Document:

Exhibit 10.13
 

REGISTRATION RIGHTS
AGREEMENT 

        REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of February __, 2008,
by and among Amish Naturals, Inc., a Nevada corporation, with headquarters located at 8224
County Road 245, Holmesville, Ohio 44633 (the “Company”), and the
undersigned buyers (each, a “Buyer”, and collectively, the
“Buyers”). 

    
    WHEREAS:  

         
    A.       
          In connection with the Securities Purchase Agreement by and among the parties
          hereto, dated February 20, 2008 (the “Securities Purchase
          Agreement”), the Company has agreed, upon the terms and subject to the
          conditions set forth in the Securities Purchase Agreement, to issue and sell to
          each Buyer (i) shares (the “Common Shares”) of the
          Company’s common stock, par value $0.001 per share (the “Common
          Stock”), (ii) senior secured convertible notes (the
          “Notes”) which will, among other things, be convertible into
          shares of Common Stock (as converted, collectively, the “Conversion
          Shares”) and (ii) warrants (the “Warrants”), which
          will be exercisable to purchase shares of Common Stock (as exercised
          collectively, the “Warrant Shares”). 

         
    B.       
          The Notes bear interest, which at the option of the Company, subject to certain
          conditions, may be paid in shares of Common Stock (the “Interest
          Shares”). 

         
    C.       
          In accordance with the terms of the Securities Purchase Agreement, the Company
          has agreed to provide certain registration rights under the Securities Act of
          1933, as amended, and the rules and regulations thereunder, or any similar
          successor statute (collectively, the “1933 Act”), and
          applicable state securities laws. 

        NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and each of the Buyers hereby agree as follows: 

    
    1.           Definitions.  

        Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set
forth in the Securities Purchase Agreement. As used in this Agreement, the following terms
shall have the following meanings: 

    
    a.                     “Additional
Effective Date” means the date the Additional           Registration Statement
is declared effective by the SEC.  

    
    b.                     “Additional
Effectiveness Deadline” means the date which is           thirty (30) calendar
days after the earlier of the Additional Filing Date and           the Additional Filing
Deadline or in the event that the Registration Statement           is subject to a full
review by the SEC, sixty (60) calendar days after the           earlier of the Additional
Filing Date and the Additional Filing Deadline.  

    
    c.                     “Additional
Filing Date” means the date on which the Additional           Registration
Statement is filed with the SEC.  

    
    d.                     “Additional
Filing Deadline” means if Cutback Shares are           required to be included
in any Additional Registration Statement, the later of           (i) the date sixty (60)
days after the date substantially all of the Registrable           Securities registered
under the immediately preceding Registration Statement are           sold and (ii) the
date six (6) months from the Initial Effective Date or the           most recent
Additional Effective Date, as applicable.  

    
    e.                     “Additional
Registrable Securities” means, (i) any Cutback           Shares not previously
included on a Registration Statement and (ii) any capital           stock of the Company
issued or issuable with respect to the Common Shares, the           Notes, the Conversion
Shares, the Interest Shares, the Warrant Shares, the           Warrants or Cutback Shares
as a result of any stock split, stock dividend,           recapitalization, exchange or
similar event or otherwise, without regard to any           limitations on conversion
and/or redemption of the Notes or exercise of the           Warrants.  

    
    f.                     “Additional
Registration Statement” means a registration           statement or registration
statements of the Company filed under the 1933 Act           covering any Additional
Registrable Securities.  

    
    g.                     “Additional
Required Registration Amount” means any Cutback           Shares not previously
included on a Registration Statement, all subject to           adjustment as provided in
Section 2(f), without regard to any limitations on           conversions and/or
redemptions of the Notes or exercises of the Warrants.  

    
    h.                     “Business
Day” means any day other than Saturday, Sunday or any           other day on
which commercial banks in the City of New York are authorized or           required by
law to remain closed.  

    
    i.                     “Closing
Date” shall have the meaning set forth in the           Securities Purchase
Agreement.  

    
    j.                     “Cutback
Shares” means any of the Initial Required Registration           Amount (without
regard to clause (II) in the definition thereof) of Registrable           Securities not
included in all Registration Statements previously declared           effective hereunder
as a result of a limitation on the maximum number of shares           of Common Stock of
the Company permitted to be registered by the staff of the           SEC pursuant to Rule
415. For the purpose of determining the Cutback Securities,           in order to
determine any applicable Required Registration Amount, first the           Conversion
Shares shall be excluded on a pro rata basis until all of the           Conversion Shares
have been excluded, second, the Warrant Shares shall be           excluded on a pro rata
basis until all of the Warrant Shares have been excluded           and, third, the
Interest Shares shall be excluded on a pro rata basis until all           of the Interest
Shares have been excluded.  

    
    k.                     “Effective
Date” means the Initial Effective Date and the           Additional Effective
Date, as applicable.  

    
    l.                     “Effectiveness
Deadline” means the Initial Effectiveness           Deadline and the Additional
Effectiveness Deadline, as applicable.  

2 

    
    m.                     “Filing
Deadline” means the Initial Filing Deadline and the           Additional Filing
Deadline, as applicable.  

    
    n.                     “Initial
Effective Date” means the date that the Initial           Registration Statement
has been declared effective by the SEC.  

    
    o.                     “Initial
Effectiveness Deadline” means the date (i) in the           event that the
Initial Registration Statement is not subject to a full review by           the SEC,
sixty (60) calendar days after the Demand Date or (ii) in the event           that the
Initial Registration Statement is subject to a full review by the SEC,           ninety
(90) calendar days after the Demand Date.  

    
    p.                     “Initial
Filing Deadline” means the date which is thirty (30)           calendar days
after the Demand Date.  

    
    q.                     “Initial
Registrable Securities” for the Initial Registration           Statement means
(i) the Common Shares, (ii) the Conversion Shares issued or           issuable upon
conversion of the Notes, (iii) the Warrant Shares issued or           issuable upon
exercise of the Warrants, (iv) the Interest Shares issued or           issuable with
respect to the Notes and (v) any capital stock of the Company           issued or
issuable, with respect to the Common Shares, the Notes, the Conversion           Shares,
the Interest Shares, the Warrant Shares or the Warrants as a result of           any
stock split, stock dividend, recapitalization, exchange or similar event or
          otherwise, without regard to any limitations on conversion and/or redemption of
          the Notes or exercise of the Warrants.  

    
    r.                     “Initial
Registration Statement” means a registration statement           or registration
statements of the Company filed under the 1933 Act covering the           Initial
Registrable Securities.  

    
    s.                     “Initial
Required Registration Amount” means (I) the sum of (i)           the Common
Shares, (ii) 130% of the number of Conversion Shares issued and           issuable
pursuant to the Notes as of the Trading Day (as defined in the           Securities
Purchase Agreement) immediately preceding the applicable date of           determination,
(iii) 130% of the number of Warrant Shares issued and issuable           pursuant to the
Warrants as of the Trading Day immediately preceding the           applicable date of
determination and (iv) 130% of the number of Interest Shares           issued or issuable
pursuant to the terms of the Notes as of the trading date           immediately preceding
the applicable date of determination, all subject to           adjustment as provided in
Section 2(f), without regard to any limitations on           exercises of the Warrants or
(II) such other amount as may be required by the           staff of the SEC pursuant to
Rule 415 with any cutback applied pro rata to all           Registrable Securities,
except to the extent prohibited by the SEC.  

    
    t.                     “Investor” means
a Buyer or any transferee or assignee thereof           to whom a Buyer assigns its
rights under this Agreement and who agrees to become           bound by the provisions of
this Agreement in accordance with Section 9 and any           transferee or assignee
thereof to whom a transferee or assignee assigns its           rights under this
Agreement and who agrees to become bound by the provisions of           this Agreement in
accordance with Section 9.  

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

3 

    
    v.       “register,” “registered,” and
          “registration” refer to a registration effected by preparing
          and filing one or more Registration Statements in compliance with the 1933 Act
          and pursuant to Rule 415 and the declaration or ordering of effectiveness of
          such Registration Statement(s) by the SEC.  

    
    w.       “Registrable
Securities” means the Initial Registrable           Securities and the
Additional Registrable Securities.  

    
    x.       “Registration
Statement” means the Initial Registration           Statement and the Additional
Registration Statement, as applicable.  

    
    y.       “Required
Holders” means the holders of at least a majority of           the Registrable
Securities.  

    
    z.       “Required
Registration Amount” means either the Initial           Required Registration
Amount or the Additional Required Registration Amount, as           applicable.  

    
    aa.       “Rule
415” means Rule 415 promulgated under the 1933 Act or any           successor
rule providing for offering securities on a continuous or delayed           basis.  

    
    bb.       “SEC” means
the United States Securities and Exchange           Commission.  

    
    2.       Registration.  

    
    a.       Initial
Mandatory Registration. The Investor may request in writing (the           date of
such request, the “Demand Date”) that the Company           prepare,
and, as soon as practicable, but in no event later than the Initial           Filing
Deadline, file with the SEC the Initial Registration Statement on Form           S-3
covering the resale of all of the Initial Registrable Securities. In the           event
that Form S-3 is unavailable for such a registration, the Company shall           use
Form S-1 or such other form as is available for such a registration on           another
appropriate form reasonably acceptable to the Required Holders, subject           to the
provisions of Section 2(e). The Initial Registration Statement prepared
          pursuant hereto shall register for resale at least the number of shares of
          Common Stock equal to the Initial Required Registration Amount determined as of
          the date the Initial Registration Statement is initially filed with the SEC.
The           Initial Registration Statement shall contain (except if otherwise directed
by           the Required Holders) the “Selling Stockholders” and
          “Plan of Distribution” sections in substantially the form
          attached hereto as Exhibit B. The Company shall use its best efforts to
          have the Initial Registration Statement declared effective by the SEC as soon
as           practicable, but in no event later than the Initial Effectiveness Deadline.
By           9:30 a.m. New York time on the Business Day following the Initial Effective
          Date, the Company shall file with the SEC in accordance with Rule 424 under the
          1933 Act the final prospectus to be used in connection with sales pursuant to
          such Initial Registration Statement.  

4 

    
    b.       Additional
Mandatory Registrations. The Company shall prepare, and, as           soon as
practicable but in no event later than the Additional Filing Deadline,           file
with the SEC an Additional Registration Statement on Form S-3 covering the
          resale of all of the Additional Registrable Securities not previously
registered           on an Additional Registration Statement hereunder. To the extent the
staff of           the SEC does not permit the Additional Required Registration Amount to
be           registered on an Additional Registration Statement, the Company shall file
          Additional Registration Statements successively trying to register on each such
          Additional Registration Statement the maximum number of remaining Additional
          Registrable Securities until the Additional Required Registration Amount has
          been registered with the SEC. In the event that Form S-3 is unavailable for
such           a registration, the Company shall use Form S-1 or such other form as is
          available for such a registration on another appropriate form reasonably
          acceptable to the Required Holders, subject to the provisions of Section 2(e).
          Each Additional Registration Statement prepared pursuant hereto shall register
          for resale at least that number of shares of Common Stock equal to the
          Additional Required Registration Amount determined as of the date such
          Additional Registration Statement is initially filed with the SEC. Each
          Additional Registration Statement shall contain (except if otherwise directed
by           the Required Holders) the “Selling Stockholders” and
          “Plan of Distribution” sections in substantially the form
          attached hereto as Exhibit B. The Company shall use its best efforts to
          have each Additional Registration Statement declared effective by the SEC as
          soon as practicable, but in no event later than the Additional Effectiveness
          Deadline. By 9:30 a.m. New York time on the Business Day following the
          Additional Effective Date, the Company shall file with the SEC in accordance
          with Rule 424 under the 1933 Act the final prospectus to be used in connection
          with sales pursuant to such Additional Registration Statement.  

    
    c.       Allocation
of Registrable Securities. The initial number of Registrable           Securities
included in any Registration Statement and any increase or decrease           in the
number of Registrable Securities included therein shall be allocated pro           rata
among the Investors based on the number of Registrable Securities held by           each
Investor at the time the Registration Statement covering such initial           number of
Registrable Securities or increase or decrease thereof is declared           effective by
the SEC. In the event that an Investor sells or otherwise transfers           any of such
Investor’s Registrable Securities, each transferee shall be           allocated a
pro rata portion of the then remaining number of Registrable           Securities
included in such Registration Statement for such transferor. Any           shares of
Common Stock included in a Registration Statement and which remain           allocated to
any Person which ceases to hold any Registrable Securities covered           by such
Registration Statement shall be allocated to the remaining Investors,           pro rata
based on the number of Registrable Securities then held by such           Investors which
are covered by such Registration Statement. In no event shall           the Company
include any securities other than Registrable Securities on any           Registration
Statement without the prior written consent of the Required           Holders.  

    
    d.       Legal
Counsel. Subject to Section 5 hereof, the Required Holders shall           have the
right to select one legal counsel to review and oversee any           registration
pursuant to this Section 2 (“Legal Counsel”),           which shall be
Schulte Roth & Zabel LLP or such other counsel as thereafter           designated by
the Required Holders. The Company and Legal Counsel shall           reasonably cooperate
with each other in performing the Company’s           obligations under this
Agreement.  

    
    e.       Ineligibility
for Form S-3. In the event that Form S-3 is not available           for the
registration of the resale of Registrable Securities hereunder, the           Company
shall (i) register the resale of the Registrable Securities on Form S-1           or
another appropriate form reasonably acceptable to the Required Holders and           (ii)
undertake to register the Registrable Securities on Form S-3 as soon as           such
form is available, provided that the Company shall maintain the           effectiveness
of the Registration Statement then in effect until such time as a           Registration
Statement on Form S-3 covering the Registrable Securities has been           declared
effective by the SEC.  

5 

    
    f.       Sufficient
Number of Shares Registered. In the event the number of shares           available
under a Registration Statement filed pursuant to Section 2(a) or           Section 2(b)
is insufficient to cover all of the Registrable Securities required           to be
covered by such Registration Statement or an Investor’s allocated           portion
of the Registrable Securities pursuant to Section 2(c), the Company           shall amend
the applicable Registration Statement, or file a new Registration           Statement (on
the short form available therefor, if applicable), or both, so as           to cover at
least the Required Registration Amount as of the Trading Day           immediately
preceding the date of the filing of such amendment or new           Registration
Statement, in each case, as soon as practicable, but in any event           not later
than fifteen (15) days after the necessity therefor arises. The           Company shall
use its best efforts to cause such amendment and/or new           Registration Statement
to become effective as soon as practicable following the           filing thereof. For
purposes of the foregoing provision, the number of shares           available under a
Registration Statement shall be deemed “insufficient to           cover all of the
Registrable Securities” if at any time the number of           shares of Common
Stock available for resale under the Registration Statement is           less than the
product determined by multiplying (i) the Required Registration           Amount as of
such time by (ii) 0.90. The calculation set forth in the foregoing           sentence
shall be made without regard to any limitations on the conversion           and/or
redemption of the Notes or exercise of the Warrants and such calculation           shall
assume that the Notes are then convertible into shares of Common Stock at           the
then prevailing Conversion Rate (as defined in the Notes), the Warrants are
          then exercisable for shares of Common Stock at the then prevailing Exercise
          Price (as defined in the Warrants) and the maximum number of Interest Shares
          under the Notes are issuable at then prevailing Interest Conversion Price (as
          defined in the Notes), assuming the initial outstanding principal amount of the
          Notes remains outstanding through the scheduled Maturity Date (as defined in
the           Notes) and assuming no conversions or redemptions of the Notes prior to the
          scheduled Maturity Date.  

    
    g.       Effect
of Failure to File and Obtain and Maintain Effectiveness of           Registration
Statement. If (i) a Registration Statement covering all of the           Registrable
Securities required to be covered thereby and required to be filed           by the
Company pursuant to this Agreement is (A) not filed with the SEC on or           before
the respective Filing Deadline (a “Filing Failure”) or           (B) not
declared effective by the SEC on or before the respective Effectiveness
          Deadline (an “Effectiveness Failure”) or (ii) on any day after
          the Effective Date sales of all of the Registrable Securities required to be
          included on such Registration Statement cannot be made (other than during an
          Allowable Grace Period (as defined in Section 3(r)) pursuant to such
          Registration Statement or otherwise (including, without limitation, because of
a           failure to keep such Registration Statement effective, to disclose such
          information as is necessary for sales to be made pursuant to such Registration
          Statement, to register a sufficient number of shares of Common Stock or to
          maintain the listing of the Common Stock) (a “Maintenance
          Failure”) then, as partial relief for the damages to any holder by
          reason of any such delay in or reduction of its ability to sell the underlying
          shares of Common Stock (which remedy shall not be exclusive of any other
          remedies available at law or in equity), the Company shall pay to each holder
of           Registrable Securities relating to such Registration Statement an amount in
cash           equal to two percent (2.0%) of the aggregate Purchase Price (as such term
is           defined in the Securities Purchase Agreement) of such Investor’s
          Registrable Securities whether or not included in such Registration Statement,
          on each of the following dates: (i) the day of a Filing Failure; (ii) the day
of           an Effectiveness Failure; (iii) the initial day of a Maintenance Failure;
(iv)           on every thirtieth day after the day of a Filing Failure and thereafter
(pro           rated for periods totaling less than thirty days) until such Filing
Failure is           cured; (v) on every thirtieth day after the day of an Effectiveness
Failure and           thereafter (pro rated for periods totaling less than thirty days)
until such           Effectiveness Failure is cured; and (vi) on every thirtieth day
after the           initial day of a Maintenance Failure and thereafter (pro rated for
periods           totaling less than thirty days) until such Maintenance Failure is
cured. The           payments to which a holder shall be entitled pursuant to this
Section 2(g) are           referred to herein as “Registration Delay Payments.”          Registration
Delay Payments shall be paid on the earlier of (I) the dates set           forth above
and (II) the third Business Day after the event or failure giving           rise to the
Registration Delay Payments is cured. In the event the Company fails           to make
Registration Delay Payments in a timely manner, such Registration Delay
          Payments shall bear interest at the rate of one percent (1.0%) per month
          (prorated for partial months) until paid in full.  

6 

    
    3.        Related
Obligations.  

        At
such time as the Company is obligated to file a Registration Statement with the SEC
pursuant to Section 2(a), 2(b), 2(e) or 2(f), the Company will use its best efforts to
effect the registration of the Registrable Securities in accordance with the intended
method of disposition thereof and, pursuant thereto, the Company shall have the following
obligations: 

    
    a.       The
Company shall promptly prepare and file with the SEC a Registration           Statement
with respect to the Registrable Securities and use its best efforts to           cause
such Registration Statement relating to the Registrable Securities to           become
effective as soon as practicable after such filing (but in no event later           than
the Effectiveness Deadline). The Company shall keep each Registration           Statement
effective pursuant to Rule 415 at all times until the earlier of (i)           the date
as of which the Investors may sell all of the Registrable Securities           covered by
such Registration Statement without the requirement to be in           compliance with
Rule 144(c)(1) and otherwise without restriction or limitation           pursuant to Rule
144 (or any successor thereto) promulgated under the 1933 Act           or (ii) the date
on which the Investors shall have sold all of the Registrable           Securities
covered by such Registration Statement (the “Registration           Period”).
The Company shall ensure that each Registration Statement           (including any
amendments or supplements thereto and prospectuses contained           therein) shall not
contain any untrue statement of a material fact or omit to           state a material
fact required to be stated therein, or necessary to make the           statements therein
(in the case of prospectuses, in the light of the           circumstances in which they
were made) not misleading. The term “best           efforts” shall mean, among
other things, that the Company shall submit to           the SEC, within two (2) Business
Days after the later of the date that (i) the           Company learns that no review of
a particular Registration Statement will be           made by the staff of the SEC or
that the staff has no further comments on a           particular Registration Statement,
as the case may be, and (ii) the approval of           Legal Counsel pursuant to Section
3(c) (which approval is immediately sought), a           request for acceleration of
effectiveness of such Registration Statement to a           time and date not later than
two (2) Business Days after the submission of such           request. The Company shall
respond in writing to comments made by the SEC in           respect of a Registration
Statement as soon as practicable, but in no event           later than fifteen (15) days
after the receipt of comments by or notice from the           SEC that an amendment is
required in order for a Registration Statement to be           declared effective.  

7 

    
    b.       The
Company shall prepare and file with the SEC such amendments (including
          post-effective amendments) and supplements to a Registration Statement and the
          prospectus used in connection with such Registration Statement, which
prospectus           is to be filed pursuant to Rule 424 promulgated under the 1933 Act,
as may be           necessary to keep such Registration Statement effective at all times
during the           Registration Period, and, during such period, comply with the
provisions of the           1933 Act with respect to the disposition of all Registrable
Securities of the           Company covered by such Registration Statement until such
time as all of such           Registrable Securities shall have been disposed of in
accordance with the           intended methods of disposition by the seller or sellers
thereof as set forth in           such Registration Statement. In the case of amendments
and supplements to a           Registration Statement which are required to be filed
pursuant to this Agreement           (including pursuant to this Section 3(b)) by reason
of the Company filing a           report on Form 10-Q, Form 10-QSB, Form 10-K, Form
10-KSB or any analogous report           under the Securities Exchange Act of 1934, as
amended (the “1934           Act”), the Company shall have incorporated
such report by reference           into such Registration Statement, if applicable, or
shall file such amendments           or supplements with the SEC on the same day on which
the 1934 Act report is           filed which created the requirement for the Company to
amend or supplement such           Registration Statement.  

    
    c.       The
Company shall (A) permit Legal Counsel to review and comment upon (i) a
          Registration Statement at least five (5) Business Days prior to its filing with
          the SEC and (ii) all amendments and supplements to all Registration Statements
          (except for Annual Reports on Form 10-K or Form 10-KSB, Quarterly Reports on
          Form 10-Q or Form 10-QSB, Current Reports on Form 8-K, and any similar or
          successor reports) within a reasonable number of days prior to their filing
with           the SEC, and (B) not file any Registration Statement or amendment or
supplement           thereto in a form to which Legal Counsel reasonably objects. The
Company shall           not submit a request for acceleration of the effectiveness of a
Registration           Statement or any amendment or supplement thereto without the prior
approval of           Legal Counsel, which consent shall not be unreasonably withheld.
The Company           shall furnish to Legal Counsel, without charge, (i) copies of any
correspondence           from the SEC or the staff of the SEC to the Company or its
representatives           relating to any Registration Statement, (ii) promptly after the
same is prepared           and filed with the SEC, one copy of any Registration Statement
and any           amendment(s) thereto, including financial statements and schedules, all
          documents incorporated therein by reference, if requested by an Investor, and
          all exhibits and (iii) upon the effectiveness of any Registration Statement,
one           copy of the prospectus included in such Registration Statement and all
          amendments and supplements thereto. The Company shall reasonably cooperate with
          Legal Counsel in performing the Company’s obligations pursuant to this
          Section 3.  

8 

    
    d.       The
Company shall furnish to each Investor whose Registrable Securities are
          included in any Registration Statement, without charge, (i) promptly after the
          same is prepared and filed with the SEC, at least one copy of such Registration
          Statement and any amendment(s) thereto, including financial statements and
          schedules, all documents incorporated therein by reference, if requested by an
          Investor, all exhibits and each preliminary prospectus, (ii) upon the
          effectiveness of any Registration Statement, ten (10) copies of the prospectus
          included in such Registration Statement and all amendments and supplements
          thereto (or such other number of copies as such Investor may reasonably
request)           and (iii) such other documents, including copies of any preliminary or
final           prospectus, as such Investor may reasonably request from time to time in
order           to facilitate the disposition of the Registrable Securities owned by such
          Investor.  

    
    e.       The
Company shall use its best efforts to (i) register and qualify, unless an
          exemption from registration and qualification applies, the resale by Investors
          of the Registrable Securities covered by a Registration Statement under such
          other securities or “blue sky” laws of all applicable jurisdictions
in           the United States, (ii) prepare and file in those jurisdictions, such
amendments           (including post-effective amendments) and supplements to such
registrations and           qualifications as may be necessary to maintain the
effectiveness thereof during           the Registration Period, (iii) take such other
actions as may be necessary to           maintain such registrations and qualifications
in effect at all times during the           Registration Period, and (iv) take all other
actions reasonably necessary or           advisable to qualify the Registrable Securities
for sale in such jurisdictions;           provided, however, that the Company shall not
be required in connection           therewith or as a condition thereto to (x) qualify to
do business in any           jurisdiction where it would not otherwise be required to
qualify but for this           Section 3(e), (y) subject itself to general taxation in
any such jurisdiction,           or (z) file a general consent to service of process in
any such jurisdiction.           The Company shall promptly notify Legal Counsel and each
Investor who holds           Registrable Securities of the receipt by the Company of any
notification with           respect to the suspension of the registration or
qualification of any of the           Registrable Securities for sale under the
securities or “blue sky”          laws of any jurisdiction in the United States
or its receipt of actual notice of           the initiation or threatening of any
proceeding for such purpose.  

    
    f.       The
Company shall notify Legal Counsel and each Investor in writing of the
          happening of any event, as promptly as practicable after becoming aware of such
          event, as a result of which the prospectus included in a Registration
Statement,           as then in effect, includes an untrue statement of a material fact
or omission           to state a material fact required to be stated therein or necessary
to make the           statements therein, in the light of the circumstances under which
they were           made, not misleading (provided that in no event shall such notice
contain any           material, nonpublic information), and, subject to Section 3(r),
promptly prepare           a supplement or amendment to such Registration Statement to
correct such untrue           statement or omission and deliver ten (10) copies of such
supplement or           amendment to Legal Counsel and each Investor (or such other
number of copies as           Legal Counsel or such Investor may reasonably request). The
Company shall also           promptly notify Legal Counsel and each Investor in writing
(i) when a prospectus           or any prospectus supplement or post-effective amendment
has been filed, and           when a Registration Statement or any post-effective
amendment has become           effective (notification of such effectiveness shall be
delivered to Legal           Counsel and each Investor by facsimile or e-mail on the same
day of such           effectiveness and by overnight mail), (ii) of any request by the
SEC for           amendments or supplements to a Registration Statement or related
prospectus or           related information, and (iii) of the Company’s reasonable
determination           that a post-effective amendment to a Registration Statement would
be           appropriate.  

9 

    
    g.       The
Company shall use its best efforts to prevent the issuance of any stop order           or
other suspension of effectiveness of a Registration Statement, or the
          suspension of the qualification of any of the Registrable Securities for sale
in           any jurisdiction and, if such an order or suspension is issued, to obtain
the           withdrawal of such order or suspension at the earliest possible moment and
to           notify Legal Counsel and each Investor who holds Registrable Securities
being           sold of the issuance of such order and the resolution thereof or its
receipt of           actual notice of the initiation or threat of any proceeding for such
purpose.  

    
    h.       If
any Investor is required under applicable securities laws to be described in
          the Registration Statement as an underwriter or an Investor believes that it
          could reasonably be deemed to be an underwriter of Registrable Securities, at
          the reasonable request of such Investor, the Company shall furnish to such
          Investor, on the date of the effectiveness of the Registration Statement and
          thereafter from time to time on such dates as an Investor may reasonably
request           (i) a letter, dated such date, from the Company’s independent
certified           public accountants in form and substance as is customarily given by
independent           certified public accountants to underwriters in an underwritten
public offering,           addressed to the Investors, and (ii) an opinion, dated as of
such date, of           counsel representing the Company for purposes of such
Registration Statement, in           form, scope and substance as is customarily given in
an underwritten public           offering, addressed to the Investors.  

    
    i.       If
any Investor is required under applicable securities laws to be described in
          the Registration Statement as an underwriter or an Investor believes that it
          could reasonably be deemed to be an underwriter of Registrable Securities, the
          Company shall make available for inspection by (i) such Investor, (ii) Legal
          Counsel and (iii) one firm of accountants or other agents retained by the
          Investors (collectively, the “Inspectors”), all pertinent
          financial and other records, and pertinent corporate documents and properties
of           the Company (collectively, the “Records”), as shall be
          reasonably deemed necessary by each Inspector, and cause the Company’s
          officers, directors and employees to supply all information which any Inspector
          may reasonably request; provided, however, that each Inspector shall agree to
          hold in strict confidence and shall not make any disclosure (except to an
          Investor) or use of any Record or other information which the Company
determines           in good faith to be confidential, and of which determination the
Inspectors are           so notified, unless (a) the disclosure of such Records is
necessary to avoid or           correct a misstatement or omission in any Registration
Statement or is otherwise           required under the 1933 Act, (b) the release of such
Records is ordered pursuant           to a final, non-appealable subpoena or order from a
court or government body of           competent jurisdiction, or (c) the information in
such Records has been made           generally available to the public other than by
disclosure in violation of this           Agreement. Each Investor agrees that it shall,
upon learning that disclosure of           such Records is sought in or by a court or
governmental body of competent           jurisdiction or through other means, give prompt
notice to the Company and allow           the Company, at its expense, to undertake
appropriate action to prevent           disclosure of, or to obtain a protective order
for, the Records deemed           confidential. Nothing herein (or in any other
confidentiality agreement between           the Company and any Investor) shall be deemed
to limit the Investors’          ability to sell Registrable Securities in a manner
which is otherwise consistent           with applicable laws and regulations.  

10 

    
    j.       The
Company shall hold in confidence and not make any disclosure of information
          concerning an Investor provided to the Company unless (i) disclosure of such
          information is necessary to comply with federal or state securities laws, (ii)
          the disclosure of such information is necessary to avoid or correct a
          misstatement or omission in any Registration Statement, (iii) the release of
          such information is ordered pursuant to a subpoena or other final,
          non-appealable order from a court or governmental body of competent
          jurisdiction, or (iv) such information has been made generally available to the
          public other than by disclosure in violation of this Agreement or any other
          agreement. The Company agrees that it shall, upon learning that disclosure of
          such information concerning an Investor is sought in or by a court or
          governmental body of competent jurisdiction or through other means, give prompt
          written notice to such Investor and allow such Investor, at the Investor’s
          expense, to undertake appropriate action to prevent disclosure of, or to obtain
          a protective order for, such information.  

    
    k.       The
Company shall use its best efforts either to (i) cause all of the           Registrable
Securities covered by a Registration Statement to be listed on each           securities
exchange on which securities of the same class or series issued by           the Company
are then listed, if any, if the listing of such Registrable           Securities is then
permitted under the rules of such exchange or (ii) secure the           inclusion for
quotation of all of the Registrable Securities on The NASDAQ           Global Select
Market or (iii) if, despite the Company’s best efforts, the           Company is
unsuccessful in satisfying the preceding clauses (i) and (ii), to           secure the
inclusion for quotation on The NASDAQ Global Market, the New York           Stock
Exchange, The NASDAQ Capital Market or the American Stock Exchange for           such
Registrable Securities and, without limiting the generality of the           foregoing,
to use its best efforts to arrange for at least two market makers to           register
with the National Association of Securities Dealers, Inc.           (“NASD”) as
such with respect to such Registrable Securities. The           Company shall pay all
fees and expenses in connection with satisfying its           obligation under this
Section 3(k).  

    
    l.       The
Company shall cooperate with the Investors who hold Registrable Securities
          being offered and, to the extent applicable, facilitate the timely preparation
          and delivery of certificates (not bearing any restrictive legend) representing
          the Registrable Securities to be offered pursuant to a Registration Statement
          and enable such certificates to be in such denominations or amounts, as the
case           may be, as the Investors may reasonably request and registered in such
names as           the Investors may request.  

    
    m.       If
requested by an Investor, the Company shall as soon as practicable (i)
          incorporate in a prospectus supplement or post-effective amendment such
          information as an Investor reasonably requests to be included therein relating
          to the sale and distribution of Registrable Securities, including, without
          limitation, information with respect to the number of Registrable Securities
          being offered or sold, the purchase price being paid therefor and any other
          terms of the offering of the Registrable Securities to be sold in such
offering;           (ii) make all required filings of such prospectus supplement or
post-effective           amendment after being notified of the matters to be incorporated
in such           prospectus supplement or post-effective amendment; and (iii) supplement
or make           amendments to any Registration Statement if reasonably requested by an
Investor           holding any Registrable Securities.  

    
    n.       The
Company shall use its best efforts to cause the Registrable Securities           covered
by a Registration Statement to be registered with or approved by such           other
governmental agencies or authorities as may be necessary to consummate the
          disposition of such Registrable Securities.  

11 

    
    o.       The
Company shall make generally available to its security holders as soon as
          practical, but not later than ninety (90) days after the close of the period
          covered thereby, an earnings statement (in form complying with, and in the
          manner provided by, the provisions of Rule 158 under the 1933 Act) covering a
          twelve-month period beginning not later than the first day of the Company’s
          fiscal quarter next following the applicable Effective Date of a Registration
          Statement.  

    
    p.       The
Company shall otherwise use its best efforts to comply with all applicable
          rules and regulations of the SEC in connection with any registration hereunder.  

    
    q.       Within
two (2) Business Days after a Registration Statement which covers           Registrable
Securities is ordered effective by the SEC, the Company shall           deliver, and
shall cause legal counsel for the Company to deliver, to the           transfer agent for
such Registrable Securities (with copies to the Investors           whose Registrable
Securities are included in such Registration Statement)           confirmation that such
Registration Statement has been declared effective by the           SEC in the form
attached hereto as Exhibit A.  

    
    r.       Notwithstanding
anything to the contrary herein, at any time after the Effective           Date, the
Company may delay the disclosure of material, non-public information           concerning
the Company the disclosure of which at the time is not, in the good           faith
opinion of the Board of Directors of the Company and its counsel, in the           best
interest of the Company and, in the opinion of counsel to the Company,
          otherwise required (a “Grace Period”); provided, that the
          Company shall promptly (i) notify the Investors in writing of the existence of
          material, non-public information giving rise to a Grace Period (provided that
in           each notice the Company will not disclose the content of such material,
          non-public information to the Investors) and the date on which the Grace Period
          will begin, and (ii) notify the Investors in writing of the date on which
          the Grace Period ends; and, provided further, that no Grace Period shall exceed
          five (5) consecutive days and during any three hundred sixty five (365) day
          period such Grace Periods shall not exceed an aggregate of twenty (20) days and
          the first day of any Grace Period must be at least five (5) Trading Days after
          the last day of any prior Grace Period (each, an “Allowable Grace
          Period”). For purposes of determining the length of a Grace Period
          above, the Grace Period shall begin on and include the date the Investors
          receive the notice referred to in clause (i) and shall end on and include the
          later of the date the Investors receive the notice referred to in clause (ii)
          and the date referred to in such notice. The provisions of Section 3(g) hereof
          shall not be applicable during the period of any Allowable Grace Period. Upon
          expiration of the Grace Period, the Company shall again be bound by the first
          sentence of Section 3(f) with respect to the information giving rise thereto
          unless such material, non-public information is no longer applicable.
          Notwithstanding anything to the contrary, the Company shall cause its transfer
          agent to deliver unlegended shares of Common Stock to a transferee of an
          Investor in accordance with the terms of the Securities Purchase Agreement in
          connection with any sale of Registrable Securities with respect to which an
          Investor has entered into a contract for sale, prior to the Investor’s
          receipt of the notice of a Grace Period and for which the Investor has not yet
          settled.  

    
    s.       Neither
the Company nor any Subsidiary or affiliate thereof shall identify any           Buyer as
an underwriter in any public disclosure or filing with the SEC or any           Principal
Market (as defined in the Securities Purchase Agreement) or Eligible           Market and
any Buyer being deemed an underwriter by the SEC shall not relieve           the Company
of any obligations it has under this Agreement or any other           Transaction
Document (as defined in the Securities Purchase Agreement); provided, however,
that the foregoing shall not prohibit the           Company from including the disclosure
found in the “Plan of           Distribution” section attached hereto as Exhibit
B in the           Registration Statement.  

12 

    
    4.       Obligations
of the Investors.  

    
    a.       At
least five (5) Business Days prior to the first anticipated filing date of a
          Registration Statement, the Company shall notify each Investor in writing of
the           information the Company requires from each such Investor if such Investor
elects           to have any of such Investor’s Registrable Securities included in
such           Registration Statement. It shall be a condition precedent to the
obligations of           the Company to complete the registration pursuant to this
Agreement with respect           to the Registrable Securities of a particular Investor
that such Investor shall           furnish to the Company such information regarding
itself, the Registrable           Securities held by it and the intended method of
disposition of the Registrable           Securities held by it, as shall be reasonably
required to effect and maintain           the effectiveness of the registration of such
Registrable Securities and shall           execute such documents in connection with such
registration as the Company may           reasonably request.  

    
    b.       Each
Investor, by such Investor’s acceptance of the Registrable Securities,
          agrees to cooperate with the Company as reasonably requested by the Company in
          connection with the preparation and filing of any Registration Statement
          hereunder, unless such Investor has notified the Company in writing of such
          Investor’s election to exclude all of such Investor’s Registrable
          Securities from such Registration Statement.  

    
    c.       Each
Investor agrees that, upon receipt of any notice from the Company of the
          happening of any event of the kind described in Section 3(g) or the first
          sentence of 3(f), such Investor will immediately discontinue disposition of
          Registrable Securities pursuant to any Registration Statement(s) covering such
          Registrable Securities until such Investor’s receipt of the copies of the
          supplemented or amended prospectus contemplated by Section 3(g) or the first
          sentence of 3(f) or receipt of notice that no supplement or amendment is
          required. Notwithstanding anything to the contrary, the Company shall cause its
          transfer agent to deliver unlegended shares of Common Stock to a transferee of
          an Investor in accordance with the terms of the Securities Purchase Agreement
in           connection with any sale of Registrable Securities with respect to which an
          Investor has entered into a contract for sale prior to the Investor’s
          receipt of a notice from the Company of the happening of any event of the kind
          described in Section 3(g) or the first sentence of 3(f) and for which the
          Investor has not yet settled.  

    
    d.       Each
Investor covenants and agrees that it will comply with the prospectus           delivery
requirements of the 1933 Act as applicable to it or an exemption           therefrom in
connection with sales of Registrable Securities pursuant to the           Registration
Statement.  

13 

    
    5.           Expenses
of Registration.  

        All
reasonable expenses, other than underwriting discounts and commissions, incurred in
connection with registrations, filings or qualifications pursuant to Sections 2 and 3,
including, without limitation, all registration, listing and qualifications fees, printers
and accounting fees, and fees and disbursements of counsel for the Company shall be paid
by the Company. The Company shall also reimburse the Investors for the fees and
disbursements of Legal Counsel in connection with registration, filing or qualification
pursuant to Sections 2 and 3 of this Agreement which amount shall be limited to $20,000
for each such registration, filing or qualification. 

    
    6.        Indemnification.  

        In
the event any Registrable Securities are included in a Registration Statement under this
Agreement: 

    
    a.       To
the fullest extent permitted by law, the Company will, and hereby does,
          indemnify, hold harmless and defend each Investor, the directors, officers,
          members, partners, employees, agents, representatives of, and each Person, if
          any, who controls any Investor within the meaning of the 1933 Act or the 1934
          Act (each, an “Indemnified Person”), against any losses,
          claims, damages, liabilities, judgments, fines, penalties, charges, costs,
          reasonable attorneys’ fees, amounts paid in settlement or expenses, joint
          or several, (collectively, “Claims”) incurred in
investigating,           preparing or defending any action, claim, suit, inquiry,
proceeding,           investigation or appeal taken from the foregoing by or before any
court or           governmental, administrative or other regulatory agency, body or the
SEC,           whether pending or threatened, whether or not an indemnified party is or
may be           a party thereto (“Indemnified Damages”), to which any
of them           may become subject insofar as such Claims (or actions or proceedings,
whether           commenced or threatened, in respect thereof) arise out of or are based
upon: (i)           any untrue statement or alleged untrue statement of a material fact
in a           Registration Statement or any post-effective amendment thereto or in any
filing           made in connection with the qualification of the offering under the
securities           or other “blue sky” laws of any jurisdiction in which
Registrable           Securities are offered (“Blue Sky Filing”), or the
omission or           alleged omission to state a material fact required to be stated
therein or           necessary to make the statements therein not misleading, (ii) any
untrue           statement or alleged untrue statement of a material fact contained in
any           preliminary prospectus if used prior to the effective date of such
Registration           Statement, or contained in the final prospectus (as amended or
supplemented, if           the Company files any amendment thereof or supplement thereto
with the SEC) or           the omission or alleged omission to state therein any material
fact necessary to           make the statements made therein, in light of the
circumstances under which the           statements therein were made, not misleading,
(iii) any violation or alleged           violation by the Company of the 1933 Act, the
1934 Act, any other law,           including, without limitation, any state securities
law, or any rule or           regulation thereunder relating to the offer or sale of the
Registrable           Securities pursuant to a Registration Statement or (iv) any
violation of this           Agreement (the matters in the foregoing clauses (i) through
(iv) being,           collectively, “Violations”). Subject to Section
6(c), the           Company shall reimburse the Indemnified Persons, promptly as such
expenses are           incurred and are due and payable, for any legal fees or other
reasonable           expenses incurred by them in connection with investigating or
defending any such           Claim. Notwithstanding anything to the contrary contained
herein, the           indemnification agreement contained in this Section 6(a): (i) shall
not apply to           a Claim by an Indemnified Person arising out of or based upon a
Violation which           occurs in reliance upon and in conformity with information
furnished in writing           to the Company by such Indemnified Person for such
Indemnified Person expressly           for use in connection with the preparation of the
Registration Statement or any           such amendment thereof or supplement thereto, if
such prospectus was timely made           available by the Company pursuant to Section
3(d); and (ii) shall not apply to           amounts paid in settlement of any Claim if
such settlement is effected without           the prior written consent of the Company,
which consent shall not be           unreasonably withheld or delayed. Such indemnity
shall remain in full force and           effect regardless of any investigation made by
or on behalf of the Indemnified           Person and shall survive the transfer of the
Registrable Securities by the           Investors pursuant to Section 9.  

14 

    
    b.       In
connection with any Registration Statement in which an Investor is
          participating, each such Investor agrees to severally and not jointly
indemnify,           hold harmless and defend, to the same extent and in the same manner
as is set           forth in Section 6(a), the Company, each of its directors, each of
its officers           who signs the Registration Statement and each Person, if any, who
controls the           Company within the meaning of the 1933 Act or the 1934 Act (each,
an           “Indemnified Party”), against any Claim or Indemnified
Damages           to which any of them may become subject, under the 1933 Act, the 1934
Act or           otherwise, insofar as such Claim or Indemnified Damages arise out of or
are           based upon any Violation, in each case to the extent, and only to the
extent,           that such Violation occurs in reliance upon and in conformity with
written           information furnished to the Company by such Investor expressly for use
in           connection with such Registration Statement; and, subject to Section 6(c),
such           Investor shall reimburse the Indemnified Party, promptly as such expenses
are           incurred and are due and payable, for any legal or other expenses
reasonably           incurred by an Indemnified Party in connection with investigating or
defending           any such Claim; provided, however, that the indemnity agreement
contained in           this Section 6(b) and the agreement with respect to contribution
contained in           Section 7 shall not apply to amounts paid in settlement of any
Claim if such           settlement is effected without the prior written consent of such
Investor, which           consent shall not be unreasonably withheld or delayed;
provided, further,           however, that the Investor shall be liable under this
Section 6(b) for only that           amount of a Claim or Indemnified Damages as does not
exceed the net proceeds to           such Investor as a result of the sale of Registrable
Securities pursuant to such           Registration Statement. Such indemnity shall remain
in full force and effect           regardless of any investigation made by or on behalf
of such Indemnified Party           and shall survive the transfer of the Registrable
Securities by the Investors           pursuant to Section 9.  

    
    c.       Promptly
after receipt by an Indemnified Person or Indemnified Party under this           Section
6 of notice of the commencement of any action or proceeding (including           any
governmental action or proceeding) involving a Claim, such Indemnified           Person
or Indemnified Party shall, if a Claim in respect thereof is to be made           against
any indemnifying party under this Section 6, deliver to the indemnifying           party
a written notice of the commencement thereof, and the indemnifying party           shall
have the right to participate in, and, to the extent the indemnifying           party so
desires, jointly with any other indemnifying party similarly noticed,           to assume
control of the defense thereof with counsel mutually satisfactory to           the
indemnifying party and the Indemnified Person or the Indemnified Party, as           the
case may be; provided, however, that an Indemnified Person or Indemnified           Party
shall have the right to retain its own counsel with the fees and expenses           of
not more than one counsel for all such Indemnified Person or Indemnified           Party
to be paid by the indemnifying party, if, in the reasonable opinion of           counsel
retained by the indemnifying party, the representation by such counsel           of the
Indemnified Person or Indemnified Party and the indemnifying party would           be
inappropriate due to actual or potential differing interests between such
          Indemnified Person or Indemnified Party and any other party represented by such
          counsel in such proceeding. In the case of an Indemnified Person, legal counsel
          referred to in the immediately preceding sentence shall be selected by the
          Investors holding at least a majorityin interest of the Registrable
          Securities included in the Registration Statement to which the Claim relates.
          The Indemnified Party or Indemnified Person shall cooperate reasonably with the
          indemnifying party in connection with any negotiation or defense of any such
          action or Claim by the indemnifying party and shall furnish to the indemnifying
          party all information reasonably available to the Indemnified Party or
          Indemnified Person which relates to such action or Claim. The indemnifying
party           shall keep the Indemnified Party or Indemnified Person fully apprised at
all           times as to the status of the defense or any settlement negotiations with
          respect thereto. No indemnifying party shall be liable for any settlement of
any           action, claim or proceeding effected without its prior written consent,
          provided, however, that the indemnifying party shall not unreasonably withhold,
          delay or condition its consent. No indemnifying party shall, without the prior
          written consent of the Indemnified Party or Indemnified Person, consent to
entry           of any judgment or enter into any settlement or other compromise which
does not           include as an unconditional term thereof the giving by the claimant or
plaintiff           to such Indemnified Party or Indemnified Person of a release from all
liability           in respect to such Claim or litigation, and such settlement shall not
include           any admission as to fault on the part of the Indemnified Party.
Following           indemnification as provided for hereunder, the indemnifying party
shall be           subrogated to all rights of the Indemnified Party or Indemnified
Person with           respect to all third parties, firms or corporations relating to the
matter for           which indemnification has been made. The failure to deliver written
notice to           the indemnifying party within a reasonable time of the commencement
of any such           action shall not relieve such indemnifying party of any liability
to the           Indemnified Person or Indemnified Party under this Section 6, except to
the           extent that the indemnifying party is prejudiced in its ability to defend
such           action.  

15 

    
    d.       The
indemnification required by this Section 6 shall be made by periodic           payments
of the amount thereof during the course of the investigation or           defense, as and
when bills are received or Indemnified Damages are incurred.  

    
    e.       The
indemnity agreements contained herein shall be in addition to (i) any cause           of
action or similar right of the Indemnified Party or Indemnified Person           against
the indemnifying party or others, and (ii) any liabilities the           indemnifying
party may be subject to pursuant to the law.  

    
    7.       Contribution.  

        To
the extent any indemnification by an indemnifying party is prohibited or limited by law,
the indemnifying party agrees to make the maximum contribution with respect to any amounts
for which it would otherwise be liable under Section 6 to the fullest extent permitted by
law; provided, however, that: (i) no Person involved in the sale of Registrable Securities
which Person is guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from
any Person involved in such sale of Registrable Securities who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited in amount to the amount of net proceeds received by such
seller from the sale of such Registrable Securities pursuant to such Registration
Statement. 

16 

    
    8.           Reports
Under the 1934 Act.  

        With
a view to making available to the Investors the benefits of Rule 144 promulgated under the
1933 Act or any other similar rule or regulation of the SEC that may at any time permit
the Investors to sell securities of the Company to the public without registration
(“Rule 144”), the Company agrees to: 

    
    a.       make
and keep public information available, as those terms are understood and
          defined in Rule 144;  

    
    b.       file
with the SEC in a timely manner all reports and other documents required of           the
Company under the 1933 Act and the 1934 Act so long as the Company remains
          subject to such requirements and the filing of such reports and other documents
          is required for the applicable provisions of Rule 144; and  

    
    c.       furnish
to each Investor so long as such Investor owns Registrable Securities,           promptly
upon request, (i) a written statement by the Company, if true, that it           has
complied with the reporting requirements of Rule 144, the 1933 Act and the           1934
Act, (ii) a copy of the most recent annual or quarterly report of the           Company
and such other reports and documents so filed by the Company, and (iii)           such
other information as may be reasonably requested to permit the Investors to
          sell such securities pursuant to Rule 144 without registration.  

    
    9.       Assignment
of Registration Rights.  

        The
rights under this Agreement shall be automatically assignable by the Investors to any
transferee of all or any portion of such Investor’s Registrable Securities if: (i)
the Investor agrees in writing with the transferee or assignee to assign such rights, and
a copy of such agreement is furnished to the Company within a reasonable time after such
assignment; (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (a) the name and address of such transferee
or assignee, and (b) the securities with respect to which such registration rights are
being transferred or assigned; (iii) immediately following such transfer or assignment the
further disposition of such securities by the transferee or assignee is restricted under
the 1933 Act or applicable state securities laws; (iv) at or before the time the Company
receives the written notice contemplated by clause (ii) of this sentence the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions contained
herein; and (v) such transfer shall have been made in accordance with the applicable
requirements of the Securities Purchase Agreement. 

    
    10.           Amendment
of Registration Rights.  

        Provisions
of this Agreement may be amended and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or prospectively), only
with the written consent of the Company and the Required Holders. Any amendment or waiver
effected in accordance with this Section 10 shall be binding upon each Investor and the
Company. No such amendment shall be effective to the extent that it applies to less than
all of the holders of the Registrable Securities. No consideration shall be offered or
paid to any Person to amend or consent to a waiver or modification of any provision of
this Agreement unless the same consideration also is offered to all of the parties to this
Agreement. 

17 

    
    11.       Miscellaneous.  

    
    a.       A
Person is deemed to be a holder of Registrable Securities whenever such Person
          owns or is deemed to own of record such Registrable Securities. If the Company
          receives conflicting instructions, notices or elections from two or more
Persons           with respect to the same Registrable Securities, the Company shall act
upon the           basis of instructions, notice or election received from such record
owner of           such Registrable Securities.  

    
    b.       Any
notices, consents, waivers or other communications required or permitted to           be
given under the terms of this Agreement must be in writing and will be deemed
          to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
          receipt, when sent by facsimile (provided confirmation of transmission is
          mechanically or electronically generated and kept on file by the sending
party);           or (iii) one Business Day after deposit with a nationally recognized
overnight           delivery service, in each case properly addressed to the party to
receive the           same. The addresses and facsimile numbers for such communications
shall be:  

	 	
If
to the Company:

		
		Amish Naturals, Inc.

8224 County Road 245

Holmesville, Ohio 44633

Telephone:         (330) 674-0998

Facsimile:           (303) 279-2415

Attention:          David Skinner, Sr., President

	 	
With
a copy (for informational purposes only) to:

		
		Dennis Brovarone, Esq.

Attorney at Law

18 Mountain Laurel Drive

Littleton, Colorado 80127

Telephone:         (303) 466-4092

Facsimile:           (303) 466-4826

18 

	 	
If
to the Transfer Agent: 

		
		American Stock Transfer & Trust Company

6201 15th Avenue

Brooklyn, New York  11204

Telephone:         (718) 921-8275

Facsimile:           (718) 921-8331

Attention:           Paula Caroppoli, Vice President

	 	
If
to Legal Counsel:

		
		Schulte  Roth & Zabel LLP

919 Third Avenue

New York, New York  10022

Telephone:    (212) 756-2000

Facsimile:      (212) 593-5955

Attention:      Eleazer N. Klein, Esq.

If to a Buyer, to its address and
facsimile number set forth on the Schedule of Buyers attached hereto, with copies to such
Buyer’s representatives as set forth on the Schedule of Buyers, or to such other
address and/or facsimile number and/or to the attention of such other Person as the
recipient party has specified by written notice given to each other party five (5) days
prior to the effectiveness of such change. Written confirmation of receipt (A) given by
the recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date,
recipient facsimile number and an image of the first page of such transmission or (C)
provided by a courier or overnight courier service shall be rebuttable evidence of
personal service, receipt by facsimile or receipt from a nationally recognized overnight
delivery service in accordance with clause (i), (ii) or (iii) above, respectively. 

    
    c.       Failure
of any party to exercise any right or remedy under this Agreement or           otherwise,
or delay by a party in exercising such right or remedy, shall not           operate as a
waiver thereof.  

    
    d.       All
questions concerning the construction, validity, enforcement and           interpretation
of this Agreement 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. Each party hereby irrevocably submits to the exclusive
          jurisdiction of the state and federal courts sitting in The City of New York,
          Borough of Manhattan, for the adjudication of any dispute hereunder or in
          connection herewith or with any transaction contemplated hereby or discussed
          herein, and hereby irrevocably waives, and agrees not to assert in any suit,
          action or proceeding, any claim that it is not personally subject to the
          jurisdiction of any such court, that such suit, action or proceeding is brought
          in an inconvenient forum or that the venue of such suit, action or proceeding
is           improper. Each party hereby irrevocably waives personal service of process
and           consents to process being served in any such suit, action or proceeding by
          mailing a copy thereof to such party at the address for such notices to it
under           this Agreement and agrees that such service shall constitute good and
sufficient           service of process and notice thereof. Nothing contained herein
shall be deemed           to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
AND           AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
          HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR
          ANY TRANSACTION CONTEMPLATED HEREBY. 

19 

    
    e.       If
any provision of this Agreement is prohibited by law or otherwise determined           to
be invalid or unenforceable by a court of competent jurisdiction, the           provision
that would otherwise be prohibited, invalid or unenforceable shall be           deemed
amended to apply to the broadest extent that it would be valid and           enforceable,
and the invalidity or unenforceability of such provision shall not           affect the
validity of the remaining provisions of this Agreement so long as           this
Agreement as so modified continues to express, without material change, the
          original intentions of the parties as to the subject matter hereof and the
          prohibited nature, invalidity or unenforceability of the provision(s) in
          question does not substantially impair the respective expectations or
reciprocal           obligations of the parties or the practical realization of the
benefits that           would otherwise be conferred upon the parties. The parties will
endeavor in good           faith negotiations to replace the prohibited, invalid or
unenforceable           provision(s) with a valid provision(s), the effect of which comes
as close as           possible to that of the prohibited, invalid or unenforceable
provision(s).  

    
    f.       This
Agreement, the other Transaction Documents (as defined in the Securities
          Purchase Agreement) and the instruments referenced herein and therein
constitute           the entire agreement among the parties hereto with respect to the
subject matter           hereof and thereof. There are no restrictions, promises,
warranties or           undertakings, other than those set forth or referred to herein
and therein. This           Agreement, the other Transaction Documents and the
instruments referenced herein           and therein supersede all prior agreements and
understandings among the parties           hereto with respect to the subject matter
hereof and thereof.  

    
    g.       Subject
to the requirements of Section 9, this Agreement shall inure to the           benefit of
and be binding upon the permitted successors and assigns of each of           the parties
hereto.  

    
    h.       The
headings in this Agreement are for convenience of reference only and shall           not
limit or otherwise affect the meaning hereof.  

    
    i.       This
Agreement may be executed in identical counterparts, each of which shall be
          deemed an original but all of which shall constitute one and the same
agreement.           This Agreement, once executed by a party, may be delivered to the
other party           hereto by facsimile transmission of a copy of this Agreement
bearing the           signature of the party so delivering this Agreement.  

    
    j.       Each
party shall do and perform, or cause to be done and performed, all such           further
acts and things, and shall execute and deliver all such other           agreements,
certificates, instruments and documents as any other party may           reasonably
request in order to carry out the intent and accomplish the purposes           of this
Agreement and the consummation of the transactions contemplated hereby.  

20 

    
    k.       All
consents and other determinations required to be made by the Investors           pursuant
to this Agreement shall be made, unless otherwise specified in this           Agreement,
by the Required Holders.  

    
    l.       The
language used in this Agreement will be deemed to be the language chosen by           the
parties to express their mutual intent and no rules of strict construction           will
be applied against any party.  

    
    m.       This
Agreement is intended for the benefit of the parties hereto and their
          respective permitted successors and assigns, and is not for the benefit of, nor
          may any provision hereof be enforced by, any other Person.  

    
    n.       The
obligations of each Investor hereunder are several and not joint with the
          obligations of any other Investor, and no provision of this Agreement is
          intended to confer any obligations on any Investor vis-à-vis any other
          Investor. Nothing contained herein, and no action taken by any Investor
pursuant           hereto, shall be deemed to constitute the Investors as a partnership,
an           association, a joint venture or any other kind of entity, or create a
          presumption that the Investors are in any way acting in concert or as a group
          with respect to such obligations or the transactions contemplated herein.  

     *  *  *  * 

[Signature Page
Follows] 

21 

        IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first
written above. 

		
		COMPANY:

AMISH NATURALS, INC.

By:         
          
          
          
          

      Name: David Skinner, Sr.

      Title: President 

21 

        IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature
page to this Registration Rights Agreement to be duly executed as of the date first
written above. 

		
		BUYER:

CASTLERIGG MASTER INVESTMENTS LTD.

By:         
          
          
          
          

      Name: Timothy O'Brien

      Title: Chief Financial Officer

22 

        
        SCHEDULE OF BUYERS

        

        

        	
                    
                    Buyer

                	
                    
                    Buyer Address

                    and Facsimile
                    Number

                	
                    
                    Buyer's Representative's Address

                     and Facsimile
                    Number

                
	
                    
                    Castlerigg Master Investments
                    Ltd.

                	
                    
                    c/o Sandell Asset Management

                    40 West 57th St

                    26th Floor

                    New York, NY 10019

                    Attention: Cem Hacioglu/Matthew Pliskin

                    Fax: 212-603-5710

                    
                    Telephone: 212-603-5700

                	
                    
                    Schulte Roth & Zabel LLP

                    919 Third Avenue

                    New York, NY 10022

                    Attn: Eleazer Klein, Esq.

                     Facsimile: (212) 593-5955

                    Telephone: (212) 756-2000

                
	
                 	
                 	
                 

        

        

         

         

        

        
        

        

        

        

        
        EXHIBIT A

        

        
        FORM OF NOTICE OF EFFECTIVENESS

        OF REGISTRATION STATEMENT

        
        American Stock Transfer & Trust Company

        6201 15th
        Avenue

        
        Brooklyn, New York 11204

        Attention:     Paula Caroppoli, Vice President

        
                            

        
        Re:     Amish Naturals, Inc.

        
        Ladies and Gentlemen:

        
        [We are][I am] counsel to Amish Naturals, Inc., a Nevada corporation (the
        "Company"), and have represented the Company in connection with that certain
        Securities Purchase Agreement (the "Securities Purchase Agreement") entered
        into by and among the Company and the buyers named therein (collectively, the
        "Holders") pursuant to which the Company issued to the Holders shares (the
        "Common Shares") of the Company's common stock, par value $0.001 per share (the
        "Common Stock"), senior secured convertible notes (the "Notes") which shall
        be convertible into Common Stock and warrants exercisable for shares of Common Stock (the
        "Warrants"). Pursuant to the Securities Purchase Agreement, the Company also has
        entered into a Registration Rights Agreement with the Holders (the "Registration Rights
        Agreement") pursuant to which the Company agreed, among other things, to register the
        Registrable Securities (as defined in the Registration Rights Agreement), including the
        Common Shares, the shares of Common Stock issuable upon conversion of the Notes, the shares
        of Common Stock issuable as interest on the Notes and the shares of Common Stock issuable
        upon exercise of the Warrants, under the Securities Act of 1933, as amended (the "1933
        Act"). In connection with the Company's obligations under the Registration Rights
        Agreement, on ____________ ___, 200_, the Company filed a Registration Statement on Form
        S-___ (File No. 333-_____________) (the "Registration Statement") with the
        Securities and Exchange Commission (the "SEC") relating to the Registrable
        Securities which names each of the Holders as a selling stockholder thereunder.

        
        In connection with the foregoing, [we][I] advise you that a member of the SEC's staff has
        advised [us][me] by telephone that the SEC has entered an order declaring the Registration
        Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on
        [ENTER DATE OF EFFECTIVENESS] and [we][I] have no knowledge, after telephonic
        inquiry of a member of the SEC's staff, that any stop order suspending its effectiveness
        has been issued or that any proceedings for that purpose are pending before, or threatened
        by, the SEC and the Registrable Securities are available for resale under the 1933 Act
        pursuant to the Registration Statement.

        
        This letter shall serve as our standing instruction to you
        that the shares of Common Stock are freely transferable by the Holders pursuant to the
        Registration Statement. You need not require further letters from us to effect any future
        legend-free issuance or reissuance of shares of Common Stock to the Holders as contemplated
        by the Company's Irrevocable Transfer Agent Instructions dated February __,
        2008.

        
        Very truly yours,

        
        [ISSUER'S COUNSEL]

        
        By:_____________________

        
        CC:     [LIST NAMES OF HOLDERS]

         

        

        
        

        

        

        

        
        EXHIBIT B

        

        
        SELLING STOCKHOLDERS

        
        The shares of common stock being offered by the selling stockholders are those previously
        issued to the Selling Stockholders and those issuable to the selling stockholders upon
        conversion of the convertible notes, upon exercise of the warrants and in payment of
        interest on the convertible notes. For additional information regarding the issuance of
        those shares of common stock, convertible notes and warrants, see "Private Placement of
        Common Shares, Convertible Notes and Warrants" above. We are registering the shares of
        common stock in order to permit the selling stockholders to offer the shares for resale
        from time to time. Except for the ownership of the shares of common stock, convertible
        notes and the warrants issued pursuant to the Securities Purchase Agreement, the selling
        stockholders have not had any material relationship with us within the past three
        years.

        
        The table below lists the selling stockholders and other information regarding the
        beneficial ownership of the shares of common stock by each of the selling stockholders. The
        second column lists the number of shares of common stock beneficially owned by each selling
        stockholder, based on its ownership of the common shares, convertible notes and warrants,
        as of ________, 2008, assuming conversion of all convertible notes and exercise of the
        warrants held by the selling stockholders on that date, without regard to any limitations
        on conversions or exercise.

        
        The third column lists the shares of common stock being offered by this prospectus by the
        selling stockholders.

        
        In accordance with the terms of a registration rights agreement with the selling
        stockholders, this prospectus generally covers the resale of at least the sum of (i) the
        number of shares of common stock issued, (ii) 130% of the number of shares of common stock
        issuable upon conversion of the convertible notes as of the Trading Day immediately
        preceding the date the registration statement is initially filed with the SEC, (iii) as
        Interest Shares pursuant to the terms of the Notes as of the Trading Day immediately
        preceding the date the registration statement is initially filed with the SEC and (iv) 130%
        of the number of shares of common stock issuable upon exercise of the related warrants as
        of the Trading Day immediately preceding the date the registration statement is initially
        filed with the SEC. Because the conversion price of the convertible notes and the
        exercise price of the warrants may be adjusted, the number of shares that will actually be
        issued may be more or less than the number of shares being offered by this prospectus. The
        fourth column assumes the sale of all of the shares offered by the selling stockholders
        pursuant to this prospectus.

        
        Under the terms of the convertible notes and the warrants, a selling stockholder may not
        convert the convertible notes or exercise the warrants to the extent such conversion or
        exercise would cause such selling stockholder, together with its affiliates, to
        beneficially own a number of shares of common stock which would exceed 4.99% of our then
        outstanding shares of common stock following such conversion or exercise, excluding for
        purposes of such determination shares of common stock issuable upon conversion of the
        convertible notes which have not been converted and upon exercise of the warrants which
        have not been exercised. The number of shares in the second column does not reflect this
        limitation. The selling stockholders may sell all, some or none of their shares in this
        offering. See "Plan of Distribution."

        
        

        

        

        

         

        

        

        	
                    

                    

                    
                    Name of Selling
                    Stockholder

                	
                    
                    Number of Shares of Common Stock Owned Prior
                    to Offering

                	
                    
                    Maximum Number of Shares of Common Stock to
                    be Sold Pursuant to this Prospectus

                	
                    
                    Number of Shares of Common Stock Owned After
                    Offering

                
	
                    
                    Castlerigg Master Investments Ltd. (1)

                	
                 	
                 	
                    
                    0

                
	
                 	
                 	
                 	
                 

        

        

        

        
        (1)     
        Sandell Asset Management Corp.
        (“SAMC”) is
        the investment manager of Castlerigg Master Investments Ltd.
        (“Castlerigg”) . Thomas Sandell is the
        controlling person of SAMC and may be deemed to share beneficial ownership of the shares
        beneficially owned by Castlerigg. Castlerigg International Ltd. (“Castlerigg
        International”) is the controlling shareholder of Castlerigg International Holdings
        Limited (“Holdings”). Holdings is the controlling shareholder of Castlerigg.
        Each of Holdings and Castlerigg International may be deemed to share beneficial ownership
        of the shares beneficially owned by Castlerigg Master Investments Ltd. The business address
        of each of these entities is as follows: c/o Sandell
        Asset Management Corp. 40 W.
        57th
        Street,
        26th
        Floor, New York, New York 10019. SAMC, Mr. Sandell, Holdings
        and Castlerigg International each disclaims beneficial ownership of the securities with
        respect to which indirect beneficial ownership is described.

        
        

        

        

        

         

        

        
        PLAN OF DISTRIBUTION

        
        We are registering the shares of common stock previously issued and those issuable upon
        conversion of the convertible notes, upon exercise of the warrants and as interest on the
        convertible notes to permit the resale of these shares of common stock by the holders of
        the common shares, convertible notes and warrants from time to time after the date of this
        prospectus. We will not receive any of the proceeds from the sale by the selling
        stockholders of the shares of common stock. We will bear all fees and expenses incident to
        our obligation to register the shares of common stock.

        
        The selling stockholders may sell all or a portion of the shares of common stock
        beneficially owned by them and offered hereby from time to time directly or through one or
        more underwriters, broker-dealers or agents. If the shares of common stock are sold through
        underwriters or broker-dealers, the selling stockholders will be responsible for
        underwriting discounts or commissions or agent's commissions. The shares of common stock
        may be sold in one or more transactions at fixed prices, at prevailing market prices at the
        time of the sale, at varying prices determined at the time of sale, or at negotiated
        prices. These sales may be effected in transactions, which may involve crosses or block
        transactions,

        

        	
                	
                    
                    ·     

                	
                    
                    on any national securities exchange or quotation service on which the
                    securities may be listed or quoted at the time of sale;

                

        

        	
                	
                    
                    ·     

                	
                    
                    in the over-the-counter market;

                

        

        	
                	
                    
                    ·     

                	
                    
                    in transactions otherwise than on these exchanges or systems or in the
                    over-the-counter market;

                

        

        	
                	
                    
                    ·     

                	
                    
                    through the writing of options, whether such options are listed on an options
                    exchange or otherwise;

                

        

        	
                	
                    
                    ·     

                	
                    
                    ordinary brokerage transactions and transactions in which the broker-dealer
                    solicits purchasers;

                

        

        	
                	
                    
                    ·     

                	
                    
                    block trades in which the broker-dealer will attempt to sell the shares as
                    agent but may position and resell a portion of the block as principal to
                    facilitate the transaction;

                

        

        	
                	
                    
                    ·     

                	
                    
                    purchases by a broker-dealer as principal and resale by the broker-dealer for
                    its account;

                

        

        	
                	
                    
                    ·     

                	
                    
                    an exchange distribution in accordance with the rules of the applicable
                    exchange;

                

        

        	
                	
                    
                    ·     

                	
                    
                    privately negotiated transactions;

                

        

        	
                	
                    
                    ·     

                	
                    
                    short sales;

                

        

        	
                	
                    
                    ·     

                	
                    
                    sales pursuant to Rule 144;

                

        

        	
                	
                    
                    ·     

                	
                    
                    broker-dealers may agree with the selling securityholders to sell a specified
                    number of such shares at a stipulated price per share;

                

        

        	
                	
                    
                    ·     

                	
                    
                    a combination of any such methods of sale; and

                

        

        	
                	
                    
                    ·     

                	
                    
                    any other method permitted pursuant to applicable law.

                

        

        

        

        
        If the selling stockholders effect such transactions by selling shares of common stock to
        or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or
        agents may receive commissions in the form of discounts, concessions or commissions from
        the selling stockholders or commissions from purchasers of the shares of common stock for
        whom they may act as agent or to whom they may sell as principal (which discounts,
        concessions or commissions as to particular underwriters, broker-dealers or agents may be
        in excess of those customary in the types of transactions involved). In connection with
        sales of the shares of common stock or otherwise, the selling stockholders may enter into
        hedging transactions with broker-dealers, which may in turn engage in short sales of the
        shares of common stock in the course of hedging in positions they assume. The selling
        stockholders may also sell shares of common stock short and deliver shares of common stock
        covered by this prospectus to close out short positions and to return borrowed shares in
        connection with such short sales. The selling stockholders may also loan or pledge shares
        of common stock to broker-dealers that in turn may sell such shares.

        
        The selling stockholders may pledge or grant a security interest in some or all of the
        convertible notes, warrants or shares of common stock owned by them and, if they default in
        the performance of their secured obligations, the pledgees or secured parties may offer and
        sell the shares of common stock from time to time pursuant to this prospectus or any
        amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the
        Securities Act of 1933, as amended, amending, if necessary, the list of selling
        stockholders to include the pledgee, transferee or other successors in interest as selling
        stockholders under this prospectus. The selling stockholders also may transfer and donate
        the shares of common stock in other circumstances in which case the transferees, donees,
        pledgees or other successors in interest will be the selling beneficial owners for purposes
        of this prospectus.

        
        The selling stockholders and any broker-dealer participating in the distribution of the
        shares of common stock may be deemed to be "underwriters" within the meaning of the
        Securities Act, and any commission paid, or any discounts or concessions allowed to, any
        such broker-dealer may be deemed to be underwriting commissions or discounts under the
        Securities Act. At the time a particular offering of the shares of common stock is made, a
        prospectus supplement, if required, will be distributed which will set forth the aggregate
        amount of shares of common stock being offered and the terms of the offering, including the
        name or names of any broker-dealers or agents, any discounts, commissions and other terms
        constituting compensation from the selling stockholders and any discounts, commissions or
        concessions allowed or reallowed or paid to broker-dealers.

        
        Under the securities laws of some states, the shares of common stock may be sold in such
        states only through registered or licensed brokers or dealers. In addition, in some states
        the shares of common stock may not be sold unless such shares have been registered or
        qualified for sale in such state or an exemption from registration or qualification is
        available and is complied with.

        
        There can be no assurance that any selling stockholder will sell any or all of the shares
        of common stock registered pursuant to the registration statement, of which this prospectus
        forms a part.

        
        The selling stockholders and any other person participating in such distribution will be
        subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and
        the rules and regulations thereunder, including, without limitation, Regulation M of the
        Exchange Act, which may limit the timing of purchases and sales of any of the shares of
        common stock by the selling stockholders and any other participating person. Regulation M
        may also restrict the ability of any person engaged in the distribution of the shares of
        common stock to engage in market-making activities with respect to the shares of common
        stock. All of the foregoing may affect the marketability of the shares of common stock and
        the ability of any person or entity to engage in market-making activities with respect to
        the shares of common stock.

        
        We will pay all expenses of the registration of the shares of common stock pursuant to the
        registration rights agreement, estimated to be $[     ] in total,
        including, without limitation, Securities and Exchange Commission filing fees and expenses
        of compliance with state securities or "blue sky" laws; provided, however, that a selling
        stockholder will pay all underwriting discounts and selling commissions, if any. We will
        indemnify the selling stockholders against liabilities, including some liabilities under
        the Securities Act, in accordance with the registration rights agreements, or the selling
        stockholders will be entitled to contribution. We may be indemnified by the selling
        stockholders against civil liabilities, including liabilities under the Securities Act,
        that may arise from any written information furnished to us by the selling stockholder
        specifically for use in this prospectus, in accordance with the related registration rights
        agreement, or we may be entitled to contribution.

        
        Once sold under the registration statement, of which this prospectus forms a part, the
        shares of common stock will be freely tradable in the hands of persons other than our
        affiliates.Exhibit 10.14 

[FORM OF SENIOR
SECURED CONVERTIBLE NOTE] 

NEITHER THE ISSUANCE AND SALE OF
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE
SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “1933 ACT”), 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 1933 ACT, OR (B) AN OPINION
OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT (II) UNLESS SOLD OR TRANSFERRED TO A “QUALIFIED INSTITUTIONAL BUYER” WITHIN
THE MEANING OF RULE 144A UNDER THE 1933 ACT OR TO AN “ACCREDITED INVESTOR” AS
THAT TERM IS DEFINED IN RULE 501(A) OF REGULATION D OR (III) 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. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW
THE TERMS OF THIS NOTE, INCLUDING SECTIONS 3(c)(iii) AND 19(a) HEREOF. THE HOLDER OF THIS
NOTE AGREES TO THE TERMS AND PROVISIONS SET FORTH IN SECTION 4(o) OF THE SECURITIES
PURCHASE AGREEMENT REGARDING THE COLLATERAL AGENT (AS DEFINED IN THE SECURITIES PURCHASE
AGREEMENT). THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY, THE SECURITIES
ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF
PURSUANT TO SECTION 3(c)(iii) OF THIS NOTE. 

AMISH NATURALS INC. 

SENIOR SECURED
CONVERTIBLE NOTE 

		
	Issuance Date:  February [__], 2008
	 Original Principal Amount: U.S. $3,125,000

        FOR
VALUE RECEIVED, Amish Naturals Inc., a Nevada corporation (the
“Company”), hereby promises to pay to the order of CASTLERIGG MASTER
INVESTMENTS LTD. or registered assigns (“Holder”) the amount set out
above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant
to redemption, conversion or otherwise, the “Principal”) when due,
whether upon the Maturity Date (as defined below), acceleration, redemption or otherwise
(in each case in accordance with the terms hereof) and to pay interest
(“Interest”) on any outstanding Principal at the applicable Interest
Rate, from the date set out above as the Issuance Date (the “Issuance
Date”) until the same becomes due and payable, whether upon an Interest Date
(as defined below) or the Maturity Date, acceleration, conversion, redemption or otherwise
(in each case in accordance with the terms hereof). This Senior Secured Convertible Note
(including all Senior Secured Convertible Notes issued in exchange, transfer or
replacement hereof, this “Note”) is one of an issue of Senior Secured
Convertible Notes issued pursuant to the Securities Purchase Agreement (as defined below)
on the Closing Date (collectively, the “Notes” and such other Senior
Secured Convertible Notes, the “Other Notes”). Certain capitalized
terms used herein are defined in Section 29. 

    (1)           PAYMENTS
OF PRINCIPAL. On the Maturity Date, the Company shall pay to the           Holder an
amount in cash representing 135% of all outstanding Principal, accrued           and
unpaid Interest and accrued and unpaid Late Charges, if any, on such           Principal
and Interest. The “MaturityDate” shall be           February [__],
2010 (the “Stated Maturity Date”), as may be           extended at the
option of the Holder (i) in the event that, and for so long as,           an Event of
Default (as defined in Section 4(a)) shall have occurred and be           continuing on
the Maturity Date (as may be extended pursuant to this Section 1)           or any event
that shall have occurred and be continuing that with the passage of           time and
the failure to cure would result in an Event of Default and (ii)           through the
date that is ten (10) Business Days after the consummation of a           Change of
Control in the event that a Change of Control is publicly announced or           a Change
of Control Notice (as defined in Section 5(b)) is delivered prior to           the
Maturity Date. Other than as specifically permitted by this Note, the           Company
may not prepay any portion of the outstanding Principal, accrued and           unpaid
Interest or accrued and unpaid Late Charges on Principal and Interest, if           any.
Notwithstanding any provision of this Section 1 to the contrary, the Holder
          may, at its option and in its sole discretion, deliver a written notice to the
          Company at least two (2) days prior to the Stated Maturity Date electing to
have           the payment of all or any portion of the Principal and Interest, if any,
payable           on the Stated Maturity Date deferred (such amount deferred, the
          “Deferral Amount”) up to a date that is two (2) years after
the           Stated Maturity Date, which date shall thereafter be the “Maturity
          Date” for all purposes hereunder. Any notice delivered by the Holder
          pursuant to this Section 1 shall set forth (i) the Deferral Amount and (ii) the
          date that such Deferral Amount shall now be payable.  

    (2)           INTEREST;
INTEREST RATE. (a) If the Maturity Date of this Note is           extended at the
Holder’s option in accordance with Section 1, Interest on           this Note shall
commence accruing on the Stated Maturity Date and shall be           computed on the
basis of a 360-day year comprised of twelve (12) thirty (30) day           months and
shall be payable in arrears for each Calendar Quarter on the first           day of the
succeeding Calendar Quarter during the period beginning on the Stated           Maturity
Date and ending on, and including, the Maturity Date (each, an           “InterestDate”)
with the first Interest Date being the           earlier of (a) April 1, 2010 and (b) the
Maturity Date. Interest shall be           payable on each Interest Date, to the record
holder of this Note on the           applicable Interest Date, in shares of Common Stock (“Interest
          Shares”) so long as there has been no Equity Conditions Failure;
          provided however, that the Company may, at its option following notice to the
          Holder, pay Interest on any Interest Date in cash (“Cash
          Interest”) or in a combination of Cash Interest and Interest Shares.
          The Company shall deliver a written notice (each, an “Interest Election
          Notice”) to each holder of the Notes on or prior to the Interest
Notice           Due Date (the date such notice is delivered to all of the holders, the
          “Interest Notice Date”) which notice (1) either (A) confirms
          that Interest to be paid on such Interest Date shall be paid entirely in
          Interest Shares or (B) elects to pay Interest as Cash Interest or a combination
          of Cash Interest and Interest Shares and specifies the amount of Interest that
          shall be paid as Cash Interest and the amount of Interest, if any, that shall
be           paid in Interest Shares and (2) certifies that there has been no Equity
          Conditions Failure; provided, however, that the Company shall not be entitled
to           pay any portion of Interest on an Interest Date in Interest Shares in excess
of           the Holder Pro Rata Amount of the applicable Volume Limitation. If any
portion           of Interest for a particular Interest Date shall be paid in Interest
Shares,           then the Company shall pay to the Holder, in accordance with Section
2(b), a           number of shares of Common Stock equal to (x) the amount of Interest
payable on           the applicable Interest Date in Interest Shares divided by (y) the
applicable           Interest Conversion Price. Interest to be paid on an Interest Date
in Interest           Shares shall be paid in a number of fully paid and nonassessable
shares of           Common Stock (rounded to the nearest whole share). If the Equity
Conditions are           not satisfied as of the Interest Notice Date, then unless the
Company has           elected to pay such Interest in cash, the Interest Notice shall
indicate that           unless the Holder waives the Equity Conditions, the Interest
shall be paid in           cash. If the Equity Conditions were satisfied as of the
Interest Notice Date but           the Equity Conditions are no longer satisfied at any
time prior to the Interest           Date, the Company shall provide the Holder a
subsequent notice to that effect           indicating that unless the Holder waives the
Equity Conditions, the Interest           shall be paid in cash.  

2 

    
    (b)                     When
any Interest Shares are to be paid on an Interest Date, the Company shall           (i)
(A) provided that the Company’s transfer agent (the “Transfer           Agent”)
is participating in the Depository Trust Company           (“DTC”) Fast
Automated Securities Transfer Program and such           action is not prohibited by
applicable law or regulation or any applicable           policy of DTC, credit such
aggregate number of Interest Shares to which the           Holder shall be entitled to
the Holder’s or its designee’s balance           account with DTC through its
Deposit Withdrawal Agent Commission system, or (B)           if the foregoing shall not
apply, issue and deliver on the applicable Interest           Date, to the address set
forth in the register maintained by the Company for           such purpose pursuant to
the Securities Purchase Agreement or to such address as           specified by the Holder
in writing to the Company at least two (2) Business Days           prior to the
applicable Interest Date, a certificate, registered in the name of           the Holder
or its designee, for the number of Interest Shares to which the           Holder shall be
entitled and (ii) with respect to each Interest Date, pay to the           Holder, in
cash by wire transfer of immediately available funds, the amount of           any Cash
Interest. Notwithstanding the foregoing, the Company shall not be           entitled to
pay Interest in Interest Shares and shall be required to pay such           Interest in
cash as Cash Interest on the applicable Interest Date if, unless           waived in
writing by the Holder, there has been an Equity Conditions Failure. If           an Event
of Default or Equity Conditions Failure occurs during the Interest           Measuring
Period, then on the Interest Date, at the Holder’s option, the           Holder may
require the Company to pay all or any specified portion of the           Interest due on
the applicable Interest Date as Cash Interest.  

    
    (c)                     Prior
to the payment of Interest on an Interest Date, Interest on this Note           shall
accrue at the Interest Rate and be payable by way of inclusion of the           Interest
in the Conversion Amount in accordance with Section 3(b)(i). From and           after the
occurrence and during the continuance of an Event of Default, the           Interest Rate
shall be increased to fifteen percent (15.0%) per annum; provided,           however,
that in the event an Event of Default occurs at any time prior to the           Stated
Maturity, the Company shall pay Interest to the Holder, in addition to           any
previously paid Interest, at an Interest Rate equal to five percent (5.0%).           In
the event that such Event of Default is subsequently cured, the adjustment
          referred to in the preceding sentence shall cease to be effective as of the
date           of such cure; provided that the Interest as calculated and unpaid at such
          increased rate during the continuance of such Event of Default shall continue
to           apply to the extent relating to the days after the occurrence of such Event
of           Default through and including the date of cure of such Event of Default. The
          Company shall pay any and all taxes that may be payable with respect to the
          issuance and delivery of Interest Shares.  

3 

    (3)           CONVERSION
OF NOTES. This Note shall be convertible into shares of the           Company’s
common stock, par value $0.001 per share (the “Common           Stock”),
on the terms and conditions set forth in this Section 3.  

    
    (a)           Conversion
Right. Subject to the provisions of Section 3(d), at any time           or times on
or after the Issuance Date, the Holder shall be entitled to convert           any portion
of the outstanding and unpaid Conversion Amount (as defined below)           into fully
paid and nonassessable shares of Common Stock in accordance with           Section 3(c),
at the Conversion Rate (as defined below). The Company shall not           issue any
fraction of a share of Common Stock upon any conversion. If the           issuance would
result in the issuance of a fraction of a share of Common Stock,           the Company
shall round such fraction of a share of Common Stock up to the           nearest whole
share. The Company shall pay any and all transfer, stamp and           similar taxes that
may be payable with respect to the issuance and delivery of           Common Stock upon
conversion of any Conversion Amount.  

    
    (b)           Conversion
Rate. The number of shares of Common Stock issuable upon           conversion of any
Conversion Amount pursuant to Section 3(a) shall be determined           by dividing (x)
such Conversion Amount by (y) the Conversion Price (the           “Conversion Rate”).  

    
        (i)                     “Conversion
Amount” means the sum of (A) the portion of the           Principal to be
converted, redeemed or otherwise with respect to which this           determination is
being made, (B) accrued and unpaid Interest with respect to           such Principal, and
(C) accrued and unpaid Late Charges with respect to such           Principal and
Interest.  

    
    
    (ii)                     “Conversion
Price” means, as of any Conversion Date (as defined           below) or other
date of determination, $ 1.75, subject to adjustment as provided           herein.  

    
    (c)           Mechanics
of Conversion.  

    
    
    (i)           Optional
Conversion. To convert any Conversion Amount into shares of           Common Stock on
any date (a “Conversion Date”), the Holder           shall (A) transmit
by facsimile (or otherwise deliver), for receipt on or prior           to 11:59 p.m., New
York Time, on such date, a copy of an executed notice of           conversion in the form
attached hereto as Exhibit I (the           “Conversion Notice”)
to the Company and (B) if required by           Section 3(c)(iii), surrender this Note to
a common carrier for delivery to the           Company as soon as practicable on or
following such date (or an indemnification           undertaking with respect to this
Note in the case of its loss, theft or           destruction). On or before the first (1st)
Business Day following the           date of receipt of a Conversion Notice, the Company
shall transmit by facsimile           a confirmation (the “Conversion Confirmation”)
of receipt of           such Conversion Notice to the Holder and the Transfer Agent. On
or before the           (2nd) second Business Day following the date of
receipt of a           Conversion Notice (the “Share DeliveryDate”),
the           Company shall (X) provided that the Transfer Agent is participating in the
DTC           Fast Automated Securities Transfer Program, credit such aggregate number of
          shares of Common Stock (including any Interest Shares) to which the Holder
shall           be entitled to the Holder’s or its designee’s balance account
with DTC           through its Deposit Withdrawal Agent Commission system or (Y) if the
Transfer           Agent is not participating in the DTC Fast Automated Securities
Transfer           Program, issue and deliver to the address as specified in the
Conversion Notice,           a certificate, registered in the name of the Holder or its
designee, for the           number of shares of Common Stock (including any Interest
Shares) to which the           Holder shall be entitled. If this Note is physically
surrendered for conversion           as required by Section 3(c)(iii) and the outstanding
Principal of this Note is           greater than the Principal portion of the Conversion
Amount being converted,           then the Company shall as soon as practicable and in no
event later than three           (3) Business Days after receipt of this Note and at its
own expense, issue and           deliver to the holder a new Note (in accordance with
Section 19(d)) representing           the outstanding Principal not converted. The Person
or Persons entitled to           receive the shares of Common Stock issuable upon a
conversion of this Note shall           be treated for all purposes as the record holder
or holders of such shares of           Common Stock on the Conversion Date.  

4 

    
    
    (ii)           Company’s
Failure to Timely Convert. If the Company shall fail to           issue a certificate
to the Holder or credit the Holder’s balance account           with DTC, as
applicable, for the number of shares of Common Stock to which the           Holder is
entitled upon conversion of any Conversion Amount on or prior to the           date which
is three (3) Trading Days after the Conversion Date (a           “Conversion
Failure”), then (A) the Company shall pay damages           to the Holder for
each Trading Day of such Conversion Failure in an amount equal           to one and
one-half percent (1.5%) of the product of (I) the sum of the number           of shares
of Common Stock not issued to the Holder on or prior to the Share           Delivery Date
and to which the Holder is entitled, and (II) the Closing Sale           Price of the
Common Stock on the Share Delivery Date and (B) the Holder, upon           written notice
to the Company, may void its Conversion Notice with respect to,           and retain or
have returned, as the case may be, any portion of this Note that           has not been
converted pursuant to such Conversion Notice; provided that           the voiding
of a Conversion Notice shall not affect the Company’s           obligations to make
any payments which have accrued prior to the date of such           notice pursuant to
this Section 3(c)(ii) or otherwise. In addition to the           foregoing, if within
three (3) Trading Days after the Company’s receipt of           the facsimile copy
of a Conversion Notice the Company shall fail to issue and           deliver a
certificate to the Holder or credit the Holder’s balance account           with DTC
for the number of shares of Common Stock to which the Holder is           entitled upon
such holder’s conversion of any Conversion Amount, and if on           or after such
Trading Day the Holder purchases (in an open market transaction or           otherwise)
Common Stock to deliver in satisfaction of a sale by the Holder of           Common Stock
issuable upon such conversion that the Holder anticipated receiving           from the
Company (a “Buy-In”) or on any date of the           Company’s
obligation to deliver shares of Common Stock as contemplated           pursuant to clause
(B) below, then the Company shall, within three (3) Business           Days after the
Holder’s request and in the Holder’s discretion, either           (A) pay cash
to the Holder in an amount equal to the Holder’s total           purchase price
(including brokerage commissions and other out of pocket           expenses, if any) for
the shares of Common Stock so purchased (the “Buy-In Price”), at which
point the Company’s obligation           to issue and deliver such certificate or to
credit the Holder’s balance           account with DTC for the number of shares of
Common Stock to which the Holder is           entitled upon such Holder’s conversion
of any Conversion Amount shall           terminate, or (B) promptly honor its obligation
to deliver to the Holder a           certificate or certificates representing such Common
Stock and pay cash to the           Holder in an amount equal to the excess (if any) of
the Buy-In Price over the           product of (1) such number of shares of Common Stock,
times (2) the Closing Bid           Price on the Conversion Date.  

5 

    
    
    (iii)           Registration;
Book-Entry. The Company shall maintain a register (the           “Register”)
for the recordation of the names and addresses of           the holders of each Note and
the principal amount of the Notes held by such           holders (the “Registered
Notes”). The entries in the Register           shall be conclusive and binding
for all purposes absent manifest error. The           Company and the holders of the
Notes shall treat each Person whose name is           recorded in the Register as the
owner of a Note for all purposes, including,           without limitation, the right to
receive payments of Principal and Interest           hereunder, notwithstanding notice to
the contrary. A Registered Note may be           assigned or sold in whole or in part
only by registration of such assignment or           sale on the Register. Upon its
receipt of a request to assign or sell all or           part of any Registered Note by a
Holder, the Company shall record the           information contained therein in the
Register and issue one or more new           Registered Notes in the same aggregate
principal amount as the principal amount           of the surrendered Registered Note to
the designated assignee or transferee           pursuant to Section 19. Notwithstanding
anything to the contrary set forth           herein, upon conversion of any portion of
this Note in accordance with the terms           hereof, the Holder shall not be required
to physically surrender this Note to           the Company unless (A) the full Conversion
Amount represented by this Note is           being converted or (B) the Holder has
provided the Company with prior written           notice (which notice may be included in
a Conversion Notice) requesting           reissuance of this Note upon physical surrender
of this Note. The Holder and the           Company shall maintain records showing the
Principal, Interest and Late Charges,           if any, converted and the dates of such
conversions or shall use such other           method, reasonably satisfactory to the
Holder and the Company, so as not to           require physical surrender of this Note
upon conversion.  

    
    
    (iv)           Pro
Rata Conversion; Disputes. In the event that the Company receives a
          Conversion Notice from more than one holder of Notes for the same Conversion
          Date and the Company can convert some, but not all, of such portions of the
          Notes submitted for conversion, the Company, subject to Section 3(d), shall
          convert from each holder of Notes electing to have Notes converted on such date
          a pro rata amount of such holder’s portion of its Notes submitted for
          conversion based on the principal amount of Notes submitted for conversion on
          such date by such holder relative to the aggregate principal amount of all
Notes           submitted for conversion on such date. In the event of a dispute as to
the           number of shares of Common Stock issuable to the Holder in connection with
a           conversion of this Note, the Company shall issue to the Holder the number of
          shares of Common Stock not in dispute and resolve such dispute in accordance
          with Section 25.  

    
    (d)           Limitations
on Conversions.  

6 

    
    
    (i)           Beneficial
Ownership. The Company shall not effect any conversion of this           Note, and
the Holder of this Note shall not have the right to convert any           portion of this
Note pursuant to Section 3(a), to the extent that after giving           effect to such
conversion, the Holder (together with the Holder’s           affiliates) would
beneficially own in excess of 4.99% (the “Maximum           Percentage”)
of the number of shares of Common Stock outstanding           immediately after giving
effect to such conversion. For purposes of the           foregoing sentence, the number
of shares of Common Stock beneficially owned by           the Holder and its affiliates
shall include the number of shares of Common Stock           issuable upon conversion of
this Note with respect to which the determination of           such sentence is being
made, but shall exclude the number of shares of Common           Stock which would be
issuable upon (A) conversion of the remaining, nonconverted           portion of this
Note beneficially owned by the Holder or any of its affiliates           and (B) exercise
or conversion of the unexercised or nonconverted portion of any           other
securities of the Company (including, without limitation, any Other Notes           or
warrants) subject to a limitation on conversion or exercise analogous to the
          limitation contained herein beneficially owned by the Holder or any of its
          affiliates. Except as set forth in the preceding sentence, for purposes of this
          Section 3(d)(i), beneficial ownership shall be calculated in accordance with
          Section 13(d) of the Securities Exchange Act of 1934, as amended (the
          “1934 Act”). For purposes of this Section 3(d)(i), in
          determining the number of outstanding shares of Common Stock, the Holder may
          rely on the number of outstanding shares of Common Stock as reflected in (x)
the           Company’s most recent Form 10-K, Form 10-Q, Form 8-K or other public
filing           with the Securities Exchange Commission, as the case may be (y) a more
recent           public announcement by the Company or (z) any other notice by the
Company or the           Transfer Agent setting forth the number of shares of Common
Stock outstanding.           For any reason at any time, upon the written or oral request
of the Holder, the           Company shall within one (1) Business Day confirm orally and
in writing to the           Holder the number of shares of Common Stock then outstanding.
In any case, the           number of outstanding shares of Common Stock shall be
determined after giving           effect to the conversion or exercise of securities of
the Company, including           this Note, by the Holder or its affiliates since the
date as of which such           number of outstanding shares of Common Stock was
reported. By written notice to           the Company, the Holder may increase or decrease
the Maximum Percentage to any           other percentage not in excess of 9.99% specified
in such notice; provided that           (i) any such increase will not be effective until
the sixty-first           (61st) day after such notice is delivered to the
Company, and (ii)           any such increase or decrease will apply only to the Holder
and not to any other           holder of Notes. The provisions of this paragraph shall be
construed and           implemented in a manner otherwise than in strict conformity with
the terms of           this Section 3(d)(i) to correct this paragraph (or any portion
hereof) which may           be defective or inconsistent with the intended beneficial
ownership limitation           herein contained or to make changes or supplements
necessary or desirable to           properly give effect to such limitation.  

    
    
    (ii)           Principal
Market Regulation. The Company shall not be obligated to issue           any shares
of Common Stock upon conversion of this Note if the issuance of such           shares of
Common Stock would exceed the aggregate number of shares of Common           Stock which
the Company may issue upon conversion or exercise, as applicable, of           the Notes
and Warrants without breaching the Company’s obligations under           the rules
or regulations of any applicable Eligible Market (the           “Exchange Cap”),
except that such limitation shall not apply in           the event that the Company (A)
obtains the approval of its stockholders as           required by the applicable rules of
such Eligible Market for issuances of Common           Stock in excess of such amount or
(B) obtains a written opinion from outside           counsel to the Company that such
approval is not required, which opinion shall           be reasonably satisfactory to the
Required Holders. Until such approval or           written opinion is obtained, no
purchaser of the Notes pursuant to the           Securities Purchase Agreement (each, a
“Purchaser” and           collectively the “Purchasers”)
shall be issued in the           aggregate, upon conversion or exercise or otherwise, as
applicable, of Notes or           Warrants, shares of Common Stock in an amount greater
than the product of the           Exchange Cap multiplied by a fraction, the numerator of
which is the principal           amount of Notes issued to any Purchaser pursuant to the
Securities Purchase           Agreement on the Closing Date and the denominator of which
is the aggregate           principal amount of all Notes issued to all of the Purchasers
pursuant to the           Securities Purchase Agreement on the Closing Date (with respect
to each           Purchaser, the “Exchange Cap Allocation”). In the
event that           any Purchaser shall sell or otherwise transfer any of such Purchaser’s
          Notes, the transferee shall be allocated a pro rata portion of such
          Purchaser’s Exchange Cap Allocation, and the restrictions of the prior
          sentence shall apply to such transferee with respect to the portion of the
          Exchange Cap Allocation allocated to such transferee. In the event that any
          holder of Notes shall convert all of such holder’s Notes into a number of
          shares of Common Stock which, in the aggregate, is less than such holder’s
          Exchange Cap Allocation, then the difference between such holder’s
Exchange           Cap Allocation and the number of shares of Common Stock actually
issued to such           holder shall be allocated to the respective Exchange Cap
Allocations of the           remaining holders of Notes on a pro rata basis in proportion
to the aggregate           principal amount of the Notes then held by each such holder.  

7 

    (4)           RIGHTS
UPON EVENT OF DEFAULT.  

    
    (a)           Event
of Default. Each of the following events shall constitute an           “Event
of Default”:  

    
    
    (i)                     the
failure of the applicable Registration Statement required to be filed           pursuant
to the Registration Rights Agreement to be declared effective by the           SEC on or
prior to the date that is sixty (60) days after the applicable           Effectiveness
Deadline (as defined in the Registration Rights Agreement), or,           while the
applicable Registration Statement is required to be maintained           effective
pursuant to the terms of the Registration Rights Agreement, the           effectiveness
of the applicable Registration Statement lapses for any reason           (including,
without limitation, the issuance of a stop order) or is unavailable           to any
holder of the Notes for sale of all of such holder’s Registrable
          Securities (as defined in the Registration Rights Agreement) in accordance with
          the terms of the Registration Rights Agreement, and such lapse or
unavailability           continues for a period of five (5) consecutive days or for more
than an           aggregate of twenty (20) days in any 365-day period (other than days
during an           Allowable Grace Period (as defined in the Registration Rights
Agreement));  

    
    
    (ii)                     the
suspension from trading or failure of the Common Stock to be listed on an
          Eligible Market for a period of five (5) consecutive Trading Days or for more
          than an aggregate of ten (10) Trading Days in any 365-day period;  

    
    
    (iii)                     the
Company’s (A) failure to cure a Conversion Failure by delivery of the
          required number of shares of Common Stock within ten (10) Business Days after
          the applicable Conversion Date or (B) notice, written or oral, to any holder of
          the Notes, including by way of public announcement or through any of its
agents,           at any time, of its intention not to comply with a request for
conversion of any           Notes into shares of Common Stock that is tendered in
accordance with the           provisions of the Notes;  

    
    
    (iv)                     at
any time following the tenth (10th) consecutive Business Day that
          the Holder’s Authorized Share Allocation is less than the number of shares
          of Common Stock that the Holder would be entitled to receive upon a conversion
          of the full Conversion Amount of this Note (without regard to any limitations
on           conversion set forth in Section 3(d) or otherwise);  

    
    
    (v)                            the
Company’s failure to pay to the Holder any amount of Principal,           Interest,
Late Charges or other amounts when and as due under this Note           (including,
without limitation, the Company’s failure to pay any redemption           payments
or amounts hereunder) or any other Transaction Document (as defined in           the
Securities Purchase Agreement) or any other agreement, document, certificate           or
other instrument delivered in connection with the transactions contemplated
          hereby and thereby to which the Holder is a party, except, in the case of a
          failure to pay Interest and Late Charges when and as due, in which case only if
          such failure continues for a period of at least five (5) Business Days;  

8 

    
    
    (vi)                     any
default under, redemption of or acceleration prior to maturity of any
          Indebtedness of the Company or any of its Subsidiaries (as defined in Section
          3(a) of the Securities Purchase Agreement) other than with respect to any Other
          Notes;  

    
    
    (vii)                     the
Company or any of its Subsidiaries, pursuant to or within the meaning of           Title
11, U.S. Code, or any similar Federal, foreign or state law for the relief           of
debtors (collectively, “Bankruptcy Law”), (A) commences a
          voluntary case, (B) consents to the entry of an order for relief against it in
          an involuntary case, (C) consents to the appointment of a receiver, trustee,
          assignee, liquidator or similar official (a “Custodian”), (D)
          makes a general assignment for the benefit of its creditors or (E) admits in
          writing that it is generally unable to pay its debts as they become due;  

    
    
    (viii)                     a
court of competent jurisdiction enters an order or decree under any Bankruptcy
          Law that (A) is for relief against the Company or any of its Subsidiaries in an
          involuntary case, (B) appoints a Custodian of the Company or any of its
          Subsidiaries or (C) orders the liquidation of the Company or any of its
          Subsidiaries;  

    
    
    (ix)                     a
final judgment or judgments for the payment of money aggregating in excess of
          (A) $100,000 are rendered against the Company or any of its Subsidiaries or (B)
          $50,000 are rendered against any of the officers or directors of the Company or
          any of its Subsidiaries, and which judgments are not, within sixty (60) days
          after the entry thereof, bonded, discharged or stayed pending appeal, or are
not           discharged within sixty (60) days after the expiration of such stay;
provided,           however, that any judgment which is covered by insurance or an
indemnity from a           credit worthy party shall not be included in calculating the
amounts set forth           above so long as the Company provides the Holder a written
statement from such           insurer or indemnity provider (which written statement
shall be reasonably           satisfactory to the Holder) to the effect that such
judgment is covered by           insurance or an indemnity and the Company will receive
the proceeds of such           insurance or indemnity within thirty (30) days of the
issuance of such judgment;  

    
    
    (x)                     the
Company breaches any representation, warranty, covenant or other term or
          condition of any Transaction Document, except, in the case of a breach of a
          covenant or other term or condition of any Transaction Document which is
          curable, only if such breach continues for a period of at least ten (10)
          consecutive Business Days;  

    
    
    (xi)                     any
breach or failure in any respect to comply with Section 15 of this Note;  

9 

    
    
    (xii)                     the
Company or any Subsidiary shall fail to perform or comply with any covenant           or
agreement contained in any Security Agreement to which it is a party, any
          Pledge Agreement to which it is a party or any Mortgage to which it is a party;  

    
    
    (xiii)                     any
material provision of any Security Document (as determined by the Collateral
          Agent) shall at any time for any reason (other than pursuant to the express
          terms thereof) cease to be valid and binding on or enforceable against the
          Company or any Subsidiary intended to be a party thereto, or the validity or
          enforceability thereof shall be contested by any party thereto, or a proceeding
          shall be commenced by the Company or any Subsidiary or any governmental
          authority having jurisdiction over any of them, seeking to establish the
          invalidity or unenforceability thereof, or the Company or any Subsidiary shall
          deny in writing that it has any liability or obligation purported to be created
          under any Security Document;  

    
    
    (xiv)                     any
Security Agreement, any Pledge Agreement, any Mortgage or any other security
          document, after delivery thereof pursuant hereto, shall for any reason fail or
          cease to create a valid and perfected and, except to the extent permitted by
the           terms hereof or thereof, priority Lien in favor of the Collateral Agent for
the           benefit of the holders of the Notes on any Collateral (as defined in the
          Security Documents) purported to be covered thereby;  

    
    
    (xv)                     any
bank at which any deposit account, blocked account, or lockbox account of           the
Company or any Subsidiary is maintained shall fail to comply with any           material
term of any deposit account, blocked account, lockbox account or           similar
agreement to which such bank is a party or any securities intermediary,
          commodity intermediary or other financial institution at any time in custody,
          control or possession of any investment property of the Company or any
          Subsidiary shall fail to comply with any of the terms of any investment
property           control agreement to which such Person is a party (it being understood
that only           accounts pursuant to which the Collateral Agent has requested account
control           agreements should be subject to this clause (xv));  

    
    
    (xvi)                     any
material damage to, or loss, theft or destruction of, any Collateral,           whether
or not insured, or any strike, lockout, labor dispute, embargo,           condemnation,
act of God or public enemy, or other casualty which causes, for           more than
fifteen (15) consecutive days, the cessation or substantial           curtailment of
revenue producing activities at any facility of the Company or           any Subsidiary,
if any such event or circumstance could reasonably be expected           to have a
Material Adverse Effect (as defined in the Securities Purchase           Agreement); or
any Event of Default (as defined in the Other Notes) occurs with           respect to any
Other Notes.  

    
    (b)           Redemption
Right. Upon the occurrence of an Event of Default, the Company           shall within
one (1) Business Day deliver written notice thereof via facsimile           and overnight
courier (an “Event of Default Notice”) to the           Holder. At any
time after the earlier of the Holder’s receipt of an Event           of Default
Notice and the Holder becoming aware of an Event of Default, the           Holder may
require the Company to redeem all or any portion of this Note by           delivering
written notice thereof (the “Event of Default Redemption           Notice”)
to the Company, which Event of Default Redemption Notice shall           indicate the
portion of this Note the Holder is electing to redeem. Each portion           of this
Note subject to redemption by the Company pursuant to this Section 4(b)           shall
be redeemed by the Company at a price equal to the greater of (i) the           product
of (A) the Conversion Amount to be redeemed and (B) the Redemption           Premium and
(ii) the product of (A) the Conversion Rate with respect to such           Conversion
Amount in effect at such time as the Holder delivers an Event of           Default
Redemption Notice and (B) the product of (1) the Equity Value Redemption
          Premium and (2) the greatest Closing Sale Price of the Common Stock during the
          period beginning on the date immediately preceding such Event of Default and
          ending on the date the Holder delivers the Event of Default Redemption Notice
          (the “Event of DefaultRedemption Price”). Redemptions
          required by this Section 4(b) shall be made in accordance with the provisions
of           Section 13. To the extent redemptions required by this Section 4(b) are
deemed           or determined by a court of competent jurisdiction to be prepayments of
the Note           by the Company, such redemptions shall be deemed to be voluntary
prepayments.           The parties hereto agree that in the event of the Company’s
redemption of           any portion of the Note under this Section 4(b), the Holder’s
damages would           be uncertain and difficult to estimate because of the parties’ inability
to           predict future interest rates and the uncertainty of the availability of a
          suitable substitute investment opportunity for the Holder. Accordingly, any
          Redemption Premium due under this Section 4(b) is intended by the parties to
be,           and shall be deemed, a reasonable estimate of the Holder’s actual loss
of           its investment opportunity and not as a penalty.  

10 

    (5)           RIGHTS
UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL.  

    
    (a)           Assumption.
The Company shall not enter into or be party to a Fundamental           Transaction
unless (i)  the Successor Entity assumes in writing all of the           obligations
of the Company under this Note and the other Transaction Documents           in
accordance with the provisions of this Section 5(a) 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 Notes in exchange for such
          Notes a security of the Successor Entity evidenced by a written instrument
          substantially similar in form and substance to the Notes, including, without
          limitation, having a principal amount and interest rate equal to the principal
          amounts then outstanding and the interest rates of the Notes held by such
          holder, having similar conversion rights as the Notes and having similar
ranking           to the Notes, and satisfactory to the Required Holders and (ii) the
          Successor Entity (including its Parent Entity) is a publicly traded corporation
          whose common stock is quoted on or listed for trading on an Eligible Market.
          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 Note 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 Note 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 conversion or redemption of this
          Note at any time after the consummation of the Fundamental Transaction, in lieu
          of the shares of the Company’s Common Stock (or other securities, cash,
          assets or other property) issuable upon the conversion or redemption of the
          Notes prior to such Fundamental Transaction, such shares of the publicly traded
          common stock (or their equivalent) of the Successor Entity (including its
Parent           Entity), as adjusted in accordance with the provisions of this Note. The
          provisions of this Section shall apply similarly and equally to successive
          Fundamental Transactions and shall be applied without regard to any limitations
          on the conversion or redemption of this Note.  

11 

    
    (b)           Redemption
Right. No
sooner than fifteen (15) Trading Days nor later than ten (10) Trading Days prior to the
consummation of a Change of Control, but not prior to the public announcement of such
Change of Control, the Company shall deliver written notice thereof via facsimile and
overnight courier to the Holder (a “Change of Control Notice”). At
any time during the period beginning after the Holder’s receipt of a Change of
Control Notice and ending twenty (20) Trading Days after the date of the consummation of
such Change of Control, the Holder may require the Company to redeem all or any portion of
this Note by delivering written notice thereof (“Change of Control Redemption
Notice”) to the Company, which Change of Control Redemption Notice shall indicate
the Conversion Amount the Holder is electing to redeem. The portion of this Note subject
to redemption pursuant to this Section 5 shall be redeemed by the Company in cash at a
price equal to the greater of (i) 150% of the Conversion Amount being redeemed and (ii)
the product of (x) the Equity Value Redemption Premium and (y) the product of (1) the
Conversion Amount being redeemed multiplied by (2) the quotient determined by dividing (A)
the aggregate cash consideration and the aggregate cash value of any non-cash
consideration per share of Common Stock to be paid to the holders of the shares of Common
Stock upon consummation of the Change of Control (any such non-cash consideration
consisting of marketable securities to be valued at the higher of the Closing Sale Price
of such securities as of the Trading Day immediately prior to, the Closing Sale Price as
of the Trading Day immediately following the public announcement of such proposed Change
of Control and the Closing Sale Price of the Common Stock immediately prior to the public
announcement of such proposed Change of Control) by (B) the Conversion Price (the
“Change of Control Redemption Price”). Redemptions required by this
Section 5 shall be made in accordance with the provisions of Section 13 and shall have
priority to payments to stockholders in connection with a Change of Control. To the extent
redemptions required by this Section 5(b) are deemed or determined by a court of competent
jurisdiction to be prepayments of the Note by the Company, such redemptions shall be
deemed to be voluntary prepayments. Notwithstanding anything to the contrary in this
Section 5, but subject to Section 3(d), until the Change of Control Redemption Price
(together with any interest thereon) is paid in full, the Conversion Amount submitted for
redemption under this Section 5(b) (together with any interest thereon) may be converted,
in whole or in part, by the Holder into Common Stock pursuant to Section 3. The parties
hereto agree that in the event of the Company’s redemption of any portion of the Note
under this Section 5(b), the Holder’s damages would be uncertain and difficult to
estimate because of the parties’ inability to predict future interest rates and the
uncertainty of the availability of a suitable substitute investment opportunity for the
Holder. Accordingly, any Change of Control redemption premium due under this Section 5(b)
is intended by the parties to be, and shall be deemed, a reasonable estimate of the
Holder’s actual loss of its investment opportunity and not as a penalty. 

    (6)           RIGHTS
UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS.  

12 

    
    (a)           Purchase
Rights. 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           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 conversion of           this
Note (without taking into account any limitations or restrictions on the
          convertibility of this Note) immediately before the date on which a record is
          taken for the grant, issuance or sale of such Purchase Rights, or, if no such
          record is taken, the date as of which the record holders of Common Stock are to
          be determined for the grant, issue or sale of such Purchase Rights.  

    
    (b)           Other
Corporate Events. 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 a conversion of this Note, at the Holder’s option, (i) in
addition to           the shares of Common Stock receivable upon such conversion, such
securities or           other assets to which the Holder would have been entitled with
respect to such           shares of Common Stock had such shares of Common Stock been
held by the Holder           upon the consummation of such Corporate Event (without
taking into account any           limitations or restrictions on the convertibility of
this Note) or (ii) in lieu           of the shares of Common Stock otherwise receivable
upon such conversion, such           securities or other assets received by the holders
of shares of Common Stock in           connection with the consummation of such Corporate
Event in such amounts as the           Holder would have been entitled to receive had
this Note initially been issued           with conversion rights for the form of such
consideration (as opposed to shares           of Common Stock) at a conversion rate for
such consideration commensurate with           the Conversion Rate. Provision made
pursuant to the preceding sentence shall be           in a form and substance
satisfactory to the Required Holders. The provisions of           this Section shall
apply similarly and equally to successive Corporate Events           and shall be applied
without regard to any limitations on the conversion or           redemption of this Note.  

    (7)           RIGHTS
UPON ISSUANCE OF OTHER SECURITIES.  

    
    (a)           Adjustment
of Conversion Price upon Issuance of Common Stock. If and           whenever on or
after the Subscription Date, the Company issues or sells, or in           accordance with
this Section 7(a) is deemed to have issued or sold, any shares           of Common Stock
(including the issuance or sale of shares of Common Stock owned           or held by or
for the account of the Company, but excluding shares of Common           Stock deemed to
have been issued or sold by the Company in connection with any           Excluded
Securities) for a consideration per share (the “New Issuance           Price”)
less than a price (the “Applicable Price”)           equal to the
Conversion Price in effect immediately prior to such issue or sale           or deemed
issuance or sale (the foregoing a “Dilutive           Issuance”), then
immediately after such Dilutive Issuance the           Conversion Price then in effect
shall be reduced to an amount equal to the New           Issuance Price. For purposes of
determining the adjusted Conversion Price under           this Section 7(a), the
following shall be applicable:  

13 

    
    
    (i)       Issuance
of Options. If the Company in any manner grants or sells any           Options and
the lowest price per share for which one share of Common Stock is           issuable upon
the exercise of any such Option or upon conversion or exchange or           exercise of
any Convertible Securities issuable upon exercise of such Option is           less than
the Applicable Price, then such share of Common Stock shall be deemed           to be
outstanding and to have been issued and sold by the Company at the time of           the
granting or sale of such Option for such price per share. For purposes of           this
Section 7(a)(i), the “lowest price per share for which one share of           Common
Stock is issuable upon the exercise of any such Option or upon conversion           or
exchange or exercise of any Convertible Securities issuable upon exercise of
          such Option” shall be equal to the sum of the lowest amounts of
          consideration (if any) received or receivable by the Company with respect to
any           one share of Common Stock upon granting or sale of the Option, upon
exercise of           the Option and upon conversion or exchange or exercise of any
Convertible           Security issuable upon exercise of such Option. No further
adjustment of the           Conversion Price shall be made upon the actual issuance of
such share of Common           Stock or of such Convertible Securities upon the exercise
of such Options or           upon the actual issuance of such Common Stock upon
conversion or exchange or           exercise of such Convertible Securities.  

    
    
    (ii)       Issuance
of Convertible Securities. If the Company in any manner issues           or sells any
Convertible Securities and the lowest price per share for which one           share of
Common Stock is issuable upon such conversion or exchange or exercise           thereof
is less than the Applicable Price, then such share of Common Stock shall           be
deemed to be outstanding and to have been issued and sold by the Company at           the
time of the issuance or sale of such Convertible Securities for such price           per
share. For the purposes of this Section 7(a)(ii), the “lowest price per
          share for which one share of Common Stock is issuable upon such conversion or
          exchange or exercise” shall be equal to the sum of the lowest amounts of
          consideration (if any) received or receivable by the Company with respect to
any           one share of Common Stock upon the issuance or sale of the Convertible
Security           and upon the conversion or exchange or exercise of such Convertible
Security. No           further adjustment of the Conversion Price shall be made upon the
actual           issuance of such share of Common Stock upon conversion or exchange or
exercise           of such Convertible Securities, and if any such issue or sale of such
          Convertible Securities is made upon exercise of any Options for which
adjustment           of the Conversion Price had been or are to be made pursuant to other
provisions           of this Section 7(a), no further adjustment of the Conversion Price
shall be           made by reason of such issue or sale.  

    
    
    (iii)       Change
in Option Price or Rate of Conversion. If the purchase price           provided for
in any Options, the additional consideration, if any, payable upon           the issue,
conversion, exchange or exercise of any Convertible Securities, or           the rate at
which any Convertible Securities are convertible into or           exchangeable or
exercisable for Common Stock increases or decreases at any time,           the Conversion
Price in effect at the time of such increase or decrease shall be           adjusted to
the Conversion Price which would have been in effect at such time           had such
Options or Convertible Securities provided for such increased or           decreased
purchase price, additional consideration or changed conversion rate,           as the
case may be, at the time initially granted, issued or sold. For purposes           of
this Section 7(a)(iii), if the terms of any Option or Convertible Security           that
was outstanding as of the Subscription Date are increased or decreased in           the
manner described in the immediately preceding sentence, then such Option or
          Convertible Security and the Common Stock deemed issuable upon exercise,
          conversion or exchange thereof shall be deemed to have been issued as of the
          date of such increase or decrease. No adjustment shall be made if such
          adjustment would result in an increase of the Conversion Price then in effect.  

14 

    
    
    (iv)       Calculation
of Consideration Received. In case any Option is issued in           connection with
the issue or sale of other securities of the Company, together           comprising one
integrated transaction in which no specific consideration is           allocated to such
Options by the parties thereto, the Options will be deemed to           have been issued
for a consideration of $.01. If any Common Stock, Options or           Convertible
Securities are issued or sold or deemed to have been issued or sold           for cash,
the consideration received therefor will be deemed to be the net           amount
received by the Company therefor. If any Common Stock, Options or           Convertible
Securities are issued or sold for a consideration other than cash,           the amount
of the consideration other than cash received by the Company will be           the fair
value of such consideration, except where such consideration consists           of
securities, in which case the amount of consideration received by the Company
          will be the Closing Sale Price of such securities on the date of receipt. If
any           Common Stock, Options or Convertible Securities are issued to the owners of
the           non-surviving entity in connection with any merger in which the Company is
the           surviving entity, the amount of consideration therefor will be deemed to be
the           fair value of such portion of the net assets and business of the
non-surviving           entity as is attributable to such Common Stock, Options or
Convertible           Securities, as the case may be. The fair value of any consideration
other than           cash or securities will be determined jointly by the Company and the
Required           Holders. If such parties are unable to reach agreement within ten (10)
days           after the occurrence of an event requiring valuation (the “Valuation
          Event”), the fair value of such consideration will be determined
within           five (5) Business Days after the tenth (10th) day following
the           Valuation Event by an independent, reputable appraiser jointly selected by
the           Company and the Required Holders. The determination of such appraiser shall
be           deemed binding upon all parties absent manifest error and the fees and
expenses           of such appraiser shall be borne by the Company.  

    
    
    (v)       Record
Date. If the Company takes a record of the holders of Common Stock           for the
purpose of entitling them (A) to receive a dividend or other           distribution
payable in Common Stock, Options or in Convertible Securities or           (B) to
subscribe for or purchase Common Stock, Options or Convertible           Securities, then
such record date will be deemed to be the date of the issue or           sale of the
Common Stock deemed to have been issued or sold upon the declaration           of such
dividend or the making of such other distribution or the date of the           granting
of such right of subscription or purchase, as the case may be.  

    
    
    (vi)       Automatic
Adjustment. On each of November [__], 2008 and August [__], 2009           (each, an
“Adjustment Date”), if 75% of the Average Market           Price as of
the applicable Adjustment Date is less than the existing Conversion           Price, the
then current Conversion Price hereunder shall be reset to 75% of the           Average
Market Price as of such applicable Adjustment Date; provided, in no           event shall
such reset result in an increase in the then existing Conversion           Price.  

15 

    
    
    (vii)       Milestone
Adjustment. If the Company fails any Financial Milestone (as           defined below)
(each a “Milestone Failure”), the then current           Conversion
Price hereunder shall be reset on the tenth (10th) Trading Date after           the
earlier to occur of the applicable Announcement Date (as defined below) or
          Announcement Date Deadline (as defined below) to 75% of the Average Market
Price           as of the date that is ten (10) Trading Days after such Announcement Date
or           Announcement Date Deadline, as applicable; provided, in no event shall such
          reset result in an increase in the then existing Conversion Price.  

    
    (b)       Adjustment
of Conversion Price upon Subdivision or Combination of Common           Stock. If the
Company at any time on or after the Subscription 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
Conversion Price in effect immediately prior to such           subdivision will be
proportionately reduced. If the Company at any time on or           after the
Subscription 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 Conversion Price in effect immediately prior to           such
combination will be proportionately increased.  

    
    (c)       Voluntary
Adjustment By Company. The Company may at any time during the           term of this Note reduce
the then current  Conversion Price           to any amount and for any period
of time deemed appropriate by the Board of           Directors of the Company.  

    
    (d)       Other
Events. If any event occurs of the type contemplated by the           provisions of
this Section 7 but not expressly provided for by such provisions           (including,
without limitation, the granting of stock appreciation rights,           phantom stock
rights or other rights with equity features), then the           Company’s Board of
Directors will make an appropriate adjustment in the           Conversion Price so as to
protect the rights of the Holder under this Note;           provided that no such
adjustment will increase the Conversion Price as otherwise           determined pursuant
to this Section 7.  

    (8)       SECURITY.
This Note and the Other Notes are secured to the extent and in           the manner set
forth in the Security Documents (as defined in the Securities           Purchase
Agreement).  

    (9)       NONCIRCUMVENTION.
The Company hereby covenants and agrees that the           Company will not, by amendment
of its Certificate of Incorporation, Bylaws 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 Note, and will
at all times in good faith carry out all of the           provisions of this Note and
take all action as may be required to protect the           rights of the Holder of this
Note.  

16 

    (10)           RESERVATION
OF AUTHORIZED SHARES.  

    
    
(a)           Reservation.
The Company shall initially reserve out of its authorized           and unissued Common
Stock a number of shares of Common Stock for each of the           Notes equal to 130% of
the Conversion Rate with respect to the Conversion Amount           of each such Note as
of the IssuanceDate. So long as any of the Notes           are outstanding, the
Company shall take all action necessary to reserve and keep           available out of
its authorized and unissued Common Stock, solely for the           purpose of effecting
the conversion of the Notes, 130% of the number of shares           of Common Stock as
shall from time to time be necessary to effect the conversion           of all of the
Notes then outstanding; provided that at no time shall the number           of shares of
Common Stock so reserved be less than the number of shares required           to be
reserved by the previous sentence (without regard to any limitations on
          conversions) (the “Required Reserve Amount”). The initial
          number of shares of Common Stock reserved for conversions of the Notes and each
          increase in the number of shares so reserved shall be allocated pro rata among
          the holders of the Notes based on the principal amount of the Notes held by
each           holder at the Closing (as defined in the Securities Purchase Agreement) or
          increase in the number of reserved shares, as the case may be (the
          “Authorized Share Allocation”). In the event that a holder
          shall sell or otherwise transfer any of such holder’s Notes, each
          transferee shall be allocated a pro rata portion of such holder’s
          Authorized Share Allocation. Any shares of Common Stock reserved and allocated
          to any Person which ceases to hold any Notes shall be allocated to the
remaining           holders of Notes, pro rata based on the principal amount of the Notes
then held           by such holders.  

    
    (b)           Insufficient
Authorized Shares. If at any time while any of the Notes           remain 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
conversion of the Notes at least a number of shares of Common           Stock equal to
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           Notes 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 sixty (60) 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.  

    (11)           HOLDER’S
RIGHT OF OPTIONAL REDEMPTION. On the one (1) year           anniversary of the
Issuance Date (the “Optional Redemption           Date”), the Holder
shall have the right (the “Optional           Redemption”), in its sole
discretion, to require that the Company           redeem up to all of the outstanding
Conversion Amount of this Note (the           “Redemption Amount”) by
delivering written notice thereof to           the Company no later than two (2) Business
Days prior to the Optional Redemption           Date (a “Optional Redemption
Notice” and the date the Holder           delivers such notice, the “Optional
Redemption Notice Date”)           which Optional Redemption Notice shall
specify the Conversion Amount that the           Holder is electing to have redeemed
hereunder; provided, however, that the           Holder shall not be entitled to effect
the Optional Redemption if (a) the           Weighted Average Price of the Common Stock
exceeded 135% of the Conversion Price           on the Issuance Date (as adjusted for any
stock splits, stock dividends,           recapitalizations, combinations, reverse stock
splits or other similar events           during such Optional Redemption Measuring
Period) for any thirty (30)           consecutive Trading Days during the period
commencing on the Issuance Date and           ending on the Optional Redemption Notice
Date (the “Optional Redemption           Measuring Period”)and
(b) the daily trading volume of the           Common Stock as reported on Bloomberg on
each of the thirty (30) Trading Days           used to satisfy the condition set forth in
clause (a) equaled or exceeded           250,000 shares. The Company shall redeem the
Redemption Amount on the Optional           Redemption Date in cash at a price equal to
the Redemption Amount (the           “Optional Redemption Price”).
Redemptions made pursuant to this           Section 11 shall be made in accordance with
Section 13. No later than one (1)           Trading Day following the Optional Redemption
Date, the Company shall file a           Current Report on Form 8-K describing the terms
of the Optional Redemption.  

17 

    (12)        HOLDER’S
RIGHT OF OPTIONAL CONVERSION/REDEMPTION  

    
    (a)           General.
At any time and from time to time after the earlier of (i) the           Initial
Effective Date (as defined in the Registration Rights Agreement) and           (ii) the
six (6) month anniversary of the Issuance Date, the Holder shall have           the
right, in its sole discretion, to require that the Company, convert, or, at           the
Company’s election, redeem up to the Available Conversion/Redemption
          Amount of the Conversion Amount (the “Conversion/Redemption
          Amount”) by delivering written notice thereof (a “Holder
          Optional Conversion/Redemption Notice” and the date the Holder
delivers           such notice, the “Holder Optional Conversion/Redemption Notice
          Date”). Within one (1) Business Day of the Holder Optional
          Conversion/Redemption Notice Date, the Company shall deliver to the Holder a
          written notice (a “Company Conversion/Redemption Notice” and
          the date the Holder receives such written notice, the “Company
          Conversion/Redemption Notice Date”) which notice shall (i) either (A)
          confirm that the Conversion/Redemption Amount shall be converted (a
          “CompanyOptional Conversion”) in whole or in part or
          (B)(1) state that the Company elects to redeem (an “CompanyOptional
Redemption”), in whole or in part, the           Conversion/Redemption Amount
and (2) specify the portion which the Company           elects to redeem pursuant to a
Company Optional Redemption (such amount to be           redeemed, the “CompanyOptional
Redemption Amount”) and           the portion, if any, that the Company elects
to convert pursuant to a Company           Optional Conversion (such amount also, an
“Company Optional Conversion           Amount”) and (ii) if the
Conversion/Redemption Amount is to be paid, in           whole or in part, pursuant to a
Company Optional Conversion, certify that there           has been no Equity Conditions
Failure (other than with respect to clause (iv)(A)           of the definition of Equity
Conditions); provided, however, that the Company may           not effect a Company
Optional Conversion under this Section 12 in excess of the           Holder Pro Rata
Amount of the applicable Optional Conversion Volume Limitation.           Each Company
Conversion/Redemption Notice shall be irrevocable. The Company           shall redeem and
convert any Company Optional Redemption Amounts and Company           Optional Conversion
Amounts within three (3) Trading Days of the Company           Conversion/Redemption
Notice Date (the “Optional Conversion/Redemption           Date”) and
shall make the same conversion and redemption decisions as           to all the Notes for
which the Company has received a Holder Optional           Conversion/Redemption Notice.
The portion of this Note subject to redemption           pursuant to this Section 12
shall be redeemed by the Company in cash at a price           equal to the Company
Optional Redemption Amount (the “Company Optional           Redemption Price”).  

18 

    
    (b)           Mechanics
of Holder Optional Conversion. If the Company delivers a           Company
Conversion/Redemption Notice electing a Company Optional Conversion in
          accordance with Section 12(a), then, on the Optional Conversion/Redemption
Date,           the Company shall, or shall direct the Transfer Agent to, deliver to the
          Holder’s account with DTC, or issue the Holder a certificate for, a number
          of shares of Common Stock equal to the quotient of (A) such Company Optional
          Conversion Amount divided by (B) the Optional Conversion Price on the Optional
          Conversion/Redemption Date. If the Company has elected a Company Optional
          Conversion, in whole or in part, and there is an Equity Conditions Failure
          (other than with respect to clause (iv)(A) of the definition of Equity
          Conditions) at the Optional Conversion/Redemption Date, then at the option of
          the Holder designated in writing to the Company, the Holder may require the
          Company to do either one or both of the following: (A) the Company shall redeem
          all or any part designated by the Holder of the unconverted Company Optional
          Conversion Amount (such designated amount is referred to as the “Holder
          Designated Redemption Amount”) on such Optional Conversion/Redemption
          Date and the Company shall pay to the Holder on such Optional
          Conversion/Redemption Date by wire transfer of immediately available funds, an
          amount in cash equal to 125% of such Holder Designated Redemption Amount,
and/or           (B) the Company Optional Conversion shall be null and void with respect
to all           or any part designated by the Holder of the unconverted Company Optional
          Conversion Amount and the Holder shall be entitled to all the rights of a
holder           of this Note with respect to such amount of the Company Optional
Conversion           Amount; provided, however, that the Conversion Price for such
unconverted           Company Optional Conversion Amount shall thereafter be adjusted to
equal the           lowest the Optional Conversion Price as in effect during the period
beginning on           the date on which the Holder voided the Company Optional
Conversion and ending           on the date on which the Holder delivers a Conversion
Notice relating thereto.           If the Company fails to redeem the Holder Designated
Redemption Amount on or           before the Optional Conversion/Redemption Date by
payment of such amount on such           Optional Conversion/Redemption Date then the
Holder shall have the rights set           forth in Section 13 as if the Company failed
to pay the applicable Company           Optional Redemption Price and all other rights
under this Note (including,           without limitation, such failure constituting an
Event of Default described in           Section 4(a)(v)).  

    
    (c)           Mechanics
of Holder Optional Redemption. Company Optional Redemptions           made pursuant
to this Section 12 shall be made in accordance with Section 13.  

    (13)           HOLDER’S
REDEMPTIONS.  

    
    (a)           Mechanics.
The Company shall deliver the applicable Event of Default           Redemption Price to
the Holder within five (5) Business Days after the           Company’s receipt of
the Holder’s Event of Default Redemption Notice.           If the Holder has
submitted a Change of Control Redemption Notice in accordance           with Section
5(b), the Company shall deliver the applicable Change of Control           Redemption
Price to the Holder concurrently with the consummation of such Change           of
Control if such notice is received prior to the consummation of such Change           of
Control and within five (5) Business Days after the Company’s receipt of
          such notice otherwise. The Company shall deliver the applicable Optional
          Redemption Price on the Optional Redemption Date and shall deliver the
          applicable Company Optional Redemption Price on the Optional
          Conversion/Redemption Date. In the event of a redemption of less than all of
the           Conversion Amount of this Note, the Company shall promptly cause to be
issued           and delivered to the Holder a new Note (in accordance with Section
19(d))           representing the outstanding Principal which has not been redeemed. In
the event           that the Company does not pay the applicable Redemption Price to the
Holder           within the time period required, at any time thereafter and until the
Company           pays such unpaid Redemption Price in full, the Holder shall have the
option, in           lieu of redemption, to require the Company to promptly return to the
Holder all           or any portion of this Note representing the Conversion Amount that
was           submitted for redemption and for which the applicable Redemption Price
(together           with any Late Charges thereon) has not been paid. Upon the Company’s
          receipt of such notice, (x) the Redemption Notice shall be null and void with
          respect to such Conversion Amount, (y) the Company shall immediately return or
          reinstate this Note, or issue a new Note (in accordance with Section 19(d)) to
          the Holder representing such Conversion Amount and (z) the Conversion Price of
          this Note or such new Notes shall be adjusted to the lesser of (A) the
          Conversion Price as in effect on the date on which the applicable Redemption
          Notice is voided and (B) the lowest Closing Bid Price of the Common Stock
during           the period beginning on and including the date on which the applicable
          Redemption Notice is delivered to the Company and ending on and including the
          date on which the applicable Redemption Notice is voided. The Holder’s
          delivery of a notice voiding a Redemption Notice and exercise of its rights
          following such notice shall not affect the Company’s obligations to make
          any payments of Late Charges which have accrued prior to the date of such
notice           with respect to the Conversion Amount subject to such notice.  

19 

    
    (b)           Redemption
by Other Holders. Upon the Company’s receipt of notice           from any of the
holders of the Other Notes for redemption or repayment as a           result of an event
or occurrence substantially similar to the events or           occurrences described in
Section 4(b), Section 5(b), Section 11 or Section 12           (each, an “Other
Redemption Notice”), the Company shall           immediately, but no later than
one (1) Business Day of its receipt thereof,           forward to the Holder by facsimile
a copy of such notice. If the Company           receives a Redemption Notice and one or
more Other Redemption Notices, during           the seven (7) Business Day period
beginning on and including the date which is           three (3) Business Days prior to
the Company’s receipt of the Holder’s           Redemption Notice and ending on
and including the date which is three (3)           Business Days after the Company’s
receipt of the Holder’s Redemption           Notice and the Company is unable to
redeem all principal, interest and other           amounts designated in such Redemption
Notice and such Other Redemption Notices           received during such seven (7)
Business Day period, then the Company shall           redeem a pro rata amount from each
holder of the Notes (including the Holder)           based on the principal amount of the
Notes submitted for redemption pursuant to           such Redemption Notice and such
Other Redemption Notices received by the Company           during such seven Business Day
period.  

    (14)           VOTING
RIGHTS. The Holder shall have no voting rights as the holder of           this Note,
except as required by law, including, but not limited to, the Nevada           Business
Corporation Act and as expressly provided in this Note.  

    (15)           COVENANTS.
So long as this Note is outstanding:  

    
    (a)           Rank.
All payments due under this Note (A) shall rank pari passu          with all Other
Notes and the September 2007 Notes and (B) shall be senior to all other Indebtedness of the           Company and its
Subsidiaries.  

20 

    
    (b)           Incurrence
of Indebtedness. The Company shall not, and the Company shall           not permit
any of its Subsidiaries to, directly or indirectly, incur or           guarantee, assume
or suffer to exist any Indebtedness, other than (i) the           Indebtedness evidenced
by this Note and the Other Notes and (ii) other Permitted           Indebtedness.  

    
    (c)           Existence
of Liens. The Company shall not, and the Company shall not           permit any of
its Subsidiaries to, directly or indirectly, allow or suffer to           exist any
mortgage, lien, pledge, charge, security interest or other encumbrance           upon or
in any property or assets (including accounts and contract rights) owned           by the
Company or any of its Subsidiaries (collectively,           “Liens”)
other than Permitted Liens.  

    
    (d)           Restricted
Payments. The Company shall not, and the Company shall not           permit any of
its Subsidiaries to, directly or indirectly, redeem, defease,           repurchase, repay
or make any payments in respect of, by the payment of cash or           cash equivalents
(in whole or in part, whether by way of open market purchases,           tender offers,
private transactions or otherwise), all or any portion of any           Indebtedness
(other than this Note and the Other Notes), whether by way of           payment in
respect of principal of (or premium, if any) or interest on such           Indebtedness,
if at the time such payment is due or is otherwise made or, after           giving effect
to such payment, an event constituting, or that with the passage           of time and
without being cured would constitute, an Event of Default has           occurred and is
continuing; provided that notwithstanding the foregoing, no           principal (or any
portion thereof) of any Subordinated Indebtedness may be paid           (whether upon
maturity, redemption, acceleration or otherwise) so long as this           Note is
outstanding.  

    
    (e)           Restriction
on Redemption and Cash Dividends. Until all of the Notes have           been
converted, redeemed or otherwise satisfied in accordance with their terms,           the
Company shall not, directly or indirectly, redeem, repurchase or declare or           pay
any cash dividend or distribution on its capital stock without the prior
          express written consent of the Required Holders.  

    
    (f)           Creation
of New Subsidiaries. So long as the obligations of the Company           under this
Note are outstanding, if the Company shall create or acquire any           Subsidiary,
simultaneous with the creation or acquisition of such Subsidiary,           the Company
shall (i) promptly cause such Subsidiary to become a guarantor by           executing a
guaranty in favor of the Holder in form and substance reasonably           acceptable to
the Company, the Subsidiary and the Holder, (ii) promptly cause           such Subsidiary
to become a grantor under the Security Agreement by executing a           joinder to the
Security Agreement in form and substance reasonably acceptable to           the Company,
the Subsidiary and the Holder, (iii) promptly cause such Subsidiary           to become a
pledgor by the Company and such Subsidiary executing a pledge           agreement in form
and substance reasonably acceptable to the Company, the           Subsidiary and the
Holder, and (iv) promptly cause such Subsidiary to duly           execute and/or deliver
such opinions of counsel and other documents, in form and           substance reasonable
acceptable to the Holder, as the Holder shall reasonably           request with respect
thereto.  

    
    (g)           Intellectual
Property. So long as the obligations of the Company under           this Note are
outstanding, the Company shall not, and shall not permit any           Subsidiary to,
directly or indirectly, (i) assign, transfer or otherwise           encumber or allow any
other Person to have any rights or license to any of the           Intellectual Property
Rights (as defined in the Securities Purchase Agreement)           of the Company or its
Subsidiaries or (ii) take any action or inaction to impair           the value of their
Intellectual Property Rights.  

21 

    
    (h)           Change
in Collateral; Collateral Records. The Company shall (i) give the
          Collateral Agent (as defined in the Securities Purchase Agreement) not less
than           thirty (30) days’ prior written notice of any change in the
location           of any Collateral (as defined in the Security Documents (as defined in
the           Securities Purchase Agreement)), other than to locations set forth on
          Schedule 15(h) hereto and with respect to which the Collateral Agent has
          filed financing statements and otherwise fully perfected its Liens thereon,
          (ii) advise the Collateral Agent promptly, in sufficient detail, of any
          material adverse change relating to the type, quantity or quality of the
          Collateral or the Lien granted thereon and (iii) execute and deliver, and
          cause each of its Subsidiaries to execute and deliver, to the Collateral Agent
          for the benefit of the Holder and holders of the Other Notes from time to time,
          solely for the Collateral Agent’s convenience in maintaining a record of
          Collateral, such written statements and schedules as the Collateral Agent may
          reasonably require, designating, identifying or describing the Collateral.  

    
    (i)           Transactions
with Affiliates. The Company shall not, nor shall it permit           any of its
Subsidiaries to, enter into, renew, extend or be a party to, any           transaction or
series of related transactions (including, without limitation,           the purchase,
sale, lease, transfer or exchange of property or assets of any           kind or the
rendering of services of any kind) with any Affiliate, except           (i) in the
ordinary course of business in a manner and to an extent           consistent with past
practice and necessary or desirable for the prudent           operation of its business,
for fair consideration and on terms no less favorable           to it or its Subsidiaries
than would be obtainable in a comparable arm’s           length transaction with a
Person that is not an Affiliate thereof.  

    
    (j)           Change
in Nature of Business. The Company shall not make, or permit any           of its
Subsidiaries to make, any change in the nature of its business as           described in
the Company’s most recent annual report filed on Form 10-K           with the SEC.
The Company shall not modify its corporate structure or purpose.  

    
    (k)           Preservation
of Existence, Etc. The Company shall maintain and preserve,           and cause each
of its Subsidiaries to maintain and preserve, its existence,           rights and
privileges, and become or remain, and cause each of its Subsidiaries           to become
or remain, duly qualified and in good standing in each jurisdiction in           which
the character of the properties owned or leased by it or in which the
          transaction of its business makes such qualification necessary.  

    
    (l)           Maintenance
of Properties, Etc. The Company shall maintain and preserve,           and cause each
of its Subsidiaries to maintain and preserve, all of its           properties which are
necessary or useful in the proper conduct of its business           in good working order
and condition, ordinary wear and tear excepted, and           comply, and cause each of
its Subsidiaries to comply, at all times with the           provisions of all leases to
which it is a party as lessee or under which it           occupies property, so as to
prevent any loss or forfeiture thereof or           thereunder.  

22 

    
    (m)           Maintenance
of Insurance. The Company shall maintain, and cause each of           its
Subsidiaries to maintain, insurance with responsible and reputable insurance
          companies or associations (including, without limitation, comprehensive general
          liability, hazard, rent and business interruption insurance) with respect to
its           properties (including all real properties leased or owned by it) and
business,           in such amounts and covering such risks as is required by any
governmental           authority having jurisdiction with respect thereto or as is
carried generally in           accordance with sound business practice by companies in
similar businesses           similarly situated and in any event in amount, adequacy and
scope reasonably           satisfactory to the Collateral Agent. All policies covering
the Collateral are           to be made payable to the Collateral Agent for the benefit
of the Holder and the           holder of the Other Notes, as its interests may appear,
in case of loss, under a           standard non-contributory “lender” or “secured
party” clause           and are to contain such other provisions as the Collateral
Agent may require to           fully protect the interest of the Holder and the holder of
the Other Notes in           the Collateral and to any payments to be made under such
policies. All           certificates of insurance are to be delivered to the Collateral
Agent and the           policies are to be premium prepaid, with the loss payable and
additional insured           endorsement in favor of the Collateral Agent and such other
Persons as the           Collateral Agent may designate from time to time, and shall
provide for not less           than 30 days’ prior written notice to the Collateral
Agent of the exercise           of any right of cancellation. If the Company or any of
its Subsidiaries fails to           maintain such insurance, the Collateral Agent may
arrange for such insurance,           but at the Company’s expense and without any
responsibility on the           Collateral Agent’s part for obtaining the insurance,
the solvency of the           insurance companies, the adequacy of the coverage, or the
collection of claims.           Upon the occurrence and during the continuance of an
Event of Default, the           Collateral Agent shall have the sole right, in the name
of the Holder and the           holders of the Other Notes, the Company and its
Subsidiaries, to file claims           under any insurance policies, to receive, receipt
and give acquittance for any           payments that may be payable thereunder, and to
execute any and all           endorsements, receipts, releases, assignments,
reassignments or other documents           that may be necessary to effect the
collection, compromise or settlement of any           claims under any such insurance
policies.  

    
    (n)           Operating
Results Announcement. The Company shall announce (the date of           such
announcement, the “Announcement Date”) its operating           results
(the “Operating Results”) from which achievement of           each
Financial Milestone can be determined no later than (x) with respect to a
          Financial Milestone for a six month period ended June 30th (the “LSM
          Period”), the forty-fifth (45th) day after the end of such
          Fiscal Quarter ended June 30th or, (y) with respect to a Financial Milestone
for           the twelve month period ended December 31st (the “LTM Period”,
          and together with the LSM Period, the “Milestone Periods”),
the           ninetieth (90th) day after the last Fiscal Quarter of such
fiscal           year (each such date, the “Announcement Date Deadline”),
          including, without limitation, the EBITDA and Net Revenue for such Milestone
          Period, and, in the event the Company shall have achieved the Financial
          Milestone, such announcement shall include a statement to the effect that the
          Company has achieved the Financial Milestone for such Milestone Period ended as
          of such Fiscal Quarter; provided, however, that in the event the Company is
          delayed in announcing its Operating Results for any such Fiscal Quarter, the
          Company shall, in lieu of the foregoing, (i) publicly disclose (the
          “Interim Announcement”) on a Current Report on Form 8-K on or
          prior to the applicable Announcement Date Deadline that it has complied with
all           of its covenants under the Notes, including, without limitation, the
achievement           of the Financial Milestone for such Milestone Period ended as of
such Fiscal           Quarter and (ii) provide to the Holders a certification, in
accordance with           terms of the next sentence, certifying the same; provided,
further, that if (A)           the Company does not make the Interim Announcement by the
applicable deadline or           (B) subsequently, at the time of announcement of its
Operating Results for such           Fiscal Quarter, such Operating Results report EBITDA
and/or Net Revenue for the           applicable Milestone Period which are less than
those set forth in the Interim           Announcement, then, in each case, the Company
shall be deemed to have failed to           achieve the applicable Financial Milestone.
On each Announcement Date or Interim           Announcement Date, the Company shall also
provide to the Holders a           certification, executed on behalf of the Company by
the Chief Financial Officer           of the Company, certifying that the Company
achieved the applicable Financial           Milestone and, in the case of the Interim
Announcement Date, setting for the           EBITDA and Net Revenue for the applicable
Milestone Period required by the           foregoing sentence.  

    
    (o)        Post-Closing
Collateral Matters.    Execute and deliver the documents and complete the tasks set
forth on Schedule 15(o), in each case within the time limits specified on such schedule.  

23 

    (16)           PARTICIPATION.
The Holder, as the holder of this Note, shall be entitled           to receive such
dividends paid and distributions made to the holders of Common           Stock to the
same extent as if the Holder had converted this Note into Common           Stock (without
regard to any limitations on conversion herein or elsewhere) and           had held such
shares of Common Stock on the record date for such dividends and           distributions.
Payments under the preceding sentence shall be made concurrently           with the
dividend or distribution to the holders of Common Stock.  

    (17)           VOTE
TO ISSUE, OR CHANGE THE TERMS OF, NOTES. The affirmative vote at a           meeting
duly called for such purpose or the written consent without a meeting of           the
Required Holders shall be required for any change or amendment to this Note           or
the Other Notes. No consideration shall be offered or paid to any holder of
          Notes to amend or consent to a waiver or modification of the Notes unless the
          same consideration also is offered to all of the holders of Notes.  

    (18)           TRANSFER.
This Note and any shares of Common Stock issued upon conversion           of this Note
may be offered, sold, assigned or transferred by the Holder without           the consent
of the Company, subject only to the provisions of Section 2(f) of           the
Securities Purchase Agreement.  

    (19)           REISSUANCE
OF THIS NOTE.  

    
    (a)           Transfer.
If this Note is to be transferred, the Holder shall surrender           this Note to the
Company, whereupon the Company will forthwith issue and deliver           upon the order
of the Holder a new Note (in accordance with Section 19(d)),           registered as the
Holder may request, representing the outstanding Principal           being transferred by
the Holder and, if less then the entire outstanding           Principal is being
transferred, a new Note (in accordance with Section 19(d)) to           the Holder
representing the outstanding Principal not being transferred. The           Holder and
any assignee, by acceptance of this Note, acknowledge and agree that,           (i) by
reason of the provisions of Section 3(c)(iii) following conversion or
          redemption of any portion of this Note, the outstanding Principal represented
by           this Note may be less than the Principal stated on the face of this Note and
          (ii) it will be bound by the appointment of the Collateral Agent (as defined in
          the Securities Purchase Agreement) and collateral agency provisions regarding
          such appointment as set forth in Section 4(o) of the Securities Purchase
          Agreement.  

    
    (b)           Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence
          reasonably satisfactory to the Company of the loss, theft, destruction or
          mutilation of this Note, 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 Note, the
          Company shall execute and deliver to the Holder a new Note (in accordance with
          Section 19(d)) representing the outstanding Principal.  

24 

    
    (c)           Note
Exchangeable for Different Denominations. This Note is exchangeable,           upon
the surrender hereof by the Holder at the principal office of the Company,           for
a new Note or Notes (in accordance with Section 19(d)) representing in the
          aggregate the outstanding Principal of this Note, and each such new Note will
          represent such portion of such outstanding Principal as is designated by the
          Holder at the time of such surrender.  

    
    (d)           Issuance
of New Notes. Whenever the Company is required to issue a new           Note pursuant
to the terms of this Note, such new Note (i) shall be of like           tenor with this
Note, (ii) shall represent, as indicated on the face of such new           Note, the
Principal remaining outstanding (or in the case of a new Note being           issued
pursuant to Section 19(a) or Section 19(c), the Principal designated by           the
Holder which, when added to the principal represented by the other new Notes
          issued in connection with such issuance, does not exceed the Principal
remaining           outstanding under this Note immediately prior to such issuance of new
Notes),           (iii) shall have an issuance date, as indicated on the face of such new
Note,           which is the same as the Issuance Date of this Note, (iv) shall have the
same           rights and conditions as this Note, and (v) shall represent accrued and
unpaid           Interest and Late Charges, if any, on the Principal and Interest of this
Note           from the Issuance Date.  

    (20)           REMEDIES,
CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE           RELIEF. The
remedies provided in this Note shall be cumulative and in           addition to all other
remedies available under this Note and any of the other           Transaction Documents
at law or in equity (including a decree of specific           performance and/or other
injunctive relief), and nothing herein shall limit the           Holder’s right to
pursue actual and consequential damages for any failure           by the Company to
comply with the terms of this Note. Amounts set forth or           provided for herein
with respect to payments, conversion and the like (and the           computation thereof)
shall be the amounts to be received by the Holder and shall           not, except as
expressly provided herein, be subject to any other obligation of           the Company
(or the performance thereof). 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
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.  

    (21)           PAYMENT
OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is           placed in
the hands of an attorney for collection or enforcement or is collected           or
enforced through any legal proceeding or the Holder otherwise takes action to
          collect amounts due under this Note or to enforce the provisions of this Note
or           (b) there occurs any bankruptcy, reorganization, receivership of the Company
or           other proceedings affecting Company creditors’ rights and involving a
claim           under this Note, then the Company shall pay the costs incurred by the
Holder for           such collection, enforcement or action or in connection with such
bankruptcy,           reorganization, receivership or other proceeding, including, but
not limited to,           financial advisory fees and attorneys’ fees and
disbursements.  

25 

    (22)           CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted           by the Company
and all the Purchasers and shall not be construed against any           person as the
drafter hereof. The headings of this Note are for convenience of           reference and
shall not form part of, or affect the interpretation of, this           Note.  

    (23)           FAILURE
OR INDULGENCE NOT WAIVER. No failure or delay on the part of the           Holder in
the exercise of any power, right or privilege hereunder shall operate           as a
waiver thereof, nor shall any single or partial exercise of any such power,
          right or privilege preclude other or further exercise thereof or of any other
          right, power or privilege.  

    (24)           DISPUTE
RESOLUTION. In the case of a dispute as to the determination of           (a) the
Closing Bid Price, the Closing Sale Price or the Weighted Average Price           or (b)
the arithmetic calculation of the Conversion Rate or any Redemption           Price, the
Company shall submit the disputed determinations or arithmetic           calculations via
facsimile within one (1) Business Day of receipt, or deemed           receipt, of the
Conversion Notice or Redemption Notice or other event 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 within one           (1) Business
Day of such disputed determination or arithmetic calculation being           submitted to
the Holder, then the Company shall, within one (1) Business Day           submit via
facsimile (a) the disputed determination of the Closing Bid Price,           the Closing
Sale Price or the Weighted Average Price to an independent,           reputable
investment bank selected by the Company and approved by the Holder or           (b) the
disputed arithmetic calculation of the Conversion Rate or any Redemption           Price
to the Company’s independent, outside accountant. The Company, at the
          Company’s expense, shall cause 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 five (5) Business 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.  

    (25)           NOTICES;
PAYMENTS.  

    
    (a)           Notices.
Whenever notice is required to be given under this Note, unless           otherwise
provided herein, such notice shall be given in accordance with Section           9(f) of
the Securities Purchase Agreement. The Company shall provide the Holder           with
prompt written notice of all actions taken pursuant to this Note, 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 Conversion
          Price, setting forth in reasonable detail, and certifying, the calculation of
          such adjustment and (ii) at least twenty (20) 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 Common Stock, (B) with respect to any pro rata
          subscription offer to holders of Common Stock 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.  

26 

    
    (b)           Payments.
Whenever any payment of cash is to be made by the Company to           any Person
pursuant to this Note, such payment shall be made in lawful money of           the United
States of America by a check drawn on the account of the Company and           sent via
overnight courier service to such Person at such address as previously           provided
to the Company in writing (which address, in the case of each of the
          Purchasers, shall initially be as set forth on the Schedule of Buyers attached
          to the Securities Purchase Agreement); provided that the Holder may elect to
          receive a payment of cash via wire transfer of immediately available funds by
          providing the Company with prior written notice setting out such request and
the           Holder’s wire transfer instructions. Whenever any amount expressed to
be           due by the terms of this Note is due on any day which is not a Business Day,
the           same shall instead be due on the next succeeding day which is a Business
Day           and, in the case of any Interest Date which is not the date on which this
Note           is paid in full, the extension of the due date thereof shall not be taken
into           account for purposes of determining the amount of Interest due on such
date. Any           amount of Principal or other amounts due under the Transaction
Documents which           is not paid when due shall result in a late charge being
incurred and payable by           the Company in an amount equal to interest on such
amount at the rate of           eighteen percent (18.0%) per annum from the date such
amount was due until the           same is paid in full (“Late Charge”).  

    (26)           CANCELLATION.
After all Principal, accrued Interest and other amounts at           any time owed on
this Note have been paid in full, this Note shall automatically           be deemed
canceled, shall be surrendered to the Company for cancellation and           shall not be
reissued.  

    (27)           WAIVER
OF NOTICE. To the extent permitted by law, the Company hereby           waives
demand, notice, protest and all other demands and notices in connection           with
the delivery, acceptance, performance, default or enforcement of this Note           and
the Securities Purchase Agreement.  

    (28)           GOVERNING
LAW; JURISDICTION; SEVERABILITY; JURY TRIAL. This Note shall be           construed
and enforced in accordance with, and all questions concerning the           construction,
validity, interpretation and performance of this Note 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. The Company hereby           irrevocably
submits to the exclusive jurisdiction of the state and federal           courts sitting
in The City of New York, Borough of Manhattan, for the           adjudication of any
dispute hereunder or in connection herewith or with any           transaction
contemplated hereby or discussed herein, and hereby irrevocably           waives, and
agrees not to assert in any suit, action or proceeding, any claim           that it is
not personally subject to the jurisdiction of any such court, that           such suit,
action or proceeding is brought in an inconvenient forum or that the           venue of
such suit, action or proceeding is improper. Nothing contained herein           shall be
deemed to limit in any way any right to serve process in any manner           permitted
by law. In the event that any provision of this Note is invalid or
          unenforceable under any applicable statute or rule of law, then such provision
          shall be deemed inoperative to the extent that it may conflict therewith and
          shall be deemed modified to conform with such statute or rule of law. Any such
          provision which may prove invalid or unenforceable under any law shall not
          affect the validity or enforceability of any other provision of this Note.
          Nothing contained herein shall be deemed or operate to preclude the Holder from
          bringing suit or taking other legal action against the Company in any other
          jurisdiction to collect on the Company’s obligations to the Holder, to
          realize on any collateral or any other security for such obligations, or to
          enforce a judgment or other court ruling in favor of the Holder. THE COMPANY
          HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A
          JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
          OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY. 

27 

    (29)           CERTAIN
DEFINITIONS. For purposes of this Note, the following terms shall           have the
following meanings:  

    
    (a)                     “Approved
Stock Plan” means any employee benefit plan which has           been or
hereafter is approved by the Board of Directors of the Company, pursuant           to
which the Company’s securities may be issued to any employee, officer or
          director for services provided to the Company.  

    
    (b)                     “Available
Conversion/Redemption Amount” means 100% of the           aggregate dollar
trading volume (as reported on Bloomberg) of the Common Stock           on the Principal
Market over the thirty (30) consecutive day period immediately           prior to the
Holder Optional Conversion/Redemption Notice Date.  

    

    (c)           
“Average Market Price” means, for any given date, the lesser of
(i) the arithmetic average of the lowest Weighted Average Price of the Common
Stock during the thirty (30) consecutive Trading Days ending on the Trading Day
immediately prior to such given date (the “Measuring Period”)
and (ii) the arithmetic average of the Weighted Average Price of the Common
Stock of the three (3) Trading Days with the lowest Weighted Average Price of
the Common Stock during the period commencing on the Closing Date (as defined in
the September Securities Purchase Agreement) and ending on such given date;
provided, that all such determinations shall be appropriately adjusted for any
stock split, stock dividend, stock combination or other similar transaction that
proportionately decreases or increases the Common Stock during such periods.

    
    (d)                     “Bloomberg” means
Bloomberg Financial Markets.  

    
    (e)                     “Business
Day” means any day other than Saturday, Sunday or           other day on which
commercial banks in The City of New York are authorized or           required by law to
remain closed.  

    
    (f)                     “Calendar
Quarter” means each of: the period beginning on and           including January
1 and ending on and including March 31; the period beginning           on and including
April 1 and ending on and including June 30; the period           beginning on and
including July 1 and ending on and including September 30; and           the period
beginning on and including October 1 and ending on and including           December 31.  

    
    (g)                     “Change
of Control” means any Fundamental Transaction other           than (A) any
reorganization, recapitalization or reclassification of the Common           Stock, in
which holders of the Company’s voting power immediately prior to           such
reorganization, recapitalization or reclassification continue after such
          reorganization, recapitalization or reclassification to hold publicly traded
          securities and, directly or indirectly, the voting power of the surviving
entity           or entities necessary to elect a majority of the members of the board of
          directors (or their equivalent if other than a corporation) of such entity or
          entities, or (B) pursuant to a migratory merger effected solely for the purpose
          of changing the jurisdiction of incorporation of the Company.  

28 

    
    (h)                     “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 Principal Market, as           reported by
Bloomberg, or, if the Principal 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 4:00:00 p.m., New York Time, as reported           by
Bloomberg, or, if the Principal 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 the Holder. If the Company and the Holder are unable to agree
          upon the fair market value of such security, then such dispute shall be
resolved           pursuant to Section 24. All such determinations to be appropriately
adjusted for           any stock dividend, stock split, stock combination or other
similar transaction           during the applicable calculation period.  

    
    (i)                     “Closing
Date” shall have the meaning set forth in the           Securities Purchase
Agreement which corresponds to the date this Note and the           Other Notes were
initially issued pursuant to the terms of the Securities           Purchase Agreement.  

    
    (j)           
         “Collateral Agent” has the meaning ascribed to such term in the Securities Purchase Agreement.  

    
    (k)                     “Consolidated
Net Interest Expense” means, for any applicable           period, gross interest
expense of the Company and its Subsidiaries for such           period less interest
income for such period, each determined on a consolidated           basis and in
accordance with GAAP.  

    
    (l)                     “Consolidated
Net Income” means, for any applicable period, the           net income (loss) of
the Company and its Subsidiaries for such period,           determined on a consolidated
basis and in accordance with GAAP, but excluding           from the determination of
Consolidated Net Income (without duplication)           (a) any extraordinary or non
recurring gains or losses or gains or losses           from dispositions, (b) restructuring
charges, (c) any tax refunds, net           operating losses or other net tax
benefits and (d) effects of discontinued           operations.  

    
    (m)                     “Contingent
Obligation” means, as to any Person, any direct or           indirect liability,
contingent or otherwise, of that Person with respect to any           indebtedness,
lease, dividend or other obligation of another Person if the           primary purpose or
intent of the Person incurring such liability, or the primary           effect thereof,
is to provide assurance to the obligee of such liability that           such liability
will be paid or discharged, or that any agreements relating           thereto will be
complied with, or that the holders of such liability will be           protected (in
whole or in part) against loss with respect thereto.  

29 

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

    
    (o)                     “EBITDA” means,
with respect to any Person and its Subsidiaries           for any applicable Fiscal
Quarters, the Consolidated Net Income of such Person           and its Subsidiaries as
set forth in the financial statements of the Company           contained in the Form 10-Q
or Form 10-K of the Company for the applicable Fiscal           Quarter, plus without
duplication, the sum of the following           amounts of the Company and its
Subsidiaries for such period to the extent           deducted in determining Consolidated
Net Income of such Persons for such period:           (i) Consolidated Net Interest
Expense, (ii) income tax expense, (iii)           depreciation expense and (iv)
amortization expense.  

    
    (p)                     “Eligible
Market” means the Principal Market, The New York           Stock Exchange, Inc.,
the American Stock Exchange, The NASDAQ Global Select           Market, The NASDAQ Global
Market or The NASDAQ Capital Market, or any market           that is a successor to any
of the foregoing.  

    
    (q)                     “Equity
Conditions” means that each of the following conditions           is satisfied:
(i) on each day during the period beginning six (6) month prior to           the
applicable date of determination and ending on and including the applicable
          date of determination (the “Equity Conditions Measuring           Period”),
either (x) the Registration Statement filed pursuant to the           Registration Rights
Agreement shall be effective and available for the resale of           all remaining
Registrable Securities in accordance with the terms of the           Registration Rights
Agreement and there shall not have been any Grace Periods           (as defined in the
Registration Rights Agreement) or (y) all shares of Common           Stock issuable upon
conversion of the Notes and exercise of the Warrants shall           be eligible for sale
without restriction and without the need for registration           under any applicable
federal or state securities laws; (ii) on each day during           the Equity Conditions
Measuring Period, the Common Stock is designated for           quotation on the Principal
Market or any other Eligible Market and shall not           have been suspended from
trading on such exchange or market (other than           suspensions of not more than two
(2) days and occurring prior to the applicable           date of determination due to
business announcements by the Company) nor shall           delisting or suspension by
such exchange or market been threatened or pending           either (A) in writing by
such exchange or market or (B) by falling below the           then effective minimum
listing maintenance requirements of such exchange or           market; (iii) during the
one (1) year period ending on and including the date           immediately preceding the
applicable date of determination, the Company shall           have delivered shares of
Common Stock upon conversion of the Notes and upon           exercise of the Warrants to
the holders on a timely basis as set forth in           Section 3(c)(ii) hereof (and
analogous provisions under the Other Notes) and           Section 1(a) of the Warrants;
(iv) any applicable shares of Common Stock to be           issued in connection with the
event requiring determination may be issued in           full without violating (A)
Section 3(d)(i) hereof, (B) Section 3(d)(ii) and (C)           the rules or regulations
of the Principal Market or any applicable Eligible           Market; (v) the Company
shall not have failed to timely make any payments within           five (5) Business Days
of when such payment is due pursuant to any Transaction           Document; (vi) during
the Equity Conditions Measuring Period, there shall not           have occurred either
(A) the public announcement of a pending, proposed or           intended Fundamental
Transaction which has not been abandoned, terminated or           consummated, or (B) an
Event of Default or (C) an event that with the passage of           time or giving of
notice would constitute an Event of Default; (vii) the Company           shall have no
knowledge of any fact that would cause (x) the Registration           Statements required
pursuant to the Registration Rights Agreement not to be           effective and available
for the resale of all remaining Registrable Securities           in accordance with the
terms of the Registration Rights Agreement or (y) any           shares of Common Stock
issuable upon conversion of the Notes and shares of           Common Stock issuable upon
exercise of the Warrants not to be eligible for sale           without restriction
pursuant to Rule 144(k) and any applicable state securities           laws; and (viii)
the Company otherwise shall have been in compliance with and           shall not have
breached any provision, covenant, representation or warranty of           any Transaction
Document.  

30 

    
    (r)                     “Equity
Conditions Failure” means that (i) on any day during           the period
commencing ten (10) Trading Days prior to the applicable Interest           Notice Date
through the applicable Interest Date and (ii) on any day during the           period
commencing ten (10) Trading Days prior to the applicable Holder Optional
          Conversion/Redemption Notice Date through the applicable Optional
          Conversion/Redemption Date, the Equity Conditions have not been satisfied (or
          waived in writing by the Holder).  

    
    (s)                     “Equity
Value Redemption Premium” means for any Change of           Control Notice or
Event of Default Notice, as applicable, delivered or required           to be delivered
in connection with a Change of Control or Event of Default, as           applicable,
150%.  

    
    (t)                     “Excluded
Securities” means any Common Stock issued or           issuable: (i) in
connection with any Approved Stock Plan; (ii) upon conversion           of the Notes or
the exercise of the Warrants; (iii) in connection with the           payment of any
Interest Shares on the Notes; and (iv) upon exercise of any           Options or
Convertible Securities which are outstanding on the day immediately           preceding
the Subscription Date, provided that the terms of such Options or           Convertible
Securities are not amended, modified or changed on or after the           Subscription
Date.  

    
    (u)                     “Financial
Milestones” means:  

    
    
    (i)           
 $3.0 million of Net Revenues and $500,000 of EBITDA reported for the three
month period ended March 31, 2008;

  

    
    
    (ii)                     $6.0
million of Net Revenues and $1 million of EBITDA reported for the six month
          period ended June 30, 2008;  

    
    
    (iii)                     $15.5
million of Net Revenues and $2.5 million of EBITDA reported for the twelve
          month period ended December 31, 2008;  

    
    
    (iv)                     $12.0
million of Net Revenues and $4.0 million of EBITDA reported for the six           month
period ended June 30, 2009; and  

    
    
    (v)                     $25.0
million of Net Revenues and $8.5 million of EBITDA reported for the twelve
          month period ended December 31, 2009.  

    
    (v)                     “Fiscal
Quarters” means each of the fiscal quarters adopted by           the Company for
financial reporting purposes that correspond to the           Company’s fiscal year
that ends on December 31, or such other fiscal           quarter adopted by the Company
for financial reporting purposes in accordance           with GAAP.  

31 

    
    (w)                     “Fundamental
Transaction” means that the Company shall,           directly or indirectly, in
one or more related transactions, (i) consolidate or           merge with or into
(whether or not the Company is the surviving corporation)           another Person or
Persons, if the holders of the Voting Stock (not including any           shares of Voting
Stock held by the Person or Persons making or party to, or           associated or
affiliated with the Persons making or party to, such consolidation           or merger)
immediately prior to such consolidation or merger shall hold or have           the right
to direct the voting of less than 50% of the Voting Stock or such           voting
securities of such other surviving Person immediately following such
          transaction, or (ii) sell, assign, transfer, convey or otherwise dispose of all
          or substantially all of the properties or assets of the Company to another
          Person, or (iii) allow another Person to make a purchase, tender or exchange
          offer that is accepted by the holders of more than the 50% of the outstanding
          shares of Voting Stock (not including any shares of Voting Stock held by the
          Person or Persons making or party to, or associated or affiliated with the
          Persons making or party to, such purchase, tender or exchange offer), or (iv)
          consummate a stock purchase agreement or other business combination (including,
          without limitation, a reorganization, recapitalization, spin-off or scheme of
          arrangement) with another Person whereby such other Person acquires more than
          the 50% of the outstanding shares of Voting Stock (not including any shares of
          Voting Stock held by the other Person or other Persons making or party to, or
          associated or affiliated with the other Persons making or party to, such stock
          purchase agreement or other business combination), (v) reorganize, recapitalize
          or reclassify its Common Stock or (vi) any “person” or
          “group” (as these terms are used for purposes of Sections 13(d) and
          14(d) of the Exchange Act) is or shall become the “beneficial owner”          (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of           50%
of the aggregate Voting Stock of the Company.  

    
    (x)                     “GAAP” means
United States generally accepted accounting           principles, consistently applied.  

    
    (y)                     “Holder
Pro Rata Amount” means a fraction (i) the numerator of           which is the
Principal amount of this Note on the applicable Closing Date and           (ii) the
denominator of which is the aggregate principal amount of all Notes           issued to
the initial purchasers pursuant to the Securities Purchase Agreement           on the
applicable Closing Date.  

    
    (z)                     “Indebtedness” of
any Person means, without duplication (i) all           indebtedness for borrowed money,
(ii) all obligations issued, undertaken or           assumed as the deferred purchase
price of property or services, including           (without limitation) “capital
leases” in accordance with GAAP (other           than trade payables entered into in
the ordinary course of business), (iii) all           reimbursement or payment
obligations with respect to letters of credit, surety           bonds and other similar
instruments, (iv) all obligations evidenced by notes,           bonds, debentures or
similar instruments, including obligations so evidenced           incurred in connection
with the acquisition of property, assets or businesses,           (v) all indebtedness
created or arising under any conditional sale or other           title retention
agreement, or incurred as financing, in either case with respect           to any
property or assets acquired with the proceeds of such indebtedness (even           though
the rights and remedies of the seller or bank under such agreement in the           event
of default are limited to repossession or sale of such property), (vi) all
          monetary obligations under any leasing or similar arrangement which, in
          connection with GAAP, consistently applied for the periods covered thereby, is
          classified as a capital lease, (vii) all indebtedness referred to in clauses
(i)           through (vi) above secured by (or for which the holder of such Indebtedness
has           an existing right, contingent or otherwise, to be secured by) any mortgage,
          lien, pledge, charge, security interest or other encumbrance upon or in any
          property or assets (including accounts and contract rights) owned by any
Person,           even though the Person which owns such assets or property has not
assumed or           become liable for the payment of such indebtedness, and (viii) all
Contingent           Obligations in respect of indebtedness or obligations of others of
the kinds           referred to in clauses (i) through (vii) above.  

32 

    
    (aa)                     “Interest
Conversion Price” means, with respect to any Interest           Date that price
which shall be the price computed as 85% of the Average Market           Price
immediately preceding the applicable Interest Date (each, an “Interest Measuring
Period”). All such determinations to be           appropriately adjusted for any
stock split, stock dividend, stock combination or           other similar transaction
that proportionately decreases or increases the Common           Stock during the
applicable Interest Measuring Period.  

    
    (bb)                     “Interest
Notice Due Date” means the sixteenth           (16th) Trading Day
prior to the applicable Interest Date.  

    
    (cc)                     “InterestRate” means,
ten percent (10.0%) per annum,           subject to adjustment as set forth in Section 2
hereof.  

    
    (dd)                     “Net
Revenue” means the consolidated net revenue of a Company           and its
Subsidiaries calculated in accordance with US GAAP and all applicable           laws, as
historically applied by the Company and its Subsidiaries, including,           without
limitation, such reductions for all pricing discounts and allowances,           credits,
allowances, returns and refunds, promotions, fraud losses, freight,           shipping,
insurance, broker fees, revenue-based fees, other fees, sales taxes,           value
added taxes and other taxes.  

    
    (ee)                     “Optional
Conversion Price” means, the lower of (i) the           applicable Conversion
Price and (ii) that price which shall be computed as 75%           of the Average Market
Price ending on the Trading Day immediately prior to the           Optional
Conversion/Redemption Date. All such determinations shall be           appropriately
adjusted for any stock split, stock dividend, stock combination           during or other
similar transaction that proportionately decreases or increases           the price of
the Common Stock during the applicable period during which the           Average Market
Price is calculated.  

    
    (ff)                     “Optional
Conversion Volume Limitation” means 20% of the           aggregate dollar
trading volume (as reported on Bloomberg) of the Common Stock           on the Principal
Market over the twenty (20) consecutive Trading Day period           immediately prior to
the applicable Optional Conversion/Redemption Notice Date.  

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

    
    (hh)                     “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.  

33 

    
    (ii)                     “Permitted
Indebtedness” means (i) Indebtedness incurred by the           Company that is
made expressly subordinate in right of payment to the           Indebtedness evidenced by
this Note, as reflected in a written agreement           acceptable to the Holder and
approved by the Holder in writing, and which           Indebtedness does not provide at
any time for (1) the payment, prepayment,           repayment, repurchase or defeasance,
directly or indirectly, of any principal or           premium, if any, thereon until
ninety-one (91) days after the Maturity Date or           later and (2) total interest
and fees at a rate in excess of the initial           Interest Rate per annum (such
Indebtedness, the “Subordinated           Indebtedness”); provided,
however, that any Subordinated Indebtedness           incurred in connection with the
repayment of the Notes in full shall not be           limited by clause (2) of the
foregoing, (ii) Indebtedness secured by Permitted           Liens, (iii) Indebtedness
under this Note and the Other Notes, (iv) Indebtedness           under the September 2007
Notes, and (v) extensions, refinancings and renewals of           any items in clauses
(i) through (ii) above, provided that the principal amount           is not increased or
the terms modified to impose more burdensome terms upon the           Company or its
Subsidiaries, as the case may be.  

    
    
(jj)                     “Permitted
Liens” means (i) any Lien for taxes not yet due or           delinquent or being
contested in good faith by appropriate proceedings for which           adequate reserves
have been established in accordance with GAAP, (ii) any           statutory Lien arising
in the ordinary course of business by operation of law           with respect to a
liability that is not yet due or delinquent, (iii) any Lien           created by
operation of law, such as materialmen’s liens, mechanics’          liens and
other similar liens, arising in the ordinary course of business with           respect to
a liability that is not yet due or delinquent or that are being           contested in
good faith by appropriate proceedings, (iv) Liens (A) upon or in           any equipment
(as defined in the Security Agreement) acquired or held by the           Company or any
of its Subsidiaries to secure the purchase price of such           equipment or
indebtedness incurred solely for the purpose of financing the           acquisition or
lease of such equipment, or (B) existing on such equipment at the           time of its
acquisition, provided that the Lien is confined solely to the           property so
acquired and improvements thereon, and the proceeds of such           equipment, (v)
Liens incurred in connection with the extension, renewal or           refinancing of the
indebtedness secured by Liens of the type described in           clauses (i) and (iv)
above, provided that any extension, renewal or replacement           Lien shall be
limited to the property encumbered by the existing Lien and the           principal
amount of the Indebtedness being extended, renewed or refinanced does           not
increase, (vi) Liens securing the Company’s obligations under the
          September 2007 Notes; (vi) Liens securing the Company’s obligations under
          the Notes; (viii) leases or subleases and licenses and sublicenses granted to
          others in the ordinary course of the Company’s business, not interfering
in           any material respect with the business of the Company and its Subsidiaries
taken           as a whole, (ix) Liens in favor of customs and revenue authorities
arising           as a matter of law to secure payments of custom duties in connection
with the           importation of goods, and (x) Liens arising from judgments, decrees or
          attachments in circumstances not constituting an Event of Default under Section
          4(a)(viii).  

    
    (kk)                     “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.  

34 

    
    (ll)                     “Principal
Market” means the OTB Bulletin Board.  

    
    (mm)                     “Redemption
Notices” means, collectively, any Event of Default           Redemption Notices,
any Change of Control Redemption Notices, any Optional           Redemption Notices and
any Company Conversion/Redemption Notice (if a Company           Optional Redemption has
been elected), each of the foregoing, individually, a           Redemption Notice.  

    
    (nn)                     “Redemption
Premium” means (i) in the case of the Events of           Default described in
Section 4(a)(i) — (vi) and (ix) — (xvi), 125% or           (ii) in the case of
the Events of Default described in Section 4(a)(vii) —          (viii), 100%.  

    
    (oo)                     “Redemption
Prices” means, collectively, the Event of Default           Redemption Price,
the Change of Control Redemption Price, the Optional           Redemption Price and the
Company Optional Redemption Price, each of the           foregoing, individually, a
Redemption Price.  

    
    (pp)                     “Registration
Rights Agreement” means that certain Registration           Rights Agreement
dated as of the Issuance Date by and among the Company and           the initial
holders of the Notes.  

    
    (qq)                     “Required
Holders” means the holders of Notes representing at           least majority of
the aggregate principal amount of the Notes then outstanding.  

    
    (rr)                     “SEC” means
the United States Securities and Exchange           Commission.  

    
    (ss)                     “Securities
Purchase Agreement” means that certain securities           purchase agreement
dated as of the Subscription Date by and among the Company           and the initial
holders of the Notes pursuant to which the Company issued the           Notes and
Warrants.  

    
    (tt)           
“September 2007 Notes” means those certain senior secured
convertible notes issued under the  September Securities Purchase Agreement.

    
    (uu)            
“September
Securities Purchase Agreement” means that certain Securities Purchase Agreement,
dated as of August 31, 2007, by and among the Company and the investors listed on the
Schedule of Buyers attached thereto.  

    
    (vv)           
“Subscription Date” means February 20, 2008. 

    

    (ww)           
“Subsidiary” means any entity in which the Company, directly or
indirectly, owns any of the capital stock or holds an equity or similar
interest. 

    
    (xx)                     “Successor
Entity” means the Person, which may be the Company,           formed by,
resulting from or surviving any Fundamental Transaction or the Person           with
which such Fundamental Transaction shall have been made, provided that if           such
Person is not a publicly traded entity whose common stock or equivalent           equity
security is quoted or listed for trading on an Eligible Market, Successor
          Entity shall mean such Person’s Parent Entity.  

35 

    
    (yy)                     “Trading
Day” means any day on which the Common Stock is traded           on the
Principal Market, or, if the Principal Market is not the principal           trading
market for the Common Stock, then on the principal securities exchange           or
securities market on which the Common Stock is then traded; provided that           “Trading
Day” shall not include any day on which the Common Stock is           scheduled to
trade on such exchange or market for less than 4.5 hours or any day           that the
Common Stock is suspended from trading during the final hour of trading           on such
exchange or market (or if such exchange or market does not designate in           advance
the closing time of trading on such exchange or market, then during the           hour
ending at 4:00:00 p.m., New York Time).  

    
    (zz)                     “Voting
Stock” of a Person means capital stock of such Person           of the class or
classes pursuant to which the holders thereof have the general           voting power to
elect, or the general power to appoint, at least a majority of           the board of
directors, managers or trustees of such Person (irrespective of           whether or not
at the time capital stock of any other class or classes shall           have or might
have voting power by reason of the happening of any contingency).  

    
    (aaa)                     “Warrants” has
the meaning ascribed to such term in the           Securities Purchase Agreement, and
shall include all warrants issued in exchange           therefor or replacement thereof.  

    
    (bbb)                     “Weighted
Average Price” means, for any security as of any           date, the dollar
volume-weighted average price for such security on the           Principal Market during
the period beginning at 9:30:01 a.m., New York Time (or           such other time as the
Principal Market publicly announces is the official open           of trading), and
ending at 4:00:00 p.m., New York Time (or such other time as           the Principal
Market publicly announces is the official close of trading) as           reported by
Bloomberg through its “Volume at Price” functions, or, if           the
foregoing does not apply, the dollar volume-weighted average price of such
          security in the over-the-counter market on the electronic bulletin board for
          such security during the period beginning at 9:30:01 a.m., New York Time (or
          such other time as such market publicly announces is the official open of
          trading), and ending at 4:00:00 p.m., New York Time (or such other time as such
          market publicly announces is the official close of trading) as reported by
          Bloomberg, or, if no dollar volume-weighted average price is reported for such
          security by Bloomberg for such hours, the average of the highest closing bid
          price and the lowest closing ask price of any of the market makers for such
          security as reported in the “pink sheets” by Pink Sheets LLC
(formerly           the National Quotation Bureau, Inc.). If the Weighted Average Price
cannot be           calculated for a security on a particular date on any of the
foregoing bases,           the Weighted Average Price of such security on such date shall
be the fair           market value as mutually determined by the Company and the Holder.
If the           Company and the Holder are unable to agree upon the fair market value of
such           security, then such dispute shall be resolved pursuant to Section 24. All
such           determinations to be appropriately adjusted for any stock dividend, stock
split,           stock combination or other similar transaction during the applicable
calculation           period.  

    (30)           DISCLOSURE.
Upon receipt or delivery by the Company of any notice in           accordance with the
terms of this Note, unless the Company has in good faith           determined that the
matters relating to such notice do not constitute material,           nonpublic
information relating to the Company or its Subsidiaries, the Company           shall
within one (1) Business Day after any such receipt or delivery publicly
          disclose such material, nonpublic information on a Current Report on Form 8-K
or           otherwise. In the event that the Company believes that a notice contains
          material, nonpublic information, relating to the Company or its Subsidiaries,
          the Company shall indicate to the Holder contemporaneously with delivery of
such           notice, and in the absence of any such indication, the Holder shall be
allowed           to presume that all matters relating to such notice do not constitute
material,           nonpublic information relating to the Company or its Subsidiaries.  

[Signature Page Follows] 

36 

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

		
		AMISH NATURALS INC.

By:   ____________________________________________

      Name:

      Title:

EXHIBIT I 

AMISH NATURALS INC. 

CONVERSION NOTICE 

Reference is made to the Senior
Secured Convertible Note (the “Note”) issued to the undersigned by Amish
Naturals Inc. (the “Company”). In accordance with and pursuant to the
Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the
Note) of the Note indicated below into shares of Common Stock par value $0.001 per share
(the “Common Stock”) of the Company, as of the date specified below. 

Date of Conversion: 

Aggregate Conversion Amount to be
converted:

                                                                      

Please confirm the following
information: 

Conversion Price: 

Number of shares of Common Stock to
be issued: 

Notwithstanding anything to the
contrary contained herein, this Conversion Notice shall constitute a representation by the
holder submitting this Conversion Notice that, after giving effect to the conversion
provided for in this Conversion Notice, such holder (together with its affiliates) will
not have beneficial ownership (together with the beneficial ownership of such
Person’s affiliates) of a number of shares of Common Stock which exceeds the Maximum
Percentage. 

Please issue the Common Stock into
which the Note is being converted in the following name and to the following address: 

Issue to: 

Facsimile Number: 

Authorization: 

By: 

Title: 

Dated: 

Account Number: 

	 	
(if
electronic book entry transfer) 

Transaction Code Number: 

	 	
(if
electronic book entry transfer) 

ACKNOWLEDGMENT 

        The
Company hereby acknowledges this Conversion Notice and hereby directs American Stock
Transfer and Trust Company. to issue the above indicated number of shares of Common Stock
in accordance with the Transfer Agent Instructions dated February [__], 2008 from the
Company and acknowledged and agreed to by American Stock Transfer and Trust Company. 

		
		AMISH NATURALS INC.

By:__________________________________________________

      Name:

      Title:

Schedule 15(o)  

Post-Closing Collateral
Matters  

         1.       
          No later than fifteen (15) Business Days after the Closing Date, the Company
          shall deliver to the Collateral Agent an account control agreement, in form and
          substance reasonably satisfactory to the Collateral Agent, duly executed by the
          Company and the depositary bank in which such account is maintained for each of
          the accounts listed on Schedule IV of the Security Agreement. 

         2.       
          No later than fifteen (15) Business Days after the Closing Date, the Company
          shall have executed and delivered to the Collateral Agent amended and restated
          first mortgage documentation reasonably satisfactory to the Collateral Agent on
          the property located at 8224 CR 245, Holmsville, Ohio 44633. 

         3.       
          No later than fifteen (15) Business Days after the Closing Date, the Company
          shall have executed and delivered to the Collateral Agent second mortgage
          documentation reasonably satisfactory to the Collateral Agent on the property
          located at 8224 CR 245, Holmsville, Ohio 44633.

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