Document:

EXHIBIT 4.1
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NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

Original Issue Date: December ___, 2005
Original Conversion Price (subject to adjustment herein):  $0.85

                                                                $_______________

                        6% SECURED CONVERTIBLE DEBENTURE
                                DUE DECEMBER 2008

         THIS SECURED DEBENTURE is one of a series of duly authorized and issued
6% Secured Convertible Debentures of CDKNet.com, Inc., a Delaware corporation,
having a principal place of business at 948 US Highway 22, North Plainfield, NJ
07060 (the "Company"), designated as its 6% Secured Convertible Debenture, due
December 2008 (this debenture, the "Debenture" and collectively with the other
such series of debentures, the "Debentures").

         FOR VALUE RECEIVED, the Company promises to pay to ________________ or
its registered assigns (the "Holder"), or shall have paid pursuant to the terms
hereunder, the principal sum of $_______________ by December ___, 2008 (the
"Maturity Date"), or such earlier date as this Debenture is required to be
repaid as provided hereunder, and to pay interest to the Holder on the aggregate
unconverted and then outstanding principal amount of this Debenture in
accordance with the provisions hereof. This Debenture is subject to the
following additional provisions:

         Section 1.  Definitions. For the purposes hereof, in addition to the
terms defined elsewhere in this Debenture: (a) capitalized terms not otherwise
defined herein have the meanings given to such terms in the Purchase Agreement,
and (b) the following terms shall have the following meanings:

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                     "Alternate Consideration" shall have the meaning set forth
         in Section 5(d).

                     "Base Conversion Price" shall have the meaning set forth in
         Section 5(b).

                     "Business Day" means any day except Saturday, Sunday and
         any day which shall be a federal legal holiday in the United States or
         a day on which banking institutions in the State of New York are
         authorized or required by law or other government action to close.

                     "Buy-In" shall have the meaning set forth in Section
         4(d)(v).

                     "Change of Control Transaction" means the occurrence after
         the date hereof of any of (i) an acquisition after the date hereof by
         an individual or legal entity or "group" (as described in Rule
         13d-5(b)(1) promulgated under the Exchange Act) of effective control
         (whether through legal or beneficial ownership of capital stock of the
         Company, by contract or otherwise) of in excess of 40% of the voting
         securities of the Company, or (ii) the Company merges into or
         consolidates with any other Person, or any Person merges into or
         consolidates with the Company and, after giving effect to such
         transaction, the stockholders of the Company immediately prior to such
         transaction own less than 60% of the aggregate voting power of the
         Company or the successor entity of such transaction, or (iii) the
         Company sells or transfers its assets, as an entirety or substantially
         as an entirety, to another Person and the stockholders of the Company
         immediately prior to such transaction own less than 60% of the
         aggregate voting power of the acquiring entity immediately after the
         transaction, (iv) a replacement at one time or within a two year period
         of more than one-half of the members of the Company's board of
         directors which is not approved by a majority of those individuals who
         are members of the board of directors on the date hereof (or by those
         individuals who are serving as members of the board of directors on any
         date whose nomination to the board of directors was approved by a
         majority of the members of the board of directors who are members on
         the date hereof), or (v) the execution by the Company of an agreement
         to which the Company is a party or by which it is bound, providing for
         any of the events set forth above in (i) through (iv).

                     "Common Stock" means the common stock, par value $.0001 per
         share, of the Company and stock of any other class of securities into
         which such securities may hereafter have been reclassified or changed
         into.

                     "Conversion Date" shall have the meaning set forth in
         Section 4(a).

                     "Conversion Price" shall have the meaning set forth in
         Section 4(b).

                     "Conversion Shares" means the shares of Common Stock
         issuable upon conversion of this Debenture or as payment of interest in
         accordance with the terms.

                     "Debenture Register" shall have the meaning set forth in
         Section 2(c).

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                     "Dilutive Issuance" shall have the meaning set forth in
         Section 5(b).

                     "Dilutive Issuance Notice" shall have the meaning set forth
         in Section 5(b).

                     "Effectiveness Period" shall have the meaning given to such
         term in the Registration Rights Agreement.

                     "Equity Conditions" shall mean, during the period in
         question, (i) the Company shall have duly honored all conversions and
         redemptions scheduled to occur or occurring by virtue of one or more
         Notice of Conversions of the Holder, if any, (ii) all liquidated
         damages and other amounts owing to the Holder in respect of this
         Debenture shall have been paid, (iii) there is an effective
         Registration Statement pursuant to which the Holder is permitted to
         utilize the prospectus thereunder to resell all of the shares issuable
         pursuant to the Transaction Documents (and the Company believes, in
         good faith, that such effectiveness will continue uninterrupted for the
         foreseeable future), (iv) the Common Stock is trading on the Trading
         Market and all of the shares issuable pursuant to the Transaction
         Documents are listed for trading on a Trading Market (and the Company
         believes, in good faith, that trading of the Common Stock on a Trading
         Market will continue uninterrupted for the foreseeable future), (v)
         there is a sufficient number of authorized but unissued and otherwise
         unreserved shares of Common Stock for the issuance of all of the shares
         issuable pursuant to the Transaction Documents, (vi) there is then
         existing no Event of Default or event which, with the passage of time
         or the giving of notice, would constitute an Event of Default, (vii)
         the issuance of the shares in question to the Holder would not violate
         the limitations set forth in Section 4(c), (viii) no public
         announcement of a pending or proposed Fundamental Transaction, Change
         of Control Transaction or acquisition transaction has occurred that has
         not been consummated and (ix) for a period of 20 consecutive Trading
         Days prior to the applicable date in question, the daily trading volume
         for the Common Stock on the Trading Market exceeds 100,000 shares per
         Trading Day (subject to adjustment for forward and reverse stock splits
         and the like) in the case of a Forced Conversion pursuant to Section 8.

                     "Event of Default" shall have the meaning set forth in
         Section 8.

                     "Exchange Act" means the Securities Exchange Act of 1934,
         as amended, and the rules and regulations promulgated thereunder.

                     "Forced Conversion" shall have the meaning set forth in
         Section 6(c).

                     "Forced Conversion Date" shall have the meaning set forth
         in Section 6(c).

                     "Forced Conversion Notice" shall have the meaning set forth
         in Section 6(c).

                     "Forced Conversion Notice Date" shall have the meaning set
         forth in Section 6(c).

                     "Fundamental Transaction" shall have the meaning set forth
         in Section 5(d).

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                     "Interest Conversion Rate" means 85% of the lesser of (i)
         the average of the VWAPs for the 10 consecutive Trading Days ending on
         the Trading Day that is immediately prior to the applicable Interest
         Payment Date or (ii) the average of the VWAPs for the 10 consecutive
         Trading Days ending on the Trading Day that is immediately prior to the
         date the applicable interest payment shares are issued and delivered if
         after the Interest Payment Date.

                     "Interest Notice Period" shall have the meaning set forth
         in Section 2(a).

                     "Interest Payment Date" shall have the meaning set forth in
         Section 2(a).

                     "Interest Share Amount" shall have the meaning set forth in
         Section 2(a).

                     "Late Fees" shall have the meaning set forth in Section
         2(d).

                     "Mandatory Default Amount" shall equal the sum of (i) the
         greater of: (A) 130% of the principal amount of this Debenture to be
         prepaid, plus all accrued and unpaid interest thereon, or (B) the
         principal amount of this Debenture to be prepaid, plus all other
         accrued and unpaid interest hereon, divided by the Conversion Price on
         (x) the date the Mandatory Default Amount is demanded or otherwise due
         or (y) the date the Mandatory Default Amount is paid in full, whichever
         is less, multiplied by the average of the 15 VWAPs immediately prior to
         (x) the date the Mandatory Default Amount is demanded or otherwise due
         or (y) the date the Mandatory Default Amount is paid in full, whichever
         is greater, and (ii) all other amounts, costs, expenses and liquidated
         damages due in respect of this Debenture.

                     "New York Courts" shall have the meaning set forth in
         Section 9(d).

                     "Notice of Conversion" shall have the meaning set forth in
         Section 4(a).

                     "Optional Redemption" shall have the meaning set forth in
         Section 6(a).

                     "Optional Redemption Amount" shall mean the sum of (i) 120%
         of that portion of the principal amount of the Debenture being redeemed
         pursuant to Section 6(a), (ii) accrued but unpaid interest on such
         portion and (iii) all liquidated damages and other amounts due in
         respect of the Debenture.

                     "Optional Redemption Date" shall have the meaning set forth
         in Section 6(a).

                     "Optional Redemption Notice" shall have the meaning set
         forth in Section 6(a).

                     "Optional Redemption Notice Date" shall have the meaning
         set forth in Section 6(a).

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                     "Original Issue Date" shall mean the date of the first
         issuance of the Debentures regardless of the number of transfers of any
         Debenture and regardless of the number of instruments which may be
         issued to evidence such Debenture.

                     "Permitted Indebtedness" shall mean (a) the Indebtedness
         existing on the Original Issue Date and set forth on Schedule 3.1(gg)
         attached to the Purchase Agreement, (b) lease obligations and purchase
         money Indebtedness of up to $100,000, in the aggregate, incurred in
         connection with the acquisition of capital assets and lease obligations
         with respect to newly acquired or leased assets, (c) Indebtedness
         incurred pursuant to the Transaction Documents, (d) unsecured accounts
         payable incurred in the ordinary course of business, (e) indebtedness
         with respect to taxes, governmental changes or levies which are being
         contested in good faith, provided that adequate reserves are maintained
         on the books of the Company or Subsidiaries, as the case may be, in
         accordance with GAAP and (f) up to $1,000,000 of additional
         Indebtedness incurred by the Company in connection with raising capital
         for the acquisition of another entity (by merger, consolidation, the
         acquisition of all or substantially of the assets of such entity or
         similar transaction), provided that in the case of (b) and (c) above,
         such Indebtedness does not mature or require payments of principal
         prior to the Maturity Date and is made expressly subordinate in right
         of payment to the Indebtedness evidenced by this Debenture, as
         reflected in a written agreement reasonably acceptable to, and approved
         by, the Purchasers in writing.

                     "Permitted Lien" shall mean the individual and collective
         reference to the following: (a) Liens for taxes, assessments and other
         governmental charges or levies not yet due or Liens for taxes,
         assessments and other governmental charges or levies being contested in
         good faith and by appropriate proceedings for which adequate reserves
         (in the good faith judgment of the management of the Company) have been
         established in accordance with GAAP, (b) Liens prior to the Original
         Issue Date as set forth on the Disclosure Schedules, (c) Liens granted
         in connection with clauses (b) and (c) under Permitted Indebtedness
         (provided, in the case of clause (b) such Liens are not secured by
         assets of the Company or its Subsidiaries other than the assets so
         leased or acquired), and (d) Liens imposed by law which were incurred
         in the ordinary course of business, such as carriers', warehousemen's
         and mechanics' Liens, statutory landlords' Liens, and other similar
         Liens arising in the ordinary course of business, and (x) which do not
         individually or in the aggregate materially detract from the value of
         such property or assets or materially impair the use thereof in the
         operation of the business of the Company and its consolidated
         Subsidiaries or (y) which are being contested in good faith by
         appropriate proceedings, which proceedings have the effect of
         preventing the forfeiture or sale of the property or asset subject to
         such Lien.

                     "Person" means a corporation, an association, a
         partnership, organization, a business, an individual, a government or
         political subdivision thereof or a governmental agency.

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                     "Purchase Agreement" means the Securities Purchase
         Agreement, dated as of December 28, 2005 to which the Company and the
         original Holder are parties, as amended, modified or supplemented from
         time to time in accordance with its terms.

                     "Registration Rights Agreement" means the Registration
         Rights Agreement, dated as of the date of the Purchase Agreement, to
         which the Company and the original Holder are parties, as amended,
         modified or supplemented from time to time in accordance with its
         terms.

                     "Registration Statement" means a registration statement
         meeting the requirements set forth in the Registration Rights
         Agreement, covering among other things the resale of the Conversion
         Shares and naming the Holder as a "selling stockholder" thereunder.

                     "Securities Act" means the Securities Act of 1933, as
         amended, and the rules and regulations promulgated thereunder.

                     "Subsidiary" shall have the meaning given to such term in
         the Purchase Agreement.

                     "Threshold Period" shall have the meaning given to such
         term in Section 6(c).

                     "Trading Day" means a day on which the Common Stock is
         traded on a Trading Market.

                     "Trading Market" means the following markets or exchanges
         on which the Common Stock is listed or quoted for trading on the date
         in question: the Nasdaq SmallCap Market, the American Stock Exchange,
         the New York Stock Exchange, the Nasdaq National Market or the OTC
         Bulletin Board.

                     "Transaction Documents" shall have the meaning set forth in
         the Purchase Agreement.

                     "VWAP" means, for any date, the price determined by the
         first of the following clauses that applies: (a) if the Common Stock is
         then listed or quoted on a Trading Market, the daily volume weighted
         average price of the Common Stock for such date (or the nearest
         preceding date) on the Trading Market on which the Common Stock is then
         listed or quoted as reported by Bloomberg Financial L.P. (based on a
         Trading Day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time); (b)
         if the Common Stock is not then listed or quoted on a Trading Market
         and if prices for the Common Stock are then reported in the "Pink
         Sheets" published by the Pink Sheets, LLC (or a similar organization or
         agency succeeding to its functions of reporting prices), the most
         recent bid price per share of the Common Stock so reported; or (c) in
         all other cases, the fair market value of a share of Common Stock as
         determined by an independent appraiser selected in good faith by the
         Holder and reasonably acceptable to the Company.

         Section 2.  Interest.

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                     a) Payment of Interest in Cash or Kind. The Company shall
         pay interest to the Holder on the aggregate unconverted and then
         outstanding principal amount of this Debenture at the rate of 6% per
         annum, payable semiannually on January 1 and July 1, beginning on July
         1, 2006, on each Optional Redemption Date (as to that principal amount
         being redeemed) and on the Maturity Date (except that, if any such date
         is not a Business Day, then such payment shall be due on the next
         succeeding Business Day) (each such date, an "Interest Payment Date"),
         in cash or duly authorized, fully paid and non-assessable shares of
         Common Stock at the Interest Conversion Rate, or a combination thereof
         (the amount to be paid in shares, the "Interest Share Amount");
         provided, however, payment in shares of Common Stock may only occur if
         during the 20 Trading Days immediately prior to the applicable Interest
         Payment Date (the "Interest Notice Period") and through and including
         the date such shares of Common Stock are issued to the Holder all of
         the Equity Conditions, unless waived by the Holder in writing, have
         been met and the Company shall have given the Holder notice in
         accordance with the notice requirements set forth below.

                     b) Company's Election to Pay Interest in Kind. Subject to
         the terms and conditions herein, the decision whether to pay interest
         hereunder in shares of Common Stock or cash shall be at the sole
         discretion of the Company. Prior to the commencement of an Interest
         Notice Period, the Company shall provide the Holder with written notice
         of its election to pay interest hereunder on the applicable Interest
         Payment Date either in cash, shares of Common Stock or a combination
         thereof (the Company may indicate in such notice that the election
         contained in such notice shall continue for later periods until
         revised) and the Interest Share Amount as to the applicable Interest
         Payment Date. During any Interest Notice Period, the Company's election
         (whether specific to an Interest Payment Date or continuous) shall be
         irrevocable as to such Interest Payment Date. Subject to the
         aforementioned conditions, failure to timely provide such written
         notice shall be deemed an election by the Company to pay the interest
         on such Interest Payment Date in cash. At any time the Company delivers
         a notice to the Holder of its election to pay the interest in shares of
         Common Stock, the Company shall file a prospectus supplement pursuant
         to Rule 424 disclosing such election.

                     c) Interest Calculations. Interest shall be calculated on
         the basis of a 360-day year and shall accrue daily commencing on the
         Original Issue Date until payment in full of the principal sum,
         together with all accrued and unpaid interest and other amounts which
         may become due hereunder, has been made. Payment of interest in shares
         of Common Stock shall otherwise occur pursuant to Section 4(d)(ii) and
         only for purposes of the payment of interest in shares, the Interest
         Payment Date shall be deemed the Conversion Date. Interest shall cease
         to accrue with respect to any principal amount converted, provided that
         the Company in fact delivers the Conversion Shares within the time
         period required by Section 4(d)(ii). Interest hereunder will be paid to
         the Person in whose name this Debenture is registered on the records of
         the Company regarding registration and transfers of this Debenture (the
         "Debenture Register"). Except as otherwise provided herein, if at any
         time the Company pays interest partially in cash and partially in
         shares of Common Stock to the holders of the Debentures, then such
         payment

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         shall be distributed ratably among the holders of the Debentures based
         on their (or their predecessor's initial purchases of Debentures
         pursuant to the Purchase Agreement.

                     d) Late Fee. All overdue accrued and unpaid interest to be
         paid hereunder shall entail a late fee at the rate of 18% per annum (or
         such lower maximum amount of interest permitted to be charged under
         applicable law) ("Late Fees") which will accrue daily, from the date
         such interest is due hereunder through and including the date of
         payment. Notwithstanding anything to the contrary contained herein, if
         on any Interest Payment Date the Company has elected to pay interest in
         Common Stock and is not able to pay accrued interest in the form of
         Common Stock because it does not then satisfy the conditions for
         payment in the form of Common Stock set forth above, then, at the
         option of the Holder, the Company, in lieu of (and in full satisfaction
         of) delivering either shares of Common Stock pursuant to this Section 2
         or paying the regularly scheduled cash interest payment, shall deliver,
         within three Trading Days of each applicable Interest Payment Date, an
         amount in cash equal to the product of the number of shares of Common
         Stock otherwise deliverable to the Holder in connection with the
         payment of interest due on such Interest Payment Date and the highest
         VWAP during the period commencing on the Interest Payment Date and
         ending on the Trading Day prior to the date such payment is made.

                     e) Prepayment. Except as otherwise set forth in this
         Debenture, the Company may not prepay any portion of the principal
         amount of this Debenture without the prior written consent of the
         Holder.

         Section 3.  Registration of Transfers and Exchanges.

                     a) Different Denominations. This Debenture is exchangeable
         for an equal aggregate principal amount of Debentures of different
         authorized denominations, as requested by the Holder surrendering the
         same. No service charge will be made for such registration of transfer
         or exchange.

                     b) Investment Representations. This Debenture has been
         issued subject to certain investment representations of the original
         Holder set forth in the Purchase Agreement and may be transferred or
         exchanged only in compliance with the Purchase Agreement and applicable
         federal and state securities laws and regulations.

                     c) Reliance on Debenture Register. Prior to due presentment
         to the Company for transfer of this Debenture, the Company and any
         agent of the Company may treat the Person in whose name this Debenture
         is duly registered on the Debenture Register as the owner hereof for
         the purpose of receiving payment as herein provided and for all other
         purposes, whether or not this Debenture is overdue, and neither the
         Company nor any such agent shall be affected by notice to the contrary.

         Section 4.  Conversion.

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                     a) Voluntary Conversion. At any time after the Original
         Issue Date until this Debenture is no longer outstanding, this
         Debenture shall be convertible into shares of Common Stock at the
         option of the Holder, in whole or in part at any time and from time to
         time (subject to the limitations on conversion set forth in Section
         4(c) hereof). The Holder shall effect conversions by delivering to the
         Company the form of Notice of Conversion attached hereto as Annex A (a
         "Notice of Conversion"), specifying therein the principal amount of
         this Debenture to be converted and the date on which such conversion is
         to be effected (a "Conversion Date"). If no Conversion Date is
         specified in a Notice of Conversion, the Conversion Date shall be the
         date that such Notice of Conversion is provided hereunder. Once
         delivered, the Notice of Conversion shall be irrevocable, unless
         provided otherwise by the Company in its sole discretion or as provided
         in Section 4(d)(iii). To effect conversions hereunder, the Holder shall
         not be required to physically surrender this Debenture to the Company
         unless the entire principal amount of this Debenture plus all accrued
         and unpaid interest thereon has been so converted. Conversions
         hereunder shall have the effect of lowering the outstanding principal
         amount of this Debenture in an amount equal to the applicable
         conversion. The Holder and the Company shall maintain records showing
         the principal amount converted and the date of such conversions. The
         Company shall deliver any objection to any Notice of Conversion within
         1 Business Day of receipt of such notice. In the event of any dispute
         or discrepancy, the records of the Holder shall be controlling and
         determinative in the absence of manifest error. The Holder and any
         assignee, by acceptance of this Debenture, acknowledge and agree that,
         by reason of the provisions of this paragraph, following conversion of
         a portion of this Debenture, the unpaid and unconverted principal
         amount of this Debenture may be less than the amount stated on the face
         hereof.

                     b) Conversion Price. The conversion price in effect on any
         Conversion Date shall be equal to $0.85 (subject to adjustment
         herein)(the "Conversion Price").

                     c) Conversion Limitations. The Company shall not effect any
         conversion of this Debenture, and a Holder shall not have the right to
         convert any portion of this Debenture to the extent that after giving
         effect to such conversion, such Holder (together with such Holder's
         affiliates, and any other person or entity acting as a group together
         with such Holder or any of such Holder's affiliates), as set forth on
         the applicable Notice of Conversion, would beneficially own in excess
         of the Beneficial Ownership Limitation (as defined below). For purposes
         of the foregoing sentence, the number of shares of Common Stock
         beneficially owned by such Holder and its affiliates shall include the
         number of shares of Common Stock issuable upon conversion of this
         Debenture 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 principal amount of this Debenture beneficially owned by
         such 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 Debentures or the
         Warrants) subject to a limitation on conversion or exercise analogous
         to the limitation contained herein beneficially owned by such Holder or
         any of its affiliates. Except as set forth in the preceding sentence,
         for purposes of this Section 4(c), beneficial ownership shall be
         calculated in accordance with Section 13(d) of

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         the Exchange Act and the rules and regulations promulgated thereunder.
         To the extent that the limitation contained in this Section 4(c)
         applies, the determination of whether this Debenture is convertible (in
         relation to other securities owned by such Holder together with any
         affiliates) and of which amounts of this Debenture are convertible
         shall be in the sole discretion of such Holder, and the submission of a
         Notice of Conversion shall be deemed to be such Holder's determination
         of whether this Debenture may be converted (in relation to other
         securities owned by such Holder) and which amounts of this Debenture
         are convertible, in each case subject to such aggregate percentage
         limitations. To ensure compliance with this restriction, each Holder
         will be deemed to represent to the Company each time it delivers a
         Notice of Conversion that such Notice of Conversion has not violated
         the restrictions set forth in this paragraph and the Company shall have
         no obligation to verify or confirm the accuracy of such determination.
         In addition, a determination as to any group status as contemplated
         above shall be determined in accordance with Section 13(d) of the
         Exchange Act and the rules and regulations promulgated thereunder. For
         purposes of this Section 4(c), in determining the number of outstanding
         shares of Common Stock, a Holder may rely on the number of outstanding
         shares of Common Stock as reflected in the most recent of the
         following: (A) the Company's most recent Form 10-QSB or Form 10-KSB, as
         the case may be, (B) a more recent public announcement by the Company
         or (C) any other notice by the Company or the Company's transfer agent
         setting forth the number of shares of Common Stock outstanding. Upon
         the written request of a Holder, the Company shall within two Trading
         Days confirm in writing to such 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
         Debenture, by such Holder or its affiliates since the date as of which
         such number of outstanding shares of Common Stock was reported. The
         Company, in refraining from or taking actions under this Section 4(c),
         may rely solely upon filings made by the Holder under Section 13(d) of
         the Exchange Act or written representation of the Holder as to its
         beneficial ownership. The "Beneficial Ownership Limitation" shall be
         4.99% of the number of shares of the Common Stock outstanding
         immediately after giving effect to the issuance of shares of Common
         Stock issuable upon conversion of this Debenture held by the Holder.
         The Beneficial Ownership Limitation provisions of this Section 4(c) may
         be waived by such Holder, at the election of such Holder, upon not less
         than 61 days' prior notice to the Company to change the Beneficial
         Ownership Limitation to 9.99% of the number of shares of the Common
         Stock outstanding immediately after giving effect to the issuance of
         shares of Common Stock upon conversion of this Debenture held by the
         Holder, and the provisions of this Section 4(c) shall continue to
         apply. Upon such a change by a Holder of the Beneficial Ownership
         Limitation from such 4.99% limitation to such 9.99% limitation, the
         Beneficial Ownership Limitation may not be waived by such Holder. The
         provisions of this paragraph shall be implemented in a manner otherwise
         than in strict conformity with the terms of this Section 4(c) 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. The limitations
         contained in this paragraph shall apply to a successor holder of this
         Debenture.

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                     d)  Mechanics of Conversion

                         i.   Conversion Shares Issuable Upon Conversion of
         Principal Amount. The number of shares of Common Stock issuable upon a
         conversion hereunder shall be determined by the quotient obtained by
         dividing (x) the outstanding principal amount of this Debenture to be
         converted by (y) the Conversion Price. i.

                         ii.  Delivery of Certificate Upon Conversion. Not later
         than three Trading Days after any Conversion Date, the Company will
         deliver or cause to be delivered to the Holder (A) a certificate or
         certificates representing the Conversion Shares which shall be free of
         restrictive legends and trading restrictions (other than those required
         by the Purchase Agreement) representing the number of shares of Common
         Stock being acquired upon the conversion of this Debenture (including,
         if the Company has given continuous notice pursuant to Section 2(b) for
         payment of interest in shares of Common Stock at least 20 Trading Days
         prior to the date on which the Conversion Notice is delivered to the
         Company, shares of Common Stock representing the payment of accrued
         interest otherwise determined pursuant to Section 2(a) but assuming
         that the Interest Payment Period is the 20 Trading Days period
         immediately prior to the date on which the Conversion Notice is
         delivered to the Company and (B) a bank check in the amount of accrued
         and unpaid interest (to the extent the Company is paying to pay accrued
         interest in cash). The Company shall, if available and if allowed under
         applicable securities laws, use its reasonable best efforts to deliver
         any certificate or certificates required to be delivered by the Company
         under this Section electronically through the Depository Trust
         Corporation or another established clearing corporation performing
         similar functions.

                         iii. Failure to Deliver Certificates. If in the case of
         any Notice of Conversion such certificate or certificates are not
         delivered to or as directed by the applicable Holder by the third
         Trading Day after a Conversion Date, the Holder shall be entitled by
         written notice to the Company at any time on or before its receipt of
         such certificate or certificates thereafter, to rescind such
         conversion, in which event the Company shall immediately return the
         certificates representing the principal amount of this Debenture
         tendered for conversion.

                         iv.  Obligation Absolute; Partial Liquidated Damages.
         If the Company fails for any reason to deliver to the Holder such
         certificate or certificates pursuant to Section 4(d)(ii) by the third
         Trading Day after the Conversion Date, the Company shall pay to such
         Holder, in cash, as liquidated damages and not as a penalty, for each
         $1000 of principal amount being converted, $10 per Trading Day
         (increasing to $20 per Trading Day after 5 Trading Days after such
         damages begin to accrue) for each Trading Day after such third Trading
         Day until such certificates are delivered. The Company's obligations to
         issue and deliver the Conversion Shares upon conversion of this
         Debenture in accordance with the

                                       11
<PAGE>
         terms hereof are absolute and unconditional, irrespective of any action
         or inaction by the Holder to enforce the same, any waiver or consent
         with respect to any provision hereof, the recovery of any judgment
         against any Person or any action to enforce the same, or any setoff,
         counterclaim, recoupment, limitation or termination, or any breach or
         alleged breach by the Holder or any other Person of any obligation to
         the Company or any violation or alleged violation of law by the Holder
         or any other person, and irrespective of any other circumstance which
         might otherwise limit such obligation of the Company to the Holder in
         connection with the issuance of such Conversion Shares; provided,
         however, such delivery shall not operate as a waiver by the Company of
         any such action the Company may have against the Holder. In the event
         the Holder of this Debenture shall elect to convert any or all of the
         outstanding principal amount hereof, the Company may not refuse
         conversion based on any claim that the Holder or any one associated or
         affiliated with the Holder has been engaged in any violation of law,
         agreement or for any other reason, unless, an injunction from a court,
         on notice, restraining and or enjoining conversion of all or part of
         this Debenture shall have been sought and obtained and the Company
         posts a surety bond for the benefit of the Holder in the amount of 150%
         of the principal amount of this Debenture outstanding, which is subject
         to the injunction, which bond shall remain in effect until the
         completion of arbitration/litigation of the dispute and the proceeds of
         which shall be payable to such Holder to the extent it obtains
         judgment. In the absence of an injunction precluding the same, the
         Company shall issue Conversion Shares or, if applicable, cash, upon a
         properly noticed conversion. Nothing herein shall limit a Holder's
         right to pursue actual damages or declare an Event of Default pursuant
         to Section 8 herein for the Company's failure to deliver Conversion
         Shares within the period specified herein and such Holder shall have
         the right to pursue all remedies available to it at law or in equity
         including, without limitation, a decree of specific performance and/or
         injunctive relief. The exercise of any such rights shall not prohibit
         the Holder from seeking to enforce damages pursuant to any other
         Section hereof or under applicable law.

                         v. Compensation for Buy-In on Failure to Timely Deliver
         Certificates Upon Conversion. In addition to any other rights available
         to the Holder, if the Company fails for any reason to deliver to the
         Holder such certificate or certificates pursuant to Section 4(d)(ii) by
         the third Trading Day after the Conversion Date, and if after such
         third Trading Day the Holder is required by its brokerage firm to
         purchase (in an open market transaction or otherwise) Common Stock to
         deliver in satisfaction of a sale by such Holder of the Conversion
         Shares which the Holder anticipated receiving upon such conversion (a
         "Buy-In"), then the Company shall (A) pay in cash to the Holder (in
         addition to any remedies available to or elected by the Holder) the
         amount by which (x) the Holder's total purchase price (including
         brokerage commissions, if any) for the Common Stock so purchased
         exceeds (y) the product of (1) the aggregate number of shares of Common
         Stock that such Holder anticipated receiving from the conversion at
         issue multiplied by (2) the actual sale price of the Common Stock at
         the time of

                                       12
<PAGE>
         the sale (including brokerage commissions, if any) giving rise to such
         purchase obligation and (B) at the option of the Holder, either reissue
         (if surrendered) this Debenture in a principal amount equal to the
         principal amount of the attempted conversion or deliver to the Holder
         the number of shares of Common Stock that would have been issued had
         the Company timely complied with its delivery requirements under
         Section 4(d)(ii). For example, if the Holder purchases Common Stock
         having a total purchase price of $11,000 to cover a Buy-In with respect
         to an attempted conversion of this Debenture with respect to which the
         actual sale price of the Conversion Shares at the time of the sale
         (including brokerage commissions, if any) giving rise to such purchase
         obligation was a total of $10,000 under clause (A) of the immediately
         preceding sentence, the Company shall be required to pay the Holder
         $1,000. The Holder shall provide the Company written proof indicating
         the amounts payable to the Holder in respect of the Buy-In.

                         vi. Reservation of Shares Issuable Upon Conversion. The
         Company covenants that it will at all times reserve and keep available
         out of its authorized and unissued shares of Common Stock solely for
         the purpose of issuance upon conversion of this Debenture and payment
         of interest on this Debenture, each as herein provided, free from
         preemptive rights or any other actual contingent purchase rights of
         persons other than the Holder (and the other holders of the
         Debentures), not less than such number of shares of the Common Stock as
         shall (subject to the terms and conditions set forth in the Purchase
         Agreement) be issuable (taking into account the adjustments and
         restrictions of Section 5) upon the conversion of the outstanding
         principal amount of this Debenture and payment of interest hereunder.
         The Company covenants that all shares of Common Stock that shall be so
         issuable shall, upon issue, be duly and validly authorized, issued and
         fully paid, nonassessable.

                         vii. Fractional Shares. Upon a conversion hereunder the
         Company shall not be required to issue stock certificates representing
         fractions of shares of the Common Stock, but may if otherwise
         permitted, make a cash payment in respect of any final fraction of a
         share based on the VWAP at such time. If the Company elects not, or is
         unable, to make such a cash payment, the Holder shall be entitled to
         receive, in lieu of the final fraction of a share, one whole share of
         Common Stock.

                         viii. Transfer Taxes. The issuance of certificates for
         shares of the Common Stock on conversion of this Debenture shall be
         made without charge to the Holder hereof for any documentary stamp or
         similar taxes that may be payable in respect of the issue or delivery
         of such certificate, provided that the Company shall not be required to
         pay any tax that may be payable in respect of any transfer involved in
         the issuance and delivery of any such certificate upon conversion in a
         name other than that of the Holder of this Debenture so converted and
         the Company shall not be required to issue or deliver such certificates
         unless or until

                                       13
<PAGE>
         the person or persons requesting the issuance thereof shall have paid
         to the Company the amount of such tax or shall have established to the
         satisfaction of the Company that such tax has been paid.

         Section 5.  Certain Adjustments.

                     a) Stock Dividends and Stock Splits. If the Company, at any
         time while this Debenture is outstanding: (A) pays a stock dividend or
         otherwise makes a distribution or distributions on shares of its Common
         Stock or any other equity or equity equivalent securities payable in
         shares of Common Stock (which, for avoidance of doubt, shall not
         include any shares of Common Stock issued by the Company pursuant to
         this Debenture, including as interest thereon), (B) subdivides
         outstanding shares of Common Stock into a larger number of shares, (C)
         combines (including by way of reverse stock split) outstanding shares
         of Common Stock into a smaller number of shares, or (D) issues by
         reclassification of shares of the Common Stock any shares of capital
         stock of the Company, then the Conversion Price shall be multiplied by
         a fraction of which the numerator shall be the number of shares of
         Common Stock (excluding treasury shares, if any) outstanding
         immediately before such event and of which the denominator shall be the
         number of shares of Common Stock outstanding immediately after such
         event. Any adjustment made pursuant to this Section shall become
         effective immediately after the record date for the determination of
         stockholders entitled to receive such dividend or distribution and
         shall become effective immediately after the effective date in the case
         of a subdivision, combination or re-classification.

                     b)  Subsequent Equity Sales.

                         i.   If the Company or any Subsidiary thereof, as
         applicable, at any time while this Debenture is outstanding, shall
         sell, grant any option to purchase, sell or grant any right to reprice
         its securities, or otherwise dispose of or issue any Common Stock or
         Common Stock Equivalents entitling any Person to acquire shares of
         Common Stock, at an effective price per share less than the then
         Conversion Price (such lower price, the "Base Conversion Price" and
         such issuances collectively, a "Dilutive Issuance"), as adjusted
         hereunder (if the holder of the Common Stock or Common Stock
         Equivalents so issued shall at any time, whether by operation of
         purchase price adjustments, reset provisions, floating conversion,
         exercise or exchange prices or otherwise, or due to warrants, options
         or rights per share which is issued in connection with such issuance,
         be entitled to receive shares of Common Stock at an effective price per
         share which is less than the Conversion Price, such issuance shall be
         deemed to have occurred for less than the Conversion Price on such date
         of the Dilutive Issuance), then the Conversion Price shall be reduced
         to equal the Base Conversion Price.

                         ii. The Company or any Subsidiary there, as applicable,
         at any time while this Debenture is outstanding, shall offer, sell,
         grant any option to purchase or offer, sell or grant any right to
         reprice its securities, or otherwise dispose of or

                                       14
<PAGE>
         issue (or announce any offer, sale, grant or any option to purchase or
         other disposition) any Common Stock or Common Stock Equivalents
         entitling any Person to acquire shares of Common Stock, at an effective
         price per share less than the VWAP on either the Trading Day
         immediately prior to the date agreements for such issuance are entered
         into or the date such issuance is consummated, whichever results in a
         higher VWAP, but more than the then effective Conversion Price (which
         is addressed in 5(b)(i) above) (such lower price, the "Market Base
         Conversion Price" and such issuances collectively, a "Market Dilutive
         Issuance"), as adjusted hereunder (if the holder of the Common Stock or
         Common Stock Equivalents so issued shall at any time, whether by
         operation of purchase price adjustments, reset provisions, floating
         conversion, exercise or exchange prices or otherwise, or due to
         warrants, options or rights per share which is issued in connection
         with such issuance, be entitled to receive shares of Common Stock at an
         effective price per share which is less than the Conversion Price, such
         issuance shall be deemed to have occurred for less than the Conversion
         Price on such date of the Market Dilutive Issuance) then the Conversion
         Price shall be reduced to a price determined by multiplying the then
         effective Conversion Price by a fraction, the numerator of which is the
         number of shares of Common Stock issued and outstanding immediately
         prior to the Market Dilutive Issuance plus the number of shares of
         Common Stock which the aggregate offering price for such Market
         Dilutive Issuance would purchase at the then Market Base Conversion
         Price, and the denominator of which shall be the sum of the number of
         shares of Common Stock issued and outstanding immediately prior to the
         Market Dilutive Issuance plus the number of shares of Common Stock so
         issued or issuable in connection with the Market Dilutive Issuance

                         iii. Such adjustments under this Section 5(b) shall be
         made whenever such Common Stock or Common Stock Equivalents are issued.
         Notwithstanding the foregoing, no adjustment will be made under this
         Section 5(b) in respect of an Exempt Issuance. The Company shall notify
         the Holder in writing, no later than the Business Day following the
         issuance of any Common Stock or Common Stock Equivalents subject to
         this section, indicating therein the applicable issuance price, or of
         applicable reset price, exchange price, conversion price and other
         pricing terms (such notice the "Dilutive Issuance Notice"). For
         purposes of clarification, whether or not the Company provides a
         Dilutive Issuance Notice pursuant to this Section 5(b), immediately
         after the occurrence of any Dilutive Issuance or Market Dilutive
         Issuance, after the date of such Dilutive Issuance or Market Dilutive
         Issuance the Holder is entitled to receive a number of Conversion
         Shares based upon the Base Conversion Price or the price determined
         pursuant to 5(b)(ii), as applicable, regardless of whether the Holder
         accurately refers to the Base Conversion Price or the price determined
         pursuant to 5(b)(ii) in the Notice of Conversion.

                                       15
<PAGE>
                     c)  Pro Rata Distributions. If the Company, at any time
         while this Debenture is outstanding, shall distribute to all holders of
         Common Stock (and not to the holders of the Debenture) evidences of its
         indebtedness or assets (including cash and cash dividends) or rights or
         warrants to subscribe for or purchase any security, then in each such
         case the Conversion Price shall be adjusted by multiplying such
         Conversion Price in effect immediately prior to the record date fixed
         for determination of stockholders entitled to receive such distribution
         by a fraction of which the denominator shall be the VWAP determined as
         of the record date mentioned above, and of which the numerator shall be
         such VWAP on such record date less the then fair market value at such
         record date of the portion of such assets or evidence of indebtedness
         so distributed applicable to one outstanding share of the Common Stock
         as determined by the Board of Directors in good faith. In either case
         the adjustments shall be described in a statement provided to the
         Holder of the portion of assets or evidences of indebtedness so
         distributed or such subscription rights applicable to one share of
         Common Stock. Such adjustment shall be made whenever any such
         distribution is made and shall become effective immediately after the
         record date mentioned above.

                     d)  Fundamental Transaction. If, at any time while this
         Debenture is outstanding, (A) the Company effects any merger or
         consolidation of the Company with or into another Person, (B) the
         Company effects any sale of all or substantially all of its assets in
         one or a series of related transactions, (C) any tender offer or
         exchange offer (whether by the Company or another Person) is completed
         pursuant to which holders of Common Stock are permitted to tender or
         exchange their shares for other securities, cash or property, or (D)
         the Company effects any reclassification of the Common Stock or any
         compulsory share exchange pursuant to which the Common Stock is
         effectively converted into or exchanged for other securities, cash or
         property (in any such case, a "Fundamental Transaction"), then upon any
         subsequent conversion of this Debenture, the Holder shall have the
         right to receive, for each Conversion Share that would have been
         issuable upon such conversion immediately prior to the occurrence of
         such Fundamental Transaction, the same kind and amount of securities,
         cash or property as it would have been entitled to receive upon the
         occurrence of such Fundamental Transaction if it had been, immediately
         prior to such Fundamental Transaction, the holder of one share of
         Common Stock (the "Alternate Consideration"). For purposes of any such
         conversion, the determination of the Conversion Price shall be
         appropriately adjusted to apply to such Alternate Consideration based
         on the amount of Alternate Consideration issuable in respect of one
         share of Common Stock in such Fundamental Transaction, and the Company
         shall apportion the Conversion Price among the Alternate Consideration
         in a reasonable manner reflecting the relative value of any different
         components of the Alternate Consideration. If holders of Common Stock
         are given any choice as to the securities, cash or property to be
         received in a Fundamental Transaction, then the Holder shall be given
         the same choice as to the Alternate Consideration it receives upon any
         conversion of this Debenture following such Fundamental Transaction. To
         the extent necessary to effectuate the foregoing provisions, any
         successor to the Company or surviving entity in such Fundamental
         Transaction shall issue to the Holder a new debenture consistent with
         the foregoing provisions and evidencing the Holder's right to

                                       16
<PAGE>
         convert such debenture into Alternate Consideration. The terms of any
         agreement pursuant to which a Fundamental Transaction is effected shall
         include terms requiring any such successor or surviving entity to
         comply with the provisions of this paragraph (d) and insuring that this
         Debenture (or any such replacement security) will be similarly adjusted
         upon any subsequent transaction analogous to a Fundamental Transaction.

                     e)  Calculations. All calculations under this Section 5
         shall be made to the nearest cent or the nearest 1/100th of a share, as
         the case may be. For purposes of this Section 5, the number of shares
         of Common Stock deemed to be issued and outstanding as of a given date
         shall be the sum of the number of shares of Common Stock (excluding
         treasury shares, if any) issued and outstanding.

                     f)  Notice to the Holder.

                         i.   Adjustment to Conversion Price. Whenever the
         Conversion Price is adjusted pursuant to any of this Section 5, the
         Company shall promptly mail to each Holder a notice setting forth the
         Conversion Price after such adjustment and setting forth a brief
         statement of the facts requiring such adjustment. If the Company issues
         a variable rate security, despite the prohibition thereon in the
         Purchase Agreement, the Company shall be deemed to have issued Common
         Stock or Common Stock Equivalents at the lowest possible conversion or
         exercise price at which such securities may be converted or exercised
         in the case of a Variable Rate Transaction (as defined in the Purchase
         Agreement).

                         ii.  Notice to Allow Conversion by Holder. If (A) the
         Company shall declare a dividend (or any other distribution) on the
         Common Stock; (B) the Company shall declare a special nonrecurring cash
         dividend on or a redemption of the Common Stock; (C) the Company shall
         authorize the granting to all holders of the Common Stock rights or
         warrants to subscribe for or purchase any shares of capital stock of
         any class or of any rights; (D) the approval of any stockholders of the
         Company shall be required in connection with any reclassification of
         the Common Stock, any consolidation or merger to which the Company is a
         party, any sale or transfer of all or substantially all of the assets
         of the Company, of any compulsory share exchange whereby the Common
         Stock is converted into other securities, cash or property; (E) the
         Company shall authorize the voluntary or involuntary dissolution,
         liquidation or winding up of the affairs of the Company; then, in each
         case, the Company shall cause to be filed at each office or agency
         maintained for the purpose of conversion of this Debenture, and shall
         cause to be mailed to the Holder at its last addresses as it shall
         appear upon the stock books of the Company, at least 20 calendar days
         prior to the applicable record or effective date hereinafter specified,
         a notice stating (x) the date on which a record is to be taken for the
         purpose of such dividend, distribution, redemption, rights or warrants,
         or if a record is not to be taken, the date as of which the holders of
         the Common Stock of record to be entitled to such dividend,
         distributions, redemption, rights or warrants are to be determined or
         (y) the date on which such

                                       17
<PAGE>
         reclassification, consolidation, merger, sale, transfer or share
         exchange is expected to become effective or close, and the date as of
         which it is expected that holders of the Common Stock of record shall
         be entitled to exchange their shares of the Common Stock for
         securities, cash or other property deliverable upon such
         reclassification, consolidation, merger, sale, transfer or share
         exchange; provided that the failure to mail such notice or any defect
         therein or in the mailing thereof shall not affect the validity of the
         corporate action required to be specified in such notice. The Holder is
         entitled to convert this Debenture during the 20-day period commencing
         the date of such notice to the effective date of the event triggering
         such notice.

         Section 6.  Redemption and Forced Conversion.

                     a)  Optional Redemption at Election of Company. Subject to
         the provisions of this Section 6, at any time after the later of (i)
         the 12-month anniversary of the Original Issue Date and (ii) the
         Effective Date, the Company may deliver a notice to the Holder (an
         "Optional Redemption Notice" and the date such notice is deemed
         delivered hereunder, the "Optional Redemption Notice Date") of its
         irrevocable election to redeem the then outstanding Debentures, in
         whole or in part, for an amount, in cash, equal to the Optional
         Redemption Amount on the 10th Trading Day following the Optional
         Redemption Notice Date (such date, the "Optional Redemption Date" and
         such redemption, the "Optional Redemption"). The Optional Redemption
         Amount is due in full on the Optional Redemption Date. The Company may
         only effect an Optional Redemption if during the period commencing on
         the Optional Redemption Notice Date through to the Optional Redemption
         Date and through and including the date such shares of Common Stock are
         issued to the Holder, each of the Equity Conditions shall have been
         met. If any of the Equity Conditions shall cease to be satisfied at any
         time during the required period, then the Holder may elect to nullify
         the Optional Redemption Notice by notice to the Company within 3
         Trading Days after the first day on which any such Equity Condition has
         not been met (provided that if, by a provision of the Transaction
         Documents, the Company is obligated to notify the Holder of the
         non-existence of an Equity Condition, such notice period shall be
         extended to the third Trading Day after proper notice from the Company)
         in which case the Optional Redemption Notice shall be null and void, ab
         initio. The Company covenants and agrees that it will honor all Notices
         of Conversion tendered from the time of delivery of the Optional
         Redemption Notice through the date the Optional Redemption Amount is
         paid in full.

                     b) Redemption Procedure. The payment of cash pursuant to an
         Optional Redemption shall be made on the Optional Redemption Date. If
         any portion of the cash payment for an Optional Redemption shall not be
         paid by the Company by the respective due date, interest shall accrue
         thereon at the rate of 18% per annum (or the maximum rate permitted by
         applicable law, whichever is less) until the payment of the Optional
         Redemption Amount is paid in full. Alternatively, if any portion of the
         Optional Redemption Amount remains unpaid more than five Trading Days
         after such date, the Holders subject to such redemption may elect, by
         written notice to the Company given at

                                       18
<PAGE>
         any time thereafter, to invalidate ab initio such redemption,
         notwithstanding anything herein contained to the contrary, and the
         Company shall have no further right to exercise an Optional Redemption
         with respect to this Debenture. Notwithstanding anything to the
         contrary in this Section 6, the Company's determination to redeem in
         cash or its elections under Section 6(b) shall be applied among the
         Holders of Debentures ratably. The Holder may elect to convert the
         outstanding principal amount of the Debenture pursuant to Section 4
         prior to actual payment in cash for any redemption under this Section 6
         by fax delivery of a Notice of Conversion to the Company.

                     c)  Forced Conversion. Notwithstanding anything herein to
         the contrary, if after the Effective Date, each of the VWAPs for any 20
         consecutive Trading Days (such period commencing only after the
         Effective Date, such period the "Threshold Period")) exceeds 200% of
         the then effective Conversion Price, the Company may, within 1 Trading
         Day of the end of any such period, deliver a notice to the Holder (a
         "Forced Conversion Notice" and the date such notice is received by the
         Holder, the "Forced Conversion Notice Date") to cause the Holder to
         convert, at the Company's sole discretion, all or part of the then
         outstanding principal amount of Debentures pursuant to Section 4, it
         being understood that the "Conversion Date" for purposes of Section 4
         shall be deemed to occur on the thirtieth Trading Day following the
         Forced Conversion Notice Date (such thirtieth Trading Day being
         referred to as the "Forced Conversion Date"). The Company may not
         deliver a Forced Conversion Notice, and any Forced Conversion Notice
         delivered by the Corporation shall not be effective, unless all of the
         Equity Conditions are met on each Trading Day occurring during the 10
         Trading Days immediately prior to the applicable Threshold Period,
         during the applicable Threshold Period and from the end of the
         Threshold Period through and including the later of the Forced
         Conversion Date and the date such Conversion Shares pursuant to such
         conversion are delivered to the Holder. Any Forced Conversion shall be
         applied ratably to all Holders based on their initial purchases of
         Debentures pursuant to the Purchase Agreement. For purposes of
         clarification, a Forced Conversion shall be subject to all of the
         provisions of Section 4, including, without limitation, the provision
         requiring payment of liquidated damages and limitations on conversions.

         Section 7. Negative Covenants. So long as any portion of this Debenture
is outstanding, the Company will not and will not permit any of its Subsidiaries
to directly or indirectly without the prior written consent of the holders of at
least 51% of the principal amount of Debentures then outstanding:

                     a)  other than Permitted Indebtedness, enter into, create,
         incur, assume, guarantee or suffer to exist any indebtedness for
         borrowed money of any kind, including but not limited to, a guarantee,
         on or with respect to any of its property or assets now owned or
         hereafter acquired or any interest therein or any income or profits
         therefrom;

                     b)  other than Permitted Liens, enter into, create, incur,
         assume or suffer to exist any liens of any kind, on or with respect to
         any of its property or assets now owned or hereafter acquired or any
         interest therein or any income or profits therefrom;

                                       19
<PAGE>
                     c)  amend its certificate of incorporation, bylaws or other
         charter documents so as to materially and adversely affect any rights
         of the Holder;

                     d)  repay, repurchase or offer to repay, repurchase or
         otherwise acquire more than a de minimis number of shares of Common
         Stock or Common Stock Equivalents other than (i) as to the Conversion
         Shares to the extent permitted or required under the Transaction
         Documents, (ii) as otherwise permitted by the Transaction Documents or
         (iii) shares of Common Stock held by former employees of the Company
         which the Company is entitled to repurchased from such employees
         pursuant to the contractual rights relating to their termination of
         employment but not to exceed $50,000 in any 12 month period;

                     e)  enter into any agreement with respect to any of the
         foregoing; or

                     f)  pay cash dividends or distributions on any equity
         securities of the Company.

         Section 8.  Events of Default.

                     a)  "Event of Default", wherever used herein, means any one
         of the following events (whatever the reason and whether it shall be
         voluntary or involuntary or effected by operation of law or pursuant to
         any judgment, decree or order of any court, or any order, rule or
         regulation of any administrative or governmental body):

                         i.   any default in the payment of (A) the principal
         amount of any Debenture, or (B) interest (including Late Fees) on, or
         liquidated damages in respect of, any Debenture, as and when the same
         shall become due and payable (whether on a Conversion Date or the
         Maturity Date or by acceleration or otherwise) which default is not
         cured within 3 Trading Days after written notice from the Holder;

                         ii.  the Company shall materially fail to observe or
         perform any other covenant or agreement contained in this Debenture or
         any other Debenture (other than a breach by the Company of its
         obligations to deliver shares of Common Stock to the Holder upon
         conversion which breach is addressed in clause (xi) below) which
         failure is not cured, if possible to cure, within the earlier to occur
         of (A) 10 Trading Days after notice of such default sent by the Holder
         or by any other Holder and (B)15 Trading Days after the Company shall
         become or should have become aware of such failure;

                         iii. a default or event of default (subject to any
         grace or cure period provided for in the applicable agreement, document
         or instrument) shall occur under (A) any of the Transaction Documents,
         or (B) any other material agreement, lease, document or instrument to
         which the Company or any Subsidiary is bound;

                                       20
<PAGE>
                         iv.  any representation or warranty made herein, in any
         other Transaction Documents, in any written statement pursuant hereto
         or thereto, or in any other report, financial statement or certificate
         made or delivered to the Holder shall be untrue or incorrect in any
         material respect as of the date when made or deemed made;

                         v.   (i) the Company or any of its Subsidiaries shall
         commence a case, as debtor, a case under any applicable bankruptcy or
         insolvency laws as now or hereafter in effect or any successor thereto,
         or the Company or any Subsidiary commences any other proceeding under
         any reorganization, arrangement, adjustment of debt, relief of debtors,
         dissolution, insolvency or liquidation or similar law of any
         jurisdiction whether now or hereafter in effect relating to the Company
         or any Subsidiary thereof or (ii) there is commenced a case against the
         Company or any Subsidiary thereof, in a court of competent
         jurisdiction, under any applicable bankruptcy or insolvency laws, as
         now or hereafter in effect or any successor thereto which remains
         undismissed for a period of 60 days; or (iii) the Company or any
         Subsidiary thereof is adjudicated by a court of competent jurisdiction
         insolvent or bankrupt; or any order of relief or other order approving
         any such case or proceeding is entered; or (iv) the Company or any
         Subsidiary thereof suffers any appointment of any custodian or the like
         for it or any substantial part of its property which continues
         undischarged or unstayed for a period of 60 days; or (v) the Company or
         any Subsidiary thereof makes a general assignment for the benefit of
         creditors; or (vi) the Company shall fail to pay, or shall state in
         writing that it is unable to pay, or shall be unable to pay, its debts
         generally as they become due; or (vii) the Company or any Subsidiary
         thereof shall call a meeting of its creditors with a view to arranging
         a composition, adjustment or restructuring of its debts; or (viii) the
         Company or any Subsidiary thereof shall by any act or failure to act
         expressly indicate its consent to, approval of or acquiescence in any
         of the foregoing; or (ix) any corporate or other action is taken by the
         Company or any Subsidiary thereof for the purpose of effecting any of
         the foregoing;

                         vi.  the Company or any Subsidiary shall default in any
         of its obligations (other than under any of the Transaction Documents)
         under any mortgage, credit agreement or other facility, indenture
         agreement, factoring agreement or other instrument under which there
         may be issued, or by which there may be secured or evidenced any
         indebtedness for borrowed money or money due under any long term
         leasing or factoring arrangement of the Company in an amount exceeding
         $150,000, whether such indebtedness now exists or shall hereafter be
         created and such default shall result in such indebtedness becoming or
         being declared due and payable prior to the date on which it would
         otherwise become due and payable, and all applicable cure periods with
         respect thereto shall have expired;

                                       21
<PAGE>
                         vii. the Common Stock shall not be eligible for
         quotation on or quoted for trading on a Trading Market for at least
         five consecutive Trading Days (other than as a result of events that
         affect the Trading Market in general);

                         viii. the Company shall be a party to any Change of
         Control Transaction or Fundamental Transaction, shall agree to sell or
         dispose of all or in excess of 33% of its assets in one or more
         transactions (whether or not such sale would constitute a Change of
         Control Transaction), unless such sale or disposition is conditioned
         upon the waiver of this provision by the holders of 66% of the
         outstanding principal amount of the Debentures, or shall redeem or
         repurchase more than a de minimis number of its outstanding shares of
         Common Stock or other equity securities of the Company (other than
         redemptions of Conversion Shares and repurchases of shares of Common
         Stock or other equity securities of departing officers and directors of
         the Company, provided that such repurchases shall not exceed $200,000,
         in the aggregate, for all officers, directors and employees during any
         12 month period);

                         ix.  a Registration Statement shall not have been
         declared effective by the Commission on or prior to the 210th calendar
         day after the Closing Date (270th if, notwithstanding the commercial
         best efforts of the Company, the Commission will not permit
         acceleration or requests withdrawal as a result of the issuance of the
         Securities under the Purchase Agreement or the failure of any Holder to
         comply with the Plan of Distribution);

                         x.   if, during the Effectiveness Period (as defined in
         the Registration Rights Agreement), the effectiveness of the
         Registration Statement lapses for any reason or the Holder shall not be
         permitted to resell Registrable Securities (as defined in the
         Registration Rights Agreement) under the Registration Statement, in
         either case, for more than 40 consecutive Trading Days or 60
         non-consecutive Trading Days during any 12 month period; provided,
         however, that in the event that the Company is negotiating a merger,
         consolidation, acquisition or sale of all or substantially all of its
         assets or a similar transaction and in the written opinion of counsel
         to the Company, the Registration Statement, would be required to be
         amended to include information concerning such transactions or the
         parties thereto that is not available or may not be publicly disclosed
         at the time, the Company shall be permitted an additional 20
         consecutive Trading Days during any 12 month period relating to such an
         event;

                         xi.  the Company shall fail for any reason to deliver
         certificates to or as directed by a Holder by the seventh Trading Day
         after a Conversion Date or any Forced Conversion Date pursuant to and
         in accordance with Section 4(d) or the Company shall provide notice to
         the Holder, including by way of public announcement, at any time, of
         its intention not to comply with requests for conversions of any
         Debentures in accordance with the terms hereof;

                                       22
<PAGE>
                         xii. On or before January 15, 2006, the Company shall
         have not (A) converted all of the Indebtedness set forth on Schedule
         3.1(g) of the Purchase Agreement under the heading "Indebtedness to be
         converted into common Stock on or prior to January 15, 2006 at or above
         $0.67 per share (subject to adjustment for reverse and forward stock
         splits and the like)" into Common Stock at an effective conversion
         price equal to or greater than $0.67 per share (subject to adjustment
         for reverse and forward stock splits and the like) and (B) obtained
         written pay-off and release letters from all holders of such
         Indebtedness; or

                         xiii. any monetary judgment, writ or similar final
         process shall be entered or filed against the Company, any Subsidiary
         or any of their respective property or other assets for than $100,000,
         and shall remain unvacated, unbonded or unstayed for a period of 45
         calendar days.

                     b)  Remedies Upon Event of Default. If any Event of Default
         occurs, the full principal amount of this Debenture, together with
         interest and other amounts owing in respect thereof, to the date of
         acceleration shall become, at the Holder's election, immediately due
         and payable in cash. The aggregate amount payable upon an Event of
         Default shall be equal to the Mandatory Default Amount. Commencing 5
         days after the occurrence of any Event of Default that results in the
         eventual acceleration of this Debenture, the interest rate on this
         Debenture shall accrue at the rate of 18% per annum, or such lower
         maximum amount of interest permitted to be charged under applicable
         law. Concurrently with the payment in full of the Mandatory Default
         Amount the Holder shall surrender this Debenture to or as directed by
         the Company. The Holder need not provide and the Company hereby waives
         any presentment, demand, protest or other notice of any kind, and the
         Holder may immediately and without expiration of any grace period
         enforce any and all of its rights and remedies hereunder and all other
         remedies available to it under applicable law. Such election may be
         rescinded and annulled by Holder at any time prior to payment hereunder
         and the Holder shall have all rights as a Debenture holder until such
         time, if any, as the full payment under this Section shall have been
         received by it. No such rescission or annulment shall affect any
         subsequent Event of Default or impair any right consequent thereon.

         Section 9.  Miscellaneous.

                     a)  Notices. Any and all notices or other communications or
         deliveries to be provided by the Holder hereunder, including, without
         limitation, any Notice of Conversion, shall be in writing and delivered
         personally, by facsimile, sent by a nationally recognized overnight
         courier service, addressed to the Company, at the address set forth
         above, facsimile number (908) 769-0206, ATTN: OLEG LOGVINOV or such
         other address or facsimile number as the Company may specify for such
         purposes by notice to the Holder delivered in accordance with this
         Section. Any and all notices or other communications or deliveries to
         be provided by the Company hereunder shall be in writing and delivered
         personally, by facsimile, sent by a nationally recognized overnight
         courier service addressed to each Holder at the facsimile telephone
         number or address of

                                       24
<PAGE>
         such Holder appearing on the books of the Company, or if no such
         facsimile telephone number or address appears, at the principal place
         of business of the Holder. Any notice or other communication or
         deliveries hereunder shall be deemed given and effective on the
         earliest of (i) the date of transmission, if such notice or
         communication is delivered via facsimile at the facsimile telephone
         number specified in this Section prior to 5:30 p.m. (New York City
         time), (ii) the date after the date of transmission, if such notice or
         communication is delivered via facsimile at the facsimile telephone
         number specified in this Section later than 5:30 p.m. (New York City
         time) on any date and earlier than 11:59 p.m. (New York City time) on
         such date, (iii) the second Business Day following the date of mailing,
         if sent by nationally recognized overnight courier service, or (iv)
         upon actual receipt by the party to whom such notice is required to be
         given.

                     b)  Absolute Obligation. Except as expressly provided
         herein, no provision of this Debenture shall alter or impair the
         obligation of the Company, which is absolute and unconditional, to pay
         the principal of, interest and liquidated damages (if any) on, this
         Debenture at the time, place, and rate, and in the coin or currency,
         herein prescribed. This Debenture is a direct debt obligation of the
         Company. This Debenture ranks pari passu with all other Debentures now
         or hereafter issued under the terms set forth herein.

                     c)  Lost or Mutilated Debenture. If this Debenture shall be
         mutilated, lost, stolen or destroyed, the Company shall execute and
         deliver, in exchange and substitution for and upon cancellation of a
         mutilated Debenture, or in lieu of or in substitution for a lost,
         stolen or destroyed Debenture, a new Debenture for the principal amount
         of this Debenture so mutilated, lost, stolen or destroyed but only upon
         receipt of evidence of such loss, theft or destruction of such
         Debenture, and of the ownership hereof, and indemnity, if requested,
         all reasonably satisfactory to the Company.

                     d)  Governing Law. All questions concerning the
         construction, validity, enforcement and interpretation of this
         Debenture shall be governed by and construed and enforced in accordance
         with the internal laws of the State of New York, without regard to the
         principles of conflicts of law thereof. Each party agrees that all
         legal proceedings concerning the interpretations, enforcement and
         defense of the transactions contemplated by any of the Transaction
         Documents (whether brought against a party hereto or its respective
         affiliates, directors, officers, shareholders, employees or agents)
         shall be commenced in the state and federal courts sitting in the City
         of New York, Borough of Manhattan (the "New York Courts"). Each party
         hereto hereby irrevocably submits to the exclusive jurisdiction of the
         New York Courts for the adjudication of any dispute hereunder or in
         connection herewith or with any transaction contemplated hereby or
         discussed herein (including with respect to the enforcement of any of
         the Transaction Documents), 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, or such
         New York Courts are improper or inconvenient venue for such proceeding.
         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 via registered or certified mail or overnight
         delivery (with evidence of delivery) to such party

                                       24
<PAGE>
         at the address in effect for notices to it under this Debenture 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 hereto hereby irrevocably waives, to the fullest
         extent permitted by applicable law, any and all right to trial by jury
         in any legal proceeding arising out of or relating to this Debenture or
         the transactions contemplated hereby. If either party shall commence an
         action or proceeding to enforce any provisions of this Debenture, then
         the prevailing party in such action or proceeding shall be reimbursed
         by the other party for its attorneys fees and other costs and expenses
         incurred with the investigation, preparation and prosecution of such
         action or proceeding.

                     e)  Waiver. Any waiver by the Company or the Holder of a
         breach of any provision of this Debenture shall not operate as or be
         construed to be a waiver of any other breach of such provision or of
         any breach of any other provision of this Debenture. The failure of the
         Company or the Holder to insist upon strict adherence to any term of
         this Debenture on one or more occasions shall not be considered a
         waiver or deprive that party of the right thereafter to insist upon
         strict adherence to that term or any other term of this Debenture. Any
         waiver must be in writing.

                     f)  Severability. If any provision of this Debenture is
         invalid, illegal or unenforceable, the balance of this Debenture shall
         remain in effect, and if any provision is inapplicable to any person or
         circumstance, it shall nevertheless remain applicable to all other
         persons and circumstances. If it shall be found that any interest or
         other amount deemed interest due hereunder violates applicable laws
         governing usury, the applicable rate of interest due hereunder shall
         automatically be lowered to equal the maximum permitted rate of
         interest. The Company covenants (to the extent that it may lawfully do
         so) that it shall not at any time insist upon, plead, or in any manner
         whatsoever claim or take the benefit or advantage of, any stay,
         extension or usury law or other law which would prohibit or forgive the
         Company from paying all or any portion of the principal of or interest
         on this Debenture as contemplated herein, wherever enacted, now or at
         any time hereafter in force, or which may affect the covenants or the
         performance of this indenture, and the Company (to the extent it may
         lawfully do so) hereby expressly waives all benefits or advantage of
         any such law, and covenants that it will not, by resort to any such
         law, hinder, delay or impeded the execution of any power herein granted
         to the Holder, but will suffer and permit the execution of every such
         as though no such law has been enacted.

                     g)  Next Business Day. Whenever any payment or other
         obligation hereunder shall be due on a day other than a Business Day,
         such payment shall be made on the next succeeding Business Day.

                     h)  Headings. The headings contained herein are for
         convenience only, do not constitute a part of this Debenture and shall
         not be deemed to limit or affect any of the provisions hereof.

                                       25
<PAGE>
                     i)  Assumption. Any successor to the Company or surviving
         entity in a Fundamental Transaction shall (i) assume in writing all of
         the obligations of the Company under this Debenture and the other
         Transaction Documents pursuant to written agreements in form and
         substance satisfactory to the Holder (such approval not to be
         unreasonably withheld or delayed) prior to such Fundamental Transaction
         and (ii) to issue to the Holder a new debenture of such successor
         entity evidenced by a written instrument substantially similar in form
         and substance to this Debenture, including, without limitation, having
         a principal amount and interest rate equal to the principal amounts and
         the interest rates of the Debentures held by the Holder and having
         similar ranking to this Debenture, and satisfactory to the Holder (any
         such approval not to be unreasonably withheld or delayed). The
         provisions of this Section 9(i) shall apply similarly and equally to
         successive Fundamental Transactions and shall be applied without regard
         to any limitations of this Debenture.

                              *********************

                                       26
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Debenture to be duly
executed by a duly authorized officer as of the date first above indicated.

                                          CDKNET.COM, INC.

                                          By: _______________________________
                                              Name:  Oleg Logvinov
                                              Title: Chief Executive Officer

                                       27
<PAGE>
                                     ANNEX A

                              NOTICE OF CONVERSION

         The undersigned hereby elects to convert principal under the 6% Secured
Convertible Debenture of CDKNet.Com, Inc., a Delaware corporation (the
"Company"), due on December 28 , 2008 into shares of common stock, par value
$.0001 per share (the "Common Stock"), of the Company according to the
conditions hereof, as of the date written below. If shares are to be issued in
the name of a person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto and is delivering herewith such
certificates and opinions as reasonably requested by the Company in accordance
therewith. No fee will be charged to the holder for any conversion, except for
such transfer taxes, if any.

         By the delivery of this Notice of Conversion the undersigned represents
and warrants to the Company that its ownership of the Common Stock does not
exceed the amounts determined in accordance with Section 13(d) of the Exchange
Act, specified under Section 4 of this Debenture.

         The undersigned agrees to comply with the prospectus delivery
requirements under the applicable securities laws in connection with any
transfer of the aforesaid shares of Common Stock.

Conversion calculations:
                              Date to Effect Conversion:

                              Principal Amount of Debenture to be Converted:

                              Payment of Interest in Common Stock __ yes  __ no
                              If yes, $_____ of Interest Accrued on Account of
                              Conversion at Issue.

                              Number of shares of Common Stock to be issued:

                              Signature:

                              Name:

                              Address:

                                       28
<PAGE>
                                   SCHEDULE 1

                               CONVERSION SCHEDULE

The 6% Secured Convertible Debentures due on December __, 2008 in the aggregate
principal amount of $________ issued by CDKNet.com, Inc. This Conversion
Schedule reflects conversions made under Section 4 of the above referenced
Debenture.

                                                       Dated:

================================================================================
                                          Aggregate Principal
                                           Amount Remaining
                                             Subsequent to
 Date of Conversion                           Conversion
(or for first entry,      Amount of          (or original
Original Issue Date)      Conversion       Principal Amount)    Company Attest
-------------------   ------------------  -------------------  -----------------

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

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

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

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

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

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

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

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

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

================================================================================

                                       29EXHIBIT 4.2
                                                                     -----------

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                                CDKNET.COM, INC.

     THIS COMMON STOCK PURCHASE WARRANT (the "Warrant") certifies that, for
value received, _____________ (the "Holder"), is entitled, upon the terms and
subject to the limitations on exercise and the conditions hereinafter set forth,
at any time on or after the date hereof (the "Initial Exercise Date") and on or
prior to the close of business on the [_____(1) (the "Termination Date") but not
thereafter, to subscribe for and purchase from CDKNet.com, Inc., a Delaware
corporation (the "Company"), up to ______ shares (the "Warrant Shares") of
Common Stock, par value $.0001 per share, of the Company (the "Common Stock").
The purchase price of one share of Common Stock under this Warrant shall be
equal to the Exercise Price, as defined in Section 2(b).

     Section 1. Definitions. Capitalized terms used and not otherwise defined
herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the "Purchase Agreement"), dated December ____, 2005, among the
Company and the purchasers signatory thereto.

     Section 2. Exercise.

          a) Exercise of Warrant. Exercise of the purchase rights represented by
     this Warrant may be made, in whole or in part, at any time or times on or
     after the Initial Exercise Date and on or before the Termination Date by
     delivery to the Company of a

____________________
(1) Five year anniversary of the Initial Exercise Date as to Long Term Warrants
and the earlier of the 24 month anniversary of the Initial Exercise Date or the
12 month anniversary of the Effective Date as to Short Term Warrants.

                                        1
<PAGE>

     duly executed facsimile copy of the Notice of Exercise Form annexed hereto
     (or such other office or agency of the Company as it may designate by
     notice in writing to the registered Holder at the address of such Holder
     appearing on the books of the Company); provided, however, within 5 Trading
     Days of the date said Notice of Exercise is delivered to the Company, if
     this Warrant is exercised in full, the Holder shall have surrendered this
     Warrant to the Company and the Company shall have received payment of the
     aggregate Exercise Price of the shares thereby purchased by wire transfer
     or cashier's check drawn on a United States bank. Notwithstanding anything
     herein to the contrary, the Holder shall not be required to physically
     surrender this Warrant to the Company until the Holder has purchased all of
     the Warrant Shares available hereunder and the Warrant has been exercised
     in full. Partial exercises of this Warrant resulting in purchases of a
     portion of the total number of Warrant Shares available hereunder shall
     have the effect of lowering the outstanding number of Warrant Shares
     purchasable hereunder in an amount equal to the applicable number of
     Warrant Shares purchased. The Holder and the Company shall maintain records
     showing the number of Warrant Shares purchased and the date of such
     purchases. The Company shall deliver any objection to any Notice of
     Exercise Form within 1 Business Day of receipt of such notice. In the event
     of any dispute or discrepancy, the records of the Holder shall be
     controlling and determinative in the absence of manifest error. The Holder
     and any assignee, by acceptance of this Warrant, acknowledge and agree
     that, by reason of the provisions of this paragraph, following the purchase
     of a portion of the Warrant Shares hereunder, the number of Warrant Shares
     available for purchase hereunder at any given time may be less than the
     amount stated on the face hereof.

          b) Exercise Price. The exercise price of the Common Stock under this
     Warrant shall be $_____(2), subject to adjustment hereunder (the "Exercise
     Price").

          c) Cashless Exercise. If at any time after one year from the date of
     issuance of this Warrant there is no effective Registration Statement
     registering, or no current prospectus available for, the resale of the
     Warrant Shares by the Holder, then this Warrant may also be exercised at
     such time by means of a "cashless exercise" in which the Holder shall be
     entitled to receive a certificate for the number of Warrant Shares equal to
     the quotient obtained by dividing [(A-B) (X)] by (A), where:

     (A)  = the VWAP on the Trading Day immediately preceding the date of such
          election;

     (B)  = the Exercise Price of this Warrant, as adjusted; and

     (X)  = the number of Warrant Shares issuable upon exercise of this Warrant
          in accordance with the terms of this Warrant by means of a cash
          exercise rather than a cashless exercise.

______________________
(2) $0.85 as to Short Term Warrants and $1.00 as to Long Term Warrants.

                                        2
<PAGE>

          Notwithstanding anything herein to the contrary, on the Termination
     Date, this Warrant shall be automatically exercised via cashless exercise
     pursuant to this Section 2(c).

          d) Exercise Limitations. The Company shall not effect any exercise of
     this Warrant, and a Holder shall not have the right to exercise any portion
     of this Warrant, pursuant to Section 2(c) or otherwise, to the extent that
     after giving effect to such issuance after exercise, such Holder (together
     with such Holder's affiliates, and any other person or entity acting as a
     group together with such Holder or any of such Holder's affiliates), as set
     forth on the applicable Notice of Exercise, would beneficially own in
     excess of the Beneficial Ownership Limitation (as defined below). For
     purposes of the foregoing sentence, the number of shares of Common Stock
     beneficially owned by such Holder and its affiliates shall include the
     number of shares of Common Stock issuable upon exercise of this Warrant
     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) exercise of the remaining, nonexercised portion of this Warrant
     beneficially owned by such 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
     Debentures or Warrants) subject to a limitation on conversion or exercise
     analogous to the limitation contained herein beneficially owned by such
     Holder or any of its affiliates. Except as set forth in the preceding
     sentence, for purposes of this Section 2(d), beneficial ownership shall be
     calculated in accordance with Section 13(d) of the Exchange Act and the
     rules and regulations promulgated thereunder, it being acknowledged by a
     Holder that the Company is not representing to such Holder that such
     calculation is in compliance with Section 13(d) of the Exchange Act and
     such Holder is solely responsible for any schedules required to be filed in
     accordance therewith. To the extent that the limitation contained in this
     Section 2(d) applies, the determination of whether this Warrant is
     exercisable (in relation to other securities owned by such Holder) and of
     which a portion of this Warrant is exercisable shall be in the sole
     discretion of a Holder, and the submission of a Notice of Exercise shall be
     deemed to be each Holder's determination of whether this Warrant is
     exercisable (in relation to other securities owned by such Holder) and of
     which portion of this Warrant is exercisable, in each case subject to such
     aggregate percentage limitation, and the Company shall have no obligation
     to verify or confirm the accuracy of such determination. In addition, a
     determination as to any group status as contemplated above shall be
     determined in accordance with Section 13(d) of the Exchange Act and the
     rules and regulations promulgated thereunder. For purposes of this Section
     2(d), in determining the number of outstanding shares of Common Stock, a
     Holder may rely on the number of outstanding shares of Common Stock as
     reflected in (x) the Company's most recent Form 10-QSB or Form 10-KSB, as
     the case may be, (y) a more recent public announcement by the Company or
     (z) any other notice by the Company or the Company's Transfer Agent setting
     forth the number of shares of Common Stock outstanding. Upon the written or
     oral request of a Holder, the Company shall within two Trading Days confirm
     orally and in writing to such 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

                                        3
<PAGE>

     Warrant, by such Holder or its affiliates since the date as of which such
     number of outstanding shares of Common Stock was reported. The "Beneficial
     Ownership Limitation" shall be 4.99% of the number of shares of the Common
     Stock outstanding immediately after giving effect to the issuance of shares
     of Common Stock issuable upon exercise of this Warrant. The Beneficial
     Ownership Limitation provisions of this Section 2(d) may be waived by such
     Holder, at the election of such Holder, upon not less than 61 days' prior
     notice to the Company to change the Beneficial Ownership Limitation to
     9.99% of the number of shares of the Common Stock outstanding immediately
     after giving effect to the issuance of shares of Common Stock upon exercise
     of this Warrant, and the provisions of this Section 2(d) shall continue to
     apply. Upon such a change by a Holder of the Beneficial Ownership
     Limitation from such 4.99% limitation to such 9.99% limitation, the
     Beneficial Ownership Limitation may not be waived by such Holder. The
     provisions of this paragraph shall be implemented in a manner otherwise
     than in strict conformity with the terms of this Section 2(d) 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. The limitations contained in this
     paragraph shall apply to a successor holder of this Warrant.

     e) Mechanics of Exercise.

               i. Authorization of Warrant Shares. The Company covenants that
          all Warrant Shares which may be issued upon the exercise of the
          purchase rights represented by this Warrant will, upon exercise of the
          purchase rights represented by this Warrant, be duly authorized,
          validly issued, fully paid and nonassessable and free from all taxes,
          liens and charges in respect of the issue thereof (other than taxes in
          respect of any transfer occurring contemporaneously with such issue).

               ii. Delivery of Certificates Upon Exercise. Certificates for
          shares purchased hereunder shall be transmitted by the transfer agent
          of the Company to the Holder by crediting the account of the Holder's
          prime broker with the Depository Trust Company through its Deposit
          Withdrawal Agent Commission ("DWAC") system if the Company is a
          participant in such system, and otherwise by physical delivery to the
          address specified by the Holder in the Notice of Exercise within 3
          Trading Days from the delivery to the Company of the Notice of
          Exercise Form, surrender of this Warrant (if required) and payment of
          the aggregate Exercise Price as set forth above ("Warrant Share
          Delivery Date"). This Warrant shall be deemed to have been exercised
          on the date the Exercise Price is received by the Company. The Warrant
          Shares shall be deemed to have been issued, and Holder or any other
          person so designated to be named therein shall be deemed to have
          become a holder of record of such shares for all purposes, as of the
          date the Warrant has been exercised by payment to the Company of the
          Exercise Price and all taxes required to be paid by the Holder, if
          any, pursuant to Section 2(e)(vii) prior to the issuance of such
          shares, have been paid.

                                        4
<PAGE>

               iii. Delivery of New Warrants Upon Exercise. If this Warrant
          shall have been exercised in part, the Company shall, at the request
          of a Holder and upon surrender of this Warrant certificate, at the
          time of delivery of the certificate or certificates representing
          Warrant Shares, deliver to Holder a new Warrant evidencing the rights
          of Holder to purchase the unpurchased Warrant Shares called for by
          this Warrant, which new Warrant shall in all other respects be
          identical with this Warrant.

               iv. Rescission Rights. If the Company fails to cause its transfer
          agent to transmit to the Holder a certificate or certificates
          representing the Warrant Shares pursuant to this Section 2(e)(iv) by
          the Warrant Share Delivery Date, then the Holder will have the right
          to rescind such exercise.

               v. Compensation for Buy-In on Failure to Timely Deliver
          Certificates Upon Exercise. In addition to any other rights available
          to the Holder, if the Company fails to cause its transfer agent to
          transmit to the Holder a certificate or certificates representing the
          Warrant Shares pursuant to an exercise on or before the Warrant Share
          Delivery Date, and if after such date the Holder is required by its
          broker to purchase (in an open market transaction or otherwise) shares
          of Common Stock to deliver in satisfaction of a sale by the Holder of
          the Warrant Shares which the Holder anticipated receiving upon such
          exercise (a "Buy-In"), then the Company shall (1) pay in cash to the
          Holder the amount by which (x) the Holder's total purchase price
          (including brokerage commissions, if any) for the shares of Common
          Stock so purchased exceeds (y) the amount obtained by multiplying (A)
          the number of Warrant Shares that the Company was required to deliver
          to the Holder in connection with the exercise at issue times (B) the
          price at which the sell order giving rise to such purchase obligation
          was executed, and (2) at the option of the Holder, either reinstate
          the portion of the Warrant and equivalent number of Warrant Shares for
          which such exercise was not honored or deliver to the Holder the
          number of shares of Common Stock that would have been issued had the
          Company timely complied with its exercise and delivery obligations
          hereunder. For example, if the Holder purchases Common Stock having a
          total purchase price of $11,000 to cover a Buy-In with respect to an
          attempted exercise of shares of Common Stock with an aggregate sale
          price giving rise to such purchase obligation of $10,000, under clause
          (1) of the immediately preceding sentence the Company shall be
          required to pay the Holder $1,000. The Holder shall provide the
          Company written notice indicating the amounts payable to the Holder in
          respect of the Buy-In, together with applicable confirmations and
          other evidence reasonably requested by the Company. Nothing herein
          shall limit a Holder's right to pursue any other remedies available to
          it hereunder, at law or in equity including, without limitation, a
          decree of specific performance and/or injunctive relief with respect
          to the Company's failure to timely deliver certificates representing
          shares of

                                        5
<PAGE>

          Common Stock upon exercise of the Warrant as required pursuant to the
          terms hereof.

               vi. No Fractional Shares or Scrip. No fractional shares or scrip
          representing fractional shares shall be issued upon the exercise of
          this Warrant. As to any fraction of a share which Holder would
          otherwise be entitled to purchase upon such exercise, the Company
          shall pay a cash adjustment in respect of such final fraction in an
          amount equal to such fraction multiplied by the Exercise Price.

               vii. Charges, Taxes and Expenses. Issuance of certificates for
          Warrant Shares shall be made without charge to the Holder for any
          issue or transfer tax or other incidental expense in respect of the
          issuance of such certificate, all of which taxes and expenses shall be
          paid by the Company, and such certificates shall be issued in the name
          of the Holder or in such name or names as may be directed by the
          Holder; provided, however, that in the event certificates for Warrant
          Shares are to be issued in a name other than the name of the Holder,
          this Warrant when surrendered for exercise shall be accompanied by the
          Assignment Form attached hereto duly executed by the Holder; and the
          Company may require, as a condition thereto, the payment of a sum
          sufficient to reimburse it for any transfer tax incidental thereto.

               viii. Closing of Books. The Company will not close its
          stockholder books or records in any manner which prevents the timely
          exercise of this Warrant, pursuant to the terms hereof.

          f) Call Provision. Subject to the provisions of Section 2(d) and this
     Section 2(f), if, after the Effective Date (i) the VWAP for each of 30
     consecutive Trading Days (the "Measurement Period", which 30 Trading Day
     period shall not have commenced until after the Effective Date) exceeds
     300% of the then Exercise Price (subject to adjustment for forward and
     reverse stock splits, recapitalizations, stock dividends and the like after
     the Initial Exercise Date) (the "Threshold Price") and (ii) the average
     daily volume for any Threshold Period, which Threshold Period shall have
     commenced only after the Effective Date, exceeds 100,000 shares of Common
     Stock per Trading Day (subject to adjustment for forward and reverse stock
     splits, recapitalizations, stock dividends and the like after the Initial
     Exercise Date), then the Company may, within one Trading Day of the end of
     such period, call for cancellation of all or any portion of this Warrant
     for which a Notice of Exercise has not yet been delivered (such right, a
     "Call"). To exercise this right, the Company must deliver to the Holder an
     irrevocable written notice (a "Call Notice"), indicating therein the
     portion of unexercised portion of this Warrant to which such notice
     applies. If the conditions set forth below for such Call are satisfied from
     the period from the date of the Call Notice through and including the Call
     Date (as defined below), then any portion of this Warrant subject to such
     Call Notice for which a Notice of Exercise shall not have been received by
     the Call Date will be cancelled at 6:30 p.m. (New York City time) on the
     tenth Trading Day after the date the Call Notice is received by the Holder
     (such date, the "Call Date"). Any unexercised

                                        6
<PAGE>

     portion of this Warrant to which the Call Notice does not pertain will be
     unaffected by such Call Notice. In furtherance thereof, the Company
     covenants and agrees that it will honor all Notices of Exercise with
     respect to Warrant Shares subject to a Call Notice that are tendered
     through 6:30 p.m. (New York City time) on the Call Date. The parties agree
     that any Notice of Exercise delivered following a Call Notice shall first
     reduce to zero the number of Warrant Shares subject to such Call Notice
     prior to reducing the remaining Warrant Shares available for purchase under
     this Warrant. For example, if (x) this Warrant then permits the Holder to
     acquire 100 Warrant Shares, (y) a Call Notice pertains to 75 Warrant
     Shares, and (z) prior to 6:30 p.m. (New York City time) on the Call Date
     the Holder tenders a Notice of Exercise in respect of 50 Warrant Shares,
     then (1) on the Call Date the right under this Warrant to acquire 25
     Warrant Shares will be automatically cancelled, (2) the Company, in the
     time and manner required under this Warrant, will have issued and delivered
     to the Holder 50 Warrant Shares in respect of the exercises following
     receipt of the Call Notice, and (3) the Holder may, until the Termination
     Date, exercise this Warrant for 25 Warrant Shares (subject to adjustment as
     herein provided and subject to subsequent Call Notices). Subject again to
     the provisions of this Section 2(f), the Company may deliver subsequent
     Call Notices for any portion of this Warrant for which the Holder shall not
     have delivered a Notice of Exercise. Notwithstanding anything to the
     contrary set forth in this Warrant, the Company may not deliver a Call
     Notice or require the cancellation of this Warrant (and any Call Notice
     will be void), unless, from the beginning of the 20th consecutive Trading
     Days used to determine whether the Common Stock has achieved the Threshold
     Price through the Call Date, (i) the Company shall have honored in
     accordance with the terms of this Warrant all Notices of Exercise delivered
     by 6:30 p.m. (New York City time) on the Call Date, (ii) the Registration
     Statement shall be effective as to all Warrant Shares and the prospectus
     thereunder available for use by the Holder for the resale of all such
     Warrant Shares and (iii) the Common Stock shall be listed or quoted for
     trading on the Trading Market, and (iv) there is a sufficient number of
     authorized shares of Common Stock for issuance of all Securities under the
     Transaction Documents, and (v) the issuance of the shares shall be in
     accordance with Section 2(d) herein. The Company's right to Call the
     Warrant shall be exercised ratably among the Holders based on each Holder's
     initial purchase of Common Stock.

     Section 3. Certain Adjustments.

          a) Stock Dividends and Splits. If the Company, at any time while this
     Warrant is outstanding: (A) pays a stock dividend or otherwise make a
     distribution or distributions on shares of its Common Stock or any other
     equity or equity equivalent securities payable in shares of Common Stock
     (which, for avoidance of doubt, shall not include any shares of Common
     Stock issued by the Company pursuant to this Warrant), (B) subdivides
     outstanding shares of Common Stock into a larger number of shares, (C)
     combines (including by way of reverse stock split) outstanding shares of
     Common Stock into a smaller number of shares, or (D) issues by
     reclassification of shares of the Common Stock any shares of capital stock
     of the Company, then in each case the Exercise Price shall be multiplied by
     a fraction of which the numerator shall be the number of shares of Common
     Stock (excluding treasury shares, if any) outstanding immediately before
     such event and of which the denominator shall be the number of

                                        7
<PAGE>

     shares of Common Stock outstanding immediately after such event and the
     number of shares issuable upon exercise of this Warrant shall be
     proportionately adjusted. Any adjustment made pursuant to this Section 3(a)
     shall become effective immediately after the record date for the
     determination of stockholders entitled to receive such dividend or
     distribution and shall become effective immediately after the effective
     date in the case of a subdivision, combination or re-classification.

          b) Subsequent Equity Sales.

               i. If the Company or any Subsidiary thereof, as applicable, at
          any time while this Warrant is outstanding, shall offer, sell, grant
          any option to purchase or offer, sell or grant any right to reprice
          its securities, or otherwise dispose of or issue (or announce any
          offer, sale, grant or any option to purchase or other disposition) any
          Common Stock or Common Stock Equivalents entitling any Person to
          acquire shares of Common Stock, at an effective price per share less
          than the then Exercise Price (such lower price, the "Base Share Price"
          and such issuances collectively, a "Dilutive Issuance"), as adjusted
          hereunder (if the holder of the Common Stock or Common Stock
          Equivalents so issued shall at any time, whether by operation of
          purchase price adjustments, reset provisions, floating conversion,
          exercise or exchange prices or otherwise, or due to warrants, options
          or rights per share which is issued in connection with such issuance,
          be entitled to receive shares of Common Stock at an effective price
          per share which is less than the Exercise Price, such issuance shall
          be deemed to have occurred for less than the Exercise Price on such
          date of the Dilutive Issuance), then the Exercise Price shall be
          reduced and only reduced to equal the Base Share Price and the number
          of Warrant Shares issuable hereunder shall be increased such that the
          aggregate Exercise Price payable hereunder, after taking into account
          the decrease in the Exercise Price, shall be equal to the aggregate
          Exercise Price prior to such adjustment.

               ii. If the Company or any Subsidiary there, as applicable, at any
          time while this Warrant is outstanding, shall offer, sell, grant any
          option to purchase or offer, sell or grant any right to reprice its
          securities, or otherwise dispose of or issue (or announce any offer,
          sale, grant or any option to purchase or other disposition) any Common
          Stock or Common Stock Equivalents entitling any Person to acquire
          shares of Common Stock, at an effective price per share less than the
          VWAP on either the Trading Day immediately prior to the date
          agreements for such issuance are entered into or the date such
          issuance is consummated, whichever results in a higher VWAP, but more
          than the then effective Exercise Price (which is addressed in 3(b)(i)
          above) (such lower price, the "Market Base Price" and such issuances
          collectively, a "Market Dilutive Issuance"), as adjusted hereunder (if
          the holder of the Common Stock or Common Stock Equivalents so issued
          shall at any time, whether by operation of purchase price adjustments,
          reset provisions, floating conversion, exercise or exchange prices or
          otherwise, or due to warrants, options or rights per share which is
          issued in connection with such issuance, be entitled to receive shares
          of Common Stock at an effective price per share which is less than the
          Exercise Price, such issuance

                                        8
<PAGE>

          shall be deemed to have occurred for less than the Exercise Price on
          such date of the Market Dilutive Issuance) then the Exercise Price
          shall be reduced to a price determined by multiplying the then
          effective Exercise Price by a fraction, the numerator of which is the
          number of shares of Common Stock issued and outstanding immediately
          prior to the Market Dilutive Issuance plus the number of shares of
          Common Stock which the aggregate offering price for such Market
          Dilutive Issuance would purchase at the then Market Base Price, and
          the denominator of which shall be the sum of the number of shares of
          Common Stock issued and outstanding immediately prior to the Market
          Dilutive Issuance plus the number of shares of Common Stock so issued
          or issuable in connection with the Market Dilutive Issuance and the
          number of Warrant Shares issuable hereunder shall be increased such
          that the aggregate Exercise Price payable hereunder, after taking into
          account the decrease in the Exercise Price, shall be equal to the
          aggregate Exercise Price prior to such adjustment..

               iii. Such adjustments shall be made whenever such Common Stock or
          Common Stock Equivalents are issued. Notwithstanding the foregoing, no
          adjustments shall be made, paid or issued under this Section 3(b) in
          respect of an Exempt Issuance. The Company shall notify the Holder in
          writing, no later than the Trading Day following the issuance of any
          Common Stock or Common Stock Equivalents subject to this section,
          indicating therein the applicable issuance price, or of applicable
          reset price, exchange price, conversion price and other pricing terms
          (such notice the "Dilutive Issuance Notice"). For purposes of
          clarification, whether or not the Company provides a Dilutive Issuance
          Notice pursuant to this Section 3(b), upon the occurrence of any
          Dilutive Issuance or Market Dilutive Issuance, as applicable, after
          the date of such Dilutive Issuance or Market Dilutive Issuance, as
          applicable, the Holder is entitled to receive a number of Warrant
          Shares based upon the Base Share Price or the price determined
          pursuant to 3(b)(ii), as applicable, regardless of whether the Holder
          accurately refers to the Base Share Price or such price determined
          pursuant to 3(b)(ii) in the Notice of Exercise.

          c) Pro Rata Distributions. If the Company, at any time prior to the
     Termination Date, shall distribute to all holders of Common Stock (and not
     to Holders of the Warrants) evidences of its indebtedness or assets
     (including cash and cash dividends) or rights or warrants to subscribe for
     or purchase any security other than the Common Stock (which shall be
     subject to Section 3(b)), then in each such case the Exercise Price shall
     be adjusted by multiplying the Exercise Price in effect immediately prior
     to the record date fixed for determination of stockholders entitled to
     receive such distribution by a fraction of which the denominator shall be
     the VWAP determined as of the record date mentioned above, and of which the
     numerator shall be such VWAP on such record date less the then per share
     fair market value at such record date of the portion of such assets or
     evidence of indebtedness so distributed applicable to one outstanding share
     of the Common Stock as determined by the Board of Directors in good faith.
     In either case the adjustments shall be described in a statement provided
     to the Holder of the portion of assets or evidences of indebtedness so
     distributed or such subscription rights applicable to one share of Common
     Stock. Such adjustment shall be made whenever any such

                                        9
<PAGE>

     distribution is made and shall become effective immediately after the
     record date mentioned above.

          d) Fundamental Transaction. If, at any time while this Warrant is
     outstanding, (A) the Company effects any merger or consolidation of the
     Company with or into another Person, (B) the Company effects any sale of
     all or substantially all of its assets in one or a series of related
     transactions, (C) any tender offer or exchange offer (whether by the
     Company or another Person) is completed pursuant to which holders of Common
     Stock are permitted to tender or exchange their shares for other
     securities, cash or property, or (D) the Company effects any
     reclassification of the Common Stock or any compulsory share exchange
     pursuant to which the Common Stock is effectively converted into or
     exchanged for other securities, cash or property (in any such case, a
     "Fundamental Transaction"), then, upon any subsequent exercise of this
     Warrant, the Holder shall have the right to receive, for each Warrant Share
     that would have been issuable upon such exercise immediately prior to the
     occurrence of such Fundamental Transaction, at the option of the Holder,
     (a) upon exercise of this Warrant, the number of shares of Common Stock of
     the successor or acquiring corporation or of the Company, if it is the
     surviving corporation, and any additional consideration (the "Alternate
     Consideration") receivable upon or as a result of such reorganization,
     reclassification, merger, consolidation or disposition of assets by a
     Holder of the number of shares of Common Stock for which this Warrant is
     exercisable immediately prior to such event or (b) if the Company is
     acquired in an all cash transaction, cash equal to the value of this
     Warrant as determined in accordance with the Black-Scholes option pricing
     formula. For purposes of any such exercise, the determination of the
     Exercise Price shall be appropriately adjusted to apply to such Alternate
     Consideration based on the amount of Alternate Consideration issuable in
     respect of one share of Common Stock in such Fundamental Transaction, and
     the Company shall apportion the Exercise Price among the Alternate
     Consideration in a reasonable manner reflecting the relative value of any
     different components of the Alternate Consideration. If holders of Common
     Stock are given any choice as to the securities, cash or property to be
     received in a Fundamental Transaction, then the Holder shall be given the
     same choice as to the Alternate Consideration it receives upon any exercise
     of this Warrant following such Fundamental Transaction. To the extent
     necessary to effectuate the foregoing provisions, any successor to the
     Company or surviving entity in such Fundamental Transaction shall issue to
     the Holder a new warrant consistent with the foregoing provisions and
     evidencing the Holder's right to exercise such warrant into Alternate
     Consideration. The terms of any agreement pursuant to which a Fundamental
     Transaction is effected shall include terms requiring any such successor or
     surviving entity to comply with the provisions of this Section 3(d) and
     insuring that this Warrant (or any such replacement security) will be
     similarly adjusted upon any subsequent transaction analogous to a
     Fundamental Transaction.

          e) Calculations. All calculations under this Section 3 shall be made
     to the nearest cent or the nearest 1/100th of a share, as the case may be.
     For purposes of this Section 3, the number of shares of Common Stock deemed
     to be issued and outstanding as of a given date shall be the sum of the
     number of shares of Common Stock (excluding treasury shares, if any) issued
     and outstanding.

                                       10
<PAGE>

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

          g) Notice to Holders.

               i. Adjustment to Exercise Price. Whenever the Exercise Price is
          adjusted pursuant to this Section 3, the Company shall promptly mail
          to each Holder a notice setting forth the Exercise Price after such
          adjustment and setting forth a brief statement of the facts requiring
          such adjustment. If the Company issues a variable rate security,
          despite the prohibition thereon in the Purchase Agreement, the Company
          shall be deemed to have issued Common Stock or Common Stock
          Equivalents at the lowest possible conversion or exercise price at
          which such securities may be converted or exercised in the case of a
          Variable Rate Transaction (as defined in the Purchase Agreement).

               ii. Notice to Allow Exercise by Holder. If (A) the Company shall
          declare a dividend (or any other distribution) on the Common Stock;
          (B) the Company shall declare a special nonrecurring cash dividend on
          or a redemption of the Common Stock; (C) the Company shall authorize
          the granting to all holders of the Common Stock rights or warrants to
          subscribe for or purchase any shares of capital stock of any class or
          of any rights; (D) the approval of any stockholders of the Company
          shall be required in connection with any reclassification of the
          Common Stock, any consolidation or merger to which the Company is a
          party, any sale or transfer of all or substantially all of the assets
          of the Company, of any compulsory share exchange whereby the Common
          Stock is converted into other securities, cash or property; (E) the
          Company shall authorize the voluntary or involuntary dissolution,
          liquidation or winding up of the affairs of the Company; then, in each
          case, the Company shall cause to be mailed to the Holder at its last
          address as it shall appear upon the Warrant Register of the Company,
          at least 20 calendar days prior to the applicable record or effective
          date hereinafter specified, a notice stating (x) the date on which a
          record is to be taken for the purpose of such dividend, distribution,
          redemption, rights or warrants, or if a record is not to be taken, the
          date as of which the holders of the Common Stock of record to be
          entitled to such dividend, distributions, redemption, rights or
          warrants are to be determined or (y) the date on which such
          reclassification, consolidation, merger, sale, transfer or share
          exchange is expected to become effective or close, and the date as of
          which it is expected that holders of the Common Stock of record shall
          be entitled to exchange their shares of the Common Stock for
          securities, cash or other property deliverable upon such
          reclassification, consolidation, merger, sale, transfer or share
          exchange; provided that the failure to mail such notice or any defect
          therein or in the mailing thereof shall not affect the validity of the
          corporate action required to be specified in such notice. The Holder
          is

                                       11
<PAGE>

          entitled to exercise this Warrant during the 20-day period commencing
          on the date of such notice to the effective date of the event
          triggering such notice.

     Section 4. Transfer of Warrant.

          a) Transferability. Subject to compliance with any applicable
     securities laws and the conditions set forth in Sections 5(a) and 4(d)
     hereof and to the provisions of Section 4.1 of the Purchase Agreement, this
     Warrant and all rights hereunder are transferable, in whole or in part,
     upon surrender of this Warrant at the principal office of the Company,
     together with a written assignment of this Warrant substantially in the
     form attached hereto duly executed by the Holder or its agent or attorney
     and funds sufficient to pay any transfer taxes payable upon the making of
     such transfer. Upon such surrender and, if required, such payment, the
     Company shall execute and deliver a new Warrant or Warrants in the name of
     the assignee or assignees and in the denomination or denominations
     specified in such instrument of assignment, and shall issue to the assignor
     a new Warrant evidencing the portion of this Warrant not so assigned, and
     this Warrant shall promptly be cancelled. A Warrant, if properly assigned,
     may be exercised by a new holder for the purchase of Warrant Shares without
     having a new Warrant issued.

          b) New Warrants. This Warrant may be divided or combined with other
     Warrants upon presentation hereof at the aforesaid office of the Company,
     together with a written notice specifying the names and denominations in
     which new Warrants are to be issued, signed by the Holder or its agent or
     attorney. Subject to compliance with Section 4(a), as to any transfer which
     may be involved in such division or combination, the Company shall execute
     and deliver a new Warrant or Warrants in exchange for the Warrant or
     Warrants to be divided or combined in accordance with such notice.

          c) Warrant Register. The Company shall register this Warrant, upon
     records to be maintained by the Company for that purpose (the "Warrant
     Register"), in the name of the record Holder hereof from time to time. The
     Company may deem and treat the registered Holder of this Warrant as the
     absolute owner hereof for the purpose of any exercise hereof or any
     distribution to the Holder, and for all other purposes, absent actual
     notice to the contrary.

          d) Transfer Restrictions. If, at the time of the surrender of this
     Warrant in connection with any transfer of this Warrant, the transfer of
     this Warrant shall not be registered pursuant to an effective registration
     statement under the Securities Act and under applicable state securities or
     blue sky laws, the Company may require, as a condition of allowing such
     transfer (i) that the Holder or transferee of this Warrant, as the case may
     be, furnish to the Company a written opinion of counsel (which opinion
     shall be in form, substance and scope customary for opinions of counsel in
     comparable transactions) to the effect that such transfer may be made
     without registration under the Securities Act and under applicable state
     securities or blue sky laws, (ii) that the holder or transferee execute and
     deliver to the Company an investment letter in form and substance
     acceptable to the Company and (iii) that the transferee be an "accredited
     investor" as

                                       12
<PAGE>

     defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated
     under the Securities Act or a qualified institutional buyer as defined in
     Rule 144A(a) under the Securities Act.

     Section 5. Miscellaneous.

          a) Title to Warrant. Prior to the Termination Date and subject to
     compliance with applicable laws and Section 4 of this Warrant, this Warrant
     and all rights hereunder are transferable, in whole or in part, at the
     office or agency of the Company by the Holder in person or by duly
     authorized attorney, upon surrender of this Warrant together with the
     Assignment Form annexed hereto properly endorsed. The transferee shall sign
     an investment letter in form and substance reasonably satisfactory to the
     Company.

          b) No Rights as Shareholder Until Exercise. This Warrant does not
     entitle the Holder to any voting rights or other rights as a shareholder of
     the Company prior to the exercise hereof. Upon the surrender of this
     Warrant and the payment of the aggregate Exercise Price (or by means of a
     cashless exercise), the Warrant Shares so purchased shall be and be deemed
     to be issued to such Holder as the record owner of such shares as of the
     close of business on the later of the date of such surrender or payment.

          c) Loss, Theft, Destruction or Mutilation of Warrant. The Company
     covenants that upon receipt by the Company of evidence reasonably
     satisfactory to it of the loss, theft, destruction or mutilation of this
     Warrant or any stock certificate relating to the Warrant Shares, and in
     case of loss, theft or destruction, of indemnity or security reasonably
     satisfactory to it (which, in the case of the Warrant, shall not include
     the posting of any bond), and upon surrender and cancellation of such
     Warrant or stock certificate, if mutilated, the Company will make and
     deliver a new Warrant or stock certificate of like tenor and dated as of
     such cancellation, in lieu of such Warrant or stock certificate.

          d) Saturdays, Sundays, Holidays, etc. If the last or appointed day for
     the taking of any action or the expiration of any right required or granted
     herein shall be a Saturday, Sunday or a legal holiday, then such action may
     be taken or such right may be exercised on the next succeeding day not a
     Saturday, Sunday or legal holiday.

          e) Authorized Shares.

               The Company covenants that during the period the Warrant is
          outstanding, it will reserve from its authorized and unissued Common
          Stock a sufficient number of shares to provide for the issuance of the
          Warrant Shares upon the exercise of any purchase rights under this
          Warrant. The Company further covenants that its issuance of this
          Warrant shall constitute full authority to its officers who are
          charged with the duty of executing stock certificates to execute and
          issue the necessary certificates for the Warrant Shares upon the
          exercise of the purchase rights under this Warrant. The Company will
          take all such reasonable action as may be necessary to assure that
          such Warrant Shares may be issued as provided herein without violation
          of any applicable law or regulation, or

                                       13
<PAGE>

          of any requirements of the Trading Market upon which the Common Stock
          may be listed.

               Except and to the extent as waived or consented to by the Holder,
          the Company shall not by any action, including, without limitation,
          amending its certificate of incorporation or through any
          reorganization, transfer of assets, consolidation, merger,
          dissolution, issue or sale of securities or any other voluntary
          action, avoid or seek to avoid the observance or performance of any of
          the terms of this Warrant, but will at all times in good faith assist
          in the carrying out of all such terms and in the taking of all such
          actions as may be necessary or appropriate to protect the rights of
          Holder as set forth in this Warrant against impairment. Without
          limiting the generality of the foregoing, the Company will (a) not
          increase the par value of any Warrant Shares above the amount payable
          therefor upon such exercise immediately prior to such increase in par
          value, (b) take all such action as may be necessary or appropriate in
          order that the Company may validly and legally issue fully paid and
          nonassessable Warrant Shares upon the exercise of this Warrant, and
          (c) use commercially reasonable efforts to obtain all such
          authorizations, exemptions or consents from any public regulatory body
          having jurisdiction thereof as may be necessary to enable the Company
          to perform its obligations under this Warrant.

               Before taking any action which would result in an adjustment in
          the number of Warrant Shares for which this Warrant is exercisable or
          in the Exercise Price, the Company shall obtain all such
          authorizations or exemptions thereof, or consents thereto, as may be
          necessary from any public regulatory body or bodies having
          jurisdiction thereof.

          f) Jurisdiction. All questions concerning the construction, validity,
     enforcement and interpretation of this Warrant shall be determined in
     accordance with the provisions of the Purchase Agreement.

          g) Restrictions. The Holder acknowledges that the Warrant Shares
     acquired upon the exercise of this Warrant, if not registered, will have
     restrictions upon resale imposed by state and federal securities laws.

          h) Nonwaiver and Expenses. No course of dealing or any delay or
     failure to exercise any right hereunder on the part of Holder shall operate
     as a waiver of such right or otherwise prejudice Holder's rights, powers or
     remedies, notwithstanding the fact that all rights hereunder terminate on
     the Termination Date. If the Company willfully and knowingly fails to
     comply with any provision of this Warrant, which results in any material
     damages to the Holder, the Company shall pay to Holder such amounts as
     shall be sufficient to cover any costs and expenses including, but not
     limited to, reasonable attorneys' fees, including those of appellate
     proceedings, incurred by Holder in collecting any amounts due pursuant
     hereto or in otherwise enforcing any of its rights, powers or remedies
     hereunder.

                                       14
<PAGE>

          i) Notices. Any notice, request or other document required or
     permitted to be given or delivered to the Holder by the Company shall be
     delivered in accordance with the notice provisions of the Purchase
     Agreement.

          j) Limitation of Liability. No provision hereof, in the absence of any
     affirmative action by Holder to exercise this Warrant or purchase Warrant
     Shares, and no enumeration herein of the rights or privileges of Holder,
     shall give rise to any liability of Holder for the purchase price of any
     Common Stock or as a stockholder of the Company, whether such liability is
     asserted by the Company or by creditors of the Company.

          k) Remedies. Holder, in addition to being entitled to exercise all
     rights granted by law, including recovery of damages, will be entitled to
     specific performance of its rights under this Warrant. The Company agrees
     that monetary damages would not be adequate compensation for any loss
     incurred by reason of a breach by it of the provisions of this Warrant and
     hereby agrees to waive the defense in any action for specific performance
     that a remedy at law would be adequate.

          l) Successors and Assigns. Subject to applicable securities laws, this
     Warrant and the rights and obligations evidenced hereby shall inure to the
     benefit of and be binding upon the successors of the Company and the
     successors and permitted assigns of Holder. The provisions of this Warrant
     are intended to be for the benefit of all Holders from time to time of this
     Warrant and shall be enforceable by any such Holder or holder of Warrant
     Shares.

          m) Amendment. This Warrant may be modified or amended or the
     provisions hereof waived with the written consent of the Company and the
     Holder.

          n) Severability. Wherever possible, each provision of this Warrant
     shall be interpreted in such manner as to be effective and valid under
     applicable law, but if any provision of this Warrant shall be prohibited by
     or invalid under applicable law, such provision shall be ineffective to the
     extent of such prohibition or invalidity, without invalidating the
     remainder of such provisions or the remaining provisions of this Warrant.

          o) Headings. The headings used in this Warrant are for the convenience
     of reference only and shall not, for any purpose, be deemed a part of this
     Warrant.

                              ********************

                                       15
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated:  December [____, 2005

                                                CDKNET.COM, INC.

                                                By:
                                                    ---------------------------
                                                    Name:
                                                    Title:

                                       16
<PAGE>

                               NOTICE OF EXERCISE

TO: CDKNET.COM, INC.

     (1) The undersigned hereby elects to purchase ________ Warrant Shares of
the Company pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

     (2) Payment shall take the form of (check applicable box):

          [ ] in lawful money of the United States; or

          [ ] the cancellation of such number of Warrant Shares as is necessary,
          in accordance with the formula set forth in subsection 2(c), to
          exercise this Warrant with respect to the maximum number of Warrant
          Shares purchasable pursuant to the cashless exercise procedure set
          forth in subsection 2(c).

     (3) Please issue a certificate or certificates representing said Warrant
Shares in the name of the undersigned or in such other name as is specified
below:

         ________________________________________

The Warrant Shares shall be delivered to the following:

         ________________________________________
         ________________________________________
         ________________________________________

     (4) Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity: ______________________________________________________
SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: _________________________
Name of Authorized Signatory: __________________________________________________
Title of Authorized Signatory: _________________________________________________
Date: __________________________________________________________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

     FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

_______________________________________________ whose address is

_________________________________________________________________.

_________________________________________________________________

                                          Dated:  _________, ____

                  Holder's Signature: ___________________________

                  Holder's Address: _____________________________

                                    _____________________________

Signature Guaranteed:  __________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

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