Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Azco Mining Inc. - Exhibit 4.3

Execution Version

EXHIBIT C

NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE
SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. NOTWITHSTANDING THE FOREGOING,
THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
SECURED BY SUCH SECURITIES.

AZCO MINING, INC.

ADDITIONAL INVESTMENT RIGHT

	Additional Investment Right No. [   ] 	Dated: September __, 2006 

          Azco
Mining, Inc., a Delaware corporation (the “Company”), hereby certifies
that, for value received, [Name of Holder] or its registered assigns (the
“Holder”), is entitled to purchase from the Company (a) up to a total of
[$_________]1 in principal amount of Senior Secured Convertible Notes
of the Company due 17 months from the date of issue in the form attached as
Exhibit A hereto (each such note, an “Additional Note” and all
such notes, the “Additional Notes”) and (b) only as part of and in
connection with the purchase of the Additional Notes, warrants in the form
attached hereto as Exhibit B to acquire up to an aggregate of
[_________]2 shares of Common Stock (the “Additional Investment
Right Warrants”), at any time or from time to time from and after Closing
Date and through and including the date occurring on the one year anniversary of
the Effective Date (the “Expiration Date”), and subject to the following
terms and conditions. This Additional Investment Right (this “Additional
Investment Right”) is one of a series of similar Additional Investment
Rights issued pursuant to that certain Securities Purchase Agreement, dated as
of the date hereof, by and among the Company and the Purchasers identified
therein (the “Purchase Agreement”) and Amendment No. 1 to Senior Secured
Convertible Notes, Warrants, Additional Investment Rights and Security Agreement
dated as of September 6, 2006 by and among the Company and the Purchasers
identified therein 

_________________________
1 Insert Holders amount
from Schedule A of Amendment No. 1 dated September 5, 2006
2 The
number of shares of Common Stock equal to 50% of the quotient obtained by
dividing (i) the aggregate principal amount of the Additional Notes issued to
the Holder by (ii) the Conversion Price.

(the “Amendment”). All such Additional Investment Rights
are referred to herein, collectively, as the “Additional Investment
Rights.”

          1.     
Definitions. Capitalized terms that are not otherwise defined herein have
the meanings given to such terms in the Purchase Agreement.

          2.     
Registration of Additional Investment Right. The Company shall register
this Additional Investment Right, upon records to be maintained by the Company
for that purpose (the “Additional Investment Right Register”), in the
name of the record Holder hereof from time to time. The Company may deem and
treat the registered Holder of this Additional Investment Right as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the contrary.

          3.      Registration
of Transfers. The Company shall register the assignment and transfer of any
portion of this Additional Investment Right in the Additional Investment Right
Register, upon surrender of this Additional Investment Right, with the Form of
Assignment attached hereto on Annex B duly completed and signed, to the
Company at its address specified herein. Upon any such registration or transfer,
a new additional investment right to purchase Additional Notes, in substantially
the form of this Additional Investment Right (any such new additional investment
right, a “New Additional Investment Right”), evidencing the portion of
this Additional Investment Right so transferred shall be issued to the
transferee and a New Additional Investment Right evidencing the remaining
portion of this Additional Investment Right not so transferred, if any, shall be
issued to the transferring Holder. The acceptance of the New Additional
Investment Right by the transferee thereof shall be deemed the acceptance by
such transferee of all of the rights and obligations of a holder of an
Additional Investment Right.

          4.      Exercise
and Duration of Additional Investment Right.

                    (a)     
This Additional Investment Right shall be exercisable by the registered Holder
at any time or from time to time on or after the Closing Date to and including
the Expiration Date. At 6:30 P.M., New York City time on the Expiration Date,
the portion of this Additional Investment Right not exercised prior thereto
shall be void and of no further force and effect. Notwithstanding anything to
the contrary herein, the Expiration Date shall be extended for each day
following the Effective Date that the Registration Statement is not
effective.

                    (b)      The
Holder may exercise this Additional Investment Right by delivering to the
Company (i) an exercise notice, in the form attached hereto on Annex A
(the “Exercise Notice”), appropriately completed and duly signed and
(ii) payment of the principal amount of the Additional Notes as to which this
Additional Investment Right is being exercised (the “Exercise Price”).
The date such items are delivered to the Company (as determined in accordance
with the notice provisions hereof) is an “Exercise Date.” The Holder
shall not be required to deliver the original Additional Investment Right in
order to effect an exercise hereunder. Execution and delivery of the Exercise
Notice shall have the same effect as cancellation of the original Additional
Investment Right and issuance of a New Additional Investment Right evidencing
the right to purchase the remaining number of Additional Notes and Additional
Investment Right Warrants.

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          5.      Delivery
of Additional Notes and Additional Investment Right Warrants.

                    (a)     
Upon exercise of this Additional Investment Right, the Company shall promptly
(but in no event later than three Trading Days after the Exercise Date) issue or
cause to be issued and cause to be delivered to or upon the written order of the
Holder and in such name or names as the Holder may designate, (i) a certificate
for the Additional Notes and Additional Investment Right Warrants issuable upon
such exercise, free of restrictive legends unless a registration statement
covering the resale of the Additional Notes, the Additional Investment Right
Warrants or the Underlying Shares to be issued thereunder, as the case may be,
and naming the Holder as a selling stockholder thereunder is not then effective
and the Additional Notes or Additional Investment Right Warrants, or the
Underlying Shares associated therewith, are not freely transferable without
volume restrictions pursuant to Rule 144 under the Securities Act, (ii) the
legal opinions of Company Counsel, substantially in the form of Exhibit F
to the Purchase Agreement, executed by such counsel and delivered to the Holders
relating to the Additional Notes and Additional Investment Right Warrants, and
(iv) a certificate from an officer of the Company that each of the
representations and warranties of the Company set forth in Section 3.1 of the
Purchase Agreement is true and correct as of the date when made, except for such
representations and warranties that speak as of a certain date, and in such case
shall have been true and correct as of such date, and as of the Exercise Date as
though made on and as of such date, and each of the other conditions set forth
in Section 5.1 of the Purchase Agreement have been satisfied as of the Exercise
Date. The Holder, or any Person so designated by the Holder to receive
Additional Notes or Additional Investment Right Warrants, shall be deemed to
have become holder of record of such Additional Notes or Additional Investment
Right Warrants as of the Exercise Date. The Company shall, upon request of the
Holder and if the Notes meet the requirements therefore, use its best efforts to
deliver Additional Notes hereunder electronically through the Depository Trust
Corporation or another established clearing corporation performing similar
functions.

                    (b)     
This Additional Investment Right is exercisable, either in its entirety or, from
time to time, for a portion of the number of Additional Notes and Additional
Investment Right Warrants. Upon surrender of this Additional Investment Right
following one or more partial exercises, the Company shall issue or cause to be
issued, at its expense, a New Additional Investment Right evidencing the right
to purchase the remaining number of Additional Notes and Additional Investment
Right Warrants.

                    (c)     
In addition to any other rights available to a Holder, if the Company fails to
deliver to the Holder a certificate representing Additional Notes and Additional
Investment Right Warrants or the shares of Common Stock issuable upon conversion
of the Additional Notes or the exercise of the Additional Investment Right
Warrants on the date on which delivery of such certificate is required by this
Additional Investment Right, an Additional Note or any Additional Investment
Right Warrant, and if after such date the Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Common Stock that the Holder anticipated receiving
from the Company (a “Buy-In”), then the Company shall, within three
Trading Days after the Holder’s request and in the Holder’s discretion, either
(i) pay cash to the Holder in an amount equal to the Holder’s total purchase
price (including brokerage commissions, if any) for the shares of Common Stock
so purchased (the “Buy-In Price”), at which point the Company’s
obligation to deliver such 

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certificate (and to issue such Common Stock) shall terminate,
or (ii) promptly honor its obligation to deliver to the Holder a certificate or
certificates representing such Common Stock and pay cash to the Holder in an
amount equal to the excess (if any) of the Buy-In Price over the product of (A)
such number of shares of Common Stock, times (B) the Closing Price on the date
of the event giving rise to the Company’s obligation to deliver such
certificate.

                    (d)     
The Company’s obligations to issue and deliver Additional Notes and Additional
Investment Right Warrants in accordance with the terms hereof are absolute and
unconditional, irrespective of any action or inaction by the Holder to enforce
the same, any waiver or consent with respect to any provision hereof, the
recovery of any judgment against any Person or any action to enforce the same,
or any set-off, counterclaim, recoupment, limitation or termination, or any
breach or alleged breach by the Holder or any other Person of any obligation to
the Company or any violation or alleged violation of law by the Holder or any
other Person, and irrespective of any other circumstance which might otherwise
limit such obligation of the Company to the Holder in connection with the
issuance of Additional Notes and Additional Investment Right Warrants. Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver certificates representing Additional Notes upon
exercise of the Additional Investment Right as required pursuant to the terms
hereof.

          6.     
Charges, Taxes and Expenses. Issuance and delivery of certificates for
Additional Notes and Additional Investment Right Warrants upon exercise of this
Additional Investment Right shall be made without charge to the Holder for any
issue or transfer tax, withholding tax, transfer agent fee or other incidental
tax or expense in respect of the issuance of such certificates, all of which
taxes and expenses shall be paid by the Company. The Holder shall be responsible
for all other tax liability that may arise as a result of holding or
transferring this Additional Investment Right or receiving Additional Notes and
Additional Investment Right Warrants upon exercise hereof.

          7.      Replacement
of Additional Investment Right. If this Additional Investment Right is
mutilated, lost, stolen or destroyed, the Company shall issue or cause to be
issued in exchange and substitution for and upon cancellation hereof, or in lieu
of and substitution for this Additional Investment Right, a New Additional
Investment Right, but only upon receipt of evidence reasonably satisfactory to
the Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested. 

          8.      Reservation
of Common Stock. The Company covenants that it will at all times reserve and
keep available out of its authorized but unissued and otherwise unreserved
Common Stock, solely for the purpose of enabling it to issue Common Stock
issuable upon conversion of Additional Notes and Additional Investment Right
Warrants as therein provided. The Company covenants that all Additional Notes
and Additional Investment Right Warrants so issuable and deliverable shall, upon
issuance and the payment of the applicable Exercise Price in accordance with the
terms hereof, be duly and validly authorized, issued and fully paid and
nonassessable. The Company will take all such action as may be necessary to
assure that any shares of Common Stock issuable upon conversion of the
Additional Notes and exercise of the Additional Investment Right Warrants may be
issued as provided therein without violation of any applicable 

4

law or regulation, or of any requirements of any securities
exchange or automated quotation system upon which the Common Stock may be
listed.

          9.      Certain
Adjustments. The Conversion Price and other terms of the Additional Notes
issuable upon exercise of this Additional Investment Right shall be subject to
adjustment from time to time as set forth in the Additional Notes. The exercise
price and other terms of the Additional Investment Right Warrants issuable upon
exercise of this Additional Investment Right shall be subject to adjustment from
time to time as set forth in the Additional Investment Right Warrants. At least
30 days prior to any such event or transaction involving a Fundamental Change
(as defined in the Additional Note) or otherwise potentially giving rise to an
adjustment or modification of the terms and provisions of the Additional Note,
the Company will give the Holder notice thereof of the date of the transaction
and the effect thereof on the terms of the Additional Notes. The Company will
take all steps reasonably necessary in order to insure that the Holder is given
the practical opportunity to exercise this Additional Investment Right prior to
the time of such event or transaction so as to participate in or vote with
respect to such event or transaction.

          10.     
Payment of Exercise Price. The Holder shall pay the Exercise Price in
immediately available funds to the Company in the manner specified by the
Company in the Purchase Agreement.

          11.      Call
Right. Subject to the provisions of this Section 11, if the Closing
Prices for any ten consecutive Trading Days exceeds $4.74 (the "Threshold
Price"), then the Company will have the right, but not obligation (the
“Call Right”), on one Trading Day prior written notice to the Holder, to
redeem any unexercised portion of this Additional Investment Right for which an
Exercise Notice has not yet been delivered (the “Call Amount”). 

                    (a)      To
exercise this Call Right, the Company shall deliver to the Holder an irrevocable
written notice (a "Call Notice"), indicating the Call Amount. The date
that the Company delivers the Call Notice to the Holders will be referred to as
the “Call Date.” Within five Trading Days of receipt of the Call Notice,
the Holder shall exercise this Additional Investment Right for up to the Call
Amount in accordance with Section 4(b) above. Any portion of the Call Amount
that is not exercised by 6:30 p.m. (New York City time) on the fifth Trading Day
following the date of receipt of the Call Notice (the “Redemption Date”)
shall be cancelled. Any unexercised portion of this Additional Investment Right
to which the Call Notice does not pertain (the “Remaining Portion”) will
be unaffected by such Call Notice. The Company covenants and agrees that it will
honor any Exercise Notice with respect to the Call Amount that are tendered from
the Call Date through and including 6:30 p.m. (New York City time) on the
Redemption Date. 

                    (b)     
Notwithstanding anything to the contrary set forth in this Warrant, the Company
may not require the cancellation of any unexercised Call Amount (and any Call
Notice will be void), unless from the beginning of the ten consecutive Trading
Days used to determine whether the Common Stock has achieved the Threshold Price
through the Redemption Date (the “Call Period”) (i) the Closing Prices
for each Trading Day during such Call Period exceeds the Threshold Price and
(ii) the Company shall have honored in accordance with the terms of this 

5

Warrant any Exercise Notice delivered by 6:30 p.m. (New York
City time) on the Redemption Date.

          12.      Notices.
Any and all notices or other communications or deliveries hereunder (including
without limitation any Exercise Notice) shall be in writing and shall be deemed
given and effective on the earliest of (i) the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number
specified in this Section prior to 6:30 p.m. (New York City time) on a Trading
Day, (ii) the next Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
this Section on a day that is not a Trading Day or later than 6:30 p.m. (New
York City time) on any Trading Day, (iii) the Trading Day following the date of
deposit with a nationally recognized overnight courier service, or (iv) upon
actual receipt by the party to whom such notice is required to be given. The
address and facsimile numbers for such notices or communications shall be as set
forth in the Purchase Agreement.

          13.      Miscellaneous.

                    (a)      Subject
to the restrictions on transfer set forth on the first page hereof, this
Additional Investment Right may be assigned by the Holder. This Additional
Investment Right may not be assigned by the Company except to a successor in the
event of a Fundamental Change (as defined in the Additional Note). This
Additional Investment Right shall be binding on and inure to the benefit of the
parties hereto and their respective successors and assigns. Subject to the
preceding sentence, nothing in this Additional Investment Right shall be
construed to give to any Person other than the Company and the Holder any legal
or equitable right, remedy or cause of action under this Additional Investment
Right. This Additional Investment Right may be amended only in writing signed by
the Company and the Holder, their respective successors or permitted
assigns.

                    (b)      The
Company will not, by amendment of its governing documents or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Additional Investment
Right, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder against impairment.

                    (c)     
GOVERNING LAW; VENUE; WAIVER
OF JURY TRIAL. ALL QUESTIONS
CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS
ADDITIONAL INVESTMENT RIGHT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EACH PARTY HEREBY IRREVOCABLY
SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN
THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY
OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE
TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT
IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT
TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS
IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND
CONSENTS TO PROCESS 

6

BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING
A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH
EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT
UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND
SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL
BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED
BY LAW. THE COMPANY HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY.

                    (d)     
The headings herein are for convenience only, do not constitute a part of this
Additional Investment Right and shall not be deemed to limit or affect any of
the provisions hereof.

                    (e)     
In case any one or more of the provisions of this Additional Investment Right
shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Additional
Investment Right shall not in any way be affected or impaired thereby and the
parties will attempt in good faith to agree upon a valid and enforceable
provision which shall be a commercially reasonable substitute therefor, and upon
so agreeing, shall incorporate such substitute provision in this Additional
Investment Right.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK, 
SIGNATURE PAGE
FOLLOWS]

7

          IN
WITNESS WHEREOF, the Company has caused this Additional Investment Right to be
duly executed by its authorized officer as of the date first indicated
above.

AZCO MINING, INC.

By:
______________________________________
Name:
____________________________________
Title:
_____________________________________

8

Annex A

FORM OF EXERCISE NOTICE

(To be executed by the Holder to exercise the right to purchase
$______________principal amount of Additional Notes under the foregoing
Additional Investment Right)

To: Azco Mining, Inc.

The undersigned is the Holder of Additional Investment Right
No. _______(the “Additional Investment Right”) issued by Azco Mining,
Inc., a Delaware corporation (the “Company”). Capitalized terms used
herein and not otherwise defined have the respective meanings set forth in the
Additional Investment Right.

	1. 	
      The Additional Investment Right is currently exercisable
      to purchase a total of $______________principal amount of Additional
      Notes.

	 	 
	2. 	
      The undersigned Holder hereby exercises its right to
      purchase _________________$______________ principal amount of Additional
      Notes pursuant to the Additional Investment Right.

	 	 
	3. 	
      The Holder shall pay the sum of $____________to the
      Company in accordance with the terms of the Additional Investment
      Right.

	 	 
	4. 	
      Pursuant to this exercise, the Company shall deliver to
      the Holder $______________principal amount of Additional Notes and
      Additional Investment Right Warrants exercisable for __________shares of
      Common Stock in accordance with the terms of the Additional Investment
      Right.

	 	 
	5. 	
      Following this exercise, the Additional Investment Right
      shall be exercisable to purchase a total of $______________principal
      amount of Additional Notes and Additional Investment Right Warrants
      exercisable for ____________shares of Common
Stock.

 

 

	Dated: ___________________, ________	Name of Holder: 
	  	  
	  	(Print)
      ___________________________________________
	  	  
	  	By:
      _____________________________________________
	  	Name:
      ___________________________________________
	  	Title:
      ____________________________________________
	  	  
		
      (Signature must conform in all respects to name of holder
      as specified on the face of the Additional Investment Right)
  

Annex B

FORM OF ASSIGNMENT

[To be completed and signed only upon transfer of Additional
Investment Right]

          FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
________________________________ the right represented by the within Additional
Investment Right to purchase $______________principal amount of Additional Notes
and Additional Investment Right Warrants exercisable for __________ shares of
Common Stock of Azco Mining, Inc. to which the within Additional Investment
Right relates and appoints ________________ attorney to transfer said right on
the books of Azco Mining, Inc. with full power of substitution in the
premises.

Dated: _________________, _________

______________________________________________
(Signature must
conform in all respects to name of holder as specified on the face of the
Additional Investment Right)

______________________________________________
Address of
Transferee

______________________________________________

______________________________________________

 

In the presence of:

______________________________________________Filed by Automated Filing Services Inc. (604) 609-0244 - Azco Mining Inc. - Exibit 4.4

Execution Version

EXHIBIT B

NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE
SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THESE SECURITIES AND THE
SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

AZCO MINING, INC.

WARRANT1

	Warrant No. [    ] 	Dated: September__, 2006 

     Azco Mining, Inc., a Delaware
corporation (the “Company”), hereby certifies that, for value received,
[Name of Holder] or its registered assigns (the “Holder”), is entitled to
purchase from the Company up to a total of [ ]2 shares of common
stock, $0.002 par value per share (the “Common Stock”), of the Company
(each such share, a “Warrant Share” and all such shares, the “Warrant
Shares”) at an exercise price equal to $1.00 per share (as adjusted from
time to time as provided in Section 9, the “Exercise Price”), at
any time and from time to time from and after the date hereof and through and
including the date that is five years from the date of issuance hereof (the
“Expiration Date”), and subject to the following terms and conditions.
This Warrant (this “Warrant”) is one of a series of similar Warrants
issued pursuant to that certain Securities Purchase Agreement, dated as of March
20, 2006, by and among the Company and the Purchasers identified therein (the
“Purchase Agreement”) and Amendment No. 1 to Senior Secured Convertible
Notes, Warrants and Security Agreement dated as of September 6, 2006 by and
among the Company and the Purchasers identified therein (the “Amendment”). All
such Warrants are referred to herein, collectively, as the
“Warrants.”

_________________________
1 Initial Warrant and
Additional Investment Right Warrant will be the same form. 
2 50%
warrant coverage.

          1.     
Definitions. In addition to the terms defined elsewhere in this Warrant,
capitalized terms that are not otherwise defined herein have the meanings given
to such terms in the Purchase Agreement.

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

          3.      Registration
of Transfers. The Company shall register the transfer of any portion of this
Warrant in the Warrant Register, upon surrender of this Warrant, with the Form
of Assignment attached hereto duly completed and signed, to the Transfer Agent
or to the Company at its address specified herein. Upon any such registration or
transfer, a new warrant to purchase Common Stock, in substantially the form of
this Warrant (any such new warrant, a “New Warrant”), evidencing the
portion of this Warrant so transferred shall be issued to the transferee and a
New Warrant evidencing the remaining portion of this Warrant not so transferred,
if any, shall be issued to the transferring Holder. The acceptance of the New
Warrant by the transferee thereof shall be deemed the acceptance by such
transferee of all of the rights and obligations of a holder of a Warrant.

          4.     
Exercise and Duration of Warrants.

                         (a)     
This Warrant shall be exercisable by the registered Holder at any time and from
time to time on or after the date hereof to and including the Expiration Date.
At 6:30 P.M., New York City time on the Expiration Date, the portion of this
Warrant not exercised prior thereto shall be and become void and of no value;
provided that, if the average of the Closing Prices for the five Trading Days
immediately prior to (but not including) the Expiration Date exceeds the
Exercise Price on the Expiration Date, then this Warrant shall be deemed to have
been exercised in full (to the extent not previously exercised) on a “cashless
exercise” basis at 6:30 P.M. New York City time on the Expiration Date if a
“cashless exercise” may occur at such time pursuant to Section 10 below.
Notwithstanding anything to the contrary herein, the Expiration Date shall be
extended for each day following them First Effective Date that the First
Registration Statement is not effective. 

                         (b)      A
Holder may exercise this Warrant by delivering to the Company (i) an exercise
notice, in the form attached hereto (the “Exercise Notice”),
appropriately completed and duly signed, and (ii) payment of the Exercise Price
for the number of Warrant Shares as to which this Warrant is being exercised
(which may take the form of a “cashless exercise” if so indicated in the
Exercise Notice and if a “cashless exercise” may occur at such time pursuant to
this Section 10 below), and the date such items are delivered to the Company (as
determined in accordance with the notice provisions hereof) is an “Exercise
Date.” The Holder shall not be required to deliver the original Warrant in
order to effect an exercise hereunder. Execution and delivery of the Exercise
Notice shall have the same effect as cancellation of the original Warrant and
issuance of a New Warrant evidencing the right to purchase the remaining number
of Warrant Shares.

2

          5.      Delivery
of Warrant Shares.

                         (a)     
Upon exercise of this Warrant, the Company shall promptly (but in no event later
than three Trading Days after the Exercise Date) issue or cause to be issued and
cause to be delivered to or upon the written order of the Holder and in such
name or names as the Holder may designate, a certificate for the Warrant Shares
issuable upon such exercise, free of restrictive legends unless a registration
statement covering the resale of the Warrant Shares and naming the Holder as a
selling stockholder thereunder is not then effective and the Warrant Shares are
not freely transferable without volume restrictions pursuant to Rule 144 under
the Securities Act. The Holder, or any Person so designated by the Holder to
receive Warrant Shares, shall be deemed to have become holder of record of such
Warrant Shares as of the Exercise Date. The Company shall, upon request of the
Holder, use its best efforts to deliver Warrant Shares hereunder electronically
through the Depository Trust Corporation or another established clearing
corporation performing similar functions.

                         (b)     
This Warrant is exercisable, either in its entirety or, from time to time, for a
portion of the number of Warrant Shares. Upon surrender of this Warrant
following one or more partial exercises, the Company shall issue or cause to be
issued, at its expense, a New Warrant evidencing the right to purchase the
remaining number of Warrant Shares.

                         (c)     
In addition to any other rights available to a Holder, if the Company fails to
deliver to the Holder a certificate representing Warrant Shares by the third
Trading Day after the date on which delivery of such certificate is required by
this Warrant, and if after such third Trading Day the Holder purchases (in an
open market transaction or otherwise) shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares that the Holder
anticipated receiving from the Company (a “Buy-In”), then the Company
shall, within three Trading Days after the Holder’s request and in the Holder’s
discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased (the “Buy-In Price”), at which point the
Company’s obligation to deliver such certificate (and to issue such Common
Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the
Holder a certificate or certificates representing such Common Stock and pay cash
to the Holder in an amount equal to the excess (if any) of the Buy-In Price over
the product of (A) such number of shares of Common Stock, times (B) the Closing
Price on the date of the event giving rise to the Company’s obligation to
deliver such certificate.

                         (d)     
The Company’s obligations to issue and deliver Warrant Shares in accordance with
the terms hereof are absolute and unconditional, irrespective of any action or
inaction by the Holder to enforce the same, any waiver or consent with respect
to any provision hereof, the recovery of any judgment against any Person or any
action to enforce the same, or any setoff, counterclaim, recoupment, limitation
or termination, or any breach or alleged breach by the Holder or any other
Person of any obligation to the Company or any violation or alleged violation of
law by the Holder or any other Person, and irrespective of any other
circumstance which might otherwise limit such obligation of the Company to the
Holder in connection with the issuance of Warrant Shares. Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to
timely 

3

deliver certificates representing shares of Common Stock upon
exercise of the Warrant as required pursuant to the terms hereof.

          6.     
Charges, Taxes and Expenses. Issuance and delivery of certificates for
shares of Common Stock upon exercise of this Warrant shall be made without
charge to the Holder for any issue or transfer tax, withholding tax, transfer
agent fee or other incidental tax or expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the Company;
provided, however, that the Company shall not be required to pay any tax which
may be payable in respect of any transfer involved in the registration of any
certificates for Warrant Shares or Warrants in a name other than that of the
Holder or an Affiliate thereof. The Holder shall be responsible for all other
tax liability that may arise as a result of holding or transferring this Warrant
or receiving Warrant Shares upon exercise hereof.

          7.     
Replacement of Warrant. If this Warrant is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary and
reasonable indemnity, if requested. Applicants for a New Warrant under such
circumstances shall also comply with such other reasonable regulations and
procedures and pay such other reasonable third-party costs as the Company may
prescribe.

          8.      Reservation
of Warrant Shares. The Company covenants that it will at all times reserve
and keep available out of the aggregate of its authorized but unissued and
otherwise unreserved Common Stock, solely for the purpose of enabling it to
issue Warrant Shares upon exercise of this Warrant as herein provided, the
number of Warrant Shares which are then issuable and deliverable upon the
exercise of this entire Warrant, free from preemptive rights or any other
contingent purchase rights of persons other than the Holder (taking into account
the adjustments and restrictions of Section 9). The Company covenants
that all Warrant Shares so issuable and deliverable shall, upon issuance and the
payment of the applicable Exercise Price in accordance with the terms hereof, be
duly and validly authorized, issued and fully paid and nonassessable. The
Company will take all such action as may be 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 securities exchange
or automated quotation system upon which the Common Stock may be listed.

          9.     
Certain Adjustments. The Exercise Price and number of Warrant Shares
issuable upon exercise of this Warrant are subject to adjustment from time to
time as set forth in this Section 9.

                         (a)     
Stock Dividends and Splits. If the Company, at any time while this
Warrant is outstanding, (i) pays a stock dividend on its Common Stock or
otherwise makes a distribution on any class of capital stock that is payable in
shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into
a larger number of shares, or (iii) combines outstanding shares of Common Stock
into a smaller number of shares, then in each such case the Exercise Price shall
be multiplied by a fraction of which the numerator shall be the number of shares
of Common Stock outstanding immediately before such event and of which the
denominator shall be the number of shares of Common Stock outstanding
immediately after such 

4

event. Any adjustment made pursuant to clause (i) of this
paragraph shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution,
and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall
become effective immediately after the effective date of such subdivision or
combination.

                         (b)     
Pro Rata Distributions. If the Company, at any time while this Warrant is
outstanding, distributes to holders of Common Stock (i) evidences of its
indebtedness, (ii) any security (other than a distribution of Common Stock
covered by the preceding paragraph), (iii) rights or warrants to subscribe for
or purchase any security, or (iv) any other asset (in each case, “Distributed
Property”), then in each such case the Exercise Price in effect immediately
prior to the record date fixed for determination of stockholders entitled to
receive such distribution shall be adjusted (effective on such record date) to
equal the product of such Exercise Price times a fraction of which the
denominator shall be the average of the Closing Prices for the five Trading Days
immediately prior to (but not including) such record date and of which the
numerator shall be such average less the then fair market value of the
Distributed Property distributed in respect of one outstanding share of Common
Stock, as determined by the Company's independent certified public accountants
that regularly examine the financial statements of the Company, (an
“Appraiser”). In such event, the Holder, after receipt of the
determination by the Appraiser, shall have the right to select an additional
appraiser (which shall be a nationally recognized accounting firm), in which
case such fair market value shall be deemed to equal the average of the values
determined by each of the Appraiser and such appraiser. As an alternative to the
foregoing adjustment to the Exercise Price, at the request of the Holder
delivered before the 90th day after such record date, the Company will deliver
to such Holder, within five Trading Days after such request (or, if later, on
the effective date of such distribution), the Distributed Property that such
Holder would have been entitled to receive in respect of the Warrant Shares for
which this Warrant could have been exercised immediately prior to such record
date. If such Distributed Property is not delivered to a Holder pursuant to the
preceding sentence, then upon expiration of or any exercise of the Warrant that
occurs after such record date, such Holder shall remain entitled to receive, in
addition to the Warrant Shares otherwise issuable upon such exercise (if
applicable), such Distributed Property.

                         (c)     
Fundamental Transactions. If, at any time while this Warrant is
outstanding, (i) the Company effects any merger or consolidation of the Company
with or into another Person, (ii) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions,
(iii) any tender offer or exchange offer (whether by the Company or another
Person) is completed pursuant to which holders of Common Stock are permitted to
tender or exchange their shares for other securities, cash or property, or (iv)
the Company effects any reclassification of the Common Stock or any compulsory
share exchange pursuant to which the Common Stock is effectively converted into
or exchanged for other securities, cash or property (other than as a result of a
subdivision or combination of shares of Common Stock covered by Section 9(a)
above) (in any such case, a “Fundamental Transaction”), then the Holder
shall have the right thereafter to receive, upon exercise of this Warrant, the
same amount and kind of securities, cash or property as it would have been
entitled to receive upon the occurrence of such Fundamental Transaction if it
had been, immediately prior to such Fundamental Transaction, the holder of the
number of Warrant Shares then issuable upon exercise in full of this Warrant
(the “Alternate Consideration”). The aggregate Exercise Price for this
Warrant will not be affected by any such Fundamental Transaction, but the
Company 

5

shall apportion such aggregate Exercise Price among the
Alternate Consideration in a reasonable manner reflecting the relative value of
any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as
to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction. In the event of a Fundamental
Transaction, the Company or the successor or purchasing Person, as the case may
be, shall execute with the Holder a written agreement providing that:

          (x)     
this Warrant shall thereafter entitle the Holder to purchase the Alternate
Consideration in accordance with this section 9(c), 

          (y)     
in the case of any such successor or purchasing Person, upon such consolidation,
merger, statutory exchange, combination, sale or conveyance such successor or
purchasing Person shall be jointly and severally liable with the Company for the
performance of all of the Company's obligations under this Warrant and the
Purchase Agreement, and 

          (z)     
if registration or qualification is required under the Exchange Act or
applicable state law for the public resale by the Holder of shares of stock and
other securities so issuable upon exercise of this Warrant, such registration or
qualification shall be completed prior to such reclassification, change,
consolidation, merger, statutory exchange, combination or sale.

If, in the case of any Fundamental Transaction, the Alternate
Consideration includes shares of stock, other securities, other property or
assets of a Person other than the Company or any such successor or purchasing
Person, as the case may be, in such Fundamental Transaction, then such written
agreement shall also be executed by such other Person and shall contain such
additional provisions to protect the interests of the Holder as the Board of
Directors of the Company shall reasonably consider necessary by reason of the
foregoing. At the Holder’s request, any successor to the Company or surviving
entity in such Fundamental Transaction shall issue to the Holder a new warrant
consistent with the foregoing provisions and evidencing the Holder’s right to
purchase the Alternate Consideration for the aggregate Exercise Price upon
exercise thereof. The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such successor or
surviving entity to comply with the provisions of this paragraph (c) and
insuring that the Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental Transaction.
If any Fundamental Transaction constitutes or results in a Change of Control,
then at the request of the Holder delivered before the 90th day after such
Fundamental Transaction, the Company (or any such successor or surviving entity)
will purchase the Warrant from the Holder for a purchase price, payable in cash
within five Trading Days after such request (or, if later, on the effective date
of the Fundamental Transaction), equal to the Black-Scholes value of the
remaining unexercised portion of this Warrant on the date of such request.

                         (d)     
Subsequent Equity Sales.

6

                         (i)      If,
at any time while this Warrant is outstanding, the Company or any Subsidiary
issues additional shares of Common Stock or rights, warrants, options or other
securities or debt convertible, exercisable or exchangeable for shares of Common
Stock or otherwise entitling any Person to acquire shares of Common Stock
(collectively, “Common Stock Equivalents”) at an effective net price to
the Company per share of Common Stock (the “Effective Price”) less than
the Exercise Price (as adjusted hereunder to such date), then the Exercise Price
shall be reduced to equal the Effective Price. If, at any time while this Note
is outstanding, the Company or any Subsidiary issues Common Stock or Common
Stock Equivalents at an Effective Price greater than the Conversion Price (as
adjusted hereunder to such date) but less than the average Closing Price over
the five Trading Days prior to such issuance (the “Adjustment Price”),
then the Conversion Price shall be reduced to equal the product of (A) the
Conversion Price in effect immediately prior to such issuance of Common Stock or
Common Stock Equivalents times (B) a fraction, the numerator of which is the sum
of (1) the number of shares of Common Stock outstanding immediately prior to
such issuance, plus (2) the number of shares of Common Stock which the aggregate
Effective Price of the Common Stock issued (or deemed to be issued) would
purchase at the Adjustment Price, and the denominator of which is the aggregate
number of shares of Common Stock outstanding or deemed to be outstanding
immediately after such issuance. For purposes of this paragraph, in connection
with any issuance of any Common Stock Equivalents, (A) the maximum number of
shares of Common Stock potentially issuable at any time upon conversion,
exercise or exchange of such Common Stock Equivalents (the “Deemed
Number”) shall be deemed to be outstanding upon issuance of such Common
Stock Equivalents, (B) the Effective Price applicable to such Common Stock shall
equal the minimum dollar value of consideration payable to the Company to
purchase such Common Stock Equivalents and to convert, exercise or exchange them
into Common Stock (net of any discounts, fees, commissions and other expenses),
divided by the Deemed Number, and (C) no further adjustment shall be made to the
Exercise Price upon the actual issuance of Common Stock upon conversion,
exercise or exchange of such Common Stock Equivalents.

                         (ii)      If,
at any time while this Warrant is outstanding, the Company or any Subsidiary
issues Common Stock Equivalents with an Effective Price or a number of
underlying shares that floats or resets or otherwise varies or is subject to
adjustment based (directly or indirectly) on market prices of the Common Stock
(a “Floating Price Security”), then for purposes of applying the
preceding paragraph in connection with any subsequent exercise, the Effective
Price will be determined separately on each Exercise Date and will be deemed to
equal the lowest Effective Price at which any holder of such Floating Price
Security is entitled to acquire Common Stock on such Exercise Date (regardless
of whether any such holder actually acquires any shares on such date).

                         (iii)     
Notwithstanding the foregoing, no adjustment will be made under this paragraph
(d) in respect of any Excluded Stock.

                         (e)      Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price
pursuant to paragraphs (a), (b) or (d) of this Section, the number of Warrant
Shares that may be purchased upon exercise of this Warrant shall be increased or
decreased 

7

proportionately, so that after such adjustment the aggregate
Exercise Price payable hereunder for the increased or decreased number of
Warrant Shares shall be the same as the aggregate Exercise Price in effect
immediately prior to such adjustment.

                         (f)     
Calculations. All calculations under this Section 9 shall be made
to the nearest cent or the nearest 1/100th of a share, as applicable. The number
of shares of Common Stock outstanding at any given time shall not include shares
owned or held by or for the account of the Company, and the disposition of any
such shares shall be considered an issue or sale of Common Stock.

                         (g)      Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this
Section 9, the Company at its expense will promptly compute such
adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment, including a statement of the adjusted
Exercise Price and adjusted number or type of Warrant Shares or other securities
issuable upon exercise of this Warrant (as applicable), describing the
transactions giving rise to such adjustments and showing in detail the facts
upon which such adjustment is based. Upon written request, the Company will
promptly deliver a copy of each such certificate to the Holder and to the
Company’s Transfer Agent.

                         (h)     
Notice of Corporate Events. If the Company (i) declares a dividend or any
other distribution of cash, securities or other property in respect of its
Common Stock, including without limitation any granting of rights or warrants to
subscribe for or purchase any capital stock of the Company or any Subsidiary,
(ii) authorizes or approves, enters into any agreement contemplating or solicits
stockholder approval for any Fundamental Transaction or (iii) authorizes the
voluntary dissolution, liquidation or winding up of the affairs of the Company,
then the Company shall deliver to the Holder a notice describing the material
terms and conditions of such transaction, at least 20 calendar days prior to the
applicable record or effective date on which a Person would need to hold Common
Stock in order to participate in or vote with respect to such transaction, and
the Company will take all steps reasonably necessary in order to insure that the
Holder is given the practical opportunity to exercise this Warrant prior to such
time so as to participate in or vote with respect to such transaction; provided,
however, that the failure to deliver such notice or any defect therein shall not
affect the validity of the corporate action required to be described in such
notice. 

          10.     
Payment of Exercise Price. The Holder shall pay the Exercise Price in
immediately available funds; provided, however, that if the
Registration Statement did not become effective on or before the Required
Effectiveness Date and is not continuously effective through the Expiration
Date, the Holder may satisfy its obligation to pay the Exercise Price through a
“cashless exercise,” in which event the Company shall issue to the Holder the
number of Warrant Shares determined as follows:

		X = Y [(A-B)/A] 
	where: 	 
		X = the number of Warrant Shares to be issued
      to the Holder. 
	  	  
		
      Y = the number of Warrant Shares with respect to which
      this Warrant is being exercised. 

8

A = the average of the Closing Prices
for the five Trading Days immediately prior to (but not including) the Exercise
Date.

B = the Exercise Price.

                              For
purposes of Rule 144 promulgated under the Securities Act, it is intended,
understood 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 shall be deemed to have commenced, on
the date this Warrant was originally issued pursuant to the Purchase
Agreement.

          11.     
Limitation on Exercise. (a) Notwithstanding anything to the contrary
contained herein, the number of shares of Common Stock that may be acquired by
the Holder upon any exercise of this Warrant (or otherwise in respect hereof)
shall be limited to the extent necessary to insure that, following such exercise
(or other issuance), the total number of shares of Common Stock then
beneficially owned by such Holder and its Affiliates and any other Persons whose
beneficial ownership of Common Stock would be aggregated with the Holder’s for
purposes of Section 13(d) of the Exchange Act, does not exceed 4.99% (the
“Maximum Percentage”) of the total number of issued and outstanding
shares of Common Stock (including for such purpose the shares of Common Stock
issuable upon such exercise). For such purposes, beneficial ownership shall be
determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. Each delivery of an Exercise Notice
hereunder will constitute a representation by the Holder that it has evaluated
the limitation set forth in this paragraph and determined that issuance of the
full number of Warrant Shares requested in such Exercise Notice is permitted
under this paragraph. The Company’s obligation to issue shares of Common Stock
in excess of the limitation referred to in this Section shall be suspended (and
shall not terminate or expire notwithstanding any contrary provisions hereof)
until such time, if any, as such shares of Common Stock may be issued in
compliance with such limitation. The Holder shall have the right at any time and
from time to time, to waive the provisions of this Section and to increase the
Maximum Percentage (but not in excess of 9.9%) unless the Holder shall have, by
written instrument delivered to the Company, irrevocably waived its rights to so
increase its Maximum Percentage, but (i) any such waiver or increase will not be
effective until the 61st day after such notice is delivered to the Company, and
(ii) any such waiver or increase will apply only to the Holder and not to any
other holder of Warrants.

                         (b)     
If the Company is listed on an Eligible Market and for so long as the Company is
listed on such Eligible Market, if the Company has not previously obtained
Shareholder Approval (as defined below), then the Company may not issue in
excess of the Issuable Maximum upon exercise of the Warrants. The "Issuable
Maximum" means a number of shares equal to 19.99% of the of the Company's
outstanding shares on the Closing Date. Each Holder shall be entitled to a
portion of the Issuable Maximum equal to the quotient obtained by dividing: (x)
the principal amount of Notes issued and sold to such Holder on the Original
Issue Date by (y) the aggregate principal amount of Notes issued and sold by the

9

Company on the Original Issue Date. If any Holder shall no
longer hold Notes, then such Holder's remaining portion of the Issuable Maximum
shall be allocated pro-rata among the remaining Holders. If on any Conversion
Date: (A) the aggregate number of shares of Common Stock that would then be
issuable upon exercise in full of all then outstanding Warrants would exceed the
Issuable Maximum, and (B) the Company shall not have previously obtained the
vote of shareholders, as may be required by the applicable rules and regulations
of its Trading Market (or any successor entity) applicable to approve the
issuance of shares of Common Stock in excess of the Issuable Maximum pursuant to
the terms hereof (the "Shareholder Approval"), then, the Company shall
issue to the converting Holder a number of shares of Common Stock equal to such
Holder's pro-rata portion (which shall be calculated pursuant to the terms
hereof) of the Issuable Maximum and, with respect to the remainder of the
Warrants then held by such Holder for which an exercise would result in an
issuance of shares of Common Stock in excess of such Holder's pro-rata portion
(which shall be calculated pursuant to the terms hereof) of the Issuable Maximum
(the "Excess Warrant Shares"), the applicable Holder shall have the right
to require the Company to either: (1) obtain the Shareholder Approval applicable
to such issuance as soon as is possible, but in any event not later than the
60th day after such request, or (2) pay cash, in an amount equal to the Excess
Warrant Shares (and accrued and unpaid interest thereon). If a Holder shall have
elected the first option pursuant to the immediately preceding sentence and the
Company shall have failed to obtain the Shareholder Approval on or prior to the
60th day after such request, then within three (3) days of such 90th day, the
Company shall pay cash to such Holder an amount equal to Excess Principal Amount
(and accrued and unpaid interest thereon). Notwithstanding anything herein to
the contrary, if on any date other than a Conversion Date: (A) the aggregate
number of shares of Common Stock that would then be issuable upon conversion in
full of all then outstanding principal amount of Notes would exceed the Issuable
Maximum, and (B) the Company shall not have previously obtained the Shareholder
Approval, then, the Holder shall be entitled to require the Company to pay to it
in cash an amount equal to the equal to the Black-Scholes value of the remaining
unexercised portion of this Warrant on the date of such request. The remaining
unexercised portion of this Warrant shall be reduced by the Excess Warrant
Shares upon the Holder’s receipt of the Excess Warrant Shares pursuant to the
terms hereof. The Company and the Holder understand and agree that shares of
Common Stock issued to and then held by the Holder as a result of exercises of
Warrants shall not be entitled to cast votes on any resolution to obtain
Shareholder Approval pursuant hereto.

          12.     
Fractional Shares. The Company shall not be required to issue or cause to
be issued fractional Warrant Shares on the exercise of this Warrant. If any
fraction of a Warrant Share would, except for the provisions of this Section, be
issuable upon exercise of this Warrant, the number of Warrant Shares to be
issued will be rounded up to the nearest whole share.

          13.      Notices.
Any and all notices or other communications or deliveries hereunder (including
without limitation any Exercise Notice) shall be in writing and shall be deemed
given and effective on the earliest of (i) the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number
specified in this Section prior to 6:30 p.m. (New York City time) on a Trading
Day, (ii) the next Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
this Section on a day that is not a Trading Day or later than 6:30 p.m. (New
York City time) on any Trading Day, (iii) the Trading Day following the date of
mailing, if sent by nationally recognized 

10

overnight courier service, or (iv) upon actual receipt by the
party to whom such notice is required to be given. The address for such notices
or communications shall be as set forth in the Purchase Agreement.

          14.      Warrant
Agent. The Company shall serve as warrant agent under this Warrant. Upon 30
days' notice to the Holder, the Company may appoint a new warrant agent. Any
corporation into which the Company or any new warrant agent may be merged or any
corporation resulting from any consolidation to which the Company or any new
warrant agent shall be a party or any corporation to which the Company or any
new warrant agent transfers substantially all of its corporate trust or
stockholders services business shall be a successor warrant agent under this
Warrant without any further act. Any such successor warrant agent shall promptly
cause notice of its succession as warrant agent to be mailed (by first class
mail, postage prepaid) to the Holder at the Holder's last address as shown on
the Warrant Register.

          15.      Miscellaneous.

                         (a)     
Subject to the restrictions on transfer set forth on the first page hereof, this
Warrant may be assigned by the Holder. This Warrant may not be assigned by the
Company except to a successor in the event of a Fundamental Transaction. This
Warrant shall be binding on and inure to the benefit of the parties hereto and
their respective successors and assigns. Subject to the preceding sentence,
nothing in this Warrant shall be construed to give to any Person other than the
Company and the Holder any legal or equitable right, remedy or cause of action
under this Warrant. This Warrant may be amended only in writing signed by the
Company and the Holder and their successors and assigns.

                         (b)      The
Company will not, by amendment of its governing documents or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of the Holder against impairment. Without limiting the generality of
the foregoing, the Company (i) will not increase the par value of any Warrant
Shares above the amount payable therefor on such exercise, (ii) will take all
such action as may be reasonably necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable Warrant
Shares on the exercise of this Warrant, and (iii) will not close its stockholder
books or records in any manner which interferes with the timely exercise of this
Warrant.

                         (c)      GOVERNING
LAW; VENUE; WAIVER OF
JURY TRIAL. ALL QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF
MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN
(INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS),
AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT,

11

ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY
SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR
PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF
PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR
PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR
OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN
EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL
CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING
CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS
IN ANY MANNER PERMITTED BY LAW. THE COMPANY HEREBY WAIVES ALL RIGHTS TO A TRIAL
BY JURY.

                         (d)     
The headings herein are for convenience only, do not constitute a part of this
Warrant and shall not be deemed to limit or affect any of the provisions
hereof.

                         (e)     
In case any one or more of the provisions of this Warrant shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining
terms and provisions of this Warrant shall not in any way be affected or
impaired thereby and the parties will attempt in good faith to agree upon a
valid and enforceable provision which shall be a commercially reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Warrant.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK, 
SIGNATURE PAGE
FOLLOWS]

12

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

AZCO MINING, INC.

By:
______________________________________
Name:
____________________________________
Title:
_____________________________________

13

FORM OF EXERCISE NOTICE

(To be executed by the Holder to exercise the right to purchase
shares of Common Stock under the foregoing Warrant)

To: AZCO MINING, INC.

The undersigned is the Holder of Warrant No. _______ (the
“Warrant”) issued by Azco Mining, Inc., a Delaware corporation (the
“Company”). Capitalized terms used herein and not otherwise defined have
the respective meanings set forth in the Warrant.

	1. 	
      The Warrant is currently exercisable to purchase a total
        of ____________________ Warrant Shares. 

	  	
	2. 	
      The undersigned Holder hereby exercises its right to purchase
        ___________________ Warrant Shares pursuant to the Warrant. 

	  	
	3. 	
      The Holder intends that payment of the Exercise Price
      shall be made as (check one): 

	 	
       

	  	
                                                                                     _____ 
      “Cash Exercise” under Section 10 

	 	
       

	  	
                     
                         
                         
                         
         _____  “Cashless Exercise” under Section 10 (if
      permitted) 

	 	
       

	4. 	
      If the holder has elected a Cash Exercise, the holder
      shall pay the sum of $____________ to the Company in accordance with
      the terms of the Warrant. 

	  	
	5. 	
      Pursuant to this exercise, the Company shall deliver to
      the holder Warrant Shares in accordance with the terms of the Warrant.
    

	  	
	6. 	
      Following this exercise, the Warrant shall be exercisable
        to purchase a total of _____________________ Warrant Shares. 

	Dated: _______________ , ________	Name of Holder: 
	  	  
	  	(Print)
      _________________________________________
	  	  
	  	By:
    ___________________________________________
	  	Name:
    _________________________________________
	  	Title:
      __________________________________________
	  	  
		
      (Signature must conform in all respects to name of holder
      as specified on the face of the Warrant) 

FORM OF ASSIGNMENT

          [To
be completed and signed only upon transfer of Warrant]

          FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
________________________________ the right represented by the within Warrant to
purchase ____________ shares of Common Stock of Azco Mining, Inc. to which the
within Warrant relates and appoints ________________ attorney to transfer said
right on the books of Azco Mining, Inc. with full power of substitution in the
premises.

Dated: ___________________, ________ 

_______________________________________________________
(Signature
must conform in all respects to name of holder as specified on the face of the
Warrant)

_______________________________________________________
Address
of Transferee

_______________________________________________________

_______________________________________________________

In the presence of:

_______________________________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]