Document:

EXHIBIT
10.1

    
 

    
       

      S T O C K   P
U R C H A S E   A G R E E M E N T

      

      

      THIS AGREEMENT is entered into
this 23rd day of April, 2009, by and between the Paul and Jane Meyer Family
Foundation, a Texas not for profit corporation, having its principal
address at 4527 Lake Shore Drive, Waco, Texas 76710 (“Seller"), Paul J. Meyer (“Meyer”) and
Reliv International,
Inc., a Delaware corporation, having its principal place of business at
136 Chesterfield Industrial Boulevard, Chesterfield, Missouri (the
"Company”).

      

      WHEREAS, Seller is the owner
of Two Million Sixty-Eight Thousand Nine Hundred Seventy Three (2,068,973)
shares of the common stock of the Company (such shares hereinafter referred to
as the "Shares"); and,

      

      WHEREAS, Seller desires to
sell and Company desires to purchase and redeem all of the Shares on the terms
and conditions provided herein.

      

      NOW, THEREFORE, in
consideration of the premises and of the terms, covenants and conditions
hereinafter contained, the parties hereto agree as follows:

      

      1.           Sale and
Purchase of Shares.  Subject to and on the terms and conditions
hereof, in reliance on the representations and warranties herein and for the
consideration herein, Seller agrees to sell to the Company, and the Company
agrees to purchase and redeem from Seller, all of the Shares at the price and on
the terms provided herein.

      

      2.           Purchase
Price.  The Shares to be purchased hereunder shall be
designated in three groups of Shares:

      

      Group A
shall include 1,000,000 of the Shares the purchase price for which shall be
$2.90 per share.

      

      Group B
shall include 700,000 of the Shares the purchase price for which shall be $3.00
per share.

      

      Group C
shall include 368,973 of the Shares, the purchase price for which shall be $3.00
per share.

      

      3.           Payment.     Subject
to and on the terms and conditions hereof, the Company shall, concurrently with
the deliveries described in Sections 4.1, and 4.2 below, transfer to an account
designated by Seller the sum of Five Million ($5,000,000) in cash in full and
final payment of the purchase price for all of the Group A Shares and all of the
Group B Shares, and, a promissory note (the “Note”), payable to the Seller, in
the original principal amount of One Million One Hundred Six Thousand Nine
Hundred Nineteen Dollars ($1,106,919), payable in a single balloon installment
of principal and interest, maturing 90 days from the date hereof, and bearing
interest before maturity at the rate of 6% per annum for payment of the purchase
price for all
of the Group C Shares.  Such promissory note shall be in the form
attached hereto as Exhibit “A”.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      4.         Closing
and Transfer.  The Closing of the transactions provided for
herein shall be held at the offices of the Company on April 27, 2009 (the
“Closing”), at which time:

      

      4.1           Each
party shall deliver to the other a fully executed copy of this Agreement
concurrently with its execution;

      

      4.2           Concurrently
with the delivery of the cash payment provided within Section 3 above and the
delivery of the originally executed Note, Seller shall deliver all of the Shares
to the Company by transfer of such Shares, through the Depository Trust Company,
from Seller’s brokerage account to the Company’s brokerage account; to effect
such transfer, Seller will deliver instructions to its securities broker holding
the Shares substantially in the form of the instruction letter attached to this
Agreement as Exhibit “B” and shall provide to the Company evidence of the
delivery of such instruction letter to its securities broker at the
Closing.  Providing a copy of a written acknowledgement from Seller’s
broker acknowledging receipt of the instruction letter shall be sufficient for
purposes of providing evidence of delivery of the instruction
letter.

      

      4.3           The
Company shall pay the cash (or cash equivalent) purchase price for the
applicable portions of the Shares as provided in Section 3 hereof and shall
provide evidence to Seller of the wire transfer of funds for such payment
provided for herein.

      

      Effective
at the time of its receipt of the Shares, the Company shall be entitled to
transfer all of such Shares on the books of the Company to the name of the
Company. The
parties need not attend the Closing in person, and the delivery of all documents
and funds as described in Section 4 may be handled by wire transfer and
electronic mail or by facsimile transmission.

      

      5.           Representations
and Warranties of Seller.  Seller represents and warrants to
the Company, as of the Closing as follows:

      

      5.1           Seller
is the sole owner of, and has good and marketable title to, the Shares free and
clear of any and all contracts, options, commitments, agreements, liens, claims
or encumbrances whether or not of record.

      

      5.2           Seller
has all necessary corporate power and authority to enter into this Agreement and
to perform its obligations hereunder, and this Agreement, and the transactions
provided for herein, have been duly and validly authorized by proper action of
the Board of Directors of Seller.  This Agreement has been duly
executed and delivered by Seller and constitutes a valid and binding obligation
of Seller, enforceable against Seller in accordance with its terms.

      

      5.3           The
sale and transfer of the Shares as provided herein will not violate, or
constitute a default under, any agreement, commitment, contract, loan, security
agreement,
pledge or other document or instrument to which Seller is a party or by which
Seller, or any of the Shares, are bound.

       

       

      
        
          
          

        

        
          - 2
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      5.4           (i)
Seller is fully informed concerning the business, condition, financial and
otherwise, assets, operations and prospects of the Company; (ii) Seller, or its
representatives, have read and have knowledge of all reports filed by the
Company with the Securities and Exchange Commission, including
all  Reports on Form 10-K and Form 10-Q, (iii) neither the Company nor
any officer, director, agent or representative of the Company has made any
representation or warranty, or provided any information, to Sellers concerning
or relating to the business, condition, financial or otherwise, assets,
operations or prospects of the Company, except as is set forth in the public
filings of the Company, and (iv) the market value of the Company’s common stock
as traded on the Nasdaq Stock Market, or otherwise, may increase to an amount in
excess of the purchase price for the Shares, and nevertheless, Seller has
determined and desire to sell the Shares on the terms and at the price provided
herein.

      

      The representations and warranties of
Seller herein shall survive the Closing.

      

      6.           Representations
and Warranties of the Company.  The Company
represents and warrants to Seller as of the Closing, as follows:

      

      6.1           The
Company has all necessary corporate power and authority to enter into this
Agreement and the Note and to perform its obligations hereunder and under the
Note, and the transactions provided for herein, have been duly and validly
authorized by proper action of the Board of Directors of this
Company.  This Agreement and the Note have been duly executed and
delivered by the Company and constitute valid and binding obligations of the
Company, enforceable against the Company in accordance with their respective
terms and conditions;

      

      6.2           The
Company has filed all Reports required by it to be filed with the Securities and
Exchange Commission, including all Reports on Form 10-K and Form
10-Q.

      

      6.3           The
Company has filed, or shall timely file, and make any and all reports or
disclosures, required to be made or filed, concerning or related to this
Agreement and the transactions provided for herein.

      

      6.4           The
Company's purchase of the Shares as provided herein will not violate, or
constitute a default under, any agreement, commitment, contract, loan, security
agreement, pledge or other document or instrument to which the Company is a
party or by which the Company is bound.

      

      The
representations and warranties of the Company herein shall survive the
Closing.

      
        
           

        

        
          - 3
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      7.           Covenant
of Seller and Meyer.  Provided that the Company has made the
payments required under Section 3 and timely paid the Note in full in accordance
with its terms, Seller covenants and agrees that Seller or any affiliated person
of Seller, shall not, for a period of one year from the date hereof under engage
in any transaction in or concerning the common stock of the Company other than
the transactions contemplated herein.   Furthermore, provided
that the Company has made the payments required under Section 3 and timely paid
the Note in full in accordance with its terms, Meyer covenants and agrees that
Meyer shall not, for a period of one year from the date hereof under engage in
any transaction in or concerning the common stock of the Company other than the
transactions contemplated herein.

      

      8.           Voting of
Shares.  Seller shall vote all of the Shares in favor of all
directors nominated by management and each proposal recommended by management at
the annual meeting of shareholders of the Company to be held on May 28,
2009.

      

      9.           Specific
Enforcement and Rights upon Default. The
obligations of Seller hereunder are of a special, unique, unusual and
extraordinary character, thereby giving this Agreement peculiar value so that
the loss of the Shares or violation by Seller of this Agreement could not
reasonably or adequately be compensated in damages in an action at
law.  Therefore, in addition to other remedies provided by law, the
Company shall have the right to compel specific performance hereof by Seller or
to obtain injunctive relief against violations hereof by Seller.  In
like manner, Company is uniquely interested in the acquisition of the Shares and
the obligations of Company hereunder are of a special, unique, unusual and
extraordinary character, thereby giving this Agreement peculiar value so that
the loss of the conveyance of the Shares contemplated herein or violation by
Company of this Agreement could not reasonably or adequately be compensated in
damages in an action at law.  Therefore, in addition to other remedies
provided by law, the Seller shall have the right to compel specific performance
hereof by Company or to obtain injunctive relief against violations hereof by
Company.

      

      10.           Further
Assurances.  Seller and the Company shall take such other and
further actions, execute such other and further documents as shall be reasonably
necessary or appropriate to effect and consummate the sale contemplated
herein.

      

      11.           Notices.  All notices or
other communications required or permitted to be given hereunder shall be in
writing and shall be delivered in person, delivered by prepaid courier, mailed
by prepaid certified mail (return receipt requested), or transmitted by
facsimile, to the parties as follows:

      

      If to
Seller, to:

      Terry
Irwin, Vice President

      Paul and
Jane Meyer Family Foundation

      4527 Lake
Shore Drive

      Waco,
Texas 76710

      Facsimile:
(254) 751-7733

       

      If to
Company, to:

      Robert L.
Montgomery

      Chief
Executive Officer

       

      
        
          
          

        

        
          - 4
-

          
            

          

        

        
          
          

        

      

       

      Reliv
International, Inc.

      136
Chesterfield Industrial Boulevard

      Chesterfield,
Missouri 63005

      Facsimile:
(636) 537-9753

      

      Any
notice that is (a) delivered in person or by prepaid courier shall be deemed
given, effective, and received upon delivery to (or refusal by) the addressee,
(b) mailed shall be deemed given, effective, and received upon the earlier of
delivery to (or refusal by) the addressee or the third business day after the
date of mailing, and (c) transmitted by facsimile shall be deemed given,
effective, and received upon receipt by the addressee as confirmed by the
facsimile transmission report.

      

      12.           Entire
Agreement.  This Agreement constitutes the entire agreement of
the parties hereto with respect to the subject matter hereof and supersedes all
prior written or oral warranties, representations, inducements, understandings,
commitments, agreements or contracts.  This Agreement may not be
modified except by a writing signed by all of the parties.

      

      13.           Binding
Effect.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective, heirs, personal
representatives, successors and assigns.

      

      14.           Governing
Law; Jurisdiction.  This
Agreement shall be governed by and construed and enforced in all respects in
accordance with the laws of the State of Missouri.  This Agreement
shall be deemed to have been executed in the State of Missouri and the courts of
the State of Missouri, County of St. Louis, or the courts of the United States
of America for the Eastern District of Missouri, shall have exclusive
jurisdiction of any case, action or proceeding arising under or related to this
Agreement.  Each of the parties hereto consents to the jurisdiction of
such courts with respect to any such case, action or proceeding and further
consents to service of process in any action filed by the other party by
certified mail at the address of the party set forth herein.

      

      IN WITNESS WHEREOF, the
parties hereto have executed this Agreement effective as of the day and year
first above written.

       

       

      RELIV
INTERNATIONAL, INC.

       

       

      By: 
/s/ Robert L. Montgomery 

        
          

        

      

      Robert L.
Montgomery, CEO

       

      ATTEST:

       

      /s/
Stephen M. Merrick 

        
          

        

      

      Secretary

       

      PAUL
AND JANE MEYER FAMILY FOUNDATION

       

       

      By: 
/s/ Terry Irwin 

        
          

        

      

      Terry
Irwin, Vice President

       

       

      /s/ Paul
J. Meyer 

        
          

        

      

      Paul J.
Meyer

       

       

      
        
          
          

        

        
          - 5
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      Exhibit
“A”

    

     

    
       

      PROMISSORY
NOTE

      

      
        	
                $1,106,919.00

              	
                April
      __, 2009

              

      

      

      FOR VALUE RECEIVED, the undersigned
Reliv International, Inc, with its address at 136 Chesterfield Industrial
Boulevard, Chesterfield, Missouri 63005 (herein called “Reliv”), promises to pay
to the order of The Paul and Jane Meyer Family Foundation, a Texas non-profit
corporation, with its address at P.O. Box 7411, Waco, McLennan County, Texas
76714 (herein called “Foundation”), the principal sum of ONE MILLION, ONE
HUNDRED SIX THOUSAND, NINE HUNDRED NINETEEN and No/100 Dollars ($1,106,919.00),
together with interest from the date of hereof, on the balance of the principal
remaining unpaid from time to time at a rate of interest equal to Six Percent
(6%) per annum.  The entire principal balance, and all accrued and
unpaid interest, shall be finally due and payable upon the expiration of ninety
(90) days from the date hereof.  All payments on this Note shall be
made by check of Reliv mailed to Foundation at its address provided herein or by
wire transfer to the account of Foundation.  All payments on account
of the indebtedness evidenced by this Note shall be applied first to the
interest on the unpaid principal balance, and the remainder to
principal.

      

      Reliv may prepay the obligations under
this Note at any time, in whole or in part, without penalty.

      

      Any
amounts of principal or interest not paid when due shall bear interest at the
rate of Twelve Percent (12%) per annum, both before and after
judgment.  Notwithstanding any contrary provision hereof, in no event
will interest exceed the maximum rate (if any) permitted by the applicable
law.  If, for any reason, the holder or holders of this Note ever
receive in connection with the transaction of which this Note is a part an
amount which would result in interest being charged at a rate exceeding the
maximum rate (if any) permitted by applicable law, such amount or portion
thereof as would otherwise be excessive interest shall automatically be applied
toward reduction of the principal balance then outstanding under this Note and
not toward payment of interest.

      

      A default exists under this note if (1)
(a) Reliv  or (b) any other person liable on any part of this note or
who grants a lien or security interest on property as security for any part of
this note (an "Other Obligated Party") fails to timely pay or perform any
obligation or covenant in any written agreement between Foundation and Reliv or
any Other Obligated Party; (2) any warranty, covenant, or representation in this
note or in any other written agreement between Foundation and Reliv or any Other
Obligated Party is materially false when made; (3) a receiver is appointed for
Reliv, any Other Obligated Party, or any property on which a lien or security
interest is created as security (the "Collateral Security") for any part of this
note; (4) any Collateral Security is assigned for the benefit of creditors; (5)
a bankruptcy or insolvency proceeding is commenced by Reliv, a partnership of
which Reliv is a general partner, or an Other Obligated Party; (6) (a) a
bankruptcy or insolvency proceeding is commenced against Reliv, a partnership of
which Reliv is a  general partner, or an Other Obligated Party and (b)
the proceeding continues without dismissal for sixty days, the party against
whom the proceeding is commenced admits the material allegations of the petition
against it, or an order for relief is entered; (7) any of the following parties
is dissolved, begins to wind up its affairs, is authorized to dissolve or wind
up its affairs by its governing body or persons, or any event occurs or
condition exists that permits the dissolution or winding up of the affairs of
any of the following parties: Reliv, a partnership of which Reliv is a general
partner, or an Other Obligated Party; and (8) any Collateral Security is
impaired by loss, theft, damage, levy and execution, issuance of an official
writ or order of seizure, or destruction, unless it is promptly replaced with
collateral security of like kind and quality or restored to its former
condition.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      If Reliv
defaults in the payment of this note or in the performance of any obligation in
any instrument securing or collateral to this note or as provided above,
Foundation may declare the unpaid principal balance, earned interest, and any
other amounts owed on the note immediately due.  Reliv and each
surety, endorser, and guarantor waive all demand for payment, presentation for
payment, notice of intention to accelerate maturity, notice of acceleration of
maturity, protest, and notice of protest, to the extent permitted by
law.

      

      Reliv hereby waives notice of and
consent to any and all extensions of this Note that may be granted by the
Foundation hereof.  Any such extension may be made at any time, and
from time to time, without giving notice to Reliv and without discharging any
liability of Reliv.

      

      No failure on the part of Foundation to
exercise, and no delay in exercising, any right under this Note shall operate as
a waiver of any such right; nor shall any single or partial exercise of any
right preclude any other or future exercise thereof or the exercise of any other
right.  Any waiver on the part of Foundation of any right under this
Note must be in writing and signed by an officer of Foundation.  A
waiver of one event shall not be construed as continuing or as a bar to or
waiver of such right or remedy on a subsequent event.

      

      This note, and/or interests herein, may
be sold, assigned, hypothecated, negotiated or transferred without notice to, or
the consent of Reliv.

      

      This Note is payable within, and is to
be governed by, the laws of the State of Texas.

      

      Reliv irrevocably consents and agrees
that any legal action, suit or proceeding arising out of this Note may be
brought in any state or federal court sitting in McLennan County, Texas, as
Foundation may elect, and, by execution and delivery of this Note, Reliv hereby
irrevocably accepts and submits to the jurisdiction of any such
court.  Reliv irrevocably consents to service of any legal process by
registered or certified mail, postage prepaid, to Reliv at the address set forth
above.

      

      

      RELIV
INTERNATIONAL, INC.

      

      

      By:_______________________________

      Robert L.
Montgomery

      Chief
Executive Officer

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      Exhibit
“B”

    

    
         

      Paul
& Jane Meyer Family Foundation

      4527 Lake
Shore Drive

      Waco,
Texas 76710

      

      

      April 27,
2009

      

      

      Wachovia
Securities

      4800
Lakewood Drive, Suite 1

      Merit
Building East

      Waco,
Texas 76710

      Attention:
Randy Sage

      

      
        	
              	
                Re:

              	
                Transfer
      of Shares of Reliv’ International,
Inc.

              

      

      

      Ladies
and Gentlemen:

      

      The
undersigned is the holder of 2,068,973 shares (the “Shares”) of common stock of
Reliv’ International, Inc., a Delaware corporation (“Reliv”), CUSIP No.
75952 R 100, EIN 37-1172197.

      

      You are
hereby instructed to transfer and deliver the Shares, against payment, via
Depository Trust Company (“DTC”) to Wachovia Securities (“Broker”),] having DTC
Participant No. _____, on April 27, 2009.  The Shares are being
transferred for registration unto Wachovia Seccurities Account
No. ___________ for the benefit of Reliv.  In exchange for the
transfer of the Shares to such Account, the undersigned acknowledges receipt of
payment to the undersigned’s account of the sum of Five Million ($5,000,000.00)
Dollars and of the Promissory Note of Reliv payable to the undersigned in the
principal amount of $1,106,919.00.

       

       

      PAUL
& JANE MEYER FAMILY FOUNDATION

       

       

      By: 
_______________________________

      Terry
Irwin, Vice PresidentExhibit
4.1

     

    THIS
COMMON STOCK PURCHASE WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY
NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT, THE RULES AND REGULATIONS
THEREUNDER OR THE PROVISIONS OF THIS COMMON STOCK PURCHASE WARRANT.

     

    Number of
Shares of Common Stock: _________

    Warrant
No. W09-**

     

    COMMON
STOCK PURCHASE WARRANT

     

    To
Purchase Common Stock of

    ThermoEnergy
Corporation

     

    This
Is
To
Certify
That
_____________________, or registered assigns, is entitled, at any time from the
Closing Date (as hereinafter defined) to the Expiration Date (as hereinafter
defined), to purchase from ThermoEnergy Corporation, a Delaware corporation (the
“Company”),
_________ shares of Common Stock (as hereinafter defined and subject to
adjustment as provided herein), in whole or in part, including fractional parts,
at a purchase price per share of $0.525, subject to adjustment as provided
herein (the “Exercise
Price”), all on the terms and conditions and pursuant to the provisions
hereinafter set forth.

     

    
      	
               
      

            	
              1.

            	
              DEFINITIONS

            

    

     

    As used
in this Common Stock Purchase Warrant (this “Warrant”), the following terms
shall have the respective meanings set forth below:

     

    “Acceleration Notice” shall
have the meaning set forth in Section 2.4.

     

    “Business Day” shall mean any
day that is not a Saturday or Sunday or a day on which banks are required or
permitted to be closed in the City of New York.

     

    “Closing Date” shall mean March
6, 2009.

     

    “Commission” shall mean the
Securities and Exchange Commission or any other federal agency then
administering the Securities Act and other federal securities laws.

     

    “Common Stock” shall mean
(except where the context otherwise indicates) the Common Stock, par value
$0.001 per share, of the Company as constituted on the Closing Date, and any
capital stock into which such Common Stock may thereafter be changed, and shall
also include (i) capital stock of the Company of any other class (regardless of
how denominated) issued to the holders of shares of Common Stock upon any
reclassification thereof which is also not preferred as to dividends or assets
over any other class of stock of the Company and which is not subject to
redemption and (ii) shares of common stock of any successor or acquiring
corporation received by or distributed to the holders of Common Stock of the
Company in the circumstances contemplated by Section 4.4.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Convertible Securities” shall
mean evidences of indebtedness, shares of stock or other securities which are
convertible into or exchangeable, with or without payment of additional
consideration in cash or property, for shares of Common Stock, either
immediately or upon the occurrence of a specified date or a specified
event.

     

    “Early Expiration Date” shall
have the meaning set forth in Section 2.4.

     

    “Event” shall have the meaning
set forth in Section 4.3.

     

    “Event Date” shall have the
meaning set forth in Section 4.3.

     

    “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended, or any successor federal statute,
and the rules and regulations of the Commission thereunder, all as the same
shall be in effect from time to time.

     

    “Exercise Period” shall mean
the period during which this Warrant is exercisable pursuant to Section
2.1.

     

    “Expiration Date” shall mean
March 5, 2014 or such earlier date as may be determined pursuant to Section
2.4.

     

    “Fundamental Corporate Change”
shall have the meaning set forth in Section 4.4.

     

    “Holder” shall mean the Person
in whose name the Warrant or Warrant Stock set forth herein is registered on the
books of the Company maintained for such purpose.

     

    “Market Price” shall mean, on
any date of determination,(i) the closing price of a share of Common Stock on
such day as reported on the principal Trading Market on which the Common Stock
is listed or traded, or (ii) if the Common Stock is not listed on a Trading
Market, the closing bid price for a share of Common Stock on such day in the
over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the
Common Stock is not then listed or quoted on the OTC Bulletin Board, the closing
bid price for a share of Common Stock on such day in the over-the-counter market
as reported by the National Quotation Bureau Incorporated (or any similar
organization or agency succeeding to its functions of reporting
prices).

     

    “Other Property” shall have the
meaning set forth in Section 4.4.

     

    “Person” shall mean any
individual, sole proprietorship, partnership, joint venture, trust, incorporated
organization, association, corporation, institution, public benefit corporation,
entity or government (whether federal, state, county, city, municipal or
otherwise, including, without limitation, any instrumentality, division, agency,
body or department thereof).

     

    “Securities Act” shall mean the
Securities Act of 1933, as amended, or any successor federal statute, and the
rules and regulations of the Commission thereunder, all as the same shall be in
effect at the time.

     

    “Securities Purchase Agreement”
shall mean that certain Securities Purchase Agreement dated as of the Closing
Date between the Company and the several Investors named therein (including the
initial Holder of this Warrant).

     

    “Subsequent Adjustment
Date” shall have the meaning set forth in
Section 4.3.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Trading Day” means (i) a day
on which the Common Stock is traded on a Trading Market, or (ii) if the Common
Stock is not listed on a Trading Market, a day on which the Common Stock is
traded in the over-the-counter market, as reported by the OTC Bulletin Board, or
(iii) if the Common Stock is not then quoted on the OTC Bulletin Board, a day on
which the Common Stock is quoted in the over-the-counter market as reported by
the National Quotation Bureau Incorporated (or any similar organization or
agency succeeding to its functions of reporting prices); provided, that in the
event that the Common Stock is not listed or quoted as set forth in (i), (ii)
and (iii) hereof, then the term “Trading Day” shall mean a Business
Day.

    

    “Trading Market” means
whichever of the New York Stock Exchange, the American Stock Exchange, the
Nasdaq National Market, or the Nasdaq Small Cap Market on which the Common Stock
is listed or quoted for trading on the date in question.

     

    “Transfer” shall mean any
disposition of any Warrant or Warrant Stock or of any interest in either
thereof, which would constitute a sale thereof within the meaning of the
Securities Act.

     

    “Warrant Stock” shall mean the
shares of Common Stock issued or issuable to the Holders of the Warrants upon
the exercise thereof.

     

    “Warrants” shall mean this
Warrant and all other warrants issued pursuant to the Securities Purchase
Agreement and all warrants issued upon transfer, division or combination of, or
in substitution for, any thereof.  All Warrants shall at all times be
identical as to terms and conditions and date, except as to the number of shares
of Common Stock for which they may be exercised.

     

    
      	
               
      

            	
              2.

            	
              EXERCISE
      OF WARRANT

            

    

     

    
      	
               
      

            	
              2.1

            	
              Manner
      of Exercise

            

    

     

    From and
after the Closing Date and until 6:00 p.m., New York time, on the Expiration
Date, the Holder may exercise this Warrant, on any Business Day, for all or any
part of the number of shares of Common Stock purchasable hereunder.

     

    In order
to exercise this Warrant, in whole or in part, the Holder shall surrender this
Warrant to the Company at its principal office at 124 West Capitol Street, Suite
880, Little Rock, Arkansas, or at the office or agency designated by the Company
pursuant to Section 12, together with a written notice of the Holder’s election
to exercise this Warrant, which notice shall specify the number of shares of
Common Stock to be purchased, and shall be accompanied by payment of the
Exercise Price in cash or wire transfer or cashier’s check drawn on a United
States bank.  Such notice shall be substantially in the form of the
subscription form appearing at the end of this Warrant as Exhibit A, duly
executed by the Holder or its agent or attorney.  Upon receipt of the
items referred to above, the Company shall, as promptly as practicable, and in
any event within three Business Days thereafter, execute or cause to be executed
and deliver or cause to be delivered to the Holder a certificate or certificates
representing the aggregate number of full shares of Common Stock issuable upon
such exercise, together with cash in lieu of any fraction of a share, as
hereinafter provided.  The stock certificate or certificates so
delivered shall be, to the extent possible, in such denomination or
denominations as the Holder shall request in the notice and shall be registered
in the name of the Holder or, subject to Section 9, such other name as shall be
designated in the notice.  This Warrant shall be deemed to have been
exercised and such certificate or certificates shall be deemed to have been
issued, and the Holder or any other Person so designated to be named therein
shall be deemed to have become the holder of record of such shares for all
purposes, as of the date the notice, together with the cash or check or wire
transfer of funds and this Warrant, is received by the Company as described
above and all taxes required to be paid by the Holder, if any, pursuant to
Section 2.2 prior to the issuance of such shares have been paid. If this Warrant
shall have been exercised in part, the Company shall, at the time of delivery of
the certificate or certificates representing Warrant Stock, deliver to the
Holder a new Warrant evidencing the rights of the Holder to purchase the
unpurchased shares of Common Stock called for by this Warrant, which new Warrant
shall in all other respects be identical with this Warrant, or, at the request
of the Holder, appropriate notation may be made on this Warrant and the same
returned to the Holder.  Notwithstanding any provision herein to the
contrary, the Company shall not be required to register shares in the name of
any Person who acquired this Warrant (or part hereof) or any Warrant Stock
otherwise than in accordance with this Warrant.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              2.2

            	
              Payment
      of Taxes and Charges

            

    

     

    All
shares of Common Stock issuable upon the exercise of this Warrant pursuant to
the terms hereof shall be validly issued, fully paid and nonassessable, freely
tradable and without any preemptive rights.  The Company shall pay all
expenses in connection with, and all taxes and other governmental charges that
may be imposed with respect to, the issuance or delivery thereof, unless such
tax or charge is a tax on income imposed by law upon the Holder, in which case
such taxes or charges shall be paid by the Holder.

     

    
      	
               
      

            	
              2.3

            	
              Fractional
      Shares

            

    

     

    The
Company shall not be required to issue a fractional share of Common Stock upon
exercise of any Warrant.  As to any fraction of a share which the
Holder would otherwise be entitled to purchase upon such exercise, the Company
shall pay a cash adjustment in respect of such fraction in an amount equal to
the same fraction of the Market Price per share of Common Stock as of the date
of exercise of the Warrant giving rise to such fraction of a share.

     

    
      	
               
      

            	
              2.4

            	
              Early
      Expiration

            

    

     

    If at any
time the Market Price for the Common Stock equals or exceeds 300% of the
Exercise Price for a period of thirty (30) consecutive Trading Days, then the
Company may, by notice to the Holders of the Warrants (the “Acceleration Notice”),
accelerate the Expiration Date of all of the Warrants to such date as shall be
determined by the Company in its sole discretion and set forth in the
Acceleration Notice (the “Early
Expiration Date”), which Early Expiration Date shall be not less than
sixty (60) days, nor more than ninety (90) days, after the date of the
Acceleration Notice.  From and after the date of the Acceleration
Notice, the term “Expiration Date”, wherever used in this Warrant, shall mean
and refer to the Early Expiration Date.

     

    
      	
               
      

            	
              3.

            	
              TRANSFER,
      DIVISION AND COMBINATION

            

    

     

    
      	
               
      

            	
              3.1

            	
              Transfer

            

    

     

    Subject
to compliance with Section 9, transfer of this Warrant and all rights hereunder,
in whole or in part, shall be registered on the books of the Company to be
maintained for such purpose, upon surrender of this Warrant at the principal
office of the Company referred to in Section 2.1 or the office or agency
designated by the Company pursuant to Section 12, together with a written
assignment of this Warrant substantially in the form of Exhibit B 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, subject to Section
9, execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees and in the denomination 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
canceled.  A Warrant, if properly assigned in compliance with Section
9, may be exercised by a new the Holder for the purchase of shares of Common
Stock without having a new warrant issued.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              3.2

            	
              Division
      and Combination

            

    

     

    Subject
to Section 9, this Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office or agency 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 Sections 3.1 and 9, 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.

     

    
      	
               
      

            	
              3.3

            	
              Expenses

            

    

     

    The
Company shall prepare, issue and deliver at its own expense (other than transfer
taxes) the new Warrant or Warrants under this Section 3.

     

    
      	
               
      

            	
              3.4

            	
              Maintenance
      of Books

            

    

     

    The
Company agrees to maintain, at its aforesaid office or agency, books for the
registration and the registration of transfer of the Warrants.

     

    
      	
               
      

            	
              4.

            	
              ADJUSTMENTS

            

    

     

    The
number of shares of Common Stock for which this Warrant is exercisable, or the
price at which such shares may be purchased upon exercise of this Warrant, shall
be subject to adjustment from time to time as set forth in this Section 4. The
Company shall give the Holder notice of any event described below which requires
an adjustment pursuant to this Section 4 at the time of such event.

     

    
      	
               
      

            	
              4.1

            	
              Stock
      Dividends, Subdivisions and
Combinations

            

    

     

    If at any
time the Company shall:

     

    (a)           Declare
or pay to the holders of its Common Stock a dividend payable in, or other
distribution of, shares of Common Stock or in Convertible
Securities;

     

    (b)           subdivide
its outstanding shares of Common Stock into a larger number of shares of Common
Stock; or

     

    (c)           combine
its outstanding shares of Common Stock into a smaller number of shares of Common
Stock;

     

    then (i)
the number of shares of Common Stock for which this Warrant is exercisable
immediately after the occurrence of any such event shall be adjusted to equal
the number of shares of Common Stock which a record holder of the same number of
shares of Common Stock for which this Warrant is exercisable immediately prior
to the occurrence of such event would own or be entitled to receive after the
happening of such event, and (ii) the then-current Exercise Price shall be
adjusted to equal (A) the then-current Exercise Price multiplied by the number
of shares of Common Stock for which this Warrant is exercisable immediately
prior to the adjustment divided by (B) the number of shares for which this
Warrant is exercisable immediately after such adjustment.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              4.2

            	
              Certain
      Other Distributions

            

    

     

    If at any
time the Company shall declare or pay to the holders of its Common Stock any
dividend or other distribution of:

     

    (a)           cash;

     

    (b)           any
evidences of its indebtedness, any shares of its stock or any other securities
or property of any nature whatsoever (other than cash, Convertible Securities or
additional shares of Common Stock); or

     

    (c)           any
warrants or other rights to subscribe for or purchase any evidences of its
indebtedness, any shares of its stock or any other securities or property of any
nature whatsoever (other than cash, Convertible Securities or additional shares
of Common Stock);

     

    then,
upon exercise of this Warrant, the Holder shall be entitled to receive such
dividend or distribution as if the Holder had exercised this Warrant prior to
the date of such dividend or distribution.  A reclassification of the
Common Stock (other than a change in par value, or from par value to no par
value or from no par value to par value) into shares of Common Stock and shares
of any other class of stock shall be deemed a distribution by the Company to the
holders of its Common Stock of such shares of such other class of stock within
the meaning of this Section 4.2 and, if the outstanding shares of Common Stock
shall be changed into a larger or smaller number of shares of Common Stock as a
part of such reclassification, such change shall be deemed a subdivision or
combination, as the case may be, of the outstanding shares of Common Stock
within the meaning of Section 4.1.

     

    
      	
               
      

            	
              4.3

            	
              Other
      Provisions Applicable to Adjustments under this
  Section

            

    

     

    The
following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which this Warrant is exercisable and the
current Exercise Price provided for in this Section 4:

     

    (a)           When Adjustments to be
Made.  The adjustments required by this Section 4 shall be made
whenever and as often as any specified event requiring an adjustment shall
occur.  For the purpose of any adjustment, any specified event shall
be deemed to have occurred at the close of business on the date of its
occurrence.

     

    (b)           Fractional
Interests.   In computing adjustments under this Section
4, fractional interests in Common Stock shall be taken into account to the
nearest 1/10th of a share.

     

    (c)           When Adjustment not
Required.  If the Company shall take a record of the holders of
its Common Stock for the purpose of entitling them to receive a dividend or
distribution or subscription or purchase rights and shall, thereafter and before
the distribution to the holders thereof, legally abandon its plan to pay or
deliver such dividend, distribution, subscription or purchase rights, then
thereafter no adjustment shall be required by reason of the taking of such
record and any such adjustment previously made in respect thereof shall be
rescinded and annulled.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (d)           Challenge to Good Faith
Determination.  Whenever the Board of Directors of the Company
shall be required to make a determination in good faith of the fair value of any
item under this Section 4, such determination may be challenged in good faith by
the Holder, and any dispute shall be resolved by an investment banking firm of
recognized national standing selected by the Company and acceptable to the
Holder.  The fees and expenses of such investment banking firm shall
be paid by the Company.

     

    
      	
               
      

            	
              4.4

            	
              Reorganization,
      Reclassification, Merger, Consolidation or Disposition of
      Assets

            

    

     

    In case
the Company shall reorganize its capital, reclassify its capital stock,
consolidate or merge with or into another Person (where the Company is not the
survivor or where there is a change in or distribution with respect to the
Common Stock of the Company), or sell, convey, transfer or otherwise dispose of
all or substantially all its property, assets or business to another Person, or
effectuate a transaction or series of related transactions in which more than
50% of the voting power of the Company is disposed of (each, a “Fundamental Corporate Change”)
and, pursuant to the terms of such Fundamental Corporate Change, shares of
common stock of the successor or acquiring corporation, or any cash, shares of
stock or other securities or property of any nature whatsoever (including
warrants or other subscription or purchase rights) in addition to or in lieu of
common stock of the successor or acquiring corporation (“Other Property”), are to be
received by or distributed to the holders of Common Stock of the Company, then
the Holder shall have the right thereafter to receive, upon exercise of the
Warrant, such number of shares of common stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and Other
Property as is receivable upon or as a result of such Fundamental
Corporate Change by a the holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such Fundamental
Corporate Change.  In case of any such Fundamental Corporate Change,
the successor or acquiring corporation (if other than the Company) shall
expressly assume the due and punctual observance and performance of each and
every covenant and condition of this Warrant to be performed and observed by the
Company and all the obligations and liabilities hereunder, subject to such
modifications as may be deemed appropriate (as determined by resolution of the
Board of Directors of the Company) in order to provide for adjustments of shares
of Common Stock for which this Warrant is exercisable which shall be as nearly
equivalent as practicable to the adjustments provided for in this Section
4.  For purposes of this Section 4.5, “common stock of the successor or
acquiring corporation” shall include stock of such corporation of any
class which is not preferred as to dividends or assets over any other class of
stock of such corporation and which is not subject to redemption and shall also
include any evidences of indebtedness, shares of stock or other securities which
are convertible into or exchangeable for any such stock, either immediately or
upon the arrival of a specified date or the happening of a specified event and
any warrants or other rights to subscribe for or purchase any such
stock.  The foregoing provisions of this Section 4.4 shall similarly
apply to any successive Fundamental Corporate Change.

     

    
      	
               
      

            	
              4.5

            	
              Other
      Action Affecting Common Stock

            

    

     

    In case
at any time or from time to time the Company shall take any action in respect of
its Common Stock, other than any action described in this Section 4, which would
have a materially adverse effect upon the rights of the Holder, the number of
shares of Common Stock and/or the purchase price thereof shall be adjusted in
such manner as may be equitable in the circumstances, as determined in good
faith by the Board of Directors of the Company.

     

    
      	
               
      

            	
              4.6

            	
              Certain
      Limitations

            

    

     

    Notwithstanding
anything herein to the contrary, the Company agrees not to enter into any
transaction which, by reason of any adjustment hereunder, would cause the
current Exercise Price to be less than the par value per share of Common
Stock.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              5.

            	
              NOTICES
      TO THE HOLDER

            

    

     

    
      	
               
      

            	
              5.1

            	
              Notice
      of Adjustments

            

    

     

    Whenever
the number of shares of Common Stock for which this Warrant is exercisable, or
whenever the price at which a share of such Common Stock may be purchased upon
exercise of the Warrants, shall be adjusted pursuant to Section 4, the Company
shall forthwith prepare a certificate to be executed by the chief financial
officer of the Company setting forth, in reasonable detail, the event requiring
the adjustment and the method by which such adjustment was calculated (including
a description of the basis on which the Board of Directors of the Company
determined the fair value of any evidences of indebtedness, shares of stock,
other securities or property or warrants or other subscription or purchase
rights referred to in Section 4.2), specifying the number of shares of Common
Stock for which this Warrant is exercisable and (if such adjustment was made
pursuant to Section 4.2 or 4.5) describing the number and kind of any other
shares of stock or Other Property for which this Warrant is exercisable, and any
change in the purchase price or prices thereof, after giving effect to such
adjustment or change.  The Company shall promptly cause a signed copy
of such certificate to be delivered to the Holder in accordance with Section
14.2.  The Company shall keep at its office or agency designated
pursuant to Section 12 copies of all such certificates and cause the same to be
available for inspection at said office during normal business hours by the
Holder or any prospective purchaser of a Warrant designated by the
Holder.

     

    
      	
               
      

            	
              5.2

            	
              Notice
      of Corporate Action

            

    

     

    If at any
time:

     

    (a)           the
Company shall take a record of the holders of its Common Stock for the purpose
of entitling them to receive a dividend or other distribution, or any right to
subscribe for or purchase any evidences of its indebtedness, any shares of stock
of any class or any other securities or property, or to receive any other right;
or

     

    (b)           there
shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or
merger of the Company with, or any sale, transfer or other disposition of all or
substantially all the property, assets or business of the Company to, another
corporation; or

     

    (c)           there
shall be a voluntary or involuntary dissolution, liquidation or winding up of
the Company;

     

    then, in
any one or more of such cases, the Company shall give to Holder (i) at least 10
days’ prior written notice of the date on which a record date shall be selected
for such dividend, distribution or right or for determining rights to vote in
respect of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, and (ii) in
the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 10
days’ prior written notice of the date when the same shall take
place.  Such notice in accordance with the foregoing clause also shall
specify (i) the date on which any such record is to be taken for the purpose of
such dividend, distribution or right, the date on which the holders of Common
Stock shall be entitled to any such dividend, distribution or right, and the
amount and character thereof, and (ii) the date on which any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up is to take place and the
time, if any such time is to be fixed, as of which the holders of Common Stock
shall be entitled to exchange their shares of Common Stock for securities or
other property deliverable upon such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up.    Each such written notice shall be sufficiently given
if addressed to the Holder at the last address of the Holder appearing on the
books of the Company and delivered in accordance with Section 14.2.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              6.

            	
              NO
      IMPAIRMENT

            

    

     

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

     

    Upon the
request of the Holder, the Company will at any time during the period this
Warrant is outstanding acknowledge in writing, in form satisfactory to the
Holder, the continuing validity of this Warrant and the obligations of the
Company hereunder.

     

    
      	
               
      

            	
              7.

            	
              RESERVATION
      AND AUTHORIZATION OF COMMON STOCK

            

    

     

    From and
after the Closing Date, the Company shall at all times reserve and keep
available for issuance upon the exercise of Warrants such number of its
authorized but unissued shares of Common Stock as will be sufficient to permit
the exercise in full of all outstanding Warrants.  All shares of
Common Stock which shall be so issuable, when issued upon exercise of any
Warrant and payment therefor in accordance with the terms of such Warrant, shall
be duly and validly issued and fully paid and nonassessable and not subject to
preemptive rights.

     

    Before
taking any action which would cause an adjustment reducing the then-current
Exercise Price below the then par value, if any, of the shares of Common Stock
issuable upon exercise of the Warrants, the Company shall take any corporate
action which may be necessary in order that the Company may validly and legally
issue fully paid and nonassessable shares of such Common Stock at such adjusted
current Exercise Price.

     

    Before
taking any action which would result in an adjustment in the number of shares of
Common Stock for which this Warrant is exercisable or in the then-current
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.

     

    
      	
               
      

            	
              8.

            	
              TAKING
      OF RECORD; STOCK AND WARRANT TRANSFER
BOOKS

            

    

     

    In the
case of all dividends or other distributions by the Company to the holders of
its Common Stock with respect to which any provision of Section 4 refers to the
taking of record of such holders, the Company will in each case take such a
record and will take such record as of the close of business on a Business
Day.  The Company will not at any time, except upon dissolution,
liquidation or winding up of the Company, close its stock transfer books or
Warrant transfer books so as to result in preventing or delaying the exercise or
transfer of any Warrant.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              9.

            	
              RESTRICTIONS
      ON TRANSFERABILITY

            

    

     

    The
Warrants and the Warrant Stock shall not be transferred, hypothecated or
assigned before satisfaction of the conditions specified in Section 5.1 of the
Securities Purchase Agreement, which conditions are intended, in part, to ensure
compliance with the provisions of the Securities Act with respect to the
Transfer of any Warrant or any Warrant Stock.  The Holder, by
acceptance of this Warrant, agrees to be bound by the provisions of this Section
9.

     

    
      	
               
      

            	
              10.

            	
              SUPPLYING
      INFORMATION

            

    

     

    The
Company shall cooperate with the Holder in supplying such information as may be
reasonably necessary for the Holder to complete and file any information
reporting forms presently or hereafter required by the Commission as a condition
to the availability of an exemption from the Securities Act for the sale of any
Warrant or Warrant Stock.

     

    
      	
               
      

            	
              11.

            	
              LOSS
      OR MUTILATION

            

    

     

    Upon
receipt by the Company from the Holder of evidence reasonably satisfactory to it
of the ownership of and the loss, theft, destruction or mutilation of this
Warrant and indemnity reasonably satisfactory to it (it being understood that
the written agreement of the Holder shall be sufficient indemnity), and in case
of mutilation upon surrender and cancellation hereof, the Company will execute
and deliver in lieu hereof a new Warrant of like tenor to the Holder; provided, in the case of
mutilation no indemnity shall be required if this Warrant in identifiable form
is surrendered to the Company for cancellation.

     

    
      	
               
      

            	
              12.

            	
              OFFICE
      OF THE COMPANY

            

    

     

    As long
as any of the Warrants remain outstanding, the Company shall maintain an office
or agency (which may be the principal executive offices of the Company) where
the Warrants may be presented for exercise, registration of transfer, division
or combination as provided in this Warrant.

     

    
      	
               
      

            	
              13.

            	
              LIMITATION
      OF LIABILITY

            

    

     

    No
provision hereof, in the absence of affirmative action by the Holder to purchase
shares of Common Stock, and no enumeration herein of the rights or privileges of
the Holder hereof, shall give rise to any liability of the 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.

     

    
      	
               
      

            	
              14.

            	
              MISCELLANEOUS

            

    

     

    
      	
               
      

            	
              14.1

            	
              Nonwaiver
      and Expenses

            

    

     

    No course
of dealing or any delay or failure to exercise any right hereunder on the part
of the Holder shall operate as a waiver of such right or otherwise prejudice the
Holder’s rights, powers or remedies.  If the Company fails to make,
when due, any payments provided for hereunder, or fails to comply with any other
provision of this Warrant, the Company shall pay to the Holder such amounts as
shall be sufficient to cover any costs and expenses including, without
limitation, reasonable attorneys’ fees, including those of appellate
proceedings, incurred by the Holder in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              14.2

            	
              Notice
      Generally

            

    

    

    Except as
may be otherwise provided herein, any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (a) the date of
transmission, if such notice or communication is delivered via facsimile
(provided the sender receives a machine-generated confirmation of successful
transmission) at the facsimile number specified in this Section 14.2 prior to
6:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after
the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section on a day that is not
a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day,
(c) the Trading Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service, or (d) upon actual receipt by the party to
whom such notice is required to be given. The address for such notices and
communications shall be as follows:

    

    If to the
Company:             ThermoEnergy
Corporation

    Attn.:  Chairman

    124 West Capitol Street, Suite
880

    Little Rock,
AK  72201

    

    Telephone:  (501)
376-6477

    Facsimile:  (501)
376-3643

    

    With a
copy
to:               
   Nixon Peabody, LLP

    Attn.:  William E. Kelly,
Esq.

    100 Summer Street

    Boston,
MA  02110-2131

    

    Telephone:  (617)
345-1195

    Facsimile:  (866)
743-4899

    

    
      	
              If
      to the Holder:

            	
              To
      the address set forth under the Holder’s name on the Holder’s Counterpart
      Signature Page to the Securities Purchase
  Agreement;

            

    

     

    or such
other address as may be designated in writing hereafter, in the same manner, by
such addressee.

     

    
      	
               
      

            	
              14.3

            	
              Indemnification

            

    

     

    The
Company agrees to indemnify and hold harmless the Holder from and against any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, attorneys’ fees, expenses and disbursements of any kind which may
be imposed upon, incurred by or asserted against the Holder in any manner
relating to or arising out of any failure by the Company to perform or observe
in any material respect any of its covenants, agreements, undertakings or
obligations set forth in this Warrant; provided, however, that the Company will
not be liable hereunder to the extent that any liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, claims, costs, attorneys’ fees,
expenses or disbursements are found in a final nonappealable judgment by a court
to have resulted from the Holder’s gross negligence, bad faith or willful
misconduct in its capacity as a stockholder or warrantholder of the
Company.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              14.4

            	
              Remedies

            

    

     

    The
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 Section 9 of 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 Section 9 of this Warrant and
hereby agrees to waive the defense in any action for specific performance that a
remedy at law would be adequate.

     

    
      	
               
      

            	
              14.5

            	
              Successors
      and Assigns

            

    

     

    Subject
to the provisions of Sections 3.1 and 9, this Warrant and the rights evidenced
hereby shall inure to the benefit of and be binding upon the successors of the
Company and the successors and assigns of the Holder.  The provisions
of this Warrant are intended to be for the benefit of all holders from time to
time of this Warrant and, with respect to Section 9 hereof, the holders of
Warrant Stock, and shall be enforceable by any such holder or the holder of
Warrant Stock.

     

    
      	
               
      

            	
              14.6

            	
              Amendment

            

    

     

    This
Warrant and all other Warrants may be modified or amended or the provisions
hereof waived with the written consent of the Company and the
Holder.

     

    
      	
               
      

            	
              14.7

            	
              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 only be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions
of this Warrant.

     

    
      	
               
      

            	
              14.8

            	
              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.

     

    
      	
               
      

            	
              14.9

            	
              Governing
      Law

            

    

     

    This
Warrant shall be governed by the laws of the State of New York, without regard
to the provisions thereof relating to conflicts of law.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    In
Witness
Whereof,
the Company has caused this Warrant to be duly executed and its corporate seal
to be impressed hereon and attested by its Secretary or an Assistant
Secretary.

     

    Dated:  March
6, 2009

     

    
      
        
          
            
              	 
      	
                      ThermoEnergy
      Corporation

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Dennis
      C. Cossey, Chairman and
CEO

                    

            

          

        

      

    

     

    Attest:

    

    
      
        
          
            
              	 	 	 
	
                      Andrew
      T. Melton, Executive Vice President,

                    	 	 
      
	
                          CFO,
      Treasurer and Secretary

                    	 	 
      

            

          

        

      

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    SUBSCRIPTION
FORM

     

    [To be
executed only upon exercise of Warrant]

     

    The
undersigned registered owner of this Warrant irrevocably exercises this Warrant
for the purchase of __________ shares of Common Stock of ThermoEnergy
Corporation and herewith makes payment therefor, all at the price and on the
terms and conditions specified in this Warrant and requests that certificates
for the shares of Common Stock hereby purchased (and any securities or other
property issuable upon such exercise) be issued in the name of and delivered
to

     

    
      

    

     

    whose
address is

     

      
        

      

    

     

    and, if
such shares of Common Stock shall not include all of the shares of Common Stock
issuable as provided in this Warrant, that a new Warrant of like tenor and date
for the balance of the shares of Common Stock issuable hereunder be delivered to
the undersigned.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 	 
	 
      	
                                          (Name
      of Registered Owner)

                                        
	 
      	 
      
	 	 
	 
      	
                                          (Signature
      of Registered Owner)

                                        
	 
      	 
      
	 	 
	 
      	
                                          (Street
      Address)

                                        
	 
      	 
      
	 	 
	 
      	
                                          (City)
                 (State)
                 (Zip
      Code)

                                        
	 	 
	 	Notice:  The
      signature on this subscription must correspond with the name as written
      upon the face of the within Warrant in every particular, without
      alteration or enlargement or any change
  whatsoever. 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
B

     

    ASSIGNMENT
FORM

     

    For
Value
Received
the undersigned registered owner of this Warrant hereby sells, assigns and
transfers unto the Assignee named below all of the rights of the undersigned
under this Warrant, with respect to the number of shares of Common Stock set
forth below:

    

    
      
        
          
            
              
                
                  
                    	
                            Name and Address of
Assignee

                          	 	
                            No.
      of Shares of

                            Common Stock

                          
	 
      	 	 
      

                  

                

              

            

          

        

      

    

     

    and does
hereby irrevocably constitute and appoint

     

      
        

      

    

     

    attorney-in-fact
to register such transfer on the books of ThermoEnergy Corporation maintained
for the purpose, with full power of substitution in the premises.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	Dated: 
      	 	 	 	 
      
	 	 	 	 	 
	 	 	 	 
	 
      	 	 	
                                                  (Print
      Name)

                                                
	 
      	 	 	 
      
	 	 	 	 
	 
      	 	 	
                                                  (Signature)

                                                
	 
      	 	 	 
      
	 	 	 	 
	 
      	 	 	
                                                  (Print
      Name of Witness)

                                                
	 
      	 	 	 
      
	 	 	 	 
	 
      	 	 	
                                                  (Witness’s
      Signature)

                                                
	 	 	 	 
	 	 	 	
                                                  Notice:  The
      signature on this assignment must correspond with the name as written upon
      the face of the within Warrant in every particular, without alteration or
      enlargement or any change
  whatsoever.

                                                

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        B-1

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