Document:

Exhibit
10.2

     

    PROMISSORY
NOTE

     

    
      
        	 
      	
                June
      30, 2009

              

      

    

     

    FOR VALUE
RECEIVED, COMPOSITE TECHNOLOGY CORPORATION, a Delaware corporation (the “Maker”), by means of
this Promissory Note (this “Note”), hereby
unconditionally promises to pay to the order of NORTHLIGHT FINANCIAL LLC
(the “Payee”) the principal
amount of $5,000,000, in lawful money of the United States of America and in
immediately available funds, on the dates provided in the Loan Agreement
(defined below).

     

    This Note
is a “Note” referred to in the Loan Agreement dated as of June 30, 2009 among
the Maker, the Payee and the other parties thereto (as modified and supplemented
and in effect from time to time, the “Loan Agreement”),
with respect to the Loan made by the Payee thereunder.  Capitalized
terms used herein and not expressly defined in this Note shall have the
respective meanings assigned to them in the Loan Agreement.

     

    This Note
shall bear interest on the outstanding principal amount hereof, at the rates and
pursuant to the provisions set forth in the Loan Agreement.

     

    The Maker
shall make all payments to the Payee of interest and principal under this Note
in the manner provided in and otherwise in accordance with the Loan
Agreement.  The outstanding principal amount of this Note shall be due
and payable in full on the Final Payment Date.

     

    If
default is made in the punctual payment of principal or any other amount under
this Note in accordance with the Loan Agreement, or if any other Event of
Default (other than a DeWind Default) has occurred, this Note shall, at the
Payee’s option exercised at any time upon or after the occurrence of any such
payment default or other Event of Default and in accordance with the applicable
provisions of the Loan Agreement, become immediately due and
payable.

     

    All
payments of any kind due to the Payee from the Maker pursuant to this Note shall
be made in the full face amount thereof.  All such payments will be
free and clear of, and without deduction or withholding for, any present or
future taxes.  The Maker shall pay all and any costs (administrative
or otherwise) imposed by banks, clearing houses, or any other financial
institution, in connection with making any payments hereunder, except for any
costs imposed by the Payee’s banking institutions.

     

    The Maker
shall pay all costs of collection, including, without limitation, all
reasonable, documented legal expenses and attorneys’ fees, paid or incurred by
the Payee in collecting and enforcing this Note.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The Maker
and every endorser of this Note, or the obligations represented hereby,
expressly waives presentment, protest, demand, notice of dishonor or default,
and notice of any kind with respect to this Note and the Loan Agreement or the
performance of the obligations under this Note and/or the Loan
Agreement.  No renewal or extension of this Note or the Loan
Agreement, no release of any Person primarily or secondarily liable on this Note
or the Loan Agreement, including the Maker and any endorser, no delay in the
enforcement of payment of this Note or the Loan Agreement, and no delay or
omission in exercising any right or power under this Note or the Loan Agreement
shall affect the liability of the Maker or any endorser of this
Note.

     

    No delay
or omission by the Payee in exercising any power or right hereunder shall impair
such right or power or be construed to be a waiver of any default, nor shall any
single or partial exercise of any power or right hereunder preclude the full
exercise thereof or the exercise of any other power or right.  The
provisions of this Note may be waived or amended only in a writing signed by the
Maker and the Payee.  This Note may be prepaid in whole or in part
without premium or penalty.

     

    THIS
NOTE, AND ANY RIGHTS OF THE PAYEE ARISING OUT OF OR RELATING TO THIS NOTE, MAY,
AT THE OPTION OF THE PAYEE, BE ENFORCED BY THE PAYEE IN THE COURTS OF THE UNITED
STATES OF AMERICA LOCATED IN THE SOUTHERN DISTRICT OF THE STATE OF NEW YORK OR
IN ANY OTHER COURTS HAVING JURISDICTION.  FOR THE BENEFIT OF THE
PAYEE, THE MAKER HEREBY IRREVOCABLY AGREES THAT ANY LEGAL ACTION, SUIT OR OTHER
PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND HEREBY CONSENTS THAT PERSONAL SERVICE OF SUMMONS OR
OTHER LEGAL PROCESS MAY BE MADE AS SET FORTH IN SECTION 6.1 OF THE LOAN
AGREEMENT, WHICH SERVICE THE MAKER AGREES SHALL BE SUFFICIENT AND
VALID.  THE MAKER HEREBY WAIVES ANY AND ALL RIGHTS TO DEMAND A TRIAL
BY JURY IN ANY ACTION, SUIT OR OTHER PROCEEDING ARISING OUT OF OR RELATING TO
THIS NOTE OR THE TRANSACTIONS CONTEMPLATED BY THIS NOTE.

     

    This Note
shall be governed by, and construed in accordance with, the laws of the State of
New York applicable to contracts made and to be performed in such State, without
giving effect to the conflicts of laws principles thereof other than Sections
5-1401 and 5-1402 of the General Obligations Law of the State of New
York.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Whenever
this Note is held by a noteholder that is not a “United States person” within
the meaning of Section 7701(a)(30) of the Internal Revenue Code of 1986, as
amended (the “Code”), then it is the intention of the Maker and such noteholder
that (x) all interest accrued and paid on this Note will qualify for exemption
from United States withholding tax as “portfolio interest” because this Note is
an obligation which is in “registered form” within the meaning of
Sections 871(h)(2)(B) and 881(c)(2)(B) of the Code and the applicable
Treasury Regulations promulgated thereunder, and (y) as such, all interest
accrued and paid on this Note will be exempt from United States information
reporting under Sections 6041 and 6049 of the Code and United States backup
withholding under Section 3406 of the Code.  The Maker and the Payee
shall cooperate with one another, and execute and file such forms or other
documents, or do or refrain from doing such other acts, as may be required, to
secure such exemptions from United States withholding tax, information
reporting, and backup withholding.  In furtherance of the foregoing,
any transferee or assignee noteholder that is not a United States person shall
represent, warrant and covenant to the Maker that (i) such noteholder is not,
and will not be as long as any amounts due under this Note have not been paid in
full, a “United States person,” within the meaning of Section 7701(a)(30) of the
Code; (ii) such noteholder is not, and will not be as long as any amounts due
under this Note have not been paid in full, a person described in
Section 881(c)(3) of the Code; (iii) on or prior to the date of transfer or
assignment (and on or prior to the date the form provided pursuant to this
clause (iii) is no longer valid) until all amounts due under this Note have been
paid in full, such noteholder shall provide the Maker with a properly executed
U.S. Internal Revenue Service (“IRS”) Form W-8BEN,
Certificate of Foreign Status of Beneficial Owner for United States Tax
Withholding (or any successor form prescribed by the IRS), certifying as to such
noteholder’s status for purposes of determining exemption from United States
withholding tax, information reporting and backup withholding with respect to
all payments to be made to such noteholder hereunder; (iv) if an event occurs
that would require a change in the exempt status of such noteholder or any of
the other information provided on the most recent IRS Form W-8BEN (or successor
form) previously submitted by such noteholder to the Maker, such noteholder will
so inform the Maker in writing (or by submitting to the Maker a new IRS Form
W-8BEN or successor form) within 30 days after the occurrence of such event; and
(v) such noteholder will not assign or otherwise transfer this Note or any of
its rights hereunder except in accordance with the provisions
hereof.

     

    In order
to qualify as a “registered note” for purposes of the Code, transfer of this
Note may be effected only by (i) surrender of this Note to the Maker and the
re-issuance of this Note to the transferee, or the Maker’s issuance to the Payee
of a new note in the same form as this Note but with the transferee denoted as
the Payee, or (ii) the recording of the identity of the transferee by the
Affiliate of the Payee that is maintaining a record ownership register of this
Note as agent of, and on behalf of, the Maker.  Such Affiliate in its
capacity as such agent shall notify the Maker in writing immediately upon any
change in such identity.  The terms and conditions of this Note shall
be binding upon and inure to the benefit of the Maker and the Payee and their
permitted assigns; provided, however, that if any such assignment (whether by
operation of law, by way of transfer or participation, or otherwise) is to any
noteholder that is not a “United States person” within the meaning of Section
7701(a)(30) of the Code, then such noteholder shall submit to the Maker on or
before the date of such assignment an IRS Form W-8BEN (or any
successor form) certifying as to such noteholder’s status for purposes of
determining exemption from United States withholding tax, information reporting
and backup withholding with respect to all payments to be made to such
noteholder under the new note (or other instrument).  Any attempted
transfer in violation of the relevant provisions of this Note shall be void and
of no force and effect.  Until there has been a valid transfer of this
Note and of all of the rights hereunder by the Payee in accordance with this
Note, the Maker shall deem and treat the Payee as the absolute beneficial owner
and holder of this Note and of all of the rights hereunder for all purposes
(including, without limitation, for the purpose of receiving all payments to be
made under this Note).

     

    It is the
intention of the Maker and the Payee that this Note is to be a registered
instrument and not a bearer instrument and the provisions of this Note are to be
interpreted accordingly.  This Note is intended to be registered as to
both principal and interest and all payments hereunder shall be made to the
named Payee or, in the event of a transfer pursuant to the Loan Agreement and
this Note, to the transferee identified in the record of ownership of this Note
maintained by the Payee on behalf of the Maker.  Transfer of this Note
may not be effected except in accordance with the provisions
hereof.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, an authorized representative of the Maker has executed this
Note as of the date first written above.

     

    
      
        
          
            	 
      	
                    COMPOSITE
      TECHNOLOGY CORPORATION

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	 
      	
                    Name:

                  
	 
      	 
      	
                    Title:

                  

          

        

      

    

    
      
         

      

      
        4Exhibit
10.3

    

    NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

    

    COMPOSITE
TECHNOLOGY CORPORATION

    

    Warrant
To Purchase Common Stock

    

    Warrant
No.: NLF-1  

    Date of
Issuance: June 30, 2009 (the “Issuance Date”)

    

    Warrant
Shares: This Warrant shall be exercisable for 4,000,000 shares of Common Stock
(as defined below).

     

    COMPOSITE
TECHNOLOGY CORPORATION, a Nevada corporation (the “Company”), hereby certifies
that, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Northlight Financial LLC, the registered holder hereof
or its permitted assigns (the “Holder”), is entitled, subject
to the terms set forth below, to purchase from the Company, at the Exercise
Price (as defined below) then in effect, upon surrender of this Warrant to
Purchase Common Stock (including any Warrants to Purchase Common Stock issued in
exchange, transfer or replacement hereof, the “Warrant”), at any time or
times on or after the date hereof, but not after 5:00 p.m. Pacific time, on the
Expiration Date (as defined below), the number of validly issued, fully paid and
nonassessable shares of Common Stock (as defined below) determined in accordance
with Section
1(a) below (the “Warrant
Shares”).  Except as otherwise defined herein, capitalized
terms in this Warrant shall have the meanings set forth in Section
13.  This Warrant is granted in connection with a Loan
Agreement, dated as of June 30, 2009 (the “Loan Date”), by and between
the Company and the Holder (the “Loan Agreement”).

     

    
      	
            	
              1.

            	
              EXERCISE OF
      WARRANT.

            

    

     

    (a)           Warrant
Shares.  This Warrant shall be exercisable for 4,000,000 shares
of Common Stock (as defined below) (the “Warrant
Shares”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Mechanics of
Exercise.  Subject to the terms and conditions hereof, this
Warrant may be exercised by the Holder on any day on or after the date hereof,
in whole or in part, by (i) delivery of a written notice in the form
attached hereto as Exhibit A (the “Exercise Notice”), of the
Holder’s election to exercise this Warrant and (ii) either (A) payment to
the Company of an amount equal to the Exercise Price multiplied by the number of
Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in
cash or by wire transfer of immediately available funds, or (B) by notifying the
Company that this Warrant is being exercised in a Cashless Exercise (as defined
below) pursuant to and subject to the conditions set forth in Section 1(d); provided, however, that this
Warrant may not be exercised in a Cashless Exercise during the first six (6)
months following the date of issuance of the Warrant.  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
with respect to less than all of the Warrant Shares 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.  On or
before the first (1st)
Business Day (as defined below) following the date on which the Company has
received each of the Exercise Notice and the Aggregate Exercise Price (or notice
of a Cashless Exercise) (the “Exercise Delivery Documents”),
the Company shall transmit by facsimile an acknowledgment of confirmation of
receipt of the Exercise Delivery Documents to the Holder and the Company’s
transfer agent (the “Transfer
Agent”).  On or before the third (3rd)
Business Day following the date on which the Company has received all of the
Exercise Delivery Documents (the “Share Delivery Date”), the
Company shall issue and dispatch by overnight courier to the address as
specified in the Exercise Notice, a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of
shares of Common Stock to which the Holder is entitled pursuant to such
exercise.  Upon delivery of the Exercise Notice and Aggregate Exercise
Price referred to in clause (ii)(A) above or notification to the Company of a
Cashless Exercise referred to in Section 1(d), the
Holder shall be deemed for all corporate purposes to have become the holder of
record of the Warrant Shares with respect to which this Warrant has been
exercised, irrespective of the date of delivery of the certificates evidencing
such Warrant Shares.  If this Warrant is submitted in connection with
any exercise pursuant to this Section 1(b) and the
number of Warrant Shares represented by this Warrant submitted for exercise is
greater than the number of Warrant Shares being acquired upon an exercise, then
the Company shall as soon as practicable, and in no event later than three (3)
Business Days after any exercise and at its own expense, issue a new Warrant (in
accordance with Section 5(d))
representing the right to purchase the number of Warrant Shares purchasable
immediately prior to such exercise under this Warrant, less the number of
Warrant Shares with respect to which this Warrant is exercised.  No
fractional shares of Common Stock are to be issued upon the exercise of this
Warrant, but rather the number of shares of Common Stock to be issued shall be
rounded up to the nearest whole number.  The Company shall pay any and
all taxes which may be payable with respect to the issuance and delivery of
Warrant Shares upon exercise of this Warrant.

     

    (c)           Exercise
Price.  For purposes of this Warrant, “Exercise Price” means $0.25
per share, subject to adjustment as provided herein.

     

    (d)           Cashless Exercise.
 Notwithstanding
anything contained herein to the contrary, if at any time after the Closing Date
a registration statement covering the Warrant Shares that are the subject of an
Exercise Notice (the “Unavailable Warrant Shares”)
is not available for the resale of such Unavailable Warrant Shares at the time
of exercise, the Holder may, in its sole discretion, exercise this Warrant in
whole or in part and, in lieu of making the cash payment otherwise contemplated
to be made to the Company upon such exercise in payment of the Aggregate
Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of
Common Stock determined according to the following formula (a “Cashless
Exercise”):

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      
        
          
            	
                  	
                    Net
      Number

                  	
                    =
      (A x B) - (A x
      C) 

                  
	 	 	          
           B

          

        

         

      

    

    For
purposes of the foregoing formula:

     

    A = the
total number of shares with respect to which this Warrant is then being
exercised.

     

    B = the
Closing Sale Price of the shares of Common Stock (as reported by Bloomberg) on
the date immediately preceding the date of the Exercise Notice.

     

    C = the
Exercise Price then in effect for the applicable Warrant Shares at the time of
such exercise.

     

    (e)           Disputes.  In
the case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall promptly issue
to the Holder the number of Warrant Shares that are not disputed, and resolve
such dispute in accordance with Section
10.

     

    (f)           Insufficient Authorized
Shares.  If at any time while any of the Warrants remain
outstanding the Company does not have a sufficient number of authorized and
unreserved shares of Common Stock to satisfy its obligation to reserve for
issuance upon exercise of the Warrants at least a number of shares of Common
Stock equal to 100% (the “Required Reserve Amount”) of
the number of shares of Common Stock as shall from time to time be necessary to
effect the exercise of all of the Warrants then outstanding (an “Authorized Share Failure”),
then the Company shall immediately take all action necessary to increase the
Company’s authorized shares of Common Stock to an amount sufficient to allow the
Company to reserve the Required Reserve Amount for the Warrants then
outstanding.  Without limiting the generality of the foregoing
sentence, as soon as practicable after the date of the occurrence of an
Authorized Share Failure, but in no event later than sixty (60) days after the
occurrence of such Authorized Share Failure, the Company shall hold a meeting of
its stockholders for the approval of an increase in the number of authorized
shares of Common Stock.  In connection with such meeting, the Company
shall provide each stockholder with a proxy statement and shall use its best
efforts to solicit its stockholders’ approval of such increase in authorized
shares of Common Stock and to cause its board of directors to recommend to the
stockholders that they approve such proposal.

     

    2.  
         ADJUSTMENT OF EXERCISE PRICE
AND NUMBER OF WARRANT SHARES.  The Exercise Price and the
number of Warrant Shares shall be adjusted from time to time as
follows:

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (a)          Weighted Average Adjustment
of Exercise Price upon Issuance of Common Stock.  If the
Company issues any shares of Common Stock (including the issuance or sale of
shares of Common Stock owned or held by or for the account of the Company, but
excluding shares of Common Stock deemed to have been issued or sold by the
Company in connection with any Excluded Securities) for a consideration per
share (the “New Issuance
Price”) less than the Exercise Price in effect immediately prior to such
issue or sale (the foregoing a “Dilutive Issuance”), then
immediately after such Dilutive Issuance, the Exercise Price then in effect
shall be reduced to an amount equal to a price determined by multiplying such
Exercise Price by a fraction, the numerator of which shall be a sum equal to the
number of shares of Common Stock outstanding and deemed issued pursuant to Section 2(b)
immediately prior to such issuance, plus the number of shares of Common Stock
that the aggregate consideration received by this Company for such issuance
would purchase at such Exercise Price; and the denominator of which shall be the
number of shares of Common Stock outstanding and deemed issued pursuant to Section 2(b)
immediately prior to such issuance plus the number of shares of such additional
Common Stock.

     

    (b)          Provisions Applicable to
Exercise Price Adjustments.  For purposes of determining the
adjusted Exercise Price under Section 2(a) above,
the following provisions shall apply:

     

    (1)           Issuance of
Options.  If the Company in any manner grants or sells any
Options (as defined below) (other than any Excluded Securities) and the lowest
price per share for which one share of Common Stock is issuable upon the
exercise of any such Option or upon conversion or exchange or exercise of any
Convertible Securities (as defined below) issuable upon exercise of such Option
is less than the Exercise Price, then such share of Common Stock shall be deemed
to be outstanding and to have been issued and sold by the Company at the time of
the granting or sale of such Option for such price per share.  For
purposes of this Section 2(b)(1), the
“lowest price per share for which one share of Common Stock is issuable upon the
exercise of any such Option or upon conversion or exchange or exercise of any
Convertible Securities issuable upon exercise of such Option” shall be equal to
the sum of the lowest amounts of consideration (if any) received or receivable
by the Company with respect to any one share of Common Stock upon granting or
sale of the Option, upon exercise of the Option and upon conversion or exchange
or exercise of any Convertible Security issuable upon exercise of such
Option.  No further adjustment of the Exercise Price shall be made
upon the actual issuance of such share of Common Stock or of such Convertible
Securities upon the exercise of such Options or upon the actual issuance of such
Common Stock upon conversion or exchange or exercise of such Convertible
Securities.

     

    (2)           Issuance of Convertible
Securities.  If the Company in any manner issues or sells any
Convertible Securities (other than Excluded Securities) and the lowest price per
share for which one share of Common Stock is issuable upon such conversion or
exchange or exercise thereof is less than the Exercise Price, then such share of
Common Stock shall be deemed to be outstanding and to have been issued and sold
by the Company at the time of the issuance of sale of such Convertible
Securities for such price per share.  For the purposes of this Section 2(b)(2), the
“price per share for which one share of Common Stock is issuable upon such
conversion or exchange or exercise” shall be equal to the sum of the lowest
amounts of consideration (if any) received or receivable by the Company with
respect to any one share of Common Stock upon the issuance or sale of the
Convertible Security and upon the conversion or exchange or exercise of such
Convertible Security.  No further adjustment of the Exercise Price
shall be made upon the actual issuance of such share of Common Stock upon
conversion or exchange or exercise of such Convertible Securities, and if any
such issue or sale of such Convertible Securities is made upon exercise of any
Options for which adjustment of the Exercise Price had been or are to be made
pursuant to other provisions of this Section 2(b), no
further adjustment of the Exercise Price shall be made by reason of such issue
or sale.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (3)          Change in Option Price or
Rate of Conversion.  If the purchase price provided for in any
Options (other than Excluded Securities), the additional consideration, if any,
payable upon the issue, conversion, exchange or exercise of any Convertible
Securities, or the rate at which any Convertible Securities (other than Excluded
Securities) are convertible into or exchangeable or exercisable for Common Stock
is changed, the Exercise Price in effect at the time of such change shall be
adjusted to the Exercise Price which would have been in effect at such time had
such Options or Convertible Securities provided for such changed purchase price,
additional consideration or changed conversion rate, as the case may be, at the
time initially granted, issued or sold.  For purposes of this Section 2(b)(3), if
the terms of any Option or Convertible Security that was outstanding as of the
Closing Date are changed in the manner described in the immediately preceding
sentence, then such Option or Convertible Security and the Common Stock deemed
issuable upon exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such change.  No adjustment shall be
made if such adjustment would result in an increase of the Exercise Price then
in effect.

     

    (4)          Definition of Excluded
Securities.  For purposes of this Agreement, “Excluded Securities” shall
mean:

     

    (A)          shares
of Common Stock issued pursuant to a transaction described in Section 2(c)
hereof;

     

    (B)           shares
of Common Stock issued or deemed issued to employees, consultants, attorneys,
officers or directors (if in transactions with primarily non-financing purposes)
of this Company directly or pursuant to any equity compensation plan which has
been approved by the Board of Directors of the Company, pursuant to which the
Company’s securities may be issued to any employee, officer, consultant or
director for services provided to the Company (“Approved Stock
Plan”);

     

    (C)           shares
of Common Stock issued or issuable (1) in a bona fide, underwritten public
offering under the Act resulting in aggregate proceeds of at least $15,000,000,
or (2) upon exercise of warrants or rights granted to underwriters in connection
with such a public offering;

     

    (D)          shares
of Common Stock issued pursuant to the conversion or exercise of convertible or
exercisable securities outstanding as of the date hereof (including without
limitation, the Warrant) or subsequently issued, provided such securities are
not amended after the date hereof to increase the number of shares of Common
Stock issuable thereunder or to lower the exercise price thereof;

     

    (E)           shares
of Common Stock issued or issuable in connection with a bona fide business
acquisition of or by the Company, whether by merger, consolidation, sale of
assets, sale or exchange of stock or otherwise, each as approved by the Board of
Directors of the Company, excluding, however, shares issued or issuable in
connection with a transaction between the Company and an Affiliate;
or

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (F)           shares
of Common Stock issued or issuable in connection with any transaction where such
securities so issued are deemed included in the definition of “Excluded
Securities” by the affirmative vote or written consent of the Required
Holders.

     

    (5)           Record
Date.  If the Company takes a record of the holders of Common
Stock for the purpose of entitling them (A) to receive a dividend or other
distribution payable in Common Stock, Options or in Convertible Securities or
(B) to subscribe for or purchase Common Stock, Options or Convertible
Securities, then such record date will be deemed to be the date of the issue or
sale of the Common Stock deemed to have been issued or sold upon the declaration
of such dividend or the making of such other distribution or the date of the
granting of such right of subscription or purchase, as the case may
be.

     

    (6)           Dividends.  In
the event that the Company shall declare a dividend or make any other
distribution upon any stock of the Company (other than the Common Stock) payable
in Common Stock, Options or Convertible Securities, then any Common Stock,
Options or Convertible Securities, as the case may be, issuable in payment of
such dividend or distribution shall be deemed to have been issued or sold
without consideration; provided, that if any
adjustment is made to the Exercise Price as a result of a declaration of a
dividend and such dividend is rescinded, the Exercise Price shall be
appropriately readjusted to the Exercise Price in effect had such dividend not
been declared.

     

    (7)           Calculation of
Consideration.  In the event that any shares of Common Stock,
Options or Convertible Securities shall be issued or sold for cash, the
consideration received therefor shall be deemed to be the net amount received by
the Company therefor, after deduction therefrom of any expenses incurred or any
underwriting commissions or concessions paid or allowed by the Company in
connection therewith.  In case any shares of Common Stock, Options or
Convertible Securities shall be issued or sold for a consideration other than
cash, the amount of the consideration other than cash received by the Company
shall be deemed to be the fair value of such consideration as determined in good
faith by the Board, after deduction of any expenses incurred or any underwriting
commissions or concessions paid or allowed by the Company in connection
therewith.  In case any Options shall be issued in connection with the
issuance and sale of other securities of the Company, together comprising one
integral transaction in which no specific consideration is allocated to such
Options by the parties thereto, such Options shall be deemed to have been issued
for such consideration as determined in good faith by the Board of Directors of
the Company.  If Common Stock, Options or Convertible Securities shall
be issued or sold by the Company and, in connection therewith, other Options or
Convertible Securities (the “Additional Rights”) are
issued, then the consideration received or deemed to be received by the Company
shall be reduced by the fair market value of the Additional Rights (as
determined using the Black-Scholes option pricing model or another method
mutually agreed to by the Company and the Holder).  The Board shall
respond promptly, in writing, to an inquiry by the Holder as to the fair market
value of the Additional Rights.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (c)           If
the Company, at any time while this Warrant is outstanding: (A) pays a stock
dividend or otherwise makes a distribution or distributions on shares of its
Common Stock or any other equity or equity equivalent securities payable in
shares of Common Stock (which, for avoidance of doubt, shall not include any
shares of Common Stock issued by the Company upon exercise of this Warrant), (B)
subdivides outstanding shares of Common Stock into a larger number of shares,
(C) combines (including by way of reverse stock split) outstanding shares of
Common Stock into a smaller number of shares, or (D) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then
in each case the Exercise Price shall be adjusted by multiplying the Exercise
Price by a fraction, of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any) outstanding immediately before
such event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event, and the number of shares
issuable upon exercise of this Warrant shall be proportionately adjusted to
result in the same Aggregate Exercise Price as existed immediately prior to such
event.  Any adjustment made pursuant to this Section 2(c) shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution or shall become
effective immediately after the effective date of such subdivision, combination
or reclassification, as applicable.

     

    (d)           Organic
Change.  If, at any time while this Warrant is outstanding, (A)
the Company effects any merger or consolidation of the Company with or into
another Person, (B) the Company effects any sale of all or substantially all of
its assets in one or a series of related transactions, (C) 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 (D) 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 (each, an “Organic Change”), then, upon
any subsequent exercise of this Warrant, the Holder shall have the right to
receive, for each Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Organic Change, the number of shares
of Common Stock of the successor or acquiring corporation or of the Company, if
it is the surviving corporation, and/or any additional consideration (the “Alternate Consideration”)
receivable as a result of such merger, consolidation or disposition of assets by
a Holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such event.  For purposes of any such
exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common Stock in such
Organic Change (if applicable), and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the
relative value of any different components of the Alternate
Consideration.  If holders of Common Stock are given any choice as to
the securities, cash or property to be received in a Organic Change, then the
Holder shall be given the same choice (no later than the time of the Organic
Change) as to the Alternate Consideration it receives upon any exercise of this
Warrant following such Organic Change.  To the extent necessary to
effectuate the foregoing provisions, any successor to the Company or surviving
entity in such Organic Change shall issue to the Holder a new warrant consistent
with the foregoing provisions and evidencing the Holder’s right to exercise such
warrant into Alternate Consideration.  The terms of any agreement
pursuant to which an Organic Change is effected shall include terms requiring
any such successor or surviving entity to comply with the provisions of this
Section 2(d)
and insuring that this Warrant (or any such replacement security) will be
similarly adjusted upon any subsequent transaction analogous to an Organic
Change.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    3.           NONCIRCUMVENTION.  The
Company hereby covenants and agrees that the Company will not, by amendment of
its Articles of Incorporation, Bylaws or through any reorganization, transfer of
assets, consolidation, merger, scheme of arrangement, 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, and will at all
times in good faith carry out all the provisions of this Warrant and take all
action as may be required to protect the rights of the
Holder.  Without limiting the generality of the foregoing, the Company
(i) shall not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the Exercise Price then in
effect, (ii) shall take all such actions as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant and (iii)
shall, so long as any of the Warrants are outstanding, take all action necessary
to reserve and keep available out of its authorized and unissued shares of
Common Stock, solely for the purpose of effecting the exercise of the Warrants,
100% of the number of shares of Common Stock as shall from time to time be
necessary to effect the exercise of the Warrants then outstanding (without
regard to any limitations on exercise).

     

    4.           WARRANT HOLDER NOT DEEMED A
STOCKHOLDER.  Except as otherwise specifically provided herein,
the Holder, solely in such Person’s capacity as a holder of this Warrant, shall
not be entitled to vote or receive dividends or be deemed the holder of share
capital of the Company for any purpose, nor shall anything contained in this
Warrant be construed to confer upon the Holder, solely in such Person’s capacity
as the Holder of this Warrant, any of the rights of a stockholder of the Company
or any right to vote, give or withhold consent to any corporate action (whether
any reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends
or subscription rights, or otherwise, prior to the issuance to the Holder of the
Warrant Shares which such Person is then entitled to receive upon the due
exercise of this Warrant.  In addition, nothing contained in this
Warrant shall be construed as imposing any liabilities on the Holder to purchase
any securities (upon exercise of this Warrant or otherwise) or as a stockholder
of the Company, whether such liabilities are asserted by the Company or by
creditors of the Company.  Notwithstanding this Section 4, the
Company shall provide the Holder with copies of the same notices and other
information given to the stockholders of the Company generally,
contemporaneously with the giving thereof to the stockholders.

     

    5.           REISSUANCE OF
WARRANTS.

     

      (a) 
          Transfer of
Warrant.  If this Warrant is to be transferred, the Holder
shall surrender this Warrant to the Company, whereupon the Company will
forthwith issue and deliver upon the order of the Holder a new Warrant (in
accordance with Section 5(d)),
registered as the Holder may request, representing the right to purchase the
number of Warrant Shares being transferred by the Holder and, if less then the
total number of Warrant Shares then underlying this Warrant is being
transferred, a new Warrant (in accordance with Section 5(d)) to the
Holder representing the right to purchase the number of Warrant Shares not being
transferred.  Applicable transfer taxes, if any, shall be paid by the
Holder.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

     
(b)           Lost, Stolen or Mutilated
Warrant.  Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant, and, in the case of loss, theft or destruction, of any
indemnification undertaking by the Holder to the Company in customary form and,
in the case of mutilation, upon surrender and cancellation of this Warrant, the
Company shall execute and deliver to the Holder a new Warrant (in accordance
with Section
5(d)) representing the right to purchase the Warrant Shares then
underlying this Warrant.

     

      (c) 
          Exchangeable for Multiple
Warrants.  This Warrant is exchangeable, upon the surrender
hereof by the Holder at the principal office of the Company, for a new Warrant
or Warrants (in accordance with Section 5(d))
representing in the aggregate the right to purchase the number of Warrant Shares
then underlying this Warrant, and each such new Warrant will represent the right
to purchase such portion of such Warrant Shares as is designated by the Holder
at the time of such surrender; provided, however, that no
Warrants for fractional shares of Common Stock shall be given.

     

     
(d)            Issuance of New
Warrants.  Whenever the Company is required to issue a new
Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of
like tenor with this Warrant, (ii) shall represent, as indicated on the face of
such new Warrant, the right to purchase the Warrant Shares then underlying this
Warrant (or in the case of a new Warrant being issued pursuant to Section 5(a) or Section 5(c), the
Warrant Shares designated by the Holder which, when added to the number of
shares of Common Stock underlying the other new Warrants issued in connection
with such issuance, does not exceed the number of Warrant Shares then underlying
this Warrant), and (iii) shall have an issuance date, as indicated on the face
of such new Warrant, which is the same as the Issuance Date.

     

    6.           NOTICES.  Whenever
notice is required to be given under this Warrant, unless otherwise provided
herein, such notice shall be given in accordance with Section 6.1 of the Loan
Agreement.  The Company shall provide the Holder with prompt written
notice of all actions taken pursuant to this Warrant, including in reasonable
detail a description of such action and the reason therefore.  Without
limiting the generality of the foregoing, the Company will give written notice
to the Holder (i) immediately upon any adjustment of the Exercise Price, setting
forth in reasonable detail, and certifying, the calculation of such adjustment
and (ii) at least fifteen (15) days prior to the date on which the Company
closes its books or takes a record (A) with respect to any dividend or
distribution upon the shares of Common Stock, (B) with respect to any grants,
issuances or sales of any Options, Convertible Securities or rights to purchase
stock, warrants, securities or other property to holders of shares of Common
Stock or (C) for determining rights to vote with respect to any Fundamental
Transaction, dissolution or liquidation, provided in each case that such
information shall be made known to the public prior to or in conjunction with
such notice being provided to the Holder.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    7.           AMENDMENT AND
WAIVER.  Except as otherwise provided herein, the provisions of
this Warrant may be amended and the Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it,
only if the Company has obtained the written consent of the Required Holders;
provided that no such action may (i) increase the exercise price of any Warrants
or decrease the number of shares or change the class of stock obtainable upon
exercise of any Warrants, (ii) modify Section 1(d) of this
Warrant or (iii) disproportionately affect the Holder in a materially and
adverse manner (except as a result of holding a greater percentage of Warrant
Shares) without the written consent of the Holder.  No such amendment
shall be effective to the extent that it applies to less than all of the holders
of the Warrants then outstanding.

     

    8.           GOVERNING
LAW.  This Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of New York without regard to
the choice of law principles thereof.

     

    9.           CONSTRUCTION;
HEADINGS.  This Warrant shall be deemed to be jointly drafted
by the Company and all the Holders, and shall not be construed against any
person as the drafter hereof.  The headings of this Warrant are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Warrant.

     

    10.         DISPUTE
RESOLUTION.  In the case of a dispute as to the determination
of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall submit the disputed determinations or arithmetic calculations via
facsimile within two (2) Business Days of receipt of the Exercise Notice giving
rise to such dispute, as the case may be, to the Holder.  If the
Holder and the Company are unable to agree upon such determination or
calculation of the Exercise Price or the Warrant Shares within three (3)
Business Days of such disputed determination or arithmetic calculation being
submitted to the Holder, then the Company shall, within two (2) Business Days
submit via facsimile the disputed determination of the Exercise Price to a
mutually agreeable independent, reputable investment bank or such other Person
as the Holder and the Company may mutually agree.  The Company shall
cause at its expense the investment bank or other Person, as the case may be, to
perform the determinations or calculations and notify the Company and the Holder
of the results no later than ten (10) Business Days from the time it receives
the disputed determinations or calculations.  Such investment bank’s
or other Person’s determination or calculation, as the case may be, shall be
binding upon all parties, absent demonstrable error.

     

    11.         TRANSFER.  This
Warrant may be offered for sale, sold, transferred or assigned, in whole or in
part, without the consent of the Company, except that the Warrant may not be
offered for sale, sold, assigned or transferred unless (A) the Warrant is
subsequently registered, (B) such transferor shall have delivered to the Company
an opinion of counsel, in a generally acceptable form, to the effect that the
Warrant to be sold, assigned or transferred may be sold, assigned or transferred
pursuant to an exemption from such registration, (C) such transferor provides
the Company with reasonable assurance that the Warrant can be sold, assigned or
transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act, as
amended (or a successor rule thereto) (collectively, “Rule 144”), or (D) the sale,
assignment, or transfer meets the requirement of Regulation S under the 1933
Act, as amended.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    12.         PIGGYBACK
REGISTRATION.  If, at any time prior to the expiration of the
Registration Period (as defined below), the Company shall file a registration
statement (other than a registration statement on Form S-4, form S-8, or any
successor form) with the Securities and Exchange Commission (the “Commission”) while any
Registrable Securities (as defined below) are outstanding, the Company shall
give the then holders of any Registrable Securities (the “Eligible Holders”) at least
thirty (30) days’ prior written notice of the filing of such registration
statement, which notice shall describe the securities to be registered and
specify the form and manner and the other relevant facts involved in such
proposed registration (including, without limitation, (i) whether or not such
registration will be in connection with an underwritten offering of securities
and, if so, the identity of the managing underwriter and whether such offering
will be pursuant to a “best efforts” or “firm commitment” underwriting, (ii) the
price at which such securities are reasonably expected to be sold to the public,
and (iii) the amount of the underwriting discount reasonably expected to be
incurred in connection therewith).  If requested by any Eligible
Holder in writing within twenty (20) days after receipt of any such notice, the
Company shall, at the Company’s sole expense (other than the fees and
disbursements of counsel for the Eligible Holders, and the underwriting
discounts, if any, payable in respect of the Registrable Securities sold by the
Eligible Holders), register all or, at each Eligible Holder’s option, any
portion of the Registrable Securities of any Eligible Holders who shall have
made such request, concurrently with the registration of such other securities,
all to the extent requisite to permit the public offering and sale of the
Registrable Securities through the facilities of all Eligible Markets, if any,
on which the Company’s Common Stock is being sold, and will use its best efforts
through its officers, directors, auditors and counsel to cause such registration
statement to become effective as promptly as
practicable.  Notwithstanding the foregoing, if the managing
underwriter of any such offering shall determine and advise the Company that, in
its opinion, the distribution of all or a portion of the Registrable Securities
requested to be included in the registration concurrently with the securities
being registered by the Company for its own account would materially adversely
affect the distribution of such securities by the Company, then (x) the Company
will promptly so advise each holder of Registrable Securities that has requested
registration, and will include in such registration:  first, authorized but
unissued or treasury shares of Common Stock which the Company desires to include
in such registration; and second, Registrable
Securities requested to be included therein and other outstanding securities of
the Company, if any, which the Company shall have been requested to register,
allocated pro rata among the holders of Registrable Securities and any holders
of such other securities based on the number of securities with respect to which
each such holder has requested registration; in each case until the aggregate
number of securities included in such registration is equal to the number
thereof that, in the opinion of such managing underwriter, can be sold without
materially adversely affecting the marketability thereof, and (y) the Eligible
Holders shall delay the offering and sale of those Registrable Securities
requested to be included in the registration but not so included for such
period, not to exceed one hundred eight (180) days as the managing underwriter
shall request.  In the event the Company is advised by the staff of
the Commission that the inclusion of the Registrable Securities will prevent,
preclude or materially delay the effectiveness of the registration statement,
the Company, in good faith, may amend such registration statement to exclude the
Registrable Securities.  As used herein, (x) “Registrable Securities” shall
mean the Warrant Shares (and any securities issued or issuable by the Company
with respect to the Warrant Shares hereunder which, in each case, have not been
previously sold pursuant to a registration statement or Rule 144) and (y) “Registration Period” shall
mean the period commencing on the date hereof and ending on the date on which
all Registrable Securities may be immediately sold to the public without
registration or restriction under the 1933 Act.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    13.          CERTAIN
DEFINITIONS.  For purposes of this Warrant, the following terms
shall have the following meanings:

     

    (a)           “1933 Act” means the Securities
Act of 1933, as amended.

     

    (b)           “Bloomberg” means Bloomberg
Financial Markets.

     

    (c)           “Business Day” means any day
other than Saturday, Sunday or other day on which commercial banks in the New
York City are authorized or required by law to remain closed.

     

    (d)           “Closing Bid Price” and “Closing Sale Price” means, for
any security as of any date, the last closing bid price and last closing trade
price, respectively, for such security on the Principal Market, as reported by
Bloomberg, or, if the Principal Market begins to operate on an extended hours
basis and does not designate the closing bid price or the closing trade price,
as the case may be, then the last bid price or last trade price, respectively,
of such security prior to 4:00 p.m., New York Time, as reported by Bloomberg,
or, if the Principal Market is not the principal securities exchange or trading
market for such security, the last closing bid price or last trade price,
respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if
the foregoing do not apply, the last closing bid price or last trade price,
respectively, of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade price, respectively, is reported for such security by
Bloomberg, the average of the bid prices, or the ask prices, respectively, of
any market makers for such security as reported in the “pink sheets” by Pink
Sheets LLC (formerly the National Quotation Bureau, Inc.).  If the
Closing Bid Price or the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price, as the case may be, of such security on such date shall be
the fair market value as mutually determined by the Company and the
Holder.  If the Company and the Holder are unable to agree upon the
fair market value of such security, then such dispute shall be resolved pursuant
to Section 10.  All such determinations to be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar
transaction during the applicable calculation period.

     

    (e)           “Common Stock” means
(i) the Company’s shares of Common Stock, par value $0.001 per share, and
(ii) any share capital into which such Common Stock shall have been changed
or any share capital resulting from a reclassification of such Common
Stock.

     

    (f)           “Convertible Securities” means
any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

     

    (g)           “Eligible Market” means the
Principal Market, the American Stock Exchange, The New York Stock Exchange,
Inc., The Nasdaq Global Select Market, The Nasdaq Global Market or The Nasdaq
Capital Market.

     

    (h)           “Expiration Date” means the
date thirty six (36) months after the Issuance Date or, if such date falls on a
day other than a Business Day or on which trading does not take place on the
Principal Market (a “Holiday”), the next date that
is not a Holiday.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (i)           “Fundamental Transaction” means
that the Company shall, directly or indirectly, in one or more related
transactions, (i) consolidate or merge with or into (whether or not the Company
is the surviving corporation) another Person, (ii) sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or
assets of the Company, including intellectual property, to another Person, (iii)
allow another Person to make a purchase, tender or exchange offer that is
accepted by the holders of more than fifty percent (50%) of either the
outstanding shares of Common Stock (not including any shares of Common Stock
held by the Person or Persons making or party to, or associated or affiliated
with the Persons making or party to, such purchase, tender or exchange offer),
(iv) consummate a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or
scheme of arrangement) with another Person whereby such other Person acquires
more than fifty percent (50%) of the outstanding shares of Common Stock (not
including any shares of Common Stock held by the other Person or other Persons
making or party to, or associated or affiliated with the other Persons making or
party to, such stock purchase agreement or other business combination), (v)
reorganize, recapitalize or reclassify its Common Stock (other than a forward or
reverse stock split) or (vi) any “person” or “group” (as these terms are used
for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become
the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of fifty percent (50%) of the aggregate ordinary voting
power represented by issued and outstanding Common Stock.

     

    (j)           “Options” means any rights,
warrants or options to subscribe for or purchase shares of Common Stock or
Convertible Securities.

     

    (k)           “Organic Change” means a
transaction as described in Section 2(d).

     

    (l)           “Parent Entity” of a Person
means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an
Eligible Market, or, if there is more than one such Person or Parent Entity, the
Person or Parent Entity with the largest public market capitalization as of the
date of consummation of the Fundamental Transaction.

     

    (m)           “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity and a government or any
department or agency thereof.

     

    (n)           “Principal Market” means the
OTC Bulletin Board.

     

    (o)           “Required Holders” means the
holders of the Warrants representing at least a majority of shares of Common
Stock underlying the Warrants then outstanding.

     

    (p)           “Successor Entity” means the
Person (or, if so elected by the Required Holders, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so
elected by the Required Holders, the Parent Entity) with which such Fundamental
Transaction shall have been entered into.  

     

    [Signature Page
Follows]

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to
be duly executed as of the Issuance Date set forth above.

    

    
      
        
          
            
              	 
      	
                      COMPOSITE
      TECHNOLOGY

                      CORPORATION

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	
                      Name:

                    	 
      
	 
      	
                      Title:

                    	 
      

            

          

        

      

    

     

    [Signature Page to Warrant to
Purchase Common Stock]

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    EXERCISE
NOTICE

     

    TO
BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

    WARRANT
TO PURCHASE COMMON STOCK

    COMPOSITE
TECHNOLOGY CORPORATION

     

    The
undersigned holder hereby exercises the right to purchase _________________
shares of Common Stock (“Warrant Shares”) of Composite
Technology Corporation, a Nevada corporation (the “Company”), evidenced by the
attached Warrant to Purchase Common Stock (the “Warrant”). Capitalized terms
used but not otherwise defined herein shall have the respective meanings set
forth in the Warrant.

     

    1.
 Form of Exercise
Price.  The Holder intends that payment of the Exercise Price shall
be made as:

    

    a “Cash Exercise” with
respect to _________________ Warrant Shares; and/or

     

    a “Cashless Exercise”
with respect to _______________ Warrant Shares.

     

    2.
 Payment of
Exercise Price.  In the event that the holder has elected a Cash
Exercise with respect to some or all of the Warrant Shares to be issued pursuant
hereto, the holder shall pay the Aggregate Exercise Price in the sum of
$___________________ to the Company in accordance with the terms of the
Warrant.

    

    3.
 Delivery of
Warrant Shares.  The Company shall deliver to the holder __________
Warrant Shares in accordance with the terms of the Warrant.

    

    

    Date:
_______________ __, ______

    

    _________________________

     

    Name of
Registered Holder

    

    
      
        
          
            	
                    By:

                  	 
      	 
      
	 
      	
                    Name:

                  	 
      
	 
      	
                    Title:

                  	 
      

          

        

      

    

    
       

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ACKNOWLEDGMENT

    

    The
Company hereby acknowledges this Exercise Notice and hereby directs [Insert Name of Transfer Agent]
to issue the above indicated number of shares of Common Stock in
accordance with the Transfer Agent Instructions dated _______________ from the
Company and acknowledged and agreed to by [Insert Name of Transfer Agent]
.

    

    
      
        
          
            
              	 
      	
                      COMPOSITE
      TECHNOLOGY

                      CORPORATION

                    
	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	
                      Name:

                    	 
      
	 
      	
                      Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]