Document:

[EXHIBIT 10.14.1]

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

               CALLABLE SECURED CONVERTIBLE NOTE

Boca Raton, Florida
February 23, 2006                                             $169,200

             FOR VALUE RECEIVED, MED GEN, INC., a Nevada corporation
(hereinafter called the "Borrower"), hereby promises to pay to the
order of AJW QUALIFIED PARTNERS, LLC or registered assigns (the "Holder")
the sum of $169,200, on February 23, 2009 (the "Maturity Date"), and to
pay interest on the unpaid principal balance hereof at the rate of eight
percent (8%) (the "Interest Rate") per annum from February 23, 2006
(the "Issue Date") until the same becomes due and payable, whether at
maturity or upon acceleration or by prepayment or otherwise.  Any
amount of principal or interest on this Note which is not paid when
due shall bear interest at the rate of fifteen percent (15%) per annum
from the due date thereof until the same is paid ("Default Interest").
Interest shall commence accruing on the Issue Date, shall be computed
on the basis of a 365-day year and the actual number of days elapsed
and shall be payable quarterly provided that no interest shall be due
and payable for any month in which the Trading Price (as such term is
defined below) is greater than $.0125 for each Trading Day (as such
term is defined below) of the month. All payments due hereunder (to
the extent not converted into common stock, $.001 par value per share
(the "Common Stock") in accordance with the terms hereof) shall be
made in lawful money of the United States of America.  All payments
shall be made at such address as the Holder shall hereafter give to
the Borrower by written notice made in accordance with the provisions
of this Note.  Whenever any amount expressed to be due by the terms of
this Note is due on any day which is not a business day, the same
shall instead be due on the next succeeding day which is a business
day and, in the case of any interest payment date which is not the
date on which this Note is paid in full, the extension of the due date
thereof shall not be taken into account for purposes of determining
the amount of interest due on such date.  As used in this Note, the
term "business day" shall mean any day other than a Saturday, Sunday
or a day on which commercial banks in the city of New York, New York
are authorized or required by law or executive order to remain closed.

<PAGE>

Each capitalized term used herein, and not otherwise defined, shall
have the meaning ascribed thereto in that certain Securities Purchase
Agreement, dated February 23, 2006, pursuant to which this Note was
originally issued (the "Purchase Agreement").

       This Note is free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to
preemptive rights or other similar rights of shareholders of the
Borrower and will not impose personal liability upon the holder
thereof.  The obligations of the Borrower under this Note shall be
secured by that certain Security Agreement and Intellectual Property
Security Agreement, each dated February 23, 2006 by and between the
Borrower and the Holder.

       The following terms shall apply to this Note:

                    ARTICLE I. CONVERSION RIGHTS

             1.1    Conversion Right.  The Holder shall have the right
                    ----------------
from time to time, and at any time on or prior to the earlier of (i)
the Maturity Date and (ii) the date of payment of the Default Amount
(as defined in Article III) pursuant to Section 1.6(a) or Article III,
the Optional Prepayment Amount (as defined in Section 5.1 or any
payments pursuant to Section 1.7, each in respect of the remaining
outstanding principal amount of this Note to convert all or any part
of the outstanding and unpaid principal amount of this Note into fully
paid and non-assessable shares of Common Stock, as such Common Stock
exists on the Issue Date, or any shares of capital stock or other
securities of the Borrower into which such Common Stock shall
hereafter be changed or reclassified at the conversion price  (the
"Conversion Price") determined as provided herein (a "Conversion");
provided, however, that in no event shall the Holder be entitled to
convert any portion of this Note in excess of that portion of this
Note upon conversion of which the sum of (1) the number of shares of
Common Stock beneficially owned by the Holder and its affiliates
(other than shares of Common Stock which may be deemed beneficially
owned through the ownership of the unconverted portion of the Notes or
the unexercised or unconverted portion of any other security of the
Borrower (including, without limitation, the warrants issued by the
Borrower pursuant to the Purchase Agreement) subject to a limitation
on conversion or exercise analogous to the limitations contained
herein) and (2) the number of shares of Common Stock issuable upon the
conversion of the portion of this Note with respect to which the
determination of this proviso is being made, would result in
beneficial ownership by the Holder and its affiliates of more than
4.99% of the outstanding shares of Common Stock and provided further
that the Holder shall not be entitled to convert any portion of this
Note during any month immediately succeeding a Determination Date on
which the Borrower exercises its prepayment option pursuant to Section
5.2 of this Note.  For purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934,
as amended, and Regulations 13D-G thereunder, except as otherwise
provided in clause (1) of such proviso.  The number of shares of
Common Stock to be issued upon each conversion of this Note shall be
determined by dividing the Conversion Amount (as defined below) by the
applicable Conversion Price then in effect on the date specified in
the notice of conversion, in the form attached hereto as Exhibit A
(the "Notice of Conversion"), delivered to the Borrower by the Holder
in accordance with Section 1.4 below; provided that the Notice of
Conversion is submitted by facsimile (or by other means resulting in,

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or reasonably expected to result in, notice) to the Borrower before
6:00 p.m., New York, New York time on such conversion date (the
"Conversion Date").  The term "Conversion Amount" means, with respect
to any conversion of this Note, the sum of (1) the principal amount of
this Note to be converted in such conversion plus (2) accrued and
unpaid interest, if any, on such principal amount at the interest
rates provided in this Note to the Conversion Date plus (3) Default
Interest, if any, on the amounts referred to in the immediately
preceding clauses (1) and/or (2) plus (4) at the Holder's option, any
amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof
or pursuant to Section 2(c) of that certain Registration Rights
Agreement, dated as of February 23, 2006, executed in connection with
the initial issuance of this Note and the other Notes issued on the
Issue Date (the "Registration Rights Agreement").  The term
"Determination Date" means the last business day of each month after
the Issue Date.

             1.2    Conversion Price.
                    ----------------

                    (a)	Calculation of Conversion Price.  The Conversion
                        -------------------------------
Price shall be the lesser of (i) the Variable Conversion Price (as
defined herein) and (ii) the Fixed Conversion Price (as defined
herein) (subject, in each case, to equitable adjustments for stock
splits, stock dividends or rights offerings by the Borrower relating
to the Borrower's securities or the securities of any subsidiary of
the Borrower, combinations, recapitalization, reclassifications,
extraordinary distributions and similar events).  The "Variable
Conversion Price" shall mean the Applicable Percentage (as defined
herein) multiplied by the Market Price (as defined herein).  "Market
Price" means the average of the lowest three (3) Trading Prices (as
defined below) for the Common Stock during the twenty (20) Trading Day
period ending one Trading Day prior to the date the Conversion Notice
is sent by the Holder to the Borrower via facsimile (the "Conversion
Date").  "Trading Price" means, for any security as of any date, the
intraday trading price on the Over-the-Counter Bulletin Board (the
"OTCBB") as reported by a reliable reporting service mutually
acceptable to and hereafter designated by Holders of a majority in
interest of the Notes and the Borrower or, if the OTCBB is not the
principal trading market for such security, the intraday trading price
of such security on the principal securities exchange or trading
market where such security is listed or traded or, if no intraday
trading price of such security is available in any of the foregoing
manners, the average of the intraday trading prices of any market
makers for such security that are listed in the "pink sheets" by the
National Quotation Bureau, Inc.  If the Trading Price cannot be
calculated for such security on such date in the manner provided
above, the Trading Price shall be the fair market value as mutually
determined by the Borrower and the holders of a majority in interest
of the Notes being converted for which the calculation of the Trading
Price is required in order to determine the Conversion Price of such
Notes.  "Trading Day" shall mean any day on which the Common Stock is
traded for any period on the OTCBB, or on the principal securities
exchange or other securities market on which the Common Stock is then
being traded.  "Applicable Percentage" shall mean 60.0%.  The "Fixed
Conversion Price" shall mean $.04.

                    (b)	Conversion Price During Major Announcements.
                        -------------------------------------------
Notwithstanding anything contained in Section 1.2(a) to the contrary,
in the event the Borrower (i) makes a public announcement that it
intends to consolidate or merge with any other corporation (other than
a merger in which the Borrower is the surviving or continuing
corporation and its capital stock is unchanged) or sell or transfer
all or substantially all of the assets of the Borrower or (ii) any

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<PAGE>

person, group or entity (including the Borrower) publicly announces a
tender offer to purchase 50% or more of the Borrower's Common Stock
(or any other takeover scheme) (the date of the announcement referred
to in clause (i) or (ii) is hereinafter referred to as the
"Announcement Date"), then the Conversion Price shall, effective upon
the Announcement Date and continuing through the Adjusted Conversion
Price Termination Date (as defined below), be equal to the lower of
(x) the Conversion Price which would have been applicable for a
Conversion occurring on the Announcement Date and (y) the Conversion
Price that would otherwise be in effect. From and after the Adjusted
Conversion Price Termination Date, the Conversion Price shall be
determined as set forth in this Section 1.2(a).  For purposes hereof,
"Adjusted Conversion Price Termination Date" shall mean, with respect
to any proposed transaction or tender offer (or takeover scheme) for
which a public announcement as contemplated by this Section 1.2(b) has
been made, the date upon which the Borrower (in the case of clause (i)
above) or the person, group or entity (in the case of clause (ii)
above) consummates or publicly announces the termination or
abandonment of the proposed transaction or tender offer (or takeover
scheme) which caused this Section 1.2(b) to become operative.

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

             If, at any time a Holder of this Note submits a Notice of
Conversion, and the Borrower does not have sufficient authorized but
unissued shares of Common Stock available to effect such conversion in
accordance with the provisions of this Article I (a "Conversion
Default"), subject to Section 4.8, the Borrower shall issue to the
Holder all of the shares of Common Stock which are then available to
effect such conversion.  The portion of this Note which the Holder
included in its Conversion Notice and which exceeds the amount which
is then convertible into available shares of Common Stock (the "Excess
Amount") shall, notwithstanding anything to the contrary contained

                               4

<PAGE>

herein, not be convertible into Common Stock in accordance with the
terms hereof until (and at the Holder's option at any time after) the
date additional shares of Common Stock are authorized by the Borrower
to permit such conversion, at which time the Conversion Price in
respect thereof shall be the lesser of (i) the Conversion Price on the
Conversion Default Date (as defined below) and (ii) the Conversion
Price on the Conversion Date thereafter elected by the Holder in
respect thereof.  In addition, the Borrower shall pay to the Holder
payments ("Conversion Default Payments") for a Conversion Default in
the amount of (x) the sum of (1) the then outstanding principal amount
of this Note plus (2) accrued and unpaid interest on the unpaid
principal amount of this Note through the Authorization Date (as
defined below) plus (3) Default Interest, if any, on the amounts
referred to in clauses (1) and/or (2), multiplied by (y) .24,
multiplied by (z) (N/365), where N = the number of days from the day
the holder submits a Notice of Conversion giving rise to a Conversion
Default (the "Conversion Default Date") to the date (the
"Authorization Date") that the Borrower authorizes a sufficient number
of shares of Common Stock to effect conversion of the full outstanding
principal balance of this Note.  The Borrower shall use its best
efforts to authorize a sufficient number of shares of Common Stock as
soon as practicable following the earlier of (i) such time that the
Holder notifies the Borrower or that the Borrower otherwise becomes
aware that there are or likely will be insufficient authorized and
unissued shares to allow full conversion thereof and (ii) a Conversion
Default.  The Borrower shall send notice to the Holder of the
authorization of additional shares of Common Stock, the Authorization
Date and the amount of Holder's accrued Conversion Default Payments.
The accrued Conversion Default Payments for each calendar month shall
be paid in cash or shall be convertible into Common Stock (at such
time as there are sufficient authorized shares of Common Stock) at the
applicable Conversion Price, at the Borrower's option, as follows:

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

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

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

             1.4    Method of Conversion.
                    --------------------

                               5

<PAGE>

                    (a) Mechanics of Conversion.  Subject to Section 1.1,
                        -----------------------
this Note may be converted by the Holder in whole or in part at any
time from time to time after the Issue Date, by (A) submitting to the
Borrower a Notice of Conversion (by facsimile or other reasonable
means of communication dispatched on the Conversion Date prior to 6:00
p.m., New York, New York time) and (B) subject to Section 1.4(b),
surrendering this Note at the principal office of the Borrower.

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

                    (c)	Payment of Taxes.  The Borrower shall not be
                        ----------------
required to pay any tax which may be payable in respect of any
transfer involved in the issue and delivery of shares of Common Stock
or other securities or property on conversion of this Note in a name
other than that of the Holder (or in street name), and the Borrower
shall not be required to issue or deliver any such shares or other
securities or property unless and until the person or persons (other
than the Holder or the custodian in whose street name such shares are
to be held for the Holder's account) requesting the issuance thereof
shall have paid to the Borrower the amount of any such tax or shall
have established to the satisfaction of the Borrower that such tax has
been paid.
                    (d)	Delivery of Common Stock Upon Conversion.  Upon
                        ----------------------------------------
receipt by the Borrower from the Holder of a facsimile transmission
(or other reasonable means of communication) of a Notice of Conversion
meeting the requirements for conversion as provided in this Section
1.4, the Borrower shall issue and deliver or cause to be issued and
delivered to or upon the order of the Holder certificates for the
Common Stock issuable upon such conversion within two (2) business
days after such receipt (and, solely in the case of conversion of the
entire unpaid principal amount hereof, surrender of this Note) (such
second business day being hereinafter referred to as the "Deadline")
in accordance with the terms hereof and the Purchase Agreement
(including, without limitation, in accordance with the requirements of
Section 2(g) of the Purchase Agreement that certificates for shares of
Common Stock issued on or after the effective date of the Registration
Statement upon conversion of this Note shall not bear any restrictive
legend).

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<PAGE>

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

                    (f)	Delivery of Common Stock by Electronic Transfer.
                        -----------------------------------------------
In lieu of delivering physical certificates representing the Common
Stock issuable upon conversion, provided the Borrower's transfer agent
is participating in the Depository Trust Company ("DTC") Fast
Automated Securities Transfer ("FAST") program, upon request of the
Holder and its compliance with the provisions contained in Section 1.1
and in this Section 1.4, the Borrower shall use its best efforts to
cause its transfer agent to electronically transmit the Common Stock
issuable upon conversion to the Holder by crediting the account of
Holder's Prime Broker with DTC through its Deposit Withdrawal Agent
Commission ("DWAC") system.

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

             1.5    Concerning the Shares.  The shares of Common Stock
                    ---------------------
issuable upon conversion of this Note may not be sold or transferred
unless  (i) such shares are sold pursuant to an effective registration
statement under the Act or (ii) the Borrower or its transfer agent
shall have been furnished with an opinion of  counsel (which opinion
shall be in form, substance and scope customary for opinions of

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<PAGE>

counsel in comparable transactions) to the effect that the shares to
be sold or transferred may be sold or transferred pursuant to an
exemption from such registration or (iii) such shares are sold or
transferred pursuant to Rule 144 under the Act (or a successor rule)
("Rule 144") or (iv) such shares are transferred to an "affiliate" (as
defined in Rule 144) of the Borrower who agrees to sell or otherwise
transfer the shares only in accordance with this Section 1.5 and who
is an Accredited Investor (as defined in the Purchase Agreement).
Except as otherwise provided in the Purchase Agreement (and subject to
the removal provisions set forth below), until such time as the shares
of Common Stock issuable upon conversion of this Note have been
registered under the Act as contemplated by the Registration Rights
Agreement or otherwise may be sold pursuant to Rule 144 without any
restriction as to the number of securities as of a particular date
that can then be immediately sold, each certificate for shares of
Common Stock issuable upon conversion of this Note that has not been
so included in an effective registration statement or that has not
been sold pursuant to an effective registration statement or an
exemption that permits removal of the legend, shall bear a legend
substantially in the following form, as appropriate:

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

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

             1.6    Effect of Certain Events.
                    ------------------------

                    (a)	Effect of Merger, Consolidation, Etc.  At the
                        ------------------------------------
option of the Holder, the sale, conveyance or disposition of all or
substantially all of the assets of the Borrower, the effectuation by
the Borrower of a transaction or series of related transactions in

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<PAGE>

which more than 50% of the voting power of the Borrower is disposed
of, or the consolidation, merger or other business combination of the
Borrower with or into any other Person (as defined below) or Persons
when the Borrower is not the survivor shall either:  (i) be deemed to
be an Event of Default (as defined in Article III) pursuant to which
the Borrower shall be required to pay to the Holder upon the
consummation of and as a condition to such transaction an amount equal
to the Default Amount (as defined in Article III) or (ii) be treated
pursuant to Section 1.6(b) hereof.  "Person" shall mean any
individual, corporation, limited liability company, partnership,
association, trust or other entity or organization.

                    (b)	Adjustment Due to Merger, Consolidation, Etc.
                        --------------------------------------------
If, at any time when this Note is issued and outstanding and prior to
conversion of all of the Notes, there shall be any merger,
consolidation, exchange of shares, recapitalization, reorganization,
or other similar event, as a result of which shares of Common Stock of
the Borrower shall be changed into the same or a different number of
shares of another class or classes of stock or securities of the
Borrower or another entity, or in case of any sale or conveyance of
all or substantially all of the assets of the Borrower other than in
connection with a plan of complete liquidation of the Borrower, then
the Holder of this Note shall thereafter have the right to receive
upon conversion of this Note, upon the basis and upon the terms and
conditions specified herein and in lieu of the shares of Common Stock
immediately theretofore issuable upon conversion, such stock,
securities or assets which the Holder would have been entitled to
receive in such transaction had this Note been converted in full
immediately prior to such transaction (without regard to any
limitations on conversion set forth herein), and in any such case
appropriate provisions shall be made with respect to the rights and
interests of the Holder of this Note to the end that the provisions
hereof (including, without limitation, provisions for adjustment of
the Conversion Price and of the number of shares issuable upon
conversion of the Note) shall thereafter be applicable, as nearly as
may be practicable in relation to any securities or assets thereafter
deliverable upon the conversion hereof.  The Borrower shall not effect
any transaction described in this Section 1.6(b) unless (a) it first
gives, to the extent practicable, thirty (30) days prior written
notice (but in any event at least fifteen (15) days prior written
notice) of the record date of the special meeting of shareholders to
approve, or if there is no such record date, the consummation of, such
merger, consolidation, exchange of shares, recapitalization,
reorganization or other similar event or sale of assets (during which
time the Holder shall be entitled to convert this Note) and (b) the
resulting successor or acquiring entity (if not the Borrower) assumes
by written instrument the obligations of this Section 1.6(b).  The
above provisions shall similarly apply to successive consolidations,
mergers, sales, transfers or share exchanges.

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

                               9

<PAGE>

                    (d)	Adjustment Due to Dilutive Issuance.  If, at any
                        -----------------------------------
time when any Notes are issued and outstanding, the Borrower issues or
sells, or in accordance with this Section 1.6(d) hereof is deemed to
have issued or sold, any shares of Common Stock for no consideration
or for a consideration per share (before deduction of reasonable
expenses or commissions or underwriting discounts or allowances in
connection therewith) less than the Fixed Conversion Price in effect
on the date of such issuance (or deemed issuance) of such shares of
Common Stock (a "Dilutive Issuance"), then immediately upon the
Dilutive Issuance, the Fixed Conversion Price will be reduced to the
amount of the consideration per share received by the Borrower in such
Dilutive Issuance; provided that only one adjustment will be made for
each Dilutive Issuance.

                    The Borrower shall be deemed to have issued or sold
shares of Common Stock if the Borrower in any manner issues or grants
any warrants, rights or options (not including employee stock option
plans), whether or not immediately exercisable, to subscribe for or to
purchase Common Stock or other securities convertible into or
exchangeable for Common Stock ("Convertible Securities") (such
warrants, rights and options to purchase Common Stock or Convertible
Securities are hereinafter referred to as "Options") and the price per
share for which Common Stock is issuable upon the exercise of such
Options is less than the Fixed Conversion Price then in effect, then
the Fixed Conversion Price shall be equal to such price per share.
For purposes of the preceding sentence, the "price per share for which
Common Stock is issuable upon the exercise of such Options" is
determined by dividing (i) the total amount, if any, received or
receivable by the Borrower as consideration for the issuance or
granting of all such Options, plus the minimum aggregate amount of
additional consideration, if any, payable to the Borrower upon the
exercise of all such Options, plus, in the case of Convertible
Securities issuable upon the exercise of such Options, the minimum
aggregate amount of additional consideration payable upon the
conversion or exchange thereof at the time such Convertible Securities
first become convertible or exchangeable, by (ii) the maximum total
number of shares of Common Stock issuable upon the exercise of all
such Options (assuming full conversion of Convertible Securities, if
applicable).  No further adjustment to the Conversion Price will be
made upon the actual issuance of such Common Stock upon the exercise
of such Options or upon the conversion or exchange of Convertible
Securities issuable upon exercise of such Options.

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

                               10

<PAGE>

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

                    (f)	Notice of Adjustments.  Upon the occurrence of
                        ---------------------
each adjustment or readjustment of the Conversion Price as a result of
the events described in this Section 1.6, the Borrower, at its
expense, shall promptly compute such adjustment or readjustment and
prepare and furnish to the Holder of a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based.  The Borrower shall, upon
the written request at any time of the Holder, furnish to such Holder
a like certificate setting forth (i) such adjustment or readjustment,
(ii) the Conversion Price at the time in effect and (iii) the number
of shares of Common Stock and the amount, if any, of other securities
or property which at the time would be received upon conversion of the
Note.

             1.7    Trading Market Limitations.  Unless permitted by the
                    ---------------------------
applicable rules and regulations of the principal securities market on
which the Common Stock is then listed or traded, in no event shall the
Borrower issue upon conversion of or otherwise pursuant to this Note
and the other Notes issued pursuant to the Purchase Agreement more
than the maximum number of shares of Common Stock that the Borrower
can issue pursuant to any rule of the principal United States
securities market on which the Common Stock is then traded (the
"Maximum Share Amount"), which shall be 19.99% of the total shares
outstanding on the Closing Date (as defined in the Purchase
Agreement), subject to equitable adjustment from time to time for
stock splits, stock dividends, combinations, capital reorganizations
and similar events relating to the Common Stock occurring after the
date hereof.  Once the Maximum Share Amount has been issued (the date
of which is hereinafter referred to as the "Maximum Conversion Date"),
if the Borrower fails to eliminate any prohibitions under applicable
law or the rules or regulations of any stock exchange, interdealer
quotation system or other self-regulatory organization with
jurisdiction over the Borrower or any of its securities on the
Borrower's ability to issue shares of Common Stock in excess of the
Maximum Share Amount (a "Trading Market Prepayment Event"), in lieu of
any further right to convert this Note, and in full satisfaction of
the Borrower's obligations under this Note, the Borrower shall pay to
the Holder, within fifteen (15) business days of the Maximum
Conversion Date (the "Trading Market Prepayment Date"), an amount
equal to 130% times the sum of (a) the then outstanding principal
amount of this Note immediately following the Maximum Conversion Date,
plus (b) accrued and unpaid interest on the unpaid principal amount of
this Note to the Trading Market Prepayment Date, plus (c) Default
Interest, if any, on the amounts referred to in clause (a) and/or (b)
above, plus (d) any optional amounts that may be added thereto at the
Maximum Conversion Date by the Holder in accordance with the terms
hereof (the then outstanding principal amount of this Note immediately
following the Maximum Conversion Date, plus the amounts referred to in
clauses (b), (c) and (d) above shall collectively be referred to as

                               11

<PAGE>

the "Remaining Convertible Amount").  With respect to each Holder of
Notes, the Maximum Share Amount shall refer to such Holder's pro rata
share thereof determined in accordance with Section 4.8 below.  In the
event that the sum of (x) the aggregate number of shares of Common
Stock issued upon conversion of this Note and the other Notes issued
pursuant to the Purchase Agreement plus (y) the aggregate number of
shares of Common Stock that remain issuable upon conversion of this
Note and the other Notes issued pursuant to the Purchase Agreement,
represents at least one hundred percent (100%) of the Maximum Share
Amount (the "Triggering Event"), the Borrower will use its best
efforts to seek and obtain Shareholder Approval (or obtain such other
relief as will allow conversions hereunder in excess of the Maximum
Share Amount) as soon as practicable following the Triggering Event
and before the Maximum Conversion Date.  As used herein, "Shareholder
Approval" means approval by the shareholders of the Borrower to
authorize the issuance of the full number of shares of Common Stock
which would be issuable upon full conversion of the then outstanding
Notes but for the Maximum Share Amount.

             1.8    Status as Shareholder.  Upon submission of a Notice of
                    ---------------------
Conversion by a Holder, (i) the shares covered thereby (other than the
shares, if any, which cannot be issued because their issuance would
exceed such Holder's allocated portion of the Reserved Amount or
Maximum Share Amount) shall be deemed converted into shares of Common
Stock and (ii) the Holder's rights as a Holder of such converted
portion of this Note shall cease and terminate, excepting only the
right to receive certificates for such shares of Common Stock and to
any remedies provided herein or otherwise available at law or in
equity to such Holder because of a failure by the Borrower to comply
with the terms  of this Note.  Notwithstanding the foregoing, if a
Holder has not received certificates for all shares of Common Stock
prior to the tenth (10th) business day after the expiration of the
Deadline with respect to a conversion of any portion of this Note for
any reason, then (unless the Holder otherwise elects to retain its
status as a holder of Common Stock by so notifying the Borrower) the
Holder shall regain the rights of a Holder of this Note with respect
to such unconverted portions of this Note and the Borrower shall, as
soon as practicable, return such unconverted Note to the Holder or, if
the Note has not been surrendered, adjust its records to reflect that
such portion of this Note has not been converted.  In all cases, the
Holder shall retain all of its rights and remedies (including, without
limitation, (i) the right to receive Conversion Default Payments
pursuant to Section 1.3 to the extent required thereby for such
Conversion Default and any subsequent Conversion Default and (ii) the
right to have the Conversion Price with respect to subsequent
conversions determined in accordance with Section 1.3) for the
Borrower's failure to convert this Note.

                   ARTICLE II. CERTAIN COVENANTS

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

                               12

<PAGE>

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

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

             2.4    Sale of Assets.  So long as the Borrower shall have
                    --------------
any obligation under this Note, the Borrower shall not, without the
Holder's written consent, sell, lease or otherwise dispose of any
significant portion of its assets outside the ordinary course of
business.  Any consent to the disposition of any assets may be
conditioned on a specified use of the proceeds of disposition.

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

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

                   ARTICLE III. EVENTS OF DEFAULT

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

             3.1    Failure to Pay Principal or Interest.  The Borrower
                    ------------------------------------
fails to pay the principal hereof or interest thereon when due on this
Note, whether at maturity, upon a Trading Market Prepayment Event
pursuant to Section 1.7, upon acceleration or otherwise;

                               13

<PAGE>

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

             3.3    Failure to Timely File Registration or Effect
                    ---------------------------------------------
Registration.  The Borrower fails to file the Registration Statement
------------
within sixty (60) days following the Closing Date (as defined in the
Purchase Agreement) or obtain effectiveness with the Securities and
Exchange Commission of the Registration Statement within one hundred
thirty-five (135) days following the Closing Date (as defined in the
Purchase Agreement) or such Registration Statement lapses in effect
(or sales cannot otherwise be made thereunder effective, whether by
reason of the Borrower's failure to amend or supplement the prospectus
included therein in accordance with the Registration Rights Agreement
or otherwise) for more than ten (10) consecutive days or twenty (20)
days in any twelve month period after the Registration Statement
becomes effective;

             3.4    Breach of Covenants.  The Borrower breaches any
                    -------------------
material covenant or other material term or condition contained in
Sections 1.3, 1.6 or 1.7 of this Note, or Sections 4(c), 4(e), 4(h),
4(i), 4(j) or 5 of the Purchase Agreement and such breach continues
for a period of ten (10) days after written notice thereof to the
Borrower from the Holder;

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

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

                               14

<PAGE>

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

             3.8    Bankruptcy.  Bankruptcy, insolvency, reorganization or
                    ----------
liquidation proceedings or other proceedings for relief under any
bankruptcy law or any law for the relief of debtors shall be
instituted by or against the Borrower or any subsidiary of the
Borrower;

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

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

then, upon the occurrence and during the continuation of any Event of
Default specified in Section 3.1, 3.2, 3.3, 3.4, 3.5, 3.7, 3.9, or
3.10, at the option of the Holders of a majority of the aggregate
principal amount of the outstanding Notes issued pursuant to the
Purchase Agreement exercisable through the delivery of written notice
to the Borrower by such Holders (the "Default Notice"), and upon the
occurrence of an Event of Default specified in Section 3.6 or 3.8, the
Notes shall become immediately due and payable and the Borrower shall
pay to the Holder, in full satisfaction of its obligations hereunder,
an amount equal to the greater of (i) 130% times the sum of (w) the
then outstanding principal amount of this Note plus (x) accrued and
unpaid interest on the unpaid principal amount of this Note to the
date of payment (the "Mandatory Prepayment Date") plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and/or (x)
plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and
1.4(g) hereof or pursuant to Section 2(c) of the Registration Rights
Agreement (the then outstanding principal amount of this Note to the
date of payment plus the amounts referred to in clauses (x), (y) and
(z) shall collectively be known as the "Default Sum") or (ii) the
"parity value" of the Default Sum to be prepaid, where parity value
means (a) the highest number of shares of Common Stock issuable upon
conversion of or otherwise pursuant to such Default Sum in accordance
with Article I, treating the Trading Day immediately preceding the
Mandatory Prepayment Date as the "Conversion Date" for purposes of
determining the lowest applicable Conversion Price, unless the Default
Event arises as a result of a breach in respect of a specific
Conversion Date in which case such Conversion Date shall be the
Conversion Date), multiplied by (b) the highest Closing Price for the
Common Stock during the period beginning on the date of first
occurrence of the Event of Default and ending one day prior to the
Mandatory Prepayment Date (the "Default Amount") and all other amounts
payable hereunder shall immediately become due and payable, all
without demand, presentment or notice, all of which hereby are
expressly waived, together with all costs, including, without
limitation, legal fees and expenses, of collection, and the Holder
shall be entitled to exercise all other rights and remedies available
at law or in equity.  If the Borrower fails to pay the Default Amount
within five (5) business days of written notice that such amount is
due and payable, then the Holder shall have the right at any time, so
long as the Borrower remains in default (and so long and to the extent
that there are sufficient authorized shares), to require the Borrower,

                               15

<PAGE>

upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower equal to
the Default Amount divided by the Conversion Price then in effect.

                   ARTICLE IV. MISCELLANEOUS

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

             4.2    Notices.  Any notice herein required or permitted to
                    -------
be given shall be in writing and may be personally served or delivered
by courier or sent by United States mail and shall be deemed to have
been given upon receipt if personally served (which shall include
telephone line facsimile transmission) or sent by courier or three (3)
days after being deposited in the United States mail, certified, with
postage pre-paid and properly addressed, if sent by mail.  For the
purposes hereof, the address of the Holder shall be as shown on the
records of the Borrower; and the address of the Borrower shall be 7284
Palmetto Park Road, Suite 207, Boca Raton, FL 33433, facsimile number:
() [       ].  Both the Holder and the Borrower may change the address
for service by service of written notice to the other as herein
provided.

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

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

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

             4.6    Governing Law.  THIS NOTE SHALL BE ENFORCED, GOVERNED
                    -------------
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.  THE
BORROWER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED
STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK WITH RESPECT TO
ANY DISPUTE ARISING UNDER THIS NOTE, THE AGREEMENTS ENTERED INTO IN
CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR

                               16

<PAGE>

THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES
FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST
CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING.  NOTHING HEREIN
SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW.  BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE
JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY
OTHER LAWFUL MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE
ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES AND
EXPENSES, INCLUDING ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY
IN CONNECTION WITH SUCH DISPUTE.

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

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

             4.9    Damages Shares.  The shares of Common Stock that may
                    --------------
be issuable to the Holder pursuant to Sections 1.3 and 1.4(g) hereof
and pursuant to Section 2(c) of the Registration Rights Agreement
("Damages Shares") shall be treated as Common Stock issuable upon
conversion of this Note for all purposes hereof and shall be subject
to all of the limitations and afforded all of the rights of the other
shares of Common Stock issuable hereunder, including without
limitation, the right to be included in the Registration Statement
filed pursuant to the Registration Rights Agreement.  For purposes of
calculating interest payable on the outstanding principal amount

                               17

<PAGE>

hereof, except as otherwise provided herein, amounts convertible into
Damages Shares ("Damages Amounts") shall not bear interest but must be
converted prior to the conversion of any outstanding principal amount
hereof, until the outstanding Damages Amounts is zero.

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

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

             4.12   Notice of Corporate Events.  Except as otherwise
                    --------------------------
provided below, the Holder of this Note shall have no rights as a
Holder of Common Stock unless and only to the extent that it converts
this Note into Common Stock.  The Borrower shall provide the Holder
with prior notification of any meeting of the Borrower's shareholders
(and copies of proxy materials and other information sent to
shareholders).  In the event of any taking by the Borrower of a record
of its shareholders for the purpose of determining shareholders who
are entitled to receive payment of any dividend or other distribution,
any right to subscribe for, purchase or otherwise acquire (including
by way of merger, consolidation, reclassification or recapitalization)
any share of any class or any other securities or property, or to
receive any other right, or for the purpose of determining
shareholders who are entitled to vote in connection with any proposed
sale, lease or conveyance of all or substantially all of the assets of
the Borrower or any proposed liquidation, dissolution or winding up of
the Borrower, the Borrower shall mail a notice to the Holder, at least
twenty (20) days prior to the record date specified therein (or thirty
(30) days prior to the consummation of the transaction or event,
whichever is earlier), of the date on which any such record is to be
taken for the purpose of such dividend, distribution, right or other
event, and a brief statement regarding the amount and character of
such dividend, distribution, right or other event to the extent known
at such time.  The Borrower shall make a public announcement of any
event requiring notification to the Holder hereunder substantially
simultaneously with the notification to the Holder in accordance with
the terms of this Section 4.12.

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

                               18

<PAGE>

                     ARTICLE V. CALL OPTION

             5.1    Call Option.  Notwithstanding anything to the contrary
                    -----------
contained in this Article V, so long as (i) no Event of Default or
Trading Market Prepayment Event shall have occurred and be continuing,
(ii) the Borrower has a sufficient number of authorized shares of
Common Stock reserved for issuance upon full conversion of the Notes,
then at any time after the Issue Date, and (iii) the Common Stock is
trading at or below $.04 per share, the Borrower shall have the right,
exercisable on not less than ten (10) Trading Days prior written
notice to the Holders of the Notes (which notice may not be sent to
the Holders of the Notes until the Borrower is permitted to prepay the
Notes pursuant to this Section 5.1), to prepay all of the outstanding
Notes in accordance with this Section 5.1.  Any notice of prepayment
hereunder (an "Optional Prepayment") shall be delivered to the Holders
of the Notes at their registered addresses appearing on the books and
records of the Borrower and shall state (1) that the Borrower is
exercising its right to prepay all of the Notes issued on the Issue
Date and (2) the date of prepayment (the "Optional Prepayment
Notice").  On the date fixed for prepayment (the "Optional Prepayment
Date"), the Borrower shall make payment of the Optional Prepayment
Amount (as defined below) to or upon the order of the Holders as
specified by the Holders in writing to the Borrower at least one (1)
business day prior to the Optional Prepayment Date.  If the Borrower
exercises its right to prepay the Notes, the Borrower shall make
payment to the holders of an amount in cash (the "Optional Prepayment
Amount") equal to either (i) 125% (for prepayments occurring within
thirty (30) days of the Issue Date), (ii) 135% for prepayments
occurring between thirty-one (31) and sixty  (60) days of the Issue
Date, or (iii) 150% (for prepayments occurring after the sixtieth
(60th) day following the Issue Date), multiplied by the sum of (w) the
then outstanding principal amount of this Note plus (x) accrued and
unpaid interest on the unpaid principal amount of this Note to the
Optional Prepayment Date plus (y) Default Interest, if any, on the
amounts referred to in clauses (w) and (x) plus (z) any amounts owed
to the Holder pursuant to Sections 1.3 and 1.4(g) hereof or pursuant
to Section 2(c) of the Registration Rights Agreement (the then
outstanding principal amount of this Note to the date of payment plus
the amounts referred to in clauses (x), (y) and (z) shall collectively
be known as the "Optional Prepayment Sum"). Notwithstanding notice of
an Optional Prepayment, the Holders shall at all times prior to the
Optional Prepayment Date maintain the right to convert all or any
portion of the Notes in accordance with Article I and any portion of
Notes so converted after receipt of an Optional Prepayment Notice and
prior to the Optional Prepayment Date set forth in such notice and
payment of the aggregate Optional Prepayment Amount shall be deducted
from the principal amount of Notes which are otherwise subject to
prepayment pursuant to such notice.  If the Borrower delivers an
Optional Prepayment Notice and fails to pay the Optional Prepayment
Amount due to the Holders of the Notes within two (2) business days
following the Optional Prepayment Date, the Borrower shall forever
forfeit its right to redeem the Notes pursuant to this Section 5.1.

             5.2    Partial Call Option.  Notwithstanding anything to the
                    -------------------
contrary contained in this Article V, in the event that the Average
Daily Price of the Common Stock, as reported by the Reporting Service,
for each day of the month ending on any Determination Date is below
the Initial Market Price, the Borrower may, at its option, prepay a
portion of the outstanding principal amount of the Notes equal to the
principal amount hereof divided by thirty-six (36) plus one month's
interest.  The term "Initial Market Price" means shall mean the volume
weighted average price of the Common Stock for the five (5) Trading

                               19

<PAGE>

Days immediately preceding the Closing.  The term "Reporting Service"
means a reliable reporting service mutually acceptable to and
hereinafter designated by the Holder.

            [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                               20

<PAGE>

         IN WITNESS WHEREOF, Borrower has caused this Note to be
signed in its name by its duly authorized officer this 23rd day of
February, 2006.

                                      MED GEN, INC.

                                      By:/s/Paul B. Kravitz
                                         ----------------------------
                                         Paul B. Kravitz
                                         Chairman and Chief
                                         Executive Officer

                               21

<PAGE>

                           EXHIBIT A

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

        The undersigned hereby irrevocably elects to convert
$__________ principal amount of the Note (defined below) into shares
of common stock, par value $.001 per share ("Common Stock"), of Med
Gen, Inc., a Nevada corporation (the "Borrower") according to the
conditions of the convertible Notes of the Borrower dated as of
February 23, 2006 (the "Notes"), as of the date written below.  If
securities are to be issued in the name of a person other than the
undersigned, the undersigned will pay all transfer taxes payable with
respect thereto and is delivering herewith such certificates.  No fee
will be charged to the Holder for any conversion, except for transfer
taxes, if any.  A copy of each Note is attached hereto (or evidence of
loss, theft or destruction thereof).

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

            Name of DTC Prime Broker:_______________________
            Account Number:_________________________________

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

            Name:__________________________________________
            Address:_______________________________________

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

            Date of Conversion:____________________________
            Applicable Conversion Price:___________________
            Number of Shares of Common Stock to be Issued Pursuant
            to Conversion of the Notes:____________________
            Signature:_____________________________________
            Name:__________________________________________
            Address:_______________________________________

                               22

<PAGE>

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

                               23[EXHIBIT 10.14.2]

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

               CALLABLE SECURED CONVERTIBLE NOTE

Boca Raton, Florida
April 21, 2006                                               $213,750

             FOR VALUE RECEIVED, MED GEN, INC., a Nevada corporation
(hereinafter called the "Borrower"), hereby promises to pay to the
order of AJW QUALIFIED PARTNERS, LLC or registered assigns (the "Holder")
the sum of $213,750, on April 21, 2009 (the "Maturity Date"), and to pay
interest on the unpaid principal balance hereof at the rate of eight
percent (8%) (the "Interest Rate") per annum from April 21, 2006
(the "Issue Date") until the same becomes due and payable, whether at
maturity or upon acceleration or by prepayment or otherwise.  Any
amount of principal or interest on this Note which is not paid when
due shall bear interest at the rate of fifteen percent (15%) per annum
from the due date thereof until the same is paid ("Default Interest").
Interest shall commence accruing on the Issue Date, shall be computed
on the basis of a 365-day year and the actual number of days elapsed
and shall be payable quarterly provided that no interest shall be due
and payable for any month in which the Trading Price (as such term is
defined below) is greater than $.0125 for each Trading Day (as such
term is defined below) of the month. All payments due hereunder (to
the extent not converted into common stock, $.001 par value per share
(the "Common Stock") in accordance with the terms hereof) shall be
made in lawful money of the United States of America.  All payments
shall be made at such address as the Holder shall hereafter give to
the Borrower by written notice made in accordance with the provisions
of this Note.  Whenever any amount expressed to be due by the terms of
this Note is due on any day which is not a business day, the same
shall instead be due on the next succeeding day which is a business
day and, in the case of any interest payment date which is not the
date on which this Note is paid in full, the extension of the due date
thereof shall not be taken into account for purposes of determining
the amount of interest due on such date.  As used in this Note, the
term "business day" shall mean any day other than a Saturday, Sunday
or a day on which commercial banks in the city of New York, New York
are authorized or required by law or executive order to remain closed.

<PAGE>

Each capitalized term used herein, and not otherwise defined, shall
have the meaning ascribed thereto in that certain Securities Purchase
Agreement, dated April 21, 2006, pursuant to which this Note was
originally issued (the "Purchase Agreement").

       This Note is free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to
preemptive rights or other similar rights of shareholders of the
Borrower and will not impose personal liability upon the holder
thereof.  The obligations of the Borrower under this Note shall be
secured by that certain Security Agreement and Intellectual Property
Security Agreement, each dated April 21, 2006 by and between the
Borrower and the Holder.

       The following terms shall apply to this Note:

                    ARTICLE I. CONVERSION RIGHTS

             1.1    Conversion Right.  The Holder shall have the right
                    ----------------
from time to time, and at any time on or prior to the earlier of (i)
the Maturity Date and (ii) the date of payment of the Default Amount
(as defined in Article III) pursuant to Section 1.6(a) or Article III,
the Optional Prepayment Amount (as defined in Section 5.1 or any
payments pursuant to Section 1.7, each in respect of the remaining
outstanding principal amount of this Note to convert all or any part
of the outstanding and unpaid principal amount of this Note into fully
paid and non-assessable shares of Common Stock, as such Common Stock
exists on the Issue Date, or any shares of capital stock or other
securities of the Borrower into which such Common Stock shall
hereafter be changed or reclassified at the conversion price  (the
"Conversion Price") determined as provided herein (a "Conversion");
provided, however, that in no event shall the Holder be entitled to
convert any portion of this Note in excess of that portion of this
Note upon conversion of which the sum of (1) the number of shares of
Common Stock beneficially owned by the Holder and its affiliates
(other than shares of Common Stock which may be deemed beneficially
owned through the ownership of the unconverted portion of the Notes or
the unexercised or unconverted portion of any other security of the
Borrower (including, without limitation, the warrants issued by the
Borrower pursuant to the Purchase Agreement) subject to a limitation
on conversion or exercise analogous to the limitations contained
herein) and (2) the number of shares of Common Stock issuable upon the
conversion of the portion of this Note with respect to which the
determination of this proviso is being made, would result in
beneficial ownership by the Holder and its affiliates of more than
4.99% of the outstanding shares of Common Stock and provided further
that the Holder shall not be entitled to convert any portion of this
Note during any month immediately succeeding a Determination Date on
which the Borrower exercises its prepayment option pursuant to Section
5.2 of this Note.  For purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934,
as amended, and Regulations 13D-G thereunder, except as otherwise
provided in clause (1) of such proviso.  The number of shares of
Common Stock to be issued upon each conversion of this Note shall be
determined by dividing the Conversion Amount (as defined below) by the
applicable Conversion Price then in effect on the date specified in
the notice of conversion, in the form attached hereto as Exhibit A
(the "Notice of Conversion"), delivered to the Borrower by the Holder
in accordance with Section 1.4 below; provided that the Notice of
Conversion is submitted by facsimile (or by other means resulting in,

                               2

<PAGE>

or reasonably expected to result in, notice) to the Borrower before
6:00 p.m., New York, New York time on such conversion date (the
"Conversion Date").  The term "Conversion Amount" means, with respect
to any conversion of this Note, the sum of (1) the principal amount of
this Note to be converted in such conversion plus (2) accrued and
unpaid interest, if any, on such principal amount at the interest
rates provided in this Note to the Conversion Date plus (3) Default
Interest, if any, on the amounts referred to in the immediately
preceding clauses (1) and/or (2) plus (4) at the Holder's option, any
amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof
or pursuant to Section 2(c) of that certain Registration Rights
Agreement, dated as of April 21, 2006, executed in connection with
the initial issuance of this Note and the other Notes issued on the
Issue Date (the "Registration Rights Agreement").  The term
"Determination Date" means the last business day of each month after
the Issue Date.

             1.2    Conversion Price.
                    ----------------

                    (a)	Calculation of Conversion Price.  The Conversion
                        -------------------------------
Price shall be the lesser of (i) the Variable Conversion Price (as
defined herein) and (ii) the Fixed Conversion Price (as defined
herein) (subject, in each case, to equitable adjustments for stock
splits, stock dividends or rights offerings by the Borrower relating
to the Borrower's securities or the securities of any subsidiary of
the Borrower, combinations, recapitalization, reclassifications,
extraordinary distributions and similar events).  The "Variable
Conversion Price" shall mean the Applicable Percentage (as defined
herein) multiplied by the Market Price (as defined herein).  "Market
Price" means the average of the lowest three (3) Trading Prices (as
defined below) for the Common Stock during the twenty (20) Trading Day
period ending one Trading Day prior to the date the Conversion Notice
is sent by the Holder to the Borrower via facsimile (the "Conversion
Date").  "Trading Price" means, for any security as of any date, the
intraday trading price on the Over-the-Counter Bulletin Board (the
"OTCBB") as reported by a reliable reporting service mutually
acceptable to and hereafter designated by Holders of a majority in
interest of the Notes and the Borrower or, if the OTCBB is not the
principal trading market for such security, the intraday trading price
of such security on the principal securities exchange or trading
market where such security is listed or traded or, if no intraday
trading price of such security is available in any of the foregoing
manners, the average of the intraday trading prices of any market
makers for such security that are listed in the "pink sheets" by the
National Quotation Bureau, Inc.  If the Trading Price cannot be
calculated for such security on such date in the manner provided
above, the Trading Price shall be the fair market value as mutually
determined by the Borrower and the holders of a majority in interest
of the Notes being converted for which the calculation of the Trading
Price is required in order to determine the Conversion Price of such
Notes.  "Trading Day" shall mean any day on which the Common Stock is
traded for any period on the OTCBB, or on the principal securities
exchange or other securities market on which the Common Stock is then
being traded.  "Applicable Percentage" shall mean 60.0%.  The "Fixed
Conversion Price" shall mean $.04.

                    (b)	Conversion Price During Major Announcements.
                        -------------------------------------------
Notwithstanding anything contained in Section 1.2(a) to the contrary,
in the event the Borrower (i) makes a public announcement that it
intends to consolidate or merge with any other corporation (other than
a merger in which the Borrower is the surviving or continuing
corporation and its capital stock is unchanged) or sell or transfer
all or substantially all of the assets of the Borrower or (ii) any

                               3

<PAGE>

person, group or entity (including the Borrower) publicly announces a
tender offer to purchase 50% or more of the Borrower's Common Stock
(or any other takeover scheme) (the date of the announcement referred
to in clause (i) or (ii) is hereinafter referred to as the
"Announcement Date"), then the Conversion Price shall, effective upon
the Announcement Date and continuing through the Adjusted Conversion
Price Termination Date (as defined below), be equal to the lower of
(x) the Conversion Price which would have been applicable for a
Conversion occurring on the Announcement Date and (y) the Conversion
Price that would otherwise be in effect. From and after the Adjusted
Conversion Price Termination Date, the Conversion Price shall be
determined as set forth in this Section 1.2(a).  For purposes hereof,
"Adjusted Conversion Price Termination Date" shall mean, with respect
to any proposed transaction or tender offer (or takeover scheme) for
which a public announcement as contemplated by this Section 1.2(b) has
been made, the date upon which the Borrower (in the case of clause (i)
above) or the person, group or entity (in the case of clause (ii)
above) consummates or publicly announces the termination or
abandonment of the proposed transaction or tender offer (or takeover
scheme) which caused this Section 1.2(b) to become operative.

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

             If, at any time a Holder of this Note submits a Notice of
Conversion, and the Borrower does not have sufficient authorized but
unissued shares of Common Stock available to effect such conversion in
accordance with the provisions of this Article I (a "Conversion
Default"), subject to Section 4.8, the Borrower shall issue to the
Holder all of the shares of Common Stock which are then available to
effect such conversion.  The portion of this Note which the Holder
included in its Conversion Notice and which exceeds the amount which
is then convertible into available shares of Common Stock (the "Excess
Amount") shall, notwithstanding anything to the contrary contained

                               4

<PAGE>

herein, not be convertible into Common Stock in accordance with the
terms hereof until (and at the Holder's option at any time after) the
date additional shares of Common Stock are authorized by the Borrower
to permit such conversion, at which time the Conversion Price in
respect thereof shall be the lesser of (i) the Conversion Price on the
Conversion Default Date (as defined below) and (ii) the Conversion
Price on the Conversion Date thereafter elected by the Holder in
respect thereof.  In addition, the Borrower shall pay to the Holder
payments ("Conversion Default Payments") for a Conversion Default in
the amount of (x) the sum of (1) the then outstanding principal amount
of this Note plus (2) accrued and unpaid interest on the unpaid
principal amount of this Note through the Authorization Date (as
defined below) plus (3) Default Interest, if any, on the amounts
referred to in clauses (1) and/or (2), multiplied by (y) .24,
multiplied by (z) (N/365), where N = the number of days from the day
the holder submits a Notice of Conversion giving rise to a Conversion
Default (the "Conversion Default Date") to the date (the
"Authorization Date") that the Borrower authorizes a sufficient number
of shares of Common Stock to effect conversion of the full outstanding
principal balance of this Note.  The Borrower shall use its best
efforts to authorize a sufficient number of shares of Common Stock as
soon as practicable following the earlier of (i) such time that the
Holder notifies the Borrower or that the Borrower otherwise becomes
aware that there are or likely will be insufficient authorized and
unissued shares to allow full conversion thereof and (ii) a Conversion
Default.  The Borrower shall send notice to the Holder of the
authorization of additional shares of Common Stock, the Authorization
Date and the amount of Holder's accrued Conversion Default Payments.
The accrued Conversion Default Payments for each calendar month shall
be paid in cash or shall be convertible into Common Stock (at such
time as there are sufficient authorized shares of Common Stock) at the
applicable Conversion Price, at the Borrower's option, as follows:

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

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

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

             1.4    Method of Conversion.
                    --------------------

                               5

<PAGE>

                    (a) Mechanics of Conversion.  Subject to Section 1.1,
                        -----------------------
this Note may be converted by the Holder in whole or in part at any
time from time to time after the Issue Date, by (A) submitting to the
Borrower a Notice of Conversion (by facsimile or other reasonable
means of communication dispatched on the Conversion Date prior to 6:00
p.m., New York, New York time) and (B) subject to Section 1.4(b),
surrendering this Note at the principal office of the Borrower.

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

                    (c)	Payment of Taxes.  The Borrower shall not be
                        ----------------
required to pay any tax which may be payable in respect of any
transfer involved in the issue and delivery of shares of Common Stock
or other securities or property on conversion of this Note in a name
other than that of the Holder (or in street name), and the Borrower
shall not be required to issue or deliver any such shares or other
securities or property unless and until the person or persons (other
than the Holder or the custodian in whose street name such shares are
to be held for the Holder's account) requesting the issuance thereof
shall have paid to the Borrower the amount of any such tax or shall
have established to the satisfaction of the Borrower that such tax has
been paid.
                    (d)	Delivery of Common Stock Upon Conversion.  Upon
                        ----------------------------------------
receipt by the Borrower from the Holder of a facsimile transmission
(or other reasonable means of communication) of a Notice of Conversion
meeting the requirements for conversion as provided in this Section
1.4, the Borrower shall issue and deliver or cause to be issued and
delivered to or upon the order of the Holder certificates for the
Common Stock issuable upon such conversion within two (2) business
days after such receipt (and, solely in the case of conversion of the
entire unpaid principal amount hereof, surrender of this Note) (such
second business day being hereinafter referred to as the "Deadline")
in accordance with the terms hereof and the Purchase Agreement
(including, without limitation, in accordance with the requirements of
Section 2(g) of the Purchase Agreement that certificates for shares of
Common Stock issued on or after the effective date of the Registration
Statement upon conversion of this Note shall not bear any restrictive
legend).

                               6

<PAGE>

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

                    (f)	Delivery of Common Stock by Electronic Transfer.
                        -----------------------------------------------
In lieu of delivering physical certificates representing the Common
Stock issuable upon conversion, provided the Borrower's transfer agent
is participating in the Depository Trust Company ("DTC") Fast
Automated Securities Transfer ("FAST") program, upon request of the
Holder and its compliance with the provisions contained in Section 1.1
and in this Section 1.4, the Borrower shall use its best efforts to
cause its transfer agent to electronically transmit the Common Stock
issuable upon conversion to the Holder by crediting the account of
Holder's Prime Broker with DTC through its Deposit Withdrawal Agent
Commission ("DWAC") system.

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

             1.5    Concerning the Shares.  The shares of Common Stock
                    ---------------------
issuable upon conversion of this Note may not be sold or transferred
unless  (i) such shares are sold pursuant to an effective registration
statement under the Act or (ii) the Borrower or its transfer agent
shall have been furnished with an opinion of  counsel (which opinion
shall be in form, substance and scope customary for opinions of

                               7

<PAGE>

counsel in comparable transactions) to the effect that the shares to
be sold or transferred may be sold or transferred pursuant to an
exemption from such registration or (iii) such shares are sold or
transferred pursuant to Rule 144 under the Act (or a successor rule)
("Rule 144") or (iv) such shares are transferred to an "affiliate" (as
defined in Rule 144) of the Borrower who agrees to sell or otherwise
transfer the shares only in accordance with this Section 1.5 and who
is an Accredited Investor (as defined in the Purchase Agreement).
Except as otherwise provided in the Purchase Agreement (and subject to
the removal provisions set forth below), until such time as the shares
of Common Stock issuable upon conversion of this Note have been
registered under the Act as contemplated by the Registration Rights
Agreement or otherwise may be sold pursuant to Rule 144 without any
restriction as to the number of securities as of a particular date
that can then be immediately sold, each certificate for shares of
Common Stock issuable upon conversion of this Note that has not been
so included in an effective registration statement or that has not
been sold pursuant to an effective registration statement or an
exemption that permits removal of the legend, shall bear a legend
substantially in the following form, as appropriate:

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

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

             1.6    Effect of Certain Events.
                    ------------------------

                    (a)	Effect of Merger, Consolidation, Etc.  At the
                        ------------------------------------
option of the Holder, the sale, conveyance or disposition of all or
substantially all of the assets of the Borrower, the effectuation by
the Borrower of a transaction or series of related transactions in

                               8

<PAGE>

which more than 50% of the voting power of the Borrower is disposed
of, or the consolidation, merger or other business combination of the
Borrower with or into any other Person (as defined below) or Persons
when the Borrower is not the survivor shall either:  (i) be deemed to
be an Event of Default (as defined in Article III) pursuant to which
the Borrower shall be required to pay to the Holder upon the
consummation of and as a condition to such transaction an amount equal
to the Default Amount (as defined in Article III) or (ii) be treated
pursuant to Section 1.6(b) hereof.  "Person" shall mean any
individual, corporation, limited liability company, partnership,
association, trust or other entity or organization.

                    (b)	Adjustment Due to Merger, Consolidation, Etc.
                        --------------------------------------------
If, at any time when this Note is issued and outstanding and prior to
conversion of all of the Notes, there shall be any merger,
consolidation, exchange of shares, recapitalization, reorganization,
or other similar event, as a result of which shares of Common Stock of
the Borrower shall be changed into the same or a different number of
shares of another class or classes of stock or securities of the
Borrower or another entity, or in case of any sale or conveyance of
all or substantially all of the assets of the Borrower other than in
connection with a plan of complete liquidation of the Borrower, then
the Holder of this Note shall thereafter have the right to receive
upon conversion of this Note, upon the basis and upon the terms and
conditions specified herein and in lieu of the shares of Common Stock
immediately theretofore issuable upon conversion, such stock,
securities or assets which the Holder would have been entitled to
receive in such transaction had this Note been converted in full
immediately prior to such transaction (without regard to any
limitations on conversion set forth herein), and in any such case
appropriate provisions shall be made with respect to the rights and
interests of the Holder of this Note to the end that the provisions
hereof (including, without limitation, provisions for adjustment of
the Conversion Price and of the number of shares issuable upon
conversion of the Note) shall thereafter be applicable, as nearly as
may be practicable in relation to any securities or assets thereafter
deliverable upon the conversion hereof.  The Borrower shall not effect
any transaction described in this Section 1.6(b) unless (a) it first
gives, to the extent practicable, thirty (30) days prior written
notice (but in any event at least fifteen (15) days prior written
notice) of the record date of the special meeting of shareholders to
approve, or if there is no such record date, the consummation of, such
merger, consolidation, exchange of shares, recapitalization,
reorganization or other similar event or sale of assets (during which
time the Holder shall be entitled to convert this Note) and (b) the
resulting successor or acquiring entity (if not the Borrower) assumes
by written instrument the obligations of this Section 1.6(b).  The
above provisions shall similarly apply to successive consolidations,
mergers, sales, transfers or share exchanges.

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

                               9

<PAGE>

                    (d)	Adjustment Due to Dilutive Issuance.  If, at any
                        -----------------------------------
time when any Notes are issued and outstanding, the Borrower issues or
sells, or in accordance with this Section 1.6(d) hereof is deemed to
have issued or sold, any shares of Common Stock for no consideration
or for a consideration per share (before deduction of reasonable
expenses or commissions or underwriting discounts or allowances in
connection therewith) less than the Fixed Conversion Price in effect
on the date of such issuance (or deemed issuance) of such shares of
Common Stock (a "Dilutive Issuance"), then immediately upon the
Dilutive Issuance, the Fixed Conversion Price will be reduced to the
amount of the consideration per share received by the Borrower in such
Dilutive Issuance; provided that only one adjustment will be made for
each Dilutive Issuance.

                    The Borrower shall be deemed to have issued or sold
shares of Common Stock if the Borrower in any manner issues or grants
any warrants, rights or options (not including employee stock option
plans), whether or not immediately exercisable, to subscribe for or to
purchase Common Stock or other securities convertible into or
exchangeable for Common Stock ("Convertible Securities") (such
warrants, rights and options to purchase Common Stock or Convertible
Securities are hereinafter referred to as "Options") and the price per
share for which Common Stock is issuable upon the exercise of such
Options is less than the Fixed Conversion Price then in effect, then
the Fixed Conversion Price shall be equal to such price per share.
For purposes of the preceding sentence, the "price per share for which
Common Stock is issuable upon the exercise of such Options" is
determined by dividing (i) the total amount, if any, received or
receivable by the Borrower as consideration for the issuance or
granting of all such Options, plus the minimum aggregate amount of
additional consideration, if any, payable to the Borrower upon the
exercise of all such Options, plus, in the case of Convertible
Securities issuable upon the exercise of such Options, the minimum
aggregate amount of additional consideration payable upon the
conversion or exchange thereof at the time such Convertible Securities
first become convertible or exchangeable, by (ii) the maximum total
number of shares of Common Stock issuable upon the exercise of all
such Options (assuming full conversion of Convertible Securities, if
applicable).  No further adjustment to the Conversion Price will be
made upon the actual issuance of such Common Stock upon the exercise
of such Options or upon the conversion or exchange of Convertible
Securities issuable upon exercise of such Options.

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

                               10

<PAGE>

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

                    (f)	Notice of Adjustments.  Upon the occurrence of
                        ---------------------
each adjustment or readjustment of the Conversion Price as a result of
the events described in this Section 1.6, the Borrower, at its
expense, shall promptly compute such adjustment or readjustment and
prepare and furnish to the Holder of a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based.  The Borrower shall, upon
the written request at any time of the Holder, furnish to such Holder
a like certificate setting forth (i) such adjustment or readjustment,
(ii) the Conversion Price at the time in effect and (iii) the number
of shares of Common Stock and the amount, if any, of other securities
or property which at the time would be received upon conversion of the
Note.

             1.7    Trading Market Limitations.  Unless permitted by the
                    ---------------------------
applicable rules and regulations of the principal securities market on
which the Common Stock is then listed or traded, in no event shall the
Borrower issue upon conversion of or otherwise pursuant to this Note
and the other Notes issued pursuant to the Purchase Agreement more
than the maximum number of shares of Common Stock that the Borrower
can issue pursuant to any rule of the principal United States
securities market on which the Common Stock is then traded (the
"Maximum Share Amount"), which shall be 19.99% of the total shares
outstanding on the Closing Date (as defined in the Purchase
Agreement), subject to equitable adjustment from time to time for
stock splits, stock dividends, combinations, capital reorganizations
and similar events relating to the Common Stock occurring after the
date hereof.  Once the Maximum Share Amount has been issued (the date
of which is hereinafter referred to as the "Maximum Conversion Date"),
if the Borrower fails to eliminate any prohibitions under applicable
law or the rules or regulations of any stock exchange, interdealer
quotation system or other self-regulatory organization with
jurisdiction over the Borrower or any of its securities on the
Borrower's ability to issue shares of Common Stock in excess of the
Maximum Share Amount (a "Trading Market Prepayment Event"), in lieu of
any further right to convert this Note, and in full satisfaction of
the Borrower's obligations under this Note, the Borrower shall pay to
the Holder, within fifteen (15) business days of the Maximum
Conversion Date (the "Trading Market Prepayment Date"), an amount
equal to 130% times the sum of (a) the then outstanding principal
amount of this Note immediately following the Maximum Conversion Date,
plus (b) accrued and unpaid interest on the unpaid principal amount of
this Note to the Trading Market Prepayment Date, plus (c) Default
Interest, if any, on the amounts referred to in clause (a) and/or (b)
above, plus (d) any optional amounts that may be added thereto at the
Maximum Conversion Date by the Holder in accordance with the terms
hereof (the then outstanding principal amount of this Note immediately
following the Maximum Conversion Date, plus the amounts referred to in
clauses (b), (c) and (d) above shall collectively be referred to as

                               11

<PAGE>

the "Remaining Convertible Amount").  With respect to each Holder of
Notes, the Maximum Share Amount shall refer to such Holder's pro rata
share thereof determined in accordance with Section 4.8 below.  In the
event that the sum of (x) the aggregate number of shares of Common
Stock issued upon conversion of this Note and the other Notes issued
pursuant to the Purchase Agreement plus (y) the aggregate number of
shares of Common Stock that remain issuable upon conversion of this
Note and the other Notes issued pursuant to the Purchase Agreement,
represents at least one hundred percent (100%) of the Maximum Share
Amount (the "Triggering Event"), the Borrower will use its best
efforts to seek and obtain Shareholder Approval (or obtain such other
relief as will allow conversions hereunder in excess of the Maximum
Share Amount) as soon as practicable following the Triggering Event
and before the Maximum Conversion Date.  As used herein, "Shareholder
Approval" means approval by the shareholders of the Borrower to
authorize the issuance of the full number of shares of Common Stock
which would be issuable upon full conversion of the then outstanding
Notes but for the Maximum Share Amount.

             1.8    Status as Shareholder.  Upon submission of a Notice of
                    ---------------------
Conversion by a Holder, (i) the shares covered thereby (other than the
shares, if any, which cannot be issued because their issuance would
exceed such Holder's allocated portion of the Reserved Amount or
Maximum Share Amount) shall be deemed converted into shares of Common
Stock and (ii) the Holder's rights as a Holder of such converted
portion of this Note shall cease and terminate, excepting only the
right to receive certificates for such shares of Common Stock and to
any remedies provided herein or otherwise available at law or in
equity to such Holder because of a failure by the Borrower to comply
with the terms  of this Note.  Notwithstanding the foregoing, if a
Holder has not received certificates for all shares of Common Stock
prior to the tenth (10th) business day after the expiration of the
Deadline with respect to a conversion of any portion of this Note for
any reason, then (unless the Holder otherwise elects to retain its
status as a holder of Common Stock by so notifying the Borrower) the
Holder shall regain the rights of a Holder of this Note with respect
to such unconverted portions of this Note and the Borrower shall, as
soon as practicable, return such unconverted Note to the Holder or, if
the Note has not been surrendered, adjust its records to reflect that
such portion of this Note has not been converted.  In all cases, the
Holder shall retain all of its rights and remedies (including, without
limitation, (i) the right to receive Conversion Default Payments
pursuant to Section 1.3 to the extent required thereby for such
Conversion Default and any subsequent Conversion Default and (ii) the
right to have the Conversion Price with respect to subsequent
conversions determined in accordance with Section 1.3) for the
Borrower's failure to convert this Note.

                   ARTICLE II. CERTAIN COVENANTS

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

                               12

<PAGE>

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

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

             2.4    Sale of Assets.  So long as the Borrower shall have
                    --------------
any obligation under this Note, the Borrower shall not, without the
Holder's written consent, sell, lease or otherwise dispose of any
significant portion of its assets outside the ordinary course of
business.  Any consent to the disposition of any assets may be
conditioned on a specified use of the proceeds of disposition.

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

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

                   ARTICLE III. EVENTS OF DEFAULT

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

             3.1    Failure to Pay Principal or Interest.  The Borrower
                    ------------------------------------
fails to pay the principal hereof or interest thereon when due on this
Note, whether at maturity, upon a Trading Market Prepayment Event
pursuant to Section 1.7, upon acceleration or otherwise;

                               13

<PAGE>

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

             3.3    Failure to Timely File Registration or Effect
                    ---------------------------------------------
Registration.  The Borrower fails to file the Registration Statement
------------
within sixty (60) days following the Closing Date (as defined in the
Purchase Agreement) or obtain effectiveness with the Securities and
Exchange Commission of the Registration Statement within one hundred
thirty-five (135) days following the Closing Date (as defined in the
Purchase Agreement) or such Registration Statement lapses in effect
(or sales cannot otherwise be made thereunder effective, whether by
reason of the Borrower's failure to amend or supplement the prospectus
included therein in accordance with the Registration Rights Agreement
or otherwise) for more than ten (10) consecutive days or twenty (20)
days in any twelve month period after the Registration Statement
becomes effective;

             3.4    Breach of Covenants.  The Borrower breaches any
                    -------------------
material covenant or other material term or condition contained in
Sections 1.3, 1.6 or 1.7 of this Note, or Sections 4(c), 4(e), 4(h),
4(i), 4(j) or 5 of the Purchase Agreement and such breach continues
for a period of ten (10) days after written notice thereof to the
Borrower from the Holder;

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

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

                               14

<PAGE>

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

             3.8    Bankruptcy.  Bankruptcy, insolvency, reorganization or
                    ----------
liquidation proceedings or other proceedings for relief under any
bankruptcy law or any law for the relief of debtors shall be
instituted by or against the Borrower or any subsidiary of the
Borrower;

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

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

then, upon the occurrence and during the continuation of any Event of
Default specified in Section 3.1, 3.2, 3.3, 3.4, 3.5, 3.7, 3.9, or
3.10, at the option of the Holders of a majority of the aggregate
principal amount of the outstanding Notes issued pursuant to the
Purchase Agreement exercisable through the delivery of written notice
to the Borrower by such Holders (the "Default Notice"), and upon the
occurrence of an Event of Default specified in Section 3.6 or 3.8, the
Notes shall become immediately due and payable and the Borrower shall
pay to the Holder, in full satisfaction of its obligations hereunder,
an amount equal to the greater of (i) 130% times the sum of (w) the
then outstanding principal amount of this Note plus (x) accrued and
unpaid interest on the unpaid principal amount of this Note to the
date of payment (the "Mandatory Prepayment Date") plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and/or (x)
plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and
1.4(g) hereof or pursuant to Section 2(c) of the Registration Rights
Agreement (the then outstanding principal amount of this Note to the
date of payment plus the amounts referred to in clauses (x), (y) and
(z) shall collectively be known as the "Default Sum") or (ii) the
"parity value" of the Default Sum to be prepaid, where parity value
means (a) the highest number of shares of Common Stock issuable upon
conversion of or otherwise pursuant to such Default Sum in accordance
with Article I, treating the Trading Day immediately preceding the
Mandatory Prepayment Date as the "Conversion Date" for purposes of
determining the lowest applicable Conversion Price, unless the Default
Event arises as a result of a breach in respect of a specific
Conversion Date in which case such Conversion Date shall be the
Conversion Date), multiplied by (b) the highest Closing Price for the
Common Stock during the period beginning on the date of first
occurrence of the Event of Default and ending one day prior to the
Mandatory Prepayment Date (the "Default Amount") and all other amounts
payable hereunder shall immediately become due and payable, all
without demand, presentment or notice, all of which hereby are
expressly waived, together with all costs, including, without
limitation, legal fees and expenses, of collection, and the Holder
shall be entitled to exercise all other rights and remedies available
at law or in equity.  If the Borrower fails to pay the Default Amount
within five (5) business days of written notice that such amount is
due and payable, then the Holder shall have the right at any time, so
long as the Borrower remains in default (and so long and to the extent
that there are sufficient authorized shares), to require the Borrower,

                               15

<PAGE>

upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower equal to
the Default Amount divided by the Conversion Price then in effect.

                   ARTICLE IV. MISCELLANEOUS

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

             4.2    Notices.  Any notice herein required or permitted to
                    -------
be given shall be in writing and may be personally served or delivered
by courier or sent by United States mail and shall be deemed to have
been given upon receipt if personally served (which shall include
telephone line facsimile transmission) or sent by courier or three (3)
days after being deposited in the United States mail, certified, with
postage pre-paid and properly addressed, if sent by mail.  For the
purposes hereof, the address of the Holder shall be as shown on the
records of the Borrower; and the address of the Borrower shall be 7284
Palmetto Park Road, Suite 207, Boca Raton, FL 33433, facsimile number:
() [       ].  Both the Holder and the Borrower may change the address
for service by service of written notice to the other as herein
provided.

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

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

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

             4.6    Governing Law.  THIS NOTE SHALL BE ENFORCED, GOVERNED
                    -------------
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.  THE
BORROWER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED
STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK WITH RESPECT TO
ANY DISPUTE ARISING UNDER THIS NOTE, THE AGREEMENTS ENTERED INTO IN
CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR

                               16

<PAGE>

THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES
FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST
CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING.  NOTHING HEREIN
SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW.  BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE
JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY
OTHER LAWFUL MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE
ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES AND
EXPENSES, INCLUDING ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY
IN CONNECTION WITH SUCH DISPUTE.

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

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

             4.9    Damages Shares.  The shares of Common Stock that may
                    --------------
be issuable to the Holder pursuant to Sections 1.3 and 1.4(g) hereof
and pursuant to Section 2(c) of the Registration Rights Agreement
("Damages Shares") shall be treated as Common Stock issuable upon
conversion of this Note for all purposes hereof and shall be subject
to all of the limitations and afforded all of the rights of the other
shares of Common Stock issuable hereunder, including without
limitation, the right to be included in the Registration Statement
filed pursuant to the Registration Rights Agreement.  For purposes of
calculating interest payable on the outstanding principal amount

                               17

<PAGE>

hereof, except as otherwise provided herein, amounts convertible into
Damages Shares ("Damages Amounts") shall not bear interest but must be
converted prior to the conversion of any outstanding principal amount
hereof, until the outstanding Damages Amounts is zero.

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

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

             4.12   Notice of Corporate Events.  Except as otherwise
                    --------------------------
provided below, the Holder of this Note shall have no rights as a
Holder of Common Stock unless and only to the extent that it converts
this Note into Common Stock.  The Borrower shall provide the Holder
with prior notification of any meeting of the Borrower's shareholders
(and copies of proxy materials and other information sent to
shareholders).  In the event of any taking by the Borrower of a record
of its shareholders for the purpose of determining shareholders who
are entitled to receive payment of any dividend or other distribution,
any right to subscribe for, purchase or otherwise acquire (including
by way of merger, consolidation, reclassification or recapitalization)
any share of any class or any other securities or property, or to
receive any other right, or for the purpose of determining
shareholders who are entitled to vote in connection with any proposed
sale, lease or conveyance of all or substantially all of the assets of
the Borrower or any proposed liquidation, dissolution or winding up of
the Borrower, the Borrower shall mail a notice to the Holder, at least
twenty (20) days prior to the record date specified therein (or thirty
(30) days prior to the consummation of the transaction or event,
whichever is earlier), of the date on which any such record is to be
taken for the purpose of such dividend, distribution, right or other
event, and a brief statement regarding the amount and character of
such dividend, distribution, right or other event to the extent known
at such time.  The Borrower shall make a public announcement of any
event requiring notification to the Holder hereunder substantially
simultaneously with the notification to the Holder in accordance with
the terms of this Section 4.12.

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

                               18

<PAGE>

                     ARTICLE V. CALL OPTION

             5.1    Call Option.  Notwithstanding anything to the contrary
                    -----------
contained in this Article V, so long as (i) no Event of Default or
Trading Market Prepayment Event shall have occurred and be continuing,
(ii) the Borrower has a sufficient number of authorized shares of
Common Stock reserved for issuance upon full conversion of the Notes,
then at any time after the Issue Date, and (iii) the Common Stock is
trading at or below $.04 per share, the Borrower shall have the right,
exercisable on not less than ten (10) Trading Days prior written
notice to the Holders of the Notes (which notice may not be sent to
the Holders of the Notes until the Borrower is permitted to prepay the
Notes pursuant to this Section 5.1), to prepay all of the outstanding
Notes in accordance with this Section 5.1.  Any notice of prepayment
hereunder (an "Optional Prepayment") shall be delivered to the Holders
of the Notes at their registered addresses appearing on the books and
records of the Borrower and shall state (1) that the Borrower is
exercising its right to prepay all of the Notes issued on the Issue
Date and (2) the date of prepayment (the "Optional Prepayment
Notice").  On the date fixed for prepayment (the "Optional Prepayment
Date"), the Borrower shall make payment of the Optional Prepayment
Amount (as defined below) to or upon the order of the Holders as
specified by the Holders in writing to the Borrower at least one (1)
business day prior to the Optional Prepayment Date.  If the Borrower
exercises its right to prepay the Notes, the Borrower shall make
payment to the holders of an amount in cash (the "Optional Prepayment
Amount") equal to either (i) 125% (for prepayments occurring within
thirty (30) days of the Issue Date), (ii) 135% for prepayments
occurring between thirty-one (31) and sixty  (60) days of the Issue
Date, or (iii) 150% (for prepayments occurring after the sixtieth
(60th) day following the Issue Date), multiplied by the sum of (w) the
then outstanding principal amount of this Note plus (x) accrued and
unpaid interest on the unpaid principal amount of this Note to the
Optional Prepayment Date plus (y) Default Interest, if any, on the
amounts referred to in clauses (w) and (x) plus (z) any amounts owed
to the Holder pursuant to Sections 1.3 and 1.4(g) hereof or pursuant
to Section 2(c) of the Registration Rights Agreement (the then
outstanding principal amount of this Note to the date of payment plus
the amounts referred to in clauses (x), (y) and (z) shall collectively
be known as the "Optional Prepayment Sum"). Notwithstanding notice of
an Optional Prepayment, the Holders shall at all times prior to the
Optional Prepayment Date maintain the right to convert all or any
portion of the Notes in accordance with Article I and any portion of
Notes so converted after receipt of an Optional Prepayment Notice and
prior to the Optional Prepayment Date set forth in such notice and
payment of the aggregate Optional Prepayment Amount shall be deducted
from the principal amount of Notes which are otherwise subject to
prepayment pursuant to such notice.  If the Borrower delivers an
Optional Prepayment Notice and fails to pay the Optional Prepayment
Amount due to the Holders of the Notes within two (2) business days
following the Optional Prepayment Date, the Borrower shall forever
forfeit its right to redeem the Notes pursuant to this Section 5.1.

             5.2    Partial Call Option.  Notwithstanding anything to the
                    -------------------
contrary contained in this Article V, in the event that the Average
Daily Price of the Common Stock, as reported by the Reporting Service,
for each day of the month ending on any Determination Date is below
the Initial Market Price, the Borrower may, at its option, prepay a
portion of the outstanding principal amount of the Notes equal to the
principal amount hereof divided by thirty-six (36) plus one month's
interest.  The term "Initial Market Price" means shall mean the volume
weighted average price of the Common Stock for the five (5) Trading

                               19

<PAGE>

Days immediately preceding the Closing.  The term "Reporting Service"
means a reliable reporting service mutually acceptable to and
hereinafter designated by the Holder.

            [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                               20

<PAGE>

         IN WITNESS WHEREOF, Borrower has caused this Note to be
signed in its name by its duly authorized officer this 21st day of
April, 2006.

                                      MED GEN, INC.

                                      By:/s/Paul B. Kravitz
                                         ----------------------------
                                         Paul B. Kravitz
                                         Chairman and Chief
                                         Executive Officer

                               21

<PAGE>

                           EXHIBIT A

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

        The undersigned hereby irrevocably elects to convert
$__________ principal amount of the Note (defined below) into shares
of common stock, par value $.001 per share ("Common Stock"), of Med
Gen, Inc., a Nevada corporation (the "Borrower") according to the
conditions of the convertible Notes of the Borrower dated as of
April 21, 2006 (the "Notes"), as of the date written below.  If
securities are to be issued in the name of a person other than the
undersigned, the undersigned will pay all transfer taxes payable with
respect thereto and is delivering herewith such certificates.  No fee
will be charged to the Holder for any conversion, except for transfer
taxes, if any.  A copy of each Note is attached hereto (or evidence of
loss, theft or destruction thereof).

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

            Name of DTC Prime Broker:_______________________
            Account Number:_________________________________

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

            Name:__________________________________________
            Address:_______________________________________

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

            Date of Conversion:____________________________
            Applicable Conversion Price:___________________
            Number of Shares of Common Stock to be Issued Pursuant
            to Conversion of the Notes:____________________
            Signature:_____________________________________
            Name:__________________________________________
            Address:_______________________________________

                               22

<PAGE>

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

                               23

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