Document:

Form of convertible promissory note

 Exhibit 4.4 
  

No. A             
  
 THIS CONVERTIBLE PROMISSORY NOTE HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT FOR DISTRIBUTION AND MAY BE
TRANSFERRED OR OTHERWISE DISPOSED OF ONLY IN COMPLIANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THIS LEGEND SHALL BE ENDORSED UPON ANY CONVERTIBLE PROMISSORY NOTE ISSUED IN EXCHANGE FOR THIS CONVERTIBLE PROMISSORY NOTE.

  
 PARAGON FINANCIAL CORPORATION 
 12.0% Convertible, Subordinated Note; Due December 31, 2007 
  
 Dated: September 15, 2005 
 Issued: 
  
 IN THE PRINCIPAL AMOUNT SET FORTH ON THE SIGNATURE PAGE HEREOF 
  
 PARAGON FINANCIAL CORPORATION, a Delaware corporation (the “Company”), for value received, hereby promises to pay
to the individual or entity set forth on the signature page hereof (the “Holder”) on December 31, 2007 (the “Maturity Date”) at the offices of the Company, 2207 Sawgrass Village Circle, Ponte Vedra Beach, Florida 32082, or
at such other address as the Company shall advise the Holder in writing, the principal sum as stated on the signature page hereof in such coin or currency of the United States of America as at the time of payment shall be legal tender for the
payment of public and private debts and to pay interest on said principal sum at the rate of ten percent (12%) per annum. Interest on the principal balance of this Convertible Promissory Note (“Note”) shall be payable semi-annually on
June 30 and December 31 commencing on December 31, 2005 (which first interest payment shall be for the period from the date hereof through December 31, 2005), until the principal hereof shall have become due and payable, whether
at maturity or by acceleration or otherwise. 
  
 After
June 30, 2006, the Company may prepay this Note in whole or in part at any time without premium or penalty upon ten (10) days written notice to the Holder (“Notice of Prepayment”) by the Company of the date of prepayment (the
“Prepayment Date”). Each prepayment shall be made together with interest accrued thereon to and including the date of the prepayment. 
  
 1. REGISTERED OWNER. The Company may consider and treat the person in whose name this Note shall be registered as the absolute owner thereof for
all purposes whatsoever (whether or not this Note shall be overdue) and the Company shall not be affected by any notice to the contrary. Subject to the provisions hereof, the registered owner of this Note shall have the right to transfer it by
assignment and the transferee thereof, upon his registration as owner of this Note, shall become vested with all the powers and rights of the transferor. Registration of any new owner shall take place upon presentation of this Note to the Company at
its offices together 

 with the Note Assignment Form attached hereto duly executed. In case of transfers by operation of law, the transferee
shall notify the Company of such transfer and of his address, and shall submit appropriate evidence regarding the transfer so that this Note may be registered in the name of the transferee. This Note is transferable only on the books of the Company
by the Holder on the surrender hereof, duly endorsed. Communications sent to any registered owner shall be effective as against all holders or transferees of this Note not registered at the time of sending the communication. In the event of the
assignment of a portion of the principal amount of this Note, the transferee thereof shall not have the right to elect an Optional Conversion (as hereinafter defined) unless the entire remaining principal portion of this Note has been previously
converted and/or is converted simultaneously therewith. 
  
 2.
CONVERSION. 
  
 2.1 Optional Conversion. Subject to
the terms of this Note, during the period commencing on the date hereof and expiring at 5:00 P.M., Eastern Time, on the day immediately preceding the Maturity Date (the “Conversion Period”), the Holder shall have the right to convert the
then outstanding principal amount of this Note (or any portion thereof), together with accrued interest thereon (an “Optional Conversion”), into shares of Common Stock, par value $.0001 per share, of the Company (“Conversion
Stock”) at a conversion price of $0.05 per share. In the event the Company provides a Notice of Prepayment to the Holder, the Holder shall have the right to convert the then outstanding principal amount of this Note (or any portion thereof),
together with accrued interest thereon, into Conversion Stock until 5:00 P.M., Eastern Time, on the day immediately preceding the Prepayment Date (the “Accelerated Conversion Period”) at the Conversion Price. The number of shares of
Conversion Stock issuable upon conversion of this Note shall equal (i) the sum of (A) the principal amount of this Note that is converted and (B) accrued interest thereon, divided by (ii) the Conversion Price. The foregoing
conversion privilege may be exercised during the Conversion Period or the Accelerated Conversion Period, as the case may be, by presentation and surrender to the Company, at its then principal office, of this Note together with the Note Conversion
Form attached hereto duly executed. Subject to the terms hereof, upon receipt by the Company of this Note and the Note Conversion Form, duly executed, at its office, the Holder shall be deemed to be the holder of record of the shares of Conversion
Stock issuable upon such conversion, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such shares shall not then be actually delivered to the Holder. 
  
 2.2. Restrictions On Conversion. Unless, prior to the conversion of
this Note, the issuance of the Conversion Stock has been registered with the United States Securities and Exchange Commission (the “SEC”) pursuant to the Act, the Note Conversion Form shall be accompanied by a representation of the Holder
to the Company to the effect that such shares are being acquired for investment and not with a view to the distribution thereof, and such other representations and documentation as may be required by the Company, unless in the opinion of counsel to
the Company such representations or other documentation are not necessary to comply with the Act. 
  
 2.3 Reservation Of Shares. The Company will at all times reserve and keep available out of its authorized and unissued Common Stock, solely for
issuance and delivery upon conversion 

 of this Note, free of preemptive or rights of purchase, the number of shares of Conversion Stock issuable upon conversion
of this Note at the Conversion Price. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid and nonassessable. 
  
 2.4 Fractional Shares. The Company shall not be required to issue
certificates representing fractions of shares, nor shall it be required to issue scrip or pay cash in lieu of fractional interests, it being the intent of the Company and the Holder that all fractional interests shall be eliminated and that all
issuances of Common Stock be rounded up to the nearest whole share. 
  
 2.5 Rights Of The Holder. The Holder shall not, by virtue hereof, be entitled to any rights of a shareholder of the Company, either at law or in equity, and the rights of the Holder is limited to those expressed in this Note.

  
 3. CALL OF CONVERTIBLE NOTES BY THE COMPANY. The
Company shall not directly or indirectly, call, prepay, redeem, repurchase, convert or otherwise acquire any Convertible Notes or any portion thereof except as set forth in this Article 3. 
  
 3.1 Optional Conversion or Redemption Upon Call by the Company. The
Company may, at its option, call the Convertible Notes, either in whole or in part on a pro-rata basis: 
  
 (i) at any time prior to the maturity of the Convertible Notes and after June 30, 2006; or 
  
 (ii) at any time, whether prior to or after June 30,
2006 (providing, however, with respect to this clause (ii) only, the Company may call the Convertible Notes only if: 
  
 (A) the Closing Price of the Company’s Common Stock shall be equal to or in excess of $0.20 per share for at least 10 consecutive trading days; and

  
 (B) in the event of a conversion pursuant to such call, the
holders of the Convertible Notes shall be entitled to receive registered shares of the Company’s Common Stock). 
  
 In the event of a call by the Company pursuant to this Section 3.1, the holders, at their option, may require the Company to convert their
Convertible Notes (into fully paid and nonassessable shares of the Company’s Common Stock) at the Conversion Price (the “Holders Option”). 
  
 3.2 Notice of Call. The right of the Company to call any Convertible Notes pursuant to Section 3.1 shall be conditioned upon its giving notice
of such call (the “Call Notice”), by personal delivery, overnight courier, certified mail or by facsimile, signed by an authorized officer, to the holders of Convertible Notes, not less than fifteen (15) Business Days prior to the
date upon which the call is to be made (the “Call Date”). The Call Notice shall specify (i) the aggregate principal amount of the Convertible Notes to be called, (ii) the date of such call, and (iii) the accrued and unpaid
interest thereon (to, but not including, the Call Date). Within ten 

 (10) Business Days after receipt of the Call Notice by the holder of a Convertible Note, such holder shall notify the
Company, by personal delivery, overnight courier, certified mail or by facsimile, signed by the holder, of the Holders Option, pursuant to which the holder shall direct whether he wishes the Convertible Notes to be converted or redeemed, pursuant to
Section 3.1 hereof (in the event that a holder fails to respond to the Call Notice or fails to respond within the time period or via the means set forth herein, the Holders Option shall become void and of no further effect and the Company shall
be entitled to redeem the Convertible Notes as provided in Section 3.1 or 3.2, as the case may be). 
  
 3.3 Partial Call. In the event of a partial call by the Company pursuant to this Article 3, the aggregate principal amount of each call of
Convertible Notes pursuant to Section 3.1 hereof, shall be allocated among the Convertible Notes at the time outstanding, in proportion, as nearly as practicable, to the respective unpaid principal amounts of such Convertible Notes. 

 
 3.4 Surrender of Convertible Notes Upon Call. In the event that any
Convertible Notes shall be surrendered to the Company upon conversion as provided in this Article 3, interest shall cease to accrue upon such Convertible Notes so surrendered. 
  
 3.5 Section 2 Applicable. For purposes of conversion of the Convertible Notes by the Company pursuant to this
Article 3, the provisions of Sections 2.1 through 2.4 herein, shall be controlling, as if the same shall have been contained in this Article 3 (except that with respect to Section 2.2, in the event that a holder shall choose redemption as the
Holders Option (pursuant to Section 3.2 herein), the Company shall make payment to the holder as soon as practicable after the Conversion Date, by check or by wire transfer). 
  
 4. DEFAULTS. If any one or more of the following (“Events of Default”) shall occur: 
  
 (a) the Company shall (i) make a general assignment for the benefit of
creditors; (ii) be adjudicated as bankrupt or insolvent; (iii) file a voluntary petition in bankruptcy or a petition or an answer seeking an arrangement with creditors; (iv) take advantage of any bankruptcy, insolvency or readjustment
of debt law or statute or file an answer admitting the material allegations of a petition filed against it in any proceeding under any such law; (v) apply for or consent to the appointment of a receiver, trustee or liquidator for all or a
substantial portion of its assets; (vi) have an involuntary case commenced against it under the Federal bankruptcy laws, which case is not dismissed or stayed within sixty (60) days; (vii) violate any covenant provided for in this
Note and such violation shall continue unremedied for a period of thirty (30) days following receipt of written notice thereof from the Holder; or (viii) fail to pay any principal or interest amount due hereunder when due and payable and
such failure shall continue unremedied for a period of ten (10) days following receipt of written notice thereof from the Holder; or 
  
 (b) any of the representations of the Company contained herein are false and misleading in any material respect; then, at any time thereafter and unless
such Event of Default with respect to clause (a) or (b) hereof, as the case may be, shall have been cured or shall have been waived in writing by the Holder (which waiver shall not be deemed a waiver of any subsequent default), at the
option of the Holder and in the Holder’s sole discretion, the Holder may, by written notice to the Company, declare the entire unpaid principal amount of this Note then outstanding, together with accrued interest thereon, to be forthwith due
and payable, whereupon the same shall become forthwith due and payable. 

 5. INVESTMENT INTENT. 
  
 5.1 The Holder by his acceptance hereof, hereby represents and warrants that this Note is being acquired for his own
account, for investment purposes and not with a view to any distribution within the meaning of the Act. The Holder will not sell, assign, mortgage, pledge, hypothecate, transfer or otherwise dispose of this Note unless (i) a registration
statement under the Act with respect thereto is in effect and the prospectus included therein meets the requirements of Section 10 of the Act, or (ii) the Company has received a written opinion of its counsel that, after an investigation
of the relevant facts, such counsel is of the opinion that such proposed sale, assignment, mortgage, pledge, hypothecation, transfer or disposition does not require registration under the Act or any state securities law. 
  
 5.2 The Holder understands that the resale of this Note is not being
registered under the Act and this Note must be held indefinitely unless it is subsequently registered thereunder or an exemption from such registration is available. 
  
 5.3 The Holder represents and warrants further that (i) he is either an “accredited investor,” as such term
is defined in Rule 501(a) promulgated under the Act, or, either alone or with his purchaser representative, has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the acquisition
of this Note; (ii) he is able to bear the economic risks of an investment in this Note, including, without limitation, the risk of the loss of part or all of his investment and the inability to sell or transfer this Note for an indefinite
period of time; (iii) he has adequate financial means of providing for current needs and contingencies and has no need for liquidity in his investment in this Note; and (iv) he does not have an overall commitment to investments which are
not readily marketable that is excessive in proportion to net worth and an investment in this Note will not cause such overall commitment to become excessive. 
  

5.4 The Holder represents and warrants that he has reviewed the Company’s reports, registration statements, proxy statements and information
statements which the Company has filed with the SEC via the Edgar system since January 1, 2002 and has been afforded the opportunity to obtain such information regarding the Company as he has reasonably requested to evaluate the merits and
risks of the Holder’s investment in this Note. No oral or written representations have been made or oral information furnished to the Holder or his advisers in connection with his investment in this Note. 
  
 5.5 The Holder acknowledges that counsel to the Company will be relying, and
may rely, upon the representations made in this Section 4 in connection with any opinion of counsel it may give with regard to any transfer of this Note by the Holder, and agrees to advise the Company and its counsel in writing in the event of
any change in any of the foregoing representation. 
  
 5.6 The
Holder agrees to provide such other documentation as the Company or its counsel may request or require from time to time. 

 5.7 At any time that the Holder converts this Note into Conversion Stock, the Holder shall, with respect
to, and as a condition to, such conversion, represent and warrant to the Company the representations and warranties set forth in Sections 4.1 through 4.6 above as more particularly set forth in the Note Conversion Form. 
  
 6. REGISTRATION RIGHTS. 
  
 6.1 Company’s Obligations. 
  
 6.1.1 Registration 
  
 (a) If at any time after the date hereof the Company shall
file with the SEC a registration statement (a “Registration Statement”) under the Act relating to an offering for its own account or the account of others under the Act of any of its equity securities (other than on Form S-4 or Form S-8 or
their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans), the Company shall
send to the Holder written notice of such determination and, if within fifteen (15) days after the date of such notice, the Holder shall so request in writing, that the Company shall include in such Registration Statement all or any part of the
Conversion Stock, to the extent of that number of shares of Common Stock issues by the Company pursuant tot he terms of this Note, and prior to the filing of a Registration Statement (for the purpose of this Section 5, the “Registrable
Securities”) that the Holder requests to be registered, except that if, in connection with any underwritten public offering, the managing underwriter(s) thereof shall impose a limitation on the number of Registrable Securities or other
securities of the Company which may be included in the Registration Statement because, in such underwriter(s)’ judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall
be obligated to include in such Registration Statement only such limited portion of the Registrable Securities as the underwriter shall permit (limited to zero if necessary). 
  
 (b) If an offering in connection with which the Holder is entitled to registration under this
Section 6.1.1(a) is an underwritten offering, then the Holder shall, unless otherwise agreed by the Company, offer and sell such Registrable Securities in an underwritten offering using the same underwriter or underwriters and on the same terms
and conditions as other like securities included in such underwritten offering. 
  
 (c) The Company shall furnish to the Holder (i) promptly after the same is prepared and publicly distributed, filed with the SEC, or
received by the Company one copy of the Registration Statement and any amendment thereto, each preliminary prospectus and prospectus and each amendment or supplement thereto, and each item of correspondence from the SEC or the staff of the SEC which
comments upon or requests information relating to the Holder and/or the 

 Registrable Securities (including, without limitation, the resale and plan of distribution thereof), in
each case relating to such Registration Statement (other than any portion, if any, thereof which contains information for which the Company has sought confidential treatment), (ii) on the date of effectiveness of the Registration Statement or
any amendment thereto, a notice stating that the Registration Statement or amendment has become effective, and (iii) such number of copies of a prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such
other documents as the Company may reasonably request in order to facilitate the disposition of the Registrable Securities by the Holder. 
  
 6.1.2 Blue Sky. The Company shall use its best efforts to (i) register and qualify the Registrable Securities covered by the
Registration Statement under such other securities or “Blue Sky” laws of such jurisdictions in the United States as the Holder may request, and (ii) take all other actions reasonably necessary or advisable to qualify the Registrable
Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (i) qualify to do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 6.1.2, (ii) subject itself to general taxation in any such jurisdiction, (iii) provide any undertakings that cause the Company undue expense or burden, or (iv) make any change in its charter or
bylaws, which in each case the Board of Directors of the Company determines to be contrary to the best interests of the Company and its stockholders. 
  
 6.1.3 Events Affecting Prospectus. The Company shall notify the Holder of the happening of any event, of which the Company has knowledge,
as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, as promptly as practicable after becoming aware of such event, and if such Registration Statement is supplemented or amended to correct such untrue statement or omission, the Company shall deliver such number of amended or
supplement prospectuses as the Holder may reasonably request. 
  
 6.1.4 Notification of Amendment or Supplement. The Company shall, as promptly as practicable after becoming aware of such event described in Section 5.1.3, notify the Holder of the issuance of any order related
thereto and the resolution thereof (and if such Registration Statement is supplemented or amended, deliver such number of copies of such supplement or amendment to the Holder as he may reasonably request). 
  
 6.1.5 Review by Holder’s Counsel. The Company shall
permit one firm of counsel designated by the Holder to review the Registration Statement and all amendments and supplements thereto a reasonable period of time prior to their filing with the SEC. 

 6.1.6 Holder’s Due Diligence; Confidentiality of the Company’s Information. The
Company shall make available for inspection by (i) the Holder, and (ii) a firm of attorneys and a firm of accountants or other agents retained by the Holder (collectively, the “Inspectors”) all pertinent financial and other
records, and pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each Inspector to enable each Inspector to exercise its due diligence responsibility, and
cause the Company’s officers, directors and employees to supply all information which the Holder may reasonably request for purposes of such due diligence; provided, however, that each Inspector shall hold in confidence and shall not make any
disclosure (except to the Holder) of any record or other information which the Company determines in good faith to be confidential, and of which determination the Inspector so notified, unless (i) the disclosure of such Records is necessary to
avoid or correct a misstatement or omission in any Registration Statement, (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court or other federal, state, local and foreign government, political
subdivision of such governmental body, or other regulatory body (“collectively, “Bodies”) of competent jurisdiction, or (iii) the information in such Records has been made generally available to the public other than by
disclosure in violation of this Note or any other agreement. The Company shall not be required to disclose any confidential information in such Records to any Inspector until and unless such Inspector shall have entered into a confidentiality
agreements with the Company with respect thereto, substantially in the form of this Section 6.1.6. The Holder agrees that he shall, upon learning that disclosure of such Records is sought, in or by a court or governmental body of competent
jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the records deemed confidential. Nothing
herein shall be deemed to limit Holder’s ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations. 
  
 6.1.7 Confidentiality of Holder’s Information. The Company shall hold in confidence and not make any
disclosure of information concerning the Holder provided to the Company unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other order from a court or governmental body of competent jurisdiction, (iv) such information
has been made generally available to the public other than by disclosure in violation of this Note or any other agreement, or (v) the Holder consents to the form and content of any such disclosure regarding it. The Company agrees that it shall,
upon learning that disclosure of such information concerning any of the Holder is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Holder prior to making such disclosure, and
allow the Holder, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information. 

 6.1.8 Compliance With Laws. The Company shall comply with all applicable laws related to
a Registration Statement and offering and sale of securities and all applicable rules and regulations of Bodies in connection therewith (including, without limitation, the Act and the Exchange Act of 1934, as amended, and the rules and regulations
promulgated by the SEC). 
  
 6.2 Obligations Of The Holder.
In connection with a registration of the Registrable Securities, the Holder shall have the following obligations: 
  
 6.2.1 The Holder’s Information. It shall be a condition precedent to the obligations of the Company to complete the registration of
Registrable Securities for the Holder pursuant to this Section 5 that the Holder shall furnish to the Company such information regarding himself, the Registrable Securities and the intended method of disposition as shall be required to effect
the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request. At least five (5) business days prior to the first anticipated filing date of the
Registration Statement, the Company shall notify the Holder of the information the Company requires from the Holder. 
  
 6.2.2 Cooperation. The Holder shall agree to cooperate with the Company as requested by the Company in connection with the preparation and
filing of the Registration Statement hereunder. 
  
 6.2.3 Underwritten Offering. In the event the Holder determines to engage the services of an underwriter, the Holder agrees to enter into and perform his obligations under an underwriting agreement, in usual and customary form, including,
without limitation, customary indemnification and contribution obligations, with the managing underwriter of such offering and take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable
Securities. 
  
 6.2.4 No Disposition of
Registrable Securities. The Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Sections 6.1.3 or 6.1.4, the Holder will immediately discontinue disposition of Registrable Securities
pursuant to the Registration Statement covering the resale of such Registrable Securities until the Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Sections 6.1.3 or 6.1.4 and, if so directed by the
Company, the Holder shall deliver to the Company or destroy (and deliver to the Company a certificate of destruction) all copies in the Holder’s possession, of the prospectus covering such Conversion Stock current at the time of receipt of such
notice. 

 6.2.3 Method of Underwritten Distribution. The Holder may not participate in any
underwritten distribution of the Registrable Securities unless the Holder (i) agrees to sell the Registrable Securities on the basis provided in any underwriting arrangements in usual and customary form entered into by the Company, and
(ii) completes, in a manner reasonably acceptable to the Company and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting
arrangements. 
  
 6.3 Expenses Of Registration. All
reasonable expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications, relating to one (1) Registration Statement pursuant to this Section 5, except that if a portion
of the Holder’s Registrable Securities are not permitted to be included in one (1) Registration Statement by an underwriter as provided in Section 5.1.1(a), then relating to the least number of Registration Statements which will cover
the resale of all of Registrable Securities, including all registration, listing and qualifications fees, printers and accounting fees, the fees and disbursements of counsel for the Company hereof, shall be borne by the Company. 
  
 6.4 Exemption From Registration. The provisions of Sections 5.1
through 5.3 notwithstanding, the Company shall have no obligation to register the resale of the Registrable Securities to the extent the Registrable Securities may be resold without registration without violating Section 5 of the Act pursuant
to Rule 144 promulgated thereunder or any other exemption or exception from registration under the Act. 
  
 7. APPLICABLE LAW; JURISDICTION. (a) This Note is issued under and shall for all purposes be governed by and construed in accordance with the
laws of the State of Florida, excluding choice of law rules thereof. 
  
 (b) An action to enforce the provisions of this Note may be commenced, at the election of the Holder, in the courts of the State of Florida. The Company and the Holder consents to the jurisdiction of the courts of the State of Florida with
regard thereto. 
  
 8. NOTICES. Any notice required or
permitted to be given pursuant to this Note shall be deemed to have been duly given when delivered by hand or sent by certified or registered mail, return receipt requested and postage prepaid, overnight mail or telecopier as follows: 
  
 If to the Holder: 
  
 To the address set forth on the signature page hereof. 
  
 If to the Company: 
  
 2207 Sawgrass Village Circle 
 Ponte Vedra Beach, Florida 32082 
 Attn: Chief Financial Officer 
 Telecopier Number: (904) 285-2575 
  
 or at such other address as the Holder or the Company shall designate by notice to the other
given in accordance with this Section 8. 

 9. MISCELLANEOUS. This Note constitutes the rights and obligations of the Holder and the Company.
No provision of this Note may be modified except by an instrument in writing signed by the party against whom the enforcement of any modification is sought. Payment of principal and interest due upon maturity shall be made to the registered Holder
of this Note on or after the Maturity Date, as the case may be, contemporaneous with and upon presentation of this Note for payment. No interest shall be due on this Note for such period of time that may elapse between the Maturity Date or the
Prepayment Date, as the case may be, and its presentation for payment. 
  
 No recourse shall be had for the payment of the principal of or interest on this Note against any officer, director, agent, subsidiary, parent or affiliate of the Company, past, present or future, all such liability of the officers,
directors and agents being waived, released and surrendered by the Holder hereof by the acceptance of this Note. 
  
 The waiver by the Holder of a breach of any provision of this Note shall not operate or be construed as a waiver of any subsequent breach. 
  
 If any provision, or part thereof, of this Note shall be held to be invalid
or unenforceable, such invalidity or unenforceability shall attach only to such provision and shall not in any way affect or render invalid or unenforceable any other provisions of this Note and this Note shall be carried out as if such invalid or
unenforceable provision, or part thereof, had been reformed, and any court of competent jurisdiction is authorized to so reform such invalid or unenforceable provision, or part thereof, so that it would be valid, legal and enforceable to the fullest
extent permitted by applicable law. 
  
 In no event shall the rate
of interest payable hereunder exceed the maximum rate permitted by applicable law. 
  
 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK. 

 IN WITNESS WHEREOF, the Company has caused this Note to be signed on its behalf, in its corporate
name, by its duly authorized officer, all as of the day and year first above written. 
  

			
	PARAGON FINANCIAL CORPORATION
		
	By:	 	  

	Name:	 	Scott L. Vining
	Title:	 	Chief Financial Officer

  

			
	 $
                    

	
	PRINCIPAL AMOUNT OF CONVERTIBLE PROMISSORY NOTES
	
	AGREED TO:
		
	 By:
	 	  

	 	 	 Signature of Holder

  

	
	 Name of Holder:

	 Address of Holder:             

	  

	  

	Social Security Number or Taxpayer Identification Number of Holder:
	  

	 Facsimile Number of
Holder:            

 PARAGON FINANCIAL CORPORATION 
  
 SEPTEMBER 1, 2005 
  
 IN THE PRINCIPAL AMOUNT SET FORTH ON THE SIGNATURE PAGE OF CONVERTIBLE PROMISSORY NOTE 
  
 NO. A              
  
 CONVERTIBLE PROMISSORY NOTE 
  
 NOTE CONVERSION FORM 
  
 1.1.1.A 
  
 The undersigned hereby irrevocably elects to convert the within Convertible
Promissory Note (the “Note”) to the extent of $             in principal amount thereof, together with accrued interest thereon. 
  

					
	If the Holder is an individual:	 	 	 	If the Holder is not an individual:
			
	  

	 	 	 	  

	Name(s) of Holder	 	 	 	Name of Holder
			
	  

	 	 	 	  

	Signature of Holder:	 	 	 	Signature of Authorized Representative
			
	  

	 	 	 	  

	Signature, if jointly held	 	 	 	Name and Title of Authorized Representative
			
	Address(es) of Holder	 	 	 	Address of Holder
	  

	 	 	 	  

	  

	 	 	 	  

	  

	 	 	 	  

	Social Security Number of Holder	 	 	 	Taxpayer Identification Number of Holder
			
	  

	 	 	 	  

	Date	 	 	 	DateEXHIBIT 4.0

                                    EXHIBIT A

         (A) AUTHORIZED CAPITAL STOCK. The total authorized capital of the
corporation shall be 500,000,000 shares of Common Stock, par value $0.001 per
share and 5,000,000 shares of Preferred Stock, par value $0.001 per share. The
board of directors shall have the authority, without any further approval of the
shareholders, to establish the relative rights, preferences and limitations of
any class of common or preferred stock. The consideration for the issuance of
any shares of capital stock may be paid, in whole or in part, in money, services
or other thing of value. The judgment of the directors as to the value of the
consideration for the shares shall be conclusive. When the payment of the
consideration for the shares has been received by the corporation, such shares
shall be deemed fully paid and nonassessable. In addition, the Board of
Directors is authorized to decrease the number of issued and outstanding shares
of a class or series held by each shareholder at the effective date and time of
the change without correspondingly decreasing the number of shares of authorized
shares of the same class or series.

                  1. DIVIDENDS. Subject to any preferential rights granted for
any series of Preferred Stock, the holders of shares of the Common Stock shall
be entitled to receive dividends out of the funds of the corporation legally
available therefor at the rate and at the time or times, whether cumulative or
noncumulative, as may be provided by the board of directors. The holders of
shares of the Preferred Stock shall be entitled to receive dividends to the
extent provided herein or by the board of directors in designating the
particular series of Preferred Stock. The holders of shares of the Common Stock
shall not be entitled to receive any dividends thereon other than the dividends
referred to in this section.

                  2. VOTING. To the extent provided herein or by resolution or
resolutions of the board of directors providing for the issue of a class or
series of Common Stock or Preferred Stock, the holders of each such class or
series shall have the right to vote for the election of members of the board of
directors of the corporation and the right to vote on all other matters, except
those matters as to which Nevada law or these Articles provide for a separate
vote.
                  3. ISSUANCE OF SHARES. The corporation may from time to time
issue any authorized and unissued shares of Common Stock or Preferred Stock for
such consideration as may be fixed from time to time by the board of directors,
without action by the shareholders. The board of directors may provide for
payment therefor to be received by the corporation in cash, property, services
or such other consideration as is approved by the board of directors. Any and
all such shares of Common Stock or Preferred Stock, the issuance of which has
been so authorized, and for which consideration so fixed by the board of
directors has been paid or delivered, shall be deemed fully paid stock and shall
not be liable to any further call or assessment thereon.
<PAGE>

         (B) DESIGNATION OF CLASS A COMMON STOCK AND CLASS B COMMON STOCK.

                  1. DESIGNATION. The series of Class A Common Stock, consisting
of up to 400,000,000 shares, and the series of Class B Common Stock, consisting
of up to 100,000,000 shall be designated herein as the "Class A Common Stock"
and the "Class B Common Stock", respectively. The Class A Common Stock and the
Class B Common Stock are sometimes collectively referred to herein as "Common
Stock". The powers, preferences, rights and qualifications, limitations and
restrictions of the Common Stock are as set forth herein.

                  2. DIVIDENDS. Dividends shall be declared and set aside for
any shares of the Common Stock only upon resolution of the Board of Directors.

                  3. LIQUIDATION RIGHTS. Upon the voluntary or involuntary
dissolution, liquidation or winding up of the corporation, the assets available
for distribution to the holders of Common Stock shall be distributed after the
payment of the liquidation preferences of the Preferred Stock as set forth
herein.

                  4. VOTING POWER. Each holder of Class A Common Stock shall be
entitled to one vote for each share of Common Stock held at the record date for
the determination of Common Stockholders entitled to vote on such matter or, if
no such record date is established, at the date on which notice of the meeting
of shareholders at which the vote is to be taken is marked, or the date any
written consent of shareholders is solicited if the vote is not to be taken at a
meeting. Class B Common Stock shall carry no voting power and shall reserved for
issuance pursuant to Regulation S under the Securities Act of 1933, as amended.

         (C)      DESIGNATION OF SERIES A CONVERTIBLE PREFERRED STOCK.
<PAGE>
              1. Designation. One million (1,000,000) shares of preferred stock,
         par value $.001 per share, of the Corporation are hereby constituted as
         a series of the preferred stock of the Corporation and designated as
         "Series A Convertible Preferred Stock."

              2. Dividend Rights.

                       (a) General Dividend Obligation. The Corporation shall
         pay, when and as declared by the Corporation's Board of Directors, to
         the holders of the Shares then outstanding, out of the assets-of the
         Corporation legally available therefor, dividends in the manner, at the
         times, in the amounts and with such priorities as are provided for in
         this Section 2.

                       (b) Dividend Rate. Commencing on the Issue Date,
         dividends on shares of Series A Preferred Stock (sometimes hereinafter
         referred to as "SHARES") then outstanding will accrue on the Preferred
         Dividend Value thereof and be payable on each Dividend Payment Date,
         subject to Section 2(c)(ii), below, at the rate of ten percent (10%)
         per annum (the "DIVIDEND RATE"). Dividends will be calculated on the
         basis of a year consisting of twelve months of thirty days each in a
         year.

                       (c) Accrual of Dividends.

                           (i) Dividends on each Share then outstanding shall
         accrue cumulatively on a daily basis from the date hereof to and
         including the date on which the

<PAGE>

         redemption or conversion of such Share then outstanding shall have been
         effected or on which full payment with respect to such Share shall have
         been made pursuant to any liquidation, dissolution or winding-up of the
         Corporation, whether or not such dividends have been declared and
         whether or not there shall be (at the time such dividends became or
         become payable or any other time) profits, surpluses or other funds of
         the Corporation legally available for the payment of dividends.

                           (ii) To the extent not paid on any Dividend Payment
         Date, all dividends which have accrued on any Share then outstanding
         during the period from and including the preceding Dividend Payment
         Date (or from and including the date hereof in the case of the initial
         Dividend Payment Date) to (but excluding) such Dividend Payment Date
         shall be added on such Dividend Payment Date to the Preferred Dividend
         Value of such Share then outstanding (so that, without limitation,
         dividends shall thereafter accrue in respect of the amount of such
         accrued but unpaid dividends) and shall remain a part thereof until
         (but only until) such dividends are paid. As used herein, the
         "Preferred Dividend Value" of any Share then outstanding as of a
         particular date shall be equal to the sum of one dollar ($1.00) plus an
         amount equal to any accrued and unpaid dividends (whether or not earned
         or declared) on such Share then outstanding, which accrued and unpaid
         dividends have been added to the Preferred Dividend Value of such Share
         then outstanding on any Dividend Payment Date pursuant to this Section
         2(d)(ii) and not thereafter paid.

                       (d) Payment Dates. Full cumulative dividends on the
         Shares then outstanding shall be payable quarterly in arrears, on the
         last day of March, June, September and December in each year (each a
         "Dividend Payment Date"). The first Dividend Payment Date shall be
         December 3 1, 2003. If any Dividend Payment Date shall be on a day
         other than a Business Day, then the Dividend Payment Date shall be on
         the next succeeding Business Day. An amount equal to the full
         cumulative dividends shall also be payable, in satisfaction of such
         dividend obligation, upon liquidation or redemption as provided under
         Section 3 or Section 6 hereof The Board of Directors may fix a record
         date for the determination of holders of Shares entitled to receive
         payment of the dividends-payable pursuant to this Section - 2, which
         record date shall not be more than thirty (30) days prior to the
         Dividend Payment Date.

                       (e) Amounts Payable. The amount of dividends payable on
         Series A Preferred Stock on each Dividend Payment Date shall be the
         full cumulative dividends which are unpaid through and including such
         Dividend Payment Date. Dividends which are not paid for any reason
         whatsoever on a Dividend Payment Date shall cumulate (as set forth in
         Section 2(d)(ii) above) until paid and shall be payable on the next
         Dividend Payment Date on which payment can lawfully be made (or upon
         liquidation or redemption as provided herein).

                       (f) Limitation on Dividends, Repurchases and Redemptions.
         So long as any Shares shall be outstanding, the Corporation shall not
         declare or pay or set apart for payment any dividends or make any other
         distributions on any Common Stock or other Junior Securities, whether
         in cash, securities, rights to purchase securities or other property
         (other

<PAGE>

         than dividends or distributions payable in shares of the class or
         series upon which such dividends or distributions are declared or
         paid), nor shall the Corporation purchase, redeem or otherwise acquire
         for any consideration or make payment on account of the purchase,
         redemption or other retirement of any Common Stock or other Junior
         Securities, nor shall any monies be paid or made available for a
         sinking fund for the purchase or redemption of any Common Stock of
         other Junior Securities.

                       (g) Pro Rata Payments. In the event that full dividends
         are not paid or made available to the holders of all outstanding Shares
         and funds available for payment of dividends shall be insufficient to
         permit payment in full to holders of all such stock of the full
         preferential amounts to which they are then entitled, then the entire
         amount available for payment of dividends shall be distributed ratably
         among all such holders of Shares in proportion to the full amount to
         which they would otherwise be respectively entitled.

         3. Preference on Liquidation.

                       (a) Liquidation Preference for Series A Preferred Stock.
         In the event that the Corporation shall liquidate, dissolve or wind up,
         whether voluntarily or involuntarily, no distribution shall be made to
         the holders of shares of Common Stock or other Junior Securities (and
         no monies shall be set apart for such purpose) unless prior thereto,
         the Corporation shall have paid and the holders of shares of Series A
         Preferred Stock shall have received an amount per Share equal to the
         sum of the Liquidation Value plus all accrued but unpaid dividends
         thereon through the date of such payment (the "Series A Liquidation
         Preference"). As used herein, the "Liquidation Value" of the Series A
         Preferred Stock means $1.00 per Share.

                       (b) Pro Rata Payments. If, upon any such liquidation,
         dissolution or other winding up of the affairs of the Corporation, the
         assets of the Corporation shall be insufficient to permit the payment
         in full of the Series A Liquidation Preference for each share of Series
         A Preferred Stock then outstanding, then the assets of the Corporation
         remaining shall be ratably distributed among the holders of Series A
         Preferred Stock in proportion to the full amounts to which they would
         otherwise be respectively entitled if all amounts thereon were paid in
         full.

                       (c) Sale Not a Liquidation. Neither the voluntary sale,
         conveyance, exchange or transfer (for cash, shares of stock, securities
         or other consideration) of all or substantially all the property or
         assets of the Corporation nor the consolidation, merger or other
         business combination of the Corporation with or into one or more
         corporations shall be deemed to be a liquidation, dissolution or
         winding-up, voluntary or involuntary, of the Corporation.

                       (d) Notice of Liquidation. Written notice of any
         liquidation, dissolution or winding up of the Corporation, stating the
         payment date or dates when and the place or places where amounts
         distributable in such circumstances shall be payable, shall be given by

<PAGE>

         first class mail, postage prepaid, not less than thirty (30) days prior
         to any payment date specified therein, to the holders of record of the
         Series A Preferred Stock at their respective addresses as shall appear
         on the records of the Corporation.

              4. Voting. Except for any voting rights otherwise provided in
         Articles of Incorporation of the Corporation or by applicable law, the
         Shares shall have no voting rights.

              5. Conversion. The holders of shares of Series A Preferred Stock
         shall have the right to convert all or a portion of such Shares into
         fully paid and nonassessable shares of Common Stock (or any capital
         stock or other securities into which such Common Stock shall have been
         changed or any capital stock or other securities resulting from a
         reclassification thereof) as provided in this Section 5.

                       (a) Right to Convert. Subject to and upon compliance with
         the provisions of this Section 5, at any time and from time to time on
         or after the first anniversary of the Issue Date, each holder of shares
         of Series A Preferred Stock shall have the right, at the option of such
         holder, at any time, to convert any or all of such Shares into the
         number of fully paid and nonassessable shares of Common Stock
         (calculated, as to each conversion, rounded down to the nearest 1/100th
         of a share) obtained by dividing (i) an amount equal to one hundred
         fifteen percent (115%) of the aggregate Liquidation Value of the Shares
         to be converted, plus all accrued but unpaid dividends thereon through
         the date of conversion (unless the holder of shares of Series A
         Preferred Stock being so converted shall have elected to receive any
         such dividends in respect of the shares being converted subsequent to
         conversion), by (ii) the Market Price of the Common Stock as of the
         date of the holder's notice of conversion to the Corporation pursuant
         to Section 5(b) (the "Conversion Price").

                       (b) Procedure.

                           (i) Each holder of Series A Preferred Stock that
         desires to convert the same into shares of Common Stock shall_
         surrender the certificate or certificates therefor, duly endorsed, at
         the principal office of the Corporation or of any transfer agent for
         the Series A Preferred Stock or Common Stock, accompanied by written
         notice to the Corporation that such holder elects to convert the same
         and stating therein the number of Shares being converted and whether
         all declared and unpaid dividends in respect of such shares shall be
         included in the calculation set forth in Section 5(a) hereof, and
         setting forth the name or names in which such holder wishes the
         certificate or certificates for shares of Common Stock to be issued if
         such name or names shall be different than that of such holder.
         Thereupon, the Corporation shall issue and deliver at such office on
         not later than the fifth Business Day thereafter (unless such
         conversion is in connection with an underwritten public offering of
         Common Stock, in which event concurrently with such conversion) to such
         holder or on such holder's written order, (i) a certificate or
         certificates for the number of validly issued, fully paid and
         nonassessable full shares of Common Stock to which such holder is
         entitled and (ii) if less than the full number of shares of Series A
         Preferred Stock evidenced by the surrendered certificate or
         certificates are being converted, a new certificate or certificates, of
         like tenor,

<PAGE>

          for the number of shares evidenced by such surrendered certificate or
          certificates less the number of Shares converted.

                           (ii) Each conversion shall be deemed to have been
         effected immediately prior to the close of business on the date of such
         surrender of the Shares to be converted (except that if such conversion
         is in connection with an underwritten public offering of Common Stock,
         then such conversion shall be deemed to have been effected upon such
         surrender) so that the rights of the holder thereof as to the Shares
         being converted shall cease at such time except for the right to
         receive shares of Common Stock and if the holder of the Shares being so
         converted shall have elected to receive dividends subsequent to such
         conversion, all accrued and unpaid dividends in accordance herewith,
         and the person entitled to receive the shares of Common Stock issuable
         upon such conversion shall be treated for all purposes as the record
         holder of such shares of Common Stock at such time.

                       (c) Conditional Conversion. Notwithstanding any other
         provision hereof if conversion of any shares of Series A Preferred
         Stock is to be made in connection with a public offering of Common
         Stock, the conversion of any shares of Series A Preferred Stock may, at
         the election of the holder thereof, be conditioned upon the
         consummation of the public offering or such transaction, in which case
         such conversion shall not be deemed to be effective until the
         consummation of such public offering or transaction.

                           (d) Reorganization, Reclassification, Merger or
         Consolidation. If the Corporation shall at any time reorganize or
         reclassify the outstanding shares of Common Stock (other than a change
         in par value, or from no par value to par value, or from par value to
         no par value, or as a result of a subdivision or combination) or
         consolidate with or merge into another corporation or other entity
         (where the Corporation is not the continuing corporation after such
         merger or consolidation and subject in any event to Section 7 hereof),
         the holders of Series A Preferred Stock shall thereafter be entitled to
         receive upon conversion of the Series A Preferred Stock, in whole or in
         part, the same kind and number of shares of stock and other securities,
         _cash or other property (and upon the same terms and with the same
         rights) as would have been distributed to a holder upon such
         reorganization, reclassification, consolidation or merger had such
         holder converted its Series A Preferred Stock immediately prior to such
         reorganization, reclassification, consolidation or merger. For purposes
         of this Section, the Conversion Price upon such conversion shall be the
         Conversion Price in effect immediately prior to such reorganization,
         reclassification, consolidation or merger. Notwithstanding anything
         herein to the contrary, the Corporation will not effect any such
         reorganization, reclassification, merger or consolidation unless prior
         to the consummation thereof, the corporation or other entity which may
         be required to deliver any stock, securities or other assets upon the
         conversion of the Series A Preferred Stock shall agree by an instrument
         in writing to deliver such stock, cash, securities or other assets to
         the holders of the Series A Preferred Stock. A sale, transfer or lease
         of all or substantially all of the assets of the Corporation to another
         person shall be deemed a reorganization, reclassification,
         consolidation or merger for the foregoing purposes.

<PAGE>

                       (e) No Impairment. The Corporation will not, by amendment
         of its Certificate of Incorporation or through any reorganization,
         recapitalization, 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 Corporation, but
         will at all times in good faith assist in the carrying out of all the
         provisions of Section 5 hereof and in the taking of all such action as
         may be necessary or appropriate in order to protect the conversion
         rights of the holders of the Series A Preferred Stock against
         impairment.

                       (f) No Fractional Shares. No fractional shares shall be
         issued upon conversion of the Series A Preferred Stock. If more than
         one share of the Series A Preferred Stock is to be converted at one
         time by the same stockholder, the number of full shares issuable upon
         such conversion shall be computed on the basis of the aggregate amount
         of the shares to be converted. Instead of any fractional shares of
         Common Stock which would otherwise be issuable upon conversion of any
         shares of Series A Preferred Stock, the Corporation will pay a cash
         adjustment in respect of such fractional interest in an amount equal to
         the same fraction of the Conversion Price per share of Common Stock at
         the close of business on the day of conversion which such fractional
         share of Series A Preferred Stock would be convertible into on such
         date.

                       (g) Shares to be Reserved. The Corporation shall at all
         times reserve and keep available, out of its authorized and unissued
         stock, solely for the purpose of effecting the conversion of the Series
         A Preferred Stock, such number of shares of Common Stock as shall from
         time to time be sufficient to effect the conversion of all of the
         Series A Preferred Stock from time to time outstanding. The Corporation
         shall from time to time, in accordance with the laws of the State of
         Florida, increase the authorized number of shares of Common Stock if at
         any time the number of shares of authorized but unissued Common Stock
         shall be insufficient to permit the conversion in full of the Series A
         Preferred Stock.

                       (h) Taxes and Charges. - The Corporation will pay any and
         all issue or other taxes that may be payable in respect of any issuance
         or delivery of shares of Common Stock on conversion of the Series A
         Preferred Stock. The Corporation shall not, however, be required to pay
         any tax which may be payable in respect of any transfer involved in the
         issuance or delivery of Common Stock in a name other than that of the
         Series A Preferred Stock, and no such issuance or delivery shall be
         made unless and until the Person requesting such issuance has paid to
         the Corporation the amount of such tax or has established, to the
         satisfaction of the Corporation, that such tax has been paid.

                       (i) Accrued Dividends. Upon conversion of any shares of
         Series A Preferred Stock, the holder thereof shall be entitled to
         receive any accrued but unpaid dividends in respect of the shares of
         Series A Preferred Stock so converted up to the effective date of such
         conversion.

<PAGE>

                       (j) Closing of Books. The Corporation will at no time
         close its transfer books against the transfer of any shares of Series A
         Preferred Stock or of any shares of Common Stock issued or issuable
         upon the conversion of any shares of Series A Preferred Stock in any
         manner which interferes with the timely conversion of such shares of
         Series A Preferred Stock.

                  6. Optional Redemption by Corporation.

                       (a) In General. Subject to the provisions of this Section
         6, the Corporation shall have the right and option at any time and from
         time to time to purchase and redeem all or any portion of the Shares
         then outstanding at a price per Share equal to the sum of the
         Liquidation Value of the Shares to be redeemed plus all accrued but
         unpaid dividends thereon through the date of redemption (the
         "Redemption Price").

                       (b) Procedure.

                           (i) The Corporation's right to redeem the Series A
         Preferred Stock pursuant to Section 6(a) shall be conditioned upon the
         Corporation giving notice (a "Call Notice"), by first class mail,
         postage prepaid, of the exercise of such to all the holders of the
         Series A Preferred Stock not less than thirty (30) days prior to the
         effective date of redemption set forth in such notice (the "Call
         Date"). Each Call Notice shall state: (i) the Call Date, (ii) the total
         number of Shares to be redeemed by the Corporation pursuant to Section
         6(a), (iii) the number of Shares of the holder to be redeemed; (iv) the
         Redemption Price, (v) the place or places where certificates for such
         shares are to be surrendered for payment of the Redemption Price, and
         (vi) that payment in cash will be made by the Corporation upon
         presentation and surrender of such Series A Preferred Stock.

                           (ii) Upon the holder's surrender of the
         certificate(s) representing any Shares being redeemed in accordance
         with the Call Notice (properly endorsed or assigned for transfer, if
         the Board of Directors shall so require and the Call Notice shall so
         state), such - Shares shall be purchased by the Corporation and the
         Corporation shall pay the applicable Redemption Price to the holder on
         the Call Date. Upon such payment, dividends on the shares of the Series
         A Preferred Stock identified in the Call Notice shall cease to accrue
         and such Shares shall be deemed no longer outstanding.

                           (iii) Notwithstanding the foregoing, if a Call Notice
         has been given pursuant to this Section 6 and any holder of Shares
         shall, prior to the close of business on the twentieth (20th) day after
         receipt of such Call Notice, give written notice to the Corporation
         pursuant to Section 5(b) hereof of the conversion of any or all of the
         Shares held by such holder (accompanied by a certificate or
         certificates for such shares, duly endorsed or assigned to the
         Corporation), then (i) the conversion of such shares to be purchased
         shall become effective as provided in Section 5 hereof and (ii) the
         Corporation's right to redeem such Shares under this Section shall
         terminate.

<PAGE>

                       (c) Pro Rata Redemption. If the Corporation shall elect
         at any time to redeem less than all of the issued and outstanding
         Shares, the Corporation shall redeem from each holder the same
         proportion of such holder's Shares as the total number of Shares
         subject to redemption bears to the total number of all Shares then
         issued and outstanding.

              7. Redemption On Fundamental Change.

                       (a) Option of Holder. In the event of any Fundamental
         Change, each holder of Series A Preferred Stock shall have the right
         and option to require the Corporation to purchase and redeem at the
         Redemption Price any or all of such holder's Series A Preferred Stock
         on such date (the "Optional Redemption Date") as the Corporation may
         designate for the purpose, provided the Optional Redemption Date shall
         be not less than ten (10) days or more than twenty (20) days following
         the Final Surrender Date. Any provision of the Articles of
         Incorporation of the Corporation notwithstanding, the Corporation shall
         have no right or power to consummate any Fundamental Change unless
         proper and adequate provision has been made to satisfy its obligations
         under this Section 7(a).

                  (b) Procedure.

                           (i) Not less than thirty (30) days following the
         occurrence of a Fundamental Change, the Corporation shall mail to all
         holders of record of the Series A Preferred Stock a notice in the
         manner and containing substantially the information set out in Section
         6(c) except that, for purposes of this Section 7(b)(i), such notice
         shall also describe the occurrence and terms of such Fundamental Change
         and notify the holder of the holder's optional redemption rights rising
         under this Section 7 as a result thereof.

                           (ii) A holder of Series A Preferred Stock shall
         exercise its option under Section 7(a), if at all, by surrendering, not
         later than the date which thirty (30) days following Corporation's
         notice under Section 7(b)(i) (the "Final Surrender Date"), the
         certificates representing the shares of Series A Preferred Stock with
         respect to which such option is being exercised (properly endorsed or
         assigned for transfer, if the Board of Directors shall so require and
         the Corporation's notice shall so state), together with a written
         notice of such holder's election to have the Corporation repurchase
         such Shares pursuant to this Section 7.

                           (iii) Subject to the holder's due compliance with the
         provisions of Section 7(b)(ii), the surrendered Shares shall be
         purchased by the Corporation and the Corporation shall pay the
         applicable Redemption Price to the holder on the Optional Redemption
         Date. Upon and subject to such payment, dividends on such Shares shall
         cease to accrue and such Shares shall be deemed no longer outstanding.

              8. Manner of Payment. Payments and distributions required or
         permitted hereunder in respect of Shares shall be paid solely in cash.

<PAGE>

                  9. Shares to be Retired. Any share of Series A Preferred Stock
         converted to Common Stock pursuant to Section 5 or redeemed by the
         Corporation pursuant to the provisions of Section 6 or Section 7 shall
         be retired and cancelled and shall upon cancellation be restored to the
         status of authorized but unissued shares of preferred stock, subject to
         reissuance by the Board of Directors as shares of preferred stock of
         one or more other series but not as shares of Series A Preferred Stock.

                   10. Definitions. As used herein, the following terms not
         elsewhere defined in the text shall have the respective meanings set
         forth below:

                       "Business Day" means any day that is not a Saturday, a
         Sunday or any day on which banks in the State of Florida are authorized
         or obligated to close.

                       "Common Stock" means the common stock of the Corporation,
         par value $.001 per share.

                       "Fundamental Change" means any of the following:

                           (i) the sale (or the functional equivalent of a sale)
         of all or substantially all of the assets of the Corporation;

                           (ii) any consolidation of the Corporation with or
         merger of the Corporation into any other entity, any merger of another
         entity into the Corporation, or any other business combination
         involving the Corporation which results in the holders of the
         Corporation's stock immediately prior to giving effect to such
         transaction owning shares of capital stock of the surviving corporation
         in such transaction representing (x) fifty percent (50%) or less of the
         total voting power of all shares of capital stock of such surviving
         corporation entitled to vote generally in the election of directors or
         (y) fifty percent (50%) or less of the total value of all capital stock
         of such surviving corporation; or

                           (iii) the commencement by the Corporation of a
         voluntary case under the Federal bankruptcy laws or any other
         applicable Federal or state bankruptcy, insolvency or similar law, the
         consent by the Corporation to the entry of an order for relief in an
         involuntary case under such law or to the appointment of a receiver,
         liquidator, assignee, custodian, trustee, sequestrator (or other
         similar official) of the Corporation or of any substantial part of its
         property; or any assignment by the Corporation for the benefit of its
         creditors; any admission by the Corporation in writing of its inability
         to pay its debts generally as they become due.

                       "Issue Date" means, as to any share of Series A Preferred
         Stock, the date of original issuance thereof by the Corporation.

<PAGE>

                       "Junior Security" means the Common Stock and any other
         class of capital stock or series of preferred stock of the Corporation
         which does not expressly provide that it ranks senior to or pari passe
         with the Series A Preferred Stock as to dividends, other distributions,
         liquidation preference or otherwise.

                       "Market Price," as to the Common Stock, means the average
         of the closing prices of sales of shares of Common Stock (i) on any
         principal United States securities exchange or the Nasdaq Stock Market
         (whichever may apply) at any time the Common Stock is so listed or (ii)
         otherwise in over-the-counter trading, in each such case averaged for a
         period of thirty (30) consecutive Business Days prior to the date as of
         which the Market Price is being determine. If at any time such security
         is not listed on any exchange or the Nasdaq Stock Market or otherwise
         traded over-the-counter, the Market Price shall be deemed to be the
         fair value thereof determined by an investment banking firm of
         nationally recognized standing selected by the Board of Directors of
         the Corporation and acceptable to holders of a majority of the Series A
         Preferred Stock, as of the most recent practicable date when the
         determination is to be made, taking into account the value of the
         Corporation as a going concern, and without taking into account any
         lack of liquidity of such security or any discount for a minority
         interest.

<PAGE>

         (D)      DESIGNATION OF SERIES B PREFERRED STOCK.

                  1. DESIGNATION. One million (1,000,000) shares of preferred
stock, par value $0.001 per share, of the Corporation are hereby constituted as
a series of the preferred stock of the Corporation and designated as "Series B
Preferred Stock".

                  2. DIVIDEND RIGHTS. Dividends shall be declared and set aside
for any shares of the Series" B" Preferred Stock in the same manner as the
Common Stock.

                  3. PREFERENCE ON LIQUIDATION. In the event of any liquidation,
dissolution or winding up of the Corporation, the holders of the Series "B"
Preferred Stock shall be entitled to be paid out of the assets of the
Corporation available for distribution to its shareholders in the same manner
as, and without preference over, the holders of Common Stock.

                  4. VOTING RIGHTS. Each holder of Series "B" Preferred Stock
shall be entitled to vote on all matters for which the shareholders of the
Corporation have the right to vote and shall be entitled to one hundred (100)
votes per share. The holders of shares of Series "B" Preferred Stock and the
holders of the Common Stock shall vote together as a single class on all matters
for which the shareholders of the Corporation shall be entitled to vote.

                  5. OPTIONAL REDEMPTION BY CORPORATION. The Corporation shall
have the right and option at any time and from time to time to purchase and
redeem all of the Series "B" Preferred Stock, in its absolute discretion, in
exchange for the issuance of one million (1,000,000) shares of Common Stock. The
Corporation's right to redeem the Series B Preferred Stock shall be conditioned
upon the Corporation giving notice ("Call Notice") by first class mail, postage
prepaid, of the exercise of such to all of the holders of the Series B Preferred
Stock not less than five (5) days prior to the effective date of the redemption
set forth in such Call Notice. The Call Notice shall state: (i) the Call Date;
(ii) the total number of shares of Series B Preferred Stock to be redeemed by
the Corporation; (iii) the place where certificates for such shares are to be
surrendered for payment.

                  6. CONVERSION RIGHTS. The holders of the Series B Preferred
Stock shall not have the right to convert such Shares into Common Stock of the
Corporation.

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