Document:

Exhibit 10.1

               PEOPLES COMMUNITY BANCORP, INC.
       AMENDED AND RESTATED DIRECTORS' RETIREMENT PLAN

   THIS AMENDED AND RESTATED PEOPLES COMMUNITY BANCORP, INC.
DIRECTORS' RETIREMENT PLAN was originally effective as of January
1, 1994 (the "Prior Plan") and is hereby amended and restated as
of June 22, 2007.

     The purpose of this Amended and Restated Directors'
Retirement Plan (hereinafter referred to as the "Plan") is to
provide supplemental retirement and death benefits for Directors
(as defined in Section 1.06 herein) of the Company (as defined in
Section 1.04 herein), and any affiliated or subsidiary
corporations of the Company designated by the Board.  It is
intended that the Plan will aid in retaining and attracting
directors of exceptional ability by providing them with these
benefits.  This Plan as amended and restated shall be effective
as of June 22, 2007.

     The Plan is intended to be an unfunded plan qualifying as a
"top hat" plan for purposes of Title I of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), and for
purposes of the Internal Revenue Code of 1986, as amended (the
"Code").  The Plan is being amended and restated in order to
comply with the requirements of Section 409A of the Code and the
final regulations issued by the Internal Revenue Service.  No
benefits payable under this Plan shall be deemed to be
grandfathered for purposes of Section 409A of the Code.

                        ARTICLE I
                       DEFINITIONS

   For purposes hereof, unless otherwise clearly apparent from
the context, the following phrases and terms shall have the
indicated meanings:

     1.01 Annual Retirement Benefit.  "Annual Retirement Benefit"
means the benefit determined in accordance with Section 4.01 of
this Plan, exclusive of any other plans maintained by Peoples
Community Bank (the "Bank") or the Company.

     1.02 Beneficiary.  "Beneficiary" means a person or
entity designated in accordance with Article VII of this Plan to
receive benefits upon the death of a Director.

     1.03 Change in Control.  "Change in Control" means a change
in the ownership of the Company, a change in the effective
control of the Company or a change in the ownership of a
substantial portion of the assets of the Company, in each case as
provided under Section 409A of the Internal Revenue Code of 1986,
as amended (the "Code") and the regulations thereunder.

     1.04 Company.  "Company" means Peoples Community Bancorp,
Inc., and its successors and assigns, and including any
corporation, association or other form of business organization
into which it may be converted or to which it may transfer
substantially all of its assets.

     1.05 Compensation.  "Compensation" means all
compensation received by a Director from the Company for the
usual, customary, and ordinary services rendered as a Director to
the Company. Compensation does not include any additional amount
received by

a Director for services rendered to the Company as or
in an executive capacity, nor does compensation include wages,
reimbursement items, fringe benefit costs, stock option or
restricted stock income or any other form of remuneration.

     1.06 Director.  "Director" shall have the meaning as is
subscribed to that term by 12 CFR Section 561.18.  Director shall
not include an advisory director, honorary director or director
emeritus.

     1.07 Early Retirement Benefit.  "Early Retirement Benefit"
shall have the meaning set forth in Section 4.02 of the Plan.

     1.08 Early Retirement Date.  "Early Retirement Date" means
the date on which a Director has a Separation from Service from
the Company prior to attaining age sixty-five (65).

     1.09 Normal Retirement Benefit.  "Normal Retirement Benefit"
shall have the meaning set forth in Section 4.01 of the Plan.

     1.10 Normal Retirement Date.  "Normal Retirement Date"
means the first day on which a Director has attained sixty-five
(65) years of age.

     1.11 Plan Year.  "Plan Year" means the calendar year.

     1.12 Retirement.  "Retirement" means a Director's Separation
from Service from the Company on or after the Director's Early
Retirement Date or Normal Retirement Date.

     1.13 Retirement Date.  "Retirement Date" means the date
that a Director has a Separation from Service that qualifies as a
Retirement.

     1.14 Separation from Service.  "Separation from Service"
means a separation from service within the meaning of Section
409A of the Code and the regulations thereunder for any reason
other than death or Total and Permanent Disability (as defined in
Section 1.16 herein).

     1.15 Specified Employee.  "Specified Employee" shall have
the meaning set forth in Treasury Regulation Section 1.409A-1(i)
or any successor thereto, with the Specified Employee identification
date being December 31st of each year.

     1.16 Total and Permanent Disability.  "Total and Permanent
Disability" means the Director (i) is unable to engage in any
substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected
to result in death or can be expected to last for a continuous
period of not less than 12 months, or (ii) is, by reason of any
medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months
under an accident and health plan covering employees of the
Company.

                                                      2

                       ARTICLE II
                 GENERAL PLAN PROVISIONS

     2.01 Director's Rights.  The rights of a Director or a
Director's beneficiaries to benefits under this Plan shall be
solely those of an unsecured creditor of the Company.  Any asset
acquired or held by, or on behalf of, the Company or funds
allocated by the Company in connection with the liabilities
assumed by the Company pursuant to the Plan shall not be deemed
to be held under any trust for the benefit of a Director or a
Director's beneficiaries or to be security for the performance of
the Company's obligations pursuant hereto, but shall be and
remain a general asset of the Company.

     2.02 Plan Not an Employment Agreement.  This Plan does not
constitute a contract of employment.

     2.03  Rights Reserved to Directors.  The Board of Directors
of the Company reserves the right to amend or terminate this Plan
by a resolution duly adopted by a two-thirds majority vote of the
Board present and voting at a meeting called for that purpose;
provided, however, that no action of the Board of Directors in
this respect shall result in the reduction of a benefit which has
accrued as of the date of amendment or termination.
Notwithstanding anything in this Plan to the contrary, the Board
of Directors of the Company may amend in good faith any terms of
this Plan, including retroactively, in order to comply with
Section 409A of the Code.

     2.04 Establishment of Trust.  The Company may elect to
establish a trust for the purpose of holding and investing any
assets contributed by the Company under this Plan. Assets
contributed to the trust shall be held for the exclusive benefit
of the Directors and their beneficiaries subject to the claim of
the Company's creditors to such assets if the Company becomes
insolvent or is subject to bankruptcy proceedings. Directors
shall have no rights against or security interest in the assets
of the trust, which shall at all times remain subject to the
claims of creditors of the Company.

                         ARTICLE III
                   ELIGIBILITY AND VESTING

     3.01 Eligibility.  All members of the Company's Board of
Directors shall participate in the Plan.  All Directors who were
participants in the Prior Plan shall continue to participate in
this amended and restated Plan.

     3.02 Vesting.  Each Director participating in the Plan shall
be one hundred percent (100%) vested in his Annual Retirement
Benefit or Early Retirement Benefit at all times.

                                                      3

                       ARTICLE IV
         RETIREMENT AND CHANGE IN CONTROL BENEFITS

     4.01      Annual Retirement Benefit at Normal Retirement
Date.  If a Director has a Separation from Service on or after
the Normal Retirement Date, the Company shall pay to the Director
an annual retirement benefit in an amount equal to the Director's
annual Compensation as a Director for the Plan Year which
precedes the Plan Year in which the Director incurred such
Separation from Service (the "Annual Retirement Benefit").  The
Annual Retirement Benefit shall be payable in the form of
substantially equal monthly payments, determined by dividing the
Annual Retirement Benefit by twelve (12), beginning with the
first day of the first full calendar month following the
Participant's Retirement Date, and payable for the lifetime of
the Director, subject to Section 4.04 and Article VI of this
Plan.

     4.02      Annual Retirement Benefit at Early Retirement
Date. If a Director has a Separation from Service at an Early
Retirement Date, the Director shall be entitled to an early
retirement benefit equal to his Annual Retirement Benefit,
reduced by one percent (1%) for each year or part of a year that
a Director's Early Retirement Date precedes the Normal Retirement
Date (the "Early Retirement Benefit"). The Early Retirement
Benefit shall be payable in the form of substantially equal
monthly payments, determined by dividing the Early Retirement
Benefit by twelve (12), beginning with the first day of the first
full calendar month following the Director's attainment of age
sixty-five (65), and payable for the lifetime of the Director,
subject to Section 4.04 and Article VI of this Plan.

     4.03 Continuation Beyond Normal Retirement Date. A Director
may continue to provide services to the Company beyond the
Director's Normal Retirement Date. In the event that a Director
continues service to the Company beyond the Normal Retirement
Date, the Director's Normal Retirement Benefit shall be
determined in the same manner as provided in this Article IV.

    4.04 Six-Month Delay.  If a Director is a Specified Employee
at the time he has a Separation from Service, then the monthly
payments specified in Sections 4.01 and 4.02 above shall not
commence until the first day of the month following the lapse of
six months after such Separation from Service, and the first
payment to be made to a Director after the lapse of the six-month
period shall include the payments that otherwise would have been
made during the six month period.

     4.05 Change in Control Benefit.  Upon the occurrence of a
Change in Control, the Company will pay to each Director
(including a Director that is currently receiving benefits under
the Plan) a single lump sum amount equal to the present value of
the lifetime payments (a) that would otherwise be made to each
current Director determined as if such Director incurred a
Separation from Service on the date of a Change in Control, or
(b) remaining to be paid to any Director who is then receiving
benefits under the Plan.  Payment of the benefits under this
Section 4.05 shall be made within five (5) business days
following the Change in Control and determined by using the
actuarial assumptions used

                                                      4

by the Company to determine the annual financial accruals on behalf
of the Plan and a discount rate as specified under Section 1274(d)
of the Code.

                          ARTICLE V
                      DISABILITY BENEFIT

     5.01 Total and Permanent Disability.  A Director who becomes
Totally and Permanently Disabled, but who has not yet reached his
Normal Retirement Date, is entitled to an Early Retirement
Benefit as determined under Section 4.02.

     5.02  Payment of Disability Benefit.  Subject to Article VI
of this Plan relating to minimum number of payments, a Director
who is eligible for retirement benefits due to a Total and
Permanent Disability shall receive such benefits payable for
life, with the first payment beginning with the first day of the
month following the month in which the Director is determined to
be Totally and Permanently Disabled.

     5.03      Evidence of Disability. The Board of Directors of
the Company shall determine, based on such medical information as
the Board may consider appropriate to review, whether or not a
Director has become Totally and Permanently Disabled.

                         ARTICLE VI
                       DEATH BENEFIT

     6.01  Surviving Spouse. The surviving spouse of a (a)
Director who was Totally and Permanently Disabled, (b) Director
who had attained Normal Retirement Date, or (c) Director who
elected early retirement shall be eligible upon attaining age
sixty-five (65), to receive the same monthly retirement benefit
that such Director was receiving prior to the Director's death.
The surviving spouse of a Director who dies prior to reaching
Normal Retirement Date shall be eligible upon attaining age 65 to
receive the same monthly retirement benefit that the Director
would have been entitled to receive pursuant to Section 4.01
determined as if the Director had attained his Normal Retirement
Date as of the Director's date of death. The monthly retirement
benefit shall commence in the month in which the surviving spouse
attains 65 years of age and shall be paid for the lifetime of the
surviving spouse.

     6.02      Minimum Payments. The minimum number of monthly
retirement benefit payments payable to a Director and the
Director's surviving spouse shall be one hundred twenty (120)
monthly payments. In the event that the number of monthly
retirement benefit payments received by a Director and the
surviving spouse of the Director is less than one hundred twenty
(120) at the date of death of the surviving spouse or Director,
the remainder of the monthly retirement benefit payments to be
made by the Company pursuant to this Plan shall be paid to the
issue of the Director and the Director's spouse, per stirpes, or
in default of such issue, to the estate of the spouse.

     6.03 Death Benefit for Non-Spouse Beneficiary.  If a
Director dies after Normal Retirement Date or dies while Totally
and Permanently Disabled and such Director is not

                                                      5

survived by a spouse and has received less than one hundred eighty
(180) monthly retirement payments, the remainder of the monthly
payments to be made by the Company shall be paid to the
Beneficiary or beneficiaries designated by the Director. If a
Beneficiary is not designated or if the Beneficiary dies prior to
receiving the remaining number of monthly retirement benefit
payments, the remaining payments shall be made to the estate of
the Director.

                 ARTICLE VII - BENEFICIARIES
                 ___________________________

     7.01 Beneficiary Designations.  A Director shall designate a
Beneficiary by filing a written designation with the Company.  A
Director may revoke or modify his or her Beneficiary designation
at any time by filing a new designation.  However, designations
will only be effective if signed by the Director and received by
the Company during the Director's lifetime.  The Director's
Beneficiary designation shall be deemed automatically revoked if
the Beneficiary predeceases the Director, or if the Director
names a spouse as Beneficiary and the marriage is subsequently
dissolved.  If the Director dies without a valid Beneficiary
designation, all payments shall be made to the Director's estate.

     7.02 Facility of Payment.  If a benefit is payable to a
minor, to a person declared incompetent, or to a person incapable
of handling the disposition of his or her property, the Company
may pay such benefit to the guardian, legal representative or
person having the care or custody of such minor, incompetent
person or incapable person.  The Company may require proof of
incompetence, minority or guardianship as it may deem appropriate
prior to the distribution of the benefit.  Such distribution
shall completely discharge the Company from all liability with
respect to such benefit.

    ARTICLE VIII - PLAN ADMINISTRATION; CLAIMS PROCEDURE
    ____________________________________________________

     8.01 Plan Administration.   This Plan and all matters
relating hereto shall be administered by the Board of Directors
of the Company.  The Board of Directors of the Company will
interpret the provisions of this Plan and shall determine all
questions arising in the administration, eligibility,
interpretation and application of this Plan.  Any such
determination by the Board of Directors of the Company shall be
conclusive and binding on all persons and shall be consistently
and uniformly applied to all persons similarly situated.  The
Board of Directors of the Company shall engage the services of
such independent actuaries and administrative personnel as it
deems appropriate to administer the Plan.

     8.02 Scope of Claims Procedures.  These claims procedures
are based on final regulations issued by the Department of Labor
and published in the Federal Register and codified at 29 C.F.R.
Section 2560.503-1.  If any provision in these claims procedures
conflicts with the requirements of those regulations, the
requirements of those regulations will prevail.

     8.03 Initial Claim.  Any Participant or Beneficiary who
believes he or she is entitled to any benefit under the Plan (a
"Claimant") may file a claim with the Board of Directors of the
Company.  The Board of Directors of the Company shall review the
claim itself or appoint an

                                                      6

individual or an entity to review the claim.  All references to the Board
of Directors of the Company in this Article VIII shall include any such
appointee.

     (a)  Initial Decision.  The Claimant shall be notified within
          ninety (90) days after the claim is filed whether the claim is
          allowed or denied, unless the Claimant receives written notice
          from the Board of Directors of the Company prior to the end of
          the ninety (90) day period stating that special circumstances
          require an extension of the time for decision, with such
          extension not to extend beyond the day which is one hundred
          eighty (180) days after the day the claim is filed.

     (b)  Manner and Content of Denial of Initial Claims.  If the
          Board of Directors of the Company denies a claim, it must provide
          to the Claimant, in writing or by electronic communication:

          (i)   The specific reasons for the denial;

          (ii)  A reference to the provision of the Plan upon which the
                denial is based;

          (iii) A description of any additional information or material
                that the Claimant must provide in order to perfect the claim;

          (iv)  An explanation of why such additional material or
                information is necessary;

          (v)   Notice that the Claimant has a right to request a review of
                the claim denial and information on the steps to be taken if
                the Claimant wishes to request a review of the claim denial;
                and

          (vi)  A statement of the Claimant's right to bring a civil action
                under Section 502(a) of ERISA, following a denial on review
                of the initial denial.

     8.04 Review Procedures.

     (a)  Request For Review.  A request for review of a denied claim
          must be made in writing to the Board of Directors of the Company
          within sixty (60) days after receiving notice of denial.  The
          decision upon review will be made within sixty (60) days after
          the Board of Directors of the Company's receipt of a request for
          review, unless special circumstances require an extension of time
          for processing, in which case a decision will be rendered not
          later than one hundred twenty (120) days after receipt of a
          request for review.  A notice of such an extension must be
          provided to the Claimant within the initial sixty (60) day period
          and must explain the special circumstances and provide an
          expected date of decision.

          The reviewer shall afford the Claimant an opportunity
          to review and receive, without charge, all relevant
          documents, information and records and to submit issues
          and comments in writing to the Board of Directors of
          the Company.  The

                                                                7

          reviewer shall take into account all comments, documents,
          records and other information submitted by the Claimant
          relating to the claim regardless of whether the information
          was submitted or considered in the initial benefit determination.

     (b)  Manner and Content of Notice of Decision on Review.  Upon
          completion of its review of an adverse claim determination, the
          Board of Directors of the Company will give the Claimant, in
          writing or by electronic notification, a notice containing:

          (i)   its decision;

          (ii)  the specific reasons for the decision;

          (iii) the relevant provisions of this Plan on which its
                decision is based;

          (iv)  a statement that the Claimant is entitled to receive, upon
                request and without charge, reasonable access to, and copies
                of, all documents, records and other information in the
                Bank's files which is relevant to the Claimant's claim for
                benefits;

          (v)   a statement describing the Claimant's right to bring an
                action for judicial review under Section 502(a) of ERISA; and

          (vi)  if an internal rule, guideline, protocol or other similar
                criterion was relied upon in making the adverse determination
                on review, a statement that a copy of the rule, guideline,
                protocol or other similar criterion will be provided without
                charge to the Claimant upon request.

     8.05 Calculation of Time Periods.  For purposes of the time
periods specified in this Article, the period of time during
which a benefit determination is required to be made begins at
the time a claim is filed in accordance with the procedures of
this Plan without regard to whether all the information necessary
to make a decision accompanies the claim.  If a period of time is
extended due to a Claimant's failure to submit all information
necessary, the period for making the determination shall be
tolled from the date the notification is sent to the Claimant
until the date the Claimant responds.

     8.06 Legal Action.  If the Board of Directors of the Company
fails to follow the claims procedures required by this Article, a
Claimant shall be deemed to have exhausted the administrative
remedies available under this Plan and shall be entitled to
pursue any available remedy under Section 502(a) of ERISA on the
basis that the Plan has failed to provide a reasonable claims
procedure that would yield a decision on the merits of the claim.
A Claimant's compliance with the foregoing provisions of this
Article is a mandatory requisite to a Claimant's right to
commence any legal action with respect to any claims for benefits
under the Plan.

                                                       8

     8.07 Review by the Board of Directors of the Company.
Notwithstanding anything in this Plan to the contrary, the Board
of Directors of the Company may determine, in its sole and
absolute discretion, to review any claim for benefits submitted
by a Claimant under this Plan.

                         ARTICLE IX
                        MISCELLANEOUS

     9.01 Termination of Plan

          (a)  General.  A termination of the Plan shall not
directly or indirectly reduce the vested portion of any account
held hereunder as of the effective date of such termination.  A
termination of the Plan will not be a distributable event, except
in the three circumstances set forth in Section 9.01(b) below.

          (b)  Termination.  Under no circumstances may the Plan
permit the acceleration of the time or form of any payment under
the Plan prior to the payment events specified herein, except as
provided in this Section 9.01(b).  The Company may, in its
discretion, elect to terminate the Plan in any of the following
three circumstances and accelerate the payment of the entire
unpaid balance of the Director's vested benefits as of the date
of such payment in accordance with Section 409A of the Code:

          (i)    the Plan is irrevocably terminated within 30 days
                 preceding a Change in Control of the Company and
                 (1) all arrangements sponsored by Peoples Community
                 Bank (the "Bank") and/or the Company that would be
                 aggregated with the Plan under Treasury Regulation
                 Section 1.409A-1(c)(2) are terminated, and (2) the
                 Director and all participants under the other
                 aggregated arrangements receive all of their
                 benefits under the terminated arrangements within
                 12 months of the date of termination of the
                 arrangements,

          (ii)   the Plan is terminated at a time that is not
                 proximate to a downturn in the financial health
                 of the Bank and/or the Company and (1) all
                 arrangements sponsored by the Bank and/or the
                 Company that would be aggregated with the Plan
                 under Treasury Regulation Section 1.409A-1(c)(2)
                 if a Director had deferrals of compensation under
                 such arrangements are terminated, (2) no payments
                 other than amounts that would be payable under the
                 terms of the arrangements if the termination had
                 not occurred are made within 12 months of the
                 termination of the arrangements; (3) all payments
                 are made within 24 months of the date the Bank
                 and/or the Company take all necessary action to
                 irrevocably terminate the arrangement; and (4)
                 neither the Bank nor the Company adopts a new
                 arrangement that would be aggregated with the Plan
                 or any terminated arrangement under Treasury
                 Regulation Section 1.409A-1(c)(2) if a Participant
                 participated in both arrangements, at any time
                 within three years following the date the Bank
                 and/or the Company take all necessary action
                 to irrevocably terminate the Plan or aggregated
                 arrangement, or

                                                       9

          (iii)  the Plan is terminated within 12 months of a
                 corporate dissolution taxed under Section 331 of
                 the Code, or with the approval of a bankruptcy
                 court pursuant to 11 U.S.C. Section 503(b)(1)(A),
                 provided that the amounts deferred by each
                 Director under the Plan are included in the
                 Participant's gross income in the later of (1) the
                 calendar year in which the termination of the Plan
                 occurs, (2) the first calendar year in which the
                 amount is no longer subject to a substantial risk
                 of forfeiture, or (3) the first calendar year in
                 which the payment is administratively practicable.

     9.02      Governing Law. The laws of the State of Ohio shall
govern the interpretation, construction and enforcement of the
provisions of this Plan, except to the extent that federal law is
applicable.

     9.03      Administration. The administration of this Plan
shall be vested in the Board of Directors of the Company. The
Board of Directors of the Company may delegate its duties as the
Board of Directors of the Company deems necessary or appropriate.

     9.04      Notices.  Any notices required by law or permitted
to be given regarding this Plan must be in writing and delivered
either by personal hand delivery or by first class, postage
prepaid United States mail, to the Company's office if to the
Company or to the last known address of the recipient if the
notice is other than to the Company.

     9.05      Headings. Headings contained in this Plan are
inserted for convenience and reference only and do not constitute
a part of this Plan.

     9.06      Reorganization.  The Company shall not merge or
consolidate into or with another company, or reorganize, or sell
substantially all of its assets to another company, firm, or
person unless such succeeding or continuing company, firm or
person agrees to assume and discharge the obligations of the
Company under this Plan.  Upon the occurrence of such event, the
term "Company" as used in this Plan shall be deemed to refer to
the successor or survivor company.

     9.07      Tax Withholding.  The Company shall withhold any taxes
that are required to be withheld from the benefits provided under
this Plan.

                                                       10

     IN WITNESS WHEREOF, and pursuant to a resolution of the
Board of Directors of the Company, the Company has caused this
Amended and Restated Plan to be executed by its duly authorized
officer effective as of June 22, 2007.

                             PEOPLES COMMUNITY BANCORP,
                             INC.

                             By: /s/Jerry D. Williams
                                 _________________________________
                                 Jerry D. Williams, President and
                                 Chief Executive Officer

                                                             11WWW.EXFILE.COM, INC. -- 15232 -- BRIDGELINE SOFTWARE, INC. -- EXHIBIT 10.65 TO FORM SB-2/A

    
EXHIBIT
      10.65

    
 

    WARRANT
      TO PURCHASE COMMON STOCK

    OF

    BRIDGELINE
      SOFTWARE, INC.

    

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

    

    This
      is
      to Certify That, FOR VALUE RECEIVED, ____________, or assigns
      (“Holder”), is entitled to purchase, subject to the provisions of this Warrant,
      from Bridgeline Software, Inc., a Delaware corporation (the “Company”), ______
      fully paid, validly issued and nonassessable shares of common stock, par value
      $.001 per share, of the Company (“Common Stock”) at a price per share equal to
      $____ (or 150% of the initial public offering price per share) (the “Initial
      Exercise Price”), which exercise may take place at any time or from time to
      time, from and after __, 2007 (the “Initial Exercise Date”) to and including __,
      2012 (the “Expiration Date”), and subject to the following terms and conditions
      (the “Exercise Period”).  The Initial Exercise Price is subject to
      adjustment as set forth herein. The number of shares of Common Stock to be
      received upon the exercise of this Warrant and the price to be paid for each
      share of Common Stock may be adjusted from time to time as hereinafter set
      forth.  The shares of Common Stock deliverable upon such exercise, and
      as adjusted from time to time, are hereinafter sometimes referred to as “Warrant
      Shares” and the exercise price of a share of Common Stock in effect at any time
      and as adjusted from time to time is hereinafter sometimes referred to as the
      “Exercise Price”.

    

    (a)           EXERCISE
      OF WARRANT; CANCELLATION OF WARRANT.

    

    (1)           This
      Warrant may be exercised in whole or in part at any time or from time to time
      during the Exercise Period; provided, however, that (i) if either such day
      is a day on which banking institutions in the State of New York are authorized
      by law to close, then on the next succeeding day which shall not be such a
      day,
      and (ii) in the event of any merger, consolidation or sale of substantially
      all the assets of the Company as an entirety, which is anticipated to result
      in
      any distribution to the Company’s stockholders, the Holder shall have the right
      to exercise this Warrant in conjunction with such transaction, into the kind
      and
      amount of shares of stock and other securities and property (including cash)
      receivable by a holder of the number of shares of Common Stock into which this
      Warrant might have been exercisable immediately prior thereto.  This
      Warrant may be exercised by presentation and surrender hereof to the Company
      at
      its principal office with the Purchase Form annexed hereto duly executed and
      accompanied by payment of the Exercise Price for the number of Warrant Shares
      specified in such form.  As soon as practicable after each such
      exercise of the Warrants, but not later than three (3) business days following
      the receipt of good and available funds, the Company shall issue and deliver
      to
      the Holder a certificate or certificate for the Warrant Shares issuable upon
      such exercise, registered in the name of the Holder or its
      designee.  If this Warrant should be exercised in part only, the
      Company shall, upon surrender of this Warrant for cancellation, execute and
      deliver a new Warrant evidencing the rights of the Holder thereof to purchase
      the balance of the Warrant Shares purchasable thereunder.  Upon
      receipt by the Company of this Warrant at its office in proper form for exercise
      accompanied by payment of the Exercise Price for the number of Warrant Shares
      specified in such form, the Holder shall be deemed to be the holder of record
      of
      the shares of Common Stock issuable upon such exercise, notwithstanding

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    that
      the
      stock transfer books of the Company shall then be closed or that certificates
      representing such shares of Common Stock shall not then be physically delivered
      to the Holder.

    

    (2)           At
      any time during the Exercise Period, the Holder may, at its option, exercise
      this Warrant on a cashless basis by exchanging this Warrant, in whole or in
      part
      (a "Warrant Exchange"), into the number of Warrant Shares determined in
      accordance with this Section (a)(2), by surrendering this Warrant at the
      principal office of the Company or at the office of its stock transfer agent,
      accompanied by a notice stating such Holder's intent to effect such exchange,
      the number of Warrant Shares to be exchanged and the date on which the Holder
      requests that such Warrant Exchange occur (the "Notice of
      Exchange").  The Warrant Exchange shall take place on the date
      specified in the Notice of Exchange or, if later, the date the Notice of
      Exchange is received by the Company (the "Exchange
      Date").  Certificates for the shares issuable upon such Warrant
      Exchange and, if applicable, a new warrant of like tenor evidencing the balance
      of the shares remaining subject to this Warrant, shall be issued as of the
      Exchange Date and delivered to the Holder within seven (7) days following the
      Exchange Date.  In connection with any Warrant Exchange, this Warrant
      shall represent the right to subscribe for and acquire the number of Warrant
      Shares equal to (i) the number of Warrant Shares specified by the Holder in
      its Notice of Exchange (the "Total Number") less (ii) the number of Warrant
      Shares equal to the quotient obtained by dividing (A) the product of the
      Total Number and the existing Exercise Price by (B) the current market
      value of a share of Common Stock.  Current market value shall have the
      meaning set forth Section (c) below, except that for purposes hereof, the
      date of exercise, as used in such Section (c), shall mean the Exchange
      Date.

    

    (b)           RESERVATION
      OF SHARES.  The Company shall at all times reserve for issuance and/or
      delivery upon exercise of this Warrant such number of shares of its Common
      Stock
      as shall be required for issuance and delivery upon exercise of the
      Warrants.

    

    (c)           FRACTIONAL
      SHARES.  No fractional shares or script representing fractional shares
      shall be issued upon the exercise of this Warrant.  With respect to
      any fraction of a share called for upon any exercise hereof, the Company shall
      pay to the Holder an amount in cash equal to such fraction multiplied by the
      current market value of a share, determined as follows:

    

    (1)           If
      the Common Stock is listed on a national securities exchange or admitted to
      unlisted trading privileges on such exchange or listed for trading on the Nasdaq
      National Market, the current market value shall be the last reported sale price
      of the Common Stock on such exchange or market on the last business day prior
      to
      the date of exercise of this Warrant or if no such sale is made on such day,
      the
      average of the closing bid and asked prices for such day on such exchange or
      market; or

    

    (2)           If
      the Common Stock is not so listed or admitted to unlisted trading privileges,
      but is traded on the Nasdaq Capital Market, the current market value shall
      be
      the average of the closing bid and asked prices for such day on such market
      and
      if the Common Stock is not so traded, the current market value shall be the
      mean
      of the last reported bid and asked prices reported by the NASD Electronic
      Bulletin Board on the last business day prior to the date of the exercise of
      this Warrant; or

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (3)           If
      the Common Stock is not so listed or admitted to unlisted trading privileges
      and
      bid and asked prices are not so reported, the current market value shall be
      an
      amount, not less than book value thereof as at the end of the most recent fiscal
      year of the Company ending prior to the date of the exercise of the Warrant,
      determined in such reasonable manner as may be prescribed by the Board of
      Directors of the Company.

    

    (d)           EXCHANGE,
      TRANSFER, ASSIGNMENT OR LOSS OF WARRANT.  This Warrant is
      exchangeable, without expense, at the option of the Holder, upon presentation
      and surrender hereof to the Company or at the office of its stock transfer
      agent, if any, for other warrants of different denominations entitling the
      holder thereof to purchase in the aggregate the same number of shares of Common
      Stock purchasable hereunder. Upon surrender of this Warrant to the Company
      at
      its principal office or at the office of its stock transfer agent, if any,
      with
      the Assignment Form annexed hereto duly executed and funds sufficient to pay
      any
      transfer tax, the Company shall, without charge, execute and deliver a new
      Warrant in the name of the assignee named in such instrument of assignment
      and
      this Warrant shall promptly be cancelled.  This Warrant may be divided
      or combined with other warrants which carry the same rights upon presentation
      hereof at the principal office of the Company or at the office of its stock
      transfer agent, if any, together with a written notice specifying the names
      and
      denominations in which new Warrants are to be issued and signed by the Holder
      hereof.  The term “Warrant” as used herein includes any Warrants into
      which this Warrant may be divided or exchanged.  Upon receipt by the
      Company of evidence satisfactory to it of the loss, theft, destruction or
      mutilation of this Warrant, and (in the case of loss, theft or destruction)
      of
      reasonably satisfactory indemnification, and upon surrender and cancellation
      of
      this Warrant, if mutilated, the Company will execute and deliver a new Warrant
      of like tenor and date.  Any such new Warrant executed and delivered
      shall constitute an additional contractual obligation on the part of the
      Company, whether or not this Warrant so lost, stolen, destroyed, or mutilated
      shall be at any time enforceable by anyone.

    

    The
      Holder of this Warrant, by its acceptance hereof, agrees that, pursuant to
      Rule
      2710(g)(1) of the NASD Conduct Rules, for a period commencing on the date hereof
      and ending one hundred eighty (180) days after the effective date of the
      Registration Statement, it will not sell, transfer, assign, pledge or
      hypothecate, or be subject of any hedging, short sale, derivative, put, or
      call
      transaction that would result in the effective economic disposition of the
      securities by any person for a period of 180 days immediately following the
      date
      of effectiveness or commencement of sales of the initial public offering to
      anyone other than (i) an underwriter or a selected dealer in connection with
      the
      Company’s initial public offering with respect to which this Warrant has been
      issued, or (ii) a bona fide officer or partner of any of the
      foregoing.

    

    (e)           RIGHTS
      OF THE HOLDER.  The Holder shall not, by virtue hereof, be entitled to
      any rights of a shareholder in the Company, either at law or equity, and the
      rights of the Holder are limited to those expressed in the Warrant and are
      not
      enforceable against the Company except to the extent set forth
      herein.

    

    (f)           ANTI-DILUTION
      PROVISIONS.  Subject to the provisions of Section l hereof, the
      Exercise Price in effect at any time and the number and kind of securities
      purchasable upon 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    the
      exercise of the Warrants shall be subject to adjustment from time to time upon
      the happening of certain events as follows:

    

    (1)           In
      case the Company shall hereafter (i) declare a dividend or make a
      distribution on its outstanding shares of Common Stock in shares of Common
      Stock, (ii) subdivide or reclassify its outstanding shares of Common Stock
      into a greater number of shares, or (iii) combine or reclassify its
      outstanding shares of Common Stock into a smaller number of shares, the Exercise
      Price in effect at the time of the record date for such dividend or distribution
      or of the effective date of such subdivision, combination or reclassification
      shall be adjusted so that it shall equal the price determined by multiplying
      the
      Exercise Price by a fraction, the denominator of which shall be the number
      of
      shares of Common Stock outstanding after giving effect to such action, and
      the
      numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to such action with an appropriate adjustment in the number
      of
      shares purchasable hereunder. Such adjustment shall be made successively
      whenever any event listed above shall occur.

    

    (2)           Subject
      to the provisions of Subsection (6) below, in case the Company shall fix a
      record date for the issuance of rights or warrants to all holders of its Common
      Stock entitling them to subscribe for or purchase shares of Common Stock (or
      securities convertible into Common Stock) at a price (the "Subscription Price")
      (or having a conversion price per share) less than the current market price
      of
      the Common Stock (as defined in Subsection (8) below) on the record date
      mentioned below, or less than the Exercise Price on such record date, the
      Exercise Price shall be adjusted so that the same shall equal the lower of
      (i) the price determined by multiplying the Exercise Price in effect
      immediately prior to the date of such issuance by a fraction, the numerator
      of
      which shall be the sum of the number of shares of Common Stock outstanding
      on
      the record date mentioned below and the number of additional shares of Common
      Stock which the aggregate offering price of the total number of shares of Common
      Stock so offered (or the aggregate conversion price of the convertible
      securities so offered) would purchase at such current market price per share
      of
      the Common Stock (as defined in Subsection (8) below), and the denominator
      of which shall be the sum of the number of shares of Common Stock outstanding
      on
      such record date and the number of additional shares of Common Stock offered
      for
      subscription or purchase (or into which the convertible securities so offered
      are convertible) or (ii) in the event the Subscription Price is equal to or
      higher than the current market price but is less than the Exercise Price, the
      price determined by multiplying the Exercise Price in effect immediately prior
      to the date of issuance by a fraction, the numerator of which shall be the
      sum
      of the number of shares outstanding on the record date mentioned below and
      the
      number of additional shares of Common Stock which the aggregate offering price
      of the total number of shares of Common Stock so offered (or the aggregate
      conversion price of the convertible securities so offered) would purchase at
      the
      Exercise Price in effect immediately prior to the date of such issuance, and
      the
      denominator of which shall be the sum of the number of shares of Common Stock
      outstanding on the record date mentioned below and the number of additional
      shares of Common Stock offered for subscription or purchase (or into which
      the
      convertible securities so offered are convertible).  Such adjustment
      shall be made successively whenever such rights or warrants are issued and
      shall
      become effective immediately after the record date for the determination of
      shareholders entitled to receive such rights or warrants; and to the extent
      that
      shares of Common Stock are not delivered (or securities convertible into

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Common
      Stock are not delivered) after the expiration of such rights or warrants the
      Exercise Price shall be readjusted to the Exercise Price which would then be
      in
      effect had the adjustments made upon the issuance of such rights or warrants
      been made upon the basis of delivery of only the number of shares of Common
      Stock (or securities convertible into Common Stock) actually
      delivered.

    

    (3)           In
      case the Company shall hereafter distribute to the holders of its Common Stock
      evidences of its indebtedness or assets (excluding cash dividends or
      distributions and dividends or distributions referred to in Subsection (1)
      above) or subscription rights or warrants (excluding those referred to in
      Subsection (2) above), then in each such case the Exercise Price in effect
      thereafter shall be determined by multiplying the Exercise Price in effect
      immediately prior thereto by a fraction, the numerator of which shall be the
      total number of shares of Common Stock outstanding multiplied by the current
      market price per share of Common Stock (as defined in Subsection (8)
      below), less the fair market value (as determined by the Company's Board of
      Directors) of said assets or evidences of indebtedness so distributed or of
      such
      rights or warrants, and the denominator of which shall be the total number
      of
      shares of Common Stock outstanding multiplied by such current market price
      per
      share of Common Stock.  Such adjustment shall be made successively
      whenever such a record date is fixed.  Such adjustment shall be made
      whenever any such distribution is made and shall become effective immediately
      after the record date for the determination of shareholders entitled to receive
      such distribution.

    

    (4)           Subject
      to the provisions of Subsection (6) below, in case the Company shall hereafter
      issue shares of its Common Stock (excluding shares issued (a) in any of the
      transactions described in Subsection (1) above, (b) upon exercise of options
      granted to the Company's officers, directors, consultants and employees under
      its current stock option which provides for the issuance of up to 1,400,000
      shares of Common Stock (subject to appropriate adjustment in the event of any
      stock dividend, stock split, combination or other similar recapitalization
      affecting such shares), if such shares would otherwise be included in this
      Subsection (4), (c) upon exercise of options, warrants and convertible
      debentures outstanding as of the date hereof or upon the issuance or exercise
      of
      warrants or convertible debentures issued pursuant to the offering set forth
      in
      the Memorandum, (d) to shareholders of any corporation which merges into
      the Company in proportion to their stock holdings of such corporation
      immediately prior to such merger, upon such merger, (e) issued in a bona fide
      public offering pursuant to a firm commitment underwriting, but only if no
      adjustment is required pursuant to any other specific subsection of this
      Section (f) (without regard to Subsection (8) below) with respect to
      the transaction giving rise to such rights) for a consideration per share (the
      "Offering Price")  less than the current market price per share (as
      defined in Subsection (8) below on the date the Company fixes the offering
      price of such additional shares or less than the Exercise Price, the Exercise
      Price shall be adjusted immediately thereafter so that it shall equal the lower
      of (i) the price determined by multiplying the Exercise Price in effect
      immediately prior thereto by a fraction, the numerator of which shall be the
      sum
      of the number of shares of Common Stock outstanding immediately prior to the
      issuance of such additional shares and the number of shares of Common Stock
      which the aggregate consideration received (determined as provided in
      Subsection (7) below) for the issuance of such additional shares would
      purchase at such current market price per share of Common Stock (as defined
      in
      Subsection (8) below), and the 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    denominator
      of which shall be the number of shares of Common Stock outstanding immediately
      after the issuance of such additional shares or (ii) in the event the
      Offering Price is equal to or higher than the current market price per share
      but
      less than the Exercise Price, the price determined by multiplying the Exercise
      Price in effect immediately prior to the date of issuance by a fraction, the
      numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to the issuance of such additional shares and the number
      of
      shares of Common Stock which the aggregate consideration received (determined
      as
      provided in subsection (7) below) for the issuance of such additional
      shares would purchase at the Exercise Price in effect immediately prior to
      the
      date of such issuance, and the denominator of which shall be the number of
      shares of Common Stock outstanding immediately after the issuance of such
      additional shares. Such adjustment shall be made successively whenever such
      an
      issuance is made.

    

    (5)           Subject
      to the provisions of Subsection (6) below, in case the Company shall hereafter
      issue any securities convertible into or exchangeable for its Common Stock
      (excluding securities issued in transactions described in Subsections (2)
      and (3) above) for a consideration per share of Common Stock (the "Conversion
      Price") initially deliverable upon conversion or exchange of such securities
      (determined as provided in Subsection (7) below)  less than the
      current market price per share (as defined in Subsection (8) below) in
      effect immediately prior to the issuance of such securities, or less than the
      Exercise Price, the Exercise Price shall be adjusted immediately thereafter
      so
      that it shall equal the lower of (i) the price determined by multiplying
      the Exercise Price in effect immediately prior thereto by a fraction, the
      numerator of which shall be the sum of the number of shares of Common Stock
      outstanding immediately prior to the issuance of such securities and the number
      of shares of Common Stock which the aggregate consideration received (determined
      as provided in Subsection (7) below) for such securities would purchase at
      such current market price per share of Common Stock (as defined in
      Subsection (8) below), and the denominator of which shall be the sum of the
      number of shares of Common Stock outstanding immediately prior to such issuance
      and the maximum number of shares of Common Stock of the Company deliverable
      upon
      conversion of or in exchange for such securities at the initial conversion
      or
      exchange price or rate or (ii) in the event the Conversion Price is equal
      to or higher than the current market price per share but less than the Exercise
      Price, the price determined by multiplying the Exercise Price in effect
      immediately prior to the date of issuance by a fraction, the numerator of which
      shall be the sum of the number of shares outstanding immediately prior to the
      issuance of such securities and the number of shares of Common Stock which
      the
      aggregate consideration received (determined as provided in subsection (7)
      below) for such securities would purchase at the Exercise Price in effect
      immediately prior to the date of such issuance, and the denominator of which
      shall be the sum of the number of shares of Common Stock outstanding immediately
      prior to the issuance of such securities and the maximum number of shares of
      Common Stock of the Company deliverable upon conversion of or in exchange for
      such securities at the initial conversion or exchange price or
      rate.  Such adjustment shall be made successively whenever such an
      issuance is made.

    

    (6)           Whenever
      the Exercise Price payable upon exercise of each Warrant is adjusted pursuant
      to
      Subsections (1), (2), (3), (4) and (5) above, the number of Shares
      purchasable upon exercise of this Warrant shall simultaneously be adjusted
      by
      multiplying the 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    number
      of
      Shares initially issuable upon exercise of this Warrant by the Exercise Price
      in
      effect on the date hereof and dividing the product so obtained by the Exercise
      Price, as adjusted.

    

    (7)           For
      purposes of any computation respecting consideration received pursuant to
      Subsections (4) and (5) above, the following shall apply:

    

    (A)           in
      the case of the issuance of shares of Common Stock for cash, the consideration
      shall be the amount of such cash, provided that in no case shall any deduction
      be made for any commissions, discounts or other expenses incurred by the Company
      for any underwriting of the issue or otherwise in connection
      therewith;

    

    (B)           in
      the case of the issuance of shares of Common Stock for a consideration in whole
      or in part other than cash, the consideration other than cash shall be deemed
      to
      be the fair market value thereof as determined in good faith by the Board of
      Directors of the Company (irrespective of the accounting treatment thereof),
      whose determination shall be conclusive; and

    

    (C)           in
      the case of the issuance of securities convertible into or exchangeable for
      shares of Common Stock, the aggregate consideration received therefor shall
      be
      deemed to be the consideration received by the Company for the issuance of
      such
      securities plus the additional minimum consideration, if any, to be received
      by
      the Company upon the conversion or exchange thereof (the consideration in each
      case to be determined in the same manner as provided in clauses (A) and (B)
      of this Subsection (7)).

    

    (8)           For
      the purpose of any computation under Subsections (2), (3), (4) and (5)
      above, the current market price per share of Common Stock at any date shall
      be
      determined in the manner set forth in Section (c) hereof except that the current
      market price per share shall be deemed to be the higher of (i) the average
      of the prices for 30 consecutive business days before such date or (ii) the
      price on the business day immediately preceding such date.

    

    (9)           No
      adjustment in the Exercise Price shall be required unless such adjustment would
      require an increase or decrease of at least five cents ($0.05) in such price;
      provided, however, that any adjustments which by reason of this
      Subsection (9) are not required to be made shall be carried forward and
      taken into account in any subsequent adjustment required to be made hereunder.
      All calculations under this Section (f) shall be made to the nearest cent
      or to the nearest one-hundredth of a share, as the case may
      be.  Anything in this Section (f) to the contrary
      notwithstanding, the Company shall be entitled, but shall not be required,
      to
      make such changes in the Exercise Price, in addition to those required by this
      Section (f), as it shall determine, in its sole discretion, to be advisable
      in order that any dividend or distribution in shares of Common Stock, or any
      subdivision, reclassification or combination of Common Stock, hereafter made
      by
      the Company shall not result in any Federal Income tax liability to the holders
      of Common Stock or securities convertible into Common Stock (including
      Warrants).

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (10)           Whenever
      the Exercise Price is adjusted, as herein provided, the Company shall promptly
      but no later than 10 days after any request for such an adjustment by the
      Holder, cause a notice setting forth the adjusted Exercise Price and adjusted
      number of Shares issuable upon exercise of each Warrant, and, if requested,
      information describing the transactions giving rise to such adjustments, to
      be
      mailed to the Holders at their last addresses appearing in the Warrant Register,
      and shall cause a certified copy thereof to be mailed to its transfer agent,
      if
      any.  In the event the Company does not provide the Holder with such
      notice and information within 10 days of a request by the Holder, the failure
      of
      which causes the Holder material damage, then notwithstanding the provisions
      of
      this Section (f), the Exercise Price shall be immediately adjusted to equal
      the lowest Offering Price, Subscription Price or Conversion Price, as
      applicable, since the date of this Warrant, and the number of shares issuable
      upon exercise of this Warrant shall be adjusted accordingly.  The
      Company may retain a firm of independent certified public accountants selected
      by the Board of Directors (who may be the regular accountants employed by the
      Company) to make any computation required by this Section (f), and a
      certificate signed by such firm shall be conclusive evidence of the correctness
      of such adjustment.

    

    (11)           In
      the event that at any time, as a result of an adjustment made pursuant to
      Subsection (1) above, the Holder of this Warrant thereafter shall become
      entitled to receive any shares of the Company, other than Common Stock,
      thereafter the number of such other shares so receivable upon exercise of this
      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 Subsections (1) to (10), inclusive
      above.

    

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

    

    (g)           OFFICER'S
      CERTIFICATE.  Whenever the Exercise Price shall be adjusted as
      required by the provisions of the foregoing Section, the Company shall forthwith
      file in the custody of its Secretary or an Assistant Secretary at its principal
      office and with its stock transfer agent, if any, an officer's certificate
      showing the adjusted Exercise Price determined as herein provided, setting
      forth
      in reasonable detail the facts requiring such adjustment, including a statement
      of the number of additional shares of Common Stock, if any, and such other
      facts
      as shall be necessary to show the reason for and the manner of computing such
      adjustment.  Each such officer's certificate shall be made available
      at all reasonable times for inspection by the holder or any holder of a Warrant
      executed and delivered pursuant to Section (a) and the Company shall,
      forthwith after each such adjustment, mail a copy by certified mail of such
      certificate to the Holder or any such holder.

    

    (h)           NOTICES
      TO WARRANT HOLDERS.  So long as this Warrant shall be outstanding,
      (i) if the Company shall pay any dividend or make any distribution upon the
      Common Stock or (ii) if the Company shall offer to the holders of Common
      Stock for subscription or purchase by them any share of any class or any other
      rights or (iii) if any capital reorganization of the Company,
      reclassification of the capital stock of the Company, 

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    consolidation
      or merger of the Company with or into another corporation, sale, lease or
      transfer of all or substantially all of the property and assets of the Company
      to another corporation, or voluntary or involuntary dissolution, liquidation
      or
      winding up of the Company shall be effected, then in any such case, the Company
      shall cause to be mailed by certified mail to the Holder, at least fifteen
      (15)
      days prior the date specified in (x) or (y) below, as the case may be,
      a notice containing a brief description of the proposed action and stating
      the
      date on which (x) a record is to be taken for the purpose of such dividend,
      distribution or rights, or (y) such reclassification, reorganization,
      consolidation, merger, conveyance, lease, dissolution, liquidation or winding
      up
      is to take place and the date, if any is to be fixed, as of which the holders
      of
      Common Stock or other securities shall receive cash or other property
      deliverable upon such reclassification, reorganization, consolidation, merger,
      conveyance, dissolution, liquidation or winding up.

    

    (i)           RECLASSIFICATION,
      REORGANIZATION OR MERGER.  In case of any reclassification, capital
      reorganization or other change of outstanding shares of Common Stock of the
      Company, or in case of any consolidation or merger of the Company with or into
      another corporation (other than a merger with a subsidiary in which merger
      the
      Company is the continuing corporation and which does not result in any
      reclassification, capital reorganization or other change of outstanding shares
      of Common Stock of the class issuable upon exercise of this Warrant) or in
      case
      of any sale, lease or conveyance to another corporation of the property of
      the
      Company as an entirety, the Company shall, as a condition precedent to such
      transaction, cause effective provisions to be made so that the Holder shall
      have
      the right thereafter by exercising this Warrant at any time prior to the
      expiration of the Warrant, to purchase the kind and amount of shares of stock
      and other securities and property receivable upon such reclassification, capital
      reorganization and other change, consolidation, merger, sale or conveyance
      by a
      holder of the number of shares of Common Stock which might have been purchased
      upon exercise of this Warrant immediately prior to such reclassification,
      change, consolidation, merger, sale or conveyance.  Any such provision
      shall include provision for adjustments which shall be as nearly equivalent
      as
      may be practicable to the adjustments provided for in this
      Warrant.  The foregoing provisions of this Section (i) shall
      similarly apply to successive reclassifications, capital reorganizations and
      changes of shares of Common Stock and to successive consolidations, mergers,
      sales or conveyances.  In the event that in connection with any such
      capital reorganization or reclassification, consolidation, merger, sale or
      conveyance, additional shares of Common Stock shall be issued in exchange,
      conversion, substitution or payment, in whole or in part, for a security of
      the
      Company other than Common Stock, any such issue shall be treated as an issue
      of
      Common Stock covered by the provisions of Subsection (1) of
      Section (f) hereof.

    

    (j)           REGISTRATION
      RIGHTS.

    

    (1)           The
      Warrant and the Warrant Shares will be registered in an initial Public offering
      of the Company’s securities pursuant to a registration statement filed on a
      appropriate form (the “Registration Statement”) with the SEC and the Company
      covenants and agrees to maintain the effectiveness of the Registration Statement
      until all Warrant Shares have been sold (the “Expiration
      Date”).  Notwithstanding the foregoing, in the event that, prior to
      the Expiration Date, the Warrant or the Warrant Shares cease to be eligible
      for
      inclusion in such Registration Statement to the extent necessary to permit
      the
      Holder to exercise the Warrant and sell the Warrant Shares without restriction
      under the Act, the Company will promptly (and in any event 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    within
      thirty (30) days of the date that the Warrant or any Warrant Shares cease to
      be
      so eligible), amend or file a new registration statement under the Act on a
      form
      eligible for use by the Company for the registration of such securities and
      use
      its best efforts to have such registration statement declared effective by
      the
      SEC as soon as practicable after such filing, which registration statement
      shall
      include such information as may be required to permit the exercise of the
      Warrant and the sale of the Warrant Shares without restriction under the
      Act.  The Holder acknowledges and agrees that the Warrant shall be
      exercisable pursuant to any such registration statement only at such times
      as
      the registration statement is effective or in accordance with any applicable
      exemption from the registration requirements of the Act.  Upon such
      Registration Statement’s being declared effective by the SEC, the Company shall
      use its best efforts to cause the Registration Statement to remain effective
      for
      a period of at least six (6) consecutive months from the date that the Holders
      of the Warrants and Warrant Shares covered by such Registration Statement are
      first given the opportunity to sell all of such securities. In the event that
      ninety (90) days prior to the Expiration Date, the Registration Statement
      registering the Warrant Shares is not effective or is withdrawn or the SEC
      issues a stop order suspending the effectiveness of such Registration Statement,
      the Company hereby agrees to extend the Expiration Date for (x) an additional
      ninety (90) days or (y) until the Registration Statement is declared effective
      by the SEC, whichever period is longer. During such time as the Warrant Shares
      are registered pursuant to any registration statement under the Act, the Company
      further covenants and agrees to make timely filings of all documents required
      to
      be filed under the Act or the Exchange Act in order to ensure that the
      registration statement, including the documents incorporated by reference
      therein, if any, do not contain an untrue statement of a material fact or omit
      to state any material fact required to be stated therein or necessary in order
      to make the statements therein not misleading.

    

    (2)           The
      Company will, until such time as the Warrant Shares may be sold under Rule
      144
      without volume limitation:

    

    (A)           prepare
      and file with the SEC such amendments to such registration statement and
      supplements to the prospectus contained therein as may be necessary to keep
      such
      registration statement effective;

    

    (B)           furnish
      to the Holders participating in such registration and to the underwriters of
      the
      securities being registered such reasonable number of copies of the registration
      statement, preliminary prospectus, final prospectus and such other documents
      as
      such underwriters may reasonably request in order to facilitate the public
      offering of such securities;

    

    (C)           use
      its best efforts to register or qualify the securities covered by such
      registration statement under such state securities or blue sky laws of such
      jurisdictions as the Holders may reasonably request in writing within twenty
      (20) days following the original filing of such registration statement, except
      that the Company shall not for any purpose be required to execute a general
      consent to service of process or to qualify to do business as a foreign
      corporation in any jurisdiction wherein it is not so qualified or subject itself
      to taxation in any such jurisdiction;

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (D)           notify
      the Holders, promptly after it shall receive notice thereof, of the time when
      such registration statement has become effective or a supplement to any
      prospectus forming a part of such registration statement has been
      filed;

    

    (E)           notify
      the Holders promptly of any request by the SEC for the amending or supplementing
      of such registration statement or prospectus or for additional
      information;

    

    (F)           prepare
      and file with the SEC, promptly upon the request of any Holders, any amendments
      or supplements to such registration statement or prospectus which, in the
      opinion of counsel for such Holders (and concurred in by counsel for the
      Company), is required under the Act or the rules and regulations thereunder
      in
      connection with the distribution of Common Stock by such Holders;

    

    (G)           prepare
      and promptly file with the SEC and promptly notify such Holders of the filing
      of
      such amendment or supplement to such registration statement or prospectus as
      may
      be necessary to correct any statements or omissions if, at the time when a
      prospectus relating to such securities is required to be delivered under the
      Act, any event shall have occurred as the result of which any such prospectus
      or
      any other prospectus as then in effect would include an untrue statement of
      a
      material fact or omit to state any material fact necessary to make the
      statements therein, in the light of the circumstances in which they were made,
      not misleading; and

    

    (H)           advise
      the Holders, promptly after it shall receive notice or obtain knowledge thereof,
      of the issuance of any stop order by the SEC suspending the effectiveness of
      such registration statement or the initiation or threatening of any proceeding
      for that purpose and promptly use its best efforts to prevent the issuance
      of
      any stop order or to obtain its withdrawal if such stop order should be
      issued.

    

    The
      Company may require each Holder of Warrant Shares as to which any registration
      is being effected to furnish to the Company such information regarding the
      distribution of such Warrant Shares as the Company may from time to time
      reasonably request in writing.

    

    (3)           All
      fees, costs and expenses of and incidental to such registration, inclusion
      and
      public offering in connection therewith shall be borne by the Company, provided,
      however, that the Holders shall bear their pro rata share of the underwriting
      discount and commissions and transfer taxes. The fees, costs and expenses of
      registration to be borne by the Company as provided above shall include, without
      limitation, all registration, filing, and NASD fees, printing expenses, fees
      and
      disbursements of counsel and accountants for the Company, and all legal fees
      and
      disbursements and other expenses of complying with state securities or blue
      sky
      laws of any jurisdictions in which the securities to be offered are to be
      registered and qualified (except as provided above), and, in the case of a
      registration, other than such registration set forth in Section (c)(8), fees
      of
      one (1) counsel for the Holders of the Warrant 

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Shares.  Fees
      and disbursements of counsel and accountants for the Holders and any other
      expenses incurred by the Holders not expressly included above shall be borne
      by
      the Holders.

    

    (4)           The
      Company will indemnify and hold harmless each Holder of Warrant Shares which
      are
      included in a registration statement pursuant to the provisions of
      Section (j)(1) hereof, its directors and officers, and any underwriter (as
      defined in the Act) for such Holder and each person, if any, who controls such
      Holder or such underwriter within the meaning of the Act, from and against,
      and
      will reimburse such Holder and each such underwriter and controlling person
      with
      respect to, any and all loss, damage, liability, cost and expense to which
      such
      Holder or any such underwriter or controlling person may become subject under
      the Act or otherwise, insofar as such losses, damages, liabilities, costs or
      expenses are caused by any untrue statement or alleged untrue statement of
      any
      material fact contained in such registration statement, any prospectus contained
      therein or any amendment or supplement thereto, or arise out of or are based
      upon the omission or alleged omission to state therein a material fact required
      to be stated therein or necessary to make the statements therein, in light
      of
      the circumstances in which they were made, not misleading; provided, however,
      that the Company will not be liable in any such case to the extent that any
      such
      loss, damage, liability, cost or expenses arises out of or is based upon an
      untrue statement or alleged untrue statement or omission or alleged omission
      so
      made in conformity with information furnished by such Holder, such underwriter
      or such controlling person in writing specifically for use in the preparation
      thereof.

    

    (5)           Each
      Holder of Warrant Shares included in a registration pursuant to the provisions
      of Section (j)(1) hereof will indemnify and hold harmless the Company, its
      directors and officers, any controlling person and any underwriter from and
      against, and will reimburse the Company, its directors and officers, any
      controlling person and any underwriter with respect to, any and all loss,
      damage, liability, cost or expense to which the Company or any controlling
      person and/or any underwriter may become subject under the Act or otherwise,
      insofar as such losses, damages, liabilities, costs or expenses are caused
      by
      any untrue statement or alleged untrue statement of any material fact contained
      in such registration statement, any prospectus contained therein or any
      amendment or supplement thereto, or arise out of or are based upon the omission
      or alleged omission to state therein a material fact required to be stated
      therein or necessary to make the statements therein, in light of the
      circumstances in which they were made, not misleading, in each case to the
      extent, but only to the extent, that such untrue statement or alleged untrue
      statement or omission or alleged omission was so made in reliance upon and
      in
      strict conformity with written information furnished by or on behalf of such
      Holder specifically for use in the preparation thereof.

    

    (6)           Promptly
      after receipt by an indemnified party pursuant to the provisions of
      Sections (j)(4) or (5) of notice of the commencement of any action
      involving the subject matter of the foregoing indemnity provisions such
      indemnified party will, if a claim thereof is to be made against the
      indemnifying party pursuant to the provisions of said Sections (j)(4) or
      (5), promptly notify the indemnifying party of the commencement thereof; but
      the
      omission to so notify the indemnifying party will not relieve it from any
      liability which it may have to any indemnified party otherwise than
      hereunder.  In case such action is brought against any indemnified
      party and it notifies the indemnifying party of the commencement thereof, the
      indemnifying party shall have the right to participate in, and, to the extent
      that it may wish, 

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    jointly
      with any other indemnifying party similarly notified, to assume the defense
      thereof, with counsel satisfactory to such indemnified party, provided, however,
      if counsel for the indemnifying party concludes that a single counsel cannot
      under applicable legal and ethical considerations, represent both the
      indemnifying party and the indemnified party, the indemnified party or parties
      have the right to select separate counsel to participate in the defense of
      such
      action on behalf of such indemnified party or parties.  After notice
      from the indemnifying party to such indemnified party of its election so to
      assume the defense thereof, the indemnifying party will not be liable to such
      indemnified party pursuant to the provisions of said Sections (j)(4) or (5)
      for any legal or other expense subsequently incurred by such indemnified party
      in connection with the defense thereof other than reasonable costs of
      investigation, unless (i) the indemnified party shall have employed counsel
      in accordance with the provisions of the preceding sentence, (ii) the
      indemnifying party shall not have employed counsel satisfactory to the
      indemnified party to represent the indemnified party within a reasonable time
      after the notice of the commencement of the action or (iii) the
      indemnifying party has authorized the employment of counsel for the indemnified
      party at the expense of the indemnifying party.

    

    (7)           If
      the Company fails to carry out its obligations under this Section (j), the
      Holder shall be entitled to tender this warrant for a sum equal to the number
      of
      Warrant Shares multiplied by the current market thereof less the Exercise Price
      thereof and a person who has exercised this Warrant shall be entitled to tender
      the Common Stock thereby purchased for the current market value, and in each
      case to be paid therefor in 10 business days thereafter.

    

    (8)           If
      the Warrant Shares have been included in Registration Statement filed with
      the
      Securities and Exchange Commission in connection with the Public Offering and
      if
      such Registration Statement is declared effective, and for so long as it remains
      effective, the Holder shall have no rights to demand a registration under
      Section (j)(1) hereof.

     

    
      	 	BRIDGELINE
              SOFTWARE, INC.	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ 	 
	 	 	
              Name:  Thomas
                Massie

            	 
	 	 	Title:    President,
              Chief Executive Officer	 
	 	 	 	 

    

     

    

    Dated:  ______,
      2007

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    PURCHASE
      FORM

    

    

    
      	 	
              Dated  

            

    

    

    The
      undersigned hereby irrevocably elects to exercise the within Warrant to the
      extent of purchasing   shares of Common Stock and hereby makes
      payment of   in payment of the actual exercise price thereof _____
      (check) or elects a cashless exercise with respect thereto ______ (check) as
      to
      a total of ___________ shares.

    

    ___________________________________

    

    INSTRUCTIONS
      FOR REGISTRATION OF STOCK

    

    Name

    (Please
      typewrite or print in block letters)

    

    

    Address
      

    

    

    Signature

    

    

    ASSIGNMENT
      FORM

    

    FOR
      VALUE
      RECEIVED, ___________________ hereby sells, assigns and transfers
      unto

    

    

    Name

    (Please
      typewrite or print in block letters)

    

    

    Address

    

    the
      right
      to purchase Common Stock represented by this Warrant to the extent of
  shares as to which such right is exercisable and does hereby
      irrevocably constitute and appoint   Attorney, to transfer the same
      on the books of the Company with full power of substitution in the
      premises.

    

    Date
      

    

    Signature

    
      
         

      

      
        14

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