Document:

NEITHER
      THESE WARRANTS NOR THE COMMON STOCK ISSUABLE UPON EXERCISE OF THESE WARRANTS
      HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
      OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, PLEDGED OR
      TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH
      SECURITIES UNDER THE ACT OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS
      AVAILABLE.

     

    
      	 1,850,000
              Warrants	
               August
                31,
                2006

            

    

     

    SUB-URBAN
      BRANDS, INC.

    WARRANTS

     

    Sub-Urban
      Brands, Inc., a Nevada corporation (“SUUB”),
      certifies that, for value received, _______________ (“__________
      ”),
      or
      registered assigns (the “Holder”),
      is
      the owner of one million eight hundred fifty thousand (1,850,000) Warrants
      of
      SUUB (the “Warrants”).
      Each
      Warrant entitles the Holder to purchase from SUUB at any time prior to the
      Expiration Date (as defined below) one share of the common stock of SUUB (the
      “Common
      Stock”)
      for
      $0.50 per share (the “Exercise
      Price”),
      subject to adjustment as defined in section 2, on the terms and conditions
      hereinafter provided. The Exercise Price and the number of shares of Common
      Stock purchasable upon exercise of each Warrant are subject to adjustment as
      provided in this Certificate. 

     

    1. Vesting;
      Expiration Date; Exercise

     

    1.1 Vesting.
      The Warrants shall vest and become exercisable as of the date of this
      Certificate.

     

    1.2 Expiration
      Date. The Warrants shall expire on August, 31, 2009 (the “Expiration
      Date”).

     

    1.3 Manner
      of Exercise. The Warrants are exercisable, in whole or in part, by delivery
      to SUUB of the following (the “Exercise
      Documents”):
      (a)
      this Certificate (b) a written notice of election to exercise the Warrants;
      and
      (c) payment of the Exercise Price in immediately available funds or by “net”
exercise as contemplated by Section 1.4 of this Certificate. Within ten (10)
      business days following receipt of the foregoing, SUUB shall execute and deliver
      to the Holder: (a) a certificate or certificates representing the aggregate
      number of shares of Common Stock purchased by the Holder, and (b) if less than
      all of the Warrants evidenced by this Certificate are exercised, a new
      certificate evidencing the Warrants not so exercised.

    
      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

      

    

     

    1.4 Net
      Exercise. In lieu of the payment methods set forth in Section 1.3 above, the
      Holder may elect to exchange all or some of the Warrants for the number of
      shares of Common Stock computed using the following formula:

     

    X
      =
Y
      (A-B)

        A

     

    Where
      X =
      the number of shares of Common Stock to be issued to Holder.

     

    Y
      = the
      number of shares of Common Stock purchasable under the Warrants being exchanged
      (as adjusted to the date of such calculation).

     

    A
      = the
      Market Price on the date of receipt by SUUB of the exercise
      documents.

     

    B
      = the
      Exercise Price of the Warrants being exchanged (as adjusted in accordance with
      the terms of Section 2 hereof).

     

    The
      “Market
      Price”
on
      any
      trading day shall be deemed to be the average of the ask and bid price of the
      Common Stock over the five (5) trading days immediately preceding receipt by
      the
      Company of the exercise documents as officially reported by the principal
      securities exchange or quotation medium on which the shares of Common Stock
      are
      listed or eligible for trading. If the Market Price cannot be determined
      pursuant to the sentence above, the Market Price shall be determined in good
      faith (using customary valuation methods) by the Board of Directors of the
      Company, and in the sole and absolute discretion of the Board of Directors
      of
      the Company, based on the information best available to it, including recent
      arms-length sales of Common Stock to unaffiliated persons.

     

    1.5 Restriction
      on “Net” Exercise. Notwithstanding any other provision of this Certificate,
      Holder shall not be permitted to effect a “net” exercise of the Warrants: (a)
      prior to one year from the date hereof and (b) after one year from the date
      hereof if on the date of exercise the resale of the underlying shares by Holder
      has been registered under the Securities Act of 1933, as amended, pursuant
      to a
      registration statement which is then in effect, and on such date the Holder
      shall be permitted to resell such shares pursuant to such registration
      statement, and the Common Stock shall be listed or quoted for trading on the
      OTC
      Bulletin Board, the Nasdaq Stock Market or an exchange or quotation
      system.

     

    1.6
      Call
      of Warrants by the Company.
      In its
      absolute and sole discretion, the Company shall have the right to force the
      purchase, at the Exercise Price, of any or all Warrants on or after the date
      (the “Call Date”) on which the price (“price” shall be determined by taking the
      average between the closing bid and ask prices over the preceding 5 day period)
      of the Company's common stock as reported on the Over the Counter Bulletin
      Board, or other nationally recognized exchange, as the case may be, equals
      or
      exceeds $1.00 per share and there shall have been traded during such five-day
      period not less than 50,000 shares of Common Stock (the “Condition to Call”).
      Should the Company determine that the Condition to Call has been satisfied,
      the
      Company shall provide the Holder with written notice of its intent to call
      the
      Warrants. The Holder shall have thirty (30) days from the date appearing on
      such
      notice to exercise the Warrants as specified herein and tender the Exercise
      Price to the Company. If the Holder fails to exercise the Warrants within the
      specified period, all Warrants issued in the name of Holder shall, without
      any
      other action by the Company, terminate.

    

    Notwithstanding
      any other provision of this Certificate, the Company shall not be permitted
      to
      effect a Call of the Warrants if on the Call Date the resale of the underlying
      shares by Holder have not been registered under the Securities Act of 1933,
      as
      amended, pursuant to a registration statement which is then in effect, and
      on
      such date the Holder shall be permitted to resell such shares pursuant to such
      registration statement, and the Common Stock shall be listed or quoted for
      trading on the OTC Bulletin Board, the Nasdaq Stock Market or an exchange or
      quotation system.

     

    
      
        
        

      

      
        -2-

        
          

        

      

       

    

    2. Adjustments
      of Exercise Price and Number and Kind of Conversion Shares

     

    2.1 In
      the
      event that SUUB shall at any time hereafter (a) pay a dividend in Common Stock
      or securities convertible into Common Stock; (b) subdivide or split its
      outstanding Common Stock; (c) combine its outstanding Common Stock into a
      smaller number of shares; then the number of shares to be issued immediately
      after the occurrence of any such event shall be adjusted so that the Holder
      thereafter may receive the number of shares of Common Stock it would have owned
      immediately following such action if it had exercised the Warrants immediately
      prior to such action and the Exercise Price shall be adjusted to reflect such
      proportionate increases or decreases in the number of shares.

     

    2.2 In
      case
      of any reclassification of the outstanding shares of Common Stock (other than
      a
      change covered by Section 2.1 hereof or a change which solely affects the par
      value of such shares) or in the case of any acquisition of the Company’s Common
      Stock for stock of the acquirer, consolidation or merger in which SUUB is not
      the continuing corporation and which results in any reclassification,
      replacement or capital reorganization of the outstanding shares, the Holder
      shall have the right thereafter (until the Expiration Date) to receive upon
      the
      exercise hereof, for the same aggregate Exercise Price payable hereunder
      immediately prior to such event, the kind and amount of shares of stock or
      other
      securities or property receivable upon such reclassification, capital
      reorganization, merger, acquisition for stock or consolidation, that would
      have
      been received by a Holder of the number of shares of Common Stock obtainable
      upon the exercise of the Warrants immediately prior to such event; and if any
      reclassification also results in a change in shares covered by Section 2.1,
      then
      such adjustment shall be made pursuant to both this Section 2.2 and Section
      2.1
      (without duplication). The provisions of this Section 2.2 shall similarly apply
      to successive reclassifications, capital reorganizations and mergers or
      consolidations, sales or other transfers.

     

    2.3 
      The
      Exercise Price may be adjusted for any unexercised warrants prior to the
      Expiration Date in accordance with the terms of the attached Exhibit B -
      Exercise Price Adjustments. 

     

    3. Reservation
      of Shares. SUUB
      shall at all times reserve and keep available out of its authorized but unissued
      shares of Common Stock, such number of shares of Common Stock as shall from
      time
      to time be issuable upon exercise of the Warrants. If at any time the number
      of
      authorized but unissued shares of Common Stock shall not be sufficient to permit
      the exercise of the Warrants, SUUB shall promptly seek such corporate action
      as
      may be reasonably necessary to increase its authorized but unissued shares
      of
      Common Stock to such number of shares as shall be sufficient for such
      purpose.

     

    4. Loss
      or Mutilation. Upon
      receipt of evidence reasonably satisfactory to SUUB of the ownership of and
      the
      loss, theft, destruction or mutilation of this Certificate, and of indemnity
      reasonably satisfactory to it, and (in the case of mutilation) upon surrender
      and cancellation of these Warrants, SUUB will execute and deliver in lieu
      thereof a new Certificate of like tenor as the lost, stolen, destroyed or
      mutilated Certificate.

     

    5. Representations
      and Warranties of SUUB. SUUB
      hereby represents and warrants to Holder that:

    
      
        
        

      

      
        -3-

        
          

        

      

       

    

     

    5.1 Due
      Authorization. All corporate action on the part of SUUB, its officers,
      directors and shareholders necessary for (a) the authorization, execution and
      delivery of, and the performance of all obligations of SUUB under, these
      Warrants, and (b) the authorization, issuance, reservation for issuance and
      delivery of all of the Common Stock issuable upon exercise of these Warrants,
      has been duly taken. These Warrants constitute a valid and binding obligation
      of
      SUUB enforceable in accordance with their terms, subject, as to enforcement
      of
      remedies, to applicable bankruptcy, insolvency, moratorium, reorganization
      and
      similar laws affecting creditors’ rights generally and to general equitable
      principles.

     

    5.2 Organization.
      SUUB is a corporation duly organized, validly existing and in good standing
      under the laws of the State referenced in the first paragraph of this
      Certificate and has all requisite corporate power to own, lease and operate
      its
      property and to carry on its business as now being conducted and as currently
      proposed to be conducted.

     

    5.3 Valid
      Issuance of Stock. Any shares of Common Stock issued upon exercise of these
      Warrants will be duly and validly issued, fully paid and
      non-assessable.

     

    5.4 Governmental
      Consents. All consents, approvals, orders, authorizations or registrations,
      qualifications, declarations or filings with any federal or state governmental
      authority on the part of SUUB required in connection with the consummation
      of
      the transactions contemplated herein have been obtained.

     

    6. Representations
      and Warranties of Holder .
      Holder
      hereby represents and warrants to SUUB that:

     

    6.1 Holder
      is
      acquiring the Warrants for its own account, for investment purposes
      only.

     

    6.2 Holder
      understands that an investment in the Warrants involves a high degree of risk,
      and Holder has the financial ability to bear the economic risk of this
      investment in the Warrants, including a complete loss of such investment. Holder
      has adequate means for providing for its current financial needs and has no
      need
      for liquidity with respect to this investment.

     

    6.3 Holder
      has such knowledge and experience in financial and business matters that it
      is
      capable of evaluating the merits and risks of an investment in the Warrants
      and
      in protecting its own interest in connection with this transaction.

     

    6.4 Holder
      understands that the Warrants have not been registered under the Securities
      Act
      of 1933, as amended (the “Securities
      Act”)
      or
      under any state securities laws. Holder is familiar with the provisions of
      the
      Securities Act and Rule 144 thereunder and understands that unless an
      appropriate registration statement is filed, the restrictions on transfer on
      the
      Warrants may result in Holder being required to hold the Warrants or the shares
      issued upon their exercise for an indefinite period of time.

     

    6.5 Holder
      agrees not to sell, transfer, assign, gift, create a security interest in,
      or
      otherwise dispose of, with or without consideration (collectively, “Transfer”)
      any of
      the Warrants except pursuant to an effective registration statement under the
      Securities Act or an exemption from registration. As a further condition to
      any
      such Transfer, except in the event that such Transfer is made pursuant to an
      effective registration statement under the Securities Act, if in the reasonable
      opinion of counsel to SUUB any Transfer of the Warrants by the contemplated
      transferee thereof would not be exempt from the registration and prospectus
      delivery requirements of the Securities Act, SUUB may require the contemplated
      transferee to furnish SUUB with an investment letter setting forth such
      information and agreements as may be reasonably requested by SUUB to ensure
      compliance by such transferee with the Securities Act.

    
      
        
        

      

      
        -4-

        
          

        

      

       

    

     

    7. Notices
      of Record Date

     

    In
      the
      event:

     

    7.1 SUUB
      shall take a record of the holders of its Common Stock (or other stock or
      securities at the time receivable upon the exercise of these Warrants), for
      the
      purpose of entitling them to receive any dividend or other distribution, or
      any
      right to subscribe for or purchase any shares of stock of any class or any
      other
      securities or to receive any other right; or

     

    7.2 of
      any
      consolidation or merger of SUUB with or into another corporation, any capital
      reorganization of SUUB, any reclassification of the capital stock of SUUB,
      or
      any conveyance of all or substantially all of the assets of SUUB to another
      corporation in which holders of SUUB’s stock are to receive stock, securities or
      property of another corporation; or

     

    7.3 of
      any
      voluntary dissolution, liquidation or winding-up of SUUB; or

     

    7.4 of
      any
      redemption or conversion of all outstanding Common Stock;

     

    then,
      and
      in each such case, SUUB will mail or cause to be mailed to the Holder a notice
      specifying, as the case may be, (a) the date on which a record is to be taken
      for the purpose of such dividend, distribution or right, or (b) the date on
      which such reorganization, reclassification, consolidation, merger, conveyance,
      dissolution, liquidation, winding-up, redemption or conversion is to take place,
      and the time, if any is to be fixed, as of which the holders of record of Common
      Stock (or such stock or securities as at the time are receivable upon the
      exercise of these Warrants), shall be entitled to exchange their shares of
      Common Stock (or such other stock or securities), for securities or other
      property deliverable upon such reorganization, reclassification, consolidation,
      merger, conveyance, dissolution, liquidation or winding-up. SUUB shall use
      all
      reasonable efforts to ensure such notice shall be delivered at least 15 days
      prior to the date therein specified. 

     

    8.
      Registration
      Rights.
      

     

    8.1 Definitions.
      For purposes of this Section 8, the following terms shall have the meanings
      set
      forth below:

     

    8.1.1 A
      “Blackout
      Event”
means
      any of the following: (a) the possession by SUUB of material information that
      is
      not ripe for disclosure in a registration statement or prospectus, as determined
      reasonably and in good faith by the Chief Executive Officer or the Board of
      Directors of SUUB or that disclosure of such information in the Registration
      Statement or the prospectus constituting a part thereof would be materially
      detrimental to the business and affairs of SUUB; or (b) any material engagement
      or activity by SUUB which would, in the reasonable and good faith determination
      of the Chief Executive Officer or the Board of Directors of SUUB, be materially
      adversely affected by disclosure in a registration statement or prospectus
      at
      such time. 

     

    8.1.2 “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended.

     

    
      
        
        

      

      
        -5-

        
          

        

      

       

    

    8.1.3 “Included
      Shares”
shall
      mean any Registrable Shares included in a Registration.

     

    8.1.4 “Registrable
      Shares”
shall
      mean the shares of Common Stock (or such stock or securities as at the time
      are
      receivable upon the exercise of these Warrants) issuable upon exercise of the
      Warrants and shares or securities issued as a result of stock split, stock
      dividend or reclassification of such shares.

     

    8.1.5 “Registration”
shall
      mean a registration of securities under the Securities Act pursuant to Section
      8.2 or 8.3 of this Agreement. 

     

    8.1.6 “Registration
      Period”
with
      respect to any Registration Statement the period commencing the effective date
      of the Registration Statement and ending upon withdrawal or termination of
      the
      Registration Statement.

     

    8.1.7 “Registration
      Statement”
shall
      mean the registration statement, as amended from time to time, filed with the
      SEC in connection with a Registration. 

     

    8.1.8 “SEC”
shall
      mean the Securities and Exchange Commission.

     

    8.2 Piggyback
      Registration. Unless the Registrable Shares are then included in a
      Registration Statement or can be sold under the provisions of Rule 144 without
      limitation as to volume, whether pursuant to Rule 144(k) or otherwise, if SUUB
      shall determine to register any Common Stock under the Securities Act for sale
      in connection with a public offering of Common Stock (other than pursuant to
      an
      employee benefit plan or a merger, acquisition or similar transaction), SUUB
      will give written notice thereof to Holder and will include in such Registration
      Statement any of the Registrable Shares which Holder may request be included
      (“Included
      Shares”)
      by a
      writing delivered to SUUB within 15 days after the notice given by SUUB to
      Holder; provided, however, that if the offering is to be firmly underwritten,
      and the representative of the underwriters of the offering refuse in writing
      to
      include in the offering all of the shares of Common Stock requested by SUUB
      and
      others, the shares to be included shall be allocated first to SUUB and any
      shareholder who initiated such Registration and then among the others based
      on
      the respective number of shares of Common Stock held by such persons. If SUUB
      decides not to, and does not, file a Registration Statement with respect to
      such
      Registration, or after filing determines to withdraw the same before the
      effective date thereof, SUUB will promptly so inform Holder, and SUUB will
      not
      be obligated to complete the registration of the Included Shares included
      therein. 

     

    8.3 Certain
      Covenants. In connection with any Registration: 

     

    8.3.1 SUUB
      shall take all lawful action as may be necessary to insure that the Registration
      Statement, any amendment thereto and the prospectus forming a part thereof
      does
      not contain an untrue statement of a material fact or omit to state a material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they are made, not misleading. Upon
      becoming aware of the occurrence of any event or the discovery of any facts
      during the Registration Period that make any statement of a material fact made
      in the Registration Statement or the related prospectus untrue in any material
      respect or which material fact is omitted from the Registration Statement or
      related prospectus that requires the making of any changes in the Registration
      Statement or related prospectus so that it will not contain any untrue statement
      of a material fact or omit to state a material fact necessary to make the
      statements therein, in light of the circumstances under which they are made,
      not
      misleading (taking into account any prior amendments or supplements), SUUB
      shall
      promptly notify Holder, and, subject to the provisions of Section 8.5, as soon
      as reasonably practicable prepare (but, subject to Section 8.5, in no event
      more
      than five business days in the case of a supplement or seven business days
      in
      the case of a post-effective amendment) and file with the SEC a supplement
      or
      post-effective amendment to the Registration Statement or the related prospectus
      or file any other required document so that, as thereafter delivered to a
      purchaser of Shares from Holder, such prospectus will not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make
      the statements therein, in light of the circumstances under which they were
      made, not misleading.

    
      
        
        

      

      
        -6-

        
          

        

      

       

    

     

    8.3.2 SUUB
      shall promptly notify Holder upon the occurrence of any of the following events
      in respect of the Registration Statement or the prospectus forming a part
      thereof: (a) the issuance by the SEC or any other federal or state governmental
      authority of any stop order suspending the effectiveness of the Registration
      Statement or the initiation of any proceedings for that purpose; or (b) the
      receipt of any notification with respect to the suspension of the qualification
      or exemption from qualification of any of the Shares for sale in any
      jurisdiction or the initiation or threatening of any proceeding for such
      purpose.

     

    8.3.3 SUUB
      shall furnish to Holder with respect to the Included Shares registered under
      the
      Registration Statement (and to each underwriter, if any, of such Shares) such
      number of copies of prospectuses and such other documents as Holder may
      reasonably request, in order to facilitate the public sale or other disposition
      of all or any of the Included Shares by Holder pursuant to the Registration
      Statement.

     

    8.3.4 SUUB
      shall bear and pay all expenses incurred by it and Holder (other than
      underwriting discounts, brokerage fees and commissions and fees and expenses
      of
      more than one law firm) in connection with the registration of the Shares
      pursuant to the Registration Statement. 

     

    8.3.5 As
      a
      condition to including Registrable Shares in a Registration Statement, Holder
      must provide to SUUB such information regarding itself, the Registrable Shares
      held by it and the intended method of distribution of such Shares as shall
      be
      required to effect the registration of the Registrable Shares and, if the
      offering is being underwritten, Holder must provide such powers of attorney,
      indemnities and other documents as may be reasonably requested by the managing
      underwriter.

     

    8.3.6 Following
      the effectiveness of the Registration Statement, upon receipt from SUUB of
      a
      notice that the Registration Statement contains an untrue statement of material
      fact or omits to state any material fact required to be stated therein or
      necessary to make the statements therein not misleading in light of the
      circumstances under which they were made, Holder will immediately discontinue
      disposition of Included Shares pursuant to the Registration Statement until
      SUUB
      notifies Holder that it may resume sales of Included Shares and, if necessary,
      provides to Holder copies of the supplemental or amended prospectus.

     

    8.4 Blackout
      Event. SUUB shall not be obligated to file a post-effective amendment or
      supplement to the Registration Statement or the prospectus constituting a part
      thereof during the continuance of a Blackout Event; provided, however, that
      no
      Blackout Event may be deemed to exist for more than 60 days. Without the express
      written consent of Holder, if required to permit the continued sale of Shares
      by
      Holder, a post-effective amendment or supplement to Registration Statement
      or
      the prospectus constituting a part thereof must be filed no later than the
      61st
      day
      following commencement of a Blackout Event.

    
      
        
        

      

      
        -7-

        
          

        

      

       

    

     

    8.5 
      Rule
      144. With a view to making available to Holder the benefits of Rule 144,
      SUUB agrees, until such time as Holder can sell all remaining Registrable Shares
      under the provisions Rule 144(k), to:

     

    8.5.1.1 comply
      with the provisions of paragraph (c)(1) of Rule 144; and

     

    8.5.1.2 file
      with
      the SEC in a timely manner all reports and other documents required to be filed
      by SUUB pursuant to Section 13 or 15(d) under the Exchange Act; and, if at
      any
      time it is not required to file such reports but in the past had been required
      to or did file such reports, it will, upon the request of a Purchaser, make
      available other information as required by, and so long as necessary to permit
      sales of its Shares pursuant to, Rule 144.

     

    8.6 SUUB
      Indemnification. SUUB agrees to indemnify and hold harmless Holder, and its
      officers, directors and agents, and
      each
      person, if any, who controls Holder within the meaning of Section 15 of the
      Securities Act or Section 20 of the Exchange Act from and against any and all
      losses, claims, damages and liabilities caused by (a) any violation or alleged
      violation by SUUB of the Securities Act, Exchange Act, any state securities
      laws
      or any rule or regulation promulgated under the Securities Act, Exchange Act
      or
      any state securities laws, (b) any untrue statement or alleged untrue statement
      of a material fact contained in any registration statement or prospectus
      relating to the Included Shares (as amended or supplemented if SUUB shall have
      furnished any amendments or supplements thereto) or any preliminary prospectus,
      or (c) caused by any omission or alleged omission to state therein a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading in light of the circumstances under which they were made, except
      insofar as such losses, claims, damages or liabilities are caused by any such
      untrue statement or omission or alleged untrue statement or omission based
      upon
      information furnished in writing to SUUB by Holder or on Holder’s behalf
      expressly for use therein.

     

    8.7 Holder
      Indemnification. Holder agrees to indemnify and hold harmless SUUB, its
      officers, directors and agents and each person, if any, who controls SUUB within
      the meaning of either Section 15 of the Securities Act or Section 20 of the
      Exchange Act to the same extent as the foregoing indemnity from SUUB to Holder,
      but only with respect to information furnished in writing by Holder or on
      Holder’s behalf expressly for use in any registration statement or prospectus
      relating to the Registrable Shares, or any amendment or supplement thereto,
      or
      any preliminary prospectus. 

     

    8.8 Indemnification
      Procedures. In case any proceeding (including any governmental
      investigation) shall be instituted involving any person in respect of which
      indemnity may be sought pursuant to this Section 9, such person (an
“Indemnified
      Party”)
      shall
      promptly notify the person against whom such indemnity may be sought (the
“Indemnifying
      Party”)
      in
      writing and the Indemnifying Party shall assume the defense thereof, including
      the employment of counsel reasonably satisfactory to such Indemnified Party,
      and
      shall assume the payment of all fees and expenses; provided that the failure
      of
      any Indemnified Party so to notify the Indemnifying Party shall not relieve
      the
      Indemnifying Party of its obligations hereunder except to the extent (and only
      to the extent that) that the Indemnifying Party is materially prejudiced by
      such
      failure to notify. In any such proceeding, any Indemnified Party shall have
      the
      right to retain its own counsel, but the fees and expenses of such counsel
      shall
      be at the expense of such Indemnified Party unless (a) the Indemnifying Party
      and the Indemnified Party shall have mutually agreed to the retention of such
      counsel or (b) in the reasonable judgment of such Indemnified Party
      representation of both parties by the same counsel would be inappropriate due
      to
      actual or potential differing interests between them. It is understood that
      the
      Indemnifying Party shall not, in connection with any proceeding or related
      proceedings in the same jurisdiction, be liable for the reasonable fees and
      expenses of more than one separate firm of attorneys (in addition to any local
      counsel) at any time for all such Indemnified Parties (including in the case
      of
      Holder, all of its officers, directors and controlling persons) and that all
      such fees and expenses shall be reimbursed as they are incurred. In the case
      of
      any such separate firm for the Indemnified Parties, the Indemnified Parties
      shall designate such firm in writing to the Indemnifying Party. The Indemnifying
      Party shall not be liable for any settlement of any proceeding effected without
      its written consent (which consent shall not be unreasonably withheld or
      delayed), but if settled with such consent, or if there be a final judgment
      for
      the plaintiff, the Indemnifying Party shall indemnify and hold harmless such
      Indemnified Parties from and against any loss or liability (to the extent stated
      above) by reason of such settlement or judgment. No Indemnifying Party shall,
      without the prior written consent of the Indemnified Party, effect any
      settlement of any pending or threatened proceeding in respect of which any
      Indemnified Party is or could have been a party and indemnity could have been
      sought hereunder by such Indemnified Party, unless such settlement includes
      an
      unconditional release of such Indemnified Party from all liability arising
      out
      of such proceeding.

    
      
        
        

      

      
        -8-

        
          

        

      

       

    

     

    8.9 Contribution.
      To the extent any indemnification by an Indemnifying Party is prohibited or
      limited by law, the Indemnifying Party agrees to make the maximum contribution
      with respect to any amounts for which, he, she or it would otherwise be liable
      under this Section 9 to the fullest extent permitted by law; provided, however,
      that (a) no contribution shall be made under circumstances where a party would
      not have been liable for indemnification under this Section 9 and (b) no seller
      of Registrable Securities guilty of fraudulent misrepresentation (within the
      meaning used in the Securities Act) shall be entitled to contribution from
      any
      party who was not guilty of such fraudulent misrepresentation.

     

    9.  Mergers,
      Consolidations, etc.

     

    10.1
      Except as may otherwise be provided, if the Company shall merge or consolidate
      with another corporation, the Holder shall thereafter have the right, upon
      exercise of the rights specified in this Warrant Agreement and payment of the
      Exercise Price, to receive solely the kind and amount of shares of stock
      (including, if applicable, Common Stock), other securities, property or cash
      or
      any combination thereof receivable by a holder of the number of shares of Common
      Stock for which this Warrant Agreement might have been exercised immediately
      prior to such merger or consolidation (assuming, if applicable, that the holder
      of such Common Stock failed to exercise its rights of election, if any, as
      to
      the kind or amount of shares of stock, other securities, property or cash or
      combination thereof receivable upon such merger or consolidation). 

    

    10.2
      In
      case of any reclassification or change of the shares of Common Stock issuable
      upon exercise of (other than elimination or par value, a change in par value,
      or
      from par value to no par value, or as the result of a subdivision or combination
      of shares (which is provided for elsewhere herein), but including any
      reclassification of the shares of Common stock into two (2) or more classes
      or
      series of shares) or in case of any merger or consolidation of another
      corporation into the Company in which the Company is the surviving corporation
      and in which there is a reclassification or change of the shares of Common
      Stock
      (other than a change in par value, or from par value to no par value, or as
      a
      result of a subdivision or combination (which is provided for elsewhere herein),
      but including any reclassification of the shares of Common Stock, the Holder
      shall thereafter have the right, upon exercise hereof and payment of the
      Exercise Price, to receive solely the kind and amount of shares of stock
      (including, if applicable, Common Stock), other securities, property or cash
      or
      any combination thereof receivable upon such reclassification, change, merger
      or
      consolidation by a holder of the number of shares of Common Stock for which
      the
      rights specified in this Warrant Agreement might have been exercised immediately
      prior to such reclassification, change, merger or consolidation (assuming,
      if
      applicable, that the holder of such Common Stock failed to exercise its rights
      of election, if any, as to the kind or amount of shares of stock, other
      securities, property or cash or combination thereof receivable upon such
      reclassification, change, merger or consolidation).

    
      
        
        

      

      
        -9-

        
          

        

      

       

    

     

    10. Acquisition.
      In
      the
      event the Company is acquired by another entity, the Holder at the closing
      of
      the acquisition will have the right to exchange these Warrants for Warrants
      to
      be issued by the acquirer for an amount of shares, at an exercise price and
      on
      such terms as would be necessary so that the Holder of such replacement Warrants
      would have the same exercise terms (including the exercise price) as exist
      for
      these Warrants and upon exercise of such replacement Warrants would receive
      the
      same number of shares that the Holder of the number of shares of Common Stock
      obtainable upon exercise of these Warrants immediately prior to such event
      would
      have received. A Warrant Exchange Agreement between Holder and the acquirer
      will
      be part of the closing documents at the time of the close of the
      acquisition.

     

    11. Severability.
      If
      any
      term, provision, covenant or restriction of these Warrants is held by a court
      of
      competent jurisdiction to be invalid, void or unenforceable, the remainder
      of
      the terms, provisions, covenants and restrictions of these Warrants shall remain
      in full force and effect and shall in no way be affected, impaired or
      invalidated.

     

    12. Notices.
      All
      notices, requests, consents and other communications required hereunder shall
      be
      in writing and shall be effective when delivered or, if delivered by registered
      or certified mail, postage prepaid, return receipt requested, shall be effective
      on the third day following deposit in United States mail: to the Holder, at
      Holder, _______________________, with a copy to __________________; and if
      addressed to SUUB, at Sub-Urban Brands, Inc., 8723
      Bellanca Building A, Los Angeles, CA 90045,
      or such
      other address as Holder or SUUB may designate in writing.

     

    13. No
      Rights as Shareholder. The
      Holder shall have no rights as a shareholder of SUUB with respect to the shares
      issuable upon exercise of the Warrants until the receipt by SUUB of all of
      the
      Exercise Documents. 

     

    
      	 	 	 
	 	Sub-Urban
              Brands,
              Inc.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Joseph
              Shortal, Chief Executive
              Officer

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

       

    

    EXHIBIT
      “A”

     

    NOTICE
      OF EXERCISE

     

    (To
      be
      signed only upon exercise of the Warrants)

     

    To: Sub-Urban
      Brands, Inc.

     

    The
      undersigned hereby elects to purchase shares of Common Stock (the “Warrant
      Shares”)
      of
      Sub-Urban
      Brands, Inc.
      (“SUUB”),
      pursuant to the terms of the enclosed warrant certificate (the “Certificate”).
      The
      undersigned tenders herewith payment of the exercise price pursuant to the
      terms
      of the Certificate. 

     

    The
      undersigned hereby represents and warrants to, and agrees with, SUUB as follows:
      

     

    1. Holder
      is
      acquiring the Warrant Shares for its own account, for investment purposes
      only.

     

    2. Holder
      understands that an investment in the Warrant Shares involves a high degree
      of
      risk, and Holder has the financial ability to bear the economic risk of this
      investment in the Warrant Shares, including a complete loss of such investment.
      Holder has adequate means for providing for its current financial needs and
      has
      no need for liquidity with respect to this investment.

     

    3. Holder
      has such knowledge and experience in financial and business matters that it
      is
      capable of evaluating the merits and risks of an investment in the Warrant
      Shares and in protecting its own interest in connection with this
      transaction.

     

    4. Holder
      understands that the Warrant Shares have not been registered under the
      Securities Act or under any state securities laws. Holder is familiar with
      the
      provisions of the Securities Act and Rule 144 thereunder and understands that
      the restrictions on transfer on the Warrant Shares may result in Holder being
      required to hold the Warrant Shares for an indefinite period of
      time.

     

    5. Holder
      agrees not to sell, transfer, assign, gift, create a security interest in,
      or
      otherwise dispose of, with or without consideration (collectively, “Transfer”)
      any of
      the Warrant Shares except pursuant to an effective registration statement under
      the Securities Act or an exemption from registration. As a further condition
      to
      any such Transfer, except in the event that such Transfer is made pursuant
      to an
      effective registration statement under the Securities Act, if in the reasonable
      opinion of counsel to SUUB any Transfer of the Warrant Shares by the
      contemplated transferee thereof would not be exempt from the registration and
      prospectus delivery requirements of the Securities Act, SUUB may require the
      contemplated transferee to furnish SUUB with an investment letter setting forth
      such information and agreements as may be reasonably requested by SUUB to ensure
      compliance by such transferee with the Securities Act.

    
      
        
        

      

      
        -11-

        
          

        

      

       

    

    Each
      certificate evidencing the Warrant Shares will bear the following
      legend:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS AND
      MAY NOT BE EXERCISED, SOLD, PLEDGED OR TRANSFERRED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE ACT OR UNLESS
      AN
      EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

     

    6. Immediately
      following this exercise of Warrants, if as of the date of exercise SUUB has
      a
      class of securities registered under Section 12 of the Securities Exchange
      Act
      of 1934, as amended, the undersigned will not beneficially own five percent
      (5%)
      or more of the then outstanding Common Stock of SUUB (based on the number of
      shares outstanding set forth in the most recent periodic report filed by SUUB
      with the Securities and Exchange Commission and any additional shares which
      have
      been issued since that date of which Holder is aware have been
      issued).

     

    Number
      of
      Warrants Exercised: ______________

     

    Net
      Exercise ____ Yes ___ No 

     

    Dated:
      ____________________   

    

    ____________________________________

    
      
        
        

      

      
        -12-

        
          

        

      

       

    

    Exhibit
      B - Exercise Price Adjustments

    

    1.
      Exercise Price Adjustments of Warrants for Certain Dilutive Issuances, Splits
      and Combinations. The Exercise Price of these Warrants shall be subject to
      adjustment from time to time as follows:

    

    (i)
      (A)
      If the Corporation shall issue, after the date upon which any of these Warrants
      were first issued (the "Purchase Date"), any "Additional Stock" (as hereinafter
      defined) without consideration or for a consideration per share less than the
      Exercise Price for such series in effect immediately prior to the issuance
      of
      such Additional Stock, the Exercise Price for such series in effect immediately
      prior to each such issuance shall forthwith (except as otherwise provided in
      this clause (i) be adjusted to a price determined by multiplying such Exercise
      Price by a fraction, the numerator of which shall be the number of shares of
      Common Stock outstanding immediately prior to such issuance (including shares
      of
      Common Stock deemed to be issued pursuant to subsection 1 (i)(E)(1) or (2),
      but
      not including shares excluded from the definition of Additional Stock by
      subsection 1 (ii)(B)) plus the number of shares of Common Stock that the
      aggregate consideration received by the Corporation for such issuance would
      purchase at such Exercise Price; and the denominator of which shall be the
      number of shares of Common Stock outstanding immediately prior to such issuance
      (including shares of Common Stock deemed to be issued pursuant to subsection
      1(i)(E)(1) or (2), but not including shares excluded from the definition of
      Additional Stock by subsection 1(ii) (B)) plus the number of shares of such
      Additional Stock. However, the foregoing calculation shall not take into account
      shares deemed issued pursuant to subsection 1 (i) (E) on account of options,
      rights or convertible or exchangeable securities (or the actual or deemed
      consideration therefore), except to the extent (i) such options, rights or
      convertible or exchangeable securities have been exercised, converted or
      exchanged or (ii) the consideration to be paid upon such exercise, conversion
      or
      exchange per share of underlying Common Stock is less than or equal to the
      per
      share consideration for the Additional Stock that has given rise to the Exercise
      Price adjustment being calculated.

    

    (B)
      No
      adjustment of the Exercise Price for these Warrants shall be made in an amount
      less than one cent per share, provided that any adjustments that are not
      required to be made by reason of this sentence shall be carried forward and
      shall be either taken into account in any subsequent adjustment made prior
      to
      three (3) years from the date of the event giving rise to the adjustment being
      carried forward, or shall be made at the end of three (3) years from the date
      of
      the event giving rise to the adjustment being carried forward. Except to the
      limited extent provided for in subsections 1 (i)(E)(3) and (4), no adjustment
      of
      such Exercise Price pursuant to this subsection 1(i) shall have the effect
      of
      increasing the Exercise Price above the Exercise Price in effect immediately
      prior to such adjustment.

    

    (C)
      In
      the case of the issuance of Common Stock for cash, the consideration shall
      be
      deemed to be the amount of cash paid therefore before deducting any reasonable
      discounts, commissions or other expenses allowed, paid or incurred by the
      Corporation for any underwriting or otherwise in· connection with the issuance
      and sale thereof.

    
      
        
        

      

      
        -13-

        
          

        

      

       

    

    

    (D)
      In
      the case of the issuance of the Common Stock for a consideration in whole or
      in
      part other than cash, the consideration other than cash shall be deemed to
      be
      the fair value thereof as determined by the Board of Directors irrespective
      of
      any accounting treatment.

    

    (E)
      In
      the case of the issuance (whether before, on or after the applicable Purchase
      Date) of options to purchase or rights to subscribe for Common Stock, securities
      by their terms convertible into or exchangeable for Common Stock or options
      to
      purchase or rights to subscribe for such convertible or exchangeable securities,
      the following provisions shall apply for all purposes of this subsection 1(i)
      and subsection 1(ii):

    

    (1)
      The
      aggregate maximum number of shares of Common Stock deliverable upon exercise
      (to
      the extent then exercisable) of such options to purchase or rights to subscribe
      for Common Stock shall be deemed to have been issued at the time such options
      or
      rights were issued and for a consideration equal to the consideration
      (determined in the manner provided in subsections 1(i)(C) and (D)), if any,
      received by the Corporation upon the issuance of such options or rights plus
      the
      minimum exercise price provided in such options or rights (without taking into
      account potential antidilution adjustments) for the Common Stock covered
      thereby.

    

    (2)
      The
      aggregate maximum number of shares of Common Stock deliverable upon conversion
      of, or in exchange (to the extent then convertible or exercisable) for, any
      such
      convertible or exchangeable securities or upon the exercise of options to
      purchase or rights to subscribe for such convertible or exchangeable securities
      and subsequent conversion or exchange thereof shall be deemed to have been
      issued at the time such securities were issued or such options or rights were
      issued and for a consideration equal to the consideration, if any, received
      by
      the Corporation for any such securities and related options or rights (excluding
      any cash received on account of accrued interest or accrued dividends), plus
      the
      minimum additional consideration, if any, to be received by the Corporation
      (without taking into account potential antidilution adjustments) upon the
      conversion or exchange of such securities or the exercise of any related options
      or rights (the consideration in each case to be determined in the manner
      provided in subsections 1(i) (C) and (D)).

    

    (3)
      In
      the event of any change in the number of shares of Common Stock deliverable
      or
      in the consideration payable to the Corporation upon exercise of such options
      or
      rights or upon conversion of or in exchange for such convertible or exchangeable
      securities, including, but not limited to, a change resulting from the
      antidilution provisions thereof, the Exercise Price of these Warrants, to the
      extent in any way affected by or computed using such options, rights or
      securities, shall be recomputed to reflect such change, but no further
      adjustment shall be made for the actual issuance of Common Stock or any payment
      of such consideration upon the exercise of any such options or rights or the
      conversion or exchange of such securities.

    

    (4)
      Upon
      the expiration of any such options or rights, the termination of any such rights
      to convert or exchange or the expiration of any options or rights related to
      such convertible or exchangeable securities, the Exercise Price of these
      Warrants, to the extent in any way affected by or computed using such options,
      rights or securities or options or rights related to such securities, shall
      be
      recomputed to reflect the issuance of only the number of shares of Common Stock
      (and convertible or exchangeable securities that remain in effect) actually
      issued upon the exercise of such options or rights, upon the conversion or
      exchange of such securities or upon the exercise of the options or rights
      related to such securities.

    
      
        
        

      

      
        -14-

        
          

        

      

       

    

    (5)
      The
      number of shares of Common Stock deemed issued and the consideration deemed
      paid
      therefore pursuant to subsections 1 (i) (E) (1) and (2) shall be appropriately
      adjusted to reflect any change, termination or expiration of the type described
      in either subsection 1 (i) (E) (3) or (4).

     

    (ii)
      Additional Stock shall mean any shares of Common Stock issued (or deemed to
      have
      been issued pursuant to subsection 1 (i) (E)) by the Corporation after the
      Purchase Date other than:

    

    (A)
      Common Stock issued pursuant to a transaction described in subsection 1 (iii)
      hereof;

    

    (B)
      (i)
      Up to 4,000,000 shares of Common Stock issuable or issued to employees,
      consultants and/or directors (as adjusted for any stock splits, stock dividends,
      recapitalizations or the like), plus (ii) up to 15% of the total outstanding
      shares of Common Stock and shares of Common Stock issuable upon conversion
      of,
      or in exchange for, any convertible or exchangeable securities and/or upon
      exercise of outstanding options to purchase shares of Common Stock, on a fully
      diluted basis, to persons with whom Company has or will have a strategic
      business relationship of the Corporation, directly or pursuant to a stock option
      plan or restricted stock plan approved by the Board of Directors of the
      Corporation.

    

    (iii)
      In
      the event the Corporation should at any time or from time to time after the
      Purchase Date fix a record date for the effectuation of a split or subdivision
      of the outstanding shares of Common Stock or the determination of holders of
      Common Stock entitled to receive a dividend or other distribution payable in
      additional shares of Common Stock or other securities or rights convertible
      into, or entitling the holder thereof to receive directly or indirectly,
      additional shares of Common Stock (hereinafter referred to as “Common Stock
      Equivalents") without payment of any consideration by such holder for the
      additional shares of Common Stock or the Common Stock Equivalents (including
      the
      additional shares of Common Stock issuable upon conversion or exercise thereof),
      then, as of such record date (or the date of such dividend distribution, split
      or subdivision if no record date is fixed), the Exercise Price of these Warrants
      shall be appropriately decreased so that the number of shares of Common Stock
      issuable on conversion of each share of such series shall be increased in
      proportion to such increase of the aggregate of shares of Common Stock
      outstanding and those issuable with respect to such Common Stock
      Equivalents.

    

    (iv)
      If
      the number of shares of Common Stock outstanding at any time after the Purchase
      Date is decreased by a combination of the outstanding shares of Common Stock,
      then, following the record date of such combination, the Exercise Price for
      these Warrants shall be appropriately increased so that the number of shares
      of
      Common Stock issuable on conversion of each share of such series shall be
      decreased in proportion to such decrease in outstanding shares.

    
      
        
        

      

      
        -15-Dated:
      November
      _____, 2006

     

    NEITHER
      THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN
      REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”),
      AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS.

     

    
      	No. VC-__	
               $500,000

            

    

     

    SUB-URBAN
      BRANDS, INC.

     

    Subordinated
      Promissory Note 

     

    Due
      Date: as set forth herein 

     

    This
      Subordinated Promissory Note (the “Note”)
      is
      issued by Sub-Urban Brands, Inc., a
      Nevada
      corporation (the “Obligor”),
      to
      ______________, (the “Holder.
      

     

    FOR
      VALUE RECEIVED,
      the
      Obligor hereby promises to pay to the Holder or its successors and assigns
      the
      principal sum of Five Hundred Thousand Dollars ($500,000) together with accrued
      but unpaid interest on August
      ____, 2007 (the
      “Maturity
      Date”),
      in
      accordance with the following terms:

     

    Interest.
      Interest shall accrue on the outstanding principal balance hereof at an annual
      rate equal to eight percent (8%). Interest shall be calculated on the basis
      of a
      360-day year and the actual number of days elapsed, to the extent permitted
      by
      applicable law. Interest hereunder will be paid on the Maturity Date to the
      Holder or its assignee (as defined in Section
      5)
      in
      whose name this Note is registered on the records of the Obligor regarding
      registration and transfers of Notes (the “Note
      Register”).

     

    This
      Note
      is subject to the following additional provisions:

     

    Section
      1. This
      Note
      is exchangeable for an equal aggregate principal amount of Notes of different
      authorized denominations, as requested by the Holder surrendering the same.
      No
      service charge will be made for such registration of transfer or
      exchange.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      2. Events
      of Default.

     

    (a) An
      “Event
      of Default”,
      wherever used herein, means any one of the following events (whatever the reason
      and whether it shall be voluntary or involuntary or effected by operation of
      law
      or pursuant to any judgment, decree or order of any court, or any order, rule
      or
      regulation of any administrative or governmental body):

     

    (i) Any
      default in the payment of the principal of, interest on or other charges in
      respect of this Note, free of any claim of subordination, as and when the same
      shall become due and payable (whether on a Conversion Date or the Maturity
      Date
      or by acceleration or otherwise);

     

    (ii) The
      Obligor shall fail to observe or perform any other covenant, agreement or
      warranty contained in, or otherwise commit any breach or default of any
      provision of this Note (except as may be covered by Section
      2(a)(i)
      hereof)
      or any Transaction Document (as defined in Section
      5)
      which
      is not cured with in the time prescribed, including without limitation Obligor’s
      obligation to timely deliver shares of Common Stock upon conversion of this
      Note
      and exercise of the Warrant;

     

    (iii) The
      Obligor or any subsidiary of the Obligor shall commence, or there shall be
      commenced against the Obligor or any subsidiary of the Obligor under any
      applicable bankruptcy or insolvency laws as now or hereafter in effect or any
      successor thereto, or the Obligor or any subsidiary of the Obligor commences
      any
      other proceeding under any reorganization, arrangement, adjustment of debt,
      relief of debtors, dissolution, insolvency or liquidation or similar law of
      any
      jurisdiction whether now or hereafter in effect relating to the Obligor or
      any
      subsidiary of the Obligor or there is commenced against the Obligor or any
      subsidiary of the Obligor any such bankruptcy, insolvency or other proceeding
      which remains undismissed for a period of 61 days; or the Obligor or any
      subsidiary of the Obligor is adjudicated insolvent or bankrupt; or any order
      of
      relief or other order approving any such case or proceeding is entered; or
      the
      Obligor or any subsidiary of the Obligor suffers any appointment of any
      custodian, private or court appointed receiver or the like for it or any
      substantial part of its property which continues undischarged or unstayed for
      a
      period of sixty one (61) days; or the Obligor or any subsidiary of the Obligor
      makes a general assignment for the benefit of creditors; or the Obligor or
      any
      subsidiary of the Obligor shall fail to pay, or shall state that it is unable
      to
      pay, or shall be unable to pay, its debts generally as they become due; or
      the
      Obligor or any subsidiary of the Obligor shall call a meeting of its creditors
      with a view to arranging a composition, adjustment or restructuring of its
      debts; or the Obligor or any subsidiary of the Obligor shall by any act or
      failure to act expressly indicate its consent to, approval of or acquiescence
      in
      any of the foregoing; or any corporate or other action is taken by the Obligor
      or any subsidiary of the Obligor for the purpose of effecting any of the
      foregoing;

     

    (iv) The
      Obligor or any subsidiary of the Obligor shall default in any of its obligations
      under any other Note or any mortgage, credit agreement or other facility,
      indenture agreement, factoring agreement or other instrument under which there
      may be issued, or by which there may be secured or evidenced any indebtedness
      for borrowed money or money due under any long term leasing or factoring
      arrangement of the Obligor or any subsidiary of the Obligor in an amount
      exceeding $200,000, whether such indebtedness now exists or shall hereafter
      be
      created and such default shall result in such indebtedness becoming or being
      declared due and payable prior to the date on which it would otherwise become
      due and payable;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (v) The
      Obligor or any subsidiary of the Obligor shall be a party to any Change of
      Control Transaction (as defined in Section
      5);
       

     

    (b) During
      the time that any portion of this Note is outstanding, if any Event of Default
      has occurred and shall continue for a period of ten (10) days after a notice
      of
      such default has been delivered by the Holder to the Obligor (the “Notice
      Period”),
      the
      full principal amount of this Note, together with interest and other amounts
      owing in respect thereof, to the date of acceleration shall become at the
      Holder's election, immediately due and payable in cash, provided
      however,
      the
      Holder may request (but shall have no obligation to request) payment of such
      amounts in Common Stock of the Obligor. The Holder need not provide and the
      Obligor hereby waives any presentment, demand, protest or other notice of any
      kind, and the Holder may immediately and without expiration of any grace period
      (other than the Notice Period) enforce any and all of its rights and remedies
      hereunder and all other remedies available to it under applicable law. Such
      declaration may be rescinded and annulled by Holder at any time prior to payment
      hereunder. No such rescission or annulment shall affect any subsequent Event
      of
      Default or impair any right consequent thereon 

     

    Section
      3. Notices.
       Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms hereof must be in writing and will be deemed to have
      been
      delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
      when
      sent by facsimile (provided confirmation of transmission is mechanically or
      electronically generated and kept on file by the sending party); or (iii) one
      (1) trading day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the same.
      The
      addresses and facsimile numbers for such communications shall be:

     

    
      	
              If
                to the Company, to:

            	
              Sub-Urban
                Brands, Inc. 

            
	 	
              8723
                Bellanca Ave, Bldg A

            
	 	
              Los
                Angeles, CA 90045

            
	 	
              Attention:
                Joe Shortal, CEO

            
	 	
              Telephone: 310.670.0132

            
	 	
              Facsimile: 

            
	 	 
	
              If
                to the Holder:

            	 
	 	 
	 	 
	 	 
	 	 

    

    

    or
      at
      such other address and/or facsimile number and/or to the attention of such
      other
      person as the recipient party has specified by written notice given to each
      other party three (3) business days prior to the effectiveness of such change.
      Written confirmation of receipt (i) given by the recipient of such notice,
      consent, waiver or other communication, (ii) mechanically or electronically
      generated by the sender's facsimile machine containing the time, date, recipient
      facsimile number and an image of the first page of such transmission or (iii)
      provided by a nationally recognized overnight delivery service, shall be
      rebuttable evidence of personal service, receipt by facsimile or receipt from
      a
      nationally recognized overnight delivery service in accordance with clause
      (i),
      (ii) or (iii) above, respectively.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      4. Definitions.
      For the
      purposes hereof, the following terms shall have the following
      meanings:

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday in the United States or a day on which banking institutions are
      authorized or required by law or other government action to close.

     

    “Change
      of Control Transaction”
means
      the occurrence of (a) an acquisition after the date hereof by an individual
      or
      legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the
      Exchange Act) of effective control (whether through legal or beneficial
      ownership of capital stock of the Obligor, by contract or otherwise) of in
      excess of fifty percent (50%) of the voting securities of the Obligor (except
      that the acquisition of voting securities by the Holder shall not constitute
      a
      Change of Control Transaction for purposes hereof), (b) a replacement at one
      time or over time of more than one-half of the members of the board of directors
      of the Obligor which is not approved by a majority of those individuals who
      are
      members of the board of directors on the date hereof (or by those individuals
      who are serving as members of the board of directors on any date whose
      nomination to the board of directors was approved by a majority of the members
      of the board of directors who are members on the date hereof), (c) the merger,
      consolidation or sale of fifty percent (50%) or more of the assets of the
      Obligor or any subsidiary of the Obligor in one or a series of related
      transactions with or into another entity, or (d) the execution by the Obligor
      of
      an agreement to which the Obligor is a party or by which it is bound, providing
      for any of the events set forth above in (a), (b) or (c).

     

    “Common
      Stock”
means
      the common stock, par value $0.001, of the Obligor and stock of any other class
      into which such shares may hereafter be changed or reclassified.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Original
      Issue Date”
shall
      mean the date of the first issuance of this Note regardless of the number of
      transfers and regardless of the number of instruments, which may be issued
      to
      evidence such Note.

     

    “Person”
means
      a
      corporation, an association, a partnership, organization, a business, an
      individual, a government or political subdivision thereof or a governmental
      agency.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    “Trading
      Day”
means
      a
      day on which the shares of Common Stock are quoted on the OTC or quoted or
      traded on such Subsequent Market on which the shares of Common Stock are then
      quoted or listed; provided, that in the event that the shares of Common Stock
      are not listed or quoted, then Trading Day shall mean a Business
      Day.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Transaction
      Documents”
means
      the any other agreement delivered in connection with this note, including,
      without limitation, the Warrant Agreement of even date herewith.

     

    Section
      5. Except
      as
      expressly provided herein, no provision of this Note shall alter or impair
      the
      obligations of the Obligor, which are absolute and unconditional, to pay the
      principal of, interest and other charges (if any) on, this Note at the time,
      place, and rate, and in the coin or currency, herein prescribed. This Note
      is a
      direct obligation of the Obligor. This Note ranks pari passu with all other
      Notes (other than notes and other instruments issued in connection with the
      ABF
      Loan) now or hereafter issued under the terms set forth herein. As long as
      this
      Note is outstanding, the Obligor shall not and shall cause their subsidiaries
      not to, without the consent of the Holder (which shall not be unreasonably
      withheld), (i) amend its certificate of incorporation, bylaws or other charter
      documents so as to adversely affect any rights of the Holder; (ii) repay,
      repurchase or offer to repay, repurchase or otherwise acquire shares of its
      Common Stock or other equity securities other than as to the Underlying Shares
      to the extent permitted or required under the Transaction Documents; or (iii)
      enter into any agreement with respect to any of the foregoing. 

     

    Section
      6. This
      Note
      shall not entitle the Holder to any of the rights of a stockholder of the
      Obligor, including without limitation, the right to vote, to receive dividends
      and other distributions, or to receive any notice of, or to attend, meetings
      of
      stockholders or any other proceedings of the Obligor, unless and to the extent
      converted into shares of Common Stock in accordance with the terms
      hereof.

     

    Section
      7. If
      this
      Note is mutilated, lost, stolen or destroyed, the Obligor shall execute and
      deliver, in exchange and substitution for and upon cancellation of the mutilated
      Note, or in lieu of or in substitution for a lost, stolen or destroyed Note,
      a
      new Note for the principal amount of this Note so mutilated, lost, stolen or
      destroyed but only upon receipt of evidence of such loss, theft or destruction
      of such Note, and of the ownership hereof, and indemnity, if requested, all
      reasonably satisfactory to the Obligor.

     

    Section
      8. Except
      for the ABF Loan and the Vision Opportunity Master Fund Ltd. Loan (in the
      principal amount of $750,000), no indebtedness of the Obligor is senior to
      this
      Note in right of payment, whether with respect to interest, damages or upon
      liquidation or dissolution or otherwise. Without the Holder’s consent, the
      Obligor will not and will not permit any of their subsidiaries to, directly
      or
      indirectly, enter into, create, incur, assume or suffer to exist any
      indebtedness of any kind, on or with respect to any of its property or assets
      now owned or hereafter acquired or any interest therein or any income or profits
      there from that is senior in any respect to the obligations of the Obligor
      under
      this Note.

     

    Section
      9. This
      Note
      shall be governed by and construed in accordance with the laws of the State
      of
      New York, without giving effect to conflicts of laws thereof. Each of the
      parties consents to the jurisdiction of the Courts of the State of New York
      sitting in New York County, New York and the U.S. District Court for the
      Southern District of New York in connection with any dispute arising under
      this
      Note and hereby waives, to the maximum extent permitted by law, any objection,
      including any objection based on forum non conveniens
      to the
      bringing of any such proceeding in such jurisdictions. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      10. If
      the
      Obligor fails to comply with the terms of this Note, then the Obligor shall
      reimburse the Holder promptly for all fees, costs and expenses, including,
      without limitation, attorneys’ fees and expenses incurred by the Holder in any
      action in connection with this Note, including, without limitation, those
      incurred: (i) during any workout, attempted workout, and/or in connection with
      the rendering of legal advice as to the Holder’s rights, remedies and
      obligations, (ii) collecting any sums which become due to the Holder, (iii)
      defending or prosecuting any proceeding or any counterclaim to any proceeding
      or
      appeal; or (iv) the protection, preservation or enforcement of any rights or
      remedies of the Holder.

     

    Section
      11. Any
      waiver by the Holder of a breach of any provision of this Note shall not operate
      as or be construed to be a waiver of any other breach of such provision or
      of
      any breach of any other provision of this Note. The failure of the Holder to
      insist upon strict adherence to any term of this Note on one or more occasions
      shall not be considered a waiver or deprive that party of the right thereafter
      to insist upon strict adherence to that term or any other term of this Note.
      Any
      waiver must be in writing.

     

    Section
      12. If
      any
      provision of this Note is invalid, illegal or unenforceable, the balance of
      this
      Note shall remain in effect, and if any provision is inapplicable to any person
      or circumstance, it shall nevertheless remain applicable to all other persons
      and circumstances. If it shall be found that any interest or other amount deemed
      interest due hereunder shall violate applicable laws governing usury, the
      applicable rate of interest due hereunder shall automatically be lowered to
      equal the maximum permitted rate of interest. The Obligor covenants (to the
      extent that it may lawfully do so) that it shall not at any time insist upon,
      plead, or in any manner whatsoever claim or take the benefit or advantage of,
      any stay, extension or usury law or other law which would prohibit or forgive
      the Obligor from paying all or any portion of the principal of or interest
      on
      this Note as contemplated herein, wherever enacted, now or at any time hereafter
      in force, or which may affect the covenants or the performance of this
      indenture, and the Obligor (to the extent it may lawfully do so) hereby
      expressly waives all benefits or advantage of any such law, and covenants that
      it will not, by resort to any such law, hinder, delay or impeded the execution
      of any power herein granted to the Holder, but will suffer and permit the
      execution of every such as though no such law has been enacted.

     

    Section
      13. THE
      PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY
      OF
      THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON
      OR
      ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
      DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
      OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT
      FOR
      THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    IN
      WITNESS WHEREOF,
      the
      Obligor has caused this Subordinated Promissory Note to be duly executed by
      a
      duly authorized officer as of the date set forth above.

     

    
      	 	 	 
	 	
              SUB-URBAN
                BRANDS, INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              
                Title:

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