Document:

Exhibit 10.4
    

    

    

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

    

    

    
      SERIES BD COMMON STOCK PURCHASE WARRANT
    

    

    

    
      Warrant No.:  BD-10
    

    
      to Purchase 440,000 Shares
of Common Stock of
NetTalk.com,
      Inc.
    

    

    

    
      THIS SERIES BD COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, Midtown Partners & Co., LLC (the “Holder”),
      is entitled, upon the terms and subject to the limitations on exercise
      and the conditions hereinafter set forth, at any time on or after the
      date hereof (the “Initial Exercise Date”) and on or prior
      to the close of business on the fifth (5th) anniversary of the Initial
      Exercise Date (the “Termination Date”) but not thereafter,
      to subscribe for and purchase from NetTalk.com, Inc., a Florida
      corporation (the “Company”), up to 440,000 shares (the “Warrant
      Shares”) of Common Stock, par value $.001 per share, of the Company
      (the “Common Stock”).  The purchase price of one share of
      Common Stock under this Warrant shall be equal to the Exercise Price, as
      defined in Section 2(b).  
    

    
      Section 1.          Definitions.  Capitalized
      terms used and not otherwise defined herein shall have the meanings set
      forth in that certain Securities Purchase Agreement of even date
      herewith (the “Purchase Agreement”).
    

    
      Section 2.          Exercise.
    

    
      a)  Exercise of Warrant. Exercise of the purchase
      rights represented by this Warrant may be made, in whole or in part, at
      any time or times on or after the Initial Exercise Date and on or before
      the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise form annexed hereto (or such
      other office or agency of the Company as it may designate by notice in
      writing to the registered Holder at the address of such Holder appearing
      on the books of the Company); and, within three (3) Trading Days of the
      date said Notice of Exercise is delivered to the Company, the Company
      shall have received payment of the aggregate Exercise Price of the
      shares thereby purchased by wire transfer or cashier’s check drawn on a
      United States bank.  Notwithstanding anything herein to the contrary,
      the Holder shall not be required to physically surrender this Warrant to
      the Company until the Holder has purchased all of the Warrant Shares
      available hereunder and the Warrant has been exercised in full, in which
      case, the Holder shall surrender this Warrant to the Company for
      cancellation within three (3) Trading Days of the date the final Notice
      of Exercise is delivered to the Company.  Partial exercises of this
      Warrant resulting in purchases of a portion of the total number of
      Warrant Shares available hereunder shall have the effect of lowering the
      outstanding number of Warrant Shares purchasable hereunder in an amount
      equal to the applicable number of Warrant Shares purchased.  The Holder
      and the Company shall maintain records showing the number of Warrant
      Shares purchased and the date of such purchases.  The Company shall
      deliver any objection to any Notice of Exercise within two (2) Trading
      Days of receipt of such notice.  THE HOLDER AND ANY
      ASSIGNEE, BY ACCEPTANCE OF THIS WARRANT, ACKNOWLEDGE AND AGREE THAT, BY
      REASON OF THE PROVISIONS OF THIS PARAGRAPH, FOLLOWING THE PURCHASE OF A
      PORTION OF THE WARRANT SHARES HEREUNDER, THE NUMBER OF WARRANT SHARES
      AVAILABLE FOR PURCHASE HEREUNDER AT ANY GIVEN TIME MAY BE LESS THAN THE
      AMOUNT STATED ON THE FACE HEREOF.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      b)  Exercise Price.  The exercise price per share of
      the Common Stock under this Warrant shall be $0.25, subject to
      adjustment hereunder (the “Exercise Price”).
    

    
      c)  Exercise Limitations.
    

    
      i.  Holder’s Restrictions.  At any time after the
      Company has had a registration statement filed pursuant to the
      Securities Act or the Exchange Act declared effective, the Company shall
      not effect any exercise of this Warrant, and a  Holder shall not have
      the right to exercise any portion of this Warrant, pursuant to Section
      2 or otherwise, to the extent that after giving effect to such
      issuance after exercise as set forth on the applicable Notice of
      Exercise, such Holder (together with such Holder’s Affiliates, and any
      other person or entity acting as a group together with such Holder or
      any of such Holder’s Affiliates), as set forth on the applicable Notice
      of Exercise, would beneficially own in excess of the Beneficial
      Ownership Limitation (as defined below).  For purposes of the foregoing
      sentence, the number of shares of Common Stock beneficially owned by
      such Holder and its Affiliates shall include the number of shares of
      Common Stock issuable upon exercise of this Warrant with respect to
      which such determination is being made, but shall exclude the number of
      shares of Common Stock which would be issuable upon (A) exercise of the
      remaining, nonexercised portion of this Warrant beneficially owned by
      such Holder or any of its Affiliates and (B) exercise or conversion of
      the unexercised or nonconverted portion of any other securities of the
      Company (including, without limitation, any other Series A Preferred
      Stock or Warrants) subject to a limitation on conversion or exercise
      analogous to the limitation contained herein beneficially owned by such
      Holder or any of its Affiliates. Except as set forth in the preceding
      sentence, for purposes of this Section 2(c)(i), beneficial
      ownership shall be calculated in accordance with Section 13(d) of the
      Exchange Act and the rules and regulations promulgated thereunder, it
      being acknowledged by a Holder that the Company is not representing to
      such Holder that such calculation is in compliance with Section 13(d) of
      the Exchange Act and such Holder is solely responsible for any schedules
      required to be filed in accordance therewith.  To the extent that the
      limitation contained in this Section 2(c)(i) applies, the
      determination of whether this Warrant is exercisable (in relation to
      other securities owned by such Holder together with any Affiliates) and
      of which a portion of this Warrant is exercisable shall be in the sole
      discretion of a Holder, and the submission of a Notice of Exercise shall
      be deemed to be each Holder’s determination of whether this Warrant is
      exercisable (in relation to other securities owned by such Holder
      together with any Affiliates) and of which portion of this Warrant is
      exercisable, in each case subject to such aggregate percentage
      limitation, and the Company shall have no obligation to verify or
      confirm the accuracy of such determination.  In addition, a
      determination as to any group status as contemplated above shall be
      determined in accordance with Section 13(d) of the Exchange Act and the
      rules and regulations promulgated thereunder.  For purposes of this Section
      2(c), in determining the number of outstanding shares of Common
      Stock, a Holder may rely on the number of outstanding shares of Common
      Stock as reflected in (X) the Company’s most recent Form 10-Q or Form
      10-K, as the case may be, (Y) a more recent public announcement by the
      Company or (Z) any other notice by the Company or the Company’s transfer
      agent setting forth the number of shares of Common Stock
      outstanding.  Upon the written or oral request of a Holder, the Company
      shall within two (2) Trading Days confirm orally and in writing to such
      Holder the number of shares of Common Stock then outstanding.  In any
      case, the number of outstanding shares of Common Stock shall be
      determined after giving effect to the conversion or exercise of
      securities of the Company, including this Warrant, by such Holder or its
      Affiliates since the date as of which such number of outstanding shares
      of Common Stock was reported. The “Beneficial Ownership
      Limitation” shall be 4.99% of the number of shares of the Common
      Stock outstanding immediately after giving effect to the issuance of
      shares of Common Stock issuable upon exercise of this Warrant.  The
      Beneficial Ownership Limitation provisions of this Section 2(c)(i)
      may be waived by such Holder, at the election of such Holder, upon not
      less than 61 days’ prior notice to the Company to change the Beneficial
      Ownership Limitation to 9.99% of the number of shares of the Common
      Stock outstanding immediately after giving effect to the issuance of
      shares of Common Stock upon exercise of this Warrant, and the provisions
      of this Section 2(c)(i) shall continue to apply. Upon such a
      change by a Holder of the Beneficial Ownership Limitation from such
      4.99% limitation to such 9.99% limitation, the Beneficial Ownership
      Limitation may not be further waived by such Holder.  The provisions of
      this paragraph shall be construed and implemented in a manner otherwise
      than in strict conformity with the terms of this Section 2(c)(i)
      to correct this paragraph (or any portion hereof) which may be defective
      or inconsistent with the intended Beneficial Ownership Limitation herein
      contained or to make changes or supplements necessary or desirable to
      properly give effect to such limitation. The limitations contained in
      this paragraph shall apply to a successor holder of this Warrant.  Notwithstanding
      anything herein to the contrary, this provision shall not apply to any
      Holder that has elected to waive this provision on its signature page to
      the Securities Purchase Agreement, on or before the date of closing.
    

    
      
        

        

      

      
        
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      d)  Mechanics of Exercise.
    

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

    
      ii.  Delivery of Certificates Upon Exercise.
      Certificates for Warrant Shares purchased hereunder shall be transmitted
      by the transfer agent of the Company to the Holder by crediting the
      account of the Holder’s prime broker with the Depository Trust Company
      through its Deposit/Withdrawal at Custodian (“DWAC”) system
      if the Company is a participant in such system, and otherwise by
      delivery to the address specified by the Holder in the Notice of
      Exercise, within five (5) Trading Days from the delivery to the Company
      of the Notice of Exercise form, surrender of this Warrant (if required)
      and payment of the aggregate Exercise Price as set forth above (“Warrant
      Share Delivery Date”).  This Warrant shall be deemed to have been
      exercised on the date the Exercise Price is received by the
      Company.  The Warrant Shares shall be deemed to have been issued, and
      Holder or any other person so designated to be named therein shall be
      deemed to have become a holder of record of such shares for all
      purposes, as of the date the Warrant has been exercised by payment to
      the Company of the Exercise Price (or by cashless exercise, if
      permitted) and all taxes required to be paid by the Holder, if any,
      pursuant to Section 2(d)(vii) prior to the issuance of such
      shares, have been paid.  
    

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

    
      
        

        

      

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

    
      v.  Obligation Absolute;  Damages.  The
      Company’s obligations to issue and deliver the certificates representing
      the Warrant Shares upon exercise of the Warrant in accordance with the
      terms hereof are absolute and unconditional, irrespective of any action
      or inaction by the Holder to enforce the same, any waiver or consent
      with respect to any provision hereof, the recovery of any judgment
      against any Person or any action to enforce the same, or any setoff,
      counterclaim, recoupment, limitation or termination, or any breach or
      alleged breach by the Holder or any other Person of any obligation to
      the Company or any violation or alleged violation of law by the Holder
      or any other person, and irrespective of any other circumstance which
      might otherwise limit such obligation of the Company to the Holder in
      connection with the issuance of such certificates representing the
      Warrant Shares.  The Company shall issue the certificates representing
      the Warrant Shares or, if applicable, cash, upon a properly noticed
      exercise.  If the Company fails to deliver to the Holder such
      certificate or certificates pursuant to Section 2(d) within five
      (5) Trading Days of the Warrant Share Delivery Date applicable to such
      exercise, the Company shall pay to such Holder, in cash, as liquidated
      damages and not as a penalty, for each $1,000 of VWAP of the Common
      Stock, $10 per Trading Day (increasing to $20 per Trading Day after ten
      (10) Trading Days after the Warrant Share Delivery Date) for each
      Trading Day after the Warrant Share Delivery Date until such
      certificates are delivered.
    

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

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

    
      
        

        

      

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

    
      e)  Cashless Exercise.  At any time after the Initial
      Exercise Date this Warrant may also be exercised at such time by means
      of a “cashless exercise” in which the Holder shall be entitled to
      receive a certificate for the number of Warrant Shares equal to the
      quotient obtained by dividing [(A-B) (X)] by (A), where:
    

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

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

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

    
      Section 3.          Certain
      Adjustments.
    

    
      a)  Stock Dividends and Splits.  If the Company, at any
      time while this Warrant is outstanding: (i) pays a stock dividend or
      otherwise makes a distribution or distributions on shares of its Common
      Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include
      any shares of Common Stock issued by the Company upon exercise of this
      Warrant), provided that this clause (i) shall not apply to shares of
      Common Stock issued solely in connection with dividends required to be
      paid under the terms and conditions of the Series D Convertible
      Preferred Stock, and/ or other securities issued and outstanding on the
      date of this Warrant, provided that such stock dividend or distribution
      shall be issued pursuant to the terms of such other securities as of the
      date of this Warrant, (ii) subdivides outstanding shares of Common Stock
      into a larger number of shares, (iii) combines (including by way of
      reverse stock split) outstanding shares of Common Stock into a smaller
      number of shares, or (iv) issues by reclassification of shares of the
      Common Stock any shares of capital stock of the Company, then in each
      case the Exercise Price shall be multiplied by a fraction of which the
      numerator shall be the number of shares of Common Stock (excluding
      treasury shares, if any) outstanding immediately before such event and
      of which the denominator shall be the number of shares of Common Stock
      outstanding immediately after such event and the number of shares
      issuable upon exercise of this Warrant shall be proportionately
      adjusted.  Any adjustment made pursuant to this Section 3(a)
      shall become effective immediately after the record date for the
      determination of stockholders entitled to receive such dividend or
      distribution and shall become effective immediately after the effective
      date in the case of a subdivision, combination or re-classification.
    

    
      
        

        

      

      
        
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      b)  Subsequent Equity Sales.  If the Company or any
      Subsidiary thereof, as applicable, at any time while this Warrant is
      outstanding, sells, grants or otherwise issues (or announces any sale,
      grant or other issuance related to the foregoing) any Common Stock or
      Common Stock Equivalents entitling any Person to acquire shares of
      Common Stock, at an effective price per share less than the then
      Exercise Price (such lower price, the “Base Share Price”
      and such issuances collectively, a “Dilutive Issuance”) (if
      the holder of the Common Stock or Common Stock Equivalents so issued
      shall at any time, whether by operation of purchase price adjustments,
      reset provisions, floating conversion, exercise or exchange prices or
      otherwise, or due to warrants, options or rights per share which are
      issued in connection with such issuance, be entitled to receive shares
      of Common Stock at an effective price per share which is less than the
      Exercise Price, such issuance shall be deemed to have occurred for less
      than the Exercise Price on such date of the Dilutive Issuance), then the
      Exercise Price shall be reduced and only reduced to equal the Base Share
      Price.  As a point of clarification, the number of Warrant Shares
      issuable hereunder shall not be increased upon an adjustment to
      the Exercise Price under this Section 3(b). Such adjustment to
      the Exercise Price shall be made whenever such Common Stock or Common
      Stock Equivalents are issued. Notwithstanding the foregoing, no
      adjustments shall be made, paid or issued under this Section 3(b)
      in respect of an Exempt Issuance or issuances subject to Section 3(a)
      above.  The Company shall notify the Holder in writing, no later than
      the third (3rd) Trading Day following the issuance of any
      Common Stock or Common Stock Equivalents subject to this section,
      indicating therein the applicable issuance price, or applicable reset
      price, exchange price, conversion price and other pricing terms (such
      notice the “Dilutive Issuance Notice”).  For purposes of
      clarification, whether or not the Company provides a Dilutive Issuance
      Notice pursuant to this Section 3(b), upon the occurrence of any
      Dilutive Issuance, after the date of such Dilutive Issuance, the Holder
      is entitled to receive a number of Warrant Shares based upon the Base
      Share Price regardless of whether the Holder accurately refers to the
      Base Share Price in the Notice of Exercise.
    

    
      c)  Subsequent Rights Offerings.  If the Company, at
      any time while this Warrant is outstanding, shall issue rights, options
      or warrants to all holders of Common Stock (and not to Holders)
      entitling them to subscribe for or purchase shares of Common Stock at a
      price per share less than the VWAP as of the record date mentioned
      below, then the Exercise Price shall be multiplied by a fraction, of
      which the denominator shall be the number of shares of the Common Stock
      outstanding on the date of issuance of such rights or warrants plus the
      number of additional shares of Common Stock offered for subscription or
      purchase, and of which the numerator shall be the number of shares of
      the Common Stock outstanding on the date of issuance of such rights,
      options or warrants plus the number of shares which the aggregate
      offering price of the total number of shares so offered (assuming
      receipt by the Company in full of all consideration payable upon
      exercise of such rights, options or warrants) would purchase at such
      VWAP.  Such adjustment shall be made whenever such rights, options or
      warrants are issued, and shall become effective immediately after the
      record date for the determination of stockholders entitled to receive
      such rights, options or warrants.
    

    
      
        

        

      

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

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

    
      
        

        

      

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

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

    
      h)  Notice to Holders.
    

    
      i.  Adjustment to Exercise Price.  Whenever the
      Exercise Price is adjusted pursuant to any provision of this Section 3,
      the Company shall promptly mail to each Holder a notice setting forth
      the Exercise Price after such adjustment and setting forth a brief
      statement of the facts requiring such adjustment.
    

    
      ii.  Notice to Allow Exercise by Holder.  If (A) the
      Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special
      nonrecurring cash dividend on or a redemption of the Common Stock; (C)
      the Company shall authorize the granting to all holders of the Common
      Stock rights or warrants to subscribe for or purchase any shares of
      capital stock of any class or of any rights; (D) the approval of any
      stockholders of the Company shall be required in connection with any
      reclassification of the Common Stock, any consolidation or merger to
      which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share
      exchange whereby the Common Stock is converted into other securities,
      cash or property; (E) the Company shall authorize the voluntary or
      involuntary dissolution, liquidation or winding up of the affairs of the
      Company; then, in each case, the Company shall cause to be mailed to the
      Holder at its last address as it shall appear upon the Warrant Register
      of the Company, at least ten (10) calendar days prior to the applicable
      record or effective date hereinafter specified, a notice stating (X) the
      date on which a record is to be taken for the purpose of such dividend,
      distribution, redemption, rights or warrants, or if a record is not to
      be taken, the date as of which the holders of the Common Stock of record
      to be entitled to such dividend, distributions, redemption, rights or
      warrants are to be determined or (Y) the date on which such
      reclassification, consolidation, merger, sale, transfer or share
      exchange is expected to become effective or close, and the date as of
      which it is expected that holders of the Common Stock of record shall be
      entitled to exchange their shares of the Common Stock for securities,
      cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided that
      the failure to mail such notice or any defect therein or in the mailing
      thereof shall not affect the validity of the corporate action required
      to be specified in such notice.  The Holder is entitled to exercise this
      Warrant during the ten (10) day period commencing on the date of such
      notice to the effective date of the event triggering such notice.
    

    
      
        

        

      

      
        
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      Section 4.          Transfer
      of Warrant.
    

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

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

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

    
      d)  Transfer Restrictions.  If, at the time of the
      surrender of this Warrant in connection with any transfer of this
      Warrant, the transfer of this Warrant shall not be registered pursuant
      to an effective registration statement under the Securities Act and
      under applicable state securities or blue sky laws, the Company may
      require, as a condition of allowing such transfer (i) that the Holder or
      transferee of this Warrant, as the case may be, furnish to the Company a
      written opinion of counsel (which opinion shall be in form, substance
      and scope customary for opinions of counsel in comparable transactions)
      to the effect that such transfer may be made without registration under
      the Securities Act and under applicable state securities or blue sky
      laws, (ii) that the holder or transferee execute and deliver to the
      Company an investment letter in form and substance acceptable to the
      Company and (iii) that the transferee be an “accredited investor” as
      defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated
      under the Securities Act or a “qualified institutional buyer” as defined
      in Rule 144A(a) under the Securities Act.
    

    
      
        

        

      

      
        
          9
        

        
          

        

      

      
        

        

      

    

    
      Section 5.          Miscellaneous.
    

    
      a)  No Rights as Shareholder Until Exercise.  This
      Warrant does not entitle the Holder to any voting rights or other rights
      as a shareholder of the Company prior to the exercise hereof as set
      forth in Section 2.  
    

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

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

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

    
      
        

        

      

      
        
          10
        

        
          

        

      

      
        

        

      

    

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

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

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

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

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

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

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

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

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

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

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

    

    

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

    
      
        

        

      

      
        
          11
        

        
          

        

      

      
        

        

      

    

    

    

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

    

    

    
      Original Issuance Date:  September __, 2009
    

    

    

    
    	
           
        	
          NET TALK.COM, INC.
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
             
          

        
	

        	
          
            Name: Anastasios Kyriakides
          

        
	

        	
          
            Title: Chief Executive Officer
          

        

    

    

    

    
      
        

        

      

      
        
          12
        

        
          

        

      

      
        

        

      

    

    

    

    
      NOTICE OF EXERCISE
    

    

    

    
      TO:       [_______________________]
    

    

    

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

    
      (2)  Payment will be made in lawful money of the United States.
    

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

    
                   _______________________________
    

    

    

    
      The Warrant Shares shall be delivered to the following DWAC Account
      Number or by physical delivery of a certificate to:
    

    

    

    
      _______________________________
    

    

    

    
      _______________________________
    

    

    

    
      _______________________________
    

    

    

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

    

    

    
      [SIGNATURE OF HOLDER]
    

    

    

    
      Name of Investing Entity:                                                                                                       
    

    
      Signature of Authorized Signatory of Investing Entity:                                                                          
    

    
      Name of Authorized Signatory:                                                                                                   
    

    
      Title of Authorized Signatory:                                                                                                  
    

    
      Date:                                                                                                                           
    

    

    

    
      
        

        

      

      
        
          13
        

        
          

        

      

      
        

        

      

    

    

    

    
      ASSIGNMENT FORM
    

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

    

    

    
      FOR VALUE RECEIVED, [____] all of or [_______] shares of the foregoing
      Warrant and all rights evidenced thereby are hereby assigned to
    

    
      _______________________________________________ whose address is
    

    
      _______________________________________________________________.
    

    

    

    
      _______________________________________________________________
    

    

    

    
                                                                            Dated:  ______________,
      _______
    

    

    

    

    

    
                                    Holder’s Signature:
      _____________________________
    

    

    

    
                                    Holder’s
      Address:   _____________________________
    

    

    

    
                                                               _____________________________
    

    

    

    

    

    

    

    
      Signature Guaranteed:  ___________________________________________
    

    

    

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

    
      

      

      

      

      

      

      

      

      

      14Exhibit 10.5
    

    

    

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

    

    

    
      SERIES BD COMMON STOCK PURCHASE WARRANT
    

    

    

    
      Warrant No.:  BD-11
    

    
      to Purchase 440,000 Shares
of Common Stock of
NetTalk.com,
      Inc.
    

    

    

    
      THIS SERIES BD COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, Midtown Partners & Co., LLC (the “Holder”),
      is entitled, upon the terms and subject to the limitations on exercise
      and the conditions hereinafter set forth, at any time on or after the
      date hereof (the “Initial Exercise Date”) and on or prior
      to the close of business on the fifth (5th) anniversary of the Initial
      Exercise Date (the “Termination Date”) but not thereafter,
      to subscribe for and purchase from NetTalk.com, Inc., a Florida
      corporation (the “Company”), up to 440,000 shares (the “Warrant
      Shares”) of Common Stock, par value $.001 per share, of the Company
      (the “Common Stock”).  The purchase price of one share of
      Common Stock under this Warrant shall be equal to the Exercise Price, as
      defined in Section 2(b).  
    

    
      Section 1.          Definitions.  Capitalized
      terms used and not otherwise defined herein shall have the meanings set
      forth in that certain Securities Purchase Agreement of even date
      herewith (the “Purchase Agreement”).
    

    
      Section 2.          Exercise.
    

    
      a)  Exercise of Warrant. Exercise of the purchase
      rights represented by this Warrant may be made, in whole or in part, at
      any time or times on or after the Initial Exercise Date and on or before
      the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise form annexed hereto (or such
      other office or agency of the Company as it may designate by notice in
      writing to the registered Holder at the address of such Holder appearing
      on the books of the Company); and, within three (3) Trading Days of the
      date said Notice of Exercise is delivered to the Company, the Company
      shall have received payment of the aggregate Exercise Price of the
      shares thereby purchased by wire transfer or cashier’s check drawn on a
      United States bank.  Notwithstanding anything herein to the contrary,
      the Holder shall not be required to physically surrender this Warrant to
      the Company until the Holder has purchased all of the Warrant Shares
      available hereunder and the Warrant has been exercised in full, in which
      case, the Holder shall surrender this Warrant to the Company for
      cancellation within three (3) Trading Days of the date the final Notice
      of Exercise is delivered to the Company.  Partial exercises of this
      Warrant resulting in purchases of a portion of the total number of
      Warrant Shares available hereunder shall have the effect of lowering the
      outstanding number of Warrant Shares purchasable hereunder in an amount
      equal to the applicable number of Warrant Shares purchased.  The Holder
      and the Company shall maintain records showing the number of Warrant
      Shares purchased and the date of such purchases.  The Company shall
      deliver any objection to any Notice of Exercise within two (2) Trading
      Days of receipt of such notice.  THE HOLDER AND ANY
      ASSIGNEE, BY ACCEPTANCE OF THIS WARRANT, ACKNOWLEDGE AND AGREE THAT, BY
      REASON OF THE PROVISIONS OF THIS PARAGRAPH, FOLLOWING THE PURCHASE OF A
      PORTION OF THE WARRANT SHARES HEREUNDER, THE NUMBER OF WARRANT SHARES
      AVAILABLE FOR PURCHASE HEREUNDER AT ANY GIVEN TIME MAY BE LESS THAN THE
      AMOUNT STATED ON THE FACE HEREOF.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      b)  Exercise Price.  The exercise price per share of
      the Common Stock under this Warrant shall be $0.50, subject to
      adjustment hereunder (the “Exercise Price”).
    

    
      c)  Exercise Limitations.
    

    
      i.  Holder’s Restrictions.  At any time after the
      Company has had a registration statement filed pursuant to the
      Securities Act or the Exchange Act declared effective, the Company shall
      not effect any exercise of this Warrant, and a  Holder shall not have
      the right to exercise any portion of this Warrant, pursuant to Section
      2 or otherwise, to the extent that after giving effect to such
      issuance after exercise as set forth on the applicable Notice of
      Exercise, such Holder (together with such Holder’s Affiliates, and any
      other person or entity acting as a group together with such Holder or
      any of such Holder’s Affiliates), as set forth on the applicable Notice
      of Exercise, would beneficially own in excess of the Beneficial
      Ownership Limitation (as defined below).  For purposes of the foregoing
      sentence, the number of shares of Common Stock beneficially owned by
      such Holder and its Affiliates shall include the number of shares of
      Common Stock issuable upon exercise of this Warrant with respect to
      which such determination is being made, but shall exclude the number of
      shares of Common Stock which would be issuable upon (A) exercise of the
      remaining, nonexercised portion of this Warrant beneficially owned by
      such Holder or any of its Affiliates and (B) exercise or conversion of
      the unexercised or nonconverted portion of any other securities of the
      Company (including, without limitation, any other Series A Preferred
      Stock or Warrants) subject to a limitation on conversion or exercise
      analogous to the limitation contained herein beneficially owned by such
      Holder or any of its Affiliates. Except as set forth in the preceding
      sentence, for purposes of this Section 2(c)(i), beneficial
      ownership shall be calculated in accordance with Section 13(d) of the
      Exchange Act and the rules and regulations promulgated thereunder, it
      being acknowledged by a Holder that the Company is not representing to
      such Holder that such calculation is in compliance with Section 13(d) of
      the Exchange Act and such Holder is solely responsible for any schedules
      required to be filed in accordance therewith.  To the extent that the
      limitation contained in this Section 2(c)(i) applies, the
      determination of whether this Warrant is exercisable (in relation to
      other securities owned by such Holder together with any Affiliates) and
      of which a portion of this Warrant is exercisable shall be in the sole
      discretion of a Holder, and the submission of a Notice of Exercise shall
      be deemed to be each Holder’s determination of whether this Warrant is
      exercisable (in relation to other securities owned by such Holder
      together with any Affiliates) and of which portion of this Warrant is
      exercisable, in each case subject to such aggregate percentage
      limitation, and the Company shall have no obligation to verify or
      confirm the accuracy of such determination.  In addition, a
      determination as to any group status as contemplated above shall be
      determined in accordance with Section 13(d) of the Exchange Act and the
      rules and regulations promulgated thereunder.  For purposes of this Section
      2(c), in determining the number of outstanding shares of Common
      Stock, a Holder may rely on the number of outstanding shares of Common
      Stock as reflected in (X) the Company’s most recent Form 10-Q or Form
      10-K, as the case may be, (Y) a more recent public announcement by the
      Company or (Z) any other notice by the Company or the Company’s transfer
      agent setting forth the number of shares of Common Stock
      outstanding.  Upon the written or oral request of a Holder, the Company
      shall within two (2) Trading Days confirm orally and in writing to such
      Holder the number of shares of Common Stock then outstanding.  In any
      case, the number of outstanding shares of Common Stock shall be
      determined after giving effect to the conversion or exercise of
      securities of the Company, including this Warrant, by such Holder or its
      Affiliates since the date as of which such number of outstanding shares
      of Common Stock was reported. The “Beneficial Ownership
      Limitation” shall be 4.99% of the number of shares of the Common
      Stock outstanding immediately after giving effect to the issuance of
      shares of Common Stock issuable upon exercise of this Warrant.  The
      Beneficial Ownership Limitation provisions of this Section 2(c)(i)
      may be waived by such Holder, at the election of such Holder, upon not
      less than 61 days’ prior notice to the Company to change the Beneficial
      Ownership Limitation to 9.99% of the number of shares of the Common
      Stock outstanding immediately after giving effect to the issuance of
      shares of Common Stock upon exercise of this Warrant, and the provisions
      of this Section 2(c)(i) shall continue to apply. Upon such a
      change by a Holder of the Beneficial Ownership Limitation from such
      4.99% limitation to such 9.99% limitation, the Beneficial Ownership
      Limitation may not be further waived by such Holder.  The provisions of
      this paragraph shall be construed and implemented in a manner otherwise
      than in strict conformity with the terms of this Section 2(c)(i)
      to correct this paragraph (or any portion hereof) which may be defective
      or inconsistent with the intended Beneficial Ownership Limitation herein
      contained or to make changes or supplements necessary or desirable to
      properly give effect to such limitation. The limitations contained in
      this paragraph shall apply to a successor holder of this Warrant.  Notwithstanding
      anything herein to the contrary, this provision shall not apply to any
      Holder that has elected to waive this provision on its signature page to
      the Securities Purchase Agreement, on or before the date of closing.
    

    
      
        

        

      

      
        
          2
        

        
          

        

      

      
        

        

      

    

    
      d)  Mechanics of Exercise.
    

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

    
      ii.  Delivery of Certificates Upon Exercise.
      Certificates for Warrant Shares purchased hereunder shall be transmitted
      by the transfer agent of the Company to the Holder by crediting the
      account of the Holder’s prime broker with the Depository Trust Company
      through its Deposit/Withdrawal at Custodian (“DWAC”) system
      if the Company is a participant in such system, and otherwise by
      delivery to the address specified by the Holder in the Notice of
      Exercise, within five (5) Trading Days from the delivery to the Company
      of the Notice of Exercise form, surrender of this Warrant (if required)
      and payment of the aggregate Exercise Price as set forth above (“Warrant
      Share Delivery Date”).  This Warrant shall be deemed to have been
      exercised on the date the Exercise Price is received by the
      Company.  The Warrant Shares shall be deemed to have been issued, and
      Holder or any other person so designated to be named therein shall be
      deemed to have become a holder of record of such shares for all
      purposes, as of the date the Warrant has been exercised by payment to
      the Company of the Exercise Price (or by cashless exercise, if
      permitted) and all taxes required to be paid by the Holder, if any,
      pursuant to Section 2(d)(vii) prior to the issuance of such
      shares, have been paid.  
    

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

    
      
        

        

      

      
        
          3
        

        
          

        

      

      
        

        

      

    

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

    
      v.  Obligation Absolute;  Damages.  The
      Company’s obligations to issue and deliver the certificates representing
      the Warrant Shares upon exercise of the Warrant in accordance with the
      terms hereof are absolute and unconditional, irrespective of any action
      or inaction by the Holder to enforce the same, any waiver or consent
      with respect to any provision hereof, the recovery of any judgment
      against any Person or any action to enforce the same, or any setoff,
      counterclaim, recoupment, limitation or termination, or any breach or
      alleged breach by the Holder or any other Person of any obligation to
      the Company or any violation or alleged violation of law by the Holder
      or any other person, and irrespective of any other circumstance which
      might otherwise limit such obligation of the Company to the Holder in
      connection with the issuance of such certificates representing the
      Warrant Shares.  The Company shall issue the certificates representing
      the Warrant Shares or, if applicable, cash, upon a properly noticed
      exercise.  If the Company fails to deliver to the Holder such
      certificate or certificates pursuant to Section 2(d) within five
      (5) Trading Days of the Warrant Share Delivery Date applicable to such
      exercise, the Company shall pay to such Holder, in cash, as liquidated
      damages and not as a penalty, for each $1,000 of VWAP of the Common
      Stock, $10 per Trading Day (increasing to $20 per Trading Day after ten
      (10) Trading Days after the Warrant Share Delivery Date) for each
      Trading Day after the Warrant Share Delivery Date until such
      certificates are delivered.
    

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

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

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

    
      
        

        

      

      
        
          4
        

        
          

        

      

      
        

        

      

    

    
      e)  Cashless Exercise.  At any time after the Initial
      Exercise Date this Warrant may also be exercised at such time by means
      of a “cashless exercise” in which the Holder shall be entitled to
      receive a certificate for the number of Warrant Shares equal to the
      quotient obtained by dividing [(A-B) (X)] by (A), where:
    

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

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

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

    
      Section 3.          Certain
      Adjustments.
    

    
      a)  Stock Dividends and Splits.  If the Company, at any
      time while this Warrant is outstanding: (i) pays a stock dividend or
      otherwise makes a distribution or distributions on shares of its Common
      Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include
      any shares of Common Stock issued by the Company upon exercise of this
      Warrant), provided that this clause (i) shall not apply to shares of
      Common Stock issued solely in connection with dividends required to be
      paid under the terms and conditions of the Series D Convertible
      Preferred Stock, and/ or other securities issued and outstanding on the
      date of this Warrant, provided that such stock dividend or distribution
      shall be issued pursuant to the terms of such other securities as of the
      date of this Warrant, (ii) subdivides outstanding shares of Common Stock
      into a larger number of shares, (iii) combines (including by way of
      reverse stock split) outstanding shares of Common Stock into a smaller
      number of shares, or (iv) issues by reclassification of shares of the
      Common Stock any shares of capital stock of the Company, then in each
      case the Exercise Price shall be multiplied by a fraction of which the
      numerator shall be the number of shares of Common Stock (excluding
      treasury shares, if any) outstanding immediately before such event and
      of which the denominator shall be the number of shares of Common Stock
      outstanding immediately after such event and the number of shares
      issuable upon exercise of this Warrant shall be proportionately
      adjusted.  Any adjustment made pursuant to this Section 3(a)
      shall become effective immediately after the record date for the
      determination of stockholders entitled to receive such dividend or
      distribution and shall become effective immediately after the effective
      date in the case of a subdivision, combination or re-classification.
    

    
      
        

        

      

      
        
          5
        

        
          

        

      

      
        

        

      

    

    
      b)  Subsequent Equity Sales.  If the Company or any
      Subsidiary thereof, as applicable, at any time while this Warrant is
      outstanding, sells, grants or otherwise issues (or announces any sale,
      grant or other issuance related to the foregoing) any Common Stock or
      Common Stock Equivalents entitling any Person to acquire shares of
      Common Stock, at an effective price per share less than the then
      Exercise Price (such lower price, the “Base Share Price”
      and such issuances collectively, a “Dilutive Issuance”) (if
      the holder of the Common Stock or Common Stock Equivalents so issued
      shall at any time, whether by operation of purchase price adjustments,
      reset provisions, floating conversion, exercise or exchange prices or
      otherwise, or due to warrants, options or rights per share which are
      issued in connection with such issuance, be entitled to receive shares
      of Common Stock at an effective price per share which is less than the
      Exercise Price, such issuance shall be deemed to have occurred for less
      than the Exercise Price on such date of the Dilutive Issuance), then the
      Exercise Price shall be reduced and only reduced to equal the Base Share
      Price.  As a point of clarification, the number of Warrant Shares
      issuable hereunder shall not be increased upon an adjustment to
      the Exercise Price under this Section 3(b). Such adjustment to
      the Exercise Price shall be made whenever such Common Stock or Common
      Stock Equivalents are issued. Notwithstanding the foregoing, no
      adjustments shall be made, paid or issued under this Section 3(b)
      in respect of an Exempt Issuance or issuances subject to Section 3(a)
      above.  The Company shall notify the Holder in writing, no later than
      the third (3rd) Trading Day following the issuance of any
      Common Stock or Common Stock Equivalents subject to this section,
      indicating therein the applicable issuance price, or applicable reset
      price, exchange price, conversion price and other pricing terms (such
      notice the “Dilutive Issuance Notice”).  For purposes of
      clarification, whether or not the Company provides a Dilutive Issuance
      Notice pursuant to this Section 3(b), upon the occurrence of any
      Dilutive Issuance, after the date of such Dilutive Issuance, the Holder
      is entitled to receive a number of Warrant Shares based upon the Base
      Share Price regardless of whether the Holder accurately refers to the
      Base Share Price in the Notice of Exercise.
    

    
      c)  Subsequent Rights Offerings.  If the Company, at
      any time while this Warrant is outstanding, shall issue rights, options
      or warrants to all holders of Common Stock (and not to Holders)
      entitling them to subscribe for or purchase shares of Common Stock at a
      price per share less than the VWAP as of the record date mentioned
      below, then the Exercise Price shall be multiplied by a fraction, of
      which the denominator shall be the number of shares of the Common Stock
      outstanding on the date of issuance of such rights or warrants plus the
      number of additional shares of Common Stock offered for subscription or
      purchase, and of which the numerator shall be the number of shares of
      the Common Stock outstanding on the date of issuance of such rights,
      options or warrants plus the number of shares which the aggregate
      offering price of the total number of shares so offered (assuming
      receipt by the Company in full of all consideration payable upon
      exercise of such rights, options or warrants) would purchase at such
      VWAP.  Such adjustment shall be made whenever such rights, options or
      warrants are issued, and shall become effective immediately after the
      record date for the determination of stockholders entitled to receive
      such rights, options or warrants.
    

    
      
        

        

      

      
        
          6
        

        
          

        

      

      
        

        

      

    

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

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

    
      
        

        

      

      
        
          7
        

        
          

        

      

      
        

        

      

    

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

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

    
      h)  Notice to Holders.
    

    
      i.  Adjustment to Exercise Price.  Whenever the
      Exercise Price is adjusted pursuant to any provision of this Section 3,
      the Company shall promptly mail to each Holder a notice setting forth
      the Exercise Price after such adjustment and setting forth a brief
      statement of the facts requiring such adjustment.
    

    
      ii.  Notice to Allow Exercise by Holder.  If (A) the
      Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special
      nonrecurring cash dividend on or a redemption of the Common Stock; (C)
      the Company shall authorize the granting to all holders of the Common
      Stock rights or warrants to subscribe for or purchase any shares of
      capital stock of any class or of any rights; (D) the approval of any
      stockholders of the Company shall be required in connection with any
      reclassification of the Common Stock, any consolidation or merger to
      which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share
      exchange whereby the Common Stock is converted into other securities,
      cash or property; (E) the Company shall authorize the voluntary or
      involuntary dissolution, liquidation or winding up of the affairs of the
      Company; then, in each case, the Company shall cause to be mailed to the
      Holder at its last address as it shall appear upon the Warrant Register
      of the Company, at least ten (10) calendar days prior to the applicable
      record or effective date hereinafter specified, a notice stating (X) the
      date on which a record is to be taken for the purpose of such dividend,
      distribution, redemption, rights or warrants, or if a record is not to
      be taken, the date as of which the holders of the Common Stock of record
      to be entitled to such dividend, distributions, redemption, rights or
      warrants are to be determined or (Y) the date on which such
      reclassification, consolidation, merger, sale, transfer or share
      exchange is expected to become effective or close, and the date as of
      which it is expected that holders of the Common Stock of record shall be
      entitled to exchange their shares of the Common Stock for securities,
      cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided that
      the failure to mail such notice or any defect therein or in the mailing
      thereof shall not affect the validity of the corporate action required
      to be specified in such notice.  The Holder is entitled to exercise this
      Warrant during the ten (10) day period commencing on the date of such
      notice to the effective date of the event triggering such notice.
    

    
      
        

        

      

      
        
          8
        

        
          

        

      

      
        

        

      

    

    
      Section 4.          Transfer
      of Warrant.
    

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

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

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

    
      d)  Transfer Restrictions.  If, at the time of the
      surrender of this Warrant in connection with any transfer of this
      Warrant, the transfer of this Warrant shall not be registered pursuant
      to an effective registration statement under the Securities Act and
      under applicable state securities or blue sky laws, the Company may
      require, as a condition of allowing such transfer (i) that the Holder or
      transferee of this Warrant, as the case may be, furnish to the Company a
      written opinion of counsel (which opinion shall be in form, substance
      and scope customary for opinions of counsel in comparable transactions)
      to the effect that such transfer may be made without registration under
      the Securities Act and under applicable state securities or blue sky
      laws, (ii) that the holder or transferee execute and deliver to the
      Company an investment letter in form and substance acceptable to the
      Company and (iii) that the transferee be an “accredited investor” as
      defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated
      under the Securities Act or a “qualified institutional buyer” as defined
      in Rule 144A(a) under the Securities Act.
    

    
      
        

        

      

      
        
          9
        

        
          

        

      

      
        

        

      

    

    
      Section 5.          Miscellaneous.
    

    
      a)  No Rights as Shareholder Until Exercise.  This
      Warrant does not entitle the Holder to any voting rights or other rights
      as a shareholder of the Company prior to the exercise hereof as set
      forth in Section 2.  
    

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

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

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

    
      
        

        

      

      
        
          10
        

        
          

        

      

      
        

        

      

    

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

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

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

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

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

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

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

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

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

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

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

    

    

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

    
      
        

        

      

      
        
          11
        

        
          

        

      

      
        

        

      

    

    

    

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

    

    

    
      Original Issuance Date:  September __, 2009
    

    

    

    
    	
           
        	
          NET TALK.COM, INC.
        
	

        	
           
        
	

        	
           
        
	

        	
          
            By:
          

        	
          
             
          

          
             
          

        
	

        	
          
            Name: Anastasios Kyriakides
          

        
	

        	
          
            Title: Chief Executive Officer
          

        

    

    

    

    

    

    
      
        

        

      

      
        
          12
        

        
          

        

      

      
        

        

      

    

    

    

    
      NOTICE OF EXERCISE
    

    

    

    
      TO:       [_______________________]
    

    

    

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

    
      (2)  Payment will be made in lawful money of the United States.
    

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

    
                   _______________________________
    

    

    

    
      The Warrant Shares shall be delivered to the following DWAC Account
      Number or by physical delivery of a certificate to:
    

    
                   _______________________________
    

    
                   _______________________________
    

    
                   _______________________________
    

    

    

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

    

    

    
      [SIGNATURE OF HOLDER]
    

    

    

    
      Name of Investing Entity:                                                                                                       
    

    
      Signature of Authorized Signatory of Investing Entity:                                                                          
    

    
      Name of Authorized Signatory:                                                                                                   
    

    
      Title of Authorized Signatory:                                                                                                  
    

    
      Date:                                                                                                                           
    

    

    

    
      
        

        

      

      
        
          13
        

        
          

        

      

      
        

        

      

    

    
      ASSIGNMENT FORM
    

    

    

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

    

    

    
      FOR VALUE RECEIVED, [____] all of or [_______] shares of the foregoing
      Warrant and all rights evidenced thereby are hereby assigned to
    

    

    

    
      _______________________________________________ whose address is
    

    
      _______________________________________________________________.
    

    

    

    
      _______________________________________________________________
    

    

    

    
                                                                            Dated:  ______________,
      _______
    

    

    

    

    

    
                                    Holder’s Signature:
      _____________________________
    

    

    

    
                                    Holder’s
      Address:   _____________________________
    

    

    

    
                                                                  _____________________________
    

    

    

    

    

    
      Signature Guaranteed:  ___________________________________________
    

    

    

    

    

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

    

    

    

    

    

    

    
      

      

      14

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