Document:

Unassociated Document

    

    LOAN
AGREEMENT

    

    THIS LOAN AGREEMENT (the
“Agreement”) is
dated as of the 30th day of November, 2009, by and between Emerald Dairy Inc., a
Nevada corporation, with an address at 11990 Market Street, Suite 205, Reston,
VA 20190 (the “Borrower”), and Wen
Sheng Liu, a resident of the People’s Republic of China, with an address at
S2-1-1002
Xing He Wan, Si Ji Xing He Lu,Chao Yang Bei Lu, Chao Yang District, Beijing,
China 100123 (the “Lender”).

    

    WITNESSETH:

    

    WHEREAS, the Borrower requires
funding in the amount of One Million Seven Hundred Fifty Thousand ($1,750,000)
Dollars for the purposes hereinafter set forth; and

    

    WHEREAS, the Borrower is
borrowing from the Lender One Million Seven Hundred Fifty Thousand ($1,750,000)
Dollars, in consideration for which the Borrower is issuing to the Lender a
non-negotiable promissory note.

    

    NOW, THEREFORE, it is agreed
as follows:

    

    1.           Commitment of Lender;
Borrowing Conditions.

    

    1.1         Commitment.  Subject to the
terms and conditions of this Agreement, the Lender hereby agrees to make a
one-year term loan (the “Loan”) to the
Borrower, in the principal amount of One Million Seven Hundred Fifty Thousand
($1,750,000) Dollars (the “Principal”).

    

    1.2         Promissory
Note.

    

    (a)         General.  The Loan shall be
evidenced by a non-negotiable promissory note, issued by the Borrower to the
Lender, in substantially the form of “Exhibit A” annexed
hereto (the “Note”), dated as of
even date herewith.  The Principal, and any accrued and unpaid
Interest (as defined in Section 1.2(b) below) shall be due and payable in full
on the one (1) year anniversary of the Closing Date (as defined in Section 6
below) (the “Maturity
Date”).

    

    (b)         Interest.

    

    (i)           The
Loan shall bear Interest at the rate of ten (10%) percent per annum, computed on
the basis of the actual number of days elapsed in a year of 360
days.  Any accrued and unpaid Interest shall be due and payable in
full on the Maturity Date.

    

    (ii)           Upon
the maturity of the Note, by acceleration or otherwise, and/or after judgment,
interest shall be payable at the rate of twelve (12%) percent per annum or at
the judgment rate, whichever is higher, until the obligation is paid in
full.

    
      
         

      

      
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    (c)           Prepayment.   The
Borrower may from time to time prepay any amount due under the Note, in whole or
in part, without penalty.  All payments made shall be applied first
toward the payment of Interest and the balance toward the reduction of the
Principal.

    

    2.           Representations
and Warranties of the Borrower.  The Borrower
makes the following representations and warranties:

    

    2.1         Organization
and Authorization.  The Borrower (a)
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Nevada, (b) is duly authorized to transact business and is
in good standing in every other jurisdiction where the failure to qualify to do
business would have a material adverse effect upon the Borrower, and (c) is duly
authorized and empowered to create, grant and issue the Note, and to execute and
deliver this Agreement.  The Borrower has the authority to own, lease
and operate its assets, and to carry on its business as presently
conducted.  All action on the part of the Borrower requisite for the
due creation, issuance and delivery of this Agreement and the Note has been duly
and effectively taken.  This Agreement and the Note, upon the
granting, issuance and delivery thereof, will be the valid, binding and
enforceable obligations of the Borrower in accordance with their respective
terms and compliance herewith will not violate any provision of law, the
Articles of Incorporation or Bylaws of the Borrower, or any agreement, judgment,
order or decree to which the Borrower is a party or otherwise bound, subject to
applicable bankruptcy, insolvency, or reorganization, moratorium or other
similar laws relating to or affecting generally the enforcement of creditors’
rights.  No approval or consent of any governmental agency or body of
the United States or any state thereof or of any other entity or person is
required as of the Closing Date for the legal and valid execution and delivery
by the Borrower of this Agreement, the Note pursuant to this Agreement, or the
performance of any obligation of the Borrower hereunder.

    

    2.2         Litigation.  There is no
litigation, legal or administrative proceeding, investigation or other action of
any nature pending or, to the knowledge of Borrower, threatened, against or
affecting the Borrower and/or its subsidiaries which: (a) involves the
possibility of any judgments or liabilities aggregating more than Fifty Thousand
($50,000) Dollars not fully covered by insurance, or (b) which may materially
and adversely affect the assets of the Borrower or the right of the Borrower to
carry on its business as now conducted or as contemplated.

    

    2.3         Taxes.  All tax returns
of the Borrower and its subsidiaries, if any, which are shown to be due and
payable thereon have been paid.  The Borrower does not know of any
ongoing tax audit, proposed tax deficiency, assessment, charge or levy against
it, the payment of which is not adequately provided for on the books of the
Borrower.

    

    2.4         Full
Disclosure.  Neither this
Agreement, nor any of the exhibits or schedules attached hereto, contain any
statement that is false or misleading with respect to any material fact and do
not omit to state a material fact necessary in order to make the statements
therein not false or misleading.

    
      
         

      

      
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    2.5           Compliance
with Instruments; etc.  The Borrower is
not: (a) in default under any indenture, agreement or instrument to which it is
a party or by which it is bound, (b) in violation of its Articles of
Incorporation, Bylaws or of any applicable law, (c) in default with respect to
any order, writ, injunction or decree of any court, administrative agency or
arbitrator, or (d) in default under any order, license, regulation or demand of
any government agency, which default or violation would materially and adversely
affect the business, properties, condition (financial or otherwise) or business
prospects of the Borrower.

    

    3.           Affirmative
Covenants of the Borrower.  Except as
specifically set forth herein, so long as any part of the Principal or Interest
remains outstanding, without the prior written consent of the
Lender:

    

    3.1           Discharge
Taxes and Indebtedness.  The Borrower will
pay and discharge, as they become due, all taxes, assessments, debts, claims and
other governmental or non-governmental charges lawfully imposed upon or incurred
by it or the properties and assets of the Borrower, except taxes, assessments,
debts, claims and charges contested in good faith in appropriate proceedings for
which the Borrower shall have set aside adequate reserves for the payment of
such tax, assessment, debt, claim or charge.  The Borrower shall
provide the Lender, upon the Lender’s request, evidence of payment of such
taxes, assessments, debts, claims and charges satisfactory to the
Lender.

    

    3.2           Insurance.  The Borrower
shall maintain such insurance on its properties and assets with financially
sound and responsible insurance companies, in such amounts as from time to time
are reasonably required by the Lender.  The Borrower shall: (a)
deliver to the Lender, upon its request, a detailed list of insurance then in
effect, stating (i) the names of the insurance companies, (ii) the amounts and
rates of the insurance, (iii) dates of expiration thereof and the properties and
risks covered thereby; and (b) upon request, provide to the Lender copies of all
insurance policies.

    

    3.3           Maintain
Properties.  The Borrower
shall maintain in full force and effect its corporate existence, rights and
franchises and all material terms of licenses and other rights to use licenses,
trademarks, tradenames, service marks, copyrights, patents or processes owned or
possessed by it and necessary to the conduct of its business.  The
Borrower will maintain, preserve and keep all of its properties, equipment and
assets in good repair, working order and condition, and make, or cause to be
made, all necessary or appropriate repairs, renewals, replacements,
substitutions, additions, betterments and improvements thereto.

    

    3.4           Furnish
Information.  Promptly on
request of the Lender, the Borrower will furnish such information as may
reasonably be necessary to determine whether: (a) the Borrower is complying with
its covenants and agreements contained in this Agreement, or (b) an Event of
Default (as hereunder defined) has occurred hereunder.

    

    3.5           Additional
Documentation.  In furtherance of
the transactions herein contemplated, the Borrower will execute and cause to be
delivered to the Lender such other certificates, documents, statements,
agreements and opinions as may be reasonably requested by the Lender during the
term of this Agreement.

    
      
         

      

      
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    3.6         Notice of
Adverse Change.  The Borrower
shall promptly give notice to the Lender (but in any event within seven (7)
business days) after becoming aware of the existence of any condition or event
which constitutes, or the occurrence of: (a) any Event of Default as hereunder
defined; or (b) the institution or threatening of institution of an action, suit
or proceeding against the Borrower before any court, administrative agency or
arbitrator, which, if adversely decided, could materially adversely affect the
business, prospects, properties, financial condition or results of operations of
the Borrower, whether or not arising in the ordinary course of
business.  Any notice given hereunder shall specify the nature and
period of existence of the condition, event, information, development or
circumstance, the anticipated effect thereof and what actions the Borrower has
taken and/or proposes to take with respect thereto.

    

    3.8         Compliance
With Agreements; Compliance With Laws.  The Borrower
shall comply with the terms and conditions of all material agreements,
commitments or instruments to which the Borrower is a party or by which it may
be bound.  The Borrower shall duly comply in all respects with any
relevant laws, ordinances, rules and regulations of any foreign, federal, state
or local government or any agency thereof, or any writ, order or decree, and
conform to all valid requirements of governmental authorities relating to the
conduct of its business, properties or assets.

    

    3.7         Use of
Proceeds.  The parties agree
that the Borrower intends to apply substantially all of the proceeds of the Loan
toward the cost of completing the construction and equipping of its new
production facility in Hailun City, Heilongjiang Province, PRC.

    

    4.           Defaults And
Remedies.

    

    4.1         Events of
Default.  Any one of the
following events shall be considered an event of default (“Event of Default”) as
that term is used herein:

    

    (a)           If
the Borrower defaults in the payment of Principal or Interest on the Note after
the same shall become payable as therein or herein set forth; or

    

    (b)           If
any representation or warranty made by the Borrower herein proves to have been
untrue in any material respect as of the Closing Date, or any information,
statement, certificate or data furnished hereunder proves to have been untrue in
any material respect as of the date as of which the facts therein set forth were
stated or certified; or

    

    (c)           Except
for a default covered by clauses (a), (b) and (d) hereof, if a default shall be
made in the due observance or performance of any other covenant, affirmative or
negative, or condition to be kept or performed by the Borrower contained in this
Agreement; or

    
      
         

      

      
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    (d)           If
the Borrower shall (i) sell all or substantially all of its assets, or (ii) make
a general assignment for the benefit of creditors, or (iii) apply for or consent
to the appointment of a receiver, trustee, or liquidator of the Borrower or of
all or a substantial part of its assets, or (iv) be adjudicated a bankrupt, or
(v) file a voluntary petition in bankruptcy or a voluntary petition seeking
reorganization or to effect a plan or other arrangement with creditors or file a
petition or answer seeking to take advantage of any law (whether federal or
state) relating to the relief of debtors.

    

    4.2         Acceleration
of Loan.  During the continuation of any Event of Default
specified in Section 4.1 hereof, the Lender or any other holder of the Note, may
by notice in writing delivered to the Borrower, declare the entire outstanding
Principal and the Interest due and payable, and the said Principal and Interest
shall thereupon become and be immediately due and payable without presentment,
demand, protest, notice of protest or other notice of dishonor of any kind, all
of which are hereby expressly waived by the Borrower.

    

    4.3         Enforcement
of Rights.  Upon the happening of any Event of Default
specified in Section 4.1 hereof, the Lender or any other holder of the Note, may
proceed to protect and enforce his, her or its rights with respect to the Note
and the other documents referred to herein either by suit in equity or action at
law, and proceed to obtain judgment or any other relief whatsoever.

    

    4.4         Payment
of Expenses.   The Borrower shall pay all expenses, court
costs and attorneys' fees which may be incurred by the Lender or any other
holder of the Note in connection with or arising out of any Event of Default
hereunder.

    

    5.           Conditions
Precedent.  The obligations
of the Lender hereunder shall be subject to the performance by the Borrower of
all its agreements theretofore to be performed hereunder.  On the
Closing Date, the Lender shall receive in form and content satisfactory to
Lender and its counsel, an originally executed Note and such other documents or
instruments as the Lender may reasonably request.

    

    6.           Closing.  The closing of
the Agreement and the issuance of the Note to the Lender shall occur at the
offices of Blank Rome, LLP, Chrysler Building, 405 Lexington Ave., New York, NY
10174 on the date hereof (the "Closing Date"), or at
such other time or place as the parties shall agree.

    

    7.           Miscellaneous.

    

    7.1         Representation
to Survive Closing.  All warranties, representations, covenants
and agreements made by the Borrower herein shall survive the Closing
Date.

    

    7.2         Notice.  All
notices, requests, demands and communications under or in respect hereof shall
be deemed to have been duly given and made if in writing (including fax) if
delivered by hand or left at or posted by pre-paid registered or certified mail
(airmail if dispatched to a foreign county) to the party concerned at its
address first set forth above.  Service shall be deemed to be
effective: (a) so far as delivery by hand is concerned when handed to the
recipient or left at the recipient's address; and (b) by post three days after
posting (seven days if sent to a foreign country).  The said addresses
shall continue in force until alternatives are notified and receipt of such
notification has been acknowledged.

    
      
         

      

      
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    7.3           Binding
upon Successors.  All covenants and agreements herein contained
by or on behalf of the Borrower shall bind its successors and assigns and shall
inure to the benefit of the Lender and its successors and
assigns.  Borrower may not assign this Agreement or any rights or
duties hereunder without Lender’s prior written consent and any prohibited
assignment shall be absolutely void.  Lender reserves the right to
sell, assign, transfer, negotiate, or grant participation in all or any part of,
or any interest in Lender's rights and benefits hereunder; provided, that Lender
shall, for informational purposes but not as a requirement, notify the Borrower
of the identity of all other assignees or participants who have acquired an
ownership interest in the Note, and upon conversion, in the equity of the
Borrower as a result thereof.  In connection with any such assignment
or participation, the Lender may disclose all documents and information which
the Lender now or hereafter may have relating to Borrower’s
business.

    

    7.4           Counterparts.  This
Agreement may be executed in counterparts at one time or at different times and,
irrespective of the date of execution between the parties named herein, it shall
be deemed executed as of the date first above written.

    

    7.5           Governing
Law; Jurisdiction.  This Agreement and the performance of the
parties hereunder shall be construed and interpreted in accordance with the
internal laws of the State of New York, wherein it was negotiated and executed,
and the parties hereunder consent and agree that the state and federal courts
which sit in the State of New York and the County of New York shall have
exclusive jurisdiction with respect to all controversies and disputes arising
hereunder.

    

    7.6           Severability.  If
any provision of this Agreement is held to be unenforceable for any reason, the
remainder of this Agreement shall, nevertheless, remain in full force and
effect.

    

    7.7           No Waiver
of Rights.  No course of dealing on the part of the Lender, nor
any failure or delay on the part of the Lender with respect to the exercise of
any right, power or privilege given or granted hereunder, the Note or any other
document or instrument executed in connection herewith shall operate as a waiver
thereof as to any future defaults, or any single or partial exercise by the
Lender of any right, power or privilege granted or contained herein or therein
shall preclude the Lender from later or further exercise of any right, power or
privilege as to any future defaults.  The rights and remedies of the
Lender are cumulative and not exclusive of any other remedies under
law.

    

    7.8           No
Broker.  Each of the Lender and Borrower represents and
warrants to each other that they have not employed or dealt with any broker in
connection with any transactions contemplated by this Agreement and each of the
Lender and the Borrower shall indemnify and hold each other harmless from and
against any and all claims at any time heretofore or hereafter made for broker’s
or finder’s fees or commissions, which claim or claims arise from, out of, or in
connection with any of the transactions with any of the transactions
contemplated by this Agreement.

    
      
         

      

      
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    7.9           Construction.  Unless
the context of this Agreement clearly requires otherwise, references to the
plural include the singular, references to the singular include the plural, the
term "including" is not limiting, and the term "or" has, except where otherwise
inducted, the inclusive meaning represented by the phrase
"and/or."  The words, "hereof," "herein," "hereby," "hereunder," and
similar terms in this Agreement refer to this Agreement as a whole and not to
any particular provision of this Agreement.  Section, subsection,
paragraph, clause, schedule, and exhibit references are to this Agreement unless
otherwise specified.  Any reference in this Agreement to this
Agreement shall include all alterations, amendments, changes, extension,
modifications, renewals, replacement, substitutions and supplements, thereto and
thereof, as applicable.

    

    7.10           Indemnification.
In the event the Lender is required to appear before, or participate in, or
become involved with, any proceeding initiated by or brought with respect to the
Borrower by any government or administrative agency, federal, state or local,
investigating the business operations or activities of the Borrower, the Lender
shall be reimbursed by the Borrower for all expenses incurred by it in
connection therewith, including, but not limited to, attorney's
fees.  Additionally, the Borrower will indemnify and hold harmless the
Lender from each and every liability, loss, obligation, cost or expense which
may be imposed or arising out of: (a) any such proceeding, or (b) any of the
transactions evidenced hereby, except for the Lender's gross negligence or
willful misconduct.

    

    7.11           Confidentiality.  The
Borrower agrees that it will not disclose, and will not include in any public
announcement, the name of the Lender, unless expressly agreed to by the Lender
unless and until disclosure is required by law or regulations, and then, only to
the extent of such requirement.

    

    7.12           Term.  This
Agreement shall become effective upon execution and delivery hereof by Borrower
and Lender and shall continue in full force and effect until all amount of
principal and interest on the Note have been paid in full.

    

    [THE
REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY]

    
      
         

      

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

    

    
      
        	
                BORROWER:

              
	 
      
	
                EMERALD
      DAIRY INC.

              
	 
      
	
                By:

              	
                 /s/ Shu Kaneko

              
	 
      	
                 Name:
      Shu Kaneko

              
	 
      	
                 Title:
      Chief Financial Officer

              
	 
      
	
                LENDER:

              
	 
      
	
                 /s/ Wen Sheng Liu

              
	
                Wen
      Sheng Liu

              

      

    

    
      
         

      

      
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    “EXHIBIT
A”

    

    Form
of Promissory Note

    
      
         

      

      
        - 9
-Unassociated Document

    Exhibit
4.1

     

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

     

    MedClean
Technologies, Inc.

     

    Warrant
To Purchase Common Stock

     

    
      	
              Warrant
      No.: 2009-1

            	
              Issuance
      Date:  December 4, 2009 

            

    

    

    Number of
Warrant Shares: 262,987,013

    

    Initial
Exercise Price:  $0.038 per share

    

    MedClean
Technologies, Inc., a Delaware corporation (“Company”), hereby
certifies that, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Socius CG II, Ltd., a Bermuda exempted
company, the holder hereof or its designees or assigns (“Holder”), is
entitled, subject to the terms set forth herein, to purchase from the Company,
at the Exercise Price then in effect, upon exercise of this Warrant to Purchase
Common Stock (including any Warrant to Purchase Common Stock issued in exchange,
transfer or replacement hereof, the “Warrant”), at any
time or times after issuance of the Warrant and until 11:59 p.m. Eastern time on
the fifth anniversary of the Tranche Notice Date for each applicable Warrant
Tranche, subject to acceleration pursuant to Section 3.3 hereof,
that number of duly authorized, validly issued, fully paid and non-assessable
shares of Common Stock set forth above and as adjusted herein (the “Warrant Shares”);
provided, however, that this
Warrant may only be exercised, from time to time, for that number of shares of
Common Stock with an Aggregate Exercise Price equal to 135% of the cumulative
amount of Tranche Purchase Prices under Tranche Notices delivered prior to or on
the date of exercise.  Except as otherwise defined herein, capitalized
terms in this Warrant shall have the meanings set forth in ARTICLE 13
hereof.

     

    
      
         

      

      
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    This
Warrant is issued pursuant to the Preferred Stock Purchase Agreement dated
December 4, 2009, by and among the Company and the investor referred to therein
(the “Purchase Agreement”).

     

    This
Warrant shall consist of and be exercisable in tranches (each, a “Warrant Tranche”),
with a separate tranche being created upon each delivery of a Tranche Notice
under the Purchase Agreement.  Each Warrant Tranche will grant to the
Holder the right, for a five-year period commencing on the applicable Tranche
Notice Date, to exercise the Warrant and purchase up to a number of shares of
Common Stock with an Aggregate Exercise Price equal to 135% of the Tranche
Purchase Price for the applicable Tranche Notice.  Attached to this
Warrant is a schedule (the “Warrant Tranche
Schedule”) that sets forth the issuance date, the number of Warrant
Shares, and the Exercise Price for each Warrant Tranche.  The Warrant
Tranche Schedule shall be updated by the Company, with an updated copy provided
to the Holder, promptly following each exercise of this Warrant.  No
portion of this Warrant shall vest or be exercisable except under the Warrant
Tranches.

     

    ARTICLE 5

    EXERCISE OF
WARRANT.

     

    5.1         Mechanics
of Exercise.

     

    5.1.1     Subject
to the terms and conditions hereof, this Warrant may be exercised by the Holder
on any day on or after the Issuance Date, in whole or in part, by (i) delivery
of a written notice to the Company, in the form attached hereto as Appendix 1 (the
“Exercise
Notice”), of the Holder’s election to exercise this Warrant, and (ii)
payment to the Company of an amount equal to the applicable Exercise Price
multiplied by the number of Warrant Shares as to which this Warrant is being
exercised (the “Aggregate Exercise
Price”), with such payment made, at Investor’s option, (x) in cash or by
wire transfer of immediately available funds, (y) by the issuance and delivery
of a recourse promissory note substantially in the form attached hereto as Appendix 2 (each, a
“Recourse
Note”), or (z) if applicable, by cashless exercise pursuant to Section
1.3.

     

    5.1.2     The
Holder shall not be required to deliver the original Warrant in order to effect
an exercise hereunder.  Execution and delivery of the Exercise Notice
with respect to less than all of the Warrant Shares shall have the same effect
as cancellation of the original Warrant and issuance of a new Warrant evidencing
the right to purchase the remaining number of Warrant Shares.

     

    
      
         

      

      
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    5.1.3     On
the Trading Day on which the Company has received each of the Exercise Notice
and the Aggregate Exercise Price (the “Exercise Delivery
Documents”) from the Holder by 6:30 p.m. Eastern time, or on the next
Trading Day if the Exercise Delivery Documents are received after 6:30 p.m.
Eastern time or on a non-Trading Day (in each case, the “Exercise Delivery
Date”), the Company shall transmit (i) a facsimile acknowledgment of
confirmation of receipt of the Exercise Delivery Documents to the Holder, and
(ii) an electronic copy of its share issuance instructions to the Holder and to
the Company’s transfer agent (the “Transfer Agent”),
with such transmissions to comply with the notice provisions contained in Section 6.2 of the
Purchase Agreement, and shall instruct and authorize the Transfer Agent to
credit such aggregate number of freely-tradable Warrant Shares to which the
Holder is entitled to receive upon such exercise to the Holder’s or its
designee’s balance account with The Depository Trust Company (DTC) through the
Fast Automated Securities Transfer (FAST) Program through its Deposit Withdrawal
Agent Commission (DWAC) system, with such credit to occur no later than 12:00
p.m. Eastern Time on the Trading Day following the Exercise Delivery Date, time
being of the essence; provided, however, that if the
Warrant Shares are not credited as DWAC Shares by 12:00 p.m. Eastern Time on the
Trading Day following the Exercise Delivery Date, then the Tranche Closing Date
applicable to the Exercise Notice shall be extended by one Trading Day for each
Trading Day that timely credit of DWAC Shares is not made.

     

    5.1.4     Upon
delivery of the Exercise Delivery Documents, the Holder shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised, irrespective of the date
such Warrant Shares are credited to the Holder’s DTC account.  Any
Warrant delivered in connection with a Tranche Notice and exercised by Holder
shall be deemed exercised (i) on the Tranche Notice Date, if exercised by 6:30
p.m. Eastern time on the Tranche Notice Date, or (ii) on the next Trading Day,
if exercised by Investor after 6:30 p.m. Eastern Time on the Tranche Notice Date
or on any other date, in each case with Holder deemed to be a holder of record
as of such date.

     

    5.1.5     If
this Warrant is exercised and the number of Warrant Shares represented by this
Warrant is greater than the number of Warrant Shares being acquired upon such
exercise, then the Company shall, as soon as practicable and in no event later
than one Trading Day after such exercise, update the Tranche Exercise Schedule
to reflect the revised number of Warrant Shares for which this Warrant is then
exercisable and deliver a copy of the updated Tranche Exercise Schedule to the
Holder.  No fractional shares of Common Stock are to be issued upon
the exercise of this Warrant, but rather the number of shares of Common Stock to
be issued shall be rounded up to the nearest whole number.  The
Company shall pay any and all taxes which may be payable with respect to the
issuance and delivery of Warrant Shares upon exercise of this
Warrant.

     

    5.2     Adjustments
to Exercise Price and Number of Shares.  In addition to other
adjustments specified herein, the Exercise Price of this Warrant and the number
of shares of Common Stock issuable upon exercise shall be adjusted as
follows:

     

    5.2.1     Exercise
Price.  The “Exercise Price” per
share of Common Stock underlying this Warrant, subject to further adjustment as
provided herein, shall be as follows:  (i) with
respect to the portion of this Warrant issued on the Effective Date and until
the first Tranche Notice Date, the amount per Warrant Share set forth on the
face of this Warrant, which is equal to Closing Bid Price for the Common Stock
on the Trading Day prior to the Effective Date, and (ii) with respect to the
portion of this Warrant that becomes exercisable on any Tranche Notice Date
(including the first Tranche Notice Date), an amount per Warrant Share equal to
the Closing Bid Price of a share of Common Stock on such Tranche Notice
Date.

     

    
      
         

      

      
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    5.2.2     Number of
Shares.  The number of Warrant Shares underlying this Warrant
and each Warrant Tranche, subject to further adjustment as provided herein,
shall be as follows: (i) with respect to the portion of this Warrant issued on
the Effective Date and until the first Tranche Notice Date, the number of shares
set forth on the face of this Warrant, which is a number of shares of Common
Stock equal to the Maximum Placement multiplied by 135%, with the resulting sum
divided by the Closing Bid Price of a share of Common Stock on the Trading Day
prior to the Effective Date, and (ii) with respect to the portion of this
Warrant issued on any Tranche Notice Date including the first Tranche Notice
Date, a number of shares equal to the Tranche Purchase Price set forth in the
applicable Tranche Notice multiplied by 135%, with the resulting sum divided by
the Closing Bid Price of a share of Common Stock on the Tranche Notice
Date.  For example, if the Tranche Purchase Price is $1,000,000 and
the Closing Bid Price is $0.50, then the number of Warrant Shares underlying
that Warrant Tranche shall be $1,000,000 x 135% = $1,350,000 divided by $0.50 =
2,700,000 shares of Common Stock.  On each Tranche Notice Date, the
number of Warrant Shares underlying the related Warrant Tranche shall vest and
become exercisable, and the aggregate number of Warrant Shares underlying this
Warrant that are currently exercisable shall automatically adjust up or down to
account for the change in the number of Warrant Shares covered by the new
Warrant Tranche and for any Warrant Shares issued upon any prior or simultaneous
exercise of this Warrant.  If at any time the Holder reasonably
believes that the number of Warrant Shares included in the Registration
Statement is not sufficient to cover all exercises under this Warrant, then the
Company shall amend such Registration Statement to include the additional number
of Warrant Shares that may be required to provide such coverage.

     

    5.3     Cashless
Exercise.  Notwithstanding anything contained herein to the
contrary, if at any time there is not a current, valid and effective
registration statement covering the Warrant Shares that are the subject of the
Exercise Notice (the “Unavailable Warrant
Shares”), the Holder may, in its sole discretion, exercise this Warrant
in whole or in part and, in lieu of making the cash payment otherwise
contemplated to be made to the Company upon such exercise in payment of the
Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares
of Common Stock determined according to the following formula (a “Cashless
Exercise”):

     

    Net
Number =  (B-C) x
A

     B

    

    For
purposes of the foregoing formula:

    

    A = the
total number of shares with respect to which this Warrant is then being
exercised.

    

    B = the
average of the Closing Sale Prices of the shares of Common Stock (as reported by
Bloomberg) for the five (5) consecutive Trading Days ending on the date
immediately preceding the date of the Exercise Notice.

    
      
         

      

      
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    C = the
Exercise Price then in effect for the applicable Warrant Shares at the time of
such exercise.

     

    5.4     Company’s
Failure to Timely Deliver Securities.  If the Company
shall fail for any reason or for no reason to credit to the Holder’s balance
account with DTC, by 12:00 p.m. Eastern time on the Trading Day following the
Exercise Delivery Date, the number of shares of Common Stock to which the Holder
is entitled upon the Holder’s exercise of this Warrant, then, in addition to all
other remedies available to the Holder, the Company shall pay in cash to the
Holder on each day after such Trading Day that the issuance of such shares of
Common Stock is not timely effected an amount equal to 1.5% of the product of
(A) the sum of the number of shares of Common Stock not issued to the Holder on
a timely basis and to which the Holder is entitled and (B) the Closing Bid Price
of the shares of Common Stock on the Trading Day immediately preceding the last
possible date which the Company could have issued such shares of Common Stock to
the Holder without violating Section
1.1.  In addition to the foregoing, if after the Company’s
receipt of an Exercise Notice the Company shall fail to timely (pursuant to
Section 1.1.3
hereof) credit the Holder’s balance account with DTC for the number of shares of
Common Stock to which the Holder is entitled upon the Holder’s exercise
hereunder, and the Holder purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Holder of
shares of Common Stock issuable upon such exercise that the Holder anticipated
receiving from the Company, then the Company shall, within one Trading Day after
the Holder’s request and in the Holder’s discretion, either (i) pay cash to the
Holder in an amount equal to the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased (the
“Buy-In
Price”), at which point the Company’s obligation to credit such Holder’s
balance account with DTC for the number of Warrant Shares to which the Holder is
entitled upon the Holder’s exercise hereunder and to issue such Warrant Shares
shall terminate, or (ii) promptly honor its obligation to credit such Holder’s
balance account with DTC for the number of Warrant Shares to which the Holder is
entitled upon the Holder’s exercise hereunder and pay cash to the Holder in an
amount equal to the excess (if any) of the Buy-In Price over the product of (A)
such number of shares of Common Stock sold by Holder in satisfaction of its
obligations, times (B) the Closing Bid Price on the date of
exercise.

     

    5.5     Exercise
Limitation.  Notwithstanding
any other provision, at no time may the Holder (a) exercise this Warrant such
that the number of Warrant Shares to be received pursuant to such exercise
exceeds 135.0% of the aggregate of all Tranche Purchase Prices under and in
connection with all Tranche Notices delivered pursuant to the Purchase Agreement
prior to the date of exercise; or (b) exercise this Warrant such that the number
of Warrant Shares to be received pursuant to such exercise, aggregated with all
other shares of Common Stock then owned by the Holder beneficially or deemed
beneficially owned by the Holder, would result in the Holder owning more than
4.99% of all of such Common Stock as would be outstanding on the date of
exercise, as determined in accordance with Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder.  In addition, as of any
date, the aggregate number of shares of Common Stock into which this Warrant is
exercisable within 61 days, together with all other shares of Common Stock then
beneficially owned (as such term is defined in Rule 13(d) under the Exchange
Act) by Holder and its affiliates, shall not exceed 9.99% of the total
outstanding shares of Common Stock as of such date.

     

    
      
         

      

      
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    5.6     Activity
Restrictions.  For so long as
Holder or any of its affiliates holds this Warrant or any Warrant Shares,
neither Holder nor any affiliate will:  (i) vote any shares of Common
Stock owned or controlled by it, solicit any proxies, or seek to advise or
influence any Person with respect to any voting securities of the Company; (ii)
engage or participate in any actions, plans or proposals which relate to or
would result in (a) acquiring additional securities of the Company, alone or
together with any other Person, which would result in beneficially owning or
controlling more than 9.99% of the total outstanding Common Stock or other
voting securities of the Company, (b) an extraordinary corporate transaction,
such as a merger, reorganization or liquidation, involving Company or any of its
subsidiaries, (c) a sale or transfer of a material amount of assets of the
Company or any of its subsidiaries, (d) any change in the present board of
directors or management of the Company, including any plans or proposals to
change the number or term of directors or to fill any existing vacancies on the
board, (e) any material change in the present capitalization or dividend policy
of the Company, (f) any other material change in the Company’s business or
corporate structure, including but not limited to, if the Company is a
registered closed-end investment company, any plans or proposals to make any
changes in its investment policy for which a vote is required by Section 13 of
the Investment Company Act of 1940, (g) changes in the Company’s charter, bylaws
or instruments corresponding thereto or other actions which may impede the
acquisition of control of the Company by any Person, (h) causing a class of
securities of the Company to be delisted from a national securities exchange or
to cease to be authorized to be quoted in an inter-dealer quotation system of a
registered national securities association, (i) a class of equity securities of
the Company becoming eligible for termination of registration
pursuant  to Section 12(g)(4) of the Act, or (j) any action,
intention, plan or arrangement similar to any of those enumerated above; or
(iii) request the Company or its directors, officers, employees, agents or
representatives to amend or waive any provision of this Section
1.5.

     

    5.7     Disputes.  In the case of a
dispute as to the determination of the Exercise Price or the arithmetic
calculation of the Warrant Shares, the Company shall promptly issue to the
Holder the number of Warrant Shares that are not disputed and resolve such
dispute in accordance with Section
12.

     

    5.8     Insufficient
Authorized Shares.  If at any time
while any portion of this Warrant remains outstanding the Company does not have
a sufficient number of authorized and unreserved shares of Common Stock to
satisfy its obligation to reserve for issuance upon exercise of this Warrant at
least a number of shares of Common Stock equal to 110% of the number of shares
of Common Stock as shall from time to time be necessary to effect the exercise
of the portion of the Warrant then outstanding (the “Required Reserve
Amount”) (an “Authorized Share
Failure”), then the Company shall immediately take all action necessary
to increase the Company’s authorized shares of Common Stock to an amount
sufficient to allow the Company to reserve the Required Reserve Amount for the
portion of the Warrant then outstanding.  Without limiting the
generality of the foregoing sentence, as soon as practicable after the date of
the occurrence of an Authorized Share Failure, but in no event later than 90
days after the occurrence of such Authorized Share Failure, the Company shall
hold a meeting of its stockholders for the approval of an increase in the number
of authorized shares of Common Stock.  In connection with such
meeting, the Company shall provide each stockholder with a proxy statement and
shall use its best efforts to solicit its stockholders’ approval of such
increase in authorized shares of Common Stock and to cause its board of
directors to recommend to the stockholders that they approve such
proposal.

     

    
      
         

      

      
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    ARTICLE 6

    ADJUSTMENT UPON SUBDIVISION
OR COMBINATION OF COMMON STOCK

     

    If the
Company at any time on or after the Issuance Date subdivides (by any stock
split, stock dividend, recapitalization or otherwise) one or more classes of its
outstanding shares of Common Stock into a greater number of shares, the Exercise
Price in effect immediately prior to such subdivision will be proportionately
reduced and the number of Warrant Shares will be proportionately
increased.  If the Company at any time on or after the Issuance Date
combines (by combination, reverse stock split or otherwise) one or more classes
of its outstanding shares of Common Stock into a smaller number of shares, the
Exercise Price in effect immediately prior to such combination will be
proportionately increased and the number of Warrant Shares will be
proportionately decreased.  Any adjustment under this ARTICLE 2 shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

     

    ARTICLE 7

    PURCHASE RIGHTS; FUNDAMENTAL
TRANSACTIONS

     

    7.1     Purchase
Rights.  In addition to
any adjustments pursuant to ARTICLE 2 above, if
at any time the Company grants, issues or sells any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property
pro rata to the record holders of any class of shares of Common Stock (the
“Purchase
Rights”), then the Holder will be entitled to acquire, upon the terms
applicable to such Purchase Rights, the aggregate Purchase Rights which the
Holder could have acquired if the Holder had held the number of shares of Common
Stock acquirable upon complete exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) 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
shares of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights.

     

    7.2     Subsequent
Equity Sales. In addition to any adjustments made pursuant to ARTICLE 2 above, if
the Company or any Subsidiary thereof, as applicable, at any time while this
Warrant is outstanding, shall sell or grant any option to purchase, or sell or
grant any right to reprice, or otherwise dispose of or issue (or announce any
offer, sale, grant or any option to purchase or other disposition) any Common
Stock or Common Stock Equivalents entitling any Person to acquire shares of
Common Stock, at an effective price per share less than the then Exercise Price
(such lower price, the “Base Share Price” and
such issuances, collectively, a “Dilutive Issuance”),
then the Exercise Price shall be reduced and only reduced to equal the Base
Share Price and the number of Warrant Shares issuable hereunder shall be
increased such that the aggregate Exercise Price payable hereunder, after taking
into account the decrease in the Exercise Price, shall be equal to the aggregate
Exercise Price prior to such adjustment.  Such adjustment shall be
made whenever such Common Stock or Common Stock Equivalents are
issued.  If the holder of the Common Stock or Common Stock Equivalents
so issued shall at any time, whether by operation of purchase price adjustments,
reset provisions, floating conversion, exercise or exchange prices or otherwise,
or due to warrants, options or rights per share which are issued in connection
with such issuance, be entitled to receive shares of Common Stock at an
effective price per share which is less than the Exercise Price, such issuance
shall be deemed to have occurred for less than the Exercise Price on such date
of the Dilutive Issuance.  Notwithstanding the foregoing, no
adjustments shall be made, paid or issued under this Section 3.2 in
respect of an Exempt Issuance, subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of the Purchase Agreement. The
Company shall notify the Holder in writing, no later than the Trading Day
following the issuance of any Common Stock or Common Stock Equivalents subject
to this Section
3.2, indicating therein the applicable issuance price, or applicable
reset price, exchange price, conversion price and other pricing terms (such
notice the “Dilutive
Issuance Notice”).  For purposes of clarification, whether or
not the Company provides a Dilutive Issuance Notice pursuant to this Section 3.2, upon the
occurrence of any Dilutive Issuance, after the date of such Dilutive Issuance
the Holder is entitled to receive a number of Warrant Shares based upon the Base
Share Price regardless of whether the Holder accurately refers to the Base Share
Price in the Notice of Exercise.

     

    
      
         

      

      
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    7.3     Fundamental
Transactions.  The
Company shall not enter into or be party to a Fundamental Transaction unless the
Successor Entity assumes in writing all of the obligations of the Company under
this Warrant in accordance with the provisions of this Section 3.3 pursuant
to written agreements in form and substance satisfactory to the Required Holders
and approved by the Required Holders prior to such Fundamental Transaction,
including agreements to deliver to each Holder of this Warrant in exchange for
such Warrant a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant,
including, without limitation, an adjusted exercise price equal to the value for
the shares of Common Stock reflected by the terms of such Fundamental
Transaction, and exercisable for a corresponding number of shares of capital
stock equivalent to the shares of Common Stock acquirable and receivable upon
exercise of this Warrant (without regard to any limitations on the exercise of
this Warrant) prior to such Fundamental Transaction, and satisfactory to the
Required Holders.  Upon the occurrence of any Fundamental Transaction,
the Successor Entity shall succeed to, and be substituted for (so that from and
after the date of such Fundamental Transaction, the provisions of this Warrant
referring to the “Company” shall refer instead to the Successor Entity), and may
exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein.  Upon
consummation of the Fundamental Transaction, the Successor Entity shall deliver
to the Holder confirmation that there shall be issued upon exercise of this
Warrant at any time after the consummation of the Fundamental Transaction, in
lieu of the shares of the Common Stock (or other securities, cash, assets or
other property) purchasable upon the exercise of this Warrant prior to such
Fundamental Transaction, such shares of stock, securities, cash, assets or any
other property whatsoever (including warrants or other purchase or subscription
rights) which the Holder would have been entitled to receive upon the happening
of such Fundamental Transaction had this Warrant been converted immediately
prior to such Fundamental Transaction, as adjusted in accordance with the
provisions of this Warrant.  In addition to and not in substitution
for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of shares of Common Stock are entitled to
receive securities or other assets with respect to or in exchange for shares of
Common Stock (a “Corporate Event”),
the Company shall make appropriate provision to insure that the Holder will
thereafter have the right to receive upon an exercise of this Warrant at any
time after the consummation of the Fundamental Transaction, in lieu of the
shares of the Common Stock (or other securities, cash, assets or other property)
purchasable upon the exercise of this Warrant prior to such Fundamental
Transaction, such shares of stock, securities, cash, assets or any other
property whatsoever (including warrants or other purchase or subscription
rights) which the Holder would have been entitled to receive upon the happening
of such Fundamental Transaction had this Warrant been exercised immediately
prior to such Fundamental Transaction; provided, however, that in the
event the Fundamental Transaction involves the issuance of cash or freely
tradable securities by an issuer listed on the New York Stock Exchange or the
Nasdaq Stock Market, then the ability to exercise this Warrant shall expire on
the consummation of that Fundamental Transaction.  Provision made
pursuant to the preceding sentence shall be in a form and substance reasonably
satisfactory to the Required Holders.  The provisions of this Section
3.3  shall apply similarly and equally to successive
Fundamental Transactions and Corporate Events and shall be applied without
regard to any limitations on the exercise of this Warrant.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    7.4     Notwithstanding
the foregoing Section
3.3, in the event of a Fundamental Transaction other than one in which
the Successor Entity is a Public Successor Entity that assumes this Warrant such
that this Warrant shall be exercisable for the publicly traded common stock of
such Public Successor Entity, at the request of the Holder delivered before the
90th day after the effective date of such Fundamental Transaction, the Company
(or the Successor Entity) shall purchase this Warrant from the Holder by paying
to the Holder, within five (5) Trading Days after such request (or, if later, on
the effective date of the Fundamental Transaction), cash in an amount equal to
the value of the remaining unexercised portion of this Warrant on the date of
such consummation, which value shall be determined by use of the Black Scholes
Option Pricing Model using a volatility equal to the 100 day average historical
price volatility prior to the date of the public announcement of such
Fundamental Transaction.

     

    ARTICLE 8

    NONCIRCUMVENTION

     

    The
Company hereby covenants and agrees that the Company will not, by amendment of
its certificate or articles of incorporation, articles of association, bylaws,
or any other organization documents, or through any reorganization, transfer of
assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale
of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, and will at all
times in good faith carry out all the provisions of this Warrant and take all
action as may be required to protect the rights of the
Holder.  Without limiting the generality of the foregoing, the Company
(i) shall not increase the par value of any shares of Common Stock receivable
upon the exercise of this Warrant above the Exercise Price then in effect, (ii)
shall take all such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any
portion of this Warrant remains outstanding, take all action necessary to
reserve and keep available out of its authorized and unissued shares of Common
Stock, solely for the purpose of effecting the exercise of this Warrant, 110% of
the number of shares of Common Stock as shall from time to time be necessary to
effect the exercise of this Warrant then outstanding (without regard to any
limitations on exercise).

     

    
      
         

      

      
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    ARTICLE 9

    WARRANT HOLDER NOT DEEMED A
STOCKHOLDER

     

    Except as
otherwise specifically provided herein, the Holder, solely in such Person’s
capacity as a holder of this Warrant, shall not be entitled to vote or receive
dividends or be deemed the holder of share capital of the Company for any
purpose, nor shall anything contained in this Warrant be construed to confer
upon the Holder, solely in such Person’s capacity as the Holder of this Warrant,
any of the rights of a stockholder of the Company or any right to vote, give or
withhold consent to any corporate action (whether any reorganization, issue of
stock, reclassification of stock, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
which such Person is then entitled to receive upon the due exercise of this
Warrant.  In addition, nothing contained in this Warrant shall be
construed as imposing any liabilities on the Holder to purchase any securities
(upon exercise of this Warrant or otherwise) or as a stockholder of the Company,
whether such liabilities are asserted by the Company or by creditors of the
Company.  Notwithstanding this ARTICLE 5, the
Company shall provide the Holder with copies of the same notices and other
information given to the stockholders of the Company generally,
contemporaneously with the giving thereof to the stockholders.

     

    ARTICLE 10

    REISSUANCE OF
WARRANTS

     

    10.1     Transfer
of Warrant.  If this Warrant
is to be transferred, the Holder shall surrender this Warrant to the Company,
whereupon the Company will forthwith issue and deliver upon the order of the
Holder a new Warrant (in accordance with Section 6.4),
registered as the Holder may request, representing the right to purchase the
number of Warrant Shares being transferred by the Holder and, if less then the
total number of Warrant Shares then underlying this Warrant is being
transferred, a new Warrant (in accordance with Section 6.4) to the
Holder representing the right to purchase the number of Warrant Shares not being
transferred.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    10.2     Lost,
Stolen or Mutilated Warrant.  Upon receipt by
the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Warrant, and, in the case of loss,
theft or destruction, of any indemnification undertaking by the Holder to the
Company in customary form and, in the case of mutilation, upon surrender and
cancellation of this Warrant, the Company shall execute and deliver to the
Holder a new Warrant (in accordance with Section 6.4)
representing the right to purchase the Warrant Shares then underlying this
Warrant.

     

    10.3     Exchangeable
for Multiple Warrant.  This Warrant is
exchangeable, upon the surrender hereof by the Holder at the principal office of
the Company, for a new Warrant or Warrants (in accordance with Section 6.4)
representing in the aggregate the right to purchase the number of Warrant Shares
then underlying this Warrant, and each such new Warrant will represent the right
to purchase such portion of such Warrant Shares as is designated by the Holder
at the time of such surrender; provided, however, that no Warrant for fractional
shares of Common Stock shall be given.

     

    10.4     Issuance
of New Warrant.  Whenever the
Company is required to issue a new Warrant pursuant to the terms of this
Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii)
shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a
new Warrant being issued pursuant to Section 6.1 or Section 6.3, the
Warrant Shares designated by the Holder which, when added to the number of
shares of Common Stock underlying the other new Warrant issued in connection
with such issuance, does not exceed the number of Warrant Shares then underlying
this Warrant), (iii) shall have an issuance date, as indicated on the face of
such new Warrant which is the same as the Issuance Date, and (iv) shall have the
same rights and conditions as this Warrant.

     

    ARTICLE 11

    NOTICES

     

    Whenever
notice is required to be given under this Warrant, unless otherwise provided
herein, such notice shall be given in accordance with Section 6.2 of the
Purchase Agreement.  The Company shall provide the Holder with prompt
written notice of all actions taken pursuant to this Warrant, including in
reasonable detail a description of such action and the reason
therefore.  Without limiting the generality of the foregoing, the
Company will give written notice to the Holder (i) immediately upon any
adjustment of the Exercise Price, setting forth in reasonable detail, and
certifying, the calculation of such adjustment and (ii) at least fifteen days
prior to the date on which the Company closes its books or takes a record (A)
with respect to any dividend or distribution upon the shares of Common Stock,
(B) with respect to any grants, issuances or sales of any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property
to holders of shares of Common Stock as such or (C) for determining rights to
vote with respect to any Fundamental Transaction, dissolution or liquidation,
provided in each case that such information shall be made known to the public
prior to or in conjunction with such notice being provided to the
Holder.

     

    
      
         

      

      
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    ARTICLE 12

    AMENDMENT AND
WAIVER

     

    Except as
otherwise provided herein, the provisions of this Warrant may be amended and the
Company may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if the Company has obtained the written
consent of the Required Holders; provided that except
as set forth in this Warrant no such action may increase the exercise price of
any Warrant or decrease the number of shares or class of stock obtainable upon
exercise of any Warrant without the written consent of the Holder.  No
such amendment shall be effective to the extent that it applies to less than all
of the holders of this Warrant.

     

    ARTICLE 13

    GOVERNING
LAW

     

    This
Warrant shall be governed by and construed and enforced in accordance with, and
all questions concerning the construction, validity, interpretation and
performance of this Warrant shall be governed by, the internal laws of the State
of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of New York.

     

    ARTICLE 14

    CONSTRUCTION;
HEADINGS

     

    This
Warrant shall be deemed to be jointly drafted by the Company and the Holder and
shall not be construed against any person as the drafter hereof.  The
headings of this Warrant are for convenience of reference and shall not form
part of, or affect the interpretation of, this Warrant.

     

    ARTICLE 15

    DISPUTE
RESOLUTION

     

    In the
case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall submit the
disputed determinations or arithmetic calculations via facsimile within 2
Trading Days of receipt of the Exercise Notice giving rise to such dispute, as
the case may be, to the Holder.  If the Holder and the Company are
unable to agree upon such determination or calculation of the Exercise Price or
the Warrant Shares within three Trading Days of such disputed determination or
arithmetic calculation being submitted to the Holder, then the Company shall,
within 2 Trading Days submit via facsimile (a) the disputed determination of the
Exercise Price or arithmetic calculation to an independent, reputable investment
bank or independent registered public accounting firm selected by Holder subject
to Company’s approval, which may not be unreasonably withheld or delayed, or (b)
the disputed arithmetic calculation of the Warrant Shares to the Company’s
independent registered public accounting firm.  The Company shall
cause at its expense the investment bank or the accountant, as the case may be,
to perform the determinations or calculations and notify the Company and the
Holder of the results no later than 3 Trading Days from the time it receives the
disputed determinations or calculations.  Such investment bank’s or
accountant’s determination or calculation, as the case may be, shall be binding
upon all parties absent demonstrable error.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    ARTICLE 16

    REMEDIES, OTHER OBLIGATIONS,
BREACHES AND INJUNCTIVE RELIEF

     

    The
remedies provided in this Warrant shall be cumulative and in addition to all
other remedies available under this Warrant, at law or in equity (including a
decree of specific performance and/or other injunctive relief), and nothing
herein shall limit the right of the Holder right to pursue actual damages for
any failure by the Company to comply with the terms of this
Warrant.  The Company acknowledges that a breach by it of its
obligations hereunder will cause irreparable harm to the Holder and that the
remedy at law for any such breach may be inadequate.  The Company
therefore agrees that, in the event of any such breach or threatened breach, the
holder of this Warrant shall be entitled, in addition to all other available
remedies, to an injunction restraining any breach, without the necessity of
showing economic loss and without any bond or other security being
required.

     

    ARTICLE 17

    DEFINITIONS

     

    For
purposes of this Warrant, in addition to the terms defined elsewhere herein, the
following terms shall have the following meanings:

     

    17.1     “Bloomberg” means
Bloomberg Financial Markets.

     

    17.2     “Closing Bid Price”
and “Closing Sale
Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Trading
Market, as reported by Bloomberg, or, if the Trading Market begins to operate on
an extended hours basis and does not designate the closing bid price or the
closing trade price, as the case may be, then the last bid price or last trade
price, respectively, of such security prior to 4:00 p.m., Eastern time, as
reported by Bloomberg, or, if the Trading Market is not the principal securities
exchange or trading market for such security, the last closing bid price or last
trade price, respectively, of such security on the principal securities exchange
or trading market where such security is listed or traded as reported by
Bloomberg, or if the foregoing do not apply, the last closing bid price or last
trade price, respectively, of such security in the over-the-counter market on
the electronic bulletin board for such security as reported by Bloomberg, or, if
no closing bid price or last trade price, respectively, is reported for such
security by Bloomberg, the average of the bid prices, or the ask prices,
respectively, of any market makers for such security as reported in the “pink
sheets” by Pink Sheets LLC (formerly the National Quotation Bureau,
Inc.).  If the Closing Bid Price or the Closing Sale Price cannot be
calculated for a security on a particular date on any of the foregoing bases,
the Closing Bid Price or the Closing Sale Price, as the case may be, of such
security on such date shall be the fair market value as mutually determined by
the Company and Holder.  If the Company and Holder are unable to agree
upon the fair market value of such security, then such dispute shall be resolved
pursuant to ARTICLE
11.  All such determinations to be appropriately adjusted for
any stock dividend, stock split, stock combination or other similar transaction
during the applicable calculation period.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    17.3     “Common Stock” means
(i) the Company’s shares of Common Stock, par value $0.0001 per share, and (ii)
any share capital into which such Common Stock shall have been changed or any
share capital resulting from a reclassification of such Common
Stock.

     

    17.4     “Common Stock Deemed
Outstanding” means, at any given time, the number of shares of Common
Stock actually outstanding at such time, plus the number of shares of Common
Stock deemed to be outstanding pursuant to Section 3.1 hereof regardless of
whether the Options or Convertible Securities are actually exercisable at such
time, but excluding any shares of Common Stock owned or held by or for the
account of the Company or issuable upon exercise of this Warrant.

     

    17.5     “Common Stock
Equivalents” means any securities of the Company or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

     

    17.6     “Convertible
Securities” means any stock or securities (other than Options) directly
or indirectly convertible into or exercisable or exchangeable for shares of
Common Stock.

     

    17.7     “DWAC Shares” means
all Warrant Shares issued or issuable to Holder or any Affiliate, successor or
assign of Holder pursuant to this Warrant, all of which shall be (a) issued in
electronic form, (b) freely tradable and without restriction on resale, and (c)
timely credited by Company to the specified Deposit/Withdrawal at Custodian
(DWAC) account with DTC under its Fast Automated Securities Transfer (FAST)
Program or any similar program hereafter adopted by DTC performing substantially
the same function, in accordance with instructions issued to and countersigned
by the Transfer Agent of the Company.

     

    17.8     “Eligible Market”
means the Trading Market, The New York Stock Exchange, Inc., The NASDAQ Global
Select Market, The NASDAQ Global Market, The NASDAQ Capital Market, the NYSE
Amex or the OTC Bulletin Board, but does not include the Pink
Sheets.

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    

    17.9     “Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees,
officers or directors of the Company pursuant to any stock or option plan duly
adopted for such purpose, by a majority of the non-employee members of the Board
of Directors or a majority of the members of a committee of non-employee
directors established for such purpose, (b) securities upon the exercise or
exchange of or conversion of any Securities issued hereunder and/or other
securities exercisable or exchangeable for or convertible into shares of Common
Stock issued and outstanding on the date of this Agreement, provided that such
securities have not been amended since the date of this Agreement to increase
the number of such securities or to decrease the exercise price, exchange price
or conversion price of such securities (except as a result of anti-dilution
provisions therein), and (c) securities issued pursuant to acquisitions or
strategic transactions approved by a majority of the disinterested directors of
the Company, provided that any such issuance shall only be to a Person (or to
the equity holders of a Person) which is, itself or through its subsidiaries, an
operating company or an asset in a business synergistic with the business of the
Company and shall provide to the Company additional benefits in addition to the
investment of funds, but shall not include a transaction in which the Company is
issuing securities primarily for the purpose of raising capital or to an entity
whose primary business is investing in securities.

     

    17.10     “Fundamental
Transaction” has the meaning set forth in the Purchase
Agreement.

     

    17.11     “Maximum Placement”
has the meaning set forth in the Purchase Agreement.

     

    17.12     “Options” means any
rights, warrants or options to subscribe for or purchase shares of Common Stock
or Convertible Securities.

     

    17.13     “Parent Entity” of a
Person means an entity that, directly or indirectly, controls the applicable
Person and whose common stock or equivalent equity security is quoted or listed
on an Eligible Market, or, if there is more than one such Person or Parent
Entity, the Person or Parent Entity with the largest public market
capitalization as of the date of consummation of the Fundamental
Transaction.

     

    17.14     “Person” means an
individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a
government or any department or agency thereof.

     

    17.15     “Public Successor
Entity” means a Successor Entity that is a publicly traded corporation
whose stock is quoted or listed for trading on an Eligible Market.

     

    17.16     “Required Holders”
means the Holders of this Warrant representing at least a majority of shares of
Common Stock underlying this Warrant as then outstanding.

     

    17.17     “Successor Entity”
means the Person (or, if so elected by the Required Holders, the Parent Entity)
formed by, resulting from or surviving any Fundamental Transaction or the Person
(or, if so elected by the Required Holders, the Parent Entity) with which such
Fundamental Transaction shall have been entered into.

     

    17.18     “Trading Day” means
any day on which the Common Stock is traded on an Eligible Market; provided that
it shall not include any day on which the Common Stock (a) is suspended from
trading, or (b) is scheduled to trade on such exchange or market for less than 5
hours.

    

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

     

    17.19     “Trading Market” means
the OTC Bulletin Board, the NASDAQ Capital Market, the NASDAQ Global Market, the
NASDAQ Global Select Market, the NYSE Amex, or the New York Stock Exchange,
whichever is at the time the principal trading exchange or market for the Common
Stock, but does not include the Pink Sheets inter-dealer electronic quotation
and trading system.

     

    17.20     “Tranche Closing Date”
has the meaning set forth in the Purchase Agreement.

     

    17.21     “Tranche Notice” has
the meaning set forth in the Purchase Agreement.

     

    17.22     “Tranche Notice Date”
has the meaning set forth in the Purchase Agreement.

     

    17.23     “Tranche Purchase
Price” has the meaning set forth in the Purchase Agreement.

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to
be duly executed as of the Issuance Date set out above.

     

    
      
        
          
            
              
                
                  	
                          MEDCLEAN
      TECHNOLOGIES, INC.

                        
	 
      	 
      
	
                          By:

                        	
                          /s/ David J. Laky 

                        
	 	 
	
                          Name:  
      

                        	
                          David
      J. Laky

                        
	
                          Title:

                        	
                          President
      and Chief Executive Officer

                        
	 
      	 
      
	
                          By:

                        	
                          /s/  Cheryl K.
  Sadowski

                        
	 	 
	
                          Name:

                        	
                          Cheryl
      K. Sadowski

                        
	
                          Title:

                        	
                          Treasurer
      and Chief Financial
Officer

                        

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Warrant Exercise
Schedule

     

    
      
        
          
            
              	
                      Exercise Date

                    	 
      	
                      Number of

                      Warrant Shares

                    	 
      	
                      Exercise Price

                      Per Share

                    	 
      	
                      Aggregate

                      Exercise Price

                    	 
      	
                      Dollar Amount

                      Remaining

                    
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        

                    	 
      	
                        

                    	 
      	
                        

                    	 
      	
                        

                    	 
      

            

          

        

      

    

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    APPENDIX
1

     

    EXERCISE
NOTICE

     

    MEDCLEAN
TECHNOLOGIES, INC.

     

    The
undersigned hereby exercises the right to purchase ________________ shares of
Common Stock (“Warrant
Shares”) of MedClean Technologies, Inc., a Delaware corporation (“Company”), evidenced
by the attached Warrant to Purchase Common Stock (“Warrant”).  Capitalized
terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant.  The Holder intends that payment of the
Exercise Price shall be made as:

     

    
      
        	
                 
      

              	
                ___

              	
                Cash
      Exercise with respect to ____________ Warrant
  Shares

              

      

      

      
        	
                 
      

              	
                ___

              	
                Cashless
      Exercise with respect to ____________ Warrant
  Shares

              

      

      

      
        	
                 
      

              	
                ___

              	
                Recourse
      Note Exercise with respect to ____________ Warrant
  Shares

              

      

      

      
        Please
issue

      

      

      
        	
                 
      

              	
                ___

              	
                A
      certificate or certificates representing said shares of Common Stock in
      the name specified below

              

      

      

      
        	
                 
      

              	
                ___

              	
                Said
      shares in electronic form to the Deposit/Withdrawal at Custodian (DWAC)
      account with Depository Trust Company (DTC) specified
    below.

              

      

    

     

    
      
        
          
            
              	
                           

                    
	 	 
	
                      By:

                    	
                           

                    
	
                      Name:

                    	
                           

                    
	
                      Title:

                    	
                           

                    

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ACKNOWLEDGMENT

     

    The
Company hereby acknowledges the foregoing Exercise Notice and hereby directs
[_________________] to issue the above indicated number of shares of Common
Stock as specified above, in accordance with the Transfer Agent Instructions
dated [_________] from the Company, and acknowledged and agreed to by the
transfer agent.

     

    
      
        
          	
                  MEDCLEAN
      TECHNOLOGIES, INC.

                
	 
      	 
      
	
                  By:

                	
                       

                
	
                  Name: 
      

                	
                       

                
	
                  Title:

                	
                       

                

        

      

    

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    APPENDIX
2

     

    FORM OF
NOTE

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    SECURED
PROMISSORY NOTE

    
       

      
        	$[_____________] 	
                Date:     [________],
      20[__] 

              

      

       

    

    FOR VALUE
RECEIVED, [_____________] (“Borrower”) promises
to pay to the order of MedClean Technologies, Inc. (“Lender”), at
[________], or at such other place as Lender may from time to time designate in
writing, the principal sum of $[________], with interest, as
follows:

    

    ARTICLE 1Interest.  The
principal balance outstanding from time to time under this Secured Promissory
Note (this “Note”), shall bear
interest from and after the date hereof at the rate of 2.0% per
year.  Interest shall be calculated on a simple interest basis and the
number of days elapsed during the period for which interest is being
calculated.  Payments of interest will be due on each annual
anniversary of the date of this Note; provided that
Borrower will not be in default hereunder for failure to make any annual
interest payment when due (other than on the Maturity Date) and the amount of
interest not paid when due shall be added to the principal balance of this Note
and such amount will thereafter accrue interest at the rate set forth
above.

     

    ARTICLE 2Payments.  If
not sooner paid, the entire unpaid principal balance, interest thereon and any
other charges due and payable under this Note shall be due and payable on the
fourth anniversary of the date of this Note (“Maturity Date”);
provided, however, that no
payments on this Note will be due or payable so long as either (a) Lender is in
default under any preferred stock purchase agreement for Series C Preferred
Stock with Borrower or any Warrant issued pursuant thereto, any loan
agreement or other material agreement entered into with Borrower, or (b)
there are any shares of Series C Preferred Stock of Lender issued or outstanding
(each, a “Non-Payment
Event”).  Upon the termination or cure of any Non-Payment
Event, Borrower’s obligation to pay amounts outstanding on this Note will
immediately be reinstated.  Borrower shall have the right to prepay
all or any part of the principal balance of this Note at any time without
penalty or premium.  In the event that Lender redeems all or a portion
of any shares of Series C Preferred Stock then held by Borrower, the proceeds of
any such redemption will be applied by Borrower to pay down the accrued interest
and outstanding principal of this Note and Lender will be permitted to offset
the full amount of such proceeds against amounts outstanding under this
Note.  All payments on this Note shall be first applied to interest,
then to reduce the outstanding principal balance hereof.

     

    ARTICLE 3Full Recourse
Note.  THIS IS A FULL RECOURSE PROMISSORY
NOTE.  Accordingly, notwithstanding that Borrower’s obligations under
this Note are secured by the Collateral, in the event of a material default
hereunder, Lender shall have full recourse to all the other assets of
Borrower.  Moreover, Lender shall not be required to proceed against
or exhaust any Collateral, or to pursue any Collateral in any particular order,
before Lender pursues any other remedies against Borrower or against any of
Borrower’s assets.

     

    ARTICLE 4Security

    

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    
       

      4.1    
Pledge.  As
security for the due and prompt payment and performance of all payment
obligations under this Note and any modifications, replacements and extensions
hereof (collectively, “Secured
Obligations”), Borrower hereby pledges and grants a security interest to
Lender in all of Borrower’s right, title, and interest in and to all of the
following, now owned or hereafter acquired or arising (together the “Collateral”):

       

      (a)       Freely
tradable shares of common stock, preferred stock, bonds, notes and/or debentures
(collectively, “Pledged Securities”)
with a fair market value on the date hereof at least equal to the principal
amount of this Note, based upon the trading price of such securities on the OTC
Bulletin Board, NASDAQ Capital Market, NASDAQ Global Market, NASDAQ Global
Select Market, NYSE Amex, or New York Stock Exchange;

       

      (b)       all
rights of Borrower with respect to or arising out of the Pledged Securities,
including voting rights, and all equity and debt securities and other property
distributed or distributable with respect thereto as a result of merger,
consolidation, dissolution, reorganization, recapitalization, stock split, stock
dividend, reclassification, exchange, redemption, or other change in capital
structure; and

       

      (c)       all
proceeds, replacements, substitutions, accessions and increases in any of the
Collateral.

       

      4.2    
Replacement
Securities.  So long as any Secured Obligations remain
outstanding, in the event that Borrower sells or disposes of any Pledged
Securities, Borrower shall promptly provide replacement securities of equal or
greater value than such Pledged Securities.

       

      4.3    
Rights With
Respect to Distributions.  So long as no default shall have
occurred and be continuing under this Note, Borrower shall be entitled to
receive any and all dividends and distributions made with respect to the Pledged
Securities and any other Collateral.  However, upon the occurrence and
during the continuance of any default, Lender shall have the sole right (unless
otherwise agreed by Lender) to receive and retain dividends and distributions
and apply them to the outstanding balance of this Note or hold them as
Collateral, at Lender’s election.

       

      4.4    
Voting
Rights.  So long as no default shall have occurred and be
continuing under this Note, Borrower shall be entitled to exercise all voting
rights pertaining to the Pledged Securities and any other
Collateral.  However, upon the occurrence and during the continuance
of any default, all rights of Borrower to exercise the voting rights that
Borrower would otherwise be entitled to exercise with respect to the Collateral
shall cease and (unless otherwise agreed by Lender) all such rights shall
thereupon become vested in Lender, which shall thereupon have the sole right to
exercise such rights.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      4.5    
Financing
Statement; Further Assurances.  Borrower agrees, concurrently
with executing this Note, that Lender may file a UCC-1 financing statement
relating to the Collateral in favor of Lender, and any similar financing
statements in any jurisdiction in which Lender reasonably determines such filing
to be necessary.  Borrower further agrees that at any time and from
time to time Borrower shall promptly execute and deliver all further instruments
and documents that Lender may request in order to perfect and protect the
security interest granted hereby, or to enable Lender to exercise and enforce
its rights and remedies with respect to any Collateral following an event of
default.  In addition, following an event of default, Borrower shall
deliver the Collateral, including original certificates or other instruments
representing the Pledged Securities, to Lender to hold as secured party, and
Borrower shall, if requested by Lender, execute a securities account control
agreement.

       

      4.6    
Powers of
Lender.  Borrower hereby appoints Lender as Borrower’s true and
lawful attorney-in-fact to perform any and all of the following acts, which
power is coupled with an interest, is irrevocable until the Secured Obligations
are paid and performed in full, and may be exercised from time to time by Lender
in its discretion:  To take any action and to execute any instrument
which Lender may deem reasonably necessary or desirable to accomplish the
purposes of this Section 4(f) and,
more broadly, this Note including, without limitation:  (i) to
exercise voting and consent rights with respect to Collateral in accordance with
this Note, (ii) during the continuance of any default hereunder, to receive,
endorse and collect all instruments or other forms of payment made payable to
Borrower representing any dividend, interest payment or other distribution in
respect of the Collateral or any part thereof and to give full discharge for the
same, when and to the extent permitted by this Note, (iii) to perform or cause
the performance of any obligation of Borrower hereunder in Borrower’s name or
otherwise, (iv) during the continuance of any default hereunder, to liquidate
any Collateral pledged to Lender hereunder and to apply proceeds thereof to the
payment of the Secured Obligations or to place such proceeds into a cash
collateral account or to transfer the Collateral into the name of Lender, all at
Lender’s sole discretion, (v)  to enter into any extension,
reorganization or other agreement relating to or affecting the Collateral, and,
in connection therewith, to deposit or surrender control of the Collateral, (vi)
to accept other property in exchange for the Collateral, (vii) to make any
compromise or settlement Lender deems desirable or proper, and (viii) to execute
on Borrower’s behalf and in Borrower’s name any documents required in order to
give Lender a continuing first lien upon the Collateral or any part
thereof.

       

      ARTICLE 5Additional
Terms

       

      5.1    
No
Waiver.  The acceptance by Lender of payment of a portion of
any installment when due or an entire installment but after it is due shall
neither cure nor excuse the default caused by the failure of Borrower timely to
pay the whole of such installment and shall not constitute a waiver of Lender’s
right to require full payment when due of any future or succeeding
installments.

       

      5.2    
Default.  Any
one or more of the following shall constitute a “default” under this
Note:  (i) a default in the payment when due of any amount hereunder,
(ii) Borrower’s refusal to perform any material term, provision or covenant
under this Note, (iii) the commencement of any liquidation, receivership,
bankruptcy, assignment for the benefit of creditors or other debtor-relief
proceeding by or against Borrower, (iv) the transfer by Borrower of any Pledged
Securities without being replaced by Pledged Securities in accordance with Section 4(b), and
(iv) the levying of any attachment, execution or other process against Borrower,
the Collateral or any material portion thereof.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      5.3    
Default
Rights

       

      (a)       Upon
the occurrence of any payment default Lender may, at its election, declare the
entire balance of principal and interest under this Note immediately due and
payable.  A delay by Lender in exercising any right of acceleration
after a default shall not constitute a waiver of the default or the right of
acceleration or any other right or remedy for such default.  The
failure by Lender to exercise any right of acceleration as a result of a default
shall not constitute a waiver of the right of acceleration or any other right or
remedy with respect to any other default, whenever occurring.

       

      (b)       Further,
upon the occurrence of any material non-monetary default, following 30 days
notice from Lender to Borrower specifying the default and demanded manner of
cure for any non-monetary default, Lender shall thereupon and thereafter have
any and all of the rights and remedies to which a secured party is entitled
after a default under the applicable Uniform Commercial Code, as then in
effect.  In addition to Lender’s other rights and remedies, Borrower
agrees that, upon the occurrence of default, Lender may in its sole discretion
do or cause to be done any one or more of the following:

       

      (i)        Proceed
to realize upon the Collateral or any portion thereof as provided by law, and
without liability for any diminution in price which may have occurred, sell the
Collateral or any part thereof, in such manner, whether at any public or private
sale, and whether in one lot as an entirety, or in separate portions, and for
such price and other terms and conditions as is commercially reasonable given
the nature of the Collateral.

       

      (ii)       If
notice to Borrower is required, give written notice to Borrower at least ten
days before the date of sale of the Collateral or any portion
thereof.

       

      (iii)      Transfer
all or any part of the Collateral into Lender’s name or in the name of its
nominee or nominees.

       

      (iv)       Vote
all or any part of the Collateral (whether or not transferred into the name of
Lender ) and give all consents, waivers and ratifications in respect of the
Collateral and otherwise act with respect thereto, as though Lender were the
outright owner thereof.

       

      (c)       Borrower
acknowledges that all or part of foreclosure of the Collateral may be restricted
by state or federal securities laws, Lender may be unable to effect a public
sale of all or part of the Collateral, that a public sale is or may be
impractical and inappropriate and that, in the event of such restrictions,
Lender thus may be compelled to resort to one or more private sales to a
restricted group of purchasers who will be obliged to agree, among other things,
to acquire the Collateral for their own account, for investment and not with a
view to its distribution or resale.  Borrower agrees that if
reasonably necessary Lender may resort to one or more sales to a single
purchaser or a restricted or limited group of purchasers.  Lender
shall not be obligated to make any sale or other disposition, unless the terms
thereof shall be satisfactory to it.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (d)       If,
in the opinion of Lender based upon written advice of counsel, any consent,
approval or authorization of any federal, state or other governmental agency or
authority should be necessary to effectuate any sale or other disposition of any
Collateral, Borrower shall execute all such applications and other instruments
as may reasonably be required in connection with securing any such consent,
approval or authorization, and will otherwise use its commercially reasonable
best efforts to secure the same.

       

      (e)       The
rights, privileges, powers and remedies of Lender shall be cumulative, and no
single or partial exercise of any of them shall preclude the further or other
exercise of any of them.  Any waiver, permit, consent or approval of
any kind by Lender of any default hereunder, or any such waiver of any
provisions or conditions hereof, must be in writing and shall be effective only
to the extent set forth in writing.  Any proceeds of any disposition
of the Collateral, or any part thereof, may be applied by Lender to the payment
of expenses incurred by Lender in connection with the foregoing, and the balance
of such proceeds shall be applied by Lender toward the payment of the Secured
Obligations.

       

      a.      
  No Oral
Waivers or Modifications.  No provision of this Note may be
waived or modified orally, but only in a writing signed by Lender and
Borrower.

       

      b.        Attorney
Fees.  The prevailing party in any action by Lender to collect
any amounts due under this Note shall be entitled to recover its reasonable
attorneys fees and costs.

       

      c.       
 Governing
Law.  This Note has been executed and delivered in, and is to
be construed, enforced, and governed according to the internal laws of, the
State of New York without regard to its principles of conflict of laws that
would require or permit the application of the laws of any other
jurisdiction.

       

      d.        Severability.  Whenever
possible, each provision of this Note shall be interpreted in such manner as to
be effective and valid under applicable law.  However, if any
provision of this Note shall be held to be prohibited by or invalid under
applicable law, it shall be ineffective only to the extent of such prohibition
or invalidity without invalidating the remainder of that provision or the other
provisions of this Note.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      e.         Entire
Agreement.  This Note contains the entire understanding of the
parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral or written, with respect to such
matters.

      
         

        
          
            
              
                
                  	
                               

                        
	 	 
	
                          By:

                        	
                               

                        
	
                          Name:

                        	
                               

                        
	
                          Title:

                        	
                               

                        

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]