Document:

SECURITY
      INTEREST AGREEMENT

     

    SECURITY
      INTEREST AGREEMENT (“Security
      Agreement”),
      dated
      as of November
      12, 2007, by and among EPD Investment Co., LLC, a California limited liability
      company (“Secured
      Party”
      and
      collectively with any assignee or designee, the “Secured
      Parties”)
      and
      Neah Power Systems, Inc., a Nevada corporation
      (the
“Debtor”).

     

    RECITALS

     

    A.  Reference
      is made to (i) the Purchase Agreement dated November 9, 2007 (the “Purchase
      Agreement”)
      to
      which the Debtor and Secured Party
      are
      parties, and (ii) the Transaction Agreements (as defined in the
      Purchase
      Agreement),
      including, without limitation, the Note. Capitalized terms not otherwise defined
      herein shall have the meanings ascribed to them in the relevant Transaction
      Agreements.

     

    B.  Pursuant
      to the Transaction Agreements, the Debtor has certain obligations to each
of
      the
      Secured Parties (all such obligations under all Transaction Agreements, the
      “Obligations”).

     

    C.
       The
      Debtor has determined that it shall benefit from the execution of the
Transaction
      Agreements and the transactions contemplated thereby. In furtherance thereof,
      and not in limitation thereof, the Debtor has deemed that the execution
and
      delivery of this Security Interest Agreement to which it is a party, and the
      Debtor’s
      performance of its obligations under each of them, to be necessary and
      convenient to the
      conduct, promotion or attainment of the business of the Debtor from the
Purchase Agreement
      or otherwise.

     

    D. In
      order
      to induce the Secured Parties to execute and deliver the Transaction
Agreements
      and to make the payments to the Debtor contemplated thereby, and as contemplated
      by
      the
      Purchase Agreement and the Note, the Debtor has agreed to grant to the Secured
      Parties a security interest in the Collateral (as defined below) to secure
      the
      due and punctual fulfillment
      of the Obligations. The Secured Parties are willing to enter into the
Purchase
      Agreement and the other Transaction Agreements only upon receiving the Debtor’s
execution
      of this Security Interest Agreement.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the premises, the mutual covenants and conditions
      contained herein, and for other good and valuable consideration, the receipt
      and
sufficiency
      of which are hereby acknowledged, the parties hereto hereby agree as
      follows:

     

    1. Grant
      of Security Interest.

     

    (a)  In
      order
      to secure the due and punctual fulfillment of the Obligations, the Debtor
hereby
      grants, conveys, transfers and assigns to the Secured Parties (and to each
      of
      them based on their
      respective Allocable Shares, as defined below) a continuing security interest
      in
      the Collateral.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)  For
      purposes of this Agreement, the following terms shall have the meanings
      indicated:

     

    “COLLATERAL”
      is all right, title and interest of Debtor in and to all of the following,
      whether
      now owned or hereafter arising or acquired and wherever located: All assets
      of
the
      Debtor, including, but not limited to: all personal and fixture property of
      every kind and
      nature, including without limitation all goods (including inventory, equipment
      and any accessions
      thereto), instruments (including promissory notes), documents, accounts
(including
      accounts receivable), chattel paper (whether tangible or electronic), deposit
      accounts, letter-of-credit rights (whether or not the letter of credit is
      evidenced by a writing),
      commercial tort claims, Securities and all other investment property, supporting
      obligations,
      any other contract rights or rights to the payment of money, insurance claims
      and
      proceeds, and all general intangibles (including all payment intangibles);
      all
Equipment;
      all Intellectual Property; and any and all claims, rights and interests in
      any
      of the
      above, and all guaranties and security for any of the above, and all
      substitutions and replacements
      for, additions, accessions, attachments, accessories, and improvements to,
      and
      proceeds (including proceeds of any insurance policies, proceeds of proceeds
      and
claims
      against third parties) of, any and all of the above, and all Debtor’s books
      relating to any
      and
      all of the above and includes, without limiting the generality of the above,
      the
Intellectual
      Property listed in the attached Exhibit
      B.

     

    “CODE”
is
      the Uniform Commercial Code, in effect in the State of Nevada as in effect
      from
      time
      to time.

     

    “COPYRIGHTS”
      are all copyrights, copyright rights, applications or registrations and like
      protections
      in each work or authorship or derivative work, whether published or not
(whether
      or not it is a trade secret) now or later existing, created, acquired or
      held.

     

    “EQUIPMENT”
      has the meaning set forth in the Code and includes all present and future
      machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools,
      parts and attachments
      in which Debtor has any interest.

     

    “INTELLECTUAL
      PROPERTY” is all present and future (a) Copyrights, (b) trade secret
rights,
      including all rights to unpatented inventions and know-how, and confidential
      information; (c) mask work or similar rights available for the protection of
      semiconductor chips;
      (d) Patents; (e) Trademarks; (f) computer software and computer software
      products; (g)
      designs and design rights; (h) technology; (i) all claims for damages by way
      of
      past, present
      and future infringement of any of the rights included above; (j) all licenses
      or
      other rights
      to
      use any property or rights of a type described above; a schedule of Intellectual
      Property
      and a schedule of Intellectual Property applications is provided in Exhibit
      B,
      but
such
      listing shall not limit the Secured Party’s interest in any other Intellectual
      Property or Intellectual
      Property applications.

     

    
      
         

      

      
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    “PATENTS”
      are patents, patent applications and like protections, including improvements,
      divisions, continuations, renewals, reissues, extensions and
      continuations-in-part
      of the same.

     

    “SECURITIES”
      has the meaning ascribed to it in the Securities Act of 1933, as amended,
and
      includes, but is not necessarily limited to, common stock, preferred stock,
      warrants, rights and other options, promissory notes or other instruments
      reflecting obligations of other
      entities; in furtherance of the foregoing, but not in limitation thereof, the
      term “Securities”
      specifically includes the securities listed in the attached Exhibit
      A.

     

    “TRADEMARKS”
      are trademarks, servicemarks, trade styles, and trade names, whether
or
      not
      any of the foregoing are registered, and all applications to register and
      registrations of
      the
      same and like protections, and the entire goodwill of the business of Debtor
      connected
      with and symbolized by any such trademarks.

     

    (c)
      The
      security interests granted pursuant to this Section (the “Security Interests”)
      are granted
      as security only and shall not subject any of the Secured Parties to, or
      transfer or in any way
      affect or modify, any obligation or liability of the Debtor under any of the
      Collateral or any transaction
      which gave rise thereto.

     

    (d)
      The
      term “Allocable Share” means, with respect to each Secured Party (if there is
more
      than
      one Secured Party), as of the relevant date, the fraction equal to (i) the
      outstanding principal of the Notes then held by such Secured Party, divided
      by
      (ii) the aggregate outstanding principal of the Notes then held by all Secured
      Parties. If there is only one Secured Party, the “Allocable Share” shall mean
      one hundred percent (100%).

     

    Section
      2.
      Filing; Further Assurances.

     

    (a)  The
      Debtor will, at its expense, cause to be searched the public records with
respect
      to the Collateral and will execute, deliver, file and record (in such manner
      and
      form as each
      of
      the Secured Parties may require), or permit each of the Secured Parties to
      file
      and record. as its attorney in fact, any financing statement, any carbon,
      photographic or other reproduction of a
      financing statement or this Security Agreement (which shall be sufficient as
      a
      financing statement
      hereunder), any specific assignments or other paper that may be reasonably
      necessary or
      desirable, or that the Secured Parties may request, in order to create,
      preserve, perfect or validate
      any Security Interest or to enable each of the Secured Parties to exercise
      and
      enforce its rights hereunder with respect to any of the Collateral. The Debtor
      hereby appoints each Secured Party as Debtor’s attorney-in-fact to execute in
      the name and behalf of Debtor such additional financing statements as such
      Secured Party may request.

     

    
      
         

      

      
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    (b)  Each
      Secured Party has designated an Agent as provided in the Section titled
“Agent”
      below. Among other things, such Agent shall be agent of each such Secured Party
      for execution of and identification on any financing statement or similar
      instrument referring to or describing the Collateral.

     

    (c)
      The
      Agent is authorized to execute and file any and all financing statements
desired
      to be filed by the relevant Secured Party to reflect the security interest
      in
      the Collateral in any
      and
      all jurisdictions (including the U.S. Patent and Trademark Office). For such
      purposes, the
      Debtor irrevocably appoints the Agent,
      with
      full power of substitution to execute and file such financing statements
      naming the Debtor as debtor thereon.

     

    Section
      3. Representations and Warranties of Debtor. The
      Debtor hereby represents and
      warrants to each Secured Party (a) that the Debtor is, or to the extent that
      certain of the Collateral is to be acquired after the date hereof, will be,
      the
      owner of the Collateral free from any adverse lien, security interest or
      encumbrance; (b) that
      no
      financing statement covering the Collateral is on file in any public office,
      other
      than the financing statements filed pursuant to this Security Agreement; and
      (c)
that
      the
      statements made
      in
      the Recitals of this Security Interest Agreement, which are deemed incorporated
      herein by
      reference, are true, accurate and complete.

     

    Section
      4. Covenants of Debtor. The
      Debtor hereby covenants and agrees with each Secured
      Party that the Debtor (a) will, at the Debtor’s sole cost and expense, defend
      the Collateral against
      all claims and demands of all persons at any time claiming any interest therein
      junior to the
      Secured Party’s interest; (b) will provide the Secured Party with prompt written
      notice of (i) any
      change in the chief executive officer of the Debtor or the office where the
      Debtor maintains its
      books
      and records pertaining to the Collateral; (ii) the movement or location of
      all
      or a material
      part of the Collateral to or at any address other than the address of Debtor
      set
      forth in its public filings with the U.S. Securities and Exchange
      Commission;
      and
      (iii) any facts which constitute a Debtor
      Event of Default (as such term is defined below), or which, with the giving
      of
      notice and/or
      the passage of time, could or would constitute a Debtor Event of Default,
      pursuant to the Section
      titled “Debtor Events of Default” below; (c) will promptly pay any and all
      taxes, assessments
      and governmental charges upon the Collateral prior to the date penalties are
      attached thereto,
      except to the extent that such taxes, assessments and charges shall be contested
      in good faith
      by
      the Debtor; (d) will immediately notify the Secured Party of any event causing
      a
substantial
      loss or diminution in the value of all or any material part of the Collateral
      and the amount
      or
      an estimate of the amount of such loss or diminution; (e) will have and maintain
      adequate
      insurance at all times with respect to the Collateral, for such other risks
      as
      are customary in
      the
      Debtor’s industry for the respective items included in the Collateral, such
      insurance to be payable to the Secured Party and the Debtor as their respective
      interests may appear, and shall provide
      for a minimum of ten (10) days prior written notice of cancellation to the
      Secured Party, and
      Debtor shall furnish the Secured Party with certificates or other evidence
      satisfactory to the Secured Party of compliance with the foregoing insurance
      provisions; (f) will not sell or offer to sell or otherwise assign, transfer
      or
      dispose of the Collateral or any interest therein, without the prior
      written consent of the Secured Party, except in the ordinary course of business;
      (g) will keep

     

    the
      Collateral free from any adverse lien, security interest or
      encumbrance
      and in
      good order and repair, reasonable wear and tear excepted, and will not waste
      or
      destroy the Collateral or any part thereof; and (h) will not use the Collateral
      in material violation of any statute or ordinance the violation of which
could
      materially and adversely affect the Debtor’s business.

     

    
      
         

      

      
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    Section
      5. Records Relating To Collateral. The
      Debtor will keep its records concerning
      the Collateral at its offices designated in the caption of this Security
      Interest Agreement
      or at such other place or places of business of which the Secured Party shall
      have been notified
      in writing no less than ten (10) days prior thereto. The Debtor will hold and
      preserve such records
      and chattel paper and will permit representatives of the Secured Party at any
      time during normal
      business hours upon reasonable notice to examine and inspect the Collateral
      and
      to make abstracts
      from such records and chattel paper, and will furnish to the Secured Party
      such
information
      and reports regarding the Collateral as the Secured Party may from time to
      time
reasonably
      request.

     

    Section
      6.
      General Authority. From
      and
      during the term of any Debtor Event of Default,
      the Debtor hereby appoints the Secured Party the Debtor’s lawful attorney, with
      full power
      of
      substitution, in the name of the Debtor, for the sole use and benefit of the
      Secured Party, but
      at
      the Debtor’s expense, to exercise, all or any of the following powers with
      respect to all or any
      of
      the Collateral:

     

    (a)  to
      demand, sue for, collect, receive and give acquittance for any and all monies
      due or
      to
      become due;

     

    (b)  to
      receive, take, endorse, assign and deliver all checks, notes, drafts, documents
      and
      other
      negotiable and non- negotiable instruments and chattel paper taken or received
      by the Secured
      Party;

     

    (c)  to
      settle, compromise, prosecute or defend any action or proceeding with respect
      thereto;

     

    (d)  to
      sell,
      transfer, assign or otherwise deal in or with the same or the proceeds
thereof
      or the related goods securing the Collateral, as fully and effectually as if
      the
      Secured Party were
      the
      sole and absolute owner thereof;

     

    (e) to
      extend
      the time of payment of any or all thereof and to make any allowance and
other
      adjustments with reference thereto; and

     

    to
      discharge any taxes, liens, security interests or other encumbrances at any
      time
placed
      thereon;

     

    provided
      that the Secured Party or the Agent shall give the Debtor not less than ten
      (10)
      business days
      prior written notice of the time and place of any sale or other intended
      disposition of any of the
      Collateral.

     

    
      
         

      

      
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    The
      exercise by the Secured Party or the Agent of or failure to so exercise any
      authority granted
      herein shall in no manner affect Debtor’s liability to the Secured Party, and
      provided, further,
      that the Secured Party and the Agent shall be under no obligation or duty to
      exercise any of
      the
      powers hereby conferred upon them and they shall be without liability for any
      act or failure to
      act in
      connection with the collection of, or the preservation of, any rights under
      any
      of the Collateral
      and Secured Party shall not be required to proceed against any other person
      or
      entity who
      or
      which has guaranteed the performance of the Obligations or provided any security
      therefor before
      proceeding against Debtor or the Collateral.

     

    Section
      7.
      Debtor Events of Default.

     

    (a) The
      Debtor shall be in default under this Security Agreement upon the occurrence
      of
      any of
      the following (each, a “Debtor
      Event of Default”):

     

    	 	(i)  
            an Event of Default (as defined in the Note);

    	 	(ii) any
            representation or warranty made by the Debtor in this Security
            Interest Agreement shall be false or misleading in any material respect;
            or

    	 	(iii)
            Debtor
            shall breach any covenant of Debtor in this Security Interest Agreement
            or
            in any other document or instrument executed by Debtor in favor of or
            for
            the benefit of the Secured Parties as contemplated by any of the
            Transaction Agreements.

    	 	
          

    (b)  The
      Debtor hereby irrevocably agrees that, upon the occurrence of a Debtor Event
      of
      Default, the Debtor shall be deemed to have consented to an immediate conveyance
      and transfer
      to the Secured Party of the copyrights and all other rights the Debtor may
      have
      in the software
      included in the Collateral.
      In
      furtherance of the foregoing, and not in limitation thereof,
      the Debtor will, upon the occurrence of a Debtor Event of Default, deliver
      to
      the Secured Party
      copies of the source code of the relevant software, with accompanying written
      assignment of
      the
      software to the Secured Party. Without limiting the foregoing, such source
      code
      and assignment shall be in form sufficient to enable the Secured Party to
      register the software in Secured Party’s name with the Copyright Register. The
      Debtor hereby agrees to take all steps necessary
      or appropriate, as requested by the Secured Party, to effectuate and reflect
      such conveyance
      and transfer or assignment to Secured Party. In all events, such conveyance,
      transfer or
      assignment shall be deemed to vest title in such software in the Secured
      Party.

     

    
      
         

      

      
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    (c)  In
      furtherance of the foregoing and not in limitation thereof, the Debtor
      acknowledges and agrees that the Secured Party may, upon the occurrence of
      a
      Debtor Event of Default,
      seek the immediate entry of a preliminary injunction prohibiting the Debtor’s
      use of such software
      in any shape, way or manner, including, but not necessarily limited to, through
      the sale of
      products that use any of such software, and the Debtor hereby irrevocably agrees
      that it will not contest
      an application seeking entry of a preliminary injunction and that it will accept
      the entry of such
      injunction.

     

    Section
      8. Remedies Upon Debtor Event of Default.
      If any
      Debtor Event of Default shall
      have occurred, then in addition to the provisions of Section 7 hereof, the
      Secured Party may exercise
      all the rights and remedies of a secured party under the Code. The Secured
      Party
      may require
      the Debtor to assemble all or any part of the Collateral and make it available
      to the Secured
      Party at a place to be designated by the Secured Party which is reasonably
      convenient. The
      Secured Party shall give the Debtor ten (10) business days prior written notice
      of the Secured Party’s intention to make any public or private sale or sale at a
      broker’s board or on a securities exchange
      of the Collateral. At any such sale the Collateral may be sold in one lot as
      an
      entirety or in
      separate parcels, as the Secured Party, in its sole discretion, may determine.
      The Secured Party shall
      not
      be obligated to make any such sale pursuant to any such notice. The Secured
      Party may, without
      notice or publication, adjourn any public or private sale or cause the same
      to
      be adjourned from
      time
      to time by announcement at the time and place fixed for the sale, and such
      sale
      may be made
      at
      any time or place to which the same may be adjourned. The Secured Party, instead
      of exercising
      the power of sale herein conferred upon it, may proceed by a suit or suits
      at
      law or in equity
      to
      foreclose the Security Interests and sell the Collateral, or any portion
      thereof, under a judgment
      or decree of a court or courts of competent jurisdiction.

     

    Section
      9. Application of Collateral and Proceeds. The
      proceeds of any sale of, or other
      realization upon, all or any part of the Collateral shall be applied in the
      following order of priorities:
      (a) first, to pay the reasonable expenses of such sale or other realization,
      including, without
      limitation, reasonable attorneys’ fees, and all expenses, liabilities and
      advances reasonably
      incurred or made by the Secured Party in connection therewith, and any other
      unreimbursed expenses for which the Secured Party is to be reimbursed pursuant
      to the Section titled “Expenses; Secured Party’s Lien” below; (b) second, to the
      payment of the Obligations in such
      order of priority as the Secured Party, in its sole discretion, shall determine;
      and (c) finally, to
      pay to
      the Debtor, or its successors or assigns, or as a court of competent
      jurisdiction may direct,
      any surplus then remaining from such proceeds.

     

    Section
      10. Expenses; Secured Party’s Lien. If
      any
      Debtor Event of Default shall have occurred,
      the Debtor will forthwith upon demand pay to the Secured Party: (a) the amount
      which the
      Secured Party may have been required to pay to free any of the Collateral from
      any lien thereon;
      and (b) the amount of any and all reasonable out-of-pocket expenses, including,
      without limitation,
      the reasonable fees and disbursements of its counsel, and of any agents not
      regularly in its employ, which the Secured Party may incur in connection with
      the collection, sale or other disposition
      of any of the Collateral.

     

    
      
         

      

      
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    Section
      11. Termination of Security Interests; Release of Collateral. Upon
      the
      earlier to occur of (a) payment or other
      satisfaction in full of the Note held by the Secured Party or (b) 45 days after
      the Registration Date (as defined in the Purchase Agreement), the Security
      Interests shall terminate
      and all rights to the Collateral shall revert to the Debtor. Upon any such
      termination of the
      Security Interests or release of Collateral, the Secured Party will, at the
      Debtor’s expense, to the
      extent permitted by law, execute and deliver to the Debtor such documents as
      the
      Debtor shall reasonably
      request to evidence the termination of the Security Interests or the release
      of
      such Collateral,
      as the case may be.

     

    Section
      12. Notices. All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
specified
      herein, shall be (a) personally served, (b) deposited in the mail, registered
      or
      certified, return
      receipt requested, postage prepaid, (c) delivered by reputable air courier
      service with charges
      prepaid, or (d) transmitted by hand delivery, telegram, or facsimile, addressed
      as set forth below
      or
      to such other address as such party shall have specified most recently by
      written notice given in accordance herewith. Any notice or other communication
      required or permitted to be given hereunder shall be deemed effective (i) upon
      hand delivery or delivery by facsimile, with accurate
      confirmation generated by the transmitting facsimile machine, at the address
      or
      number designated
      below (if delivered on a business day during normal business hours where such
      notice is to be received), or the first business day following such delivery
      (if
      delivered other than on a business
      day during normal business hours where such notice is to be received) or (ii)
      on
      the second
      business day following the date of mailing by express courier service or on
      the
      fifth business
      day after deposited in the mail, in each case, fully prepaid, addressed to
      such
      address, or upon
      actual receipt of such mailing, whichever shall first occur. The addresses
      for
      such communications
      shall be for (i) the Debtor as provided in the Purchase Agreement,
      (ii)
      for each Secured Party as provided in the Purchase Agreement for notices to
      the
      Purchaser and (iii) for the Agent as provided in the Purchase
      Agreement
      for notices to the Purchaser.
      Any party hereto may from time to time change its address or facsimile number
      for
      notices under this Section in the manner contemplated by the Purchase
      Agreement.

     

    Section
      13.Agent.
      

     

    (a)  Anything
      in the other provisions of this Security Interest Agreement to the contrary
      notwithstanding, the Secured Party may designate another entity to act as agent
      (the “Agent”)
      for
      the Secured Party with respect to any one or more of the rights of Secured
      Party
      hereunder, including, but not necessarily limited to, the right to hold the
      security interest and/or be
      named
      as secured party (as agent for the Secured Party) in any filed financing
      statement and to take
      action in the name and stead of the Secured Party hereunder. Such designation
      may be made with
      or
      without power of substitution, Such designation shall remain in effect until
      canceled by the Secured Party, as provided herein; provided, however, that
      such
      cancellation shall not affect the
      validity of any action theretofore taken by such agent pursuant to this Security
      Interest Agreement. The Debtor acknowledges and agrees to honor such designation
      and acknowledges that
      the
      Agent is acting as the agent of the Secured Party and not as a
      principal.

     

    
      
         

      

      
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    (b)  Each
      Secured Party hereby confirms that the Secured Party has designated EPD
      Investment Co. LLC as its initial Agent, with full right of
      substitution.

     

    (c)  if
      there
      is more than one Secured Party, the Agent shall act as agent for all Secured
      Parties.
      Any revocation of the authority of the Agent or the designation of an alternate
      Agent shall
      be
      done only by Secured Parties who represent a Majority in Interest of all the
      Note Holders (as defined below) at that time; provided that at all times all
      Secured Parties shall be represented by
      one
      and the same Agent. The term “Note Holder” means the Holder, as of the relevant
      date, of the
      Note.
      The term “Majority in Interest” means, as of the relevant date, with respect to
      the relevant
      classification of Note Holders, one or more Note Holders whose respective
      outstanding principal
      amounts of the Notes held by each of them, as of such date, aggregate more
      than
      fifty percent
      (50%) of the Allocable Shares on that date.

    

    Section
      14.Miscellaneous.

     

    (a)  No
      failure on the part of the Secured Party to exercise, and no delay in
      exercising, and
      no
      course of dealing with respect to, any right, power or remedy under this
      Security Interest Agreement
      shall operate as a waiver thereof; nor shall any single or partial exercise
      by
      the Secured
      Party of any right, power or remedy under this Security Interest Agreement
      preclude the exercise,
      in whole or in part, of any other right, power or remedy. The remedies in this
      Security Interest Agreement are cumulative and are not exclusive of any other
      remedies provided by law. Neither this Security Interest Agreement nor any
      provision hereof may be changed, waived, discharged or terminated orally but
      only by a statement in writing signed by the party against which
      enforcement of the change, waiver, discharge or termination is
      sought.

     

    (b)  The
      execution and delivery by Debtor of this Security Interest Agreement and all
      documents
      delivered in connection herewith have been duly and validly authorized by all
      necessary
      corporate action of Debtor and this Agreement and all documents delivered in
      connection
      herewith have been duly and validly executed and delivered by Debtor. The
      execution and
      delivery by Debtor of this Security Interest Agreement and all documents
      delivered in connection
      herewith will not result in a breach or default of or under the Certificate
      of
Incorporation,
      By-laws or any agreement, contract or indenture of Debtor. This Security
      Interest Agreement
      and all documents delivered in connection therewith are legal, valid and binding
      obligations
      of Debtor enforceable against Debtor in accordance with their
      terms.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (c)
      In
      the event that any action is taken by Debtor or Secured Party in connection
      with
the
      this
      Security Interest Agreement, or any related document or matter, the losing
      party
      in such legal
      action, in addition to such other damages as he or it may be required to pay,
      shall pay reasonable
      attorneys’ fees to the prevailing party.

     

    Section
      15. Separability. If
      any
      provision hereof shall prove invalid or unenforceable in any
      jurisdiction whose laws shall be deemed applicable, the other provisions hereof
      shall remain in
      full
      force and effect in such jurisdiction and shall be liberally construed in favor
      of the Secured Party.

     

    Section
      16.Governing
      Law.

     

    (a)
      This
      Security Interest Agreement shall be governed by and construed in accordance
      with the laws of the State of Nevada for contracts to be wholly performed in
      such state
      and
      without giving effect to the principles thereof regarding the conflict of laws.
      To
      the
      extent determined by the court, the
      Debtor shall reimburse the Secured Party for any reasonable legal fees and
      disbursements incurred
      by the Secured Party in enforcement of or protection of any of its rights under
      this Security
      Interest Agreement. Nothing in this Section shall affect or limit any right
      to
      serve process
      in any other manner permitted by law.

     

    (b)
      The
      Debtor and the Secured Party acknowledge and agree that irreparable damage
      would
      occur in the event that any of the provisions of this Security Interest
      Agreement were not performed
      in accordance with their specific terms or were otherwise breached. It is
      accordingly agreed
      that the parties shall be entitled to an injunction or injunctions to prevent
      or
      cure breaches of
      the
      provisions of this Security Interest Agreement and to enforce specifically
      the
      terms and provisions
      hereof, this being in addition to any other remedy to which any of them may
      be
entitled
      by law or equity.

     

    Section
      17. Jury Trial Waiver. The
      Debtor and the Secured Party hereby waive a trial by
      jury
      in any action, proceeding or counterclaim brought by either of the parties
      hereto against the
      other
      in respect of any matter arising out of or in connection with the Note or this
      Security Interest
      Agreement.

     

    Section
      18. Assignment. Only
      in
      connection with the transfer of all of the rights under the
      Transaction Agreements in accordance with their terms, a Secured Party may
      assign or transfer
      the whole of its security interest granted hereunder. Any transferee of the
      Collateral shall be
      vested
      with all of the rights and powers of the assigning Secured Party hereunder
      with
      respect to
      the
      Collateral.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    Section
      19. Waiver. The
      Debtor waives any right that it may have to require Secured Party
      to
      proceed against any other person, or proceed against or exhaust any other
      security, or pursue
      any other remedy Secured Party may have.

     

    IN
      WITNESS WHEREOF, the Parties have executed this Security Interest Agreement
      as
of
      the
      day, month and year first above written.

     

    SECURED
      PARTY:

     

    EPD
      INVESTMENT CO. LLC

    

    

    By:
      _________________________________

    Name:
      

    Title:
      

    

    

    COMPANY:
      

    

    NEAH
      POWER SYSTEMS, INC.

    

    

    By:
      _________________________________

    Name:
      

    Title:
      

    
      
        
           

        

         

      

      
        11

        
          

        

      

      
         

        
          

        

      

    

    EXHIBIT
      A

    

    SECURITIES

    

    All
      capital stock of Neah Power Systems, Inc., a Washington
      corporation.

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    EXHIBIT
      B

    

    INTELLECTUAL
      PROPERTY

    

    U.S.
      Patents:

    

    	1.  	
            U.S.
              Patent No. 6,641,948
              entitled “Fuel Cells Having Silicon Substrates And/Or Sol-Gel Derived
              Support Structures” issued November 4, 2003. (401) Expires: April 5,
              2020.

          

    	2.  	
            U.S.
              Patent No. 6,720,105
              entitled “Metallic Blocking Layers Integrally Associated With Fuel Cell
              Electrode Structures And Fuel Cell Electrode Stack Assemblies” issued
              April 13, 2004. (401C2) Expires: April 5,
              2020.

          

    	3.  	
            U.S.
              Patent No. 6,808,840
              entitled “Silicon-Based Fuel Cell Electrode Structures And Fuel Cell
              Electrode Stack Assemblies” issued October 26, 2004. (401C3) Expires:
              April 5, 2020.

          

    	4.  	
            U.S.
              Patent No. 6,811,916
              entitled “Fuel Cell Electrode Pair Assemblies And Related Methods” issued
              November 2, 2004. (402) Expires: December 12,
              2021.

          

    	5.  	
            U.S.
              Patent No. 6,852,443
              entitled “Fuel Cells Having Silicon Substrates And/Or Sol-Gel Derived
              Support Structures” issued February 8, 2005. (401D1) Expires: April 5,
              2020

          

    	6.  	
            U.S.
              Patent No. 6,924,058
              entitled “Hydrodynamic Transport and Flow Channel Passageways Associated
              with Fuel Cell Electrode Structures and Fuel Cell Electrode Assemblies”
              issued Aug. 2, 2005. (401C5) Expires: April 5,
              2020.

          

    	7.  	
            U.S.
              Patent No. 7,105,245 entitled
              “Fuel Cell System Reactant Supply and Effluent Storage Cartridges” issued
              September 12, 2006. (404C2)
              Expires: December 20, 2024.

          

    	8.  	
            U.S.
              Patent No. 7,118,822
              entitled “Fuel Cell Electrode Pair Assemblies and Related Methods” issued
              October 10, 2006. (402C1) Expires: October 16,
              2022.

          

    	9.  	
            U.S.
              Pat. No. 7,157,177
              entitled “Porous Fuel Cell Electrode Structures Having Conformal
              Electrically Conductive Layers Thereon” issued January 2, 2007. (403)
              Expires: Sept. 29, 2023.

          

    	10.  	
            U.S.
              Pat. No. 7,198,864
              entitled “Silicon-Based Fuel Cell Electrode Structures” issued April 3,
              2007. (401D2)
              Expires: April
              5, 2020.

          

    	11.  	
            U.S.
              Pat. No. 7,205,665
              entitled “Porous Silicon Undercut Etching Deterrent Masks and Related
              Methods” issued April 17, 2007. (414) Expires Nov. 11,
              2025.

          

    

    Foreign
      Patents:

    

    	1.  	
            Chinese
              Patent No. CN1205685C entitled “Fuel Cells Having Silicon Substrates
              And/Or Sol-Gel Derived Support Structures” issued June 1, 2005.
              (401CN)

          

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    U.S.
      Utility Patent Applications:

    

    	1.  	
            U.S.
              Pat. Appl. No. 10/251,518 entitled “Fuel Cells Having Internal Multistream
              Laminar Flow” filed September 20, 2002.
              (404C1)

          

    	2.  	
            U.S.
              Pat. Appl. No. 10/966,721 entitled “Nitric Acid Regeneration Fuel Cell
              Systems” filed Oct. 15, 2004. (405)

          

    	3.  	
            U.S.
              Pat. Appl. No. 10/892,876 entitled “Fuel Cells Having Cross Directional
              Laminar Flowstreams” filed Jul. 16, 2004.
              (406)

          

    	4.  	
            U.S.
              Pat. Appl. No. 11/313,550 entitled
              “Detachable Reactant Supply and Effluent Storage Cartridges, Layered
              Pump
              Assemblies, and Rotatable Fluid Transfer Valve Disk Assemblies for
              Use
              with Regenerative Fuel Cell Systems” filed Dec. 20, 2005.
              (413)

          

    	5.  	
            U.S.
              Pat. Appl. No. 11/530,815 entitled “Closed Liquid Feed Fuel Cell Systems
              And Reactant Supply And Effluent Storage Cartridges Adapted For Use
              With
              The Same” filed September 11, 2006.
              (404C3)

          

    	6.  	
            U.S.
              Pat. Appl. No. 11/669,895 entitled “Liquid-liquid Fuel Cell Systems Having
              Flow-Through Anodes and Flow-By Cathodes” filed January 31, 2007.
              (416)

          

    

    PCT
      and Foreign Patent Applications:

    

    	1.  	
            Canadian
              Pat. Appl. No. 2,392,115 entitled “Fuel Cells Having Silicon Substrates
              And/Or Sol-Gel Derived Support Structures” filed July 27, 2002.
              (401CA)

          

    	2.  	
            Chinese
              Pat. Appl. No. 00818422.4 entitled “Fuel Cells Having Silicon Substrates
              And/Or Sol-Gel Derived Support Structures” filed July 26, 2002.
              (401CN)

          

    	3.  	
            European
              Pat. Appl. No. 00991398.9 entitled “Fuel Cells Having Silicon Substrates
              And/Or Sol-Gel Derived Support Structures” filed May 17, 2002.
              (401EP)

          

    	4.  	
            Japanese
              Pat. Appl. No. 2001-537811 entitled “Fuel Cells Having Silicon Substrates
              And/Or Sol-Gel Derived Support Structures” filed May 17, 2002.
              (401JP)

          

    	5.  	
            Canadian
              Pat. Appl. No. 2,444,688 entitled “Porous Silicon And Sol-Gel Derived
              Electrode Structures And Assemblies For Use With Fuel Cell Systems” filed
              October 17, 2003. (401CCA)

          

    	6.  	
            Chinese
              Pat. Appl. No. 02811803.0 entitled “Porous Silicon And Sol-Gel Derived
              Electrode Structures And Assemblies For Use With Fuel Cell Systems” filed
              October 20, 2003. (401CCN)

          

    	7.  	
            European
              Pat. Appl. No. 02731430.1 entitled “Porous Silicon And Sol-Gel Derived
              Electrode Structures And Assemblies For Use With Fuel Cell Systems” filed
              November 19, 2003. (401CEP)

          

    	8.  	
            Japanese
              Pat. Appl. No. 2002-584409 entitled “Porous Silicon And Sol-Gel Derived
              Electrode Structures And Assemblies For Use With Fuel Cell Systems” filed
              October 20, 2003. (401CJP)

          

    	9.  	
            Canadian
              Pat. Appl. No. 2,472,232 entitled “Porous Fuel Cell Electrode Structures
              Having Conformal Electrically Conductive Layers Thereon” filed July 3,
              2004. (403CA)

          

    	10.  	
            Chinese
              Pat. Appl. No. 03801936.1 entitled “Porous Fuel Cell Electrode Structures
              Having Conformal Electrically Conductive Layers Thereon” filed July 2,
              2004. (403CN)

          

    	11.  	
            European
              Pat. Appl. No. 03701220.0 entitled “Porous Fuel Cell Electrode Structures
              Having Conformal Electrically Conductive Layers Thereon” filed July 3,
              2004. (403EP)

          

    	12.  	
            Japanese
              Pat. Appl. No. 2003-558944 entitled “Porous Fuel Cell Electrode Structures
              Having Conformal Electrically Conductive Layers Thereon” filed July 2,
              2004. (403JP)

          

    

    
      
         

      

      14Unassociated Document

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE ”ACT”),
      OR
      ANY STATE SECURITIES LAWS. NO INTEREST IN THIS NOTE MAY BE OFFERED OR SOLD
      EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
      AND APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, PURSUANT TO RULE
      144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT), OR (iii) AN
      EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAWS WHERE PAYEE
      HAS FURNISHED TO THE COMPANY AN OPINION OF ITS COUNSEL THAT AN REGISTRATION
      IS
      NOT REQUIRED.

     

    ASKMENOW,
      INC.

    12%
      JUNIOR CONVERTIBLE PROMISSORY NOTE

    

    
      	
              $________________

            	
              ____________,
                2007

            
	 	 
	 	 

    

    FOR
      VALUE
      RECEIVED, the undersigned, AskMeNow, Inc., a Delaware corporation (the
“Company”
or
      “Payor”),
      having its executive office and principal place of business at 26 Executive
      Park, Suite 250, Irvine, CA 92614, hereby promises to pay to
      _____________________, a _______________ with its principal place of business
      at
      __________________ (the “Payee”)
      at
      such address for Payee (or at such other place as Payee may from time to time
      hereafter direct by notice in writing to Payor), the principal sum of
      ______________ Dollars ($_____), together with interest at the Note Rate set
      forth in Section 2 on the principal balance outstanding from time to time.
      Any
      or all amounts of the amounts outstanding under this 12% Junior Convertible
      Promissory Note (this “Note”),
      including principal and accrued interest, are convertible into shares of the
      Company’s capital stock in accordance with Section 3 hereof. 

     

    This
      Note
      is being issued in connection with a bridge financing (the “Bridge
      Offering”)
      by the
      Company on a “best efforts” no minimum basis, up to a maximum of $1,000,000 of
      Bridge Offering units (each a “Bridge
      Unit”).
      Each
      Bridge Unit consists of $1.00 principal amount of 12% Junior Convertible
      Promissory Notes and Warrants to purchase Three (3) shares of common stock,
      $.01
      par value, of the Company at $.50 per share (the “Common
      Stock”),
      to be
      offered on a “best efforts” basis. The Bridge Offering is being made only to
      investors who qualify as “accredited investors” as such term is defined in Rule
      501 of Regulation D under the Securities Act of 1933, as amended (the
“Act”).
      Partial Bridge Units may be sold by the Company in its sole discretion.

     

    All
      of
      the proceeds of the Bridge Offering will be used by the Company for general
      corporate purposes, including working capital.

     

    1. Maturity
      Date.
      Subject
      to the provisions of Section 3 below, the entire outstanding balance of this
      Note, including principal and unpaid accrued interest thereon (together, the
      “Note
      Balance”),
      will
      be due and payable in a single instalment on _______, 2008 (270 days following
      the issue date of this Note) (the “Maturity
      Date”).
      Notwithstanding the foregoing, the Maturity Date may be extended by an
      additional 90 days from the Maturity Date to _________, 2008 (the “Extended
      Maturity Date”)
      upon
      delivery by the Company of written notice thereof to the Payee no later than
      12:00 P.M. EST on the business day immediately preceding the Maturity
      Date.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    2. Interest
      And Payment; Prepayment.

     

    2.1 The
      principal amount of this Note outstanding from time to time shall bear simple
      interest at the annual rate (the “Note
      Rate”)
      of
      twelve (12%) percent from the date hereof through the date of repayment or
      conversion, payable upon such date of repayment or conversion, as applicable.
      

     

    2.2 The
      principal amount of this Note may be prepaid in whole at any time, or in part
      from time to time, without penalty or premium, together with unpaid interest
      thereon.  

     

    2.3 All
      payments made by the Payor on this Note, including all prepayments, shall be
      applied first to the payment of accrued unpaid interest on this Note and then
      to
      the reduction of the unpaid principal balance of this Note. 

     

    2.4 All
      payments made by the Payor on this Note shall be made in such currency of the
      United States as shall be legal tender for the payment of public and private
      debts at the time of payment, at the address of the Payee set forth above,
      or at
      such other place as the Payee shall have designated in advance in writing to
      the
      Payor.

     

    2.5 In
      the
      event that the date for the payment of any amount payable under this Note falls
      due on a Saturday, Sunday or public holiday under the laws of the State of
      California, the time for payment of such amount shall be extended to the next
      succeeding business day and interest at the Note Rate shall continue to accrue
      on any principal amount so effected until the payment thereof on such extended
      due date.

     

    3. Conversion.

    

    3.1
      Optional
      Conversion at Any Time.
      At the
      option of the Payee exercised by written notice to the Company at any time
      while
      this Note remains outstanding, all but not less than all of the Note Balance
      may
      be converted into shares of the Company’s Common Stock, at a per share price
      equal to $.50 per share, with the same rights and preferences as the currently
      issued and outstanding shares of Common Stock. The number of shares of Common
      Stock to which the Payee will be entitled upon conversion of this Note pursuant
      to this Section 3.1 will be determined by dividing the dollar amount of the
      Note
      Balance on the Conversion Date (as defined below) by $.50 per share.

    

    3.2 Optional
      Conversion at Qualified Investment.
      If a
      person, business entity, or group of persons or business entities acting in
      concert (the “Qualified
      Investor”),
      acting after the date hereof and before the Maturity Date or Extended Maturity
      Date, as applicable, acquires, in a single arms-length transaction or in a
      series of related arms-length transactions, shares of the Company’s common
      stock, $.01 par value (the “Common
      Stock”)
      or
      other equity securities of the Company convertible into or exercisable for
      Common Stock, for an aggregate consideration valued at Five Million Dollars
      ($5,000,000) or more (the “Qualified
      Investment”),
      then
      at the same time the Qualified Investor pays the consideration for the Qualified
      Securities (as defined below), the Payee may elect by written notice thereof
      to
      the Company to convert all but not less than all of the Note Balance into
      securities that are the same series and with the same rights and preferences
      as
      the equity securities purchased by the Qualified Investor (the “Qualified
      Securities”),
      at a
      per share price equal to the per share sale price paid by the Qualified Investor
      (the “Conversion
      Price”).
      For
      these purposes, any equity securities of the Company issued in respect of this
      Note and any other Notes issued in the Bridge Offering of which this Note is
      a
      part shall not be counted towards the aforesaid Five Million Dollars
      ($5,000,000). The number of Qualified Securities to which the Payee will be
      entitled upon conversion of this Note pursuant to this Section 3.2 will be
      determined by dividing the dollar amount of the Note Balance on the Conversion
      Date by the Conversion Price. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    3.3 Mechanics
      of Conversion; No Fractional Shares.
      In the
      event of a conversion pursuant to this Section 3, the Company covenants and
      agrees to take any and all actions that may be reasonably necessary or desirable
      in order to issue the Qualified Securities or Common Stock under the terms
      and
      conditions of this Note. Before the Payee shall be entitled to receive a
      certificate for the shares of the Qualified Securities or Common Stock into
      which this Note has been converted, the Payee shall surrender this Note duly
      endorsed, at the office of the Company, and shall execute and deliver to the
      Company all other agreements requested by the Company which relate to the
      Qualified Securities or Common Stock. The Company shall, as soon as reasonably
      practicable thereafter, and in any event within ten (10) business days of the
      date of conversion, issue and deliver to the Payee, at the address specified
      by
      the Payee, a certificate or certificates for the Qualified Securities or Common
      Stock to which the Payee shall be entitled. No fractional shares shall be issued
      upon conversion of this Note and the number of Qualified Securities or Common
      Stock to be issued shall be rounded to the nearest whole share. Any conversion
      pursuant to this Section 3 shall be deemed effective as of immediately prior
      to
      the close of business on the date on which the applicable conversion notice
      is
      delivered, and this Note is surrendered, by the Payee to the Company (the
“Conversion
      Date”).

    

    4. No
      Rights as Shareholder.
      Nothing
      contained in this Note shall be construed as conferring upon the Payee or its
      permitted transferees, prior to the conversion of this Note, the right to vote,
      receive dividends, consent or receive notice as a shareholder in respect of
      any
      meeting of shareholders for the election of directors of the Company or of
      any
      other matter, or any other rights as a shareholder of the Company.

     

    5. Replacement
      Of Note.

     

    5.1 In
      the
      event that this Note is mutilated, destroyed, lost or stolen, Payor shall,
      at
      its sole expense, execute, register and deliver a new Note, in exchange and
      substitution for this Note, if mutilated, or in lieu of and substitution for
      this Note, if destroyed, lost or stolen. In the case of destruction, loss or
      theft, Payee shall furnish to Payor indemnity reasonably satisfactory to Payor,
      and in any such case, Payee shall also furnish to Payor evidence to its
      reasonable satisfaction of the mutilation, destruction, loss or theft of this
      Note and of the ownership thereof. Any replacement Note so issued shall be
      in
      the same outstanding principal amount as this Note and dated the date to which
      interest shall have been paid on this Note or, if no interest shall have yet
      been paid, dated the date of this Note.

     

    5.2 Every
      Note issued pursuant to the provisions of Section 5.1 above in substitution
      for
      this Note shall constitute a contractual obligation of the Payor, whether or
      not
      this Note shall be found at any time or be enforceable by anyone.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    6. Covenants
      of Payor.
      

     

    Payor
      covenants and agrees that, so long as this Note remains outstanding and unpaid,
      in whole or in part: 

     

    6.1 Payor
      will not sell, transfer or dispose of a material part of its assets;

     

    6.2 Payor
      will not make any loan to any person who is or becomes a shareholder or
      executive employee of Payor, other than for reasonable advances for expenses
      in
      the ordinary course of business;

     

    6.3 Payor
      will promptly pay and discharge all lawful taxes, assessments and governmental
      charges or levies imposed upon it, its income and profits, or any of its
      property, before the same shall become in default, as well as all lawful claims
      for labor, materials and supplies which, if unpaid, might become a lien or
      charge upon such properties or any part thereof; provided,
      however,
      that
      Payor or such subsidiary shall not be required to pay and discharge any such
      tax, assessment, charge, levy or claim so long as the validity thereof shall
      be
      contested in good faith by appropriate proceedings and Payor or such subsidiary,
      as the case may be, shall set aside on its books adequate reserves (if required
      by generally accepted accounting principles) with respect to any such tax,
      assessment, charge, levy or claim so contested;

     

    6.4 Payor
      will do or cause to be done all things necessary to preserve and keep in full
      force and effect its corporate existence, rights and franchises and
      substantially comply with all laws applicable to Payor as its counsel may
      advise;

     

    6.5 Payor
      will at all times maintain, preserve, protect and keep its property used or
      useful in the conduct of its business in good repair, working order and
      condition (except for the effects of reasonable wear and tear in the ordinary
      course of business) and will, from time to time, make all necessary and proper
      repairs, renewals, replacements, betterments and improvements
      thereto;

     

    6.6 Payor
      will keep adequately insured, by financially sound reputable insurers, all
      property of a character usually insured by similar corporations and carry such
      other insurance as is usually carried by similar corporations;

     

    6.7 Payor
      will, promptly following the occurrence of an Event of Default or of any
      condition or event which, with the giving of notice or the lapse of time or
      both, would constitute an Event of Default, furnish a statement of Payor’s Chief
      Executive Officer or Chief Financial Officer to Payee setting forth the details
      of such Event of Default or condition or event and the action which Payor
      intends to take with respect thereto; 

     

    6.8 Payor
      will, and will cause each of its subsidiaries to, at all times maintain books
      of
      account in which all of its financial transactions are duly recorded in
      conformance with generally accepted accounting principles; 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    6.9 Payor
      shall not create, incur, assume or suffer to exist any pledge, hypothecation,
      assignment, deposit arrangement, lien, charge, claim, or security interest,
      mortgage, deed of trust, easement or encumbrance, or preference, priority or
      other security agreement or preferential arrangement of any kind or nature
      whatsoever (except for liens for taxes not yet due and payable or being
      contested in good faith, mechanics’ materialmen’s or similar liens, and liens
      securing rental or lease payments, together the “Permitted
      Liens”)
      with
      respect to the assets of Payor or such subsidiary; and

     

    6.10 Payor
      shall not issue any debt, equity or other instrument which would give the holder
      thereof, directly or indirectly, a right in any assets of Payor or such
      subsidiary that are pari passu, senior or superior to any right of the Payee
      in
      or to such assets.

     

    7. Events
      of Default.
      If
      any of
      the following events (each an “Event
      of Default”)
      occurs:

     

    7.1 The
      dissolution of Payor or any vote in favor thereof by the board of directors
      and
      shareholders of Payor; 

     

    7.2 Payor
      makes an assignment for the benefit of creditors, or files with a court of
      competent jurisdiction an application for appointment of a receiver or similar
      official with respect to it or any substantial part of its assets, or Payor
      files a petition seeking relief under any provision of the Federal Bankruptcy
      Code or any other federal or state statute now or hereafter in effect affording
      relief to debtors, or any such application or petition is filed against Payor,
      which application or petition is not dismissed or withdrawn within thirty (30)
      days from the date of its filing; 

     

    7.3 Payor
      fails to pay the principal amount, or interest on, or any other amount payable
      under, this Note within ten (10) days of the date such amount becomes due and
      payable; 

     

    7.4 Payor
      admits in writing its inability to pay its debts as they mature; 

     

    7.5 Payor
      sells all or substantially all of its assets or merges or is consolidated with
      or into another corporation, other than a merger with or into a publicly traded
      corporation or a merger to change Payor’s jurisdiction of
      incorporation;

     

    7.6 A
      proceeding is commenced to foreclose a security interest or lien in any property
      or assets of Payor as a result of a default in the payment or performance of
      any
      debt (in excess of $50,000 and secured by such property or assets) of Payor
      or
      of any subsidiary of Payor; 

     

    7.7 A
      final
      judgment for the payment of money in excess of $50,000 is entered against Payor
      by a court of competent jurisdiction, and such judgment is not discharged (nor
      the discharge thereof duly provided for) in accordance with its terms, nor
      a
      stay of execution thereof procured, within thirty (30) days after the date
      such
      judgment is entered, and, within such period (or such longer period during
      which
      execution of such judgment is effectively stayed), an appeal therefrom has
      not
      been prosecuted and the execution thereof caused to be stayed during such
      appeal; 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    7.8 An
      attachment or garnishment is levied against the assets or properties of Payor
      or
      any subsidiary of Payor involving an amount in excess of $50,000 and such levy
      is not vacated, bonded or otherwise terminated within thirty (30) days after
      the
      date of its effectiveness; 

     

    7.9 Payor
      defaults in the due observance or performance of any covenant, condition or
      agreement on the part of Payor to be observed or performed pursuant to the
      terms
      of this Note (other than the default specified in Section 7.3 above) and such
      default continues uncured for a period of thirty (30) days; 

     

    7.10 Payor
      creates, incurs, assumes or suffers to exist any pledge, hypothecation,
      assignment, deposit arrangement, lien, charge, claim, or security interest,
      mortgage, deed of trust, easement or encumbrance, or preference, priority or
      other security agreement or preferential arrangement of any kind or nature
      whatsoever (except permitted Liens) with respect to the assets of Payor or
      such
      subsidiary; or 

     

    7.11 If
      Payor
      issues any debt, equity or other instrument which would give the holder thereof,
      directly or indirectly, a right in any assets of Payor or such subsidiary that
      are senior or superior to any right of the Payee in or to such
      assets.

     

    8. Suits
      for Enforcement and Remedies.
      Upon the
      occurrence of an Event of Default and Payor’s failure to cure such default, the
      Payee shall have the right, at Payee’s option, to declare the Note Balance to be
      forthwith due and payable, and, in the case of an Event of Default pursuant
      to
      Section 7.3 above, the Payee shall automatically be entitled to full and
      immediate payment of all amounts due under this Note without any action on
      the
      part of or declaration by Payee required. If any one or more Events of Default
      shall occur and be continuing, the Payee further may proceed to (i) protect
      and enforce Payee’s rights either by suit in equity or by action at law, or
      both, whether for the specific performance of any covenant, condition or
      agreement contained in this Note or in any agreement or document referred to
      herein or in aid of the exercise of any power granted in this Note or in any
      agreement or document referred to herein, (ii) enforce the payment of this
      Note, or (iii) enforce any other legal or equitable right of Payee. No
      right or remedy herein or in any other agreement or instrument conferred upon
      Payee is intended to be exclusive of any other right or remedy, and each and
      every such right or remedy shall be cumulative and shall be in addition to
      every
      other right and remedy given hereunder or now or hereafter existing at law
      or in
      equity or by statute or otherwise. 

     

    9. Unconditional
      Obligation; Fees, Waivers, Other.

     

    9.1 The
      obligations to make the payments provided for in this Note are absolute and
      unconditional and not subject to any defense, set-off, counterclaim, rescission,
      recoupment or adjustment whatsoever.

     

    9.2 If,
      following the occurrence of an Event of Default, Payee shall seek to enforce
      the
      collection of any amount of principal of and/or interest on this Note, there
      shall be immediately due and payable from Payor, in addition to the then unpaid
      principal of, and accrued unpaid interest on, this Note, all costs and expenses
      incurred by Payee in connection therewith, including, without limitation,
      reasonable attorneys’ fees and disbursements.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    9.3 No
      forbearance, indulgence, delay or failure to exercise any right or remedy with
      respect to this Note shall operate as a waiver or as an acquiescence in any
      default, nor shall any single or partial exercise of any right or remedy
      preclude any other or further exercise thereof or the exercise of any other
      right or remedy.

     

    9.4 This
      Note
      may not be modified or discharged (other than by payment or exchange) except
      by
      a writing duly executed by Payor and Payee; provided
      that no
      material provision of this Note may be amended without the written consent
      of
      the Company and the holders of at least one-half of the aggregate principal
      amount of all of the Notes issued in the Bridge Offering to which this Note
      relates.

     

    9.5 Payor
      hereby expressly waives demand and presentment for payment, notice of
      nonpayment, notice of dishonor, protest, notice of protest, bringing of suit,
      and diligence in taking any action to collect amounts called for hereunder,
      and
      shall be directly and primarily liable for the payment of all sums owing and
      to
      be owing hereon, regardless of and without any notice, diligence, act or
      omission with respect to the collection of any amount called for hereunder
      or in
      connection with any right, lien, interest or property at any and all times
      which
      Payee had or is existing as security for any amount called for hereunder.

     

    10. Restriction
      on Transfer.
      This
      Note has been acquired for investment, and this Note has not been registered
      under the securities laws of the United States of America or any state thereof,
      including the Act. Accordingly, no interest in this Note may be offered for
      sale, sold or transferred in the absence of registration and qualification
      of
      this Note, under applicable federal and state securities laws, including the
      Act, or an opinion of counsel of Payee reasonably satisfactory to Payor that
      such registration and qualification are not required.

     

    11. Subordination.
      The
      rights of the Payee hereunder in and to the assets of the Company are hereby
      expressly subordinated to the rights in and to such assets of the holders of
      the
      Company’s Senior Indebtedness, as hereinafter defined. Senior Indebtedness shall
      mean those certain 12% Senior Promissory Notes issued by the Company in its
      $3,000,000 best efforts, no minimum bridge offering completed in May 2007.
      Subject to the rights of the holders of Senior Indebtedness, nothing contained
      in this Section 11 shall impair, as between the Payor and the Payee, the
      obligation of the Payor, subject to the terms and conditions hereof, to pay
      to
      the Payee the principal hereof and interest hereon as and when the same become
      due and payable, or shall prevent the Payee, upon default hereunder, from
      exercising all rights, powers and remedies otherwise provided herein or by
      applicable law.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    12. Piggyback
      Registration Rights.
      If, at
      any time during the two-year period commencing with the issuance of this Note,
      the Payor proposes or is required to file a registration statement registering
      any shares of Common Stock or securities convertible into or exchangeable for
      Common Stock (other than on Form S-4 or Form S-8, or such other forms as the
      U.S. Securities and Exchange Commission may hereafter promulgate for
      registration of securities in transactions for which Form S-4 or Form S-8 may
      be
      used as of the date hereof), whether or not for its own account, the Payor
      shall
      give at least 20 days prior written notice to the Payee of its intention to
      do
      so. Upon written request by the Payee within 10 days after receipt of such
      notice, the Payor shall use its commercially reasonable efforts to include
      in
      the securities to be registered by such registration statement all shares of
      Common Stock issued or issuable upon conversion of this Note (which registration
      right with respect to such conversion shares shall be in addition to any
      registration rights with respect to any shares underlying that certain Warrant,
      dated as of the date hereof, issued by the Payor to the Payee in connection
      with
      Payee’s participation in the Bridge Offering) that the Payee indicates in such
      notice that the Payee desires to sell, subject to the following terms and
      conditions: (i) if such registration statement is for a prospective underwritten
      offering, the Payee shall agree to (a) enter into an underwriting agreement,
      if
      required, in customary form with the underwriter or underwriters selected by
      the
      Company, and (b) sell the Payee’s securities, if the Company so requests, on the
      same basis and upon the same terms as the other securities covered by such
      registration statement, other than securities proposed to be registered by
      the
      holders of the Preferred Stock (as defined below), and provided
      that if
      the number of shares requested by the Payee to be registered in such offering
      exceeds the amount of shares which the underwriters reasonably believe is
      compatible with the success of such underwritten offering, the Company shall
      only be required to include in such offering that number of shares requested
      to
      be registered by the Payee as the underwriters believe will not jeopardize
      the
      success of such offering, provided,
      however
      that any
      such decrease in the number of shares sought to be registered by the Payee
      shall
      occur on a pari
      passu
      basis
      with the other shares being registered, other than any shares proposed to be
      registered by the holders of the Preferred Stock; (ii) if the number of shares
      the Payor is able to register is limited due to Rule 415 or other SEC shelf
      registration rules, Payor shall only be required to register the shares Payee
      elects to convert on a pari
      passu
      basis
      with the other shares being registered, other than any shares proposed to be
      registered by the holders of the Preferred Stock; and (iii) the Payor may
      withdraw any such registration statement before it becomes effective or postpone
      the offering of securities contemplated by such registration statement without
      any obligation to the Payee or any other Payee. The Payor shall have exclusive
      control over the preparation and filing of any registration statement proposed
      to be filed under this Section 12 as well as any amendments and supplements
      thereto and the withdrawal or revocation thereof. The Payor’s obligations
      pursuant to this Section 12 are subject to the Payee’s cooperation with respect
      to any such proposed registration, including but not limited to the provision
      of
      such information as may reasonably be requested by the Payor, the underwriter(s)
      or any other authorized parties and the execution and delivery of such
      agreements (including indemnification and contribution agreements), instruments
      and documents as may be reasonably requested thereby, and the Payee’s compliance
      with all applicable laws. The Payor shall pay all reasonable expenses incurred
      in connection with the registration contemplated hereby, including without
      limitation registration and filing fees, printing expenses, and fees and
      expenses of counsel for the Payor. Notwithstanding the foregoing, underwriting
      discounts and commissions and transfer taxes relating to the Payee’s registered
      securities included in any registration hereunder, and all fees and expenses
      for
      counsel to the Payee, shall be borne and paid by the Payee. The registration
      rights and other rights granted in this Section 12 are not assignable, in whole
      or in part, without the prior written consent of the Payor. Notwithstanding
      anything to the contrary set forth herein, the Payee hereby expressly agrees
      and
      acknowledges that any registration rights of the Payee hereunder are subordinate
      to those of the holders of the Company’s 10% (PIK) Series A Preferred Stock and
      the Company’s 10% (PIK) Series B Preferred Stock (together, the “Preferred
      Stock”) and warrants issued to such holders in connection with the purchase and
      sale of the Preferred Stock.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    13. Miscellaneous.

     

    13.1 The
      headings of the various paragraphs of this Note are for convenience of reference
      only and shall in no way modify any of the terms or provisions of this
      Note.

     

    13.2 All
      notices required or permitted to be given hereunder shall be in writing and
      shall be deemed to have been duly given when personally delivered or sent by
      registered or certified mail (return receipt requested, postage prepaid),
      facsimile transmission or overnight courier to the address of the intended
      recipient as set forth in the preamble to this Note or at such other address
      as
      the intended recipient shall have hereafter given to the other party hereto
      pursuant to the provisions of this Note. Any such notice shall be deemed
      received (i) in the case of personal delivery or delivery by facsimile, on
      the
      date of such delivery, (ii) in the case of overnight courier, on the next
      business day following when sent, and (iii) in the case of mailing, on the
      third
      business day following the date on which the notice was
      post-marked.

     

    13.3 This
      Note
      and the obligations of Payor and the rights of Payee shall be governed by and
      construed in accordance with the substantive laws of the State of California
      without giving effect to the choice of laws rules thereof.

     

    13.4 This
      Note
      shall bind Payor and its successors and assigns. Neither the Payor nor the
      Payee
      may assign this Note without the prior written consent of the other party,
      provided
      that
      under no circumstances may the Payee assign this Note to any individual or
      entity that is a competitor, directly or indirectly, with the
      Payor.

     

    
      	 
	 	
              ASKMENOW,
                INC.

            
	 
	 
	 
	 	
              By:

            	 	 
	 	
              Name:

            	
              Darryl
                Cohen

            	 
	 	
              Title:

            	
              CEO

            	 

    

    

     

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    

      THIS
        WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
        HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
        “ACT”) OR ANY STATE SECURITIES LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT
        BE
        SOLD, OFFERED FOR SALE, OR OTHERWISE TRANSFERRED UNLESS
        AND UNTIL REGISTERED UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
        OR
        UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE
        COMPANY
        THAT SUCH REGISTRATION IS NOT REQUIRED.

       

      2007-_____

      WARRANT
        TO PURCHASE SHARES

      OF
        THE COMMON STOCK OF

      

      ASKMENOW,
        INC.

      

      (Void
        after Expiration Date - ____________, 2012)

      

      Issue
        Date: __________, 2007

      

      This
        certifies that ___________________, a __________________ with a principal
        business address of ___________________ (or
        any
        valid transferee thereof, the “Holder”),
        for
        value received, shall be entitled to purchase from AskMeNow, Inc., a Delaware
        corporation having its principal place of business at 26 Executive Park,
        Suite
        250, Irvine, California 92614 (together with its successors and assigns,
        the
“Company”),
        subject to the terms and conditions set forth herein, _________________ (#)
        fully paid and non-assessable shares of the Company’s common stock, par value
        $.01 per share (“Common
        Stock”),
        at a
        price equal to $.50 per share, at any time and from time to time commencing
        as
        of the issue date set forth above (the “Issue
        Date”)
        and
        continuing up to and including 12:00 p.m. (California time) on ___________,
        2012
        (“Expiration
        Date”);
        provided,
        however,
        if such
        date is not a Business Day, then on the Business Day immediately following
        such
        date. The shares purchasable upon exercise of this Warrant, and the purchase
        price per share, each as adjusted from time to time pursuant to the provisions
        of this Warrant, are hereinafter sometimes referred to as the “Warrant
        Shares”
and
        the
“Exercise
        Price,”
        respectively.

       

      This
        Warrant is being issued to the Holder in connection with the Company’s
        $1,000,000 bridge note offering (the “Bridge
        Offering”)
        of 12%
        junior convertible promissory notes due and payable 270 days (unless extended
        by
        the Company for up to an additional 90 days) from the date of issuance (the
        “Notes”).
        This
        Warrant is one of several that will be issued in the Bridge Offering, all
        identical except for names and amounts. An aggregate of 3,000,000 warrants
        will
        be issued by the Company if the full $1,000,000 Bridge Offering is completed.
        Such warrants are being issued on the basis of three (3) warrants for every
        $1.00 principal amount of Notes issued by the Company. 

       

      
 

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

      1. Exercise;
        Issuance of Certificates; Payment for Shares.

       

      1. General.
        This
        Warrant is exercisable upon the surrender to the Company at its principal
        place
        of business (or at such other location as the Company may advise the Holder
        in
        writing) of this Warrant properly endorsed with an exercise notice in
        substantially the form attached hereto as Schedule
        A
        duly
        completed and signed and, if applicable, upon payment in cash, certified
        or bank
        check or other immediately available funds of the aggregate Exercise Price
        for
        the number of Warrant Shares for which this Warrant is being exercised as
        determined in accordance with the provisions hereof. This Warrant is exercisable
        in whole or in part, in increments of 5,000 shares, and in no event shall
        any
        exercise hereof be for fewer than 5,000 Warrant Shares unless fewer than
        5,000
        Warrant Shares are then purchasable under this Warrant. In
        the
        case of the exercise for less than all of the Warrant Shares represented
        by this
        Warrant, the Company shall cancel this Warrant certificate upon the surrender
        hereof and shall execute and deliver a new Warrant certificate or certificates
        of like tenor for the balance of the Warrant Shares for which this Warrant
        has
        not yet been exercised. The
        Company agrees that the shares of Common Stock purchased under this Warrant
        shall be deemed to be issued to the Holder hereof, and the Holder deemed
        to be
        the record owner of such shares, as of immediately prior to the close of
        business on the date on which the exercise notice attached hereto as
Schedule
        A
        is
        delivered, and this Warrant surrendered, to the Company as provided herein
        (such
        date, the “Exercise
        Date”).
        Certificates for the shares of Common Stock purchased upon exercise, together
        with any other securities or property to which the Holder is entitled upon
        such
        exercise, shall be delivered to the Holder by the Company at the Company’s
        expense within a reasonable time after the rights represented by this Warrant
        have been so exercised, and in any event within 10 business days of the Exercise
        Date. Each Common Stock certificate so delivered shall be in such denominations
        as may be requested by the Holder hereof and shall be registered on the
        Company’s books in the name designated by such Holder.

      

      1.2 Exercise
        for Cash.
        This
        Warrant may be exercised, in whole at any time or in part from time to time,
        commencing on the Issue Date and prior to 12:00 P.M. (California time) on
        the
        Expiration Date, for cash by delivery of the exercise notice attached hereto
        as
Schedule
        A
        and
        surrender of this Warrant to the Company, together with proper payment of
        the
        aggregate Exercise Price payable hereunder for the Warrant Shares being
        purchased upon such exercise for cash. Payment for the Warrant Shares shall
        be
        made by cash, certified or bank check or wire transfer of immediately available
        funds to the Company. If this Warrant is exercised for cash in part, this
        Warrant must be exercised for a number of whole shares of the Common Stock,
        and
        the Holder is entitled to receive a new Warrant covering the shares for which
        this Warrant has not yet been exercised, in accordance with Section 1.1 above.
        Upon surrender of this Warrant and payment in full of the aggregate Exercise
        Price for the Warrant Shares then being purchased upon such exercise for
        cash,
        the Company will issue a certificate or certificates in the name of the Holder
        for the largest number of whole shares of the Common Stock to which the Holder
        shall be entitled, and deliver the other securities and properties receivable
        upon the exercise of this Warrant, or the proportionate part thereof if this
        Warrant is exercised in part, pursuant to the provisions of this Warrant,
        in
        accordance with Section 1.1 above.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      
 

      1.3 Cashless
        Exercise.
        In lieu
        of exercising this Warrant for cash as set forth in Section 1.2 above, the
        Holder may at any time and from time to time elect to receive, without the
        payment by the Holder of any additional consideration, shares of Common Stock
        equal to the value of this Warrant (or portion thereof) through a cashless
        exercise (a “Cashless
        Exercise”),
        as
        hereinafter provided. The Holder may effect a Cashless Exercise by surrendering
        this Warrant to the Company and noting on the Holder’s duly executed exercise
        notice attached hereto as Schedule
        A that
        the
        Holder wishes to effect a Cashless Exercise, upon which the Company shall
        issue
        to the Holder the number of shares determined as follows: 

       

      X
        = Y *
        (A-B) / A

      where:  

      

      X
        = the
        number of Warrant Shares to be issued to the Holder upon the Cashless
        Exercise;

       

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

       

      A
        = the
        Market Price (as defined below) of one share of Common Stock as of the Exercise
        Date; and

      

      
        	 	 	 	
                B
                  =
                  the Exercise Price (as adjusted, if
                  applicable).

              

      

      

       

      “Market
        Price”
means,
        for any date, the average of the daily Closing Prices per share of Common
        Stock
        for the 10 consecutive trading days immediately prior to such date. The
“Closing
        Price”
per
        share of Common Stock for each day shall be the last sale price, regular
        way,
        or, in case no such sale takes place on such day, the average closing bid
        and
        asked prices, regular way, in either case as reported in the principal
        consolidated transaction reporting system with respect to securities listed
        or
        admitted to trading on the “Over the Counter Market” (“OTC
        BB”),
        the
        NASDAQ National Market System, the New York Stock Exchange or the American
        Stock
        Exchange, as applicable. If on any such trading day or days such securities
        are
        not quoted by any such organization, such trading day or days shall be replaced
        for purposes of the foregoing calculation by the requisite trading day or
        days
        preceding the commencement of such 10 trading day period on which such
        securities are so quoted. If shares of Common Stock are not so listed or
        traded,
        the Market Price shall mean the fair value per share of Common Stock as
        determined in good faith by the Board of Directors of the Company, whose
        determination shall be described in a notice to the Holder, based on (a)
        the
        most recently completed arm’s-length transaction between the Company and a
        person other than an existing shareholder or other affiliate of the Company,
        the
        closing of which occurred on such date or within the three-month period
        preceding such date, or (b) if no such transaction shall have occurred on
        such
        date or within such three-month period, the good faith reasonable judgment
        of
        the Board of Directors.

       

      For
        purposes of Rule 144, it is intended and acknowledged that the Warrant Shares
        issued in a Cashless Exercise transaction shall be deemed to have been acquired
        by the Holder, and the holding period for the Warrant Shares required by
        Rule
        144 shall be deemed to have been commenced, on the Issue Date. 

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      1.4 Shares
        to be Fully Paid; Reservation of Shares.
        The
        Company covenants and agrees that all shares of Common Stock which may be
        issued
        upon the exercise of the rights represented by this Warrant will, upon issuance,
        be duly authorized, validly issued, fully paid and nonassessable and free
        from
        all preemptive rights of any shareholder and free of all taxes, liens and
        charges with respect to the issue thereof. The
        Company further covenants and agrees that, during the period within which
        the
        rights represented by this Warrant may be exercised, the Company will at
        all
        times have authorized and reserved, for the purpose of issue or transfer
        upon
        exercise of the subscription rights evidenced by this Warrant, a sufficient
        number of shares of authorized but unissued Common Stock when and as required
        to
        provide for the exercise of the rights represented by this Warrant. The
        Company will take all such action as may be reasonably necessary to assure
        that
        such shares of Common Stock may be issued as provided herein without violation
        of any applicable law or regulation, or of any requirements of any domestic
        securities exchange upon which the Common Stock or other securities may be
        listed; provided,
        however,
        that
        the Company shall not be required to effect a registration under federal
        or
        state securities laws with respect to any exercise hereunder. 

       

      2. Determination
        or Adjustment of Exercise Price and Number of Shares.
        The
        Exercise Price and the number of Warrant Shares purchasable upon the exercise
        of
        this Warrant shall be subject to adjustment from time to time upon the
        occurrence of certain events described in this Section 2. Upon each adjustment
        of the Exercise Price, the Holder of this Warrant shall thereafter be entitled
        to purchase, at the Exercise Price resulting from such adjustment, the number
        of
        shares obtained by multiplying the Exercise Price in effect immediately prior
        to
        such adjustment by the number of shares purchasable pursuant hereto immediately
        prior to such adjustment, and dividing the product thereof by the Exercise
        Price
        resulting from such adjustment. 

       

      2.1 Subdivision
        or Combination of Common Stock.
        If at
        any time after the Issue Date hereof and prior to the exercise or Expiration
        Date hereof the Company shall subdivide or reclassify its outstanding shares
        of
        Common Stock into a greater number of shares, the Exercise Price in effect
        immediately prior to such subdivision shall be proportionately reduced, and
        conversely, in case the outstanding shares of Common Stock of the Company
        shall
        be combined or reclassified into a smaller number of shares, the Exercise
        Price
        in effect immediately prior to such combination shall be proportionately
        increased. Any adjustment under this Subsection 2.1 shall become effective
        at
        the close of business on the date the subdivision or combination becomes
        effective.

       

      2.2 Dividends
        in Common Stock or Other Stock or Securities.
        If at
        any time or from time to time after the Issue Date hereof and prior to the
        exercise or Expiration Date hereof the holders of Common Stock (or any shares
        of
        stock or other securities at the time receivable upon the exercise of this
        Warrant) shall have received or become entitled to receive, without payment
        therefor, shares of Common Stock or any shares of capital stock or other
        securities which are at any time directly or indirectly convertible into
        or
        exchangeable for Common Stock, or any rights or options to subscribe for,
        purchase or otherwise acquire any of the foregoing by way of dividend or
        other
        distribution, then and in each such case, the Holder shall, upon the exercise
        of
        this Warrant, be entitled to receive, in addition to the number of shares
        of
        Common Stock or other capital stock receivable thereupon, and without payment
        of
        any additional consideration therefor, the amount of stock and other securities
        which such Holder would hold on the date of such exercise had the Holder
        been
        the holder of record of such Common Stock as of the date on which holders
        of
        Common Stock received or became entitled to receive such shares or all other
        additional stock and other securities.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      2.3 Reorganization,
        Reclassification, Consolidation, Merger or Sale.
        If at
        any time after the Issue Date hereof and prior to the exercise or Expiration
        Date hereof any
        recapitalization, reclassification or reorganization of the capital stock
        of the
        Company, or any consolidation or merger of the Company with another corporation,
        or the sale of all or substantially all of its assets or other transaction
        shall
        be effected in such a way that holders of Common Stock shall be entitled
        to
        receive stock, securities, or other assets or property (an “Organic
        Change”),
        then,
        as a condition of such Organic Change, lawful and adequate provisions shall
        be
        made by the Company whereby the Holder hereof shall thereafter have the right,
        upon exercise of this Warrant, to purchase and receive (in lieu of the shares
        of the Common Stock of the Company immediately theretofore purchasable and
        receivable upon the exercise of the rights represented by this Warrant) such
        shares of stock, securities or other assets or property as may be issued
        or
        payable with respect to or in exchange for a number of outstanding shares
        of
        such Common Stock equal to the number of shares of such stock immediately
        theretofore purchasable and receivable upon the exercise of the rights
        represented by this Warrant. In the event of any Organic Change, appropriate
        provision shall be made by the Company with respect to the rights and interests
        of the Holder of this Warrant to the end that the provisions hereof (including,
        without limitation, provisions for adjustments of the Exercise Price and
        of the
        number of shares purchasable and receivable upon the exercise of this Warrant)
        shall thereafter be applicable, in relation to any shares of stock, securities
        or assets thereafter deliverable upon the exercise hereof. 

      

      2.4 No
        Adjustments in Certain Cases.
        No
        adjustment in the number of Warrant Shares purchasable pursuant to this Warrant
        shall be required unless the adjustment would require an increase or decrease
        of
        at least one percent (1.0%) in the number of Warrant Shares then purchasable
        upon the exercise of this Warrant. Except as provided in this Section 2,
        no
        other adjustments in the number, kind or price of shares constituting Warrant
        Shares shall be made during the term, or upon the exercise, of this Warrant.
        Further, no adjustments shall be made pursuant to this Section 2 hereof in
        connection with the grant or exercise of presently authorized or outstanding
        options to purchase, or the issuance of shares of Common Stock under, the
        Company’s director or employee benefit, option and incentive plans.

       

      3. Issue
        Tax. The
        issuance of certificates for shares of Common Stock issuable upon the exercise
        of this Warrant shall be made without charge to the Holder for any issue
        tax
        (other than any applicable income taxes) in respect thereof; provided,
        however,
        that
        the Company shall not be required to pay any tax which may be payable in
        respect
        of any transfer of this Warrant or any Warrant Shares.

      

      4. No
        Voting or Dividend Rights; Limitation of Liability.
        Nothing
        contained in this Warrant shall be construed as conferring upon the Holder
        hereof the right to vote, give consent or receive notices as a shareholder
        of
        the Company. No dividends or interest shall be payable or accrued in respect
        of
        this Warrant, the interest represented hereby, or the shares purchasable
        hereunder until, and only to the extent that, this Warrant shall have been
        exercised. No provisions hereof, in the absence of affirmative action by
        the
        Holder to purchase shares of Common Stock, and no mere enumeration herein
        of the
        rights or privileges of the Holder hereof, shall give rise to any liability
        of
        such Holder for the Exercise Price or as a shareholder of the Company, whether
        such liability is asserted by the Company or by its creditors.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      
 

      5. Representations
        and Covenants of the Holder.
        This
        Warrant has been entered into by the Company in reliance upon the following
        representations and covenants of the Holder:

      

      5.1 Investment
        Purpose.
        This
        Warrant and, if exercised, the Warrant Shares issuable upon exercise of this
        Warrant, will be acquired for the Holder’s own account for investment only and
        not with a view to the sale or distribution of any part hereof or thereof,
        and
        the Holder has no present intention of selling or engaging in any public
        distribution of the same except pursuant to a registration or exemption
        therefrom under the Securities Act of 1933, as amended (the “Act”).

      

      5.2 Private
        Issue.
        The
        Holder understands that (a) this Warrant and the Warrant Shares issuable
        upon
        exercise of this Warrant are not registered under the Act or qualified under
        applicable state securities laws on the ground that the issuance contemplated
        by
        this Warrant will be exempt from the registration and qualifications
        requirements thereof, and (b) that the Company’s reliance on such exemption is
        predicated on the representations set forth in this Section 5.

      

      5.3 Disposition
        of Holder’s Rights.
        In no
        event will the Holder make a disposition of this Warrant or the Warrant Shares
        issuable upon exercise of this Warrant unless and until (a) the Holder shall
        have notified the Company of the proposed disposition, and (b) if requested
        by
        the Company, the Holder shall have furnished the Company with an opinion
        of
        counsel (which counsel may either be inside or outside counsel to the Holder)
        satisfactory to the Company and its counsel to the effect that (i) appropriate
        action necessary for compliance with the Act has been taken, or (ii) an
        exemption from the registration requirements of the Act is available.
        Notwithstanding the foregoing, the restrictions imposed upon the transferability
        of any of its rights to acquire Common Stock issuable on the exercise of
        such
        rights do not apply to transfers from the beneficial owner of any of the
        aforementioned securities to its nominee or from such nominee to its beneficial
        owner, and shall terminate as to any particular share of stock when (1) such
        security shall have been effectively registered under the Act and sold by
        the
        Holder thereof in accordance with such registration or (2) such security
        shall
        have been sold without registration in compliance with Rule 144 under the
        Act,
        or (3) a letter shall have been issued to the Holder at its request by the
        staff
        of the Securities and Exchange Commission or a ruling shall have been issued
        to
        the Holder at its request by such Commission stating that no action shall
        be
        recommended by such staff or taken by such Commission, as the case may be,
        if
        such security is transferred without registration under the Act in accordance
        with the conditions set forth in such letter or ruling and such letter or
        ruling
        specifies that no subsequent restrictions on transfer are required. Whenever
        the
        restrictions imposed hereunder shall terminate, as hereinabove provided,
        the
        Holder or holder of a share of stock then outstanding as to which such
        restrictions have terminated shall be entitled to receive from the Company,
        without expense to such Holder, one or more new certificates for the Warrant
        or
        for such shares of stock not bearing any restrictive legend.

      

      5.4 Financial
        Risk.
        The
        Holder has such knowledge and experience in financial and business matters
        as to
        be capable of evaluating the merits and risks of an investment in the Company,
        and has the ability to bear the economic risks of such investment.

      

      5.5 Accredited
        Investor.
        The
        Holder is an “accredited investor” within the meaning of Regulation D
        promulgated under the Act. 

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      
 

      6. Piggyback
        Registration Rights.
        If, at
        any time during the two-year period commencing with the issuance of the final
        Note under the Bridge Offering, the Company proposes or is required to file
        a
        registration statement registering any shares of Common Stock or securities
        convertible into or exchangeable for Common Stock (other than on Form S-4
        or
        Form S-8, or such other forms as the U.S. Securities and Exchange Commission
        may
        hereafter promulgate for registration of securities in transactions for which
        Form S-4 or Form S-8 may be used as of the date hereof), whether or not for
        its
        own account, the Company shall give at least 20 days prior written notice
        to the
        Holder of its intention to do so. Upon written request by the Holder within
        10
        days after receipt of such notice, the Company shall use its commercially
        reasonable efforts to include in the securities to be registered by such
        registration statement all Warrant Shares (which registration rights with
        respect to such Warrant Shares shall be in addition to any registration rights
        with respect to any shares issued or issuable upon conversion of that certain
        12% Junior Convertible Promissory Note in the principal amount of $300,000
        made
        by the Company in favor of the Holder as of the date hereof in connection
        with
        the Holder’s participation in the Bridge Offering) that
        the
        Holder indicates in such notice that the Holder desires to sell, subject
        to the
        following terms and conditions: (a) if such registration statement is for
        a
        prospective underwritten offering, the Holder shall agree to (i) enter into
        an
        underwriting agreement, if required, in customary form with the underwriter
        or
        underwriters selected by the Company, and (ii) sell the Holder’s securities, if
        the Company so requests, on the same basis and upon the same terms as the
        other
        securities covered by such registration statement, other than securities
        proposed to be registered by the holders of the Preferred Stock (as defined
        below), and provided
        that if
        the number of shares requested by the Holder to be registered in such offering
        exceeds the amount of shares which the underwriters reasonably believe is
        compatible with the success of such underwritten offering, the Company shall
        only be required to include in such offering that number of shares requested
        to
        be registered by the Holder as the underwriters believe will not jeopardize
        the
        success of such offering, provided,
        however
        that any
        such decrease in the number of shares sought to be registered by the Holder
        shall occur on a pari
        passu
        basis
        with the other shares being registered, other than any shares proposed to
        be
        registered by the holders of the Preferred Stock; (b) if
        the
        number of shares the Company is able to register is limited due to Rule 415
        or
        other SEC shelf registration rules, the Company shall only be required to
        register the Warrant Shares the Holder elects to include on a pari
        passu basis
        with the other shares being registered, other than any shares proposed to
        be
        registered by the holders of the Preferred Stock; and (c) the Company may
        withdraw any such registration statement before it becomes effective or postpone
        the offering of securities contemplated by such registration statement without
        any obligation to the Holder or any other holder. The Company shall have
        exclusive control over the preparation and filing of any registration statement
        proposed to be filed under this Section 6 as well as any amendments and
        supplements thereto and the withdrawal or revocation thereof. The Company’s
        obligations pursuant to this Section 6 are subject to the Holder’s cooperation
        with respect to any such proposed registration, including but not limited
        to the
        provision of such information as may reasonably be requested by the Company,
        the
        underwriter(s) or any other authorized parties and the execution and delivery
        of
        such agreements (including indemnification and contribution agreements),
        instruments and documents as may be reasonably requested thereby, and the
        Holder’s compliance with all applicable laws. The Company shall pay all
        reasonable expenses incurred in connection with the registration contemplated
        hereby, including without limitation registration and filing fees, printing
        expenses, and fees and expenses of counsel for the Company. Notwithstanding
        the
        foregoing, underwriting discounts and commissions and transfer taxes relating
        to
        the Holder’s registered securities included in any registration hereunder, and
        all fees and expenses for counsel to the Holder, shall be borne and paid
        by the
        Holder. The registration rights and other rights granted in this Section
        6 are
        not assignable, in whole or in part, without the prior written consent of
        the
        Company. Notwithstanding anything to the contrary set forth herein, the Holder
        hereby expressly agrees and acknowledges that any registration rights of
        the
        Holder hereunder are subordinate to those of the holders of the Company’s 10%
        (PIK) Series A Preferred Stock and the Company’s 10% (PIK) Series B Preferred
        Stock (together, the “Preferred Stock”) and warrants issued to such holders in
        connection with the purchase and sale of the Preferred Stock.

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      
 

      7. Modification
        and Waiver.
        This
        Warrant and any provision hereof may be changed, waived, discharged or
        terminated only by an instrument in writing signed by (a) the party against
        which enforcement of the same is sought or (b) the Company and the holders
        of at
        least a majority of the number of shares into which all Warrants issued in
        connection with the Bridge Offering are exercisable (without regard to any
        limitation contained herein or otherwise on such exercise), it being understood
        that upon the satisfaction of the conditions described in (a) and (b) above,
        each Warrant (including any Warrant held by the Holder who did not execute
        the
        agreement specified in (b) above) shall be deemed to incorporate any amendment,
        modification, change or waiver effected thereby as of the effective date
        thereof. Notwithstanding the foregoing, no modification to this Section 7
        will
        be effective against any Holder without such Holder’s consent.

      

      8. Transfer;
        Legends.
        

      

      (a) The
        Holder may sell, transfer, assign, pledge or otherwise dispose of this Warrant
        or the Warrant Shares, in whole or in part, so long as such sale or other
        disposition is made pursuant to an effective registration statement or an
        exemption from the registration requirements of the Act and applicable state
        securities laws and compliance with Section 5.3 above, and provided
        that no
        sale, transfer, pledge or other disposition may be made to a competitor,
        direct
        or indirect, of the Company at any time. Upon such transfer or other disposition
        (other than a pledge), the Holder shall deliver this Warrant to the Company
        together with a written notice to the Company, substantially in the form
        of the
        transfer notice attached hereto as Schedule
        B,
        indicating the person or persons to whom this Warrant shall be transferred
        and,
        if less than all of this Warrant is transferred, the number of Warrant Shares
        to
        be covered by the part of this Warrant to be transferred to each such person.
        Within ten (10) business days of receiving a transfer notice and the original
        of
        this Warrant, the Company shall deliver to the each transferee designated
        by the
        Holder another Warrant(s) of like tenor and terms for the appropriate number
        of
        Warrant Shares and, if less than all this Warrant is transferred, shall deliver
        to the Holder another Warrant for the remaining number of Warrant Shares
        not so
        transferred. Until this Warrant is transferred on the books of the Company
        (with
        the Company’s consent), the Company may treat the person in whose name this
        Warrant is issued as the absolute
        owner hereof for all purposes, notwithstanding any notice to the
        contrary.

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      
 

      (b) Each
        Warrant and certificate representing Warrant Shares shall bear a legend
        substantially in the following form:

       

      “THIS
        WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
        HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
        “ACT”) OR ANY STATE SECURITIES LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT
        BE
        SOLD, OFFERED FOR SALE, OR OTHERWISE TRANSFERRED UNLESS
        AND UNTIL REGISTERED UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
        OR
        UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE
        COMPANY
        THAT SUCH REGISTRATION IS NOT REQUIRED.”

       

      The
        foregoing legend shall be removed from the certificates representing any
        Warrant
        Shares, at the request of the holder thereof, at such time as they become
        eligible for resale pursuant to Rule 144 under the Act.

       

      9. Notices.
        Any
        notice required or permitted hereunder shall be given in writing (unless
        otherwise specified herein) and shall be deemed effectively given upon (a)
        personal delivery, against written receipt thereof, (b) delivery via facsimile
        with written confirmation, (c) one business day after deposit with Federal
        Express or another nationally recognized overnight courier service, or (d)
        five
        business days after being mailed, postage paid, via certified or registered
        mail, return receipt requested, addressed to each of the other parties thereunto
        entitled, at the addresses set forth on in the introductory paragraph hereof
        or
        at such other addresses as a party may designate by 10 days advance written
        notice.

      

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

      

      11. Descriptive
        Headings and Governing Law.
        The
        description headings of the several sections and paragraphs of this Warrant
        are
        inserted for convenience only and do not constitute a part of this Warrant.
        This
        Warrant shall be construed and enforced in accordance with, and the rights of
        the parties shall be governed by the laws of the State of Delaware.

      

      12. Lost
        Warrants.
        Upon
        receipt of evidence reasonably satisfactory to the Company of the loss, theft,
        destruction, or mutilation of this Warrant and, in the case of any such loss,
        theft or destruction, upon receipt of an indemnity agreement or bond reasonably
        satisfactory to the Company, or in the case of any such mutilation upon
        surrender and cancellation of this Warrant, the Company, at its expense,
        will
        make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen,
        destroyed or mutilated Warrant.

      

      13. Fractional
        Shares.
        No
        fractional shares shall be issued upon exercise of this Warrant. The Company
        shall,
        in
        lieu
        of issuing any fractional share, pay the Holder entitled to such fraction
        a sum
        in cash equal to such fraction multiplied by the then-effective Market
        Price.

      

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      In
        Witness Whereof, the
        Company has caused this Warrant to be duly executed by its officers, thereunto
        duly authorized this ______ day of ____________, 2007.

       

       

      
        	
                AskMeNow,
                  Inc.,
                  

                a
                  Delaware corporation

                 

                 

                By:                                             
                  

                Name:
                  Darryl Cohen

                Title:
                  President and CEO

                 

                Address:

                AskMeNow,
                  Inc. 

                26
                  Executive Park, Suite 250

                Irvine,
                  CA 92614

                Phone: (949)
                  861-2590   

                Fax:
                  (949) 861-2591

                E-mail:
                  dcohen@askmenow.com 

              
	 

      

      

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      

      SCHEDULE
        A

       

      EXERCISE
        NOTICE

       

      Date:
        _________________, _______

       

      AskMeNow,
        Inc.

      Attn:
        Chief Executive Officer

      

       

      Ladies
        and Gentlemen:

       

      The
        undersigned hereby elects to exercise the Warrant issued to it by AskMeNow,
        Inc.
        (“Company”)
        dated
        ___________ __, 2007, which Warrant shall be surrendered herewith, and pursuant
        to the terms thereof hereby elects to exercise rights represented by said
        Warrant for, and to purchase thereunder, __________________ shares of the
        Company's Common Stock covered by said Warrant, at an Exercise Price of $____
        per share, and tenders herewith payment of the purchase price in full for
        such
        shares of $_________, by:

       

      
        	
                 

              	
                (a)

              	
                cash,
                  through the delivery of a certified or official bank check, or
                  wire
                  transfer or immediately available funds; or

              

      

      

      
        	 	
                (b)

              	
                exercising
                  the Cashless Exercise right provided under Section 1.3 of the Warrant
                  by
                  the surrender of said Warrant.

              

      

      

      The
        undersigned hereby requests that certificates for such shares (or any other
        securities or other property issuable upon such exercise) be issued in the
        name
        of and delivered to the undersigned at the address set forth below, or as
        otherwise set forth below.

       

      

       

      Very
        truly yours,

      

      

                                                                                                                      
        

      Name:

      Address:

      

      

      

      

      
        
          
            

          

           

        

        
          20

          
            

          

        

        
           

          
          

        

      

      SCHEDULE
        B

       

      TRANSFER
        NOTICE

       

      

      To
        Be
        Executed by the Holder

      in
        Order
        to Assign Warrants

      

      FOR
        VALUE
        RECEIVED, ________________________________________ hereby sells, assigns
        and
        transfers all of the rights of the undersigned under the attached Warrant
        (No.
        ____) with respect to the number of shares of Common Stock of AskMeNow, Inc.
        covered thereby set forth below, unto:

       

      
        	
                Name
                  of Assignee

              	
                Address

              	
                No.
                  of Shares

              
	 	 	 
	 	 	 
	 	 	 
	 	 	 

      

      The
        undersigned hereby irrevocably constitutes and appoints the Chief Executive
        Officer of the Company as the undersigned’s attorney to transfer this Warrant
        certificate on the books of the Company, with full power of substitution
        in the
        premises.

       

      

       

      Dated:
        _____________________Signature:
        ________________________________

       

      Signature
        Guaranteed:

       

      By:
        _______________________

       

      The
        signature should be guaranteed by an eligible guarantor institution (banks,
        stockbrokers, savings and loan associations and credit unions with membership
        in
        an approved signature guarantee medallion program) pursuant to Rule 17A
        under the Securities Exchange Act of 1934, as amended.

       

      

      
        
           

        

        
          21

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