Document:

Unassociated Document

    CONSULTING
      AGREEMENT

    

    This
      AGREEMENT (“Agreement”), dated as of ___________, 2006 (the “Effective Date”),
      is made by and between ________________________
      (“Company”)
      and Plaza
      Consulting Group of PR Inc. (“Consultant”),
      each having a business address as set forth on the signature page hereof and
      sometimes hereinafter referred to as a “Party” or collectively as
      the Parties.

    

    In
      consideration of Consultant’s engagement hereunder, and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Parties agree to the following terms and
      conditions:

    

    Section
      1. Services.
      The
      nature of the services to be performed by Consultant and the deliverables to
      be
      provided to Company in connection therewith (collectively, the “Services”), as
      well as the timing, cost and payment schedule with respect to such Services,
      shall be as specifically set forth in Exhibit
      A. 

    

    Section
      2. Term. The
      term
      of this Agreement shall commence on the Effective Date and continue in fill
      force and effect until _________, 2006 (the “Term”), unless sooner terminated
      pursuant to Section 4.
      The
      Term
      may be modified or extended by the Parties subject to Section
      14(m).

    

    Section
      3. Payment/Reimbursement. Each
      request for payment and/or reimbursement shall be (a) in accordance
      with the terms of this Agreement, including Company’s Reimbursement Policy, a
      copy of which
      is
      attached hereto as Exhibit
      B, and
      (b)
      accompanied by an invoice from Consultant reasonably documenting actual costs
      incurred and/or fees earned (as contemplated by Exhibit
      A).
      All
      fees and reimbursable expenses relating to the Services described in Exhibit
      A
      shall be payable and invoiced upon completion of all Services, unless a
      different schedule is specified in Exhibit A. Invoices received and thereafter
      approved for payment by Company shall be paid to Consultant within 30 days
      after
      Company’s approval thereof. Any fees of and/or costs incurred by Consultant
      which exceed those set forth in Exhibit A shall be at the sole risk and expense
      of Consultant unless authorized by Company in writing prior to being earned
      or
      incurred.

    

    Section
      4. Termination.
      This
      Agreement and/or the Services shall be immediately terminable at any time by
      Company upon not less than 30 days’ written notice to Consultant. Upon the
      effective date of any such termination, Consultant shall immediately cease
      work
      on the Services, deliver to Company all work in progress, and return all
      Confidential Information (as defined in Section 5). Upon termination, Company’s
      sole obligation to Consultant shall be to pay Consultant, subject to Section
      3,
      any monies due Consultant for satisfactory work actually performed and
      reasonable expenses actually incurred or which Consultant has irrevocably and
      unavoidably committed to incur (with the authorization of Company) prior to
      the
      effective date of termination. Any unearned or unexpended portion of monies
      previously paid by Company to Consultant shall be refunded promptly to
      Company.

     

    Section
      5.
      Confidential Information.

    

    (a) Consultant
      and its directors, officers, employees, representatives and agents (each a
      “Representative”) may obtain, receive or have access to certain materials,
      information, and/or data relating to the intellectual property, know-how,
      businesses, operations, finances and/or commercial, marketing, research and
      development and/or other plans and strategies of Company or its affiliates,
      which Company or its affiliates considers to be confidential and proprietary.
      All such materials, information and/or data, together with all copies,
      summaries, notes, analyses and/or studies thereof or pertaining thereto and
      any
      data, reports, studies, analyses and/or other work product produced by
      Consultant as part of the Services, whether written or recorded in electronic
      or
      other format and on whatever media, are herein collectively referred to as
      “Confidential Information.”

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) During
      the Term and for a period of at least 5
      years
      thereafter (including following any termination), Consultant shall, and shall
      cause each of Consultant’s Representatives to, hold in confidence and refrain
      from disclosing and/or using for the benefit of Consultant, any of its
      Representatives or any third party any and all Confidential Information.
      Consultant will not, and will not permit any of its Representatives to, use
      Confidential Information for any purpose other than in carrying out Consultant’s
      obligations under this Agreement without the prior written consent of Company.
      These restrictions shall not apply to information which (i) is or becomes public
      knowledge (through no act or omission of Consultant or any of its
      Representatives), (ii) is lawfully made available to Consultant by an
      independent third party which does not owe to Company any duty of
      confidentiality with respect to such information (and such right can be properly
      demonstrated by Consultant), (iii) is already in Consultant’s possession at the
      time of initial receipt from Company (and such prior possession can be properly
      demonstrated by Consultant), (iv) is independently developed by Consultant
      or
      its Representatives (and such independent development can be properly
      demonstrated by Consultant), or (v) is required by order of any governmental
      authprity or agency to be disclosed by Consultant; provided,
      however, that
      Consultant shall give Company sufficient prior written notice of such proposed
      disclosure to permit it to seek a protective or similar order and Consultant
      shall disclose only the minimum Confidential Information required to be
      disclosed in order to comply, whether or not Company seeks or obtains any such
      protective or other similar order.

    

    (c) Consultant
      shall provide the Confidential Information received hereunder only to
      Consultant’s Representatives who are directly involved in the performance of the
      Services and who are bound, by contract or otherwise, to maintain the
      confidentiality of the Confidential Information. Consultant agrees to (i) advise
      Consultant’s Representatives of the proprietary nature of the Confidential
      Information and the terms and conditions of this Agreement requiring that the
      confidentiality of such information be maintained and (ii) use all reasonable
      safeguards to prevent unauthorized use or disclosure by its Representatives.
      Consultant shall be responsible for any breach of this Agreement by any of
      its
      Representatives.

    

    (d) All
      Confidential Information which Consultant or any of its Representatives shall
      obtain or be given access pursuant to or in connection with this Agreement
      shall
      be and remain the sole property of Company, and Consultant shall have no rights
      or interests (except as expressly provided herein) to or in such Confidential
      Information. Immediately upon expiration or termination of this Agreement,
      Consultant shall return to Company all Confidential Information (including
      all
      copies thereof) then in the possession of Consultant or any of its
      Representatives.

    

    Section
      6. Ability to Perform. Consultant
      agrees promptly to inform Company of any event or change in circumstances which
      may negatively affect Consultant’s ability to perform any of its obligations
      under this Agreement in the manner contemplated by the Parties.

    

    Section
      7.
      Relationship
      with Company. Consultant
      agrees that, in its relationship with Company under this Agreement, it is acting
      in the capacity of an independent contractor and that it has no
      authority
      to represent or act on behalf of Company without Company’s prior written
      consent. Consultant shall not hold itself out to any third person as purporting
      to act on behalf of, or serving as the agent of, Company, and Consultant is
      not
      authorized to enter into any agreements, whether oral or written, on Company’s
      behalf.

    

    Section
      8. Compliance with Laws. Consultant
      represents, warrants and
      covenants that it shall, and shall cause its Representatives to, comply with
      all
      applicable local, state and federal laws, rules and regulations.

    

    Section
      9. Indemnification; Limitation on Damages.

    

    (a) Each
      Party shall indemnify and hold harmless the other Party, its subsidiaries and
      other affiliates, and their respective Representatives from and against all
      liabilities, losses, claims, costs, expenses (including reasonable attorneys’
fees) and damages arising out of or resulting from any willful misconduct or
      negligent act or omission of the indemnifying Party or its
      Representatives,
      any
      breach of this Agreement by the indemnifying Party, or any violation by the
      indemnifying Party and/or its Representatives of any local, state or federal
      law, rule or regulation applicable to the performance of the indemnifying
      Party’s obligations under this Agreement.

    

    (b)
      Consultant shall not assert and hereby waives any claim or cause of action
      it
      may now have or hereafter acquire against Company and its affiliates on any
      theory of liability for any one or more of special, indirect, incidental,
      exemplary, consequential or punitive damages in connection with or as a result
      of this Agreement or the transactions contemplated hereby, it being the
      intention of the Parties and an inducement to Company to enter into this
      Agreement that Company may only be liable under this Agreement for actual and
      direct damages.

    

    
      
        
        

      

      
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    Section
      10. Intellectual Property.

    

    (a) All
      of
      Consultant’s work product under this Agreement and all concepts, inventions,
      ideas, patent rights, data, trademarks, and copyrights which are related to,
      arise out of, or developed in connection with (i) Consultant’s work product or
      (ii) any and all Services shall be the exclusive property of, and all ownership
      rights therein shall vest in, Company. Consultant agrees to sign all necessary
      documents or take such other actions as Company may reasonably request in order
      to perfect any and all such rights.

    

    (b) The
      Parties expressly agree that all works created pursuant to this Agreement are
      Works Made For Hire, as defined in the U.S. Copyright Act, 17 U.S.C. §101, and
      shall vest in Company as author. All other work product, whether copyrightable
      or not, including without limitation any works which may be deemed by competent
      authority not to be Works Made For Hire, created pursuant to this Agreement,
      are
      hereby assigned to Company, including without limitation all right, title and
      interest in and to the copyright thereof throughout the world, all renewals
      and
      extensions thereof and the right to make and distribute copies in any media,
      to
      translate, and/or make derivative works therefrom. Consultant agrees to execute
      and to secure the execution from the applicable authors retained by Consultant
      all registrations, assignments, transfer documents and other instruments
      necessary or desirable in the reasonable opinion of Company to record any
      assignment or registration of copyright or other transfer of ownership in any
      work transferred to Company pursuant to this Agreement.

    

    (c) Notwithstanding
      the foregoing, Consultant shall retain sole and exclusive ownership of all
      right, title and interest to and in its proprietary information, templates,
      processes, methodologies, inventions, patents, know-how and software owned
      by it
      as of the Effective Date, and all derivative works based upon an improvement
      to
      any of the foregoing, provided that the derivative works or improvements (i)
      are
      of general application, (ii) do not contain any, or are not developed using
      any,
      Company Confidential Information or other specific information about or relating
      to Company or its products, processes, plans or finances and (iii) were
      discovered, created or developed solely by Consultant without assistance from
      Company during Consultant’s provision of the Services for Company (all of the
      foregoing, the “Consultant Intellectual Property”). To the extent Consultant
      Intellectual Property is necessary for the use of the Services or deliverables
      provided under this Agreement, Consultant grants to Company for the benefit
      of
      Company and its affiliates, agents, successors, permitted assigns and
      contractors the irrevocable, perpetual, non-exclusive, worldwide, royalty-free,
      paid-up right and License to Consultant Intellectual Property for Company’s use
      of such Services or deliverables.

    

    Section
      11. General Representations, Warranties and Covenants.

    

    (a) Consultant
      represents, warrants and covenants that it shall perform the Services in a
      professional and workmanlike manner.

    

    (b) Consultant
      represents, warrants and covenants that all materials, items furnished and
      all
      workmanship shall be of high quality. Consultant shall replace or reperform,
      as
      deemed necessary by Company, any of the materials, items furnished or Services
      that are found lacking or defective, in the reasonable opinion of Company,
      without additional cost to Company.

    

    (c) Consultant
      represents and warrants that, as of the Effective Date, it is not a party to
      any
      oral or written contract or understanding with any third party that is
      inconsistent with this Agreement and/or Consultant’s obligations or performance
      under this Agreement or that will in any way limit or conflict with its ability
      to fulfill the terms of this Agreement. Consultant further represents, warrants
      and covenants that it will not enter into any such contract or understanding
      during the Term.

    

    (d) Consultant
      represents and warrants that neither Consultant nor any Representative of
      Consultant who is directly concerned with the performance of the Services has
      been debarred pursuant to the Federal Food, Drug and Cosmetic Act (“FDCA”) or is
      currently excluded, debarred, suspended, or otherwise ineligible to participate
      in the Federal health care programs or in Federal procurement or nonprocurement
      programs. Moreover, if Consultant or any of its Representatives who is directly
      concerned with the performance of the Services subsequently becomes debarred,
      excluded, suspended or ineligible as set forth in the preceding sentence, or
      is
      convicted of a criminal offense that falls within the ambit of the Federal
      statute providing for mandatory exclusion from participation in Federal health
      care programs but has not yet been excluded, debarred, suspended, or otherwise
      declared ineligible to participate in those programs, Consultant agrees
      immediately to notify Company of such event. Consultant represents that it
      has,
      prior to entering this Agreement, complied with the requirements set forth
      in
Exhibit
      C
      attached
      hereto, and acknowledges that its completion of the Certification form in
Exhibit
      C
      is being
      relied upon by Company as an inducement to entering into the Agreement.
      Consultant covenants and warrants that it shall comply with the requirements
      set
      forth in Exhibit
      C
      for the
      entire Term. Failure of Consultant to comply with this provision or with the
      requirements set forth in Exhibit
      C
      shall be
      a material breach of this Agreement.

    

    
      
        
        

      

      
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    (e) Consultant
      represents, warrants and covenants that neither Consultant nor any
      Representative or subcontractor of Consultant which is concerned with the
      performance of the Services is, or during the Term will become, the target
      of or
      designated under any sanctions program that is established by statute or
      regulation of the United States, by Executive Order of the President of the
      United States or by designations of any department or agency of the United
      States government including those designations reflected in the “List of
      Specially Designated Nationals and Blocked Persons” of the Office of Foreign
      Assets Control, U.S. Department of the Treasury
      (http://www.treas.gov/offices/enforcement/ofac/sdn/tllsdn.pdf). If Consultant
      or
      any Representative or subcontractor of Consultant which is concerned with the
      performance of the Services becomes the target of or designated under any such
      sanctions program during the Term, Consultant shall immediately notify Company
      thereof. Any misrepresentation or failure by Consultant to comply with this
      Section 11(e) shall be a material breach of this Agreement, and in such event
      Company may terminate this Agreement without payment of penalty or damages
      or
      further performance of any kind and refuse delivery of any goods, technology
      or
      services regardless of any existing contractual obligation.

    

    (f) Consultant
      shall neither disclose to Company or induce Company to use any secret or
      confidential information or material belonging to any third party.

    

    (g) Consultant
      shall provide to Company with any deliverables to be provided under this
      Agreement a written summary sheet listing any third party software or other
      intellectual property contained within or necessary for the use of the
      deliverables or Services (collectively, the “Third-Party Intellectual
      Property”), if any, together with licenses permitting Company and its affiliates
      to use such Third-Party Intellectual Property in connection with its use of
      the
      deliverables or Services and the terms, conditions, and status of such licenses.
      Except for the Third-Party Intellectual Property listed in the written summary
      provided to Company pursuant to the preceding sentence, Consultant represents
      and warrants that all work product created under this Agreement shall be
      original work of Consultant or in the public domain. Consultant represents
      and
      warrants that none of the Services, work product or deliverables delivered
      or
      created pursuant to this Agreement infringes or violates any copyright,
      trademark, patent, trade secret or other intellectual property or other rights
      of any third party, and that Consultant has all of the rights necessary to
      perform its obligations hereunder without infringing any third party rights.
      Consultant further represents and warrants that it has all rights, licenses
      and
      interests necessary to provide the Third Party Intellectual Property to Company
      and its affiliates and to grant Company and its affiliates the rights and
      licenses to use such Third-Party Intellectual Property for the purposes
      contemplated by this Agreement. Consultant grants to Company for the benefit
      of
      Company and its affiliates, agents, successors, permitted assigns and
      contractors the royalty-free paid-up right and license to use such Third-Party
      Intellectual Property for the purposes contemplated by this
      Agreement.

    

    

    (h) Consultant
      agrees that, in subcontracting any portion of the Services or in arranging
      for
      supplies, materials or other items or services required for completion of the
      Services which are authorized to be billed to Company hereunder as an expense,
      Consultant shall not enter into any agreement or arrangement which is not
      terminable without cause and without the consent of the subcontractor on terms
      no more restrictive than those set forth in Section 4. Consultant shall assign
      the unused portion of any such agreement or arrangement to Company at Company’s
      request, and such assignment shall be permitted by such agreement or
      arrangement.

    

    (i) Consultant
      agrees that performance by Consultant, its employees, agents, and/or
      subcontractors of the Services shall be in compliance with all applicable local,
      state, and federal laws, rules, and regulations, including without limitation
      the applicable provisions of the Federal Occupational Safety and Health Act
      of
      1970, as amended, the Fair Labor Standards Act, the Fair Employment Practices
      Law, the Equal Pay Act, and the Immigration Reform Act of 1986. Where
      applicable, Consultant shall comply with Executive Order 11246, the
      Rehabilitation Act of 1973 and the Vietnam Era Veteran Readjustment Assistance
      Act.

    

    (k) Consultant
      shall, prior to the start of Services by any Consultant Representative,
      determine and confirm in writing to Company that any such Consultant’s
      Representatives are legally authorized to work in the United States. Consultant
      shall have the responsibility to complete the Department of Labor’s Form 1-9 and
      to retain it for the statutorily designated period. If so requested by Company,
      Consultant shall provide copies of such Forms 1-9 to Company from time to time
      unless such disclosure shall be prohibited by applicable law.

    

    
      
        
        

      

      
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    Section
      12. Insurance.
      Consultant
      shall, during the Term, at its own cost and expense, maintain in full force
      and
      effect the following insurance coverage:

    

    
      	 	
              (i)

            	
              Worker’s
                Compensation Insurance in accordance with the statutory requirements
                of
                the state(s) in which the Services are to be performed;

            

    

    

    
      	 	
              (ii)

            	
              Employer’s
                Liability Insurance with a minimum limit of
                $1,000,000;

            

    

    

    
      	 	
              (iii)

            	
              Automobile
                Liability Insurance covering all owned, non-owned and hired automobiles,
                with a minimum $1,000,000 combined single limit for bodily injury
                and
                property damage per occurrence; and

            

    

    

    
      	 	
              (iv)

            	
              General
                Liability Insurance, including contractual liability covering Consultant’s
                obligations to indemnify Company under this Agreement, with a minimum
                $
                2,500,000 combined single limit for bodily injury and property damage
                per
                occurrence.

            

    

    

    Consultant
      shall, within 15 days after request by Company, furnish to Company a certificate
      of insurance evidencing the foregoing insurance which shall provide for 30
      days’
prior written notice to Company in the event of cancellation or any material
      change in such insurance.

    

    Section
      13. Audits.

    

    (a) Consultant
      shall maintain accurate and complete records of all contracts, papers,
      correspondence, copybooks, accounts, invoices, and/or other information in
      Consultant’s possession relating to this Agreement (collectively, “Records”).
      The Records shall be maintained in accordance with recognized commercial
      accounting practices and retained during the Term and thereafter for a period
      of
      3 years. Consultant agrees to permit Company or Company’s Representatives to
      examine and audit the Records at no charge to Company, with prior written
      notification and during normal business hours. Company shall not have access
      to
      individual payroll records, but shall have access to time sheets and related
      records to the extent necessary to verify charges based on hourly
      billings.

    

    (b) To
      the
      extent that the Services include (i) operation or management of any Company
      website, (ii) access by Company to a website, database, server or other service
      which will cause Consultant to be in possession of any information belonging
      to
      Company or which Company is required to safeguard or maintain, or (iii) Services
      which otherwise permits Consultant to electronically store, access or transmit
      information belonging to Company or which Company is required to safeguard
      or
      maintain, Company shall have the right, but not the obligation, to conduct
      a
      data security audit of Consultant’s systems and premises to evaluate
      Consultant’s anti-virus, anti-hacker, encryption, firewall and other data
      security technology, and general computer controls, measures and
      practices.

    

    (c) No
      failure or delay by Company to exercise its audit rights or to discover issues,
      errors, discrepancies or other problems in any such audit shall relieve
      Consultant of any liability, even if such audit would or should have discovered
      issues, errors, discrepancies or other problems leading to or contributing
      to
      Consultant’s liability or obligation.

    

    Section
      14. Miscellaneous.

    

    (a) Notices.
      All
      notices, approvals, demands, requests, consents, waivers and other
      communications (each a “Notice”) shall be in writing. Notices shall be validly
      given or served when (i) hand delivered, (ii) delivered by recognized commercial
      overnight courier service, or (iii) delivered by registered or certified first
      class United States mail, postage prepaid, return receipt requested, to the
      appropriate Party at its address set forth on the signature page hereof, or
      to
      such other address as shall have been specified by such Party in a Notice given
      hereunder.

    

    
      
        
        

      

      
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    (b) Assignment.
      Consultant shall not assign this Agreement to any person or entity (including
      by
      operation of law, judicial process or otherwise) without the prior written
      consent of Company, which consent may be withheld for any reason or without
      reason. Company shall be entitled to assign this Agreement to any of its
      subsidiaries or other affiliates (including by operation of law, judicial
      process or otherwise) or any successor to Company’s business or operations
      without prior notice to or consent from Consultant.

    

    (c) Successors
      and Assigns.
      Subject
      to Section 14(b), this Agreement shall inure to the benefit of and be binding
      on
      Company, Consultant and their respective permitted successors and
      assigns.

    

    (d) Headings.
      The
      headings used in this Agreement are merely for convenience and shall not limit,
      alter or be used to interpret the meaning of any section hereof.

    

    (e) Severability.
      If any
      portion of this Agreement or the application thereof to any Party is held by
      a
      court of competent jurisdiction to be invalid, illegal, non-binding, or
      unenforceable in any respect, this Agreement shall be construed as if such
      invalid, illegal, non-binding or unenforceable portion had never been contained
      herein, and the remaining portions hereof or applications to a Party shall
      remain in full force and effect.

    

    (f) Counterparts;
      Facsimile Signatures.
      This
      Agreement may be executed in counterparts, each of which shall be an original
      and all of which shall constitute one and the same instrument. Executed
      signatures pages to this Agreement may be delivered by facsimile (including
      copy
      sent by e-mail) and such facsimiles shall be deemed as if actual signature
      pages
      had been delivered.

    

    (g) Governing
      Law.
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH
      THE
      LAWS OF THE COMMONWEALTH OF PUERTO RICO WITHOUT GIVING EFFECT TO THE CONFLICTS
      OF LAWS PRINCIPLES THEREOF.

    

    (h) Jurisdiction;
      Trial by Jury Waiver.
      SUBJECT
      TO SECTION 14(o); COMPANY AND CONSULTANT IRREVOCABLY AND UNCONDITIONALLY AGREE
      THAT ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
      OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE BROUGHT ONLY IN THE
      UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO OR IN ANY COURT
      OF
      THE STATE OF COMMONWEALTH OF PUERTO RICO. TO THE FULLEST EXTENT PERMISSIBLE
      BY
      LAW, EACH PARTY HEREBY CONSENTS TO THE PERSONAL JURISDICTION AND VENUE OF SUCH
      COURTS AND HEREBY WAIVES ANY CLAIM OR OBJECTION THAT SUCH COURT IS AN
      INCONVENIENT FORUM. COMPANY AND CONSULTANT IRREVOCABLY AND UNCONDITIONALLY
      WAIVE
      THE RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING OF ANY KIND OR
      NATURE TN ANY COURT TO WHICH THEY BECOME PARTIES RELATING TO THIS AGREEMENT
      OR
      ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

    

    (i) Waivers;
      Cumulative Rights and Remedies.
      No
      failure or delay on the part of either Consultant or Company in exercising
      any
      right hereunder shall operate as a waiver of, or impair, any such right. No
      single or partial exercise of any such right shall preclude any other or further
      exercise thereof or the exercise of any other right. No waiver of any such
      right
      shall have effect unless given in a signed, written document. No waiver of
      any
      such right shall be deemed a waiver of any other right hereunder.

    

    (j) Force
      Majeure.
      If the
      performance or observance of this Agreement or of any obligation herein is
      prevented or delayed by reason of an act of God, civil commotion, storm, fire,
      riots, strikes, legal moratorium, war, revolution or action by government,
      the
      Party so affected shall, upon prompt notice of such reason being given to the
      other Party, be excused from such performance or observance to the extent of
      such prevention or during the period of such delay, provided that the Party
      so
      affected shall use its reasonable best efforts to avoid or remove the cause
      or
      causes of non-performance and observance with utmost dispatch.

    

    (k) Further
      Assurances.
      Each
      Party will promptly do, execute, acknowledge, and deliver any and all further
      acts, documents, instruments, records, papers, and assurances as are reasonably
      necessary or required to carry out the intention and facilitate the observance
      and performance of this Agreement.

    

    
      
        
        

      

      
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    (l) No
      Publicity.
      Consultant shall not (i) use the name of Company in any publicity or advertising
      or (ii) issue a press release or otherwise publicize or disclose any information
      related to the existence of this Agreement or the terms and conditions hereof,
      without the prior written consent of Company.

    

    (m) Controlling
      Terms; Integration and Amendments.
      All
      Exhibits attached hereto are incorporated by reference just as if they were
      set
      forth in the text of this Agreement. No term, condition or other provision
      of
      any attachments to this Agreement shall supersede any term, condition or other
      provision of this Agreement and with respect to any inconsistency, conflict
      or
      ambiguity, this Agreement (including Exhibit
      B
      and
      Exhibit C)
      shall
      control. This Agreement represents the entire understanding between the Parties,
      and hereby supersedes all prior understandings and agreements, whether oral
      or
      written, between the Parties with respect to the Services. This Agreement may
      not be modified, amended, waived, or otherwise changed, in whole or in part,
      except in a writing that is signed by the Parties.

    

    (n) Survival.
      Sections
      3, 5, 9, 10, 11(a),
      11(b), 11(g), 13 and 14 shall
      survive termination of this Agreement. Termination of this Agreement shall
      not
      affect, or be construed as a waiver of, any claim of a Party arising from a
      breach or default under this Agreement by any other Party prior to
      termination.

    

    (o) Dispute
      Resolution.
      Any
      dispute arising out of or relating to this Agreement shall be resolved in
      accordance with the procedures specified in this Section
      14(o), which
      shall be the sole and exclusive procedures for the resolution of any such
      disputes.

    

    (i)
      The
      Parties shall attempt in good faith to resolve any dispute arising out of or
      relating to this Agreement promptly by negotiation between executives who have
      authority to settle the controversy and who are at a higher level of management
      than the persons with direct responsibility for administration of this
      Agreement. Any Party may give the other Party written notice of any dispute
      not
      resolved in the normal course of business. Within 20 days from the date of
      delivery of such notice, the receiving Party shall submit to the other Party
      a
      written response. The notice and response shall include (A) a statement of
      that
      Party’s position and a summary of arguments supporting that position, and (B)
      the name and title of the executive who will represent that Party and of any
      other person who will accompany the executive. Within 45 days from the date
      of
      delivery of the initial notice, the executives of both Parties shall meet at
      a
      mutually acceptable time and place, and thereafter as often as they reasonably
      deem necessary, to attempt to resolve the dispute. All reasonable requests
      for
      information made by one Party to the other Party shall be honored. All
      negotiations pursuant to this paragraph are confidential and shall be treated
      as
      compromise and settlement negotiations for purposes of applicable rules of
      evidence.

    

    (ii)
      If
      the dispute has not been resolved by negotiation as provided herein within
      45
      days from the date of the initial meeting of the executives provided for above,
      the Parties agree to attempt in good faith to settle the dispute by confidential
      non-binding mediation under the CPR Mediation Procedure then currently in
      effect. Unless otherwise agreed by the Parties, a single mediator will be
      selected from the CPR Panels of Distinguished Neutrals pursuant to the CPR
      Mediation Procedure then currently in effect. The Parties will share equally
      in
      the costs of the mediation.

    

    (iii)
      Any
      dispute arising out of or relating to this Agreement which has not been resolved
      by mediation as provided herein within 45 days from the date of the appointment
      of a mediator, shall be finally resolved by arbitration in accordance with
      the
      CPR Rules for Non-Administered Arbitration then currently in effect, by three
      arbitrators of whom each Party shall appoint one in accordance with the
‘screened’ appointment procedure provided in Rule 5.4
      of
      such
      rules and the third arbitrator shall be designated by CPR as provided in such
      rules. The arbitration shall be governed by the Federal Arbitration Act, 9
      U.S.C. §§l—16, and judgment upon the award rendered by the arbitrators may be
      entered by any court having jurisdiction thereof. The place of arbitration
      shall
      be the Commonwealth of Puerto Rico. The arbitrators shall have no power or
      authority, under the CPR Rules for Non-Administered Arbitration or otherwise,
      to
      relieve the Parties from their agreement hereunder to arbitrate or otherwise
      to
      amend or disregard any provision of this Agreement. In evaluating the claims
      of
      the Parties, the arbitrators shall be bound to apply and follow applicable
      law
      as set forth in Section
      14(g).

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (iv)
      A
      hearing before the arbitrators shall be held within 120 days from the date
      of
      the appointment of the third arbitrator. Prior to the hearing, the Parties
      shall
      be entitled to engage in discovery under procedures of the Federal Rules of
      Civil Procedure; provided,
      however, that
      a
      Party may not submit more than fifty written interrogatories or take more than
      four depositions, all of which shall be concluded not less than 30 days prior
      to
      the date of the hearing. At least five business days prior to the date of the
      hearing, each Party shah submit to the other Party a copy of all exhibits on
      which such Party intends to rely at the hearing, a pre-hearing brief not to
      exceed 35 pages and a proposed disposition of the dispute not to exceed five
      pages. The proposed disposition shall be limited to proposed rulings and
      remedies on each issue, and shall contain no argument on or analysis of the
      facts or issues. Within five business days after the close of the hearing,
      each
      Party may submit a post-hearing brief not to exceed five pages, and the
      arbitrators shall render their award no later than 30 days after the end of
      such
      hearing. Discovery may be further limited, at the discretion of the
      arbitrators.

    

    (v)
      Notwithstanding anything contained in this Section
      14(o)
      to the
      contrary, each Party shall have the right to institute judicial proceedings
      against the other Party, or anyone acting by, through or under such other Party,
      in order to enforce the instituting Party’s rights hereunder through specific
      performance, injunction or similar equitable relief. The statute of limitations
      of the Commonwealth of Puerto Rico applicable to the commencement of a lawsuit
      shall apply to the commencement of an arbitration hereunder, except that no
      defenses shall be available based upon the passage of time during any
      negotiation or mediation called for by this Section
      14(o).

    

    

    
 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    

    

    IN
      WITNESS WHEREOF, the
      Parties have caused this Agreement to be duly authorized, executed, and
      delivered as of the first date set forth above.

    

    

    Plaza
      Consulting Group of PR Inc.

    

    By:____________________________________

    Name:
      _________________________________

    Title:
      __________________________________

    

    

    

    

    Company

    

    By:____________________________________

    Name:
      _________________________________

    Title:
      __________________________________

    

    

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

     

    

    

    Exhibit
      A to Consulting Agreement

    

    

    

    

    PROJECT

    

    The
      Project consists of providing support for the following:

    

    

    

    

     

    

    

    PROJECT TIMING

    

    The
      final
      date for project completion is ____________________,
      2006.

    

    

    COST
      AND PAYMENT SCHEDULE

    

    The
      rate
      per hour is as follows:

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      following exhibits B and C or exhibits containing similar terms may be requested
      by one or more of our major customers

    

    

    Exhibit
      B to Consulting Agreement*

    

    

    

    REIMBURSEMENT
      POLICY

    

    Company
      will generally reimburse Consultant for all reasonable and necessary business
      expenditures incurred by Consultant and its Representatives associated with
      the
      Services. Such reimbursement is subject to the following conditions: (i)
      compliance with the terms of the Agreement, including this Exhibit
      B,
      (ii)
      the submission of detailed supporting receipts (summary credit card slips are
      not sufficient), and (iii) unless
      specifically agreed to in each instance by the Company employee managing the
      relevant Project (the “Project Supervisor”), the limitations, conditions and
      requirements set forth herein. Such reimbursable expenses include but are not
      limited to travel and subsistence expenses incurred as a direct result of the
      performance of Services hereunder and exclude personal entertainment and
      expenses which should otherwise likely be incurred.

    

    

    All
      reimbursable expense requests that do not conform to the limitations, conditions
      and requirements set forth below must be pre-approved in writing by the Project
      Supervisor. Detailed receipts (e.g.,
      itemized
      hotel bills but not summary credit card receipts) are not required for expenses
      included in the per diem
      amount
      set forth below.

    

    The
      following are the reimbursement policies applicable to this
      Agreement:

    

    Travel-Related
      Expenses

    
      	
              1.

            	
              Consultant’s
                Representatives shall not travel at Company’s expenses unless such travel
                is required in order for Consultant to perform the
                Services.

            

    

    
      	
              2.

            	
              Consultant
                Representatives who travel in connection with the performance of
                the
                Services may only travel by business class travel if the actual scheduled
                flight time exceeds nine hours on any leg of the trip. The nine .hour
                requirements is for actual scheduled flight time only and does not
                include
                travel to and from the airport, lay-over time spent in an airport
                or
                airport delays.

            

    

    
      	
              3.

            	
              When
                Consultant’s Representatives are on-site at a Company facility or other
                location designated by Company (other than Consultant’s or one of its
                Representatives places of business or homes) (referred to herein
                as a
                “Work Site”) for less than one month, hotel rooms shall be booked through
                Company’s travel group. When such travel, either on one trip or a series
                of related trips, Consultant should discuss lodging arrangements
                with the
                Project Supervisor prior to making any
                arrangements.

            

    

    
      	
              4.

            	
              Company
                will reimburse Consultant for use by its Representatives of taxis
                or car
                service sedans for travel between (i) an airport and such Representative’s
                residence, and (ii) an airport or hotel and Work Sites on Company
                requested business. Whenever available, unless it would interfere
                with the
                timely availability of Consultant’s Representatives at a Work Site, free
                or low cost hotel shuttles should be used when traveling between
                a hotel
                and a Company site.

            

    

    
      	
              5.

            	
              Auto
                rental is preferred if Consultant’s Representative is at a Company Site
                for longer than 24 hours, unless local conditions would make use
                of taxis
                or car service sedans less expensive. In these instances, Consultant
                should obtain the agreement of the Project Supervisor on its choice
                of
                transportation.

            

    

    
      	
              6.

            	
              When
                automobile rental is authorized or required, Consultant’s Representatives
                should share such rental care unless such sharing would likely interfere
                with the performance by them of the Services. Consultant should rent
                (or
                cause its Representative to rent) a mid-size car unless more than
                two
                people will be sharing the same vehicle, in which case a full-size
                car is
                permitted. Fuel service options should not be utilized and will not
                be
                reimbursed. If Consultant or its Representative(s) requires an auto
                rental
                for a period of longer than three months, Consultant should so advise
                the
                Project Supervisor and Company will arrange for a “mini lease” agreement,
                on behalf of Consultant, for the required period. Leases will be
                booked
                through Company’s travel group for Work Sites in North America. For Work
                Sites outside North America, Consultant must obtain appropriate
                instruction from the Project
                Supervisor.

            

    

    
    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7.

            	
              Where
                the use of personal automobiles of Consultant’s Representative(s) is
                required or authorized in the US and Puerto Rico, daily travel mileage
                between the Work Site and Consultant’s place of business or such
                Representative’s residence or hotel, whichever is closer, beyond 35 miles
                each way will be compensated at the applicable rate approved and
                published
                by the U.S. Internal Revenue Service (“IRS”). Travel between Work Sites
                for business related requests shall also be compensated at such rate.
                Use
                by Consultant’s Representatives of their respective personal automobiles
                to travel to and from home on weekends will be compensated at such
                rate
                without regard to the 35-mile minimum distance referred to above.
                Use of
                personal automobiles at all other locations will be compensated according
                to Company’s policy applicable to such Work Site and must be discussed in
                advance by Consultant and with and approved by the Project Supervisor.
                No
                compensation will be paid for the use of personal vehicles where
                such use
                is not directly related to Company business. The reimbursement described
                in this. paragraph shall not apply to the use of rented or leased
                automobiles paid for by Company. In addition, any use of personal
                automobiles for trips in excess of 150 miles must be approved in
                advance
                by the Project Supervisor.

            

    

    
      	
              8.

            	
              If
                a Consultant Representative performs all of the work they are performing
                on behalf of Consultant for Company at a Work Site and such Representative
                will be away from home for an extended period, then with the prior
                approval of the Project Supervisor, Company will reimburse Consultant
                for
                the costs of such Representative to travel home on weekends not more
                frequently than every other weekend. Departure should take place
                from the
                Work Site no earlier than 12:00 noon on Friday (or the next preceding
                business day if Friday is a holiday at the relevant Work Site) and
                individuals should be available to begin work at Company’s site by 9:00 am
                Monday morning (or the next succeeding business day if Monday is
                a holiday
                at the relevant Work Site). Such travel at times other than on weekends
                will not be reimbursed by Company unless approved in advance by the
                Project Supervisor

            

    

    

    Personal
      and Living
      Expenses

     

    
      	
              1.

            	
              Unless
                alternative arrangement are agreed to by the Project Supervisor,
                in lieu
                of reimbursing Consultant for daily living expenses incurred by its
                Representatives while traveling for the performance of the Services
                Company shall pay to Consultant a per
                diem
                allowance of $___ for each traveling Representative for each day
                such
                representative is living away from his or her home for the performance
                of
                the Services. Such per diem allowance shall not be paid for travel
                not
                requiring an overnight stay at a hotel or other remote location.
                No per
                diem amount will be paid for any Consultant Representative while
                living at
                his or her home. No per diem amount will be paid for any Consultant
                representative for any day on which such Representative is not present
                at
                the Work Site for a minimum of 4 hours, except that the per diem
                allowance
                will be paid on weekends during which the Representative does not
                travel
                home pursuant to paragraph 9 above.

            

    

    
      	
              2.

            	
              Receipts
                are not required to be submitted for expenses included in the per
                diem allowance.
                The per
                diem allowance
                is the full and sole reimbursement for the following types of expenses
                incurred by Consultant and its Representatives while
                traveling:

            

    

    
      	 	
              •

            	
              Daily
                meals related to work days and weekends. Per diems will not be paid
                for
                travel days to or from the site (i.e. returning home or arriving
                at the
                location) unless a minimum of 4 hours are worked at the
                site.

            

    

    
      	 	
              •

            	
              Laundry

            

    

    
      	 	
              •

            	
              Tolls
                and parking

            

    

    
      	 	
              •

            	
              Phone
                calls, whether personal or business related, including mobile/cellular
                phones

            

    

    
      	 	
              •

            	
              Hotel
                internet access charges

            

    

     

    
      
        	
                3.

              	
                Company
                  will not reimburse Consultant for expenses incurred by its Representatives
                  for:

              

      

      
        	 	
                •

              	
                Clothing

              

      

      
        	 	
                •

              	
                Toiletries

              

      

      
        	 	
                •

              	
                Movies,
                  games and other personal
                  entertainment

              

      

      
        	 	
                •

              	
                Costs
                  incurred by guests of a
                  Representative

              

      

      
        	 	
                •

              	
                Exercise
                  room or gym charges

              

      

    

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Non-reimbursable
      Expenses

    In
      accordance with standard policies and procedures, the following are types of
      expenses for which the Company will not reimburse, unless expressly agreed
      to in
      a prior writing by the Parties:

    

    
      	 	
              -

            	
              First
                class air travel

            

    

    
      	 	
              -

            	
              Add-on
                costs with respect to outside
                services

            

    

    
      	 	
              -

            	
              Mark-up
                on the work product of outside professionals, including by not limited
                to
                freelancers

            

    

    
      	 	
              -

            	
              Presentations
                for new business

            

    

    
      	 	
              -

            	
              Gifts
                to Company employees

            

    

    
      	 	
              -

            	
              Entertainment
                of Company employees

            

    

    
      	 	
              -

            	
              Mark-up
                on out-of-pocket expenses

            

    

    
      	 	
              -

            	
              Any
                other non reasonable, non business related
                expense.

            

    

    
      	
              Note:

            	
              This
                list sets forth the major items for which Company will not reimburse
                Consultant and is meant to be merely illustrative and not exhaustive.
                All
                Consultant expenses shall be reviewed with respect to the reasonableness
                of such expenses.

            

    

    

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
      C to Consulting Agreement*

    

    CONSULTANT
      CERTIFICATION

    

    Consultant,
      through its authorized officer below, certifies as follows:

    

    
      	 	
              (1)

            	
              Consultant
                and all of its Representatives (as defined in the Agreement) who
                work on
                or are responsible for the Company’s account have been screened against
                the following Exclusion

            

    

    Lists:

    
      	 	
              a.

            	
              The
                Health and Human Services/Office of the Inspector General (HHS/OIG)
                List
                of excluded Individuals/Entities (presently accessible
                at

            

    

    http://oig.hhs.gov/fraud/exclusions.html)

    
      	 	
              b.

            	
              the
                Federal General Services Administration’s List of Parties Excluded from
                Federal Programs (presently accessible at http://epls.arnet.gov/)

            

    

    No
      Representatives who currently working on or are responsible for the Company’s
      account are included on these databases.

    

    
      	 	
              (2)

            	
              Representatives
                working on or responsible for the Company’s account have been provided
                with the Company’s procedures and
                are familiar with them.

            

    

    

    
      	 	
              (3)

            	
              All
                new Representatives working on or responsible for the Company’s account,
                through the remainder of the Term of the current Agreement (and any
                extension thereof), will be screened against the Exclusion Lists
                set forth
                in paragraph (1) above, and be provided with the procedures to
                assure that they are familiar with them prior to working on the Company’s
                account.

            

    

    

    
      	 	
              (4)

            	
              Through
                the remainder of the Term of the Agreement (and any extension thereof)
                Consultant will continue to screen its Representatives working on
                or
                responsible for the Company’s account, at least
                annually.

            

    

    

    
      	 	
              (5)

            	
              Consistent
                with Paragraph 13 of the Agreement, Consultant will maintain records
                documenting its compliance with the requirements of Paragraph (1)-(4)
                above should they be required for audit or verification
                purposes.

            

    

    

    Plaza
      Consulting Group of PR Inc.

    

    By:____________________________________

    Name:
      _________________________________

    Title:
      __________________________________EXHIBIT
      4.1

    

    Warrant
      Certificate No. _____

    

    NEITHER
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE
      UPON
      THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH
      SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE
      TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
      EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE
      COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH
      COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY
      BE
      OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED
      WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE
      SECURITIES
      LAWS. 

    

    
      	
              Dated:
                September 1, 2006

            	
              Void
                After: September 1, 2011

            

    

    

    

    ETHANEX
      ENERGY, INC.

    

    WARRANT
      TO PURCHASE COMMON STOCK

    

    Ethanex
      Energy, Inc., a Nevada corporation (the “Company”), for value received on
      September 1, 2006 (the “Effective
      Date”),
      hereby issues to [name]
      (the
“Holder”)
      this
      Warrant (the “Warrant”)
      to
      purchase [no.
      shares]
      shares
      (each such share
      as from
      time to time adjusted as hereinafter provided
      being a
“Warrant
      Share”
and
      all
      such shares being the “Warrant
      Shares”)
      of the
      Company’s Common Stock (as defined below), at the Exercise Price (as defined
      below), as adjusted from time to time as provided herein, on or before September
      1, 2011 (the “Expiration
      Date”),
      all
      subject to the following terms and conditions. Unless otherwise defined in
      this
      Warrant, terms appearing in initial capitalized form shall have the meaning
      ascribed to them in that certain Subscription Agreement dated August 3, 2006
      among the Ethanex Energy North America, Inc. and the purchasers signatory
      thereto pursuant to which this Warrant was originally issued (the “Subscription
      Agreement”).

    

    As
      used
      in this Warrant, (i) “Business
      Day”
means
      any day other than Saturday, Sunday or any other day on which commercial banks
      in the City of New York, New York, are authorized or required by law or
      executive order to close; (ii) “Common
      Stock”
means
      the common stock of the Company, $0.001 par value per share, including
      any securities issued or issuable with respect thereto or into which or for
      which such shares may be exchanged for, or converted into, pursuant to any
      stock
      dividend, stock split, stock combination, recapitalization, reclassification,
      reorganization or other similar event;
      (iii)
“Exercise
      Price”
means
      $1.50 per share of Common

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Stock,
      subject to adjustment as provided herein; (iv)
      “Trading
      Day”
means
      any
      day
      on which
      the Common Stock is traded on the primary national or regional stock exchange
      on
      which the Common Stock is listed, or, if not listed, on the Nasdaq National
      Market if quoted thereon, or if not so listed or quoted, the NASD OTC Bulletin
      Board if quoted thereon is
      open
      for the transaction of business; and (v) “Affiliate”
means
      any Person that, directly or indirectly,
      through one or more intermediaries, controls, is controlled by, or is under
      common control with, a Person, as such terms are used and construed in Rule
      144
promulgated
      under the Securities Act of 1933, as amended.

    

    1. DURATION
      AND EXERCISE OF WARRANTS

    

    (a) Exercise
      Period.
      The
      Holder may exercise this Warrant in whole or in part on any Business Day on
      or
      before 5:00 P.M., Eastern Daylight Time, on the Expiration Date, at which time
      this Warrant shall become void and of no value. The Holder shall also exercise
      the Warrant earlier on the Mandatory Exercise Date in accordance with Section
      1(b) if applicable, at which time this Warrant shall entitle the Holder only
      to
      the Warrant Shares applicable upon such exercise.

    

    (b) Right
      of Mandatory Exercise by Company.

    

    (i) If
      at any
      time from and after the SEC
      Effective Date (as defined in the Registration Rights Agreement),
      (i)
      the
      closing
      sales price of the Common Stock for each Trading Day of any 20 consecutive
      Trading Day period preceding the applicable Mandatory Exercise Eligibility
      Date
      equals or exceeds $2.50 per share (subject to equitable adjustment for stock
      splits, stock dividends, combinations, and capital reorganizations, as
      applicable), (ii) the Registration Statement has been effective for a period
      of
      45 Trading Days and remains effective or
      the
      Holder would be entitled to sell the Warrant Shares upon the exercise of the
      Warrant pursuant to the Rule 144(k) promulgated under Securities Act of 1933,
      as
      amended (i.e.,
      including without
      any volume limitations), (iii)
      the
      Common Stock is listed on the New York Stock Exchange or the American Stock
      Exchange, or quoted on the Nasdaq National Market, and (iv) the
      average daily trading volume of the Common Stock over such 20 consecutive
      Trading Day period equals or exceeds 4,000,000 shares
      (the
“Mandatory
      Exercise Eligibility Date”),
      the
      Company shall have the right to require the Holder to exercise this Warrant
      in
      whole or in part, subject to Sections 1(b)(ii) and (iii) below, as designated
      in
      the Mandatory Exercise Notice (as defined below) into fully paid, validly issued
      and nonassessable shares of Common Stock in accordance with the terms of this
      Warrant at the Exercise Price as of the Mandatory Exercise Date (a “Mandatory
      Exercise”).
      The
      Company may exercise its right to require exercise under this Section 1(b)
      by
      delivering within not more than five (5) Trading Days after the end of the
      Mandatory Exercise Eligibility Date a written notice thereof by facsimile and
      overnight courier to all, but not less than all, of the holders of Warrants
      and
      the Transfer Agent (the “Mandatory
      Exercise Notice”
and
      the
      date all of the holders received such notice by facsimile is referred to as
      the
“Mandatory
      Exercise Notice Date”).
      The
      Mandatory Exercise Notice shall be irrevocable. The Mandatory Exercise Notice
      shall state (i) the Trading Day selected for the Mandatory Exercise in
      accordance with this Section 1(b)(i),
      which
      Trading Day shall be at least twenty (20) Business Days but not more than sixty
      (60) Business Days following the end of the Mandatory Exercise Notice Date
      (the
“Mandatory
      Exercise Date”),
      (ii)
      the aggregate number

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    of
      Warrant Shares subject to Mandatory Exercise from the Holder and all of the
      holders of the Warrants pursuant to this Section 1(b) and (iii) the number
      of
      Warrant Shares to be issued to such Holder on the Mandatory Exercise
      Date.

    

    (ii) If
      the
      Company elects to cause exercise of any amount of this Warrant pursuant to
      Section 1(b)(i), then it must simultaneously take the same action in the same
      proportion with respect to all Warrants that contain a similar provision. All
      amounts exercised by the Holder after the Mandatory Exercise Notice Date shall
      reduce the amount of this Warrant required to be converted on the Mandatory
      Exercise Date. If the Company has elected a Mandatory Exercise, the mechanics
      of
      exercise set forth in Section 1(c) shall apply, to the extent applicable, as
      if
      the Company and the Transfer Agent had received from the Holder on the Mandatory
      Exercise Date an Exercise Notice with respect to the amount of this Warrant
      being converted pursuant to the Mandatory Exercise.

    

    (iii) Notwithstanding
      anything to the contrary contained in this Section 1(b), the aggregate number
      of
      Warrants that the Company shall have the right to call at any given time under
      Section 1(b) shall be limited to a number of Warrants such that number of
      Warrant Shares issuable upon exercise of the Warrants so called does not exceed
      the total aggregate volume of the Company’s Common Stock traded over the 20
      consecutive Trading Days prior to the Mandatory Exercise Eligibility Date.
      The
      Company shall not have the right to deliver more than one Mandatory Exercise
      Notice in any ninety (90) day period.

    

    (c) Exercise
      Procedures.

    

    (i) While
      this Warrant remains outstanding and exercisable in accordance with Section
      1(a), in addition to the manner set forth in Section 1(c)(ii) below, the Holder
      may exercise this Warrant in whole or in part
      at any
      time and from time to time
      by:

    

    (A) surrender
      of this Warrant, with a duly executed copy of the Notice of Exercise attached
      as
Exhibit
      A,
      to the
      Secretary of the Company at its principal offices or at such other office or
      agency as the Company may specify in writing to the Holder; and

    

    (B) payment
      of the then
      applicable
      Exercise
      Price per share multiplied by the number of Warrant Shares being purchased
      upon
      exercise of the Warrant (such amount, the “Aggregate
      Exercise Price”)
      made
      in
      the form of cash, or by certified check, bank draft or money order payable
      in
      lawful money of the United States of America
      or in
      the form of a Cashless Exercise
      to the
      extent permitted in Section 1(c)(ii) below.
      

    

    (ii) At
      any
      time when
      a
      registration statement required by the Registration Rights Agreement covering
      the resale of the Warrant Shares by the Holder is not available after the first
      anniversary of the Effective Date,
      the
      Holder may, in its sole discretion, exercise all or any part of the Warrant
      in a
“cashless” or “net-issue” exercise (a “Cashless
      Exercise”)
      by
      delivering to the Company (1) the Notice of Exercise and (2) the
      Warrant,
      pursuant to which the Holder shall surrender the right to receive upon exercise
      of this Warrant a number of Warrant Shares having a value (as determined below)
      equal to the Aggregate Exercise Price, in which

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    case,
      the
      number of Warrant Shares to be issued to the Holder upon such exercise shall
      be
      calculated using the following formula:

    

    X
       = Y
      * (A
      - B)

    A

    

    with:

    X
      =
 the
      number of Warrant Shares to be issued to the Holder

    

    Y
      = the
      number of Warrant Shares with respect to which the Warrant is being
      exercised

    

    A
      = the
      fair
      value per share of Common
      Stock on
      the
      date of exercise of this Warrant

    

    B
      = the
      then-current Exercise Price of
      the
      Warrant

    

    

    Solely
      for the purposes of this paragraph, “fair value” shall be determined either (A)
      reasonably and in good faith by the Board of Directors of the Company as of
      the
      date which the Notice of Exercise is deemed to have been sent to the Company,
      or
      (B) as the average of the closing sales prices, as quoted on the primary
      national or regional stock exchange on which the Common Stock is listed,
      or,
      if not
      listed,
      on the
      Nasdaq National Market if quoted thereon, or,
      if not
      listed or quoted,
      the NASD
      OTC Bulletin Board if quoted thereon, on the twenty
      (20)
      trading
      days immediately preceding the date on which the Notice of Exercise is deemed
      to
      have been sent to the Company, whichever of (A) or (B) is greater.

    

    (iii) Upon
      the
      exercise of
      this
      Warrant in compliance with the provisions of this Section 1(c) or pursuant
      to a
      Mandatory Exercise Notice in accordance with Section 1(b), the Company shall
      promptly issue and cause to be delivered to the Holder a certificate for the
      Warrant Shares purchased by the Holder. Each
      exercise of this Warrant shall be effected immediately prior to the close of
      business on the date (the “Date
      of Exercise”)
      which
(x)
      the
      conditions set forth in Section 1(b) have been satisfied
      in
      connection with a Mandatory Exercise Notice or (y) the conditions set forth
      in
      Section 1(c) have been satisfied, as the case may be.
      On
      or
      before the first Business Day following the date on which the Company has
      received each of the Exercise Notice and the Aggregate Exercise Price (or notice
      of a Cashless Exercise in accordance with Section 1(c)(ii)) (the “Exercise
      Delivery Documents”),
      the
      Company shall transmit by facsimile an acknowledgment of confirmation of receipt
      of the Exercise Delivery Documents to the Holder and the Company’s transfer
      agent (the “Transfer
      Agent”).
      On or
      before the third Business Day following the date on which the Company has
      received all of the Exercise Delivery Documents (the “Share
      Delivery Date”),
      the
      Company shall (X) provided that the Transfer Agent is participating in The
      Depository Trust Company (“DTC”)
      Fast
      Automated Securities Transfer Program, upon the request of the Holder, credit
      such aggregate number of shares of Common Stock to which the Holder is entitled
      pursuant to such exercise to the Holder’s or its designee’s balance account with
      DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the
      Transfer Agent is not participating in the DTC Fast Automated Securities
      Transfer Program, issue and dispatch by overnight courier to the address as
      specified

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    in
      the
      Exercise Notice, a certificate, registered in the Company’s share register in
      the name of the Holder or its designee, for the number of shares of Common
      Stock
      to which the Holder is entitled pursuant to such exercise. Upon delivery of
      the
      Exercise Notice and Aggregate Exercise Price referred to in Section
      1(c)(i)(A)
      above
      or notification to the Company of a Cashless Exercise referred to in Section
      1(c)(ii), the Holder shall be deemed for all corporate purposes to have become
      the holder of record of the Warrant Shares with respect to which this Warrant
      has been exercised, irrespective of the date of delivery of the certificates
      evidencing such Warrant Shares. If this Warrant is submitted in connection
      with
      any exercise pursuant to this Section 1(a) and the number of Warrant Shares
      represented by this Warrant submitted for exercise is greater than the
actual
      number
      of
      Warrant Shares being acquired upon such an
      exercise, then the Company shall as soon as practicable and in no event later
      than three (3) Business Days after any exercise and at its own expense, issue
      a
      new Warrant (in accordance with Section 1(c))
      of like
      tenor
      representing the right to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant, less the number of
      Warrant Shares with respect to which this Warrant is exercised. No fractional
      shares of Common Stock are to be issued upon the exercise of this Warrant,
      but
      rather the number of shares of Common Stock to be issued shall be rounded up
      to
      the nearest whole number. The Company shall pay any and all taxes which may
      be
      payable with respect to the issuance and delivery of Warrant Shares upon
      exercise of this Warrant.

    

    (iv) If
      the
      Company shall fail for any reason or for no reason to issue to the Holder,
      within three (3) Business Days of receipt of the Exercise Delivery Documents,
      a
      certificate for the number of shares of Common Stock to which the Holder is
      entitled and register such shares of Common Stock on the Company’s share
      register or to credit the Holder’s balance account with DTC for such number of
      shares of Common Stock to which the Holder is entitled upon the Holder’s
      exercise of this Warrant, and if on or after such Business Day the Holder
      purchases (in an open market transaction or otherwise) shares of Common Stock
      to
      deliver in satisfaction of a sale by the Holder of shares of Common Stock
      issuable upon such exercise that the Holder anticipated receiving from the
      Company (a “Buy-In”),
      then
      the Company shall, within three (3) Business Days after the Holder’s request and
      in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal
      to the Holder’s total purchase price (including brokerage commissions, if any)
      for the shares of Common Stock so purchased (the “Buy-In
      Price”),
      at
      which point the Company’s obligation to deliver such certificate (and to issue
      such shares of Common Stock) shall terminate, or (ii) promptly honor its
      obligation to deliver to the Holder a certificate or certificates representing
      such shares of Common Stock and pay cash to the Holder in an amount equal to
      the
      excess (if any) of the Buy-In Price over the product of (A) such number of
      shares of Common Stock, times (B) the closing bid price on
      the
      date of exercise. 

    

    (d) Partial
      Exercise.
      This
      Warrant shall be exercisable, either as an entirety or, from time to time,
      for
      part only of the number of Warrant Shares referenced by this Warrant. If this
      Warrant is exercised in part, the Company shall issue, at its expense, a new
      Warrant, in substantially the form of this Warrant, referencing such reduced
      number of Warrant Shares which remain subject to this Warrant.

    

    (e) Disputes.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall promptly issue
      to the Holder

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    the
      number of Warrant Shares that are not disputed and resolve such dispute in
      accordance with Section 15.

    

    2. ISSUANCE
      OF WARRANT SHARES

    

    (a) The
      Company covenants that all Warrant Shares will, upon issuance in accordance
      with
      the terms of this Warrant, be (i) duly authorized, fully paid and
      non-assessable, and (ii) free from all liens, charges and security interests,
      with the exception of claims arising through the acts or omissions of any Holder
      and except as arising from applicable Federal and state securities
      laws.

    

    (b) The
      Company shall register this Warrant upon records to be maintained by the Company
      for that purpose in the name of the record holder of such Warrant from time
      to
      time. The Company may deem and treat the registered Holder of this Warrant
      as
      the absolute owner thereof for the purpose of any exercise thereof, any
      distribution to the Holder thereof and for all other purposes.

    

    (c) The
      Company will not, by amendment of its certificate of incorporation, by-laws
      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 to be observed
      or performed hereunder by the Company, but will at all times in good faith
      assist in the carrying out of all the provisions of this Warrant and in the
      taking of all the action as may be necessary or appropriate in order to protect
      the rights of the Holder to exercise this Warrant,
      or
      against impairment of such rights.

    

    3. ADJUSTMENTS
      OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT SHARES

    

    (a) The
      Exercise Price and the number of shares purchasable upon the exercise of this
      Warrant shall be subject to adjustment from time to time upon the occurrence
      of
      certain events described in this Section 3(a).

    

    (i) Subdivision
      or Combination of Stock.
      In case
      the Company shall at any time subdivide (whether
      by way of stock dividend, stock split or otherwise) its
      outstanding shares of Common Stock into a greater number of shares, the Exercise
      Price in effect immediately prior to such subdivision shall be proportionately
      reduced and
      the
      Warrant Shares shall be proportionately increased,
      and
      conversely, in case the outstanding shares of Common Stock of the Company shall
      be combined (whether
      by way of stock combination, reverse stock split or otherwise) into
      a
      smaller number of shares, the Exercise Price in effect immediately prior to
      such
      combination shall be proportionately increased
      and the
      number of Warrant Shares shall be proportionately decreased. The Exercise Price
      and the Warrant Shares, as so adjusted, shall be readjusted in the same manner
      upon the happening of any successive event or events described in this Section
      3(a)(i).

    

    (ii) Dividends
      in Stock, Property, Reclassification.
      If at
      any time, or from time to time, the Holders of Common Stock (or any shares
      of
      stock or other securities at the time

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    receivable
      upon the exercise of this Warrant) shall have received or become entitled to
      receive, without payment therefore:

    

    (A) any
      shares of stock or other securities which are at any time directly or indirectly
      convertible into or exchangeable for Common Stock, or any rights or options
      to
      subscribe for, purchase or otherwise acquire any of the foregoing by way of
      dividend or other distribution, or

    

    (B) additional
      stock or other securities or property (including cash) by way of spin-off,
      split-up, reclassification, combination of shares or similar corporate
      rearrangement, (other than shares of Common Stock issued as a stock split or
      adjustments in respect of which shall be covered by the terms of Section 3(a)(i)
      above), then and in each such case, the Exercise
      Price and the number of Warrant Shares to be obtained upon exercise of this
      Warrant shall be adjusted proportionately, and the Holder
      hereof shall, upon the exercise of this Warrant, be entitled to receive, in
      addition to the number of shares of Common Stock receivable thereupon, and
      without payment of any additional consideration therefor, the amount of stock
      and other securities and property (including cash in the cases referred to
      in
      clause (ii) above) which such Holder would hold on the date of such exercise
      had
      he been the holder of record of such Common Stock as of the date on which
      holders of Common Stock received or became entitled to receive such shares
      or
      all other additional stock and other securities and property.
      The
      Exercise Price and the Warrant Shares, as so adjusted, shall be readjusted
      in
      the same manner upon the happening of any successive even or events described
      in
      this Section 3(a)(ii).

     

    (iii) Reorganization,
      Reclassification, Consolidation, Merger or Sale.
      If any
      recapitalization, reclassification or reorganization of the capital stock of
      the
      Company, or any consolidation or merger of the Company with another corporation,
      or the sale of all or substantially all of its assets or other
      transaction shall be effected in such a way that holders of Common Stock shall
      be entitled to receive stock, securities, or other assets or property (an
“Organic
      Change”),
      then,
      as a condition of such Organic Change, lawful and adequate provisions shall
      be
      made by the Company whereby the Holder hereof shall thereafter have the right
      to
      purchase and receive (in lieu of the shares of the Common Stock of the Company
      immediately theretofore purchasable and receivable upon the exercise of the
      rights represented by this Warrant) such shares of stock, securities or other
      assets or property as may be issued or payable with respect to or in exchange
      for a number of outstanding shares of such Common Stock equal to the number
      of
      shares of such stock immediately theretofore purchasable and receivable assuming
      the full exercise of the rights represented by this Warrant. In the event of
      any
      Organic Change, appropriate provision shall be made by the Company with respect
      to the rights and interests of the Holder of this Warrant to the end that the
      provisions hereof (including, without limitation, provisions for adjustments
      of
      the Exercise Price and of the number of shares purchasable and receivable upon
      the exercise of this Warrant) shall thereafter be applicable, in relation to
      any
      shares of stock, securities or assets thereafter deliverable upon the exercise
      hereof. The Company will not effect any such consolidation, merger or sale
      unless, prior to the consummation thereof, the successor corporation (if other
      than the Company) resulting from such consolidation or merger
      or
the
      corporation purchasing such assets shall assume by written instrument reasonably
      satisfactory in form and substance to the Holders executed and mailed
      or

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    delivered
      to the registered Holder hereof at the last address of such Holder appearing
      on
      the books of the Company, the obligation to deliver to such Holder such shares
      of stock, securities or assets as, in accordance
      with the foregoing provisions, such Holder may be entitled to
      purchase. In
      any
      event, the successor corporation (if other than the Company) resulting from
      such
      consolidation or merger or the corporation purchasing such assets shall be
      deemed to assume such obligation to deliver to such Holder such shares of stock,
      securities or assets even in the absence of a written instrument assuming such
      obligation to the extent such assumption occurs by operation of
      law.

    

    (b) Certificate
      as to Adjustments.
      Upon
      the occurrence of each adjustment or readjustment pursuant to this Section
      3,
      the Company at its expense shall promptly compute such adjustment or
      readjustment in accordance with the terms hereof and furnish to each Holder
      of
      this Warrant a certificate setting forth such adjustment or readjustment and
      showing in detail the facts upon which such adjustment or readjustment is based.
      The Company shall
      promptly furnish
      or cause to be furnished to such Holder a like certificate setting forth: (i)
      such adjustments and readjustments; and (ii) the number of shares and the
      amount, if any, of other property which at the time would be received upon
      the
      exercise of the Warrant.

    

    (c) Certain
      Events.
      If any
      event occurs as
      to which
      the other provisions of this Section 3 are not strictly applicable but the
      lack
      of any adjustment would not fairly protect the purchase rights of the Holder
      under this Warrant in accordance with the basic intent and principles of such
      provisions, or if strictly applicable would not fairly protect the purchase
      rights of the Holder under this Warrant in accordance with the basic intent
      and
      principles of such provisions, then the Company shall make the adjustments
      which
      the board of directors described therein.

    

    (d) Adjustment
      of Exercise Price Upon Issuance of Additional Shares of Common
      Stock.
      In the
      event
      the
      Company shall at any time prior to the eighteenth month anniversary of the
      Effective Date issue Additional Shares of Common Stock, as defined below,
      without consideration or for a consideration per share less than the Exercise
      Price in effect immediately prior to such issue, then the Exercise Price shall
      be reduced, concurrently with such issue, to a price (calculated to the nearest
      cent) determined by multiplying such Exercise Price by a fraction, (A) the
      numerator of which shall be (1) the number of shares of Common Stock outstanding
      immediately prior to such issue plus (2) the number of shares of Common Stock
      which the aggregate consideration received or to be received by the Company
      for
      the total number of Additional Shares of Common Stock so issued would purchase
      at such Exercise Price; and (B) the denominator of which shall be the number
      of
      shares of Common Stock outstanding immediately prior to such issue plus the
      number of such Additional Shares of Common Stock so issued; provided
      that,
      (i) for the purpose of this Section 3(d), all shares of Common Stock issuable
      upon conversion or exchange of convertible securities outstanding immediately
      prior to such issue shall be deemed to be outstanding, and (ii) the number
      of
      shares of Common Stock deemed issuable upon conversion or exchange of such
      outstanding convertible securities shall be determined without giving effect
      to
      any adjustments to the conversion or exchange price or conversion or exchange
      rate of such convertible securities resulting from the issuance of Additional
      Shares of Common Stock that is the subject of this calculation. For purposes
      of
      this Warrant, “Additional Shares of Common Stock” shall mean all shares of
      Common Stock issued

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    by
      the
      Company after the Effective Date (including without limitation any shares of
      Common Stock issuable upon conversion or exchange of any convertible securities
      or upon exercise of any option or warrant, on an as-converted basis), other
      than: (i) shares of Common Stock issued or issuable upon conversion or
      exchange of any convertible securities or exercise of any options outstanding
      on
      the Effective Date; (ii) shares of Common Stock issued or issuable by
      reason of a dividend, stock split, split-up or other distribution on shares
      of
      Common Stock that is covered by Sections 3(a)(i) through 3(a)(iii) above; or
      (iii) shares of Common Stock (or options with respect thereto) issued or
      issuable to employees or directors of, or consultants to, the Company or any
      of
      its subsidiaries pursuant to a plan, agreement or arrangement approved by the
      Board of Directors of the Company. The provisions of this Section 3(d) shall
      not
      operate to increase the Exercise Price.

    

    4. TRANSFERS
      AND EXCHANGES OF WARRANT AND WARRANT SHARES

    

    (a) Registration
      of Transfers and Exchanges.
      Subject
      to Section 4(c), upon the Holder’s surrender of this Warrant, with a duly
      executed copy of the Assignment Notice attached as Exhibit B, to the Secretary
      of the Company at its principal offices or at such other office or agency as
      the
      Company may specify in writing to the Holder,
      the
      Company shall register the transfer of all or any portion of this Warrant.
      Upon
      such registration of transfer the Company shall issue a new Warrant, in
      substantially the form of this Warrant, evidencing the acquisition rights
      transferred to the transferee and a new Warrant, in similar form, evidencing
      the
      remaining acquisition rights not transferred, to the Holder requesting the
      transfer.

    

    (b) Warrant
      Exchangeable for Different Denominations.
      The
      Holder may exchange this Warrant for a new Warrant or Warrants, in substantially
      the form of this Warrant, evidencing in the aggregate the right to purchase
      the
      number of Warrant Shares which may then be purchased hereunder, each of such
      new
      Warrants to be dated the date of such exchange and to represent the right to
      purchase such number of Warrant Shares as shall be designated by the Holder.
      The
      Holder shall surrender this Warrant with duly executed instructions regarding
      such re-certification
      of this Warrant to the Secretary of the Company at its principal offices or
      at
      such other office or agency as the Company may specify in writing to the
      Holder.

    

    (c) Restrictions
      on Transfers.
      This
      Warrant may not be transferred at any time without (i) registration under the
      Act or (ii) an exemption from such registration and a written opinion of legal
      counsel addressed to the Company that the proposed transfer of the Warrant
      may
      be effected without registration under the Act, which opinion will be in form
      and from counsel reasonably satisfactory to the Company.

    

    (d) Permitted
      Transfers and Assignments.
      Notwithstanding any provision to the contrary in this Section 4, the Holder
      may
      transfer, with or without consideration, this Warrant or any of the Warrant
      Shares (or a portion thereof) to the Holder’s Affiliates without obtaining the
      opinion from counsel that may be required by Section 4(c)(ii),
      provided that the Holder delivers to the Company and its counsel certification,
      documentation, and other assurances reasonably required by Company’s counsel to
      enable Company’s counsel to render an opinion to the Company’s Transfer Agent
      that such transfer does not violate applicable securities laws.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    5. MUTILATED
      OR MISSING WARRANT CERTIFICATE

    

    If
      this
      Warrant is mutilated, lost, stolen or destroyed, upon request by the Holder,
      the
      Company will,
      at its
      expense,
      issue,
      in exchange for and upon cancellation of the mutilated Warrant, or in
      substitution for the lost, stolen or destroyed Warrant, a new Warrant, in
      substantially the form of this Warrant, representing the right to acquire the
      equivalent number of Warrant Shares, provided however, as a prerequisite to
      the
      issuance of a substitute Warrant, the Company may require satisfactory evidence
      of loss, theft or destruction as well as an indemnity from the Holder of a
      lost,
      stolen or destroyed Warrant.

    

    6. PAYMENT
      OF TAXES

    

    The
      Company will pay all transfer and stock issuance taxes attributable to the
      preparation, issuance and delivery of this Warrant and the Warrant Shares
(and
      replacement Warrants) including,
      without limitation, all documentary and stamp taxes;
      provided, however, that the Company shall not be required to pay any tax in
      respect of the transfer of this Warrant, or the issuance or delivery of
      certificates for Warrant Shares or other securities in respect of the Warrant
      Shares to any person or entity other than to the Holder or its
      transferee.

    

    7. FRACTIONAL
      WARRANT SHARES

    

    No
      fractional Warrant Shares shall be issued upon exercise of this Warrant. The
      Company, in lieu of issuing any fractional Warrant Share, shall round up the
      number of Warrant Shares issuable to nearest whole share.

    

    8. NO
      STOCK
      RIGHTS AND LEGEND

    

    No
      holder
      of this Warrant Certificate, as such, shall be entitled to vote or be deemed
      the
      holder of any other securities of the Company which may at any time be issuable
      on the exercise hereof, nor shall anything contained herein be construed to
      confer upon the holder of this Warrant Certificate, as such, the rights of
      a
      stockholder of the Company or the right to vote for the election of directors
      or
      upon any matter submitted to stockholders at any meeting thereof,

    or
      give
      or withhold consent to any corporate action or to receive notice of meetings
      or
      other actions affecting stockholders (except as provided herein), or to receive
      dividends or subscription rights or otherwise (except as provide
      herein).

    

    Each
      certificate for Warrant Shares initially issued upon the exercise of this
      Warrant Certificate, and each certificate for Warrant Shares issued to any
      subsequent transferee of any such certificate, shall be stamped or otherwise
      imprinted with a legend in substantially the following form:

    

    "THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS,
      AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
      PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
      WITH

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    RESPECT
      THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
      OR
      (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN
      OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION
      ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED,
      SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED ITHOUT AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
      LAWS.”

    

    9. REGISTRATION
      UNDER THE SECURITIES ACT OF 1933

    

    The
      Company agrees to register the Warrant Shares for resale under the Act on the
      terms and subject to the conditions set forth in the Registration Rights
      Agreement (the “Registration Rights Agreement”) dated as of August 3, 2006
      between Ethanex Energy North America, Inc. and each of the Investors party
      to
      the Subscription Agreement, which Registration Rights Agreement was assumed
      by
      Ethanex Energy, Inc.

    

    10. NOTICES

    

    All
      notices, consents, waivers, and other communications under this Warrant must
      be
      in writing and will be deemed given to a party when (a) delivered to the
      appropriate address by hand or by nationally recognized overnight courier
      service (costs prepaid); (b) sent by facsimile or e-mail with confirmation
      of
      transmission by the transmitting equipment; (c) received or rejected by the
      addressee, if sent by certified mail, return receipt requested, if to the
      registered Holder hereof; or (d) seven days after the placement of the notice
      into the mails (first class postage prepaid), to the Holder at the address,
      facsimile number, or e-mail address furnished by the registered Holder to the
      Company in accordance with the Subscription Agreement, or if to the Company,
      to
      it at c/o McGuireWoods LLP, 1345 Avenue of the Americas, 7th
      Floor,
      New York, New York 10105, Attention Louis W. Zehil, Corporate Secretary (or
      to
      such other address, facsimile number, or e-mail address as the Holder or the
      Company as a party may designate by notice the other party) with a copy to
      McGuireWoods LLP, 1345 Avenue of the Americas, 7th
      Floor,
      New York, New York 10105, Attention Louis W. Zehil.

    

    11. SEVERABILITY

    

    If
      a
      court of competent jurisdiction holds any provision of this Warrant invalid
      or
      unenforceable, the other provisions of this Warrant will remain in full force
      and effect. Any provision of this Warrant held invalid or unenforceable only
      in
      part or degree will remain in full force and effect to the extent not held
      invalid or unenforceable.

    

    12. BINDING
      EFFECT

    

    This
      Warrant shall be binding upon and inure to the sole and exclusive benefit of
      the
      Company, its successors and assigns, the registered Holder or Holders from
      time
      to time of this Warrant and the Warrant Shares.

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    13. SURVIVAL
      OF RIGHTS AND DUTIES

    

    This
      Warrant Certificate shall terminate and be of no further force and effect on
      the
      earlier of 5:00 P.M., Eastern Daylight Time, on the Expiration Date or the
      date
      on which this Warrant has been exercised.

    

    14. GOVERNING
      LAW

    

    This
      Warrant will be governed by and construed under the laws of the State of
New
      York
      without
      regard to conflicts of laws principles that would require the application of
      any
      other law.

    

    15. DISPUTE
      RESOLUTION

    

    In
      the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall submit the
      disputed determinations or arithmetic calculations via facsimile within two
      Business Days of receipt of the Exercise Notice giving rise to such dispute,
      as
      the case may be, to the Holder. If the Holder and the Company are unable to
      agree upon such determination or calculation of the Exercise Price or the
      Warrant Shares within three Business Days of such disputed determination or
      arithmetic calculation being submitted to the Holder, then the Company shall,
      within two Business Days submit via facsimile (a) the disputed determination
      of
      the Exercise Price to an independent, reputable investment bank selected by
      the
      Company and approved by the Holder or (b) the disputed arithmetic calculation
      of
      the Warrant Shares to the Company’s independent, outside accountant. The Company
      shall cause at its expense the investment bank or the accountant, as the case
      may be, to perform the determinations or calculations and notify the Company
      and
      the Holder of the results no later than ten (10) Business Days from the time
      it
      receives the disputed determinations or calculations. Such investment bank’s or
      accountant’s determination or calculation, as the case may be, shall be binding
      upon all parties absent demonstrable error. 

    

    16. NOTICES
      OF RECORD DATE

    

    Upon
      (a)
      any establishment
      by the
      Company of a record date of the holders of any class of securities for the
      purpose of determining the holders thereof who are entitled to receive any
      dividend or other distribution, or right or option to acquire securities of
      the
      Company, or any other right, or (b) any capital reorganization,
      reclassification, recapitalization, merger or consolidation of the Company
      with
      or into any other corporation, any transfer of all or substantially all the
      assets of the Company, or any voluntary or involuntary dissolution, liquidation
      or winding up of the Company, or the sale, in a single transaction, of a
      majority of the Company’s voting stock (whether newly issued, or from treasury,
      or previously issued and then outstanding, or any combination thereof), the
      Company shall mail to the Holder at least ten (10) Business Days, or such longer
      period as may be required by law, prior to the record date specified therein,
      a
      notice specifying (i) the date established as the record date for the purpose
      of
      such dividend, distribution, option or right and a description of such dividend,
      option or right, (ii) the date on which any such reorganization,
      reclassification, transfer, consolidation, merger, dissolution, liquidation
      or
      winding up, or sale is expected to become effective and (iii) the
      date,

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    if
      any,
      fixed as to when the holders or record of Common Stock shall be entitled to
      exchange their shares of Common Stock for securities or other property
      deliverable upon such reorganization, reclassification, transfer, consolation,
      merger, dissolution, liquidation or winding up.

    

    17. RESERVATION
      OF
      SHARES

    

    The
      Company shall
      reserve
      and keep available out of its authorized but unissued shares of Common Stock
      for
      issuance upon the exercise of this Warrant, free from preemptive rights, such
      number of shares of Common Stock for which this Warrant shall from time to
      time
      be exercisable.

    

    18. NO
      THIRD
PARTY
      RIGHTS

    

    This
      Warrant is not intended, and will not be construed, to create any rights in
      any
      parties other than the Company and the Holder, and no person or entity may
      assert any rights as third-party beneficiary hereunder.

    

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

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

    

    

    Ethanex
      Energy, Inc.

    

    

    By:
      ___________________________

    Name:
      Louis W. Zehil

    Title:
      Corporate Secretary

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    EXERCISE
      FORM

    

    (To
      be
      executed by the Holder of Warrant if such Holder

    desires
      to exercise Warrant)

    

    To
      Ethanex Energy, Inc.:

    

    The
      undersigned hereby irrevocably elects to exercise this Warrant and to purchase
      thereunder, ___________________ full shares of Ethanex Energy, Inc. common
      stock
      issuable upon exercise of the Warrant and delivery of:

    

    (1) $_________
      (in cash as provided for in the foregoing Warrant) and any applicable taxes
      payable by the undersigned pursuant to such Warrant; and

    

    (2) __________
      shares of Common Stock (pursuant to a Cashless Exercise in accordance with
      Section 1(c)(ii) of the Warrant) (check here if the undersigned desires to
      deliver an unspecified number of shares to be equal the number sufficient to
      effect a Cashless Exercise [___]).

    

    The
      undersigned requests that certificates for such shares be issued in the name
      of:

    

    _________________________________________

    (Please
      print name, address and social security or federal employer

    identification
      number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

    If
      the
      shares issuable upon this exercise of the Warrant are not all of the Warrant
      Shares which the Holder is entitled to acquire upon the exercise of the Warrant,
      the undersigned requests that a new Warrant evidencing the rights not so
      exercised be issued in the name of and delivered to:

    

    _________________________________________

    (Please
      print name, address and social security or federal employer

    identification
      number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

    Name
      of
      Holder (print): ________________________

    (Signature):
      ___________________________________

    (By:)
      _________________________________________

    (Title:)
      ________________________________________

    (Dated:)
      ________________________________________

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

    

    FORM
      OF
      ASSIGNMENT

    

    FOR
      VALUE
      RECEIVED, ___________________________________ hereby sells, assigns and
      transfers to each assignee set forth below all of the rights of the undersigned
      under the Warrant (as defined in and evidenced by the attached Warrant) to
      acquire the number of Warrant Shares set opposite the name of such assignee
      below and in and to the foregoing Warrant with respect to said acquisition
      rights and the shares of Ethanex Energy, Inc. issuable upon exercise of the
      Warrant:

    

    
      	
              Name
                of Assignee

            	
              Address

            	
              Number
                of Shares

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

    

    If
      the
      total of the Warrant Shares are not all of the Warrant Shares evidenced by
      the
      foregoing Warrant, the undersigned requests that a new Warrant evidencing the
      right to acquire the Warrant Shares not so assigned be issued in the name of
      and
      delivered to the undersigned.

    

    

    Name
      of
      Holder (print): ________________________

    (Signature):
      __________________________________

    (By:)
      ________________________________________

    (Title:)
      _______________________________________

    (Dated):
      _____________________________________

    
      
        
        

      

      -16-

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