Document:

Exhibit
4.1

NEITHER THIS SECURITY
NOR ANY SECURITY INTO WHICH IT MAY BE CONVERTED HAS BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE
SECURITIES LAWS. NEITHER THIS SECURITY
NOR ANY SECURITY INTO WHICH IT MAY BE CONVERTED NOR ANY INTEREST OR
PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF AT ANY TIME IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM REGISTRATION. 

VELOCITY
PORTFOLIO GROUP, INC.

a Delaware corporation

10%
PROMISSORY NOTE

	
  

 	
  

 
	
 No. __

 	
  

 
	
 $_______

 	
 July __,
 2009

 

             FOR
VALUE RECEIVED, VELOCITY PORTFOLIO GROUP, INC., a
Delaware corporation (the “Company”), hereby promises to pay to ________________,
(hereinafter referred to as the “Holder”), or registered assigns, the principal
sum of _____________ Dollars ($_______), with interest at a rate of ten percent
(10.0%) per annum.

1.          This
Note. Unless
this note (“Note”) is otherwise redeemed pursuant to Section 5 hereof, interest
and principal on this Note shall be payable at the address indicated in the
Subscription Agreement executed by the Holder in connection with the investment
in this Note or any such other address as the Holder may from time to time
designate in writing to the Company, regardless of whether payment becomes due
on the Maturity Date (as defined below) or upon the occurrence of an Event of
Default (as defined below). 

2.          Payment
of Principal and Interest. This Note will mature on July __, 2010 (the
“Maturity Date”). Interest shall be
payable quarterly in arrears beginning on the last day of the month that is
four months from the date of this Note (each, an “Interest Payment Date”). Interest shall be computed based on the
actual number of days elapsed, but on the basis of a 360-day year of twelve
30-day months calculated on the unpaid balance of the principal sum from the
date of issue. Principal shall be due
and payable upon the Maturity Date or upon the occurrence of an Event of
Default (as defined below). Except as provided herein, all payments of
principal and interest by the Company under this Note shall be made in United
States dollars in immediately available funds to an account specified by the Holder.

3.          Security
Interest

              (a)
        To secure the
prompt and complete payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of all of the obligations and
liabilities of the Company to the Holder under this Note (the “Obligations’),
the Company hereby assigns, pledges and grants to Holder, a continuing security
interest in and lien upon all of the Company’s property and assets (the
“Collateral”), whether real or personal, tangible or intangible, and whether
now owned or hereafter acquired, or in which it now has or at any time in the
future may acquire any right, title or interest, including without limitation,
all of the following property in which it now has or at any time in the future
may acquire any right, title or interest: all accounts, inventory, equipment,
goods, documents, instruments (including, without limitation, promissory
notes), contract rights, general intangibles (including, without limitation,
payment intangibles), chattel paper, supporting obligations, investment
property, letter-of-credit rights, trademarks, tradestyles, patents and
copyrights in which the Company now has or hereafter may acquire any right,
title or interest, all books, records, computer programs, tapes, disks, and
related data processing software that at any time evidence or contain
information relating to Collateral or are otherwise necessary or helpful in the
collection thereof or realization thereof; all proceeds and products thereof
(including, without limitation, proceeds of insurance) and all additions,
accessions and substitutions thereto or therefor. The Company authorizes the
Holder to file such financing statements and amendments thereto and all other
documents and instruments and to do such other acts and things as are
reasonably necessary to establish and maintain a valid, enforceable, perfected
security interest in the Collateral as provided herein and the other rights
and security contemplated hereby all in accordance with the Uniform Commercial
Code of the State of New Jersey as in effect from time to time. The security
interest granted hereby shall be prior in right to all other security interests
granted by the Maker in its assets, except that such security interest will be
junior in right to the security interest held by Wells Fargo Foothill, LLC as
set forth in Section 4 of this Note. 

4.          Call
of Notes by the Company. The Company shall not, directly or indirectly, call for
redemption, redeem, prepay, repurchase, or otherwise acquire (any such event
referred to herein as a “call”) this Note or any portion thereof except as set
forth in this Section 4.

              a.          Optional
Redemption Upon Call by the Company.
Beginning on the date hereof, the Company may, at its option, call this
Note at a price equal to the outstanding principal sum of, plus accrued but
unpaid interest on, any late charges associated with this Note and a call
premium equal to 110.0% of the principal amount

              b.          Notice
of Call. The right of the Company
to call this Note pursuant to this Section 4 shall be conditioned upon the
Company’s giving notice of such call (the “Call Notice”, and the date the Call
Notice is given being referred to as the “Call Notice Date”), by personal
delivery, overnight courier, certified mail or by facsimile, signed by an
authorized officer, to the Holder of this Note, not less than sixty (60) days
prior to the date upon which the call is to be effective (the “Call Effective
Date”). The Call Notice shall be
irrevocable and shall specify the Call Effective Date, which may not be less
than 60 days after the Call Notice Date.

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5.          Transfer. Subject to the provisions of the legend
above, this Note is freely transferable, in whole or in part, by the Holder,
and such transferee shall have the same rights hereunder as the Holder. The Company may not assign or delegate any
of its obligations under this Note without the prior written consent of the
Holder (or its successor, transferee or assignee). Upon surrender of this Note for transfer or exchange, a new Note
or new Notes of the same tenor, dated the date to which interest has been paid
on the surrendered Note and in an aggregate principal amount equal to the
unpaid principal amount of this Note so surrendered, will be issued to and
registered in the name of the transferee or transferees. The Company may treat the person in whose
name this Note is registered as the owner hereof for the purpose of receiving
payments and for all other purposes.

6.          Note
Register.
This Note is transferable only upon the books of the Company which it
shall cause to be maintained for such purpose.
The Company may treat the registered holder of this Note as the Holder
appears on the Company’s books at any time as the Holder for all purposes.

7.          Defaults
and Remedies.
The entire unpaid principal of this Note shall become and be immediately
due and payable upon written demand by the Holder, without any other notice or
demand of any kind or any presentment or protest, if any one of the following
events (each, an “Event of Default”) shall occur and be continuing at the time
of such demand, whether voluntarily or involuntarily, or, without limitation,
occurring or brought about by operation of law or pursuant to or in compliance
with any judgment, decree or order of any court or any order, rule or
regulation of any governmental body:

              a.          the
Company is delinquent in payment of any interest for a period of more than 30
days or the Company fails to pay the entire principal amount of this Note
within ten days after the Maturity Date;

              b.          the
Company defaults in any of its other financial obligations in excess of
$500,000 that are not cured within 30 days; 

              c.          the
Company, pursuant to or within the meaning of any applicable U.S. federal and
state laws relating to bankruptcy, insolvency, winding up, administration,
receivership and other similar matters for the relief of creditors (each, a
“Bankruptcy Law”):

                           i.          commences
a voluntary case;

                           ii.         consents
to the entry of an order for relief against it in an involuntary case;

                           iii.        consents
to the appointment of a custodian of it or for any substantial part of its
property;

                           iv.         makes
a general assignment for the benefit of its creditors; or

                           v.          is
unable to, or admits in writing its inability to, pay its debts as they become
due.

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              d.          there
shall be commenced against the Company any case, proceeding or action of the
type referred to below or a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that:

                           i.          is
for relief against the Company in an involuntary case;

                           ii.         appoints
a custodian of the Company or for any substantial part of its property; or

                           iii.        orders
the winding up or liquidation of the Company.

Upon an Event
of Default, without any further notice or demand, in addition to and not in
limitation of any other rights or remedies which the Holder may otherwise have,
the Company shall pay the Holder a late charge computed at the rate of 18% per
annum of the amount not paid.
Notwithstanding the foregoing, an Event of Default under Section 9(b)
hereof shall not constitute an Event of Default without written notice from the
holders of a majority of the principal amount of the Notes then outstanding.

8.          Parity
of Notes.
In the event any other holder of notes issued contemporaneously with
this Note (each, and “Offering Note” and, collectively, the “Offering Notes”)
elects to accelerate the Offering Note held by such holder as a result of an
Event of Default, the Company shall notify the Holder of this Note of such
event and all holders of Offering Notes shall be deemed to have equal parity.

9.          Loss,
Etc., of Note.
Upon receipt of evidence satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note, and of indemnity reasonably
satisfactory, to the Company if lost, stolen or destroyed, and upon surrender
and cancellation of this Note if mutilated, and upon reimbursement of the
Company’s reasonable incidental expenses, the Company shall execute and deliver
to the Holder a new Note of like date, tenor and denomination.

10.        Amendment,
Waiver Etc., By Holder. The terms of this Note may be amended or waived upon the written
consent of the Company and the Holder.

11.        Governing
Law. This
Note shall be governed by and construed in accordance with the laws of the
State of New Jersey.

12.        Waiver. The Company hereby waives presentment,
demand, notice of nonpayment, protest and all other demands and notices in
connection with the delivery, acceptance, performance or enforcement of this
Note. If an action is brought for
collection under this Note, the Holder shall be entitled to receive all costs
of collection, including, but not limited to, its reasonable attorneys’ fees.

 [Signature
Page Follows]

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          WITNESS
the following signature and seal:

	
  

 	
  

 	
  

 
	
  

 	
 VELOCITY PORTFOLIO GROUP, INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
 John C.
 Kleinert

 
	
  

 	
  

 	
 President
 and CEO

 

[Corporate
Seal]

-5-Exhibit 4.2

Form of Warrant

THE SECURITIES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED
UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING
SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE
ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE COMPANY STATING THAT
SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

	
  

 	
  

 
	
 Warrant No. ___

 	
 Number of
 Shares: 10,000
(subject to adjustment)

 
	
 Date of
 Issuance: July __, 2009

 	
  

 

VELOCITY PORTFOLIO GROUP, INC.

Common Stock Warrant

Velocity
Portfolio Group, Inc. (the “Company”), for value received, hereby
certifies that _________, or its registered assigns (the “Registered Holder”),
is entitled, subject to the terms set forth below, to purchase from the
Company, at any time after the date hereof and on or before the Expiration Date
(as defined in Section 6 below), up to 10,000 shares (as adjusted from time to
time pursuant to the provisions of this Warrant) of common stock of the
Company, $.001 par value per share, at a per share Exercise Price equal to
$3.50 (subject to adjustment for stock splits, dividends and the like and as
set forth in Section 3 hereof). The shares purchasable upon exercise of this
Warrant and the exercise price per share, as adjusted from time to time
pursuant to the provisions of this Warrant, are hereinafter referred to as the
“Warrant Stock” and the “Exercise Price,” respectively.

          This
Warrant is issued pursuant to that certain Subscription Agreement dated
approximately concurrently herewith among the Company and the Registered Holder
(the “Subscription Agreement”). Any capitalized terms used herein, but
not defined herein, shall carry those definitions ascribed to them in the
Subscription Agreement.

          1.          Fully
Vested Shares. The shares of
Warrant Stock are fully vested and exercisable as of July __, 2009.

          2.          Exercise.

                       (a)        Method
of Exercise. 

                                    This Warrant
may be exercised by the Registered Holder, in whole or in part, by surrendering
this Warrant, with the purchase/exercise form appended hereto as Exhibit A
duly executed by such Registered Holder or by such Registered Holder’s duly
authorized attorney, at the principal office of the Company, or at such other
office or agency as the Company may designate in writing prior to the date of
such exercise, accompanied by payment in full of the Exercise Price payable in
respect of the number of shares of Warrant Stock purchased upon such exercise.
The Exercise Price may be paid by cash, check, wire transfer or by the
surrender of promissory notes or other instruments representing indebtedness of
the Company to the Registered Holder. 

                       (b)       Effective
Time of Exercise. Each
exercise of this Warrant shall be deemed to have been effected immediately
prior to the close of business on the day on which this Warrant shall have been
surrendered to the Company as provided in Section 2(a) above. At such time, the
person or persons in whose name or names any certificates for Warrant Stock
shall be issuable upon such exercise as provided in Section 2(c) below shall be
deemed to have become the holder or holders of record of the Warrant Stock
represented by such certificates.

                       
(c)       Delivery to Holder. As soon as practicable after the
exercise of this Warrant in whole or in part, and in any event within 10
business days thereafter, the Company at its expense will cause to be issued in
the name of, and delivered to, the Registered Holder, or as such Registered
Holder (upon payment by such Registered Holder of any applicable transfer
taxes) may direct:

                                   (i)           a
certificate or certificates for the number of shares of Warrant Stock to which
such Registered Holder shall be entitled, and 

                                   (ii)          in
case such exercise is in part only, a new warrant or warrants (dated the date
hereof) of like tenor, calling in the aggregate on the face or faces thereof
for the number of shares of Warrant Stock equal (giving effect to any
adjustment therein) to the number of such shares called for on the face of this
Warrant minus the number of such shares purchased by the Registered Holder upon
such exercise as provided in Section 2(a) above.

          3.          Adjustments.

                       (a)        Stock
Splits and Dividends. If the
outstanding shares of the Company’s Common Stock shall be subdivided into a
greater number of shares or a dividend in Common Stock shall be paid in respect
of Common Stock, the Exercise Price in effect immediately prior to such
subdivision or at the record date of such dividend shall simultaneously with
the effectiveness of such subdivision or immediately after the record date of
such dividend be proportionately reduced. If outstanding shares of Common Stock
shall be combined into a smaller number of shares, the Exercise Price in effect
immediately prior to such combination shall, simultaneously with the
effectiveness of such combination, be proportionately increased. When any
adjustment is required to be made in the Exercise Price, the number of shares
of Warrant Stock purchasable upon the exercise of this Warrant shall be changed
to the number determined by dividing (i) an amount equal to the number of
shares issuable upon the exercise of this Warrant immediately prior to such
adjustment, multiplied by the Exercise Price in effect immediately prior to
such adjustment, by (ii) the Exercise Price in effect immediately after
such adjustment.

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                       (b)          Merger
Sale, Reclassification, Etc. In
case of any (i) consolidation or merger (including a merger in which the
Company is the surviving entity), (ii) sale or other disposition of all or
substantially all of the Company’s assets or distribution of property to
shareholders (other than distributions payable out of earnings or retained
earnings), or reclassification, change or conversion of the outstanding
securities of the Company or of any reorganization of the Company (or any other
corporation the stock or securities of which are at the time receivable upon
the exercise of this Warrant) or any similar corporate reorganization on or
after the date hereof, then and in each such case the holder of this Warrant,
upon the exercise hereof at any time thereafter shall be entitled to receive,
in lieu of the stock or other securities and property receivable upon the
exercise hereof prior to such consolidation, merger, sale or other disposition,
reclassification, change, conversion or reorganization, the stock or other
securities or property to which such holder would have been entitled upon such
consummation if such holder had exercised this Warrant immediately prior
thereto, all subject to further adjustment as provided in Section 3(a) or 3(b);
and in each such case, the terms of this Section 3 shall be applicable to
the shares of stock or other securities properly receivable upon the exercise
of this Warrant after such consolidation, merger, sale or other disposition,
reclassification, change, conversion or reorganization.

                       (c)          Adjustment
Certificate. When any
adjustment is required to be made in the Warrant Stock or the Exercise Price
pursuant to this Section 3, the Company shall promptly mail to the Registered
Holder a certificate setting forth (i) a brief statement of the facts
requiring such adjustment, (ii) the Exercise Price after such adjustment
and (iii) the kind and amount of stock or other securities or property
into which this Warrant shall be exercisable after such adjustment.

          4.          Transfers.

                       (a)          Unregistered
Security. Each holder of
this Warrant acknowledges that this Warrant and the Warrant Stock have not been
registered under the Securities Act of 1933, as amended (the “Securities Act”),
and agrees not to sell, pledge, distribute, offer for sale, transfer or
otherwise dispose of this Warrant or any Warrant Stock issued upon its exercise
in the absence of (i) an effective registration statement under the
Securities Act as to this Warrant or such Warrant Stock and registration or
qualification of this Warrant or such Warrant Stock under any applicable U.S.
federal or state securities law then in effect or (ii) an opinion of
counsel, reasonably satisfactory to the Company, that such registration and
qualification are not required. Each certificate or other instrument for
Warrant Stock issued upon the exercise of this Warrant shall bear a legend
substantially to the foregoing effect.

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(b)          Transferability.
Subject to the provisions of Section 4(a) hereof, this Warrant and all rights
hereunder are transferable, in whole or in part, to (i) any entity controlling,
controlled by or under common control of the Registered Holder, or (ii) to any
other proposed transferee by surrendering the Warrant with a properly executed
assignment (in the form of Exhibit B hereto) at the principal office of
the Company.

                       
(c)          Warrant Register. The Company will
maintain a register containing the names and addresses of the Registered
Holders of this Warrant. Until any transfer of this Warrant is made in the
warrant register, the Company may treat the Registered Holder of this Warrant
as the absolute owner hereof for all purposes; provided, however,
that if this Warrant is properly assigned in blank, the Company may (but shall
not be required to) treat the bearer hereof as the absolute owner hereof for
all purposes, notwithstanding any notice to the contrary. Any Registered Holder
may change such Registered Holder’s address as shown on the warrant register by
written notice to the Company requesting such change.

          5.          No
Impairment. The Company will not, by
amendment of its certificate of incorporation or through reorganization,
consolidation, merger, dissolution, sale of assets or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will (subject to Section 14 below) at all times in
good faith assist in the carrying out of all such terms and in the taking of
all such action as may be necessary or appropriate in order to protect the
rights of the holder of this Warrant against impairment.

          6.          Termination.
This Warrant (and the
right to purchase securities upon exercise hereof) shall terminate on July __,
2014 (the “Expiration Date”).

          7.          Notices
of Certain Transactions. In
case:

                       (a)          the
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time deliverable upon the exercise of this Warrant) for
the purpose of entitling or enabling them to receive any dividend or other
distribution, or to receive any right to subscribe for or purchase any shares
of stock of any class or any other securities, or to receive any other right,
to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right, or

                       (b)          of
any capital reorganization of the Company, any reclassification of the capital
stock of the Company, any consolidation or merger of the Company, any
consolidation or merger of the Company with or into another corporation (other
than a consolidation or merger in which the Company is the surviving entity),
or any transfer of all or substantially all of the assets of the Company, or 

                       (c)          of
the voluntary or involuntary dissolution, liquidation or winding-up of the
Company,

then, and in
each such case, the Company will mail or cause to be mailed to the Registered
Holder of this Warrant a notice specifying, as the case may be, (i) the date on
which a record is to be taken for the purpose of such dividend, distribution or
right, and stating the amount and character of such dividend, distribution or
right, or (ii) the effective date on which such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or
winding-up is to take place, and the time, if any is to be fixed, as of which
the holders of record of Common Stock (or such other stock or securities at the
time deliverable upon such reorganization, reclassification, consolidation,
merger, transfer, dissolution, liquidation or winding-up) are to be determined.

-4-

          8.           Reservation
of Stock. The Company will
at all times have authorized, reserve and keep available, solely for the
issuance and delivery upon the exercise of this Warrant, such shares of Warrant
Stock and other stock, securities and property, as from time to time shall be
issuable upon the exercise of this Warrant.

          9.           Exchange
of Warrants. Upon the
surrender by the Registered Holder of any Warrant or Warrants, properly
endorsed, to the Company at the principal office of the Company, the Company
will, subject to the provisions of Section 4 hereof, issue and deliver to or
upon the order of such Holder, at the Company’s expense, a new Warrant or
Warrants of like tenor, in the name of such Registered Holder or as such
Registered Holder (upon payment by such Registered Holder of any applicable
transfer taxes) may direct, calling in the aggregate on the face or faces
thereof for the number of shares of Common Stock called for on the face or
faces of the Warrant or Warrants so surrendered.

          10.          Replacement
of Warrants. Upon receipt
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) upon delivery of an indemnity agreement (with surety if reasonably
required) in an amount reasonably satisfactory to the Company, or (in the case
of mutilation) upon surrender and cancellation of this Warrant, the Company
will issue, in lieu thereof, a new Warrant of like tenor.

          11.          Notices.
Any notice required or
permitted by this Warrant shall be in writing and shall be deemed duly given
upon receipt, when delivered personally or by courier, overnight delivery
service or confirmed facsimile, or 48 hours after being deposited in the
regular mail as certified or registered mail (airmail if sent internationally)
with postage prepaid, addressed (a) if to the Registered Holder, to the address
of the Registered Holder most recently furnished in writing to the Company and
(b) if to the Company, to the address set forth on the signature page of this
Warrant or as subsequently modified by written notice to the Registered Holder.

          12.          No
Rights as Stockholder. Until the
exercise of this Warrant, the Registered Holder of this Warrant shall not have
or exercise any rights by virtue hereof as a stockholder of the Company.

          13.          No
Fractional Shares. No fractional
shares of Common Stock will be issued in connection with any exercise
hereunder. In lieu of any fractional shares which would otherwise be issuable,
the Company shall pay cash equal to the product of such fraction multiplied by
the fair market value of one share of Common Stock on the date of exercise, in
accordance with Section 2(2)(ii).

          14.          Amendment
or Waiver. Any term of this
Warrant may be amended or waived upon written consent of the Company and the
registered holders of at least 50% of the Common Stock issuable upon exercise
of the outstanding warrants purchased pursuant to the Purchase Agreement. By acceptance
hereof, the Registered Holder acknowledges that in the event the required
consent is obtained, any term of this Warrant may be amended or waived with or
without the consent of the Registered Holder; provided, however,
that any amendment hereof that would materially adversely affect the Registered
Holder in a manner different from the holders of the remaining warrants issued
pursuant to the Purchase Agreement shall also require the consent of Registered
Holder.

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          15.          Headings.
The headings in this Warrant
are for purposes of reference only and shall not limit or otherwise affect the
meaning of any provision of this Warrant.

          16.          Governing
Law. This Warrant and all
acts and transactions pursuant hereto and the rights and obligations of the
parties hereto shall be governed, construed and interpreted in accordance with
the laws of the State of New Jersey, without giving effect to principles of
conflicts of law.

          17.          Representations
and Covenants of the Holder.
This Warrant has been entered into by the
Company in reliance upon the following representations and covenants of the
Registered Holder:

                        (a)          Investment
Purpose. The Registered
Holder is acquiring the Warrant and the Common Stock issuable upon exercise of
the Warrant for its own account, not as a nominee or agent and with no present
intention of selling or otherwise distributing any part thereof. 

                        (b)          Private
Issue. The Registered Holder
understands, except as provided in the Registration Rights
Agreement, (i) that neither the Warrant nor
the Common Stock issuable upon exercise of this Warrant is, nor will be,
registered under the Securities Act or qualified under applicable state
securities laws on the ground that the issuance contemplated by this Warrant
will be exempt from the registration and qualifications requirements thereof
pursuant to Section 4(2) of the Securities Act and any applicable state
securities laws, and (ii) that the Company’s reliance on such exemption is
predicated on the representations set forth in this Section 17.

                        (c)          Disposition
of Holder’s Rights. In no
event will the Registered Holder make a disposition of the Warrant or the
Common Stock issuable upon exercise of the Warrant in the absence
of (i) an effective registration statement under the Securities Act as to
this Warrant or such Warrant Stock and registration or qualification of this
Warrant or such Warrant Stock under any applicable U.S. federal or state
securities law then in effect or (ii) an opinion of counsel, reasonably
satisfactory to the Company, that such registration and qualification are not
required. Notwithstanding the foregoing,
the restrictions imposed upon the transferability of any of its rights to
acquire Common Stock or Common Stock issuable on the exercise of such rights do
not apply to transfers from the beneficial owner of any of the aforementioned
securities to its nominee or from such nominee to its beneficial owner, and
shall terminate as to any particular share of Common Stock when (1) such
security shall have been effectively registered under the Securities Act and
sold by the holder thereof in accordance with such registration or (2) such security
shall have been sold without registration in compliance with Rule 144 under the
Securities Act, or (3) a letter shall have been issued to the Registered Holder
at its request by the staff of the Securities and Exchange Commission (the “SEC”)
or a ruling shall have been issued to the Registered Holder at its request by
the SEC stating that no action shall be recommended by such staff or taken by
SEC, as the case may be, if such security is transferred without registration
under the Securities Act in accordance with the conditions set forth in such
letter or ruling and such letter or ruling specifies that no subsequent
restrictions on transfer are required. Whenever the restrictions imposed
hereunder shall terminate, as hereinabove provided, the Registered Holder or
holder of a share of Common Stock then outstanding as to which such
restrictions have terminated shall be entitled to receive from the Company,
without expense to such holder, one or more new certificates for the Warrant or
for such shares of Common Stock not bearing any restrictive legend.

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(d)          Financial Risk. The Registered Holder
has such business and financial experience as is required to give it the capacity to protect its own
interests in connection with its
investment.

                        
(e)          Accredited Investor. The Registered
Holder is an “accredited investor” as defined by Rule 501 of Regulation D under the Securities
Act, as presently in effect.

          18.          Representations
and Warranties of the Company.
This Warrant has been entered into by the
Registered Holder in reliance upon the following representations and covenants
of the Company:

                        
(a)          Authorization. The Warrant has been
duly executed and delivered by the Company and constitutes a legal, valid and
binding obligation of the Company enforceable in accordance with its terms,
subject to laws of general application relating to bankruptcy, insolvency and
the relief of debtors and rules of law governing specific performance,
injunctive relief or other equitable remedies.

                        
(b)          Valid Issuance. The Warrant Stock is
duly authorized and reserved for issuance, and when issued, sold and delivered
in accordance with the terms of this Warrant will be duly and validly issued,
fully paid and nonassessable.

                        
(c)          No Conflict. The execution and delivery
of this Warrant do not, and the consummation of the transactions contemplated
hereby will not, conflict with, or result in any violation of, breach or
default (with or without notice or lapse of time, or both), or give rise to a
right of termination, cancellation or acceleration of any obligation or to a
loss of a material benefit, under, any provision of the Certificate of
Incorporation or Bylaws of the Company or any material agreement attached as an
exhibit to the Company’s SEC Documents (as defined in the Purchase Agreement),
or any judgment, order, decree, statute, law, ordinance, rule, listing
requirement or regulation applicable to the Company, its properties or assets,
which conflict, violation, default or right would have a material adverse
effect on the business, properties, prospects, financial condition or
operations of the Company.

          19.          Counterparts.
This Warrant may be
executed in counterparts, and each such counterpart shall be deemed an original
for all purposes.

[Signature Pages Follow]

-7-

          IN
WITNESS WHEREOF, the parties have executed this Common Stock Warrant as of the
date first above written.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 VELOCITY PORTFOLIO GROUP, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By

 	
  

 
	
  

 
	
  

 	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
 (print)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Address:

 	
 Velocity
 Portfolio Group, Inc.

 
	
  

 	
  

 	
  

 	
 1800 Route
 34 North

 
	
  

 	
  

 	
  

 	
 Building 4,
 Suite 404A

 
	
  

 	
  

 	
  

 	
 Wall, NJ
 07719

 
	
  

 	
  

 	
  

 	
 Attention:
 Chief Financial Officer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fax Number:
 (732) 556-2365

 

-8-

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