Document:

WARRANT

     

    THE
      SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
      SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT.

     

     

    WHERIFY
      WIRELESS, INC.

     

    Warrant
      To Purchase Common Stock

     

    
      	Warrant No.: CCP-002	
               Number
                of Shares:
                1,250,000

            

    

     

    Date
      of
      Issuance: March 10, 2006

    

    Wherify
      Wireless, Inc., a Delaware corporation (the “Company”),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Cornell
      Capital Partners, LP
      (the
“Holder”),
      the
      registered holder hereof or its permitted assigns, is entitled, subject to
      the
      terms set forth below, to purchase from the Company upon surrender of this
      Warrant, at any time or times on or after the date hereof, but not after
      11:59 P.M. Eastern Time on the Expiration Date (as defined herein) One
      Million Two Hundred Twenty Five Thousand (1,250,000) fully paid and
      nonassessable shares of Common Stock (as defined herein) of the Company (the
      “Warrant
      Shares”)
      at the
      exercise price per share provided in Section 1(b) below or as subsequently
      adjusted; provided, however, that in no event shall the holder be entitled
      to
      exercise this Warrant for a number of Warrant Shares in excess of that number
      of
      Warrant Shares which, upon giving effect to such exercise, would cause the
      aggregate number of shares of Common Stock beneficially owned by the holder
      and
      its affiliates to exceed 4.99% of the outstanding shares of the Common Stock
      following such exercise, except within sixty (60) days of the Expiration Date
      (however, such restriction may be waived by Holder (but only as to itself and
      not to any other holder) upon not less than 65 days prior notice to the
      Company). For purposes of the foregoing proviso, the aggregate number of shares
      of Common Stock beneficially owned by the holder and its affiliates shall
      include the number of shares of Common Stock issuable upon exercise of this
      Warrant with respect to which the determination of such proviso is being made,
      but shall exclude shares of Common Stock which would be issuable upon
      (i) exercise of the remaining, unexercised Warrants beneficially owned by
      the holder and its affiliates and (ii) exercise or conversion of the
      unexercised or unconverted portion of any other securities of the Company
      beneficially owned by the holder and its affiliates (including, without
      limitation, any convertible notes or preferred stock) subject to a limitation
      on
      conversion or exercise analogous to the limitation contained herein. Except
      as
      set forth in the preceding sentence, for purposes of this paragraph, beneficial
      ownership shall be calculated in accordance with Section 13(d) of the Securities
      Exchange Act of 1934, as amended. For purposes of this Warrant, in determining
      the number of outstanding shares of Common Stock a holder may rely on the number
      of outstanding shares of Common Stock as reflected in (1) the Company’s most
      recent Form 10-QSB or Form 10-KSB, as the case may be, (2) a more recent public
      announcement by the Company or (3) any other notice by the Company or its
      transfer agent setting forth the number of shares of Common Stock outstanding.
      Upon the written request of any holder, the Company shall promptly, but in
      no
      event later than one (1) Business Day following the receipt of such notice,
      confirm in writing to any such holder the number of shares of Common Stock
      then
      outstanding. In any case, the number of outstanding shares of Common Stock
      shall
      be determined after giving effect to the exercise of Warrants (as defined below)
      by such holder and its affiliates since the date as of which such number of
      outstanding shares of Common Stock was reported.

     

    
      
        
        

      

      
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    Section
      1.

     

    (a) This
      Warrant is the common stock purchase warrant (the “Warrant”)
      issued
      pursuant to the Securities Purchase Agreement (“Securities
      Purchase Agreement”)
      dated
      the date hereof between the Company and the Holder.

     

    (b) Definitions.
      The
      following words and terms as used in this Warrant shall have the following
      meanings:

     

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

     

    (ii) “Closing
      Bid Price”
means
      the closing bid price of Common Stock as quoted on the Principal Market (as
      reported by Bloomberg Financial Markets (“Bloomberg”)
      through its “Volume at Price” function).

     

    (iii) “Common
      Stock”
means
      (i) the Company’s common stock, par value $0.01 per share, and
      (ii) any capital stock into which such Common Stock shall have been changed
      or any capital stock resulting from a reclassification of such Common
      Stock.

     

    (iv) “Event
      of Default”
means
      an event of default under the Securities Purchase Agreement or the Convertible
      Debentures issued in connection therewith.

     

    (v) “Excluded
      Securities”
means
      (a) securities issued or issuable upon conversion or exercise of any currently
      outstanding securities provided such securities are not amended after the date
      hereof, or any securities issued in accordance with the Securities Purchase
      Agreement, the Convertible Debentures or this Warrant; (b) securities granted
      to
      officers, directors and employees of, and consultants to, the Company pursuant
      to stock option or purchase plans or other compensatory agreements approved
      by
      the Board of Directors; (c) securities issued to bona fide third parties in
      connection with a joint venture arrangement where the Company is a participant;
      (d) securities issued pursuant to the acquisition of another corporation or
      entity by the Company by consolidation, merger, purchase of all or substantially
      all of the assets, or other reorganization in which the Company acquires, in
      a
      single transaction or series of related transactions, all or substantially
      all
      of the assets of such other corporation or entity or fifty percent (50%) or
      more
      of the voting power of such other corporation or entity or fifty percent (50%)
      or more of the equity ownership of such other corporation or entity; (e)
      securities issued to current or prospective customers or suppliers of the
      Company approved by the Board of Directors as compensation or accommodation
      in
      lieu of other payment, compensation or accommodation to such customer or
      supplier; (f) securities issued to any bona fide third party that provides
      services to the Company as compensation therefore pursuant to an agreement
      approved by the Board of Directors; (g) securities issuable upon conversion
      or
      exercise of the securities set forth in paragraphs (a) - (f) above; and (h)
      securities issued upon conversion of or in exchange for up to $1 million of
      indebtedness.

     

    
      
        
        

      

      
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    (vi) “Expiration
      Date”
means
      the date three (3) years from the Issuance Date of this Warrant or, if such
      date
      falls on a Saturday, Sunday or other day on which banks are required or
      authorized to be closed in the City of New York or the State of New York or
      on
      which trading does not take place on the Principal Exchange or automated
      quotation system on which the Common Stock is traded (a “Holiday”),
      the
      next date that is not a Holiday.

     

    (vii) “Issuance
      Date”
means
      the date hereof.

     

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

     

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

     

    (x) “Principal
      Market”
means
      the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
      Market, the Nasdaq SmallCap Market, whichever is at the time the principal
      trading exchange or market for such security, or the over-the-counter market
      on
      the electronic bulletin board for such security as reported by Bloomberg or,
      if
      no bid or sale information is reported for such security by Bloomberg, then
      the
      average of the bid prices of each of the market makers for such security as
      reported in the “pink sheets” by the National Quotation Bureau,
      Inc.

     

    (xi) “Registration
      Rights Agreement”
means
      the Investor Registration Rights Agreement of even date herewith between the
      Company and the Holder. 

     

    

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

     

    (xiii) “Warrant”
means
      this Warrant and all Warrants issued in exchange, transfer or replacement
      thereof. 

     

    (xiv) “Warrant
      Exercise Price”
shall
      be $2.25
      or as
      subsequently adjusted as provided in Section 8 hereof. 

     

    
      
        
        

      

      
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    (xv) “Warrant
      Shares”
means
      the shares of Common Stock issuable at any time upon exercise of this Warrant.
      

     

    (c) Other
      Definitional Provisions. 

     

    (i) Except
      as
      otherwise specified herein, all references herein (A) to the Company shall
      be deemed to include the Company’s successors and (B) to any applicable law
      defined or referred to herein shall be deemed references to such applicable
      law
      as the same may have been or may be amended or supplemented from time to time.
      

     

    (ii) When
      used
      in this Warrant, the words “herein”,
      “hereof”,
      and
“hereunder”
      and
      words of similar import, shall refer to this Warrant as a whole and not to
      any
      provision of this Warrant, and the words “Section”,
      “Schedule”,
      and
“Exhibit”
shall
      refer to Sections of, and Schedules and Exhibits to, this Warrant unless
      otherwise specified. 

     

    (iii) Whenever
      the context so requires, the neuter gender includes the masculine or feminine,
      and the singular number includes the plural, and vice versa. 

     

    Section
      2.     Exercise
      of Warrant.
      

     

    (a) Subject
      to the terms and conditions hereof, this Warrant may be exercised by the holder
      hereof then registered on the books of the Company, pro rata as hereinafter
      provided, at any time on any Business Day on or after the opening of business
      on
      such Business Day, commencing with the first day after the date hereof, and
      prior to 11:59 P.M. Eastern Time on the Expiration Date (i) by delivery of
      a written notice, in the form of the subscription notice attached as
Exhibit
      A
      hereto
      (the “Exercise
      Notice”),
      of
      such holder’s election to exercise this Warrant, which notice shall specify the
      number of Warrant Shares to be purchased, payment to the Company of an
      amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares
      being purchased, multiplied by the number of Warrant Shares (at the
      applicable Warrant Exercise Price) as to which this Warrant is being
      exercised (plus any applicable issue or transfer taxes) (the “Aggregate
      Exercise Price”)
      in
      cash or wire transfer of immediately available funds and the surrender of this
      Warrant (or an indemnification undertaking with respect to this Warrant in
      the
      case of its loss, theft or destruction) to a common carrier for overnight
      delivery to the Company as soon as practicable following such date
      (“Cash
      Basis”)
      or
      (ii) if at the time of exercise an Event of Default pursuant to Section 2(a)(i)
      of the Convertible Debentures has occurred or after the Scheduled Effective
      Deadline (as defined in the Registration Rights Agreement), the Warrant Shares
      are not subject to an effective registration statement (except during any
      permitted Blackout Periods as set forth in the Registration Rights Agreement),
      then this Warrant may be exercised by the holder by delivering an Exercise
      Notice and in lieu of making payment of the Aggregate Exercise Price in cash
      or
      wire transfer, elect instead to receive upon such exercise the “Net Number” of
      shares of Common Stock determined according to the following formula (the
“Cashless
      Exercise”):
      

     

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

                B

    

    
      
        
        

      

      
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    For
      purposes of the foregoing formula: 

    

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

    

    B
      = the
      Closing Bid Price of the Common Stock on the date of exercise of the
      Warrant.

    

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

    

    In
      the
      event of any exercise of the rights represented by this Warrant in compliance
      with this Section 2, the Company shall on or before the fifth (5th)
      Business Day following the date of receipt of the Exercise Notice, the Aggregate
      Exercise Price and this Warrant (or an indemnification undertaking with respect
      to this Warrant in the case of its loss, theft or destruction) and the receipt
      of the representations of the holder specified in Section 6 hereof, if requested
      by the Company (the “Exercise
      Delivery Documents”),
      and
      if the Common Stock is DTC eligible, credit such aggregate number of shares
      of
      Common Stock to which the holder shall be entitled to the holder’s or its
      designee’s balance account with The Depository Trust Company; provided, however,
      if the holder who submitted the Exercise Notice requested physical delivery
      of
      any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible
      then the Company shall, on or before the fifth (5th)
      Business Day following receipt of the Exercise Delivery Documents, issue and
      surrender to a common carrier for overnight delivery to the address specified
      in
      the Exercise Notice, a certificate, registered in the name of the holder, for
      the number of shares of Common Stock to which the holder shall be entitled
      pursuant to such request. Upon delivery of the Exercise Notice and Aggregate
      Exercise Price referred to in clause (i) or (ii) above the holder of this
      Warrant 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. In the case of a dispute as to the determination of the Warrant
      Exercise Price, the Closing Bid Price or the arithmetic calculation of the
      Warrant Shares, the Company shall promptly issue to the holder the number of
      Warrant Shares that is not disputed and shall submit the disputed determinations
      or arithmetic calculations to the holder via facsimile within one (1) Business
      Day of receipt of the holder’s Exercise Notice. 

     

    (b) If
      the
      holder and the Company are unable to agree upon the determination of the Warrant
      Exercise Price or arithmetic calculation of the Warrant Shares within one (1)
      day of such disputed determination or arithmetic calculation being submitted
      to
      the holder, then the Company shall immediately submit via facsimile (i) the
      disputed determination of the Warrant Exercise Price or the Closing Bid Price
      to
      an independent, reputable investment banking firm or (ii) the disputed
      arithmetic calculation of the Warrant Shares to its independent, outside
      accountant. The Company shall cause the investment banking firm or the
      accountant, as the case may be, to perform the determinations or calculations
      and notify the Company and the holder of the results no later than forty-eight
      (48) hours from the time it receives the disputed determinations or
      calculations. Such investment banking firm’s or accountant’s determination or
      calculation, as the case may be, shall be deemed conclusive absent manifest
      error.

     

    (c) Unless
      the rights represented by this Warrant shall have expired or shall have been
      fully exercised, the Company shall, as soon as practicable and in no event
      later
      than five (5) Business Days after any exercise and at its own expense, issue
      a
      new Warrant identical in all respects to this Warrant exercised except it shall
      represent rights to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant exercised, less the number
      of Warrant Shares with respect to which such Warrant is exercised.

     

    
      
        
        

      

      
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    (d) No
      fractional Warrant Shares are to be issued upon any pro rata exercise of this
      Warrant, but rather the number of Warrant Shares issued upon such exercise
      of
      this Warrant shall be rounded up or down to the nearest whole
      number.

     

    (e) If
      the
      Company or its Transfer Agent shall fail for any reason or for no reason to
      issue to the holder within ten (10) days of receipt of the Exercise
      Delivery Documents, a certificate for the number of Warrant Shares to which
      the
      holder is entitled or to credit the holder’s balance account with The Depository
      Trust Company for such number of Warrant Shares to which the holder is entitled
      upon the holder’s exercise of this Warrant, the Company shall, in addition to
      any other remedies under this Warrant or the Placement Agent Agreement or
      otherwise available to such holder, pay as additional damages in cash to such
      holder on each day the issuance of such certificate for Warrant Shares is not
      timely effected an amount equal to 0.025% of the product of (A) the sum of
      the
      number of Warrant Shares not issued to the holder on a timely basis and to
      which
      the holder is entitled, and (B) the Closing Bid Price of the Common Stock for
      the trading day immediately preceding the last possible date which the Company
      could have issued such Common Stock to the holder without violating this
      Section 2.

     

    (f) If
      within
      ten (10) days after the Company’s receipt of the Exercise Delivery Documents,
      the Company fails to deliver a new Warrant to the holder for the number of
      Warrant Shares to which such holder is entitled pursuant to Section 2 hereof,
      then, in addition to any other available remedies under this Warrant, or
      otherwise available to such holder, the Company shall pay as additional damages
      in cash to such holder on each day after such tenth (10th)
      day
      that such delivery of such new Warrant is not timely effected in an amount
      equal
      to 0.25% of the product of (A) the number of Warrant Shares represented by
      the portion of this Warrant which is not being exercised and (B) the
      Closing Bid Price of the Common Stock for the trading day immediately preceding
      the last possible date which the Company could have issued such Warrant to
      the
      holder without violating this Section 2.

     

    Section
      3.     Covenants
      as to Common Stock.
      The
      Company hereby covenants and agrees as follows:

     

    (a) This
      Warrant is, and any Warrants issued in substitution for or replacement of this
      Warrant will upon issuance be, duly authorized and validly issued.

     

    (b) All
      Warrant Shares which may be issued upon the exercise of the rights represented
      by this Warrant will, upon issuance, be validly issued, fully paid and
      nonassessable and free from all taxes, liens and charges with respect to the
      issue thereof.

     

    (c) During
      the period within which the rights represented by this Warrant may be exercised,
      the Company will at all times have authorized and reserved at least one hundred
      percent (100%) of the number of shares of Common Stock needed to provide for
      the
      exercise of the rights then represented by this Warrant and the par value of
      said shares will at all times be less than or equal to the applicable Warrant
      Exercise Price. If at any time the Company does not have a sufficient number
      of
      shares of Common Stock authorized and available, then the Company shall call
      and
      hold a special meeting of its stockholders within sixty (60) days of that
      time for the sole purpose of increasing the number of authorized shares of
      Common Stock.

     

    
      
        
        

      

      
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    (d) If
      at any
      time after the date hereof the Company shall file a registration statement,
      the
      Company shall include the Warrant Shares issuable to the holder, pursuant to
      the
      terms of this Warrant and shall maintain, so long as any other shares of Common
      Stock shall be so listed, such listing of all Warrant Shares from time to time
      issuable upon the exercise of this Warrant; and the Company shall so list on
      each national securities exchange or automated quotation system, as the case
      may
      be, and shall maintain such listing of, any other shares of capital stock of
      the
      Company issuable upon the exercise of this Warrant if and so long as any shares
      of the same class shall be listed on such national securities exchange or
      automated quotation system.

     

    (e) The
      Company will not, by amendment of its Articles of Incorporation or through
      any
      reorganization, transfer of assets, consolidation, merger, dissolution, issue
      or
      sale of securities, or any other voluntary action, avoid or seek to avoid the
      observance or performance of any of the terms to be observed or performed by
      it
      hereunder, but will at all times in good faith assist in the carrying out of
      all
      the provisions of this Warrant and in the taking of all such action as may
      reasonably be requested by the holder of this Warrant in order to protect the
      exercise privilege of the holder of this Warrant against dilution or other
      impairment, consistent with the tenor and purpose of this Warrant. The Company
      will not increase the par value of any shares of Common Stock receivable upon
      the exercise of this Warrant above the Warrant Exercise Price then in effect,
      and (ii) will 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.

     

    (f) This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation or acquisition of all or substantially all of the Company’s
      assets.

     

    Section
      4.     Taxes.
      The
      Company shall pay any and all taxes, except any applicable withholding, which
      may be payable with respect to the issuance and delivery of Warrant Shares
      upon
      exercise of this Warrant.

     

    Section
      5.     Warrant
      Holder Not Deemed a Stockholder.
      Except
      as otherwise specifically provided herein, no holder, as such, of this Warrant
      shall be entitled to vote or receive dividends or be deemed the holder of shares
      of capital stock of the Company for any purpose, nor shall anything contained
      in
      this Warrant be construed to confer upon the holder hereof, as such, 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 this Warrant of the Warrant
      Shares which he or she 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 such 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 5, the Company will provide the holder
      of
      this Warrant 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.

     

    
      
        
        

      

      
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    Section
      6.     Representations
      of Holder.
      The
      holder of this Warrant, by the acceptance hereof, represents that it is
      acquiring this Warrant and the Warrant Shares for its own account for investment
      only and not with a view towards, or for resale in connection with, the public
      sale or distribution of this Warrant or the Warrant Shares, except pursuant
      to
      sales registered or exempted under the Securities Act; provided, however, that
      by making the representations herein, the holder does not agree to hold this
      Warrant or any of the Warrant Shares for any minimum or other specific term
      and
      reserves the right to dispose of this Warrant and the Warrant Shares at any
      time
      in accordance with or pursuant to a registration statement or an exemption
      under
      the Securities Act. The holder of this Warrant further represents, by acceptance
      hereof, that, as of this date, such holder is an “accredited investor” as such
      term is defined in Rule 501(a)(1) of Regulation D promulgated by the
      Securities and Exchange Commission under the Securities Act (an “Accredited
      Investor”).
      Upon
      exercise of this Warrant the holder shall, if requested by the Company, confirm
      in writing, in a form satisfactory to the Company, that the Warrant Shares
      so
      purchased are being acquired solely for the holder’s own account and not as a
      nominee for any other party, for investment, and not with a view toward
      distribution or resale and that such holder is an Accredited Investor. If such
      holder cannot make such representations because they would be factually
      incorrect, it shall be a condition to such holder’s exercise of this Warrant
      that the Company receive such other representations as the Company considers
      reasonably necessary to assure the Company that the issuance of its securities
      upon exercise of this Warrant shall not violate any United States or state
      securities laws.

     

    Section
      7.     Ownership
      and Transfer.

     

    (a) The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the holder hereof),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee. The Company may treat the person in whose
      name any Warrant is registered on the register as the owner and holder thereof
      for all purposes, notwithstanding any notice to the contrary, but in all events
      recognizing any transfers made in accordance with the terms of this
      Warrant.

    

      Section
        8.  Adjustment
        of Warrant Exercise Price and Number of Shares.
        The
        Warrant Exercise Price and the number of shares of Common Stock issuable
        upon
        exercise of this Warrant shall be adjusted from time to time as
        follows:

    

     

    (a) Adjustment
      of Warrant Exercise Price and Number of Shares upon Issuance of Common
      Stock.
      If and
      whenever on or after the Issuance Date of this Warrant, the Company issues
      or
      sells, or is deemed to have issued or sold, any shares of Common
      Stock (other than Excluded Securities) for a consideration per share less
      than a price (the “Applicable
      Price”)
      equal
      to the Warrant Exercise Price in effect immediately prior to such issuance
      or
      sale, then immediately after such issue or sale the Warrant Exercise Price
      then
      in effect shall be reduced to an amount equal to such consideration per share.
      Upon each such adjustment of the Warrant Exercise Price hereunder, the number
      of
      Warrant Shares issuable upon exercise of this Warrant shall be adjusted to
      the
      number of shares determined by multiplying the Warrant Exercise Price in effect
      immediately prior to such adjustment by the number of Warrant Shares issuable
      upon exercise of this Warrant immediately prior to such adjustment and dividing
      the product thereof by the Warrant Exercise Price resulting from such
      adjustment.

     

    
      
        
        

      

      
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    (b) Effect
      on Warrant Exercise Price of Certain Events.
      For
      purposes of determining the adjusted Warrant Exercise Price under Section 8(a)
      above, the following shall be applicable:

     

    (i) Issuance
      of Options.
      If
      after the date hereof, the Company in any manner grants any Options (other
      than
      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 of any convertible securities issuable upon exercise of any such
      Option is less than the Applicable 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 8(b)(i), the lowest price per share for which one
      share
      of Common Stock is issuable upon exercise of such Options or upon conversion
      or
      exchange of such Convertible Securities 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 granting or sale of the
      Option, upon exercise of the Option or upon conversion or exchange of any
      convertible security issuable upon exercise of such Option. No further
      adjustment of the Warrant Exercise Price shall be made upon the actual issuance
      of such 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 of such convertible securities.

     

    (ii) 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 the conversion or exchange thereof is less than
      the Applicable 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 or sale of such convertible securities for such price per share. For
      the purposes of this Section 8(b)(ii), the lowest price per share for which
      one share of Common Stock is issuable upon such conversion or exchange shall
      be
      equal to the sum of the lowest amounts of consideration (if any) received or
      receivable by the Company with respect to one share of Common Stock upon the
      issuance or sale of the convertible security and upon conversion or exchange
      of
      such convertible security. No further adjustment of the Warrant Exercise Price
      shall be made upon the actual issuance of such Common Stock upon conversion
      or
      exchange 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 Warrant Exercise Price had been or are to be made pursuant to other
      provisions of this Section 8(b), no further adjustment of the Warrant Exercise
      Price shall be made by reason of such issue or sale. 

     

    (iii) Change
      in Option Price or Rate of Conversion.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the issue, conversion or exchange of any convertible
      securities, or the rate at which any convertible securities are convertible
      into
      or exchangeable for Common Stock changes at any time, the Warrant Exercise
      Price
      in effect at the time of such change shall be adjusted to the Warrant 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 and the number of Warrant Shares issuable
      upon
      exercise of this Warrant shall be correspondingly readjusted. For purposes
      of
      this Section 8(b)(iii), if the terms of any Option or convertible security
      that
      was outstanding as of the Issuance Date of this Warrant 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 pursuant to this Section 8(b) shall be
      made if such adjustment would result in an increase of the Warrant Exercise
      Price then in effect.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    (c) Effect
      on Warrant Exercise Price of Certain Events.
      For
      purposes of determining the adjusted Warrant Exercise Price under
      Sections 8(a) and 8(b), the following shall be applicable:

     

    (i) Calculation
      of Consideration Received.
      If any
      Common Stock, Options or convertible securities are issued or sold or deemed
      to
      have been issued or sold for cash, the consideration received therefore will
      be
      deemed to be the net amount received by the Company therefore. If any Common
      Stock, Options or convertible securities are issued or sold for a consideration
      other than cash, the amount of such consideration received by the Company will
      be the fair value of such consideration, except where such consideration
      consists of marketable securities, in which case the amount of consideration
      received by the Company will be the market price of such securities on the
      date
      of receipt of such securities. If any Common Stock, Options or convertible
      securities are issued to the owners of the non-surviving entity in connection
      with any merger in which the Company is the surviving entity, the amount of
      consideration therefore will be deemed to be the fair value of such portion
      of
      the net assets and business of the non-surviving entity as is attributable
      to
      such Common Stock, Options or convertible securities, as the case may be. The
      fair value of any consideration other than cash or securities will be determined
      jointly by the Company and the holders of Warrants representing at least
      two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
      then
      outstanding. If such parties are unable to reach agreement within ten (10)
      days after the occurrence of an event requiring valuation (the “Valuation
      Event”),
      the
      fair value of such consideration will be determined within five (5) Business
      Days after the tenth (10th)
      day
      following the Valuation Event by an independent, reputable appraiser jointly
      selected by the Company and the holders of Warrants representing at least
      two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
      then
      outstanding. The determination of such appraiser shall be final and binding
      upon
      all parties and the fees and expenses of such appraiser shall be borne jointly
      by the Company and the holders of Warrants.

     

    (ii) Reserved.
      

     

    (iii) Treasury
      Shares.
      The
      number of shares of Common Stock outstanding at any given time does not include
      shares owned or held by or for the account of the Company, and the disposition
      of any shares so owned or held will be considered an issue or sale of Common
      Stock.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (iv) Record
      Date.
      If the
      Company takes a record of the holders of Common Stock for the purpose of
      entitling them (1) to receive a dividend or other distribution payable in
      Common Stock, Options or in convertible securities or (2) 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 shares of 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.

     

    (d) Adjustment
      of Warrant Exercise Price upon Subdivision or Combination of Common
      Stock.
      If the
      Company at any time after the date of issuance of this Warrant subdivides (by
      any stock split, stock dividend, recapitalization or otherwise) one or more
      classes of its outstanding shares of Common Stock into a greater number of
      shares, any Warrant Exercise Price in effect immediately prior to such
      subdivision will be proportionately reduced and the number of shares of Common
      Stock obtainable upon exercise of this Warrant will be proportionately
      increased. If the Company at any time after the date of issuance of this Warrant
      combines (by combination, reverse stock split or otherwise) one or more classes
      of its outstanding shares of Common Stock into a smaller number of shares,
      any
      Warrant Exercise Price in effect immediately prior to such combination will
      be
      proportionately increased and the number of Warrant Shares issuable upon
      exercise of this Warrant will be proportionately decreased. Any adjustment
      under
      this Section 8(d) shall become effective at the close of business on the
      date the subdivision or combination becomes effective.

     

    (e) Distribution
      of Assets.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of Common Stock, by way of return
      of capital or otherwise (including, without limitation, any distribution of
      cash, stock or other securities, property or options by way of a dividend,
      spin
      off, reclassification, corporate rearrangement or other similar transaction)
      (a
“Distribution”),
      at
      any time after the issuance of this Warrant, then, in each such
      case:

     

    (i) any
      Warrant Exercise Price in effect immediately prior to the close of business
      on
      the record date fixed for the determination of holders of Common Stock
      entitled to
      receive the Distribution shall be reduced, effective as of the close of business
      on such record date, to a price determined by multiplying such Warrant Exercise
      Price by a fraction of which (A) the numerator shall be the Closing Sale Price
      of the Common Stock on the trading day immediately preceding such record date
      minus the value of the Distribution (as determined in good faith by the
      Company’s Board of Directors) applicable to one share of Common Stock, and (B)
      the denominator shall be the Closing Sale Price of the Common Stock on the
      trading day immediately preceding such record date; and

     

    (ii) either
      (A) the number of Warrant Shares obtainable upon exercise of this Warrant shall
      be increased to a number of shares equal to the number of shares of Common
      Stock
      obtainable immediately prior to the close of business on the record date fixed
      for the determination of holders of Common Stock entitled to receive the
      Distribution multiplied by the reciprocal of the fraction set forth in the
      immediately preceding clause (i), or (B) in the event that the Distribution
      is
      of common stock of a company whose common stock is traded on a national
      securities exchange or a national automated quotation system, then the holder
      of
      this Warrant shall receive an additional warrant to purchase Common Stock,
      the
      terms of which shall be identical to those of this Warrant, except that such
      warrant shall be exercisable into the amount of the assets that would have
      been
      payable to the holder of this Warrant pursuant to the Distribution had the
      holder exercised this Warrant immediately prior to such record date and with
      an
      exercise price equal to the amount by which the exercise price of this Warrant
      was decreased with respect to the Distribution pursuant to the terms of the
      immediately preceding clause (i).

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    (f) Certain
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 8
      but not expressly provided for by such provisions (including, without
      limitation, the granting of stock appreciation rights, phantom stock rights
      or
      other rights with equity features), then the Company’s Board of Directors will
      make an appropriate adjustment in the Warrant Exercise Price and the number
      of
      shares of Common Stock obtainable upon exercise of this Warrant so as to protect
      the rights of the holders of the Warrants; provided, except as set forth in
      section 8(d),that no such adjustment pursuant to this Section 8(f) will increase
      the Warrant Exercise Price or decrease the number of shares of Common Stock
      obtainable as otherwise determined pursuant to this Section 8.

     

    (g) Notices.

     

    (i) Immediately
      upon any adjustment of the Warrant Exercise Price, the Company will give written
      notice thereof to the holder of this Warrant, setting forth in reasonable
      detail, and certifying, the calculation of such adjustment.

     

    (ii) The
      Company will give written notice to the holder of this Warrant at least ten
      (10)
      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 Common Stock,
      (B) with respect to any pro rata subscription offer to holders of Common
      Stock or (C) for determining rights to vote with respect to any Organic
      Change (as defined below), dissolution or liquidation, provided that such
      information shall be made known to the public prior to or in conjunction with
      such notice being provided to such holder.

     

    (iii) The
      Company will also give written notice to the holder of this Warrant at least
      ten
      (10) days prior to the date on which any Organic Change, dissolution or
      liquidation will take place, provided that such information shall be made known
      to the public prior to or in conjunction with such notice being provided to
      such
      holder.

     

    Section
      9.     Purchase
      Rights; Reorganization, Reclassification, Consolidation, Merger or
      Sale.

     

    (a) In
      addition to any adjustments pursuant to Section 8 above, if at any time the
      Company grants, issues or sells any Options, Convertible Securities or rights
      to
      purchase stock, warrants, securities or other property pro rata to the record
      holders of any class of Common Stock (the “Purchase
      Rights”),
      then
      the holder of this Warrant will be entitled to acquire, upon the terms
      applicable to such Purchase Rights, the aggregate Purchase Rights which such
      holder could have acquired if such holder had held the number of shares of
      Common Stock acquirable upon complete exercise of this Warrant immediately
      before the date on which a record is taken for the grant, issuance or sale
      of
      such Purchase Rights, or, if no such record is taken, the date as of which
      the
      record holders of Common Stock are to be determined for the grant, issue or
      sale
      of such Purchase Rights.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    (b) Any
      recapitalization, reorganization, reclassification, consolidation, merger,
      sale
      of all or substantially all of the Company’s assets to another Person or other
      transaction in each case which is effected in such a way that holders of Common
      Stock are entitled to receive (either directly or upon subsequent liquidation)
      stock, securities or assets with respect to or in exchange for Common Stock
      is
      referred to herein as an “Organic
      Change.”
Prior
      to the consummation of any (i) sale of all or substantially all of the Company’s
      assets to an acquiring Person or (ii) other Organic Change following which
      the
      Company is not a surviving entity, the Company will secure from the Person
      purchasing such assets or the successor resulting from such Organic Change
      (in
      each case, the “Acquiring
      Entity”)
      a
      written agreement (in form and substance satisfactory to the holders of Warrants
      representing at least two-thirds (iii) of the Warrant Shares issuable upon
      exercise of the Warrants then outstanding) to deliver to each holder of Warrants
      in exchange for such Warrants, a security of the Acquiring Entity evidenced
      by a
      written instrument substantially similar in form and substance to this Warrant
      and satisfactory to the holders of the Warrants (including an adjusted warrant
      exercise price equal to the value for the Common Stock reflected by the terms
      of
      such consolidation, merger or sale, and exercisable for a corresponding number
      of shares of Common Stock acquirable and receivable upon exercise of the
      Warrants without regard to any limitations on exercise, if the value so
      reflected is less than any Applicable Warrant Exercise Price immediately prior
      to such consolidation, merger or sale). Prior to the consummation of any other
      Organic Change, the Company shall make appropriate provision (in form and
      substance satisfactory to the holders of Warrants representing a
      majority of
      the
      Warrant Shares issuable upon exercise of the Warrants then outstanding) to
      insure that each of the holders of the Warrants will thereafter have the right
      to acquire and receive in lieu of or in addition to (as the case may be) the
      Warrant Shares immediately theretofore issuable and receivable upon the exercise
      of such holder’s Warrants (without regard to any limitations on exercise),
      such shares of stock, securities or assets that would have been issued or
      payable in such Organic Change with respect to or in exchange for the number
      of
      Warrant Shares which would have been issuable and receivable upon the exercise
      of such holder’s Warrant as of the date of such Organic Change (without taking
      into account any limitations or restrictions on the exercisability of this
      Warrant).

     

    Section
      10.     Lost,
      Stolen, Mutilated or Destroyed Warrant.
      If this
      Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
      on
      receipt of an indemnification undertaking (or, in the case of a mutilated
      Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
      this Warrant so lost, stolen, mutilated or destroyed.

     

    Section
      11.     Notice.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Warrant 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 receipt
      is received by the sending party transmission is mechanically or electronically
      generated and kept on file by the sending party); or (iii) one Business 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:

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    
      	
              If
                to Holder:

            	
              Cornell
                Capital Partners, LP

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Attention: Mark
                A. Angelo

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 
	
              With
                Copy to:

            	
              David
                Gonzalez, Esq.

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 
	 	 
	
              If
                to the Company, to:

            	
              Wherify
                Wireless, Inc.

            
	 	
              2000
                Bridge Parkway, Suite 201

            
	 	
              Redwood
                Shores, CA 94065

            
	 	
              Attention: Chief
                Executive Officer

            
	 	
              Telephone: (650)
                551-5200

            
	 	
              Facsimile: (650)
                551-5225

            
	 	 
	
              With
                a copy to:

            	
              Allen
                Matkins Leck Gamble & Mallory LLP

            
	 	
              Three
                Embarcadero Center, 12th
                Floor

            
	 	
              San
                Francisco, CA 94111

            
	 	
              Attention: D.
                Stanley Rowland

            
	 	
              Telephone: (415)
                837-1515

            
	 	
              Facsimile: (415)
                837-1516

            

    

    

    If
      to a
      holder of this Warrant, to it at the address and facsimile number set forth
      on
Exhibit C
      hereto,
      with copies to such holder’s representatives as set forth on Exhibit C,
      or at
      such other address and facsimile as shall be delivered to the Company upon
      the
      issuance or transfer of this Warrant. Each party shall provide five days’ prior
      written notice to the other party of any change in address or facsimile number.
      Written confirmation of receipt (A) given by the recipient of such notice,
      consent, facsimile, waiver or other communication, (or (B) 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
      12.     Date.
      The
      date of this Warrant is set forth on page 1 hereof. This Warrant, in all
      events, shall be wholly void and of no effect after the close of business on
      the
      Expiration Date, except that notwithstanding any other provisions hereof, the
      provisions of Section 8(b) shall continue in full force and effect after
      such date as to any Warrant Shares or other securities issued upon the exercise
      of this Warrant.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    Section
      13.     Amendment
      and Waiver.
      Except
      as otherwise provided herein, the provisions of the Warrants 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 holders of Warrants representing at least two-thirds
      of
      the Warrant Shares issuable upon exercise of the Warrants then outstanding;
      provided that, except for Section 8(d), no such action may increase the Warrant
      Exercise Price or decrease the number of shares or class of stock obtainable
      upon exercise of any Warrant without the written consent of the holder of such
      Warrant.

     

    Section
      14.     Descriptive
      Headings; Governing Law.
      The
      descriptive headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this Warrant.
      The
      corporate laws of the State of Delaware shall govern all issues concerning
      the
      relative rights of the Company and its stockholders. All other questions
      concerning the construction, validity, enforcement and interpretation of this
      Agreement shall be governed by the internal laws of the State of New Jersey,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of New Jersey or any other jurisdictions) that would
      cause
      the application of the laws of any jurisdictions other than the State of New
      Jersey. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting in Hudson County and the United States
      District Court for the District of New Jersey, for the adjudication of any
      dispute hereunder or in connection herewith or therewith, or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Each party hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address for such notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing contained herein shall be deemed to limit in any way any right
      to serve process in any manner permitted by law. 

     

    Section
      15.     Waiver
      of Jury Trial.
      AS
      A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE
      PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
      RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
      ASSOCIATED WITH THIS TRANSACTION.

     

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

     

     

     

    
 

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed as of the date first set forth
      above.

     

    
      	 	 	 
	 	
              WHERIFY
                WIRELESS, INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ Timothy
              J. Neher
	 	
              

              Name: Timothy
                J. Neher

            
	 	
              Title: Chief
                Executive Officer

            

    

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A TO WARRANT

     

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED 

    BY
      THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

     

    WHERIFY
      WIRELESS, INC.

     

    The
      undersigned holder hereby exercises the right to purchase ______________ of
      the
      shares of Common Stock (“Warrant
      Shares”)
      of
      Wherify Wireless, Inc. (the “Company”),
      evidenced by the attached Warrant (the “Warrant”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

     

    Specify
      Method of exercise by check mark:

     

    1.
      ___ Cash
      Exercise

     

    (a)
      Payment
      of Warrant Exercise Price.
      The
      holder shall pay the Aggregate Exercise Price of $______________ to the Company
      in accordance with the terms of the Warrant. 

     

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

     

    2.
      ___ Cashless
      Exercise

     

    (a)
      Payment
      of Warrant Exercise Price.
      In lieu
      of making payment of the Aggregate Exercise Price, the holder elects to receive
      upon such exercise the Net Number of shares of Common Stock determined in
      accordance with the terms of the Warrant. 

     

    (b)
      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:
      _________________________     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B TO WARRANT

     

    FORM
      OF WARRANT POWER

     

    FOR
      VALUE RECEIVED,
      the
      undersigned does hereby assign and transfer to ________________, Federal
      Identification No. __________, a warrant to purchase ____________ shares of
      the capital stock of Wherify Wireless, Inc. represented by warrant certificate
      no. _____, standing in the name of the undersigned on the books of said
      corporation. The undersigned does hereby irrevocably constitute and appoint
      ______________, attorney to transfer the warrants of said corporation, with
      full
      power of substitution in the premises.

     

    
      	
              Dated: 

            	 	 	 
	 	 	 	 	 
	 	 	 	
              By: 

            	 
	 	 	 	
              Name: 

            	 
	 	 	 	
              Title: 

            	 
	 	 	 	 	 

    

    

    

    
      
        
        

      

      
        B-1EXHIBIT
      10.12

    

    EXECUTIVE
      AGREEMENT

     

    THIS
      EXECUTIVE AGREEMENT
      (the
      "Agreement") is made effective as of the 23rd day of May, 2005 (the "Effective
      Date") between Lynn E. Varsell, an individual resident of the State of New
      York
      ("Executive"), and BANKRATE, INC., a Florida corporation with its principal
      places of business located in North Palm Beach, Florida and New York City (the
      "Company"). 

     

    WHEREAS,
      the Company desires to engage Executive to perform certain services for the
      Company, and Executive desires to accept said engagement from the Company;
      and

     

    WHEREAS,
      the Company and Executive have agreed upon the terms and conditions of
      Executive's engagement by the Company, and the parties desire to express the
      terms and conditions in this Agreement.

     

    WHEREAS,
      the Company and Executive intend for this Agreement to supersede all agreements
      between Executive and the Company.

     

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

     

    1.           Employment
      of Executive.
      The
      Company hereby employs Executive initially as its Vice President and Publisher,
      and Executive hereby accepts such employment by the Company, under the terms
      of
      this Agreement subject to termination pursuant to the provisions of Section
      8
      hereof.

     

    2.           Duties
      and Location.

     

    A.           Executive's
      position and duties will consist of a position and duties normally associated
      with the position identified in Section 1. Executive shall initially report
      to
      the Company’s Chief Operating Officer or his designee. Executive shall devote
      her full business time to the Company’s business and shall not render to others
      any service of any kind for compensation or engage in any activity which
      conflicts or interferes with the performance of her obligations under this
      Agreement without the express written consent of the Board; provided, however,
      that Executive may engage in non-profit or charitable activities which do not
      involve substantial time and which do not materially interfere with her
      employment under this Agreement and which activities are not in competition
      with
      the Company as determined in the discretion of the Board of Directors of the
      Company and those activities set forth on Addendum A hereto.

     

    B.           Executive
      agrees that she shall at all times faithfully and to the best of her ability
      and
      experience perform all of the duties that may be required of her pursuant to
      the
      terms of this Agreement.

     

    C.           Executive
      will perform her services from Company's New York City office in or at any
      other
      location within 50 miles of New York City at the Company’s discretion. Executive
      recognizes that her position will entail reasonable travel to the company’s
      North Palm Beach office. 

     

    3.           Base
      Salary.
      Executive shall receive a base salary commencing on the Effective Date and
      during her employment hereunder of $175,000 per annum (the "Base Salary"),
      which
      amount may be increased annually at the discretion of the Compensation Committee
      of the Board (the "Committee"). The Base Salary shall be paid to Executive
      by
      the Company in accordance with the Company's regular payroll practice as in
      effect from time to time.

     

    4.           Annual
      Bonus.
      Executive will be eligible for an annual bonus program generally available
      to
      executive officers of the Company as approved at the discretion of the
      Compensation Committee of the Board. The annual target bonus is to be $65,000.
      

     

    5.           Stock
      Incentive.
      Executive shall be eligible to participate in the Company' stock option, stock
      purchase, or other stock incentive plans which are generally available to
      executive officers of the Company and shall be eligible for the grant of stock
      options, restricted stock or other awards there under in accordance with the
      terms and provisions of such plans. The executive will be granted 50,000 options
      of the company’s stock, subject to the approval of the board of directors. The
      options will vest in accordance with the company’s stock option
      plan.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Company
      represents and warrants that it shall timely prepare and file with the
      Securities and Exchange Commission all documents as may be necessary to comply
      with the provisions of the Securities Act of 1933 and the Securities Exchange
      Act of 1934, each as amended, with respect to such plans and Executive’s grants
      and awards thereunder.

     

    6.           Executive
      Benefits.
      Executive shall be entitled to participate in all benefit plans as shall be
      in
      effect for other executive officers of Company from time to time, subject to
      the
      terms and conditions of each such plan. Executive shall be entitled to three
      weeks paid vacation each year in accordance with Company policy. All vacation
      times shall be subject to the approval of the Company’s Chief Executive Officer
      or, absent the Chief Executive Officer, the Board of Directors, which approval
      may not be unreasonably withheld. 

     

    7.           Expenses.
      Executive shall be reimbursed by the Company monthly for the ordinary and
      necessary reasonable business expenses incurred by her in the performance of
      her
      duties for the Company, including travel and lodging expenses, meals, client
      entertainment, and cell phone expense, all in accordance with Company policy;
      provided that Executive shall first document said business expenses in the
      manner generally required by the Company under its policies and procedures,
      and
      in any event, in the manner required to meet applicable regulations of the
      Internal Revenue Service relating to the deductibility of such
      expenses.

     

    8.           Termination.
      

     

    This
      Agreement shall terminate upon the occurrence of any of the following events:
      

     

    A.           Death
      of Executive;

     

    B.           Mental
      or physical disability of Executive which prevents her from performing
      substantially all of her duties hereunder for a period of 90 consecutive days
      or
      120 days during any one year.

     

    C.           For
      Cause, as defined below:

     

    1.           The
      Executive's material breach of this agreement which is not cured within ten
      (10)
      days of receipt of written notice to Executive specifying the
      breach;

     

    2.           The
      Executive's dishonesty, fraud, malfeasance, gross negligence or misconduct
      which, in the reasonable judgment of the Board of Directors, is, or is likely
      to, lead to material injury to the Company or the business reputation of the
      Company;

     

    3.           The
      Executive's willful failure to comply with the direction (consistent with the
      Executive's duties) of the Board or to follow the policies, procedures, and
      rules of the Company;

     

    4.           The
      Executive's negligent failure to comply with the direction (consistent with
      the
      Executive's duties) of the Board or to follow the policies, procedures, and
      rules of the Company which is not cured within thirty (30) days of receipt
      of
      written notice;

     

    5.           Executive's
      conviction of, or the Executive's entry of a plea of guilty or no contest to,
      a
      felony or crime involving moral turpitude; or

     

    6.           Executive’s
      resignation.

     

    D.           By
      either party in their sole discretion upon at least thirty (30) days’ prior
      written notice.

     

    E.           Without
      Cause. "Without Cause" means any termination of employment by Company which
      is
      not defined in sub-sections A, B, or C, above.

     

    9.           Post
      Termination Payment Obligations.

     

    A.           If
      this Agreement terminates for any of the reasons stated in sub-sections A,
      B or
      C of Section 8 of this Agreement or is terminated by Executive pursuant to
      subsection D of Section 8 of this Agreement, then the Executive shall be
      entitled to receive her Base Salary at the then current rate and any accrued
      bonus through the effective date of the termination, payable within fifteen
      (15)
      days of the effective termination date, and thereafter the Company shall have
      no
      further obligations under this Agreement, but Executive shall continue to be
      bound by Sections 12, 13, and 14 and all other post-termination obligations
      contained in this Agreement and provisions of this Agreement that specifically
      survive termination of this Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    B.           If
      this Agreement terminates in accordance with sub-sections E of Section 8 of
      this
      Agreement or is terminated by Company pursuant to subsection D of Section 8
      of
      this Agreement then Company shall pay Executive her Base Salary at the then
      current rate and any accrued bonus through the effective termination date,
      payable within fifteen (15) days of the termination date and the Company shall
      pay Executive a separation payment in the amount of six months Base Salary
      at
      the then current rate (the “Separation Payment”). The Separation Payment shall
      be paid in three installments as follows:

     

    1.           One-Third
      of the Separation Payment shall be payable upon the later of (a) fifteen (15)
      days after the termination date or (b) the day after the expiration date of
      Executive’s legally required right, if any, to revoke her signature or agreement
      in connection with the Separation and Release Agreement described in Section
      9(C) below;

     

    2.           One-Third
      of the Separation Payment shall be payable on the three (3) month anniversary
      of
      the termination date; and

     

    3.           One-Third
      of the Separation Payment shall be payable on the six (6) month anniversary
      of
      the termination date.

     

    The
      post-termination obligations under this Section 9(B) shall be binding upon
      the
      Company regardless of the Executive's subsequent employment with any other
      person, firm, partnership, association, business organization, corporation
      or
      other entity which is not affiliated with the Company.

     

    C.           In
      consideration of, and as a condition to the Company’s obligation to pay the
      Separation Payment, Executive shall:

     

    1.           Execute
      a Separation and Release Agreement in a form prepared by and acceptable to
      the
      Company whereby Executive releases the Company from any and all liability and
      settles claims of any kind; and

     

    2.           Comply
      with the restrictive covenants (Sections 12 and 13 of this Agreement), all
      other
      post-termination obligations contained in this Agreement and the provisions
      of
      this Agreement that specifically survive termination of this
      Agreement.

     

    10.           Work
      Product.
      All Work
      Product (defined below) shall be work made for hire by Executive and owned
      by
      the Company. If any of the Work Product may not, by operation of law or
      otherwise, be considered work made for hire by Executive for the Company, or
      if
      ownership of all right, title, and interest to the legal rights therein shall
      not otherwise vest exclusively in the Company, Executive hereby assigns to
      the
      Company, and upon the future creation thereof automatically assigns to the
      Company, without further consideration, the ownership of all Work Product.
      The
      Company shall have the right to obtain and hold in its own name copyrights,
      patents, registrations, and any other protection available in the Work Product.
      Executive agrees to perform, during or after termination of Executive's
      employment by the Company, such further acts as may be necessary or desirable
      to
      transfer, perfect and defend the Company's ownership of the Work Product as
      requested by the Company. "Work Product" means the data, materials, formulas,
      research, documentation, computer programs, communication systems, audio
      systems, system designs, inventions (whether or not patentable), and all works
      of authorship, including all worldwide rights therein under patent, copyright,
      trade secret, confidential information, moral rights and other property rights,
      created or developed in whole or in part by Executive, while employed by the
      Company, within the scope of Executive's employment or which otherwise relates
      in any manner to the Company's Business. 

     

    11.           Set-Off.
      If at
      the time of termination of this Agreement for any reason, Executive has any
      outstanding obligations to the Company, Executive acknowledges that the Company
      is authorized to deduct from Executive's final paycheck and the Separation
      Payment any then documented amounts owed to the Company.

     

    12.           Trade
      Secrets and Confidential Information.
      During
      the course of Executive's employment with the Company, the Company may disclose
      to Executive Trade Secrets and Confidential Information (defined below). The
      Trade Secrets and the Confidential Information of the Company are the sole
      and
      exclusive property of the Company (or a third party providing such information
      to the Company). The disclosure of the Trade Secrets and the Confidential
      Information of the Company to Executive does not give the Executive any license,
      interest or rights of any kind in the Trade Secrets or Confidential
      Information.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    A.           Executive
      may use the Trade Secrets and Confidential Information solely for the benefit
      of
      the Company while Executive is an employee of the Company. Executive shall
      hold
      in confidence the Trade Secrets and Confidential Information of the Company.
      Except in the performance of services for the Company, Executive shall not
      reproduce, distribute, transmit, reverse engineer, decompile, disassemble,
      or
      transfer the Trade Secrets or the Confidential Information of the Company or
      any
      portion thereof. 

     

    B.           The
      obligations under this Agreement with regard to the Trade Secrets of the Company
      remain in effect as long as the information constitutes a trade secret under
      applicable law. The obligations with regard to the Confidential Information
      of
      the Company shall remain in effect while Executive is employed by the Company
      and for a period of three (3) years thereafter. 

     

    C.           Executive
      agrees to return to the Company, upon Executive's resignation, termination,
      or
      upon request by the Company, the Trade Secrets and Confidential Information
      of
      the Company and all materials relating thereto. 

     

    D.           As
      used herein, "Trade Secrets" means information of the Company, and its
      licensors, suppliers, clients and customers, including, but not limited to,
      technical or non-technical data, formulas, patterns, compilations, programs,
      devices, methods, techniques, drawings, processes, financial data, financial
      plans, product plans, or a list of actual or potential customers or suppliers,
      which is not commonly known or available to the public and which information
      (i)
      derives economic value, actual or potential, from not being generally known
      to,
      and not being readily ascertainable by proper means by, other persons who can
      obtain economic value from its disclosure or use and (ii) is the subject of
      efforts that are reasonable under the circumstances to maintain its
      secrecy.

     

    As
      used
      herein, "Confidential Information" means information, other than Trade Secrets,
      that is treated as confidential, and that would potentially damage or interfere
      with, in any manner, the Company's business if disclosed. Confidential
      Information includes, but is not limited to, information concerning the
      Company's financial structure, pricing, revenue sharing, partner agreements,
      customer agreements, marketing plans, methods of operation, and internal
      operating procedures. 

     

    Notwithstanding
      the foregoing, the provisions of this sub-section D do not apply to (i)
      information which is general knowledge in the Company's industry, (ii)
      information that has been disclosed to Executive by third parties who are
      unrelated to the Company and who are not bound by agreements of confidentiality
      with respect thereto, and (iii) as Executive may be required to disclose by
      law
      but only to the extent required by law. 

     

    13.           Restrictive
      Covenants.

     

    A.           Non-competition.
      Executive agrees that for so long as Executive is employed by the Company and
      for a period of six (6) months thereafter, Executive will not, individually
      or
      on behalf of any person, firm, partnership, association, business organization,
      corporation or other entity engaged in the Business of the Company, engage
      in or
      perform, anywhere within the United States, Canada and any other such geography
      in which the Company operates, which shall constitute the territory, any
      activities which are competitive with the Business of the Company. Nothing
      herein shall be construed to prohibit Executive from acquiring shares of capital
      stock of any public corporation, provided that such investment does not exceed
      5% of the stock of such public corporation.

     

    B.           Non-Recruit.
      Executive agrees that for so long as Executive is employed by the Company and
      for a period of six (6) months thereafter, Executive will not call upon,
      solicit, recruit, or assist others in calling upon, recruiting or soliciting
      any
      person who is an employee of the Company and with whom Executive had contact
      or
      became aware of by virtue of Executive's employment, for the purpose of having
      such person work for Executive or for any Client (as defined below) of the
      Company, or for any other person, firm, corporation or entity which is engaged
      in the Business (defined below).

     

    C.           For
      purposes of this Section 13, the term "Business" shall mean the business of
      the
      delivery of editorial content and product research related to consumer financial
      services delivered in print or over the Internet; and the term "Client" shall
      mean any individual or business entity which employs the Company for purposes
      of
      delivery of editorial content and product research related to consumer financial
      services delivered in print or over the Internet. 

     

    14.           Injunctive
      Relief.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Executive
      acknowledges that breach of the provisions of Sections 12, and/or 13 of this
      Agreement would result in irreparable injury and permanent damage to the
      Company, which prohibitions or restrictions Executive acknowledges are both
      reasonable and necessary under the circumstances, singularly and in the
      aggregate, to protect the interests of the Company. Executive recognizes and
      agrees that the ascertainment of damages in the event of a breach of Sections
      12
      and/or 13 of this Agreement would be difficult, and that money damages alone
      would be an inadequate remedy for the injuries and damages which would be
      suffered by the Company from breach by Executive. 

     

    Executive
      therefore agrees: (i) that, in the event of a breach of Sections 12 and/or
      13 of
      this Agreement, the Company, in addition to and without limiting any of the
      remedies or rights which it may have at law or in equity or pursuant to this
      Agreement, shall have the right to injunctive relief or other similar remedy
      in
      order to specifically enforce the provisions hereof; and (ii) to waive and
      not
      to (A) assert any defense to the effect that the Company has an adequate remedy
      at law with respect to any such breach, (B) require that the Company submit
      proof of the economic value of any Trade Secret, or (C) require that the Company
      post a bond or any other security. Nothing contained herein shall preclude
      the
      Company from seeking monetary damages of any kind, including reasonable fees
      and
      expenses of counsel and other expenses, in a court of law. 

     

    15.           Survival.
      The
      provisions of Paragraphs 9 through 31 shall survive termination of this
      Agreement.

     

    16.           Invalidity
      of Any Provision.
      It is
      the intention of the parties hereto that Sections 12 through 14 of this
      Agreement shall be enforced to the fullest extent permissible under the laws
      and
      public policies of each state and jurisdiction in which such enforcement is
      sought, but that the unenforceability (or the modification to conform with
      such
      laws or public policies) of any provision hereof shall not render unenforceable
      or impair the remainder of this Agreement which shall be deemed amended to
      delete or modify, as necessary, the invalid or unenforceable provisions. The
      parties further agree to alter the balance of this Agreement in order to render
      the same valid and enforceable.

     

    17.           Waiver
      of Breach.
      The
      waiver by either party of a breach of any provision of this Agreement by the
      other shall not operate or be construed as a waiver of any subsequent
      breach.

     

    18.           Successors
      and Assigns.
      This
      Agreement shall be binding upon and shall inure to the benefit of the Company,
      its successors and assigns, and the Company shall require any successors and
      assigns to expressly assume and agree to perform this Agreement in the same
      manner and to the same extent that the Company would be required to perform
      it
      if no such succession or assignment had taken place. Neither this Agreement
      nor
      any right or interest hereunder shall be assignable or transferable by
      Executive, his beneficiaries or legal representatives, except by will or by
      the
      laws of descent and distribution.

     

    19.           License.
      To the
      extent that any pre-existing materials are contained in the materials Executive
      delivers to the Company or the Company's customers, and such preexisting
      materials are not Work Product, Executive grants to the Company an irrevocable,
      nonexclusive, worldwide, royalty-free license to: (i) use and distribute
      (internally or externally) copies of, and prepare derivative works based upon,
      such pre-existing materials and derivative works thereof and (ii) authorize
      others to do any of the foregoing. Executive shall notify Company in writing
      of
      any and all pre-existing materials delivered to the Company by
      Executive.

     

    20.           Release.
      Executive acknowledges that Executive may provide the image, likeness, voice,
      or
      other characteristics of Executive or third parties ("Owner") in the services,
      materials, computer programs and other deliverables that Executive provides
      as a
      part of this Agreement ("Deliverables"). Executive hereby consents to the use
      of
      such characteristics of Executive by the Company in the products or services
      of
      the Company and releases the Company, its agents, contractors, licensees and
      assigns from any claims which Executive has or may have for invasion of privacy,
      right of publicity, defamation, copyright infringement, or any other causes
      of
      action arising out of the use, adaptation, reproduction, distribution,
      broadcast, or exhibition of such characteristics ("Release"). Executive
      represents that Executive has obtained the same Release in writing benefiting
      Company from all third party Owners whose characteristics are included in the
      Deliverables.

     

    21.           Severability.
      If any
      provision or part of a provision of this Agreement shall be determined to be
      void and unenforceable by a court of competent jurisdiction, the remainder
      of
      this Agreement shall remain valid and enforceable.

     

    22.           Costs
      of Enforcement.
      In the
      event either party breaches this Agreement, the breaching party shall be liable
      to the non-breaching party for all costs of enforcement, including reasonable
      attorneys' fees and court costs, in addition to all other damages and redress
      available in equity or at law.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    23.           No
      Prior Agreements.
      Executive hereby represents and warrants to Company that the execution of this
      Agreement by Executive and Executive's employment by Company and the performance
      of Executive's duties hereunder shall not violate or be a breach of any
      agreement with a former employer, client or any other person or
      entity.

     

    24.           Entire
      Agreement.
      This
      Agreement represents the entire understanding of the parties concerning the
      subject matter hereof and supersedes all prior communications, agreements and
      understandings, whether oral or written, relating to the subject matter hereof.
      The language contained herein shall be deemed to be that negotiated and approved
      by both parties and no rule of strict construction shall be
      applied.

     

    25.           Modification.
      This
      Agreement may be modified only by agreement in writing signed by both Company
      and Executive.

     

    26.           Governing
      Law.
      This
      Agreement shall be governed in all aspects by the laws of the State of Florida
      without regard to its rules governing conflicts of law.

     

    27.           Section
      Headings.
      The
      section headings are included for convenience and are not intended to limit
      or
      affect the interpretation of this Agreement.

     

    28.           Notice.
      Whenever
      any notice is required, it shall be given in writing addressed as
      follows:

     

    
      	
              To
                Company:

            	 
	 	
              Bankrate,
                Inc.

            
	 	
              11811
                U.S. Highway One Suite 101

            
	 	
              North
                Palm Beach, Florida 33408

            
	 	
              Attention:
                Thomas R. Evans

               

            
	
              With
                a copy to:

            	 
	 	
              David
                G. Bates, Esq.

            
	 	
              Gunster
                Yoakley & Stewart, P.A.

            
	 	
              777
                South Flagler Drive, Suite 500

            
	 	
              West
                Palm Beach, FL 33401

            
	 	 
	 	 
	
              To
                Executive:

            	
              Lynn
                E. Varsell

            
	 	
              420
                E 79th
                Street #11E

            
	 	
              New
                York, New York 10021

            

    

     

    Notice
      shall be deemed given and effective three (3) days after the deposit in the
      U.S.
      mail of a writing addressed as above and sent first class mail, certified,
      return receipt requested, or when actually received. Either party may change
      the
      address for notice by notifying the other party of such change in accordance
      with this Section

     

    29.           Indemnification.
      The
      Company agrees, to the extent permitted by applicable law and the Company's
      Articles of Incorporation, to defend, indemnify and hold harmless Executive
      against any and all loss, damage, liability and expense, including, without
      limitation, reasonable attorneys' fees, disbursements court costs, and any
      amounts paid in settlement and the costs and expenses of enforcing this section
      of the Agreement, which may be suffered or incurred by Executive in connection
      with the provision of his services hereunder, including, without limitation,
      any
      claims, litigations, disputes, actions, investigations or other matters,
      provided that such loss, damage, liability and expense (i) arises out of or
      in
      connection with the performance by Executive of his obligations under this
      Agreement and (ii) is not the result of any material breach by Executive of
      his
      obligations hereunder, and provided further that Company shall be under no
      obligation to defend, indemnify or hold harmless Executive if Executive has
      acted with gross negligence or willful misconduct.

     

    In
      addition to the foregoing, Company agrees to provide Executive with coverage
      under a Directors & Officers insurance policy to the same extent as the
      Company currently provides its executive officers.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    30.           Jurisdiction
      and Venue.
      The
      parties acknowledge that a substantial portion of the negotiations, anticipated
      performance and execution of this Agreement occurred or shall occur in Palm
      Beach County, Florida. Any civil action or legal proceeding arising out of
      or
      relating to this Agreement shall be brought in the courts of record of the
      State
      of Florida in Palm Beach County or the United States District Court, Southern
      District of Florida. Each party consents to the jurisdiction of such Florida
      court in any such civil action or legal proceeding and waives any objection
      to
      the laying of venue of any such civil action or legal proceeding in such Florida
      court. Service of any court paper may be effected on such party by mail, as
      provided in this Agreement, or in such other manner as may be provided under
      applicable laws, rules of procedure or local rules.

     

    31.           JURY
      WAIVER. IN
      ANY
      CIVIL ACTION, COUNTERCLAIM, OR PROCEEDING, WHETHER AT LAW OR IN EQUITY, WHICH
      ARISES OUT OF, CONCERNS, OR RELATES TO THIS AGREEMENT, ANY AND ALL TRANSACTIONS
      CONTEMPLATED BY THIS AGREEMENT, THE PERFORMANCE OF THIS AGREEMENT, OR THE
      RELATIONSHIP CREATED BY THIS AGREEMENT, WHETHER SOUNDING IN CONTRACT, TORT,
      STRICT LIABILITY, OR OTHERWISE, TRIAL SHALL BE TO A COURT OF COMPETENT
      JURISDICTION AND NOT TO A JURY. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT
      IT MAY HAVE TO A TRIAL BY JURY. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART
      OR A
      COPY OF THIS AGREEMENT WITH ANY COURT, AS WRITTEN EVIDENCE OF THE CONSENT OF
      THE
      PARTIES TO THIS AGREEMENT OF THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. NEITHER
      PARTY HAS MADE OR RELIED UPON ANY ORAL REPRESENTATIONS TO OR BY ANY OTHER PARTY
      REGARDING THE ENFORCEABILITY OF THIS PROVISION. EACH PARTY HAS READ AND
      UNDERSTANDS THE EFFECT OF THIS JURY WAIVER PROVISION. EACH PARTY ACKNOWLEDGES
      THAT IT HAS BEEN ADVISED BY ITS OWN COUNSEL WITH RESPECT TO THE TRANSACTION
      GOVERNED BY THIS AGREEMENT AND SPECIFICALLY WITH RESPECT TO THE TERMS OF THIS
      SECTION.

     

     

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

     

    
      	
              EXECUTIVE:

            	
              COMPANY:

            
	 	 
	 	
              BANKRATE,
                INC.

            
	 	 
	
              /s/
                LYNN VARSELL

              
                

              

            	
              By:
                /s/
                THOMAS R. EVANS

              
                
                  
Thomas
                  R. Evans

              

            
	 	
              President
                & CEO

            

    

    

    
      
        
        

      

      
        7

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