,  premium (if any) and  interest to
participants  of  DTC  will  be the  responsibility  of  DTC,  and  transfer  of
principal,  premium (if any) and interest to beneficial  holders of the Notes by
participants of DTC will be the  responsibility  of such  participants and other
nominees of such  beneficial  holders.  So long as the  book-entry  system is in
effect,  the  selection of any Notes to be redeemed or repaid will be determined
by DTC pursuant to rules and procedures established by DTC and its participants.
Neither the Trust nor the Indenture  Trustee will be  responsible  or liable for
such  transfers or payments or for  maintaining,  supervising  or reviewing  the
records  maintained  by DTC, its  participants  or persons  acting  through such
participants.

         (d) This Note or portion  hereof may not be  exchanged  for  Definitive
Notes, except in the limited  circumstances  provided for in the Indenture.  The
transfer or exchange  of  Definitive  Notes shall be subject to the terms of the
Indenture.  No service charge will be made for any  registration  of transfer or
exchange, but the Trust may require payment of a sum sufficient to cover any tax
or other governmental charge payable in connection therewith.

SECTION 15.  GOVERNING  LAW.  THIS NOTE SHALL BE GOVERNED  BY, AND  CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                   Hartford Life Global Funding Trust 2007-003
                                     B - 26

<PAGE>

                            OPTION TO ELECT REPAYMENT

The undersigned hereby irrevocably request(s) and instruct(s) the Trust to repay
this Note (or portion hereof  specified  below) pursuant to its terms at a price
equal to the  Principal  Amount  hereof  together with interest to the repayment
date, to the undersigned, at:

________________________________________________________________________

________________________________________________________________________(Please
print or typewrite name and address of the undersigned).

If less than the entire Principal  Amount of this Note is to be repaid,  specify
the portion  hereof  (which shall be in  increments  of $1,000) which the Holder
elects to have repaid and specify the denomination or denominations (which shall
be $______ or an integral  multiple of $1,000 in excess of $______) of the Notes
to be issued to the Holder for the portion of this Note not being repaid (in the
absence of any such specification,  one such Note will be issued for the portion
not being repaid).

$ ___________________________
                                         NOTICE: The signature on this Option to
Date:  ______________________            Elect Repayment must correspond with
                                         the name as written upon the face of
                                         this Note in every particular, without
                                         alteration or enlargement or any change
                                         whatever.

Principal Amount to be repaid, if        Fill in for registration of Notes if to
amount to be repaid is less than the     be issued otherwise than to the
(Principal Amount of this Note Principal registered Holder:
Amount remaining must be an authorized
denomination)
                                         Name:  ________________________________

$___________________________             Address: ______________________________

                                                  ______________________________
                                                  (Please print name and address
                                                  including zip code)
SOCIAL SECURITY OR OTHER TAXPAYER ID NUMBER:  _________________________________

                   Hartford Life Global Funding Trust 2007-003
                                     B - 27

<PAGE>

                                   SCHEDULE I

                          AMORTIZATION TABLE OR FORMULA

                                 Not applicable.

                   Hartford Life Global Funding Trust 2007-003
                                     SI - 1

<PAGE>

                                   SCHEDULE II

SPREAD:

         The spread for the Notes for the indicated periods is as follows:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------- ------------
                                                  PERIOD                                        SPREAD
------------------------------------------------------------------------------------------- ------------
<S>                                                                                         <C>
From and including the Issuance Date to but not including March 15, 2009                    + 0.02%
------------------------------------------------------------------------------------------- ------------
From and including March 15, 2009 to but not including March 15, 2010                       + 0.03%
------------------------------------------------------------------------------------------- ------------
From and including March 15, 2010 to but not including the Final Stated Maturity Date       + 0.04%
------------------------------------------------------------------------------------------- ------------
</TABLE>

                   Hartford Life Global Funding Trust 2007-003
                                     SII - 1WARRANT AGREEMENT

                                     BETWEEN

                               VAUGHAN FOODS, INC.

                                       AND

                            ------------------------

                           DATED AS OF _________, 2007

<PAGE>

                                WARRANT AGREEMENT

         This Agreement, dated as of ________, 2007, is between Vaughan Foods,
Inc., an Oklahoma corporation (the "COMPANY") and Continental Stock Transfer &
Trust, a             corporation (the "WARRANT AGENT").

         The Company, at or about the time that it is entering into this
Agreement, proposes to issue and sell to public investors up to 5,750,000 Units
(together with the additional units issuable as provided herein, the "UNITS").
Each Unit consists of one share of common stock, $0.001 par value, of the
Company, one redeemable Class A Warrant and one redeemable Class B Warrants. The
Class A Warrants and the Class B Warrants are herein collectively referred to as
the "WARRANTS." Each Warrant is exercisable to purchase one share of Common
Stock upon the terms and conditions and subject to adjustment in certain
circumstances, all as set forth in this Agreement.

         The Company proposes to issue to the Representative of the Underwriters
in the public offering of Units referred to above warrants to purchase up to
500,000 additional Units.

         The Company wishes to retain the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing so to act, in connection with the
issuance, transfer, exchange and replacement of the certificates evidencing the
Warrants to be issued under this Agreement (the "WARRANT CERTIFICATES") and the
exercise of the Warrants;

         The Company and the Warrant Agent wish to enter into this Agreement to
set forth the terms and conditions of the Warrants and the rights of the holders
thereof ("WARRANTHOLDERS") and to set forth the respective rights and
obligations of the Company and the Warrant Agent. Each Warrantholder is an
intended beneficiary of this Agreement with respect to the rights of
Warrantholders herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereto agree as follows:

         1. APPOINTMENT OF WARRANT AGENT. The Company appoints the Warrant Agent
to act as agent for the Company in accordance with the instructions in this
Agreement and the Warrant Agent accepts such appointment.

         2. DATE, DENOMINATION AND EXECUTION OF WARRANT CERTIFICATES.

               (a) The Warrant Certificates (and the Form of Election to
Purchase and the Form of Assignment to be printed on the reverse thereof) shall
be in registered form only and shall be substantially of the tenor and purport
recited in EXHIBIT A hereto with respect to the Class A Warrants and EXHIBIT B
hereto with respect to the Class B Warrants, and may have such letters, numbers
or other marks of identification or designation and such legends, summaries or
endorsements printed, lithographed or engraved thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any law, or with any rule or regulation
made pursuant thereto, or with any rule or regulation of any stock exchange on
which the Common Stock or the Warrants may be listed or any automated quotation
system, or to conform to usage. Each Class A Warrant Certificate shall

<PAGE>

entitle the registered holder thereof, subject to the provisions of this
Agreement and of the Warrant Certificate, to purchase, on or after _________,
2006 and on or before the close of business on _________, 2012 (the "EXPIRATION
DATE"), one fully paid and non-assessable share of Common Stock for each Warrant
evidenced by such Warrant Certificate for $_____. Each Class B Warrant
Certificate shall entitle the registered holder thereof, subject to the
provisions of this Agreement and of the Warrant Certificate, to purchase, on or
after _________, 2007 and on or before the close of business on the Expiration
Date, one fully paid and non-assessable share of Common Stock for each Warrant
evidenced by such Warrant Certificate for $______. The exercise price of the
Warrants (the "EXERCISE PRICE") is subject to adjustments as provided in Section
6 hereof. Each Warrant Certificate issued as a part of a Unit offered to the
public as described in the recitals, above, shall be dated _______, 2007; each
other Warrant Certificate shall be dated the date on which the Warrant Agent
receives valid issuance instructions from the Company or a transferring holder
of a Warrant Certificate or, if such instructions specify another date, such
other date.

               (b) For purposes of this Agreement, the term "CLOSE OF BUSINESS"
on any given date shall mean 5:00 p.m., Pacific time, on such date; provided,
however, that if such date is not a business day, it shall mean 5:00 p.m.,
Pacific time, on the next succeeding business day. For purposes of this
Agreement, the term "BUSINESS DAY" shall mean any day other than a Saturday,
Sunday, or a day on which banking institutions in New York, New York or in the
State in which the Warrant Agent maintains the principal office in which it
conducts business related to the Warrants are authorized or obligated by law to
be closed.

               (c) Each Warrant Certificate shall be executed on behalf of the
Company by the Chairman of the Board, its Chief Executive Officer, its President
or a Vice President, either manually or by facsimile signature printed thereon,
and have affixed thereto the Company's seal or a facsimile thereof which shall
be attested by the Secretary or an Assistant Secretary of the Company, either
manually or by facsimile signature. Each Warrant Certificate shall be manually
countersigned by the Warrant Agent and shall not be valid for any purpose unless
so countersigned. In case any officer of the Company who shall have signed any
Warrant Certificate shall cease to be such officer of the Company before
countersignature by the Warrant Agent and issue and delivery thereof by the
Company, such Warrant Certificate, nevertheless, may be countersigned by the
Warrant Agent, issued and delivered with the same force and effect as though the
person who signed such Warrant Certificate had not ceased to be such officer of
the Company.

         3. SUBSEQUENT ISSUE OF WARRANT CERTIFICATES. Subsequent to their
original issuance, no Warrant Certificates shall be reissued except (i) Warrant
Certificates issued upon transfer thereof in accordance with Section 4 hereof,
(ii) Warrant Certificates issued upon any combination, split-up or exchange of
Warrant Certificates pursuant to Section 4 hereof, (iii) Warrant Certificates
issued in replacement of mutilated, destroyed, lost or stolen Warrant
Certificates pursuant to Section 5 hereof, (iv) Warrant Certificates issued upon
the partial exercise of Warrant Certificates pursuant to Section 7 hereof, and
(v) Warrant Certificates issued to reflect any adjustment or change in the
Exercise Price or the number or kind of shares purchasable thereunder pursuant
to Section 22 hereof. The Warrant Agent is hereby irrevocably authorized to
countersign and deliver, in accordance with the provisions of said Sections 4,
5, 7 and 22, the new Warrant Certificates required for purposes thereof, and the
Company, whenever

                                       2
<PAGE>

required by the Warrant Agent, will supply the Warrant Agent with Warrant
Certificates duly executed on behalf of the Company for such purposes.

         4. TRANSFERS AND EXCHANGES OF WARRANT CERTIFICATES.

               (a) The Warrant Agent will keep or cause to be kept books for
registration of ownership and transfer of the Warrant Certificates issued
hereunder. Such registers shall show the names and addresses of the respective
holders of the Warrant Certificates and the class and number of Warrants
evidenced by each such Warrant Certificate.

               (b) The Warrant Agent shall, from time to time, register the
transfer of any outstanding Warrants upon the books to be maintained by the
Warrant Agent for that purpose, upon surrender of the Warrant Certificate
evidencing such Warrants, with the Form of Assignment duly filled in and
executed with such signature guaranteed by a banking institution or NASD member
and such supporting documentation as the Warrant Agent or the Company may
reasonably require, to the Warrant Agent at its stock transfer office in
New York, New York at any time on or before the Expiration Date of such Warrant,
and upon payment to the Warrant Agent for the account of the Company of an
amount equal to any applicable transfer tax. Payment of the amount of such tax
may be made in cash, or by certified or official bank check, payable in lawful
money of the United States of America to the order of the Company.

               (c) Upon receipt of a Warrant Certificate, with the Form of
Assignment duly filled in and executed, accompanied by payment of an amount
equal to any applicable transfer tax, the Warrant Agent shall promptly cancel
the surrendered Warrant Certificate and countersign and deliver to the
transferee a new Warrant Certificate for the number of full Warrants of the same
class transferred to such transferee; provided, however, that in case the
registered holder of any Warrant Certificate shall elect to transfer fewer than
all of the Warrants evidenced by such Warrant Certificate, the Warrant Agent in
addition shall promptly countersign and deliver to such registered holder a new
Warrant Certificate or Certificates for the number of full Warrants not so
transferred.

               (d) Any Warrant Certificate or Certificates may be exchanged at
the option of the holder thereof for another Warrant Certificate or Certificates
of different denominations, of like tenor and representing in the aggregate the
same class and number of Warrants, upon surrender of such Warrant Certificate or
Certificates, with the Form of Assignment duly filled in and executed, to the
Warrant Agent, at any time or from time to time after the close of business on
the date hereof and prior to the close of business on the Expiration Date
relating to such Warrant. The Warrant Agent shall promptly cancel the
surrendered Warrant Certificate and deliver the new Warrant Certificate pursuant
to the provisions of this Section.

         5. MUTILATED, DESTROYED, LOST OR STOLEN WARRANT CERTIFICATES. Upon
receipt by the Company and the Warrant Agent of evidence reasonably satisfactory
to them of the loss, theft, destruction or mutilation of any Warrant
Certificate, and in the case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to them, and reimbursement to them of all
reasonable expenses incidental thereto, and, in the case of mutilation, upon
surrender and cancellation of the Warrant Certificate, the Warrant Agent shall
countersign and deliver a new Warrant Certificate of like tenor for the same
class and number of Warrants.

                                       3
<PAGE>

         6. ADJUSTMENTS OF NUMBER AND KIND OF SHARES PURCHASABLE AND EXERCISE
PRICE. The number and kind of securities or other property purchasable upon
exercise of a Warrant shall be subject to adjustment from time to time upon the
occurrence, after the date hereof, of any of the following events:

               (a) In case the Company shall (1) pay a dividend in, or make a
distribution of, shares of capital stock on its outstanding Common Stock, (2)
subdivide its outstanding shares of Common Stock into a greater number of such
shares or (3) combine its outstanding shares of Common Stock into a smaller
number of such shares, the total number of shares of Common Stock purchasable
upon the exercise of each Warrant outstanding immediately prior thereto shall be
adjusted so that the holder of any Warrant Certificate thereafter surrendered
for exercise shall be entitled to receive at the same aggregate Exercise Price
the number of shares of capital stock (of one or more classes) which such holder
would have owned or have been entitled to receive immediately following the
happening of any of the events described above had such Warrant been exercised
in full immediately prior to the record date with respect to such event. Any
adjustment made pursuant to this Subsection shall, in the case of a stock
dividend or distribution, become effective as of the record date therefor and,
in the case of a subdivision or combination, be made as of the effective date
thereof. If, as a result of an adjustment made pursuant to this Subsection, the
holder of any Warrant Certificate thereafter surrendered for exercise shall
become entitled to receive shares of two or more classes of capital stock of the
Company, the Board of Directors of the Company (whose determination shall be
conclusive and shall be evidenced by a Board resolution filed with the Warrant
Agent) shall determine the allocation of the adjusted Exercise Price between or
among shares of such classes of capital stock.

               (b) In the event of a capital reorganization or a
reclassification of the Common Stock (except as provided in Subsection (a) above
or Subsection (d) below), any Warrantholder, upon exercise of Warrants, shall be
entitled to receive, in substitution for the Common Stock to which he would have
become entitled upon exercise immediately prior to such reorganization or
reclassification, the shares (of any class or classes) or other securities or
property of the Company (or cash) that he would have been entitled to receive at
the same aggregate Exercise Price upon such reorganization or reclassification
if such Warrants had been exercised immediately prior to the record date with
respect to such event; and in any such case, appropriate provision (as
determined by the Board of Directors of the Company, whose determination shall
be conclusive and shall be evidenced by a certified Board resolution filed with
the Warrant Agent) shall be made for the application of this Section 6 with
respect to the rights and interests thereafter of the Warrantholders (including
but not limited to the allocation of the Exercise Price between or among shares
of classes of capital stock), to the end that this Section 6 (including the
adjustments of the number of shares of Common Stock or other securities
purchasable and the Exercise Price thereof) shall thereafter be reflected, as
nearly as reasonably practicable, in all subsequent exercises of the Warrants
for any shares or securities or other property (or cash) thereafter deliverable
upon the exercise of the Warrants.

               (c) Whenever the number of shares of Common Stock or other
securities purchasable upon exercise of a Warrant is adjusted as provided in
this Section 6, the Company will promptly file with the Warrant Agent a
certificate signed by a Chairman or co-Chairman of the Board, the Chief
Executive, the President or a Vice President of the Company and by the Treasurer
or an Assistant Treasurer or the Secretary or an Assistant Secretary of the
Company

                                       4
<PAGE>

setting forth the number and kind of securities or other property purchasable
upon exercise of a Warrant, as so adjusted, stating that such adjustments in the
number or kind of shares or other securities or property conform to the
requirements of this Section 6, and setting forth a brief statement of the facts
accounting for such adjustments. Promptly after receipt of such certificate, the
Company, or the Warrant Agent at the Company's request, will deliver, by
first-class, postage prepaid mail, a brief summary thereof (to be supplied by
the Company) to the registered holders of the outstanding Warrant Certificates;
provided, however, that failure to file or to give any notice required under
this Subsection, or any defect therein, shall not affect the legality or
validity of any such adjustments under this Section 6; and provided, further,
that, where appropriate, such notice may be given in advance and included as
part of the notice required to be given pursuant to Section 12 hereof.

               (d) In case of any consolidation of the Company with, or merger
of the Company into, another corporation (other than a consolidation or merger
which does not result in any reclassification or change of the outstanding
Common Stock), or in case of any sale or conveyance to another corporation of
the property of the Company as an entirety or substantially as an entirety, the
corporation formed by such consolidation or merger or the corporation which
shall have acquired such assets, as the case may be, shall execute and deliver
to the Warrant Agent a supplemental warrant agreement providing that the holder
of each Warrant then outstanding shall have the right thereafter (until the
expiration of such Warrant) to receive, upon exercise of such Warrant, solely
the kind and amount of shares of stock and other securities and property (or
cash) receivable upon such consolidation, merger, sale or transfer by a holder
of the number of shares of Common Stock of the Company for which such Warrant
might have been exercised immediately prior to such consolidation, merger, sale
or transfer. Such supplemental warrant agreement shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments
provided in this Section. The above provision of this Subsection shall similarly
apply to successive consolidations, mergers, sales or transfers.

         The Warrant Agent shall not be under any responsibility to determine
the correctness of any provision contained in any such supplemental warrant
agreement relating to either the kind or amount of shares of stock or securities
or property (or cash) purchasable by holders of Warrant Certificates upon the
exercise of their Warrants after any such consolidation, merger, sale or
transfer or of any adjustment to be made with respect thereto, but subject to
the provisions of Section 20 hereof, may accept as conclusive evidence of the
correctness of any such provisions, and shall be protected in relying upon, a
certificate of a firm of independent certified public accountants (who may be
the accountants regularly employed by the Company) with respect thereto.

               (e) Irrespective of any adjustments in the number or kind of
shares issuable upon exercise of Warrants, Warrant Certificates theretofore or
thereafter issued may continue to express the same price and number and kind of
shares as are stated in the similar Warrant Certificates initially issuable
pursuant to this Warrant Agreement.

               (f) The Company may retain a firm of independent public
accountants of recognized standing, which may be the firm regularly retained by
the Company, selected by the Board of Directors of the Company or the Executive
Committee of said Board, and not disapproved by the Warrant Agent, to make any
computation required under this Section, and a

                                       5
<PAGE>

certificate signed by such firm shall, in the absence of fraud or gross
negligence, be conclusive evidence of the correctness of any computation made
under this Section.

               (g) For the purpose of this Section, the term "COMMON STOCK"
shall mean (i) the Common Stock or (ii) any other class of stock resulting from
successive changes or reclassifications of such Common Stock consisting solely
of changes in par value, or from par value to no par value, or from no par value
to par value. In the event that at any time as a result of an adjustment made
pursuant to this Section, the holder of any Warrant thereafter surrendered for
exercise shall become entitled to receive any shares of capital stock of the
Company other than shares of Common Stock, thereafter the number of such other
shares so receivable upon exercise of any Warrant shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable
to the provisions with respect to the Common Stock contained in this Section,
and all other provisions of this Agreement, with respect to the Common Stock,
shall apply on like terms to any such other shares.

               (h) The Company may, from time to time and to the extent
permitted by law, reduce the Exercise Price of the Warrants by any amount for a
period of not less than 20 days. If the Company so reduces the Exercise Price of
such Warrants, it will give not less than 15 days' notice of such decrease,
which notice may be in the form of a press release, and shall take such other
steps as may be required under applicable law in connection with any offers or
sales of securities at the reduced price.

         7. EXERCISE OF WARRANTS; REDEMPTION OF WARRANTS. Except with respect to
Warrants that have been redeemed as provided in this Section 7, the registered
holder of any Warrant Certificate may exercise the Warrants evidenced thereby,
in whole at any time or in part from time to time at or prior to the close of
business, on the Expiration Date, subject to the provisions of Section 9, at
which time the Warrant Certificates shall be and become wholly void and of no
value. Warrants may be exercised by their holders or redeemed by the Company as
follows:

               (a) Exercise of Warrants shall be accomplished upon surrender of
the Warrant Certificate evidencing such Warrants, with the Form of Election to
Purchase on the reverse side thereof duly filled in and executed, to the Warrant
Agent at its stock transfer office in New York, New York, together with payment
to the Company of the Exercise Price (as of the date of such surrender) of the
Warrants then being exercised and an amount equal to any applicable transfer tax
and, if requested by the Company, any other taxes or governmental charges which
the Company may be required by law to collect in respect of such exercise.
Payment of the Exercise Price and other amounts may be made by wire transfer of
good funds, or by certified or bank cashier's check, payable in lawful money of
the United States of America to the order of the Company. No adjustment shall be
made for any cash dividends, whether paid or declared, on any securities
issuable upon exercise of a Warrant.

               (b) Upon receipt of a Warrant Certificate, with the Form of
Election to Purchase duly filled in and executed, accompanied by payment of the
Exercise Price of the Warrants being exercised (and of an amount equal to any
applicable taxes or government charges as aforesaid), the Warrant Agent shall
promptly request from the Transfer Agent with respect to the securities to be
issued and deliver to or upon the order of the registered holder of such Warrant
Certificate, in such name or names as such registered holder may designate, a
certificate

                                       6
<PAGE>

or certificates for the number of full shares of the securities to be purchased,
together with cash made available by the Company pursuant to Section 8 hereof in
respect of any fraction of a share of such securities otherwise issuable upon
such exercise. If the Warrant is then exercisable to purchase property other
than securities, the Warrant Agent shall take appropriate steps to cause such
property to be delivered to or upon the order of the registered holder of such
Warrant Certificate. In addition, if it is required by law and upon instruction
by the Company, the Warrant Agent will deliver to each Warrantholder a
prospectus which complies with the provisions of Section 9 of the Securities Act
of 1933 and the Company agrees to supply Warrant Agent with sufficient number of
prospectuses to effectuate that purpose.

               (c) In case the registered holder of any Warrant Certificate
shall exercise fewer than all of the Warrants evidenced by such Warrant
Certificate, the Warrant Agent shall promptly countersign and deliver to the
registered holder of such Warrant Certificate, or to his duly authorized
assigns, a new Warrant Certificate or Certificates evidencing the number and
class of Warrants that were not so exercised.

               (d) Each person in whose name any certificate for securities is
issued upon the exercise of Warrants shall for all purposes be deemed to have
become the holder of record of the securities represented thereby as of, and
such certificate shall be dated, the date upon which the Warrant Certificate was
duly surrendered in proper form and payment of the Exercise Price (and of any
applicable taxes or other governmental charges) was made; provided, however,
that if the date of such surrender and payment is a date on which the stock
transfer books of the Company are closed, such person shall be deemed to have
become the record holder of such shares as of, and the certificate for such
shares shall be dated, the next succeeding business day on which the stock
transfer books of the Company are open (whether before, on or after the
Expiration Date relating to such Warrant) and the Warrant Agent shall be under
no duty to deliver the certificate for such shares until such date. The Company
covenants and agrees that it shall not cause its stock transfer books to be
closed for a period of more than 20 consecutive business days except upon
consolidation, merger, sale of all or substantially all of its assets,
dissolution or liquidation or as otherwise provided by law.

               (e) The Class A Warrants outstanding at the time of a redemption
may be redeemed at the option of the Company, in whole or in part on a pro-rata
basis, by giving not less than 30 days prior notice as provided in Section 7(g)
below, which notice may not be given before, but may be given at any time after,
the later of _________, 2007 and the date on which closing price of the Common
Stock on the principal exchange or trading facility on which it is then traded
has equaled or exceeded $_____ per share on each of five consecutive trading
days. The price at which Class A Warrants may be redeemed (the "REDEMPTION
PRICE") is $0.25 per Class A Warrant. On and after the redemption date the
holders of record of redeemed Class A Warrants shall be entitled to payment of
the Redemption Price upon surrender of such redeemed Class A Warrants to the
Company at the office of the Warrant Agent designated for that purpose.

               (f) The Class B Warrants outstanding at the time of a redemption
may be redeemed at the option of the Company, beginning on ___________, 2007
[six months from the date of this Agreement], in whole or in part on a pro-rata
basis, by giving not less than 30 days' prior notice as provided in Section 7(g)
below, which notice may not be given before, but may be given at any time after,
the Company's gross revenue for any 12-month period preceding the date

                                       7
<PAGE>

of the notice, as confirmed by an independent audit, equals or exceeds $100
million. The price at which Class B Warrants may be redeemed (the "REDEMPTION
PRICE") is $0.25 per Class B Warrant. On and after the redemption date the
holders of record of redeemed Class B Warrants shall be entitled to payment of
the Redemption Price upon surrender of such redeemed Class B Warrants to the
Company at the office of the Warrant Agent designated for that purpose.

               (g) Notice of redemption of Warrants shall be given at least 30
days prior to the redemption date by mailing, by registered or certified mail,
return receipt requested, a copy of such notice to the Warrant Agent and to all
of the holders of record of Warrants at their respective addresses appearing on
the books or transfer records of the Company or such other address designated in
writing by the holder of record to the Warrant Agent not less than 40 days prior
to the redemption date.

               (h) From and after the redemption date, all rights of the
Warrantholders with respect to the redeemed Warrants (except the right to
receive the Redemption Price) shall terminate, but only if (i) no later than one
day prior to the redemption date the Company shall have irrevocably deposited
with the Warrant Agent as paying agent a sufficient amount to pay on the
redemption date the Redemption Price for all Warrants called for redemption and
(ii) the notice of redemption shall have stated the name and address of the
Warrant Agent and the intention of the Company to deposit such amount with the
Warrant Agent no later than one day prior to the redemption date.

               (i) On the Redemption Date, the Warrant Agent shall pay to the
holders of record of redeemed Warrants all monies received by the Warrant Agent
for the redemption of Warrants to which the holders of record of such redeemed
Warrants who shall have surrendered their Warrants are entitled. The Warrant
Agent shall have no obligation to pay for the redemption of Warrants except to
the extent that funds for such payment have been provided to it by the Company.

               (j) Any amounts deposited with the Warrant Agent that are not
required for redemption of Warrants may be withdrawn by the Company. Any amounts
deposited with the Warrant Agent that shall be unclaimed after six months after
the redemption date shall be redelivered back to the Company, and thereafter the
holders of the Warrants called for redemption for which such funds were
deposited shall look solely to the Company for payment. The Company shall be
entitled to the interest, if any, on funds deposited with the Warrant Agent and
the holders of redeemed Warrants shall have no right to any such interest. At
the instruction of the Company, the Warrant Agent shall deposit or invest any
and all funds deposited with it by the Company in connection with any redemption
in federally insured, interest bearing accounts with a financial institution or
institutions designated by the Company but shall have no liability with respect
to the performance of any such investments other than, in the case of funds
deposited in accounts maintained by the Warrant Agent, the liability of the
Warrant Agent to its depositors in such accounts, generally.

               (k) If the Company fails to make a sufficient deposit with the
Warrant Agent as provided above, the holder of any Warrants called for
redemption may at the option of the holder (i) by notice to the Company declare
the notice of redemption a nullity as to such holder, or (ii) maintain an action
against the Company for the Redemption Price. If the holder brings

                                       8
<PAGE>

such an action, the Company will pay reasonable attorneys' fees of the holder.
If the holder fails to bring an action against the Company for the Redemption
Price within 60 days after the redemption date, the holder shall be deemed to
have elected to declare the notice of redemption to be a nullity as to such
holder and such notice shall be without any force or effect as to such holder.
Except as otherwise specifically provided in this Paragraph 7(k), a notice of
redemption, once mailed by the Company as provided in Paragraph 7(g) shall be
irrevocable.

               (l) Notwithstanding anything to the contrary in this Section 7,
the Company may not provide notice of any redemption pursuant to this Section 7
at any time at which the Warrants are not currently exercisable as a result of
the application of Section 9. If, during the period between notice of redemption
and the Redemption Date, the Warrants become not currently exercisable as a
result of the application of Section 9, the Redemption Date shall be extended to
be the tenth business day after such restriction on exercise lapses.

         8. FRACTIONAL INTERESTS. The Company shall not be required to issue any
Warrant Certificate evidencing a fraction of a Warrant or to issue fractions of
shares of securities on the exercise of the Warrants. If any fraction
(calculated to the nearest one-hundredth) of a Warrant or a share of securities
would, except for the provisions of this Section, be issuable on the exercise of
any Warrant, the Company shall, at its option, either purchase such fraction for
an amount in cash equal to the current value of such fraction computed on the
basis of the closing market price of a Warrant of the same class (as quoted on
the principal exchange or trading facility on which such class of Warrants is
traded) on the trading day immediately preceding the day upon which such Warrant
Certificate was surrendered for exercise in accordance with Section 7 hereof or
issue the required fractional Warrant or share. By accepting a Warrant
Certificate, the holder thereof expressly waives any right to receive a Warrant
Certificate evidencing any fraction of a Warrant or to receive any fractional
share of securities upon exercise of a Warrant, except as expressly provided in
this Section 8.

         9. RESERVATION OF EQUITY SECURITIES. The Company covenants that it will
at all times reserve and keep available, free from any pre-emptive rights, out
of its authorized and unissued equity securities, solely for the purpose of
issue upon exercise of the Warrants, such number of shares of equity securities
of the Company as shall then be issuable upon the exercise of all outstanding
Warrants ("EQUITY SECURITIES"). The Company covenants that all Equity Securities
which shall be so issuable shall, upon such issue, be duly authorized, validly
issued, fully paid and non-assessable.

         The Company covenants that if any equity securities, required to be
reserved for the purpose of issue upon exercise of the Warrants hereunder,
require registration with or approval of any governmental authority under any
federal or state law before such shares may be issued upon exercise of Warrants,
the Company will use all commercially reasonable efforts to cause such
securities to be duly registered, or approved, as the case may be, and, to the
extent practicable, take all such action in anticipation of and prior to the
exercise of the Warrants, including, without limitation, filing any and all
post-effective amendments to the Company's Registration Statement on Form S-1
(Registration No. 333-137861) necessary to permit a public offering of the
securities underlying the Warrants at any and all times during the term of this
Agreement, provided, however, that in no event shall such securities be issued,
and the Company is authorized to refuse to honor the exercise of any Warrant, if
such exercise would result in the

                                       9
<PAGE>

opinion of the Company's Board of Directors, upon advice of counsel, in the
violation of any law; and provided further that, in the case of a Warrant
exercisable solely for securities listed on a securities exchange or for which
there are at least three independent market makers, in lieu of obtaining such
registration or approval, the Company may elect to redeem Warrants submitted to
the Warrant Agent for exercise for a price equal to the difference between the
aggregate low asked price, or closing price, as the case may be, of the
securities for which such Warrant is exercisable on the date of such submission
and the Exercise Price of such Warrants; in the event of such redemption, the
Company will pay to the holder of such Warrants the above-described redemption
price in cash within 10 business days after receipt of notice from the Warrant
Agent that such Warrants have been submitted for exercise. If, at the Expiration
Date, the Warrants are not currently exercisable as a result of the provisions
of this paragraph, the Expiration Date shall be extended to a date that is 30
calendar days following notice to the holders of Warrants that the Warrants are
again exercisable and references to the Expiration Date herein shall thereafter
refer to such extended Expiration Date.

         10. REDUCTION OF CONVERSION PRICE BELOW PAR VALUE. Before taking any
action that would cause an adjustment pursuant to Section 6 hereof reducing the
portion of the Exercise Price required to purchase one share of capital stock
below the then par value (if any) of a share of such capital stock, the Company
will use its best efforts to take any corporate action which, in the opinion of
its counsel, may be necessary in order that the Company may validly and legally
issue fully paid and non-assessable shares of such capital stock.

         11. PAYMENT OF TAXES. The Company covenants and agrees that it will pay
when due and payable any and all federal and state documentary stamp and other
original issue taxes which may be payable in respect of the original issuance of
the Warrant Certificates, or any shares of Common Stock or other securities upon
the exercise of Warrants. The Company shall not, however, be required (a) to pay
any tax which may be payable in respect of any transfer involved in the transfer
and delivery of Warrant Certificates or the issuance or delivery of certificates
for Common Stock or other securities in a name other than that of the registered
holder of the Warrant Certificate surrendered for purchase or (b) to issue or
deliver any certificate for shares of Common Stock or other securities upon the
exercise of any Warrant Certificate until any such tax shall have been paid, all
such tax being payable by the holder of such Warrant Certificate at the time of
surrender.

         12. NOTICE OF CERTAIN CORPORATE ACTION. In case the Company after the
date hereof shall propose (a) to offer to the holders of Common Stock,
generally, rights to subscribe to or purchase any additional shares of any class
of its capital stock, any evidences of its indebtedness or assets, or any other
rights or options or (b) to effect any reclassification of Common Stock (other
than a reclassification involving merely the subdivision or combination of
outstanding shares of Common Stock) or any capital reorganization, or any
consolidation or merger to which the Company is a party and for which approval
of any shareholders of the Company is required, or any sale, transfer or other
disposition of its property and assets substantially as an entirety, or the
liquidation, voluntary or involuntary dissolution or winding-up of the Company,
then, in each such case, the Company shall file with the Warrant Agent and the
Company, or the Warrant Agent on its behalf, shall mail (by first-class, postage
prepaid mail) to all registered holders of the Warrant Certificates notice of
such proposed action, which notice shall specify the date on which the books of
the Company shall close or a record be taken for such offer of rights or

                                       10
<PAGE>

options, or the date on which such reclassification, reorganization,
consolidation, merger, sale, transfer, other disposition, liquidation, voluntary
or involuntary dissolution or winding-up shall take place or commence, as the
case may be, and which shall also specify any record date for determination of
holders of Common Stock entitled to vote thereon or participate therein and
shall set forth such facts with respect thereto as shall be reasonably necessary
to indicate any adjustments in the Exercise Price and the number or kind of
shares or other securities purchasable upon exercise of Warrants which will be
required as a result of such action. Such notice shall be filed and mailed in
the case of any action covered by clause (a) above, at least ten days prior to
the record date for determining holders of the Common Stock for purposes of such
action or, if a record is not to be taken, the date as of which the holders of
shares of Common Stock of record are to be entitled to such offering; and, in
the case of any action covered by clause (b) above, at least 20 days prior to
the earlier of the date on which such reclassification, reorganization,
consolidation, merger, sale, transfer, other disposition, liquidation, voluntary
or involuntary dissolution or winding-up is expected to become effective and the
date on which it is expected that holders of shares of Common Stock of record on
such date shall be entitled to exchange their shares for securities or other
property deliverable upon such reclassification, reorganization, consolidation,
merger, sale, transfer, other disposition, liquidation, voluntary or involuntary
dissolution or winding-up.

         Failure to give any such notice or any defect therein shall not affect
the legality or validity of any transaction listed in this Section 12.

         13. DISPOSITION OF PROCEEDS ON EXERCISE OF WARRANT CERTIFICATES, ETC.
The Warrant Agent shall account promptly to the Company with respect to Warrants
exercised and concurrently pay to the Company all moneys received by the Warrant
Agent for the purchase of securities or other property through the exercise of
such Warrants.

         The Warrant Agent shall keep copies of this Agreement available for
inspection by Warrantholders during normal business hours at its stock transfer
office. Copies of this Agreement may be obtained upon written request addressed
to the Warrant Agent at its stock transfer office in New York, New York.

         14. WARRANTHOLDER NOT DEEMED A SHAREHOLDER. No Warrantholder, as such,
shall be entitled to vote, receive dividends or be deemed the holder of Common
Stock or any other securities of the Company which may at any time be issuable
on the exercise of the Warrants represented thereby for any purpose whatever,
nor shall anything contained herein or in any Warrant Certificate be construed
to confer upon any Warrantholder, as such, any of the rights of a shareholder of
the Company or any right to vote for the election of directors or upon any
matter submitted to shareholders at any meeting thereof, or to give or withhold
consent to any corporate action (whether upon any recapitalization, issuance of
stock, reclassification of stock, change of par value or change of stock to no
par value, consolidation, merger, conveyance or otherwise), or to receive notice
of meetings or other actions affecting shareholders (except as provided in
Section 12 hereof), or to receive dividend or subscription rights, or otherwise,
until such Warrant Certificate shall have been exercised in accordance with the
provisions hereof and the receipt of the Exercise Price and any other amounts
payable upon such exercise by the Warrant Agent.

                                       11
<PAGE>

         15. RIGHT OF ACTION. All rights of action in respect to this Agreement
are vested in the respective registered holders of the Warrant Certificates; and
any registered holder of any Warrant Certificate, without the consent of the
Warrant Agent or of any other holder of a Warrant Certificate, may, in his own
behalf for his own benefit, enforce, and may institute and maintain any suit,
action or proceeding against the Company suitable to enforce, or otherwise in
respect of, his right to exercise the Warrants evidenced by such Warrant
Certificate, for the purchase of shares of the Common Stock in the manner
provided in the Warrant Certificate and in this Agreement.

         16. AGREEMENT OF HOLDERS OF WARRANT CERTIFICATES. Every holder of a
Warrant Certificate by accepting the same consents and agrees with the Company,
the Warrant Agent and with every other holder of a Warrant Certificate that:

               (a) the Warrant Certificates are transferable on the registry
books of the Warrant Agent only upon the terms and conditions set forth in this
Agreement; and

               (b) the Company and the Warrant Agent may deem and treat the
person in whose name the Warrant Certificate is registered as the absolute owner
of the Warrant (notwithstanding any notation of ownership or other writing
thereon made by anyone other than the Company or the Warrant Agent) for all
purposes whatever and neither the Company nor the Warrant Agent shall be
affected by any notice to the contrary.

17. CANCELLATION OF WARRANT CERTIFICATES. In the event that the Company shall
purchase or otherwise acquire any Warrant Certificate or Certificates after the
issuance thereof, such Warrant Certificate or Certificates shall thereupon be
delivered to the Warrant Agent and be canceled by it and retired. The Warrant
Agent shall also cancel any Warrant Certificate delivered to it for exercise, in
whole or in part, or delivered to it for transfer, split-up, combination or
exchange. Warrant Certificates so canceled shall be delivered by the Warrant
Agent to the Company from time to time, or disposed of in accordance with the
instructions of the Company.

         18. CONCERNING THE WARRANT AGENT. The Company agrees to pay to the
Warrant Agent from time to time, on demand of the Warrant Agent, reasonable
compensation for all services rendered by it hereunder and also its reasonable
expenses, including counsel fees, and other disbursements incurred in the
administration and execution of this Agreement and the exercise and performance
of its duties hereunder. The Company also agrees to indemnify the Warrant Agent
for, and to hold it harmless against, any loss, liability or expense, incurred
without gross negligence, bad faith or willful misconduct on the part of the
Warrant Agent, arising out of or in connection with the acceptance and
administration of this Agreement.

         19. MERGER OR CONSOLIDATION OR CHANGE OF NAME OF WARRANT AGENT. Any
corporation into which the Warrant Agent may be merged or with which it may be
consolidated, or any corporation resulting from any merger or consolidation to
which the Warrant Agent shall be a party, or any corporation succeeding to the
corporate trust business of the Warrant Agent, shall be the successor to the
Warrant Agent hereunder without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided that such
corporation would be eligible for appointment as a successor warrant agent under
the provisions of Section 21 hereof.

                                       12
<PAGE>

In case at the time such successor to the Warrant Agent shall succeed to the
agency created by this Agreement, any of the Warrant Certificates shall have
been countersigned but not delivered, any such successor to the Warrant Agent
may adopt the countersignature of the original Warrant Agent and deliver such
Warrant Certificates so countersigned; and in case at that time any of the
Warrant Certificates shall not have been countersigned, any successor to the
Warrant Agent may countersign such Warrant Certificates either in the name of
the predecessor Warrant Agent or in the name of the successor Warrant Agent; and
in all such cases such Warrant Certificates shall have the full force provided
in the Warrant Certificates and in this Agreement.

         In case at any time the name of the Warrant Agent shall be changed and
at such time any of the Warrant Certificates shall have been countersigned but
not delivered, the Warrant Agent may adopt the countersignature under its prior
name and deliver Warrant Certificates so countersigned; and in case at that time
any of the Warrant Certificates shall not have been countersigned, the Warrant
Agent may countersign such Warrant Certificates either in its prior name or in
its changed name; and in all such cases such Warrant Certificates shall have the
full force provided in the Warrant Certificates and in this Agreement.

         20. DUTIES OF WARRANT AGENT. The Warrant Agent undertakes the duties
and obligations imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of Warrant Certificates,
by their acceptance thereof, shall be bound:

               (a) The Warrant Agent may consult with counsel satisfactory to it
(who may be counsel for the Company), and the opinion of such counsel shall be
full and complete authorization and protection to the Warrant Agent as to any
action taken, suffered or omitted by it in good faith and in accordance with
such opinion; provided, however, that the Warrant Agent shall have exercised
reasonable care in the selection of such counsel. Fees and expenses of such
counsel, to the extent reasonable, shall be paid by the Company.

               (b) Whenever in the performance of its duties under this
Agreement, the Warrant Agent shall deem it necessary or desirable that any fact
or matter be proved or established by the Company prior to taking or suffering
any action hereunder, such fact or matter (unless other evidence in respect
thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by a Chairman or co-Chairman of
the Board, the Chief Executive Officer, the President or a Vice President or the
Secretary of the Company and delivered to the Warrant Agent; and such
certificate shall be full authorization to the Warrant Agent for any action
taken or suffered in good faith by it under the provisions of this Agreement in
reliance upon such certificate.

               (c) The Warrant Agent shall be liable hereunder only for its own
gross negligence, bad faith or willful misconduct.

               (d) The Warrant Agent shall not be liable for or by reason of any
of the statements of fact or recitals contained in this Agreement or in the
Warrant Certificates (except its countersignature on the Warrant Certificates
and such statements or recitals as describe the Warrant Agent or action taken or
to be taken by it) or be required to verify the same, but all such statements
and recitals are and shall be deemed to have been made by the Company only.

                                       13
<PAGE>

               (e) The Warrant Agent shall not be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Warrant Agent) or in respect of the
validity or execution of any Warrant Certificate (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant Certificate;
nor shall it be responsible for the making of any change in the number of shares
of Common Stock for which a Warrant is exercisable required under the provisions
of Section 6 or responsible for the manner, method or amount of any such change
or the ascertaining of the existence of facts that would require any such
adjustment or change (except with respect to the exercise of Warrant
Certificates after actual notice of any adjustment of the Exercise Price); nor
shall it by any act hereunder be deemed to make any representation or warranty
as to the authorization or reservation of any shares of Common Stock to be
issued pursuant to this Agreement or any Warrant Certificate or as to whether
any shares of Common Stock will, when issued, be validly issued, fully paid and
non-assessable.

               (f) The Warrant Agent shall be under no obligation to institute
any action, suit or legal proceeding or take any other action likely to involve
expense unless the Company or one or more registered holders of Warrant
Certificates shall furnish the Warrant Agent with reasonable security and
indemnity for any costs and expenses which may be incurred. All rights of action
under this Agreement or under any of the Warrants may be enforced by the Warrant
Agent without the possession of any of the Warrants or the production thereof at
any trial or other proceeding relative thereto, and any such action, suit or
proceeding instituted by the Warrant Agent shall be brought in its name as
Warrant Agent, and any recovery of judgment shall be for the ratable benefit of
the registered holders of the Warrant Certificates, as their respective rights
or interests may appear.

               (g) The Warrant Agent and any shareholder, director, officer or
employee of the Warrant Agent may buy, sell or deal in any of the Warrants or
other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or lend
money to or otherwise act as fully and freely as though it were not Warrant
Agent under this Agreement. Nothing herein shall preclude the Warrant Agent from
acting in any other capacity for the Company or for any other legal entity.

               (h) The Warrant Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from a
Chairman or co-Chairman of the Board or President or a Vice President or the
Secretary or the Controller of the Company, and to apply to such officers for
advice or instructions in connection with the Warrant Agent's duties, and it
shall not be liable for any action taken or suffered or omitted by it in good
faith in accordance with instructions of any such officer.

               (i) The Warrant Agent will not be responsible for any failure of
the Company to comply with any of the covenants contained in this Agreement or
in the Warrant Certificates to be complied with by the Company.

               (j) The Warrant Agent may execute and exercise any of the rights
or powers hereby vested in it or perform any duty hereunder either itself or by
or through its attorneys, agents or employees and the Warrant Agent shall not be
answerable or accountable for any act,

                                       14
<PAGE>

default, neglect or misconduct of any such attorneys, agents or employees or for
any loss to the Company resulting from such neglect or misconduct; provided,
however, that reasonable care shall have been exercised in the selection and
continued employment of such attorneys, agents and employees.

               (k) The Warrant Agent will not incur any liability or
responsibility to the Company or to any holder of any Warrant Certificate for
any action taken, or any failure to take action, in reliance on any notice,
resolution, waiver, consent, order, certificate, or other paper, document or
instrument reasonably believed by the Warrant Agent to be genuine and to have
been signed, sent or presented by the proper party or parties.

               (l) The Warrant Agent will act hereunder solely as agent of the
Company in a ministerial capacity, and its duties will be determined solely by
the provisions hereof. The Warrant Agent will not be liable for anything which
it may do or refrain from doing in connection with this Agreement except for its
own gross negligence, bad faith or willful conduct.

         21. CHANGE OF WARRANT AGENT. The Warrant Agent may resign and be
discharged from its duties under this Agreement upon 30 days' prior notice in
writing mailed, by registered or certified mail, to the Company. The Company may
remove the Warrant Agent or any successor warrant agent upon 30 days' prior
notice in writing, mailed to the Warrant Agent or successor warrant agent, as
the case may be, by registered or certified mail. If the Warrant Agent shall
resign or be removed or shall otherwise become incapable of acting, the Company
shall appoint a successor to the Warrant Agent and shall, within 15 days
following such appointment, give notice thereof in writing to each registered
holder of the Warrant Certificates. If the Company shall fail to make such
appointment within a period of 15 days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Warrant Agent, then the Company agrees to perform the
duties of the Warrant Agent hereunder until a successor Warrant Agent is
appointed. After appointment and execution of a copy of this Agreement in effect
at that time, the successor Warrant Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as
Warrant Agent without further act or deed; but the former Warrant Agent shall
deliver and transfer to the successor Warrant Agent, within a reasonable time,
any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Failure to
give any notice provided for in this Section, however, or any defect therein
shall not affect the legality or validity of the resignation or removal of the
Warrant Agent or the appointment of the successor warrant agent, as the case may
be.

         22. ISSUANCE OF NEW WARRANT CERTIFICATES. Notwithstanding any of the
provisions of this Agreement or the several Warrant Certificates to the
contrary, the Company may, at its option, issue new Warrant Certificates in such
form as may be approved by its Board of Directors to reflect any adjustment or
change in the Exercise Price or the number or kind of shares purchasable under
the several Warrant Certificates made in accordance with the provisions of this
Agreement.

         23. NOTICES. Notice or demand pursuant to this Agreement to be given or
made on the Company by the Warrant Agent or by the registered holder of any
Warrant Certificate shall be

                                       15
<PAGE>

sufficiently given or made if sent by first-class or registered mail, postage
prepaid, addressed (until another address is filed in writing by the Company
with the Warrant Agent) as follows:

         Vaughan Foods, Inc.
         216 N.E. 12th Street
         Moore, Oklahoma 73160
         Attention: Chief Financial Officer

         Subject to the provisions of Section 21, any notice pursuant to this
Agreement to be given or made by the Company or by the holder of any Warrant
Certificate to or on the Warrant Agent shall be sufficiently given or made if
sent by first-class or registered mail, postage prepaid, addressed (until
another address is filed in writing by the Warrant Agent with the Company) as
follows:

         --------------------------
         --------------------------
         --------------------------
         --------------------------

         Any notice or demand authorized to be given or made to the registered
holder of any Warrant Certificate under this Agreement shall be sufficiently
given or made if sent by first-class or registered mail, postage prepaid, to the
last address of such holder as it shall appear on the registers maintained by
the Warrant Agent.

         24. MODIFICATION OF AGREEMENT. The Warrant Agent may, without the
consent or concurrence of the Warrantholders, by supplemental agreement or
otherwise, concur with the Company in making any changes or corrections in this
Agreement that the Warrant Agent shall have been advised by counsel (who may be
counsel for the Company) are necessary or desirable to cure any ambiguity or to
correct any defective or inconsistent provision or clerical omission or mistake
or manifest error herein contained, or to make any other provisions in regard to
matters or questions arising hereunder and which shall not be inconsistent with
the provisions of the Warrant Certificates and which shall not adversely affect
the interests of the Warrantholders. As of the date hereof, this Agreement
contains the entire and only agreement, understanding, representation,
condition, warranty or covenant between the parties hereto with respect to the
matters herein, supersedes any and all other agreements between the parties
hereto relating to such matters, and may be modified or amended only by a
written agreement signed by both parties hereto pursuant to the authority
granted by the first sentence of this Section.

         25. SUCCESSORS. All the covenants and provisions of this Agreement by
or for the benefit of the Company or the Warrant Agent shall bind and inure to
the benefit of their respective successors and assigns hereunder.

         26. OKLAHOMA CONTRACT. This Agreement and each Warrant Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of Oklahoma and for all purposes shall be construed in accordance with the
laws of said State.

                                       16
<PAGE>

         27. TERMINATION. This Agreement shall terminate as of the close of
business on the Expiration Date, or such earlier date upon which all Warrants
shall have been exercised or redeemed, except that the Warrant Agent shall
account to the Company as to all Warrants outstanding and all cash held by it as
of the close of business on the Expiration Date.

         28. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement or in the
Warrant Certificates shall be construed to give to any person or corporation
other than the Company, the Warrant Agent, and their respective successors and
assigns hereunder and the registered holders of the Warrant Certificates any
legal or equitable right, remedy or claim under this Agreement; but this
Agreement shall be for the sole and exclusive benefit of the Company, the
Warrant Agent, their respective successors and assigns hereunder and the
registered holders of the Warrant Certificates.

         29. DESCRIPTIVE HEADINGS. The descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

         30. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall
together constitute one and the same instrument.

      (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS)

                                       17
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, all as of the day and year first above written.

                                                     VAUGHAN FOODS, INC.

                                    By:
                                       -----------------------------------------
                                         Name:      Mark E. Vaughan
                                         Title:     Chief Executive Officer

                                    [--------------------------]

                                    By:
                                       -----------------------------------------
                                         Name:
                                         Title:

                                    By:
                                       -----------------------------------------
                                         Name:
                                         Title:

                                       18
<PAGE>

                                    EXHIBIT A

                VOID AFTER 5 P.M. PACIFIC TIME ON _________, 2012

                    CLASS A WARRANTS TO PURCHASE COMMON STOCK

Certificate number _______                                    _________ Warrants

                               Vaughan Foods, Inc.

                                CUSIP __________

THIS CERTIFIES THAT

or registered assigns, is the registered holder of the number of Class A
Warrants ("WARRANTS") set forth above. Each Warrant, unless and until redeemed
by the Company as provided in the Warrant Agreement, hereinafter more fully
described (the "WARRANT AGREEMENT") entitles the holder thereof to purchase from
Vaughan Foods, Inc., a corporation incorporated under the laws of the State of
Oklahoma the ("COMPANY"), subject to the terms and conditions set forth
hereinafter and in the Warrant Agreement, at any time on or after _________,
2007 and before the close of business on _________, 2012 ("EXPIRATION DATE"),
one fully paid and non-assessable share of Common Stock of the Company ("COMMON
STOCK") upon presentation and surrender of this Warrant Certificate, with the
instructions for the registration and delivery of Common Stock filled in, at the
stock transfer office in New York, New York, of Continental Stock Transfer &
Trust Company, Warrant Agent of the Company ("WARRANT AGENT") or of its
successor warrant agent or, if there be no successor warrant agent, at the
corporate offices of the Company, and upon payment of the Exercise Price (as
defined in the Warrant Agreement) and any applicable taxes paid either in cash,
or by certified or official bank check, payable in lawful money of the United
States of America to the order of the Company. Each Warrant initially entitles
the holder to purchase one share of Common Stock for $_____. The number and kind
of securities or other property for which the Warrants are exercisable are
subject to adjustment in certain events, such as mergers, splits, stock
dividends, splits and the like, to prevent dilution. The Company may redeem any
or all outstanding and unexercised Warrants by giving not less than 30 days
prior notice at any time after the later of _________, 2007 and the date on
which closing price of the Common Stock on the principal exchange or trading
facility on which it is traded has equaled or exceeded $_____ per share on each
of five consecutive trading days. The Redemption Price is $0.25 per Warrant. All
Warrants not theretofore exercised will expire on the Expiration Date.

<PAGE>

         This Warrant Certificate is subject to all of the terms, provisions and
conditions of the Warrant Agreement, dated as of _______, 2007, between the
Company and the Warrant Agent, to all of which terms, provisions and conditions
the registered holder of this Warrant Certificate consents by acceptance hereof.
The Warrant Agreement is incorporated herein by reference and made a part hereof
and reference is made to the Warrant Agreement for a full description of the
rights, limitations of rights, obligations, duties and immunities of the Warrant
Agent, the Company and the holders of the Warrant Certificates. Copies of the
Warrant Agreement are available for inspection at the stock transfer office of
the Warrant Agent or may be obtained upon written request addressed to the
Company at Vaughan Foods, Inc., 216 N.E. 12th Street, Moore, Oklahoma 73160,
Attention: Chief Financial Officer.

         The Company shall not be required upon the exercise of the Warrants
evidenced by this Warrant Certificate to issue fractions of Warrants, Common
Stock or other securities, but shall make adjustment therefor in cash on the
basis of the current market value of any fractional interest as provided in the
Warrant Agreement.

         In certain cases, the sale of securities by the Company upon exercise
of Warrants may violate the securities laws of the United States, certain states
thereof or other jurisdictions. The Company has agreed to use all commercially
reasonable efforts to cause a registration statement to continue to be effective
during the term of the Warrants with respect to such sales under the Securities
Act of 1933, and to take such action under the laws of various states as may be
required to cause the sale of securities upon exercise to be lawful. However,
the Company will not be required to honor the exercise of Warrants if, in the
opinion of the Board of Directors, upon advice of counsel, the sale of
securities upon such exercise would be unlawful. In certain cases, the Company
may, but is not required to, purchase Warrants submitted for exercise for a cash
price equal to the difference between the market price of the securities
obtainable upon such exercise and the exercise price of such Warrants. If the
Warrants would otherwise expire while not exercisable as a result of any such
determination by the Board of Directors, their Expiration Date will be extended
to a date 30 days after the Warrants once again become exercisable.

         This Warrant Certificate, with or without other Certificates, upon
surrender to the Warrant Agent, any successor warrant agent or, in the absence
of any successor warrant agent, at the corporate offices of the Company, may be
exchanged for another Warrant Certificate or Certificates evidencing in the
aggregate the same number of Warrants as the Warrant Certificate or Certificates
so surrendered. If the Warrants evidenced by this Warrant Certificate shall be
exercised in part, the holder hereof shall be entitled to receive upon surrender
hereof another Warrant Certificate or Certificates evidencing the number of
Warrants not so exercised.

         No holder of this Warrant Certificate, as such, shall be entitled to
vote, receive dividends or be deemed the holder of Common Stock or any other
securities of the Company which may at any time be issuable on the exercise
hereof for any purpose whatever, nor shall anything contained in the Warrant
Agreement or herein be construed to confer upon the holder of this Warrant
Certificate, as such, any of the rights of a shareholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
shareholders at any meeting thereof or give or withhold consent to any corporate
action (whether upon any matter submitted to shareholders at any meeting
thereof, or give or withhold consent to any merger, recapitalization, issuance
of stock, reclassification of stock, change of par value or change of

<PAGE>

stock to no par value, consolidation, conveyance or otherwise) or to receive
notice of meetings or other actions affecting shareholders (except as provided
in the Warrant Agreement) or to receive dividends or subscription rights or
otherwise until the Warrants evidenced by this Warrant Certificate shall have
been exercised and the Common Stock purchasable upon the exercise thereof shall
have become deliverable as provided in the Warrant Agreement.

         If this Warrant Certificate shall be surrendered for exercise within
any period during which the transfer books for the Company's Common Stock or
other class of stock purchasable upon the exercise of the Warrants evidenced by
this Warrant Certificate are closed for any purpose, the Company shall not be
required to make delivery of certificates for shares purchasable upon such
transfer until the date of the reopening of said transfer books.

         Every holder of this Warrant Certificate by accepting the same consents
and agrees with the Company, the Warrant Agent, and with every other holder of a
Warrant Certificate that:

         (a) this Warrant Certificate is transferable on the registry books of
the Warrant Agent only upon the terms and conditions set forth in the Warrant
Agreement, and

         (b) the Company and the Warrant Agent may deem and treat the person in
whose name this Warrant Certificate is registered as the absolute owner hereof
(notwithstanding any notation of ownership or other writing thereon made by
anyone other than the Company or the Warrant Agent) for all purposes whatsoever
and neither the Company nor the Warrant Agent shall be affected by any notice to
the contrary. The Company shall not be required to issue or deliver any
certificate for shares of Common Stock or other securities upon the exercise of
Warrants evidenced by this Warrant Certificate until any tax which may be
payable in respect thereof by the holder of this Warrant Certificate pursuant to
the Warrant Agreement shall have been paid, such tax being payable by the holder
of this Warrant Certificate at the time of surrender.

         This Warrant Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Warrant Agent.

      (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS)

<PAGE>

         WITNESS the facsimile signatures of the proper officers of the Company
and its corporate seal.

Dated: _______________

                                          VAUGHAN FOODS, INC.

                                          By: __________________________________
                                               Name:
                                               Title: President

                                          Attest:  _____________________________
                                                    Secretary

Countersigned:

Continental Stock Transfer & Trust Company
Warrant Agent

By: ______________________________________
     Authorized Officer

<PAGE>

                                    EXHIBIT B

                VOID AFTER 5 P.M. PACIFIC TIME ON _________, 2012

                    CLASS B WARRANTS TO PURCHASE COMMON STOCK

Certificate number _______                                  _________ Warrants

                               Vaughan Foods, Inc.

                              CUSIP ______________

THIS CERTIFIES THAT

or registered assigns, is the registered holder of the number of Class B
Warrants ("WARRANTS") set forth above. Subject to the terms of the Warrant
Agreement, hereinafter more fully described (the "WARRANT AGREEMENT"), each
Warrant entitles the holder thereof to purchase from Vaughan Foods, Inc., a
corporation incorporated under the laws of the State of Oklahoma the
("COMPANY"), subject to the terms and conditions set forth hereinafter and in
the Warrant Agreement, at any time on or after _________, 2007 and before the
close of business on _________, 2012 ("EXPIRATION DATE"), one fully paid and
non-assessable share of Common Stock of the Company ("COMMON Stock") upon
presentation and surrender of this Warrant Certificate, with the instructions
for the registration and delivery of Common Stock filled in, at the stock
transfer office in New York, New York, of Continental Stock Transfer & Trust
Company, Warrant Agent of the Company ("WARRANT AGENT") or of its successor
warrant agent or, if there be no successor warrant agent, at the corporate
offices of the Company, and upon payment of the Exercise Price (as defined in
the Warrant Agreement) and any applicable taxes paid either in cash, or by
certified or official bank check, payable in lawful money of the United States
of America to the order of the Company. Each Warrant initially entitles the
holder to purchase one share of Common Stock for $______. The number and kind of
securities or other property for which the Warrants are exercisable are subject
to adjustment in certain events, such as mergers, splits, stock dividends,
splits and the like, to prevent dilution. Beginning on __________, 2007, the
Company may redeem any or all outstanding and unexercised warrants by giving not
less than 30 days' prior written notice at any time after the Company's gross
revenue for any 12-month period, as confirmed by an independent audit, equals or
exceeds $100.0 million. The Redemption Price is $0.25 per Warrant. All Warrants
not theretofore exercised will expire on the Expiration Date.

                                       1
<PAGE>

         This Warrant Certificate is subject to all of the terms, provisions and
conditions of the Warrant Agreement, dated as of _______, 2007, between the
Company and the Warrant Agent, to all of which terms, provisions and conditions
the registered holder of this Warrant Certificate consents by acceptance hereof.
The Warrant Agreement is incorporated herein by reference and made a part hereof
and reference is made to the Warrant Agreement for a full description of the
rights, limitations of rights, obligations, duties and immunities of the Warrant
Agent, the Company and the holders of the Warrant Certificates. Copies of the
Warrant Agreement are available for inspection at the stock transfer office of
the Warrant Agent or may be obtained upon written request addressed to the
Company at Vaughan Foods, Inc., 216 N.E. 12th Street, Moore, Oklahoma 73160,
Attention: Chief Financial Officer.

         The Company shall not be required upon the exercise of the Warrants
evidenced by this Warrant Certificate to issue fractions of Warrants, Common
Stock or other securities, but shall make adjustment therefor in cash on the
basis of the current market value of any fractional interest as provided in the
Warrant Agreement.

         In certain cases, the sale of securities by the Company upon exercise
of Warrants may violate the securities laws of the United States, certain states
thereof or other jurisdictions. The Company has agreed to use all commercially
reasonable efforts to cause a registration statement to continue to be effective
during the term of the Warrants with respect to such sales under the Securities
Act of 1933, and to take such action under the laws of various states as may be
required to cause the sale of securities upon exercise to be lawful. However,
the Company will not be required to honor the exercise of Warrants if, in the
opinion of the Board of Directors, upon advice of counsel, the sale of
securities upon such exercise would be unlawful. In certain cases, the Company
may, but is not required to, purchase Warrants submitted for exercise for a cash
price equal to the difference between the market price of the securities
obtainable upon such exercise and the exercise price of such Warrants. If the
Warrants would otherwise expire while not exercisable as a result of any such
determination by the Board of Directors, their Expiration Date will be extended
to a date 30 days after the Warrants once again become exercisable.

         This Warrant Certificate, with or without other Certificates, upon
surrender to the Warrant Agent, any successor warrant agent or, in the absence
of any successor warrant agent, at the corporate offices of the Company, may be
exchanged for another Warrant Certificate or Certificates evidencing in the
aggregate the same number of Warrants as the Warrant Certificate or Certificates
so surrendered. If the Warrants evidenced by this Warrant Certificate shall be
exercised in part, the holder hereof shall be entitled to receive upon surrender
hereof another Warrant Certificate or Certificates evidencing the number of
Warrants not so exercised.

         No holder of this Warrant Certificate, as such, shall be entitled to
vote, receive dividends or be deemed the holder of Common Stock or any other
securities of the Company which may at any time be issuable on the exercise
hereof for any purpose whatever, nor shall anything contained in the Warrant
Agreement or herein be construed to confer upon the holder of this Warrant
Certificate, as such, any of the rights of a shareholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
shareholders at any meeting thereof or give or withhold consent to any corporate
action (whether upon any matter submitted to shareholders at any meeting
thereof, or give or withhold consent to any merger, recapitalization, issuance
of stock, reclassification of stock, change of par value or change of

                                       2
<PAGE>

stock to no par value, consolidation, conveyance or otherwise) or to receive
notice of meetings or other actions affecting shareholders (except as provided
in the Warrant Agreement) or to receive dividends or subscription rights or
otherwise until the Warrants evidenced by this Warrant Certificate shall have
been exercised and the Common Stock purchasable upon the exercise thereof shall
have become deliverable as provided in the Warrant Agreement.

         If this Warrant Certificate shall be surrendered for exercise within
any period during which the transfer books for the Company's Common Stock or
other class of stock purchasable upon the exercise of the Warrants evidenced by
this Warrant Certificate are closed for any purpose, the Company shall not be
required to make delivery of certificates for shares purchasable upon such
transfer until the date of the reopening of said transfer books.

         Every holder of this Warrant Certificate by accepting the same consents
and agrees with the Company, the Warrant Agent, and with every other holder of a
Warrant Certificate that:

         (a) this Warrant Certificate is transferable on the registry books of
the Warrant Agent only upon the terms and conditions set forth in the Warrant
Agreement, and

         (b) the Company and the Warrant Agent may deem and treat the person in
whose name this Warrant Certificate is registered as the absolute owner hereof
(notwithstanding any notation of ownership or other writing thereon made by
anyone other than the Company or the Warrant Agent) for all purposes whatsoever
and neither the Company nor the Warrant Agent shall be affected by any notice to
the contrary. The Company shall not be required to issue or deliver any
certificate for shares of Common Stock or other securities upon the exercise of
Warrants evidenced by this Warrant Certificate until any tax which may be
payable in respect thereof by the holder of this Warrant Certificate pursuant to
the Warrant Agreement shall have been paid, such tax being payable by the holder
of this Warrant Certificate at the time of surrender.

         This Warrant Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Warrant Agent.

      (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS)

                                       3

<PAGE>

         WITNESS the facsimile signatures of the proper officers of the Company
and its corporate seal.

Dated: _______________

                                        VAUGHAN FOODS, INC.

                                        By: ____________________________________
                                             Name:
                                             Title:   President

                                        Attest:  _______________________________
                                                  Secretary

Countersigned:

Continental Stock Transfer & Trust Company
Warrant Agent

By: ______________________________________
     Authorized Officer

                                       4

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