Document:

Exhibit 4.2

    

      EXECUTION
COPY

      

      THIS
NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE
STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF A WRITTEN
OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO THE
COMPANY THAT THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE
SOLD, TRANSFERRED,  OR OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM
REGISTRATION UNDER THE ACT AND SUCH STATE SECURITIES LAWS.

      

      JUMA
TECHNOLOGY CORP.

      

      10%
Convertible Bridge Note

      

      Date:
January 28, 2010

      

      $500,000.00

      

      For value
received, JUMA TECHNOLOGY CORP., a Delaware corporation (the “Company”),
and NECTAR SERVICES CORP., a Delaware corporation (“Nectar”,
and together with the Company, the “Makers”),
hereby promise to pay to the order of Vision Opportunity Master Fund,
Ltd. (together with its successors, representatives, and permitted
assigns, the “Holder”),
in accordance with the terms hereinafter provided, the principal amount of five hundred thousand ($500,000.00)
dollars, together with interest thereon.  The Makers are
issuing this 10% convertible bridge note (the “Note”)
to the Holder pursuant to the Purchase Agreement (as defined in Section
1.1 hereof).

       

      All
payments under or pursuant to this Note shall be made in United States Dollars
in immediately available funds to the Holder at the address of the Holder as set
forth in the Purchase Agreement or at such other place as the Holder may
designate from time to time in writing to the Makers or by wire transfer of
funds to the Holder’s account, instructions for which are attached hereto as
Exhibit
A. The outstanding principal balance and all accrued Interest (as
defined herein) of this Note shall be due and payable on May 21, 2010 (the
“Maturity
Date”) or at such earlier time as provided herein.

       

      ARTICLE
I

       

      Section
1.1       Purchase
Agreement.  This Note has been executed and delivered pursuant
to the Note and Warrant Purchase Agreement dated as of January 28, 2010 (the
“Purchase
Agreement”) by and among the Makers and the purchasers listed
therein.  Capitalized terms used and not otherwise defined herein
shall have the meanings set forth for such terms in the Purchase
Agreement.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Section
1.2       Interest.  Beginning
on the issuance date of this Note (the “Issuance
Date”), the outstanding principal balance of this Note shall bear
interest (“Interest”),
at a rate per annum equal to ten percent (10%), so long as any principal amount
evidenced by this Note remains outstanding. Interest shall be payable in cash,
on the Maturity Date.  Interest shall be computed on the basis of a
360-day year of twelve (12) 30-day months and shall accrue commencing on the
Issuance Date.  Furthermore, upon the occurrence of an Event of
Default (as defined in Section
2.1 hereof), then to the extent permitted by law, the Makers will pay
Interest in cash to the Holder, payable on demand, on the outstanding principal
balance of this Note from the date of the Event of Default through the date of
payment at a new rate of the lesser of twelve percent (12%) and the maximum
applicable legal rate per annum (the “Default
Rate”).

       

      Section
1.3       Ranking and
Covenants.

       

      (a)           Other
than such indebtedness existing as of the Issuance Date, the Makers will not,
and will not permit any Subsidiary to, directly or indirectly, enter into,
create, incur, assume or suffer to exist any indebtedness of any kind, that is
senior in any respect to the Makers’ obligations under the Notes, and the Makers
will not, and will not permit any Subsidiary to, directly or indirectly, incur
any Lien on or with respect to any of its property or assets now owned or
hereafter acquired or any interest therein or any income or profits therefrom,
except for indebtedness with respect to capital leases incurred in the ordinary
course of business.

       

      (b)           So
long as any Notes are outstanding, none of the Makers nor any Subsidiary shall,
directly or indirectly, (i) redeem, purchase or otherwise acquire any of the
Company’s capital stock or set aside any monies for such a redemption, purchase
or other acquisition or (ii) issue any Options or Convertible Securities with an
exercise price or a conversion price or a number of underlying shares that
floats or resets or otherwise varies or is subject to adjustment based (directly
or indirectly) on market prices of the Common Stock.

       

      Section
1.4       Payment on Non-Business
Days.  Whenever any payment to be made shall be due on a
Saturday, Sunday or a public holiday under the laws of the State of New York,
such payment may be due on the next succeeding business day and such next
succeeding day shall be included in the calculation of the amount of accrued
Interest payable on such date.

       

      Section
1.5       Transfer.  This
Note may be transferred or sold, subject to the provisions of Section
4.8 of this Note, or pledged, hypothecated or otherwise granted as
security by the Holder.

       

      Section
1.6       Replacement.  Upon
receipt of a duly executed and notarized written statement from the Holder with
respect to the loss, theft or destruction of this Note (or any replacement
hereof) and a standard indemnity reasonably satisfactory to the Makers, or, in
the case of a mutilation of this Note, upon surrender and cancellation of such
Note, the Makers shall issue a new Note, of like tenor and amount, in lieu of
such lost, stolen, destroyed or mutilated Note.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      ARTICLE
II

       

      EVENTS OF
DEFAULT;  REMEDIES

       

      Section
2.1       Events of
Default.  The occurrence of any of the following events shall
be an “Event of
Default” under this Note:

       

      (a)           the
Makers shall fail to make any principal or Interest payments due under this Note
on the date such payments are due and such default is not fully cured within ten
(10) business days after the occurrence thereof; or

       

      (b)           Intentionally
Omitted; or

       

      (c)           the
suspension from listing, without subsequent listing on any one of, or the
failure of the Common Stock to be listed or quoted on at least one of the OTC
Bulletin Board, the American Stock Exchange, the NASDAQ Global Market, the
NASDAQ Capital Market or The New York Stock Exchange, Inc. for a period of ten
(10) consecutive Trading Days; or

       

      (d)           the
Company’s notice to the Holder, including by way of public announcement, at any
time, of its inability to comply (including for any of the reasons described in
Section
3.8(a) hereof) or its intention not to comply with proper requests for
conversion of this Note into shares of Common Stock; or

       

      (e)           either
(i) the Makers shall fail to timely deliver the shares of Common Stock upon an
Optional Conversion of the Note, or (ii) the Makers shall fail to make the
payment of any fees and/or liquidated damages under this Note or the Purchase
Agreement, which failure is not remedied within ten (10) business days after the
occurrence thereof; or

       

      (f)
           Intentionally
Omitted; or

       

      (g)           default
shall be made in the performance or observance of (i) any covenant, condition or
agreement contained in this Note and such default is not fully cured within ten
(10) business days after the Holder delivers written notice to the Makers of the
occurrence thereof or (ii) any covenant, condition or agreement contained in the
Purchase Agreement, the Other Notes, the Warrants or any other Transaction
Document which is not covered by any other provisions of this Section
2.1 and such default is not fully cured within ten (10) business days
after the Holder delivers written notice to the Makers of the occurrence
thereof;  or

       

      (h)           any
material representation or warranty made by either of the Makers herein or in
the Purchase Agreement, the Other Notes, the Warrants or any other Transaction
Document shall prove to have been false or incorrect or breached in a material
respect on the date as of which made and the Holder delivers written notice to
the Makers of the occurrence thereof; or

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (i)
           either of the
Makers shall after the Issuance Date (A) default in any payment of any amount or
amounts of principal of or interest on any indebtedness (other than the
indebtedness hereunder) the aggregate principal amount of which indebtedness is
in excess of $100,000 or (B) default in the
observance or performance of any other agreement or condition relating to any
indebtedness or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event shall occur or condition exist, the effect
of which default or other event or condition is to cause, or to permit the
holder or holders or beneficiary or beneficiaries of such indebtedness to cause
with the giving of notice if required, such indebtedness to become due prior to
its stated maturity; or

       

      (j)
           either of the
Makers shall (i) apply for or consent to the appointment of, or the taking of
possession by, a receiver, custodian, trustee or liquidator of itself or of all
or a substantial part of its property or assets, (ii) make a general assignment
for the benefit of its creditors, (iii) commence a voluntary case under the
United States Bankruptcy Code (as now or hereafter in effect) or under the
comparable laws of any jurisdiction (foreign or domestic), (iv) file a petition
seeking to take advantage of any bankruptcy, insolvency, moratorium,
reorganization or other similar law affecting the enforcement of creditors’
rights generally, (v) acquiesce in writing to any petition filed against it in
an involuntary case under United States Bankruptcy Code (as now or hereafter in
effect) or under the comparable laws of any jurisdiction (foreign or domestic),
or (vi) issue a notice of bankruptcy or winding down of its operations or issue
a press release regarding same; or

       

      (k)           a
proceeding or case shall be commenced in respect of either of the Makers,
without its application or consent, in any court of competent jurisdiction,
seeking (i) the liquidation, reorganization, moratorium, dissolution, winding
up, or composition or readjustment of its debts, (ii) the appointment of a
trustee, receiver, custodian, liquidator or the like of it or of all or any
substantial part of its assets in connection with its liquidation or dissolution
or (iii) similar relief in respect of it under any law providing for the relief
of debtors, and such proceeding or case described in clause (i), (ii) or (iii)
shall continue undismissed, or unstayed and in effect, for a period of thirty
(30) days or any order for relief shall be entered in an involuntary case under
United States Bankruptcy Code (as now or hereafter in effect) or under the
comparable laws of any jurisdiction (foreign or domestic) against either of the
Makers or action under the laws of any jurisdiction (foreign or domestic)
analogous to any of the foregoing shall be taken with respect to either of the
Makers and shall continue undismissed, or unstayed and in effect for a period of
thirty (30) days; or

       

      (l)
           the failure of
the Company to instruct its transfer agent to remove any legends from shares of
Common Stock eligible to be sold under Rule 144 of the Securities Act and issue
such unlegended certificates to the Holder within five (5) business days of the
Holder’s request so long as the Holder has provided reasonable assurances to the
Company, and based thereon the Company has determined, that such shares of
Common Stock can be sold pursuant to Rule 144; or

       

      (m)          the
failure of either of the Makers to pay any other amounts due to the Holder
herein or any other Transaction Document within ten (10) business days of the
date such payments are due and such default is not fully cured within ten (10)
business days after the Holder delivers written notice to the Maker of the
occurrence thereof; or

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (n)           the
occurrence of an event of default under any other Transaction
Document.

       

      Section
2.2       Remedies Upon An Event of
Default.  If an Event of Default shall have occurred and shall
be continuing, the Holder of this Note may at any time at its option, (a)
declare the entire unpaid principal balance of this Note, together with all
Interest accrued hereon, due and payable, and thereupon, the same shall be
accelerated and so due and payable, without presentment, demand, protest, or
notice, all of which are hereby expressly unconditionally and irrevocably waived
by the Makers; provided,
however, that upon the occurrence of an Event of Default described in
Sections
2.1(j) or (k),
the outstanding principal balance and accrued Interest hereunder shall be
automatically due and payable, (b) demand that the principal amount of this Note
then outstanding shall be converted into shares of Common Stock at a Conversion
Price per share calculated pursuant to Section
3.1 hereof assuming that the date that the Event of Default occurs is the
Optional Conversion Date (as defined in Section
3.1 hereof), or (c) exercise or otherwise enforce any one or more of the
Holder’s rights, powers, privileges, remedies and interests under this Note, the
Purchase Agreement or applicable law.  No course of delay on the part
of the Holder shall operate as a waiver thereof or otherwise prejudice the right
of the Holder.  No remedy conferred hereby shall be exclusive of any
other remedy referred to herein or now or hereafter available at law, in equity,
by statute or otherwise.

       

      ARTICLE
III

       

      CONVERSION;
ANTIDILUTION; PREPAYMENT; COVENANTS

       

      Section
3.1        (a) Optional
Conversion.  At any time and from time to time on or after the
Issuance Date, this Note shall be convertible (in whole or in part), at the
option of the Holder (an “Optional
Conversion”), into such number of fully paid and non-assessable shares of
Common Stock as is determined by dividing (x) that portion of the outstanding
principal balance under this Note as of such date that the Holder elects to
convert by (y) the Conversion Price (as defined in Section
3.2(a) hereof) then in effect  (the “Optional
Conversion Rate”) on the date on which the Holder faxes a notice of
conversion (the “Optional
Conversion Notice”), duly executed, to the Company (facsimile number
(631) 270-1105, Attn.: Chief Executive Officer) (an “Optional
Conversion Date”); provided, however, that the
Conversion Price shall be subject to adjustment as described in Section
3.6 of this Note.  The Holder shall deliver this Note to the
Company at the address designated in the Purchase Agreement as soon as
practicable after such time that this Note is fully converted.  With
respect to partial conversions of this Note, the Company shall keep and attach
hereto written records of the amount of this Note converted as of each
Conversion Date.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      (b)           Mandatory Conversion.
Effective as of the closing (the “Mandatory Conversion
Date”) of a Qualified Financing (as defined below), any and all
outstanding principal and accrued Interest represented by this Note shall
automatically (without further act or deed of the Holder or the Company) convert
(the “Mandatory
Conversion”) into the type of securities of the Company issued by the
Company in the Qualified Financing (the “Qualified
Financing Stock”) by dividing (x) the outstanding principal balance under
this Note as of the Mandatory Conversion Date by (y) a conversion price which
shall be equal to the lesser of (i) the price per share at which the Company
sells a share of Qualified Financing Stock in the Qualified Financing or (ii)
the Conversion Price (as defined in Section
3.2(a)).  A “Qualified
Financing” shall occur when both (1) a sale by the Company of shares of
equity of the Company to one or more purchasers generates not less than gross
proceeds to the Company of $5,000,000 closing within one hundred twenty (120)
days of the Issuance Date, and (2) the investors in such Qualified Financing are
issued either convertible preferred stock or fixed price convertible notes of
the Company. The Company shall cause notice of the Mandatory Conversion (the
“Mandatory Conversion
Notice”) to be mailed to the Holder, at such Holder’s address, at least
ten (10) days prior to the Mandatory Conversion Date.  On or before
the Mandatory Conversion Date, the Holder shall surrender this Note at the place
designated in such notice, together with a statement of the name or names (with
address) in which the certificate or certificates for shares of Qualified
Financing Stock which shall be issuable on such conversion shall be issued.
Notwithstanding the foregoing provisions of this Section
3.1(b), the Holder may convert any portion of this Note pursuant to Section
3.1(a) on or prior to the date immediately preceding the date of such
Mandatory Conversion.

       

      Section
3.2       Conversion
Price.

       

      (a)           The
term “Conversion
Price” shall mean $0.15, subject to adjustment under Section
3.6 hereof.

       

      (b)           The
term “Conversion
Shares” shall mean such shares of Common Stock issuable upon an Optional
Conversion of this Note. The term “Conversion
Securities” shall mean such securities of the Company issuable upon a
Mandatory Conversion of this Note in connection with the occurrence of a
Qualified Financing.

       

      (c)           Notwithstanding
any of the foregoing to the contrary, if during any period (a “Black-out
Period”), the Holder is unable to trade any Common Stock issued or
issuable upon an Optional Conversion of this Note immediately due to the
postponement of filing or delay or suspension of effectiveness of the
Registration Statement or because the Company has otherwise informed such Holder
that an existing prospectus cannot be used at that time in the sale or transfer
of such Common Stock, such Holder shall have the option but not the obligation
on any Optional Conversion Date within ten (10) Trading Days following the
expiration of the Black-out Period of using the Conversion Price applicable on
such Optional Conversion Date or any Conversion Price selected by the Holder
that would have been applicable had such Optional Conversion Date been at any
earlier time during the Black-out Period or within the ten (10) Trading Days
thereafter.  In no event shall the Black-out Period have any effect on
the Maturity Date of this Note.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      Section
3.3       Mechanics of
Conversion.

       

      (a)           Not
later than three (3) Trading Days after any Optional Conversion Date or the
Mandatory Conversion Date, as the case may be (the “Delivery
Date”), the Company or its designated transfer agent, as applicable,
shall issue and deliver to (i) the Depository Trust Company (“DTC”)
account on the Holder’s behalf via the Deposit Withdrawal Agent Commission
System (“DWAC”)
as specified in the Optional Conversion Notice, registered in the name of the
Holder or its designee, for the number of shares of Common Stock to which the
Holder shall be entitled, or (ii) to the Holder, the Conversion Securities as
specified in the Mandatory Conversion Notice.  Notwithstanding the
foregoing, in the alternative, not later than the Delivery Date, the Company
shall deliver to the Holder by express courier a certificate or certificates
which shall be free of restrictive legends and trading restrictions (other than
those required by Section
5.1 of the Purchase Agreement and/or the related documentation of the
Qualified Financing, as the case may be) representing the number of Conversion
Shares or Conversion Securities, as the case may be, being acquired upon the
conversion of this Note.  If in the case of any Optional Conversion
such DWAC transfer or certificate or certificates are not delivered to or as
directed by the applicable Holder by the Delivery Date, the Holder shall be
entitled by written notice to the Company at any time on or before its receipt
of such certificate or certificates thereafter, to rescind such Optional
Conversion, in which event the Company shall immediately return this Note
tendered for Optional Conversion, whereupon the Company and the Holder shall
each be restored to their respective positions immediately prior to the delivery
of such notice of revocation, except that any amounts described in Sections
3.3(b) and (c)
shall be payable through the date notice of rescission is given to the
Maker.

       

      (b)           The
Company understands that a delay in the delivery of the Conversion Shares or the
Conversion Securities beyond the Delivery Date could result in economic loss to
the Holder.  If the Company fails to deliver to the Holder such shares
via DWAC or a certificate or certificates, as applicable, pursuant to this Section
3.3(b) by the Delivery Date, the Makers shall pay to such Holder, in
cash, an amount per Trading Day for each Trading Day until such shares are
delivered via DWAC or certificates are delivered, as the case may be, together
with interest on such amount at a rate of 10% per annum, accruing until such
amount and any accrued interest thereon is paid in full, equal to the greater of
(A) (i) 1% of the aggregate principal amount of the Notes requested or required
to be converted for the first five (5) Trading Days after the Delivery Date and
(ii) 2% of the aggregate principal amount of the Notes requested or required to
be converted for each Trading Day thereafter and (B) $5,000 per day (which
amount shall be paid as liquidated damages and not as a
penalty).  Nothing herein shall limit a Holder’s right to pursue
actual damages for the Company’s failure to deliver certificates representing
the Conversion Shares or the Conversion Securities (as the case may be) within
the period specified herein and such Holder shall have the right to pursue all
remedies available to it at law or in equity (including, without limitation, a
decree of specific performance and/or injunctive
relief).  Notwithstanding anything to the contrary contained herein,
the Holder shall be entitled to withdraw an Optional Conversion Notice, and upon
such withdrawal the Makers shall only be obligated to pay the liquidated damages
accrued in accordance with this Section
3.3(b) through the date the Optional Conversion Notice is
withdrawn.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      (c)          In
addition to any other rights available to the Holder, if the Company fails to
cause its transfer agent to transmit to the Holder a certificate or certificates
representing the shares of Common Stock issuable upon an Optional Conversion of
this Note on or before the Delivery Date, and if after such date the Holder is
required by its broker to purchase (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Holder of the
shares of Common Stock issuable upon an Optional Conversion of this Note which
the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Makers
shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total
purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of shares of Common Stock issuable upon an Optional Conversion of this
Note that the Company was required to deliver to the Holder in connection with
the Optional Conversion at issue times (B) the price at which the sell order
giving rise to such purchase obligation was executed, and (2) at the option of
the Holder, either reinstate the portion of the Note and equivalent number of
shares of Common Stock for which such Optional Conversion was not honored or
deliver to the Holder the number of shares of Common Stock that would have been
issued had the Company timely complied with the Optional Conversion and delivery
obligations hereunder.  For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to
an attempted Optional Conversion of shares of Common Stock with an aggregate
sale price giving rise to such purchase obligation of $10,000, under clause (1)
of the immediately preceding sentence the Makers shall be required to pay the
Holder $1,000. The Holder shall provide the Makers written notice indicating the
amounts payable to the Holder in respect of the Buy-In, together with applicable
confirmations and other evidence reasonably requested by the
Makers.  Nothing herein shall limit a Holder’s right to pursue any
other remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver certificates representing
shares of Common Stock upon conversion of this Note as required pursuant to the
terms hereof.

       

      Section
3.4       Ownership Cap and Certain
Conversion Restrictions. Notwithstanding anything to the contrary set
forth in Section
3 of this Note, at no time may the Holder convert all or a portion of
this Note if the number of shares of Common Stock to be issued pursuant to such
conversion would exceed, when aggregated with all other shares of Common Stock
owned by the Holder and its affiliates at such time, the number of shares of
Common Stock which would result in the Holder and its affiliates beneficially
owning (as determined in accordance with Section 13(d) of the Exchange Act and
the rules thereunder) more than 4.99% of all of the Common Stock outstanding at
such time; provided,
however, that upon the
Holder of this Note providing the Company with sixty-one (61) days notice
(pursuant to Section
4.1 hereof) (the “Waiver
Notice”) that such Holder would like to waive this Section
3.4 with regard to any or all shares of Common Stock issuable upon
conversion of this Note, this Section
3.4 will be of no force or effect with regard to all or a portion of the
Note referenced in the Waiver Notice; provided, further, that during the
sixty-one (61) day period prior to the Maturity Date of this Note the Holder may
waive this Section
3.4 upon providing the Waiver Notice at any time during such sixty-one
(61) day period; and provided, further, that any Waiver
Notice during the sixty-one (61) day period prior to the Maturity Date will not
be effective until the Maturity Date.

       

      Section
3.5       Intentionally
Omitted.

       

      Section
3.6       Adjustment of Conversion
Price.

       

      (a)          The
Conversion Price shall be subject to adjustment from time to time as
follows:

       

      (i)       Adjustments for Stock Splits
and Combinations.  If the Company shall at any time or from
time to time after the Issuance Date, effect a stock split of the outstanding
Common Stock, the applicable Conversion Price in effect immediately prior to the
stock split shall be proportionately decreased.  If the Company shall
at any time or from time to time after the Issuance Date, combine the
outstanding shares of Common Stock, the applicable Conversion Price in effect
immediately prior to the combination shall be proportionately
increased.  Any adjustments under this Section
3.6(a)(i) shall be effective at the close of business on the date the
stock split or combination occurs.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (ii)
         Adjustments for Certain
Dividends and Distributions.  If the Company shall at any time
or from time to time after the Issuance Date, make or issue or set a record date
for the determination of holders of Common Stock entitled to receive a dividend
or other distribution payable in shares of Common Stock, then, and in each
event, the applicable Conversion Price in effect immediately prior to such event
shall be decreased as of the time of such issuance or, in the event such record
date shall have been fixed, as of the close of business on such record date, by
multiplying, the applicable Conversion Price then in effect by a
fraction:

       

      (1)           the
numerator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date; and

       

      (2)           the
denominator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or distribution.

       

      (iii)         Adjustment for Other
Dividends and Distributions.  If the Company shall at any time
or from time to time after the Issuance Date, make or issue or set a record date
for the determination of holders of Common Stock entitled to receive a dividend
or other distribution payable in other than shares of Common Stock, then, and in
each event, an appropriate revision to the applicable Conversion Price shall be
made and provision shall be made (by adjustments of the Conversion Price or
otherwise) so that the holders of this Note shall receive upon conversions
thereof, in addition to the number of shares of Common Stock receivable thereon,
the number of securities of the Company which they would have received had this
Note been converted into Common Stock on the date of such event and had
thereafter, during the period from the date of such event to and including the
Conversion Date, retained such securities (together with any distributions
payable thereon during such period), giving application to all adjustments
called for during such period under this Section
3.6(a)(iii) with respect to the rights of the holders of this Note and
the Other Notes; provided,
however, that if such record date shall have been fixed and such dividend
is not fully paid or if such distribution is not fully made on the date fixed
therefor, the Conversion Price shall be adjusted to the Conversion Price in
effect immediately prior to such adjustment until the time of actual payment of
such dividends or distributions.

       

      (iv)         Adjustments for
Reclassification, Exchange or Substitution.  If the Common
Stock issuable upon conversion of this Note at any time or from time to time
after the Issuance Date shall be changed to the same or different number of
shares of any class or classes of stock, whether by reclassification, exchange,
substitution or otherwise (other than by way of a stock split or combination of
shares or stock dividends provided for in Sections
3.6(a)(i), (ii)
and (iii),
or a reorganization, merger, consolidation, or sale of assets provided for in
Section
3.6(a)(v)), then, and in each event, an appropriate revision to the
Conversion Price shall be made and provisions shall be made (by adjustments of
the Conversion Price or otherwise) so that the Holder shall have the right
thereafter to convert this Note into the kind and amount of shares of stock and
other securities receivable upon reclassification, exchange, substitution or
other change, by holders of the number of shares of Common Stock into which such
Note might have been converted immediately prior to such reclassification,
exchange, substitution or other change, all subject to further adjustment as
provided herein.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (v)          Adjustments for
Reorganization, Merger, Consolidation or Sales of Assets.  If
at any time or from time to time after the Issuance Date there shall be a
capital reorganization of the Company (other than by way of a stock split or
combination of shares or stock dividends or distributions provided for in Section
3.6(a)(i), (ii)
and (iii),
or a reclassification, exchange or substitution of shares provided for in Section
3.6(a)(iv)), or a merger or consolidation of the Company with or into
another corporation where the holders of outstanding voting securities of the
Company prior to such merger or consolidation do not own over fifty percent
(50%) of the outstanding voting securities of the merged or consolidated entity,
immediately after such merger or consolidation, or the sale of all or
substantially all of the Company’s properties or assets to any other person (an
“Organic
Change”), then as a part of such Organic Change, (A) if the surviving
entity in any such Organic Change is a public company that is registered
pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and its common stock is listed or quoted on a national exchange or
the OTC Bulletin Board, an appropriate revision to the Conversion Price shall be
made and provision shall be made (by adjustments of the Conversion Price) so
that the Holder shall have the right thereafter to convert such Note into the
kind and amount of shares of stock and other securities or property of the
Company or any successor corporation as it would have received as a result of
such Organic Change if it had converted this Note into Common Stock immediately
prior to such Organic Change, and (B) if the surviving entity in any such
Organic Change is not a public company that is registered pursuant to the
Exchange Act, or its common stock is not listed or quoted on a national exchange
or the OTC Bulletin Board, the Holder shall have the right to demand prepayment
pursuant to Section
3.7(b) hereof.  In any such case, appropriate adjustment shall
be made in the application of the provisions of this Section
3.6(a)(v) with respect to the rights of the Holder after the Organic
Change to the end that the provisions of this Section
3.6(a)(v) (including any adjustment in the applicable Conversion Price
then in effect and the number of shares of stock or other securities deliverable
upon conversion of this Note) shall be applied after that event in as nearly an
equivalent manner as may be practicable.

       

      (vi)      Adjustments for Issuance of
Additional Shares of Common Stock.

      

      (1)           In
the event the Company shall, at any time within one (1) year following the
Issuance Date (the “Full
Ratchet Period”), issue or sell any additional shares of common stock
(otherwise than as provided  in the foregoing subsections (i) through
(v) of this Section
3.6(a) or pursuant to Common Stock Equivalents (hereafter defined)
granted or issued prior to the Issuance Date) (“Additional
Shares of Common Stock”), at a price per share less than the Conversion
Price then in effect or without consideration (the “New
Conversion Price”), then the Conversion Price upon each such issuance
shall be reduced to an amount equal to such New Conversion
Price.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      (2)           The
provisions of paragraph (1) of this Section
3.6(a)(vi) shall not apply to any issuance of Additional Shares of Common
Stock for which an adjustment is provided under Section
3.6(a)(vii).  No adjustment of the number of shares of Common
Stock for which this Note shall be convertible shall be made under paragraph (1)
of this Section
3.6(a)(vi) upon the issuance of any Additional Shares of Common Stock
which are issued pursuant to the exercise of any Common Stock Equivalents, if
any such adjustment shall previously have been made upon the issuance of such
Common Stock Equivalents pursuant to Section
3.6(a)(vii).

      

      (vii)    Issuance of Common Stock
Equivalents.  In the event the Company shall at any time within
the Full Ratchet Period issue any securities convertible into or exchangeable
for, directly or indirectly, Common Stock (“Convertible
Securities”), other than the Notes, or any rights or warrants or options
to purchase any such Common Stock or Convertible Securities, shall be issued or
sold (collectively, the “Common
Stock Equivalents”) and the aggregate price per share for which
Additional Shares of Common Stock may be issuable thereafter pursuant to such
Common Stock Equivalent, plus the consideration received by the Company for
issuance of such Common Stock  Equivalent divided by the number of
shares of Common Stock issuable pursuant to such Common Stock Equivalent (the
“Aggregate
Per Common Share Price”) shall be less than the applicable Conversion
Price then in effect, or if, after any such issuance of Common Stock
Equivalents, the price per share for which Additional Shares of Common Stock may
be issuable thereafter is amended or adjusted, and such price as so amended
shall make the Aggregate Per Common Share Price be less than the applicable
Conversion Price in effect at the time of such amendment or adjustment, then the
applicable Conversion Price upon each such issuance or amendment shall be
adjusted as provided in the first sentence of subsection (vi) of this Section
3.6(a) on the basis that (1) the maximum number of Additional Shares of
Common Stock issuable pursuant to all such Common Stock Equivalents shall be
deemed to have been issued (whether or not such Common Stock Equivalents are
actually then exercisable, convertible or exchangeable in whole or in part) as
of the earlier of (A) the date on which the Company shall enter into a firm
contract for the issuance of such Common Stock Equivalent, or (B) the date of
actual issuance of such Common Stock Equivalent.  No adjustment of the
applicable Conversion Price shall be made under this subsection (vii) upon the
issuance of any Convertible Security which is issued pursuant to the exercise of
any warrants or other subscription or purchase rights therefor, if any
adjustment shall previously have been made to the exercise price of such
warrants or other subscription or purchase rights therefor, then in effect upon
the issuance of such warrants or other subscription or purchase rights therefor
pursuant to this subsection (vii).  No adjustment shall be made to the
Conversion Price upon the issuance of Common Stock pursuant to the exercise,
conversion or exchange of any Convertible Security or Common Stock Equivalent
where an adjustment to the Conversion Price was made as a result of the issuance
or purchase of any Convertible Security or Common Stock
Equivalent.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      (viii)       Subsequent Common Stock and
Common Stock Equivalents Issues.  In the event the Company,
shall, at any time after the Full Ratchet Period, issue or sell any Additional
Shares of Common Stock or Common Stock Equivalents (otherwise than as provided
in the foregoing subsections of this Section
4), at a price per share less than the Conversion Price, or without
consideration, the Conversion Price then in effect upon each such issuance shall
be adjusted to that price (rounded to the nearest cent) determined by
multiplying the Conversion Price by a fraction: (1) the numerator of which shall
be equal to the sum of
(A) the number of shares of Common Stock outstanding immediately prior to the
issuance of such Additional Shares of Common Stock plus (B) the number of shares
of Common Stock (rounded to the nearest whole share) which the aggregate
consideration for the total number of such Additional Shares of Common Stock so
issued would purchase at a price per share equal to the then Conversion Price;
and (2) the denominator of which shall be equal to the number of shares of
Common Stock outstanding immediately after the issuance of such Additional
Shares of Common Stock.  No adjustment of the number of shares of
Common Stock shall be made upon the issuance of any Additional Shares of Common
Stock which are issued pursuant to the exercise of any warrants or other
subscription or purchase rights or pursuant to the exercise of any conversion or
exchange rights in any Common Stock Equivalents if any such adjustment shall
previously have been made upon the issuance of such warrants or other rights or
upon the issuance of such Common Stock Equivalents (or upon the issuance of any
warrant or other rights therefore).

      

      (ix)          Consideration for
Stock.  In case any shares of Common Stock or any Common Stock
Equivalents shall be issued or sold:

      

      (1)           in
connection with any merger or consolidation in which the Company is the
surviving corporation (other than any consolidation or merger in which the
previously outstanding shares of Common Stock of the Company shall be changed to
or exchanged for the stock or other securities of another corporation), the
amount of consideration therefor shall be, deemed to be the fair market value,
as determined reasonably and in good faith by the board of directors of the
Company (the “Board”),
of such portion of the assets and business of the nonsurviving corporation as
the Board may determine to be attributable to such shares of Common Stock,
Convertible Securities, rights or warrants or options, as the case may be;
or

       

      (2)           in
the event of any consolidation or merger of the Company in which the Company is
not the surviving corporation or in which the previously outstanding shares of
Common Stock of the Company shall be changed into or exchanged for the stock or
other securities of another corporation, or in the event of any sale of all or
substantially all of the assets of the Company for stock or other securities of
any corporation, the Company shall be deemed to have issued a number of shares
of its Common Stock for stock or securities or other property of the other
corporation computed on the basis of the actual exchange ratio on which the
transaction was predicated, and for a consideration equal to the fair market
value on the date of such transaction of all such stock or securities or other
property of the other corporation.  If any such calculation results in
adjustment of the applicable Conversion Price, or the number of shares of Common
Stock issuable upon conversion of the Notes, the determination of the applicable
Conversion Price or the number of shares of Common Stock issuable upon
conversion of the Notes immediately prior to such merger, consolidation or sale,
shall be made after giving effect to such adjustment of the number of shares of
Common Stock issuable upon conversion of the Notes.  In the event
Common Stock is issued with other shares or securities or other assets of the
Company for consideration which covers both, the consideration computed as
provided in this Section
3.6(viii) shall be allocated among such securities and assets as
determined in good faith by the Board.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      (x)           Adjustment for the Failure
of a Qualified Financing.  If the Company does not close a
Qualified Financing within one hundred twenty (120) days from the Issuance Date,
the Conversion Price of this Note shall be automatically reduced to the lesser
of (i) the Conversion Price then in effect and (ii) $0.15.

      

      (b)           Record
Date.  In case the Company shall take record of the holders of
its Common Stock for the purpose of entitling them to subscribe for or purchase
Common Stock or Convertible Securities, then the date of the issue or sale of
the shares of Common Stock shall be deemed to be such record date.

       

      (c)           Certain Issues
Excepted.  Anything herein to the contrary notwithstanding, the
Company shall not be required to make any adjustment to the Conversion Price in
connection with (i) securities issued (other than for cash) in connection with a
merger, acquisition, or consolidation that do not exceed 25% of the outstanding
Common Stock of the Company as of the date of the Purchase Agreement (such
percentage subject to adjustment in a manner consistent with the adjustments to
the Conversion Price contemplated in Section
3 hereof) and such issuances are determined in the light of the whole
transaction to which they are a part to be in the best interests of the Company,
(ii) securities issued pursuant to the conversion or exercise of convertible or
exercisable securities issued or outstanding on or prior to the date of the
Purchase Agreement or issued pursuant to the Purchase Agreement (so long as the
conversion or exercise price in such securities are not amended to lower such
price and/or adversely affect the Holders), (iii) Common Stock issued or the
issuance or grants of options to purchase Common Stock pursuant to the Company’s
stock option plans and employee stock purchase plans that either (x) exist on
the date of the Purchase Agreement, or (y) do not exceed fifteen percent (15%)
of the outstanding Common Stock of the Company as of the date of the Purchase
Agreement (such percentage subject to adjustment in a manner consistent with the
adjustments to the Conversion Price contemplated in Section
3 hereof), (iv) securities issued in connection with bona fide strategic license
agreements or other partnering agreements so long as such issuances are not for
the purpose of raising capital which are approved by a majority of its
independent directors and such issuances are determined in the light of the
whole transaction to which they are a part to be in the best interests of the
Company, and (v) a Qualified Financing.

      

      (d)           No
Impairment.  The Company shall not, by amendment of its
Certificate 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 hereunder by the Company, but will at all
times in good faith, assist in the carrying out of all the provisions of this
Section
3.6 and in the taking of all such action as may be necessary or
appropriate in order to protect the conversion rights of the Holder against
impairment.  In the event a Holder shall elect to convert any Notes as
provided herein, the Company cannot refuse conversion based on any claim that
such Holder or any one associated or affiliated with such Holder has been
engaged in any violation of law, violation of an agreement to which such Holder
is a party or for any reason whatsoever, unless, an injunction from a court, or
notice, restraining and or adjoining conversion of all or of said Notes shall
have issued and the Company posts a surety bond for the benefit of such Holder
in an amount equal to one hundred percent (100%) of the amount of the Notes the
Holder has elected to convert, which bond shall remain in effect until the
completion of arbitration/litigation of the dispute and the proceeds of which
shall be payable to such Holder (as liquidated damages) in the event it obtains
judgment.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      (e)           Certificates as to
Adjustments.  Upon occurrence of each adjustment or
readjustment of the Conversion Price or number of shares of Common Stock
issuable upon conversion of this Note pursuant to this Section
3.6, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to the Holder a
certificate setting forth such adjustment and readjustment, showing in detail
the facts upon which such adjustment or readjustment is based.  The
Company shall, upon written request of the Holder, at any time, furnish or cause
to be furnished to the Holder a like certificate setting forth such adjustments
and readjustments, the applicable Conversion Price in effect at the time, and
the number of shares of Common Stock and the amount, if any, of other securities
or property which at the time would be received upon the conversion of this
Note.  Notwithstanding the foregoing, the Company shall not be
obligated to deliver a certificate unless such certificate would reflect an
increase or decrease of at least one percent (1%) of such adjusted
amount.

       

      (f)         
  Issue
Taxes.  The Makers shall pay any and all issue and other taxes,
excluding federal, state or local income taxes, that may be payable in respect
of any issue or delivery of securities on conversion of this Note pursuant
thereto; provided,
however, that the Makers shall not be obligated to pay any transfer taxes
resulting from any transfer requested by the Holder in connection with any such
conversion.

       

      (g)           Fractional
Shares.  No fractional shares of Common Stock shall be issued
upon conversion of this Note.  In lieu of any fractional shares to
which the Holder would otherwise be entitled, the Maker shall pay cash equal to
the product of the fraction that would evidence such fractional shares
multiplied by the average of the Closing Bid Prices of the Common Stock for the
five (5) consecutive Trading Days immediately preceding the Conversion
Date.   The term “Closing
Bid Price” shall mean, on any particular date (i) the last closing bid
price per share of the Common Stock on such date on the OTC Bulletin Board or
another registered national stock exchange on which the Common Stock is then
listed, or if there is no such price on such date, then the last closing bid
price on such exchange or quotation system on the date nearest preceding such
date, or (ii) if the Common Stock is not listed then on the OTC Bulletin Board
or any registered national stock exchange, the last trading price for a share of
Common Stock in the over-the-counter market, as reported by the OTC Bulletin
Board or in the National Quotation Bureau Incorporated or similar organization
or agency succeeding to its functions of reporting prices) at the close of
business on such date, or (iii) if the Common Stock is not then reported by the
OTC Bulletin Board or the National Quotation Bureau Incorporated (or similar
organization or agency succeeding to its functions of reporting prices), then
the average of the “Pink Sheet” quotes for the relevant conversion period, as
determined in good faith by the Holder and reasonably acceptable to the Company,
or (iv) if the Common Stock is not then publicly traded the fair market value of
a share of Common Stock as determined by the Holder and reasonably acceptable to
the Company.

       

      (h)           Reservation of Common
Stock.  The Company shall at all times when this Note shall be
outstanding, reserve and keep available out of its authorized but unissued
Common Stock, one hundred twenty percent (120%) of such number of shares of
Common Stock as shall from time to time be sufficient to effect a full Optional
Conversion of this Note.  The Company shall, from time to time in
accordance with Delaware law, increase the authorized number of shares of Common
Stock if at any time the unissued number of authorized shares shall not be
sufficient to satisfy the Company’s obligations under this Section
3.6(h).

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      (i)
           Regulatory
Compliance.  If any shares of Common Stock to be reserved for
the purpose of an Optional Conversion of this Note require registration or
listing with or approval of any governmental authority, stock exchange or other
regulatory body under any federal or state law or regulation or otherwise before
such shares may be validly issued or delivered upon conversion, the Company
shall, at its sole cost and expense, in good faith and as expeditiously as
possible, endeavor to secure such registration, listing or approval, as the case
may be.

      

      Section
3.7       Prepayment.

       

      (a)           Prepayment Upon an Event of
Default.  Notwithstanding anything to the contrary contained
herein, upon the occurrence of an Event of Default described in Sections
2.1(b)-(i), (l),
(m)
and (n)
hereof, the Holder shall have the right, at the Holder’s option, to require the
Makers to prepay in cash all or a portion of this Note at a price equal to one
hundred percent (100%) of the aggregate principal amount of this Note plus all
accrued and unpaid Interest applicable at the time of such
request.  Nothing in this Section
3.7(a) shall limit the Holder’s rights under Section
2.2 hereof.

       

      (b)           Prepayment Option Upon Major
Transaction.  In addition to all other rights of the Holder
contained herein, simultaneous with the occurrence of a Major Transaction (as
defined below), the Holder shall have the right, at the Holder’s option, to
require the Makers to prepay in cash all or a portion of this Note at a price
equal to one hundred twenty percent (120%) of the aggregate principal amount of
this Note plus all accrued and unpaid Interest (the “Major
Transaction Prepayment Price”).

       

      (c)           Prepayment Option Upon
Triggering Event.  In addition to all other rights of the
Holder contained herein, after a Triggering Event (as defined below), the Holder
shall have the right, at the Holder’s option, to require the Makers to prepay
all or a portion of this Note in cash at a price equal to one hundred twenty
percent (120%) of the aggregate principal amount of this Note plus all accrued
and unpaid Interest (the “Triggering
Event Prepayment Price,” and, collectively with the Major Transaction
Prepayment Price, the “Prepayment
Price”).

       

      (d)           Optional Prepayment by
Company.  In addition to all other rights of the Company
contained herein, at any time after six (6) months from the Issuance Date, the
Company shall have the right, solely at the Company’s option, to prepay in cash
(the “Optional
Prepayment”) at a price equal to one hundred ten percent (110%) of the
aggregate principal amount of this Note plus all accrued and unpaid Interest, if
any, thereon to the date of such Optional Prepayment (the “Optional
Company Prepayment Price”) by providing written notice of at least thirty
(30) calendar days prior to the consummation of the Optional Prepayment via
facsimile and overnight courier (“Notice of
Optional Prepayment”) to the Holder of this Note and the Other Holders.
The Company may pay, upon an Optional Prepayment, all accrued and unpaid
Interest, if any, by issuing the Holders additional Notes with a principal
amount equal to the Interest then due and payable (a “PIK
Note”). The Company shall deliver the applicable Optional Company
Prepayment Price to the Holder, within five (5) business days after the date
specified in the Notice of Optional Prepayment for the Optional
Prepayment.  If the Company shall fail to prepay the Notes (other than
pursuant to a dispute as to the arithmetic calculation of the Optional Company
Prepayment Price), in addition to any remedy such Holder of the Notes may have
under this Note and the Purchase Agreement, the Optional Company Prepayment
Price payable in respect of such Notes not prepaid shall bear interest at the
Default Rate until paid in full.  Notwithstanding the foregoing in
this Section
3.7(d), the Holder may convert any portion of this Note pursuant to Section
3.1(a) on or prior to the date immediate preceding the date of such
Optional Prepayment.

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

     

    (e)           “Major
Transaction.”  A “Major
Transaction” shall be deemed to have occurred at such time as any of the
following events have occurred:

     

    (i)           the
consolidation, merger or other business combination of the Company with or into
another Person (as defined in Section
4.13 hereof) (other than (A) pursuant to a migratory merger effected
solely for the purpose of changing the jurisdiction of incorporation of the
Company or (B) a consolidation, merger or other business combination in which
holders of the Company’s voting power immediately prior to the transaction
continue after the transaction to hold, directly or indirectly, the voting power
of the surviving entity or entities necessary to elect a majority of the members
of the board of directors (or their equivalent if other than a corporation) of
such entity or entities); or

     

    (ii)          the
sale or transfer of more than fifty percent (50%) of the Company’s assets (based
on the fair market value as determined in good faith by the Board) other than
inventory in the ordinary course of business in one or a related series of
transactions; or

     

    (iii)        closing
of a purchase, tender or exchange offer made to the holders of more than fifty
percent (50%) of the outstanding shares of Common Stock in which more than fifty
percent (50%) of the outstanding shares of Common Stock were tendered and
accepted; or

     

    (iv)        a
change in more than fifty percent (50%) of the current members of the Company’s
Board of Directors as of the Issuance Date, except for such changes approved by
the Holder of this Note.

     

    (f)          “Triggering
Event.”  A “Triggering
Event” shall be deemed to have occurred at such time as any of the
following events:

     

    (i)           Intentionally
Omitted;

     

    (ii)          the
suspension from listing, without subsequent listing on any one of, or the
failure of the Common Stock to be listed on at least one of the OTC Bulletin
Board, the American Stock Exchange, the NASDAQ Global Market, the NASDAQ Capital
Market or The New York Stock Exchange, Inc., for a period of ten (10)
consecutive Trading Days;

     

    (iii)         the
Company’s notice to the Holder or any Other Holders, including by way of public
announcement, at any time, of its inability to comply (including for any of the
reasons described in Section
3.8(a) hereof) or its intention not to comply with proper requests for
conversion of any Notes into shares of Common Stock; or

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    (iv)         the
Company’s failure to comply with an Optional Conversion Notice tendered in
accordance with the provisions of this Note within five (5) Trading Days after
the receipt by the Company of the Optional Conversion Notice; or

     

    (v)  
       the Company deregisters its shares of
Common Stock and as a result such shares of Common Stock are no longer publicly
traded; or

     

    (vi)        the
Company consummates a “going private” transaction and as a result the Common
Stock is no longer registered under Sections 12(b) or 12(g) of the Exchange Act;
or

     

    (vii)       either
of the Makers breach any representation, warranty, covenant or other term or
condition of the Purchase Agreement, this Note or any other agreement, document,
certificate or other instrument delivered in connection with the transactions
contemplated thereby or hereby, except to the extent that such breach would not
have a Material Adverse Effect (as defined in the Purchase Agreement) and
except, in the case of a breach of a covenant which is curable, only if such
breach continues for a period of a least twenty (20) business days.

     

    (g)           Intentionally
Omitted.

    

    (h)           Mechanics of Prepayment at
Option of Holder Upon Major Transaction.  No sooner than
fifteen (15) days nor later than ten (10) days prior to the consummation of a
Major Transaction, but in  no event prior to the public announcement
of such Major Transaction, the Makers shall deliver written notice thereof via
facsimile and overnight courier (“Notice of
Major Transaction”) to the Holder of this Note and the Other
Holders.  At any time after receipt of a Notice of Major Transaction
(or, in the event a Notice of Major Transaction is not delivered at least ten
(10) days prior to a Major Transaction, at any time during the ten (10) day
period prior to a Major Transaction), the Holder of this Note and the Other
Holders of the Other Notes then outstanding may require the Makers to prepay,
effective immediately prior to the consummation of such Major Transaction, all
or any portion of this Note then outstanding by delivering written notice
thereof via facsimile and overnight courier (“Notice of
Prepayment at Option of Holder Upon Major Transaction”) to the Makers,
which Notice of Prepayment at Option of Holder Upon Major Transaction shall
indicate (i) the principal amount of this Note that the Holder is electing to
have prepaid and (ii) the applicable Major Transaction Prepayment Price, as
calculated pursuant to Section
3.7(b) above.

     

    (i)           Mechanics of Prepayment at
Option of Holder Upon Triggering Event.  Within three (3)
business days after the occurrence of a Triggering Event, the Makers shall
deliver written notice thereof via facsimile and overnight courier (“Notice of
Triggering Event”) to the Holder and the Other Holders.  At any
time after the earlier of the Holder’s receipt of a Notice of Triggering Event
and the Holder becoming aware of a Triggering Event, the Holder  of
this Note and the Other Holders of the Other Notes then outstanding may require
the Makers to prepay all or any portion of this Note then outstanding by
delivering written notice thereof via facsimile and overnight courier (“Notice of
Prepayment at Option of Holder Upon Triggering Event”) to the Makers,
which Notice of Prepayment at Option of Holder Upon Triggering Event shall
indicate (i) the amount of the Note that the Holder is electing to have prepaid
and (ii) the applicable Triggering Event Prepayment Price, as calculated
pursuant to Section
3.7(c) above.  The Holder shall only be permitted to require
the Makers to prepay this Note pursuant to Section
3.7 hereof for the greater of a period of ten (10) days after receipt by
the Holder of a Notice of Triggering Event or for so long as such Triggering
Event is continuing.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    (j)           Payment of Prepayment
Price.  Upon the Makers’ receipt of a Notice(s) of Prepayment
at Option of Holder Upon Triggering Event or a Notice(s) of Prepayment at Option
of Holder Upon Major Transaction from the Holder or the Other Holders, the
Makers shall notify the Holder or such Other Holders, as the case may be, by
facsimile of the Makers’ receipt of such Notice(s) of Prepayment at Option of
Holder Upon Triggering Event or Notice(s) of Prepayment at Option of Holder Upon
Major Transaction within two (2) business days of the Makers’ receipt of the
same and the Holder and each Other Holder which has sent such a notice shall
promptly thereafter submit to the Makers this Note (or certificates representing
a portion of this Note if the Holder elects not to have all of the outstanding
principal and accrued Interest hereunder prepaid)  or the Other Notes
(or certificates representing a portion of the Other Notes if the Other Holders
elect not to have all of the outstanding principal and accrued Interest
thereunder prepaid) which the Holder or Other Holders, as the case may be, have
elected to have prepaid.  The Makers shall deliver the applicable
Triggering Event Prepayment Price to the Holder, within five (5) business days
after the Makers’ receipt of this Note or the certificates related thereto, as
the case may be, and, in the case of a prepayment pursuant to Section
3.7(h), the Makers shall deliver the applicable Major Transaction
Prepayment Price immediately prior to the consummation of the Major Transaction;
provided that the
Holder’s original Note or the Other Holders’ original Other Notes, or the
certificates related thereto, shall have been so delivered to the Makers; provided further that if the Makers
are unable to prepay all of the Notes to be prepaid, the Makers shall prepay an
amount to the Holder and each Other Holder of this Note and the Other Notes
being prepaid equal to such holder’s pro-rata amount of all Notes
being prepaid.  If the Makers shall fail to prepay all of the Notes
submitted for prepayment (other than pursuant to a dispute as to the arithmetic
calculation of the Prepayment Price), in addition to any remedy such holder of
the Notes may have under this Note and the Purchase Agreement, the applicable
Prepayment Price payable in respect of such Notes not prepaid shall bear
interest at the Default Rate until paid in full.  Until the Makers pay
such unpaid applicable Prepayment Price in full to a holder of the Notes
submitted for prepayment, such holder shall have the option (the “Void
Optional Prepayment Option”) to, in lieu of prepayment, require the
Makers to promptly return to such holder(s) all of the Notes that were submitted
for prepayment by such holder(s) under this Section
3.7 and for which the applicable Prepayment Price has not been paid, by
sending written notice thereof to the Makers via facsimile (the “Void
Optional Prepayment Notice”).  Upon the Makers’ receipt of such
Void Optional Prepayment Notice(s) and prior to payment of the full applicable
Prepayment Price to such holder, (i) the Notice(s) of Prepayment at Option of
Holder Upon Triggering Event or the Notice(s) of Prepayment at Option of Holder
Upon Major Transaction, as the case may be, shall be null and void ab initio with respect to
those Notes submitted for prepayment and for which the applicable Prepayment
Price has not been paid, (ii) the Makers shall immediately return any such Notes
submitted to the Makers by each holder for prepayment under this Section
3.7(j) and for which the applicable Prepayment Price has not been paid
and (iii) the Conversion Price of such returned Notes shall be adjusted to the
lesser of (A) the Conversion Price as in effect on the date on which the
applicable Void Optional Prepayment Notice(s) is delivered to the Makers and (B)
the lowest Closing Bid Price during the period beginning on the date on which
the Notice(s) of Prepayment of Option of Holder Upon Major Transaction or the
Notice(s) of Prepayment at Option of Holder Upon Triggering Event, as the case
may be, is delivered to the Makers and ending on the date on which the Void
Optional Prepayment Notice(s) is delivered to the Makers; provided that no adjustment
shall be made if such adjustment would result in an increase of the Conversion
Price then in effect.  A holder’s delivery of a Void Optional
Prepayment Notice and exercise of its rights following such notice shall not
effect the Makers’ obligations to make any payments which have accrued prior to
the date of such notice.  Payments provided for in this Section
3.7 shall have priority to payments to other stockholders in connection
with a Major Transaction.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    Section
3.8       Inability to Fully
Convert.

     

    (a)           Holder’s Option if Maker
Cannot Fully Convert.  If, upon the Company’s receipt of an
Optional Conversion Notice, the Company cannot issue registered shares of Common
Stock, for any reason, including, without limitation, because the Company (x)
does not have a sufficient number of shares of Common Stock authorized and
available, (y) is otherwise prohibited by applicable law or by the rules or
regulations of any stock exchange, interdealer quotation system or other
self-regulatory organization with jurisdiction over the Company or any of its
securities from issuing all of the Common Stock which is to be issued to the
Holder pursuant to a Conversion Notice or (z) fails to have a sufficient number
of registered shares of Common Stock, then the Company shall issue as many
shares of registered Common Stock, as it is able to issue in accordance with the
Holder’s Optional Conversion Notice and, with respect to the unconverted portion
of this Note, the Holder, solely at Holder’s option, can elect to:

     

    (i)           require
the Makers to prepay that portion of this Note for which the Company is unable
to issue Common Stock in accordance with the Holder’s Optional Conversion Notice
(the “Mandatory
Prepayment”) at a price per share equal to the Triggering Event
Prepayment Price as of such Conversion Date (the “Mandatory
Prepayment Price”);

     

    (ii)          require
the Company to issue restricted shares of Common Stock, if it is permissible for
the Company to do so, in accordance with the Holder’s Optional Conversion
Notice;

     

    (iii)         void
its Optional Conversion Notice and retain or have returned, as the case may be,
this Note (or the portion thereof) that was to be converted pursuant to the
Optional Conversion Notice (provided that the Holder’s voiding its Optional
Conversion Notice shall not effect the Makers’ obligations to make any payments
which have accrued prior to the date of such notice); or

     

    (iv)        exercise
its Buy-In rights pursuant to and in accordance with the terms and provisions of
Section
3.3(c) of this Note.

     

     (b)         Mechanics of Fulfilling
Holder’s Election.  Upon receipt of a facsimile copy of an
Optional Conversion Notice from the Holder which cannot be fully satisfied as
described in Section
3.8(a) above, the Company shall within two (2) Trading Days send via
facsimile to the Holder a notice of the Company’s inability to fully satisfy the
Optional Conversion Notice (the “Inability
to Fully Convert Notice”).  Such Inability to Fully Convert
Notice shall indicate (i) the reason why the Company is unable to fully satisfy
the Holder’s Optional Conversion Notice, (ii) the amount of this Note which
cannot be converted and (iii) the applicable Mandatory Prepayment
Price.  The Holder shall notify the Makers of its election pursuant to
Section
3.8(a) above by delivering written notice via facsimile to the Makers
(“Notice in
Response to Inability to Convert”).

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    (c)           Payment of Prepayment
Price.  If the Holder shall elect to have its Note prepaid
pursuant to Section
3.8(a)(i) above, the Makers shall pay the Mandatory Prepayment Price to
the Holder within thirty (30) days of the Makers’ receipt of the Holder’s Notice
in Response to Inability to Convert, provided that prior to the
Makers’ receipt of the Holder’s Notice in Response to Inability to Convert the
Company has not delivered a notice to the Holder stating, to the satisfaction of
the Holder, that the event or condition resulting in the Mandatory Prepayment
has been cured and all Conversion Shares issuable to the Holder can and will be
delivered to the Holder in accordance with the terms of this Note.  If
the Makers shall fail to pay the applicable Mandatory Prepayment Price to the
Holder on the date that is three (3) business days following the Makers’ receipt
of the Holder’s Notice in Response to Inability to Convert (other than pursuant
to a dispute as to the determination of the arithmetic calculation of the
Prepayment Price), in addition to any remedy the Holder may have under this Note
and the Purchase Agreement, such unpaid amount shall bear interest at the rate
of two percent (2%) per month (prorated for partial months) until paid in
full.  Until the full Mandatory Prepayment Price is paid in full to
the Holder, the Holder may (i) void the Mandatory Prepayment with respect to
that portion of the Note for which the full Mandatory Prepayment Price has not
been paid, (ii) receive back such Note, and (iii) require that the Conversion
Price of such returned Note be adjusted to the lesser of (A) the Conversion
Price as in effect on the date on which the Holder voided the Mandatory
Prepayment and (B) the lowest Closing Bid Price during the period beginning on
the Optional Conversion Date and ending on the date the Holder voided the
Mandatory Prepayment.

     

    (d)           Pro-rata Conversion and
Prepayment.  In the event the Company receives an Optional
Conversion Notice from the Holder and the Other Holders on the same day and the
Company can convert and prepay some, but not all, of this Note pursuant to this
Section
3.8, the Company shall convert and prepay from the Holder and each Other
Holder electing to have its Other Notes converted and prepaid at such time an
amount equal to the Holder or such Other Holder’s pro-rata amount of all the
Notes and the Other Notes being converted and prepaid at such time.

     

    Section
3.9       No Rights as
Stockholder.  Nothing contained in this Note shall be construed
as conferring upon the Holder, prior to the conversion of this Note, the right
to vote or to receive dividends or to consent or to receive notice as a
stockholder in respect of any meeting of stockholders for the election of
directors of the Company or of any other matter, or any other rights as a
stockholder of the Company.

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    ARTICLE
IV

     

    MISCELLANEOUS

     

    Section
4.1       Notices.  Any
notice, demand, request, waiver or other communication required or permitted to
be given hereunder shall be in writing and shall be effective (a) upon hand
delivery or facsimile at the address or number designated in the Purchase
Agreement (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal business hours
where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such
address, or upon actual receipt of such mailing, whichever shall first
occur.  The Makers will give written notice to the Holder at least ten
(10) days prior to the date on which the Company takes a record (x) with respect
to any dividend or distribution upon the Common Stock, (y) with respect to any
pro rata subscription offer to holders of Common Stock or (z) for determining
rights to vote with respect to any Organic Change, dissolution, liquidation or
winding-up but in no event shall such notice be provided to the Holder prior to
such information being made known to the public.  The Makers will also
give written notice to the Holder at least ten (10) days prior to the date on
which any Organic Change, dissolution, liquidation or winding-up will take place
but in no event shall such notice be provided to the Holder prior to such
information being made known to the public. The Makers shall promptly notify the
Holder of any notices sent or received, or any actions taken with respect to the
Other Notes.

     

    Section
4.2       Governing Law; Consent to
Jurisdiction. The parties acknowledge and agree that any claim,
controversy, dispute or action relating in any way to this agreement or the
subject matter of this agreement shall be governed solely by the laws of the
State of New York, without regard to any conflict of laws
doctrines.  The parties irrevocably consent to being served with legal
process issued from the state and federal courts located in New York and
irrevocably consent to the exclusive personal jurisdiction of the federal and
state courts situated in the State of New York.  The parties
irrevocably waive any objections to the personal jurisdiction of these
courts.  Said courts shall have sole and exclusive jurisdiction over
any and all claims, controversies, disputes and actions which in any way relate
to this agreement or the subject matter of this agreement.  The
parties also irrevocably waive any objections that these courts constitute an
oppressive, unfair, or inconvenient forum and agree not to seek to change venue
on these grounds or any other grounds. Nothing in this Section
4.2 shall affect or limit any right to serve process in any other manner
permitted by law.

     

    Section
4.3       Headings.  Article
and section headings in this Note are included herein for purposes of
convenience of reference only and shall not constitute a part of this Note for
any other purpose.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    Section
4.4       Remedies, Characterizations,
Other Obligations, Breaches and Injunctive Relief.  The
remedies provided in this Note shall be cumulative and in addition to all other
remedies available under this Note, at law or in equity (including, without
limitation, a decree of specific performance and/or other injunctive relief), no
remedy contained herein shall be deemed a waiver of compliance with the
provisions giving rise to such remedy and nothing herein shall limit a Holder’s
right to pursue actual damages for any failure by the Makers to comply with the
terms of this Note.  Amounts set forth or provided for herein with
respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the Holder hereof and shall not, except as
expressly provided herein, be subject to any other obligation of the Makers (or
the performance thereof). Each of the Makers acknowledges that a breach by it of
its obligations hereunder will cause irreparable and material harm to the Holder
and that the remedy at law for any such breach may be inadequate. Therefore each
Maker agrees that, in the event of any such breach or threatened breach, the
Holder shall be entitled, in addition to all other available rights and
remedies, at law or in equity, to seek and obtain such equitable relief,
including but not limited to an injunction restraining any such breach or
threatened breach, without the necessity of showing economic loss and without
any bond or other security being required.

     

    Section
4.5       Enforcement
Expenses.  The Makers agree to pay all costs and expenses of
the Holder incurred as a result of enforcement of this Note, including, without
limitation, reasonable attorneys’ fees and expenses.

     

    Section
4.6       Binding
Effect.  The obligations of the Makers and the Holder set forth
herein shall be binding upon the successors and assigns of each such party,
whether or not such successors or assigns are permitted by the terms
hereof.

     

    Section
4.7       Amendments.  This
Note may not be modified or amended in any manner except in writing executed by
the Makers and the Holder.

     

    Section
4.8       Compliance with Securities
Laws.  The Holder of this Note acknowledges that this Note is
being acquired solely for the Holder’s own account and not as a nominee for any
other party, and for investment, and that the Holder shall not offer, sell or
otherwise dispose of this Note.  This Note and any Note issued in
substitution or replacement therefor shall be stamped or imprinted with a legend
in substantially the following form:

     

    “THIS
NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE
STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF A WRITTEN
OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO THE
COMPANY THAT THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE
SOLD, TRANSFERRED,  OR OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM
REGISTRATION UNDER THE ACT AND SUCH STATE SECURITIES LAWS.”

    

    Section
4.9       Accredited Investor
Status.  In no event may the Holder convert this Note in whole
or in part unless the Holder is an “accredited investor” as defined in
Regulation D under the Act.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    Section
4.10       Parties in
Interest.  This Note shall be binding upon, inure to the
benefit of and be enforceable by the Makers, the Holder and their respective
successors and permitted assigns.

     

    Section
4.11       Failure or Indulgence Not
Waiver.  No failure or delay on the part of the Holder in the
exercise of any power, right or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other right,
power or privilege, nor shall any waiver by the Holder of any such right or
rights on any one occasion be deemed a waiver of the same right or rights on any
future occasion.

     

    Section
4.12       Makers’
Waivers.

     

    (a)           Except
as otherwise specifically provided herein, the Makers and all others that may
become liable for all or any part of the obligations evidenced by this Note,
hereby waive presentment, demand, notice of nonpayment, protest and all other
demands’ and notices in connection with the delivery, acceptance, performance
and enforcement of this Note, and do hereby consent to any number of renewals of
extensions of the time or payment hereof and agree that any such renewals or
extensions may be made without notice to any such persons and without affecting
their liability herein and do further consent to the release of any person
liable hereon, all without affecting the liability of the other persons, firms
or Makers liable for the payment of this Note, AND DO HEREBY WAIVE TRIAL BY
JURY.

     

    (b)           THE
MAKERS ACKNOWLEDGE THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A
COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED BY APPLICABLE LAW, HEREBY
WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY
WHICH THE HOLDER OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

     

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

    

    “Convertible
Securities” means any convertible securities, warrants, options or other
rights to subscribe for or to purchase or exchange for, shares of Common Stock
or Common Stock Equivalents.

    

    “Options”
shall mean any rights, warrants or options to subscribe for or purchase Common
Stock or Convertible Securities of the Company.

    

    “Person”
means an individual or a corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or political subdivision thereof) or
other entity of any kind.

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    “Trading
Day” means (a) a day on which the Common Stock is traded on the OTC
Bulletin Board, or (b) if the Common Stock is not traded on the OTC Bulletin
Board, a day on which the Common Stock is quoted in the over-the-counter market
as reported by the National Quotation Bureau Incorporated (or any similar
organization or agency succeeding its functions of reporting prices); provided, however, that in
the event that the Common Stock is not listed or quoted as set forth in (a) or
(b) hereof, then Trading Day shall mean any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
State of New York are authorized or required by law or other government action
to close.

    

    [remainder of page intentionally left
blank]

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Makers have caused this Note to be duly executed as of the
Issuance Date set out above.

    

    
      
        
          
            
              
                
                  
                    
                      	
                              JUMA
      TECHNOLOGY CORP.

                            	 
	 
      	 
      	 
	
                              By: 

                            	
                                

                            	 
	 
      	
                              Name:

                            	 
	 
      	
                              Title:

                            	 
	 
      	 
      	 
	
                              NECTAR
      SERVICES CORP.

                            	 
	 
      	 
      	 
	
                              By:

                            	
                                

                            	 
	 
      	
                              Name:

                            	 
	 
      	
                              Title:

                            	 

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    WIRE
INSTRUCTIONS

     

    
      
        	
                Payee:

              	
                  

              

      

    

    

    
      
        	
                Bank:

              	
                  

              

      

    

    

    
      
        	
                Address:

              	
                  

              

      

    

    

    
      
        	 
      	
                  

              

      

    

    

    
      
        	
                Bank No.: 

              	
                  

              

      

    

    

    
      
        	
                Account
      No.: 

              	
                  

              

      

    

    

    
      
        	
                Account
      Name: 

              	
                  

              

      

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    FORM
OF

     

    NOTICE OF
OPTIONAL CONVERSION INTO SHARES OF COMMON STOCK

     

    (To be
Executed by the Registered Holder in

    order to
Convert the Note into Shares of Common Stock)

    

    The
undersigned hereby irrevocably elects to convert $ ________________ of the
principal amount of the above Note No. ___ into shares of Common Stock of JUMA
TECHNOLOGY CORP. (the “Company”)
according to the conditions hereof, as of the date written below.

     

    
      
        	
                Date
      of Conversion 

              	
                  

              

      

       

      
        
          	
                  Applicable
      Conversion Price 

                	
                    

                

        

      

    

    

    Number of
shares of Common Stock beneficially owned or deemed beneficially owned by the
Holder on the Date of Conversion: _________________________

     

    
      
        
          	
                  Signature 

                	 
      

        

      

    

    

    [Name]

     

    
      
        
          
            	
                    Address: 

                  	
                      

                  
	 	 
	 
      	
                      

                  

          

        

      

    

    
      
         

      

      
        27Exhibit 4.3

     

    EXECUTION
COPY

    

    THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF A
WRITTEN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY
TO THE COMPANY THAT THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON
EXERCISE HEREOF MAY BE SOLD, TRANSFERRED,  OR OTHERWISE DISPOSED OF,
UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH STATE
SECURITIES LAWS.

    

    SERIES A
WARRANT TO PURCHASE

    

    SHARES OF
COMMON STOCK

    

    OF

    

    JUMA
TECHNOLOGY CORP.

    

    Expires
May 21, 2014

    

    
      	
              No.:
      W-A-01-10

            	
                             Number
      of Shares: 1,666,667

            
	
              Date
      of Issuance: January 28, 2010

            

    

    

    FOR VALUE
RECEIVED, the undersigned, JUMA TECHNOLOGY CORP., a Delaware corporation
(together with its successors and assigns, the “Issuer”),
hereby certifies that Vision
Opportunity Master Fund, Ltd. or its registered assigns is entitled to
subscribe for and purchase, during the Term (as hereinafter defined), up to one
million six hundred sixty-six thousand six hundred sixty-seven (1,666,667)
shares (subject to adjustment as hereinafter provided) of the duly authorized,
validly issued, fully paid and non-assessable Common Stock of the Issuer, at an
exercise price per share equal to the Warrant Price then in effect, subject,
however, to the provisions and upon the terms and conditions hereinafter set
forth.  Capitalized terms used in this Warrant and not otherwise
defined herein shall have the respective meanings specified in Section
8 hereof.

    

    1.           Term.  The
term of this Warrant shall commence on January 28, 2010 and shall expire at 6:00
p.m., Eastern Time, on May 21, 2014 (such period being the “Term”).

    

    
      2.           Method of
Exercise; Payment; Issuance of New Warrant; Transfer and
Exchange.

    

    

    (a)          Time of
Exercise.  The purchase rights represented by this Warrant may
be exercised in whole or in part during the Term.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    (b)         Method of
Exercise.  The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder's election (i) by certified or official bank
check or by wire transfer to an account designated by the Issuer, (ii) by
“cashless exercise” in accordance with the provisions of subsection
(c) of this Section
2, or (iii) by a combination of the foregoing methods of payment selected
by the Holder of this Warrant.

    

    (c)         Cashless
Exercise.  Notwithstanding any provisions herein to the
contrary and commencing eighteen (18) months following the Original Issue Date
if (i) the Registration Statement (as defined in the Purchase Agreement)
covering the Warrant Stock has not been declared effective under the Securities
Act and/or (ii) an effective Registration Statement has
been  suspended by the Company for any or no reason, the Holder may
exercise this Warrant by a cashless exercise and shall receive the number of
shares of Common Stock equal to an amount (as determined below) by surrender of
this Warrant at the principal office of the Issuer together with the properly
endorsed Notice of Exercise in which event the Issuer shall issue to the Holder
a number of shares of Common Stock computed using the following
formula:

    

    X = Y - (A)(Y)

                     B

    

    
      	
              Where

            	
              X
      =

            	
              the
      number of shares of Common Stock to be issued to the
    Holder.

            

    

    

    
      	
               
      

            	
              Y
      =

            	
              the
      number of shares of Common Stock purchasable upon exercise of all of the
      Warrant or, if only a portion of the Warrant is being exercised, the
      portion of the Warrant being
exercised.

            

    

    

    
      	
               
      

            	
              A
      =

            	
              the
      Warrant Price.

            

    

    

    B
=         the Per Share Market
Value of one share of Common Stock.

    

    (d)         Issuance of Stock
Certificates.  In the event of any exercise of this Warrant in
accordance with and subject to the terms and conditions hereof, certificates for
the shares of Warrant Stock so purchased shall be dated the date of such
exercise and delivered to the Holder hereof within a reasonable time, not
exceeding three (3) Trading Days after such exercise (the “Delivery
Date”) or, at the request of the Holder (provided that a registration
statement under the Securities Act providing for the resale of the Warrant Stock
is then in effect), issued and delivered to the Depository Trust Company (“DTC”)
account on the Holder’s behalf via the Deposit Withdrawal Agent Commission
System (“DWAC”)
within a reasonable time, not exceeding three (3) Trading Days after such
exercise, and the Holder hereof shall be deemed for all purposes to be the
holder of the shares of Warrant Stock so purchased as of the date of such
exercise.  Notwithstanding the foregoing to the contrary, the Issuer
or its transfer agent shall only be obligated to issue and deliver the shares to
the DTC on a holder’s behalf via DWAC if the Issuer and its transfer agent are
participating in DTC through the DWAC system.  The Holder shall
deliver this original Warrant, or an indemnification undertaking with respect to
such Warrant in the case of its loss, theft or destruction, at such time that
this Warrant is fully exercised.  With respect to partial exercises of
this Warrant, the Issuer shall keep written records for the Holder of the number
of shares of Warrant Stock exercised as of each date of
exercise.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    (e)           Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Exercise.  In
addition to any other rights available to the Holder, if the Issuer fails to
cause its transfer agent to transmit to the Holder a certificate or certificates
representing the Warrant Stock pursuant to an exercise on or before the Delivery
Date, and if after such date the Holder is required by its broker to purchase
(in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the Holder of the Warrant Stock which the Holder
anticipated receiving upon such exercise (a “Buy-In”),
then the Issuer shall (1) pay in cash to the Holder the amount by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (A) the number of shares of Warrant Stock that the Issuer was
required to deliver to the Holder in connection with the exercise at issue times (B) the price at which
the sell order giving rise to such purchase obligation was executed, and (2) at
the option of the Holder, either reinstate the portion of the Warrant and
equivalent number of shares of Warrant Stock for which such exercise was not
honored or deliver to the Holder the number of shares of Common Stock that would
have been issued had the Issuer timely complied with its exercise and delivery
obligations hereunder.  For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to
an attempted exercise of the Warrant for shares of Common Stock with an
aggregate sale price giving rise to such purchase obligation of $10,000, under
clause (1) of the immediately preceding sentence the Issuer shall be required to
pay the Holder $1,000. The Holder shall provide the Issuer written notice
indicating the amounts payable to the Holder in respect of the Buy-In, together
with applicable confirmations and other evidence reasonably requested by the
Issuer.  Nothing herein shall limit a Holder’s right to pursue any
other remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Issuer’s failure to timely deliver certificates representing
shares of Common Stock upon exercise of this Warrant as required pursuant to the
terms hereof.

     

    (f)           Transferability/Exchangeability
of Warrant.  Subject to Section
2(h) hereof, this Warrant may be transferred by a Holder, in whole or in
part, without the consent of the Issuer.  If transferred pursuant to
this paragraph, this Warrant may be transferred on the books of the Issuer by
the Holder hereof in person or by duly authorized attorney, upon surrender of
this Warrant at the principal office of the Issuer, properly endorsed (by the
Holder executing an assignment in the form attached hereto) and upon payment of
any necessary transfer tax or other governmental charge imposed upon such
transfer.  This Warrant is exchangeable at the principal office of the
Issuer for Warrants to purchase the same aggregate number of shares of Warrant
Stock, each new Warrant to represent the right to purchase such number of shares
of Warrant Stock as the Holder hereof shall designate at the time of such
exchange.  All Warrants issued on transfers or exchanges shall be
dated the Original Issue Date and shall be identical with this Warrant except as
to the number of shares of Warrant Stock issuable pursuant thereto.

    

    (g)           Continuing Rights of
Holder.  The Issuer will, at the time of or at any time after
each exercise of this Warrant, upon the request of the Holder hereof,
acknowledge in writing the extent, if any, of its continuing obligation to
afford to such Holder all rights to which such Holder shall continue to be
entitled after such exercise in accordance with the terms of this Warrant; provided that if any such
Holder shall fail to make, or the Issuer shall fail to honor, any such request,
the failure shall not affect the continuing obligation of the Issuer to afford
such rights to such Holder.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (h)          Compliance with Securities
Laws.

    

    (i)           The
Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and
the shares of Warrant Stock to be issued upon exercise hereof are being acquired
solely for the Holder's own account and not as a nominee for any other party,
and for investment, and that the Holder will not offer, sell or otherwise
dispose of this Warrant or any shares of Warrant Stock to be issued upon
exercise hereof except pursuant to an effective registration statement, or an
exemption from registration, under the Securities Act and any applicable state
securities laws.

    

    (ii)           Except
as provided in paragraph (iii) below, this Warrant and all certificates
representing shares of Warrant Stock issued upon exercise hereof shall be
stamped or imprinted with a legend in substantially the following
form:

    

    THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF A
WRITTEN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY
TO THE COMPANY THAT THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON
EXERCISE HEREOF MAY BE SOLD, TRANSFERRED,  OR OTHERWISE DISPOSED OF,
UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH STATE
SECURITIES LAWS.

    

    (iii)           The
Issuer agrees to reissue this Warrant or certificates representing any of the
Warrant Stock, without the legend set forth above if at such time, prior to
making any transfer of any such securities, the Holder shall give written notice
to the Issuer describing the manner and terms of such transfer.  Such
proposed transfer will not be effected until: (a) either (i) the Issuer has
received an opinion of counsel reasonably satisfactory to the Issuer, to the
effect that the registration of such securities under the Securities Act is not
required in connection with such proposed transfer, (ii) a registration
statement under the Securities Act covering such proposed disposition has been
filed by the Issuer with the Securities and Exchange Commission and has become
effective under the Securities Act, (iii) the Issuer has received other evidence
reasonably satisfactory to the Issuer that such registration and qualification
under the Securities Act and state securities laws are not required, or (iv) the
Holder provides the Issuer with reasonable assurances that such security can be
sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the
Issuer has received an opinion of counsel reasonably satisfactory to the Issuer,
to the effect that registration or qualification under the securities or “blue
sky” laws of any state is not required in connection with such proposed
disposition, or (ii) compliance with applicable state securities or “blue sky”
laws has been effected or a valid exemption exists with respect
thereto.  The Issuer will respond to any such notice from a holder
within three (3) Trading Days.  In the case of any proposed transfer
under this Section
2(h), the Issuer will pay the expenses of and use reasonable efforts to
comply with any such applicable state securities or “blue sky” laws, but shall
in no event be required, (x) to qualify to do business in any state where it is
not then qualified, or (y) to take any action that would subject it to tax or to
the general service of process in any state where it is not then subject. The
restrictions on transfer contained in this Section
2(h) shall be in addition to, and not by way of limitation of, any other
restrictions on transfer contained in any other section of this
Warrant.  Whenever a certificate representing the Warrant Stock is
required to be issued to a the Holder without a legend, at the request of the
Holder, in lieu of delivering physical certificates representing the Warrant
Stock, the Issuer shall cause its transfer agent to electronically transmit the
Warrant Stock to the Holder by crediting the account of the Holder's Prime
Broker with DTC through its DWAC system (to the extent not inconsistent with any
provisions of this Warrant or the Purchase Agreement).

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    (i)           Accredited Investor
Status.  In no event may the Holder exercise this Warrant in
whole or in part unless the Holder is an “accredited investor” as defined in
Regulation D under the Securities Act.

    

    3.           Stock
Fully Paid; Reservation and Listing of Shares; Covenants.

    

    (a)          Stock Fully
Paid.  The Issuer represents, warrants, covenants and agrees
that all shares of Warrant Stock which may be issued upon the exercise of this
Warrant or otherwise hereunder will, when issued in accordance with the terms of
this Warrant, be duly authorized, validly issued, fully paid and non-assessable
and free from all taxes, liens and charges.  The Issuer further
covenants and agrees that during the period within which this Warrant may be
exercised, the Issuer will at all times have authorized and reserved for the
purpose of the issuance upon exercise of this Warrant a number of authorized but
unissued shares of Common Stock equal to at least one hundred twenty percent
(120%) of the number of shares of Common Stock issuable upon exercise of this
Warrant without regard to any limitations on exercise.

    

    (b)         Reservation.  If
any shares of Common Stock required to be reserved for issuance upon exercise of
this Warrant or as otherwise provided hereunder require registration or
qualification with any Governmental Authority under any federal or state law
before such shares may be so issued, the Issuer will in good faith use its best
efforts as expeditiously as possible at its expense to cause such shares to be
duly registered or qualified.  If the Issuer shall list any shares of
Common Stock on any securities exchange or market it will, at its expense, list
thereon, and maintain and increase when necessary such listing of, all shares of
Warrant Stock from time to time issued upon exercise of this Warrant or as
otherwise provided hereunder (provided that such Warrant
Stock has been registered pursuant to a registration statement under the
Securities Act then in effect), and, to the extent permissible under the
applicable securities exchange rules, all unissued shares of Warrant Stock which
are at any time issuable hereunder, so long as any shares of Common Stock shall
be so listed.  The Issuer will also so list on each securities
exchange or market, and will maintain such listing of, any other securities
which the Holder of this Warrant shall be entitled to receive upon the exercise
of this Warrant if at the time any securities of the same class shall be listed
on such securities exchange or market by the Issuer.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (c)           Covenants.  The
Issuer shall not by any action including, without limitation, amending the
Certificate of Incorporation or the by-laws of the Issuer, or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of the Holder
hereof against dilution (to the extent specifically provided herein) or
impairment.  Without limiting the generality of the foregoing, the
Issuer will (i) not permit the par value, if any, of its Common Stock to exceed
the then effective Warrant Price, (ii) not amend or modify any provision of the
Certificate of Incorporation or by-laws of the Issuer in any manner that would
materially and adversely affect the rights of the Holders of the Warrants, (iii)
take all such action as may be reasonably necessary in order that the Issuer may
validly and legally issue fully paid and nonassessable shares of Common Stock,
free and clear of any liens, claims, encumbrances and restrictions (other than
as provided herein) upon the exercise of this Warrant, and (iv) use its best
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be reasonably
necessary to enable the Issuer to perform its obligations under this
Warrant.

    

    (d)           Loss, Theft, Destruction,
Mutilation of Warrants.  Upon receipt of evidence satisfactory
to the Issuer of the ownership of and the loss, theft, destruction or mutilation
of any Warrant and, in the case of any such loss, theft or destruction, upon
receipt of indemnity or security satisfactory to the Issuer or, in the case of
any such mutilation, upon surrender and cancellation of such Warrant, the Issuer
will make and deliver, in lieu of such lost, stolen, destroyed or mutilated
Warrant, a new Warrant of like tenor and representing the right to purchase the
same number of shares of Common Stock.

    

    (e)           Payment of
Taxes.  The Issuer will pay any documentary stamp taxes
attributable to the initial issuance of the Warrant Stock issuable upon exercise
of this Warrant; provided,
however, that the Issuer shall not be required to pay any tax or taxes
which may be payable in respect of any transfer involved in the issuance or
delivery of any certificates representing Warrant Stock in a name other than
that of the Holder in respect to which such shares are issued.

    

    4.           Adjustment
of Warrant Price and Number of Shares Issuable Upon
Exercise.  The Warrant Price and the number of shares of
Warrant Stock that may be purchased upon exercise of this Warrant shall be
subject to adjustment from time to time as set forth in this Section
4. The Issuer shall give the Holder notice of any event described below
which requires an adjustment pursuant to this Section
4 in accordance with the notice provisions set forth in Section
5.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (a)          Recapitalization,
Reorganization, Reclassification, Consolidation, Merger or
Sale.

    

    (i)           In
case the Issuer after the Original Issue Date shall do any of the following
(each, a “Triggering
Event”): (a) consolidate or merge with or into any other Person and the
Issuer shall not be the continuing or surviving Person of such consolidation or
merger, or (b) permit any other Person to consolidate with or merge into the
Issuer and the Issuer shall be the continuing or surviving Person but, in
connection with such consolidation or merger, any Capital Stock of the Issuer
shall be changed into or exchanged for Securities of any other Person or cash or
any other property, or (c) transfer all or substantially all of its properties
or assets to any other Person, or (d) effect a capital reorganization or
reclassification of its Capital Stock, then, and in the case of each such
Triggering Event, proper provision shall be made to the Warrant Price and the
number of shares of Warrant Stock that may be purchased upon exercise of this
Warrant so that, upon the basis and the terms and in the manner provided in this
Warrant, the Holder of this Warrant shall be entitled upon the exercise hereof
at any time after the consummation of such Triggering Event, to the extent this
Warrant is not exercised prior to such Triggering Event, to receive at the
Warrant Price as adjusted to take into account the consummation of such
Triggering Event, in lieu of the Common Stock issuable upon such exercise of
this Warrant prior to such Triggering Event, the Securities, cash and property
to which such Holder would have been entitled upon the consummation of such
Triggering Event if such Holder had exercised the rights represented by this
Warrant immediately prior thereto (including the right of a shareholder to elect
the type of consideration it will receive upon a Triggering Event), subject to
adjustments (subsequent to such corporate action) as nearly equivalent as
possible to the adjustments provided for elsewhere in this Section
4, provided,
however, the Holder at its option may elect to receive an amount in cash
equal to the value of this Warrant calculated in accordance with the
Black-Scholes formula.  Immediately upon the occurrence of a
Triggering Event, the Issuer shall notify the Holder in writing of such
Triggering Event and provide the calculations in determining the number of
shares of Warrant Stock issuable upon exercise of the new warrant and the
adjusted Warrant Price.  Upon the Holder’s request, the continuing or
surviving Person as a result of such Triggering Event shall issue to the Holder
a new warrant of like tenor evidencing the right to purchase the adjusted number
of shares of Warrant Stock and the adjusted Warrant Price pursuant to the terms
and provisions of this Section
4(a)(i).  Notwithstanding the foregoing to the contrary, this
Section
4(a)(i) shall only apply if the surviving entity pursuant to any such
Triggering Event has a class of equity securities registered pursuant to the
Exchange Act, and its common stock is listed or quoted on a national securities
exchange, national automated quotation system or the OTC Bulletin
Board.  In the event that the surviving entity pursuant to any such
Triggering Event is not a public company that is registered pursuant to the
Exchange Act, or its common stock is not listed or quoted on a national
securities exchange, national automated quotation system or the OTC Bulletin
Board, then the Holder shall have the right to demand that the Issuer pay to the
Holder an amount in cash equal to the value of this Warrant calculated in
accordance with the Black-Scholes formula.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    (ii)          In
the event that the Holder has elected not to exercise this Warrant prior to the
consummation of a Triggering Event and has also elected not to receive an amount
in cash equal to the value of this Warrant calculated in accordance with the
Black-Scholes formula pursuant to the provisions of Section
4(a)(i) above, so long as the surviving entity pursuant to any Triggering
Event is a company that has a class of equity securities registered pursuant to
the Exchange Act, and its common stock is listed or quoted on a national
securities exchange, national automated quotation system or the OTC Bulletin
Board, the surviving entity and/or each Person (other than the Issuer) which may
be required to deliver any shares of Warrant Stock (including all Securities,
cash or property) upon the exercise of this Warrant as provided herein shall
assume, by written instrument delivered to, and reasonably satisfactory to, the
Holder of this Warrant, (A) the obligations of the Issuer under this Warrant
(and if the Issuer shall survive the consummation of such Triggering Event, such
assumption shall be in addition to, and shall not release the Issuer from, any
continuing obligations of the Issuer under this Warrant) and (B) the obligation
to deliver to such Holder such Securities, cash or property as, in accordance
with the foregoing provisions of this subsection
(a), such Holder shall be entitled to receive, and the surviving entity
and/or each such Person shall have similarly delivered to such Holder an opinion
of counsel for the surviving entity and/or each such Person, which counsel shall
be reasonably satisfactory to such Holder, or in the alternative, a written
acknowledgement executed by the President or Chief Financial Officer of the
Issuer, stating that this Warrant shall thereafter continue in full force and
effect and the terms hereof (including, without limitation, all of the
provisions of this subsection
(a)) shall be applicable to the shares Warrant Stock (including all
Securities, cash or property) which the surviving entity and/or each such Person
may be required to deliver upon any exercise of this Warrant or the exercise of
any rights pursuant hereto.

    

    (b)         Stock Dividends,
Subdivisions and Combinations.  If at any time the Issuer
shall:

    

    (i)          make
or issue or set a record date for the holders of the Common Stock for the
purpose of entitling them to receive a dividend payable in, or other
distribution of, shares of Common Stock,

    

    (ii)         subdivide
its outstanding shares of Common Stock into a larger number of shares of Common
Stock, or

    

    (iii)        combine
its outstanding shares of Common Stock into a smaller number of shares of Common
Stock,

    

    then (1)
the number of shares of Common Stock for which this Warrant is exercisable
immediately after the occurrence of any such event shall be adjusted to equal
the number of shares of Common Stock which a record holder of the same number of
shares of Common Stock for which this Warrant is exercisable immediately prior
to the occurrence of such event would own or be entitled to receive after the
happening of such event, and (2) the Warrant Price then in effect shall be
adjusted to equal (A) the Warrant Price then in effect multiplied by the number
of shares of Common Stock for which this Warrant is exercisable immediately
prior to the adjustment divided by (B) the number of shares of Common Stock for
which this Warrant is exercisable immediately after such
adjustment.

    

    (c)         Certain Other
Distributions.  If at any time the Issuer shall make or issue
or set a record date for the holders of the Common Stock for the purpose of
entitling them to receive any dividend or other distribution of:

    

    
      (i)         
cash,

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      (ii)        
any
evidences of its indebtedness, any shares of stock of any class or any other
Securities or property of any nature whatsoever (other than cash, Common Stock
Equivalents or Additional Shares of Common Stock), or

    

    

    
      (iii)       
any
warrants or other rights to subscribe for or purchase any evidences of its
indebtedness, any shares of stock of any class or any other securities or
property of any nature whatsoever (other than cash, Common Stock Equivalents or
Additional Shares of Common Stock), then (1) the number of shares of Common
Stock for which this Warrant is exercisable shall be adjusted to equal the
product of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such adjustment multiplied by a fraction (A)
the numerator of which shall be the Per Share Market Value of Common Stock at
the date of taking such record and (B) the denominator of which shall be such
Per Share Market Value minus the amount allocable to one share of Common Stock
of any such cash so distributable and of the fair value (as determined in good
faith by the Board of Directors of the Issuer and supported by an opinion from
an investment banking firm mutually agreed upon by the Issuer and the Holder) of
any and all such evidences of indebtedness, shares of stock, other securities or
property or warrants or other subscription or purchase rights so distributable,
and (2) the Warrant Price then in effect shall be adjusted to equal (A) the
Warrant Price then in effect multiplied by the number of shares of Common Stock
for which this Warrant is exercisable immediately prior to the adjustment
divided by (B) the number of shares of Common Stock for which this Warrant is
exercisable immediately after such adjustment.  A reclassification of
the Common Stock (other than a change in par value, or from par value to no par
value or from no par value to par value) into shares of Common Stock and shares
of any other class of stock shall be deemed a distribution by the Issuer to the
holders of its Common Stock of such shares of such other class of stock within
the meaning of this Section
4(c) and, if the outstanding shares of Common Stock shall be changed into
a larger or smaller number of shares of Common Stock as a part of such
reclassification, such change shall be deemed a subdivision or combination, as
the case may be, of the outstanding shares of Common Stock within the meaning of
Section
4(b).

    

    

    (d)           Issuance of Additional
Shares of Common Stock.  In the event the Issuer shall at any
time within one (1) year following the Original Issuance Date (the “Full
Ratchet Period”) issue any Additional Shares of Common Stock (otherwise
than as provided in the foregoing subsections
(b) through (c) of this Section
4), at a price per share less than the Warrant Price then in effect or
without consideration, then the Warrant Price upon each such issuance shall be
adjusted to the price equal to the consideration per share paid for such
Additional Shares of Common Stock.

    

    (e)           Issuance of Common Stock
Equivalents.  In the event the Issuer shall at any time within
the Full Ratchet Period take a record of the holders of its Common Stock for the
purpose of entitling them to receive a distribution of, or shall in any manner
(whether directly or by assumption in a merger in which the Issuer is the
surviving Person) issue or sell, any Common Stock Equivalents, whether or not
the rights to exchange or convert thereunder are immediately exercisable, and
the price per share for which Common Stock is issuable upon such conversion or
exchange shall be less than the Warrant Price in effect immediately prior to the
time of such issue or sale, or if, after any such issuance of Common Stock
Equivalents, the price per share for which Additional Shares of Common Stock may
be issuable thereafter is amended or adjusted, and such price as so amended
shall be less than the Warrant Price in effect at the time of such amendment or
adjustment, then the Warrant Price then in effect shall be adjusted as provided
in Section
4(d).  No further adjustments of the number of shares of Common
Stock for which this Warrant is exercisable and the Warrant Price then in effect
shall be made upon the actual issue of such Common Stock upon conversion or
exchange of such Common Stock Equivalents.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (f)           Subsequent Common Stock and
Common Stock Equivalents Issues.  In the event the Company,
shall, at any time after the Full Ratchet Period, issue or sell any Additional
Shares of Common Stock or Common Stock Equivalents (otherwise than as provided
in the foregoing subsections
(a) through (e) of this Section 4), at a price per share less than the
Warrant Price, or without consideration, the Warrant Price then in effect upon
each such issuance shall be adjusted to that price (rounded to the nearest cent)
determined by multiplying the Warrant Price by a fraction: (1) the numerator of
which shall be equal to the sum of (A) the number of
shares of Common Stock outstanding immediately prior to the issuance of such
Additional Shares of Common Stock plus (B) the number of shares
of Common Stock (rounded to the nearest whole share) which the aggregate
consideration for the total number of such Additional Shares of Common Stock so
issued would purchase at a price per share equal to the then Warrant Price; and
(2) the denominator of which shall be equal to the number of shares of Common
Stock outstanding immediately after the issuance of such Additional Shares of
Common Stock.  No adjustment of the number of shares of Common Stock
shall be made upon the issuance of any Additional Shares of Common Stock which
are issued pursuant to the exercise of any warrants or other subscription or
purchase rights or pursuant to the exercise of any conversion or exchange rights
in any Common Stock Equivalents if any such adjustment shall previously have
been made upon the issuance of such warrants or other rights or upon the
issuance of such Common Stock Equivalents (or upon the issuance of any warrant
or other rights therefore).

    

    (g)           Other Provisions applicable
to Adjustments under this Section.  The following provisions
shall be applicable to the making of adjustments of the number of shares of
Common Stock for which this Warrant is exercisable and the Warrant Price then in
effect provided for in this Section
4:

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    
      (i)       
Computation of
Consideration.  To the extent that any Additional Shares of
Common Stock or any Common Stock Equivalents (or any warrants or other rights
therefor) shall be issued for cash consideration, the consideration received by
the Issuer therefor shall be the amount of the cash received by the Issuer
therefor, or, if such Additional Shares of Common Stock or Common Stock
Equivalents are offered by the Issuer for subscription, the subscription price,
or, if such Additional Shares of Common Stock or Common Stock Equivalents are
sold to underwriters or dealers for public offering without a subscription
offering, the initial public offering price (in any such case subtracting any
amounts paid or receivable for accrued interest or accrued dividends and without
taking into account any compensation, discounts or expenses paid or incurred by
the Issuer for and in the underwriting of, or otherwise in connection with, the
issuance thereof).  In connection with any merger or consolidation in
which the Issuer is the surviving Person (other than any consolidation or merger
in which the previously outstanding shares of Common Stock of the Issuer shall
be changed to or exchanged for the stock or other securities of another Person),
the amount of consideration therefore shall be, deemed to be the fair value, as
determined reasonably and in good faith by the Board, of such portion of the
assets and business of the nonsurviving Person as the Board may determine to be
attributable to such shares of Common Stock or Common Stock Equivalents, as the
case may be.  The consideration for any Additional Shares of Common
Stock issuable pursuant to any warrants or other rights to subscribe for or
purchase the same shall be the consideration received by the Issuer for issuing
such warrants or other rights plus the additional consideration payable to the
Issuer upon exercise of such warrants or other rights.  The
consideration for any Additional Shares of Common Stock issuable pursuant to the
terms of any Common Stock Equivalents shall be the consideration received by the
Issuer for issuing warrants or other rights to subscribe for or purchase such
Common Stock Equivalents, plus the consideration paid or payable to the Issuer
in respect of the subscription for or purchase of such Common Stock Equivalents,
plus the additional consideration, if any, payable to the Issuer upon the
exercise of the right of conversion or exchange in such Common Stock
Equivalents.  In the event of any consolidation or merger of the
Issuer in which the Issuer is not the surviving Person or in which the
previously outstanding shares of Common Stock of the Issuer shall be changed
into or exchanged for the stock or other securities of another Person, or in the
event of any sale of all or substantially all of the assets of the Issuer for
stock or other securities of any Person, the Issuer shall be deemed to have
issued a number of shares of its Common Stock for stock or securities or other
property of the other Person computed on the basis of the actual exchange ratio
on which the transaction was predicated, and for a consideration equal to the
fair market value on the date of such transaction of all such stock or
securities or other property of the other Person.  In the event any
consideration received by the Issuer for any securities consists of property
other than cash, the fair market value thereof at the time of issuance or as
otherwise applicable shall be as determined in good faith by the
Board.  In the event Common Stock is issued with other shares or
securities or other assets of the Issuer for consideration which covers both,
the consideration computed as provided in this Section
4(g)(i) shall be allocated among such securities and assets as determined
in good faith by the Board.

    

    

    
      (ii)        
When Adjustments to Be
Made.  The adjustments required by this Section
4 shall be made whenever and as often as any specified event requiring an
adjustment shall occur, except that any adjustment of the number of shares of
Common Stock for which this Warrant is exercisable that would otherwise be
required may be postponed (except in the case of a subdivision or combination of
shares of the Common Stock, as provided for in Section
4(b)) up to, but not beyond the date of exercise if such adjustment
either by itself or with other adjustments not previously made adds or subtracts
less than one percent (1%) of the shares of Common Stock for which this Warrant
is exercisable immediately prior to the making of such
adjustment.  Any adjustment representing a change of less than such
minimum amount (except as aforesaid) which is postponed shall be carried forward
and made (x) as soon as such adjustment, together with other adjustments
required by this Section
4 and not previously made, would result in a minimum adjustment, or (y)
on the date of exercise. For the purpose of any adjustment, any specified event
shall be deemed to have occurred at the close of business on the date of its
occurrence.

    

    

    
      (iii)        Fractional
Interests.  In computing adjustments under this Section
4, fractional interests in Common Stock shall be taken into account to
the nearest one one-hundredth (1/100th) of a
share.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    (iv)       When Adjustment Not
Required.  If the Issuer shall take a record of the holders of
its Common Stock for the purpose of entitling them to receive a dividend or
distribution or subscription or purchase rights and shall, thereafter and before
the distribution to stockholders thereof, legally abandon its plan to pay or
deliver such dividend, distribution, subscription or purchase rights, then
thereafter no adjustment shall be required by reason of the taking of such
record and any such adjustment previously made in respect thereof shall be
rescinded and annulled.

    

    (h)         Form of Warrant after
Adjustments.  The form of this Warrant need not be changed
because of any adjustments in the Warrant Price or the number and kind of
Securities purchasable upon the exercise of this Warrant.

    

    (i)           Escrow of Warrant
Stock.  If after any property becomes distributable pursuant to
this Section
4 by reason of the taking of any record of the holders of Common Stock,
but prior to the occurrence of the event for which such record is taken, and the
Holder exercises this Warrant, any shares of Common Stock issuable upon exercise
by reason of such adjustment shall be deemed the last shares of Common Stock for
which this Warrant is exercised (notwithstanding any other provision to the
contrary herein) and such shares or other property shall be held in escrow for
the Holder by the Issuer to be issued to the Holder upon and to the extent that
the event actually takes place, upon payment of the current Warrant
Price.  Notwithstanding any other provision to the contrary herein, if
the event for which such record was taken fails to occur or is rescinded, then
such escrowed shares shall be cancelled by the Issuer and escrowed property
returned.

    

    5.           Notice of
Adjustments.  Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to Section
4 hereof (for purposes of this Section
5, each an “Adjustment”),
the Issuer shall cause its Chief Financial Officer to prepare and execute a
certificate setting forth, in reasonable detail, the event requiring the
Adjustment, the amount of the Adjustment, the method by which such Adjustment
was calculated (including a description of the basis on which the Board made any
determination hereunder), and the Warrant Price and Warrant Share Number after
giving effect to such Adjustment, and shall cause copies of such certificate to
be delivered to the Holder of this Warrant promptly after each
Adjustment.  Any dispute between the Issuer and the Holder of this
Warrant with respect to the matters set forth in such certificate may at the
option of the Holder of this Warrant be submitted to an Independent Appraiser
selected by the Holder; provided that the Issuer
shall have ten (10) days after receipt of notice from such Holder of its
selection of such Independent Appraiser to object thereto, in which case such
Holder shall select another such Independent Appraiser and the Issuer shall have
no such right of objection.  The Independent Appraiser selected by the
Holder of this Warrant as provided in the preceding sentence shall be instructed
to deliver a written opinion as to such matters to the Issuer and such Holder
within thirty (30) days after submission to it of such dispute.  Such
opinion shall be final and binding on the parties hereto.  The costs
and expenses of the initial firm selected as Independent Appraiser shall be paid
equally by the Issuer and the Holder and, in the case of an objection by the
Issuer, the costs and expenses of the subsequent firm selected as Independent
Appraiser shall be paid in full by the Issuer.

    

    6.           Fractional
Shares.  No fractional shares of Warrant Stock will be issued
in connection with any exercise hereof, but in lieu of such fractional shares,
the Issuer shall round the number of shares to be issued upon exercise up to the
nearest whole number of shares.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    7.           Ownership
Cap and Exercise Restriction.  Notwithstanding anything to the
contrary set forth in this Warrant, at no time may a Holder of this Warrant
exercise this Warrant if the number of shares of Common Stock to be issued
pursuant to such exercise would exceed, when aggregated with all other shares of
Common Stock owned by such Holder and its affiliates at such time, the number of
shares of Common Stock which would result in such Holder and its affiliates
beneficially owning (as determined in accordance with Section 13(d) of the
Exchange Act and the rules  thereunder) in excess of 4.99% of the then issued and
outstanding shares of Common Stock; provided, however, that upon a holder
of this Warrant providing the Issuer with sixty-one (61) days notice (pursuant
to Section
12 hereof) (the “Waiver
Notice”) that such Holder would like to waive this Section
7 with regard to any or all shares of Common Stock issuable upon exercise
of this Warrant, this Section
7 will be of no force or effect with regard to all or a portion of the
Warrant referenced in the Waiver Notice; provided, further, that during the
sixty-one (61) day period prior to the Expiration Date of this Warrant the
Holder may waive this Section
7 upon providing the Waiver Notice at any time during such sixty-one (61)
day period; and provided, further, that any Waiver
Notice during the sixty-one (61) day period prior to the Expiration Date will
not be effective until the last day of the Term.

    

    8.           Definitions.  For
the purposes of this Warrant, the following terms have the following
meanings:

    

    “Additional
Shares of Common Stock” means all shares of Common Stock issued by the
Issuer after the Original Issue Date, and all shares of Other Common, if any,
issued by the Issuer after the Original Issue Date, except: (i) securities
issued (other than for cash) in connection with a merger, acquisition, or
consolidation that do not exceed 25% of the outstanding Common Stock of the
Company as of the date of the Purchase Agreement (such percentage subject to
adjustment in a manner consistent with the adjustments to the Warrant Price
contemplated in Section
4 hereof) and such issuances are determined in the light of the whole
transaction to which they are a part to be in the best interests of the Company,
(ii) securities issued pursuant to the conversion or exercise of convertible or
exercisable securities issued or outstanding on or prior to the date of the
Purchase Agreement or issued pursuant to the Purchase Agreement (so long as the
conversion or exercise price in such securities are not amended to lower such
price and/or adversely affect the Holders), (iii) Common Stock issued or the
issuance or grants of options to purchase Common Stock pursuant to the Company’s
stock option plans and employee stock purchase plans that either (x) exist on
the date of the Purchase Agreement, or (y) do not exceed fifteen percent (15%)
of the outstanding Common Stock of the Company as of the date of the Purchase
Agreement (such percentage subject to adjustment in a manner consistent with the
adjustments to the Warrant Price contemplated in Section
4 hereof), and (iv) securities issued in connection with bona fide strategic license
agreements or other partnering agreements so long as such issuances are not for
the purpose of raising capital which are approved by a majority of its
independent directors and such issuances are determined in the light of the
whole transaction to which they are a part to be in the best interests of the
Company.

    

    “Board”
shall mean the Board of Directors of the Issuer.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    “Capital
Stock” means and includes (i) any and all shares, interests,
participations or other equivalents of or interests in (however designated)
corporate stock, including, without limitation, shares of preferred or
preference stock, (ii) all partnership interests (whether general or limited) in
any Person which is a partnership, (iii) all membership interests or limited
liability company interests in any limited liability company, and (iv) all
equity or ownership interests in any Person of any other type.

    

    “Certificate
of Incorporation” means the Certificate of Incorporation of the Issuer as
in effect on the Original Issue Date, and as hereafter from time to time
amended, modified, supplemented or restated in accordance with the terms hereof
and thereof and pursuant to applicable law.

    

    “Common
Stock” means the Common Stock, $0.0001 par value per share, of the Issuer
and any other Capital Stock into which such stock may hereafter be
changed.

    

    “Common
Stock Equivalent” means any Convertible Security or warrant, option or
other right to subscribe for or purchase any Additional Shares of Common Stock
or any Convertible Security.

    

    “Convertible
Securities” means evidences of indebtedness, shares of Capital Stock or
other Securities which are or may be at any time convertible into or
exchangeable for Additional Shares of Common Stock.  The term “Convertible
Security” means one of the Convertible Securities.

    

    “Delivery
Date” shall be the date not exceeding three (3) Trading Days after an
exercise of this Warrant.

    

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

    

    “Expiration
Date” means May 21, 2014.

    

    “Governmental
Authority” means any governmental, regulatory or self-regulatory entity,
department, body, official, authority, commission, board, agency or
instrumentality, whether federal, state or local, and whether domestic or
foreign.

    

    “Holders”
mean the Persons who shall from time to time own any Warrant.  The
term “Holder” means one of the Holders.

    

    “Independent
Appraiser” means a nationally recognized or major regional investment
banking firm or firm of independent certified public accountants of recognized
standing (which may be the firm that regularly examines the financial statements
of the Issuer) that is regularly engaged in the business of appraising the
Capital Stock or assets of corporations or other entities as going concerns, and
which is not affiliated with either the Issuer or the Holder of any
Warrant.

    

    “Issuer”
means Juma Technology Corp., a Delaware corporation, and its
successors.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    “Majority
Holders” means at any time the Holders of Warrants exercisable for a
majority of the shares of Warrant Stock issuable under the Warrants at the time
outstanding.

    

    “Original
Issue Date” means January 28, 2010.

    

    “OTC
Bulletin Board” means the over-the-counter electronic bulletin
board.

    

    “Other
Common” means any other Capital Stock of the Issuer of any class which
shall be authorized at any time after the date of this Warrant (other than
Common Stock) and which shall have the right to participate in the distribution
of earnings and assets of the Issuer without limitation as to
amount.

    

    “Outstanding
Common Stock” means, at any given time, the aggregate amount of
outstanding shares of Common Stock, assuming full exercise, conversion or
exchange (as applicable) of all options, warrants and other Securities which are
convertible into or exercisable or exchangeable for, and any right to subscribe
for, shares of Common Stock that are outstanding at such time.

    

    “Person”
means an individual, corporation, limited liability company, partnership, joint
stock company, trust, unincorporated organization, joint venture, Governmental
Authority or other entity of whatever nature.

    

    “Per Share
Market Value” means on any particular date (a) the last closing bid price
per share of the Common Stock on such date on the OTC Bulletin Board or another
registered national stock exchange on which the Common Stock is then listed, or
if there is no such price on such date, then the closing bid price on such
exchange or quotation system on the date nearest preceding such date, or (b) if
the Common Stock is not listed then on the OTC Bulletin Board or any registered
national stock exchange, the last closing bid price for a share of Common Stock
in the over-the-counter market, as reported by the OTC Bulletin Board or in the
National Quotation Bureau Incorporated or similar organization or agency
succeeding to its functions of reporting prices) at the close of business on
such date, or (c) if the Common Stock is not then reported by the OTC Bulletin
Board or the National Quotation Bureau Incorporated (or similar organization or
agency succeeding to its functions of reporting prices), then the “Pink Sheet”
quotes for the applicable Trading Days preceding such date of determination, or
(d) if the Common Stock is not then publicly traded the fair market value of a
share of Common Stock as determined by an Independent Appraiser selected in good
faith by the Majority Holders; provided, however, that the
Issuer, after receipt of the determination by such Independent Appraiser, shall
have the right to select an additional Independent Appraiser, in which case, the
fair market value shall be equal to the average of the determinations by each
such Independent Appraiser; and provided, further that all
determinations of the Per Share Market Value shall be appropriately adjusted for
any stock dividends, stock splits or other similar transactions during such
period.  The determination of fair market value by an Independent
Appraiser shall be based upon the fair market value of the Issuer determined on
a going concern basis as between a willing buyer and a willing seller and taking
into account all relevant factors determinative of value, and shall be final and
binding on all parties.  In determining the fair market value of any
shares of Common Stock, no consideration shall be given to any restrictions on
transfer of the Common Stock imposed by agreement or by federal or state
securities laws, or to the existence or absence of, or any limitations on,
voting rights.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    “Purchase
Agreement” means the Note and Warrant Purchase Agreement dated as of
January 28, 2010, among the Issuer and the Purchasers.

    

    “Purchasers”
means the purchasers of the Notes and the Warrants issued by the Issuer pursuant
to the Purchase Agreement.

    

    “Securities”
means any debt or equity securities of the Issuer, whether now or hereafter
authorized, any instrument convertible into or exchangeable for Securities or a
Security, and any option, warrant or other right to purchase or acquire any
Security.  “Security” means one of the Securities.

    

    “Securities
Act” means the Securities Act of 1933, as amended, or any similar federal
statute then in effect.

    

    “Subsidiary”
means any corporation at least 50% of whose outstanding Voting Stock shall at
the time be owned directly or indirectly by the Issuer or by one or more of its
Subsidiaries, or by the Issuer and one or more of its Subsidiaries.

    

    “Term”
has the meaning specified in Section
1 hereof.

    

    “Trading
Day” means (a) a day on which the Common Stock is traded on the OTC
Bulletin Board, or (b) if the Common Stock is not traded on the OTC Bulletin
Board, a day on which the Common Stock is quoted in the over-the-counter market
as reported by the National Quotation Bureau Incorporated (or any similar
organization or agency succeeding its functions of reporting prices); provided, however, that in
the event that the Common Stock is not listed or quoted as set forth in (a) or
(b) hereof, then Trading Day shall mean any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
State of New York are authorized or required by law or other government action
to close.

    

    “Voting
Stock” means, as applied to the Capital Stock of any corporation, Capital
Stock of any class or classes (however designated) having ordinary voting power
for the election of a majority of the members of the Board of Directors (or
other governing body) of such corporation, other than Capital Stock having such
power only by reason of the happening of a contingency.

    

    “Warrants”
means the Warrants issued and sold pursuant to the Purchase Agreement,
including, without limitation, this Warrant, and any other warrants of like
tenor issued in substitution or exchange for any thereof pursuant to the
provisions of Section
2(c), 2(d) or 2(e) hereof or of any of such other Warrants.

    

    “Warrant
Price” initially means $0.15, as such price may be adjusted from time to
time as shall result from the adjustments specified in this Warrant, including
Section
4 hereto.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    “Warrant
Share Number” means at any time the aggregate number of shares of Warrant
Stock which may at such time be purchased upon exercise of this Warrant, after
giving effect to all prior adjustments and increases to such number made or
required to be made under the terms hereof.

    

    “Warrant
Stock” means Common Stock issuable upon exercise of any Warrant or
Warrants or otherwise issuable pursuant to any Warrant or Warrants and/or
Securities, cash and property to which such Holder would have been entitled upon
the occurrence of certain events set forth in Section
4.

    

    9.           Other
Notices.  In case at any time:

    

    
      	
               
      

            	
              (A)

            	
              the
      Issuer shall make any distributions to the holders of Common Stock;
      or

            

    

    

    
      	
               
      

            	
              (B)

            	
              the
      Issuer shall authorize the granting to all holders of its Common Stock of
      rights to subscribe for or purchase any shares of Capital Stock of any
      class or other rights; or

            

    

    

    
      	
               
      

            	
              (C)

            	
              there
      shall be any reclassification of the Capital Stock of the Issuer;
      or

            

    

    

    
      	
               
      

            	
              (D)

            	
              there
      shall be any capital reorganization by the Issuer;
  or

            

    

    

    
      	
               
      

            	
              (E)

            	
              there
      shall be any (i) consolidation or merger involving the Issuer or (ii)
      sale, transfer or other disposition of all or substantially all of the
      Issuer's property, assets or business (except a merger or other
      reorganization in which the Issuer shall be the surviving corporation and
      its shares of Capital Stock shall continue to be outstanding and unchanged
      and except a consolidation, merger, sale, transfer or other disposition
      involving a wholly-owned Subsidiary);
or

            

    

    

    
      	
               
      

            	
              (F)

            	
              there
      shall be a voluntary or involuntary dissolution, liquidation or winding-up
      of the Issuer or any partial liquidation of the Issuer or distribution to
      holders of Common Stock;

            

    

    

    then, in
each of such cases, the Issuer shall give written notice to the Holder of the
date on which (i) the books of the Issuer shall close or a record shall be taken
for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take
place.  Such notice also shall specify the date as of which the
holders of Common Stock of record shall participate in such dividend,
distribution or subscription rights, or shall be entitled to exchange their
certificates for Common Stock for securities or other property deliverable upon
such reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be.  Such
notice shall be given at least twenty (20) days prior to the action in question
and not less than ten (10) days prior to the record date or the date on which
the Issuer's transfer books are closed in respect thereto.  This
Warrant entitles the Holder to receive copies of all financial and other
information distributed or required to be distributed to the holders of the
Common Stock.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    10.         Amendment
and Waiver; Failure or Indulgence Not Waiver.  Any term,
covenant, agreement or condition in this Warrant may be amended, or compliance
therewith may be waived (either generally or in a particular instance and either
retroactively or prospectively), by a written instrument or written instruments
executed by the Issuer and the Majority Holders; provided, however, that no
such amendment or waiver shall reduce the Warrant Share Number, increase the
Warrant Price, shorten the period during which this Warrant may be exercised or
modify any provision of this Section
10 without the consent of the Holder of this Warrant.  No
consideration shall be offered or paid to any person to amend or consent to a
waiver or modification of any provision of this Warrant unless the same
consideration is also offered to all holders of the Warrants.  No
failure or delay on the part of the Holder in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power, right or privilege preclude other or
further exercise thereof or of any other right, power or privilege, nor shall
any waiver by the Holder of any such right or rights on any one occasion be
deemed a waiver of the same right or rights on any future occasion.

    

    11.         Governing
Law; Jurisdiction.  The parties acknowledge and agree that any
claim, controversy, dispute or action relating in any way to this agreement or
the subject matter of this agreement shall be governed solely by the laws of the
State of New York, without regard to any conflict of laws
doctrines.  The parties irrevocably consent to being served with legal
process issued from the state and federal courts located in New York and
irrevocably consent to the exclusive personal jurisdiction of the federal and
state courts situated in the State of New York.  The parties
irrevocably waive any objections to the personal jurisdiction of these
courts.  Said courts shall have sole and exclusive jurisdiction over
any and all claims, controversies, disputes and actions which in any way relate
to this agreement or the subject matter of this agreement.  The
parties also irrevocably waive any objections that these courts constitute an
oppressive, unfair, or inconvenient forum and agree not to seek to change venue
on these grounds or any other grounds.

    

    12.         Notices.  Any
notice, demand, request, waiver or other communication required or permitted to
be given hereunder shall be in writing and shall be effective (a) upon hand
delivery or facsimile at the address or number designated below (if delivered on
a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be
received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be:

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    
      	
              If
      to the Issuer:

            	
              Juma
      Technology, Corp.

            

    

    154
Toledo Street

    Farmingdale,
New York 11735

    Attention:
Chief Executive Officer

    Tel. No.:
(631) 300-1000

    Fax No.:
(631) 270-1105

    

    with
copies (which copies

    shall not
constitute notice)                                                 

    
      	
                    
      to:

            	
              Gersten
      Savage LLP 

            

    

    600
Lexington Avenue, 9th
Floor

    New York,
New York 10022

    Attention:
Jay Kaplowitz, Esq.

    Tel. No.:
(212) 752-9700

    Fax No.:
(212) 980-5192

    

    
      	
              If
      to any Holder:

            	
              At
      the address of such Holder set forth on Exhibit
      A to the Purchase Agreement, with copies
  to:

            

    

    

    Sadis & Goldberg LLP

    551 Fifth
Avenue, 21st
Floor

    New York,
New York 10176

    Attention:
Paul Fasciano, Esq.

    Tel. No.:
(212) 573-8025

    Fax No.:
(212) 573-8026

    

    Any party
hereto may from time to time change its address for notices by giving written
notice of such changed address to the other party hereto.

     

    13.         Warrant
Agent.  The Issuer may, by written notice to each Holder of
this Warrant, appoint an agent having an office in New York, New York for the
purpose of issuing shares of Warrant Stock on the exercise of this Warrant
pursuant to Section
2(e) hereof, exchanging this Warrant pursuant to Section
2(e) hereof or replacing this Warrant pursuant to Section
3(d) hereof, or any of the foregoing, and thereafter any such issuance,
exchange or replacement, as the case may be, shall be made at such office by
such agent.

    

    14.         Remedies.  The
remedies provided in this Warrant shall be cumulative and in addition to all
other remedies available under this Warrant, at law or in equity (including,
without limitation, a decree of specific performance and/or other injunctive
relief), no remedy contained herein shall be deemed a waiver of compliance with
the provisions giving rise to such remedy and nothing herein shall limit
Holder's right to pursue actual damages for any failure by the Issuer to comply
with the terms of this Warrant.  Amounts set forth or provided for
herein with respect to payments, exercise and the like (and the computation
thereof) shall be the amounts to be received by the Holder hereof and shall not,
except as expressly provided herein, be subject to any other obligation of the
Issuer (or the performance thereof).  The Issuer acknowledges that a
breach by it of its obligations hereunder will cause irreparable and material
harm to the Holder and that the remedy at law for any such breach may be
inadequate. Therefore the Issuer agrees that, in the event of any such breach or
threatened breach, the Holder shall be entitled, in addition to all other
available rights and remedies, at law or in equity, to seek and obtain such
equitable relief, including but not limited to an injunction restraining any
such breach or threatened breach, without the necessity of showing economic loss
and without any bond or other security being required.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    15.         Successors
and Assigns.  This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the Holders of
Warrant Stock issued pursuant hereto, and shall be enforceable by any such
Holder or Holder of Warrant Stock.

    

    16.         Construction.  This
Warrant shall be deemed to be jointly drafted by the Company and the Holder and
shall not be construed against any person as the drafter hereof.

    

    17.         Headings.  The
headings of the Sections of this Warrant are for convenience of reference only
and shall not, for any purpose, be deemed a part of this Warrant.

    

    18.         Registration
Rights.  The Holder of this Warrant is entitled to the benefit
of certain registration rights with respect to the shares of Warrant Stock
issuable upon the exercise of this Warrant pursuant to the Purchase Agreement
and the registration rights with respect to the shares of Warrant Stock issuable
upon the exercise of this Warrant by any subsequent Holder may only be assigned
in accordance with the terms and provisions of the Purchase
Agreement.

     

    19.         Enforcement
Expenses.  The Issuer agrees to pay all costs and expenses of
the Holder incurred as a result of enforcement of this Warrant, including,
without limitation, reasonable attorneys' fees and expenses.

     

     

    20.         Binding
Effect.   The obligations of the Issuer and the Holder set
forth herein shall be binding upon the successors and assigns of each such
party, whether or not such successors or assigns are permitted by the terms
hereof.

     

    [remainder of page intentionally left
blank]

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the Issuer has executed this Series A Warrant as of the day and
year first above written.

    

    
      
        
          	
                  JUMA
      TECHNOLOGY CORP.

                
	 
      	 
      
	
                  By: 

                	 
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    EXERCISE
FORM

    SERIES A
WARRANT

    

    JUMA
TECHNOLOGY CORP.

    

    The
undersigned _______________, pursuant to the provisions of the within Warrant,
hereby elects to purchase _____ shares of Common Stock of Juma Technology Corp.
covered by the within Warrant.

    

    
      
        
          
            
              
                	
                        Dated:
      _________________

                      	
                        Signature 

                      	 
      
	 
      	 
      	 
      
	 
      	
                        Address

                      	 
      
	 
      	 
      	 
      

              

            

          

        

      

    

    

    Number of
shares of Common Stock beneficially owned or deemed beneficially owned by the
Holder on the date of Exercise: _________________________

    

    The
undersigned is an “accredited investor” as defined in Regulation D under the
Securities Act of 1933, as amended.

     

    
      The
undersigned intends that payment of the Warrant Price shall be made as (check
one):

    

     

    Cash
Exercise_______

     

    Cashless
Exercise_______

     

    If the
Holder has elected a Cash Exercise, the Holder shall pay the sum of $________ by
certified or official bank check (or via wire transfer) to the Issuer in
accordance with the terms of the Warrant.

     

    If the
Holder has elected a Cashless Exercise, a certificate shall be issued to the
Holder for the number of shares equal to the whole number portion of the product
of the calculation set forth below, which is ___________.   The
Company shall pay a cash adjustment in respect of the fractional portion of the
product of the calculation set forth below in an amount equal to the product of
the fractional portion of such product and the Per Share Market Value on the
date of exercise, which product is ____________.

     

    X = Y -
(A)(Y)

       B

    

    
      Where:

    

    

    
      The
number of shares of Common Stock to be issued to the Holder
__________________(“X”).

    

    

    The
number of shares of Common Stock purchasable upon exercise of all of the Warrant
or, if only a portion of the Warrant is being exercised, the portion of the
Warrant being exercised ___________________________ (“Y”).

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      The
Warrant Price ______________ (“A”).

    

    

    The Per
Share Market Value of one share of Common Stock_______________________
(“B”).

    

    ASSIGNMENT

    

    FOR VALUE
RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

    

    
      
        
          
            
              	
                      Dated:
      _________________

                    	
                      Signature

                    	 
      
	 
      	 
      	 
      
	 
      	
                      Address

                    	 
      
	 
      	 
      	 
      

            

          

        

      

    

    

    PARTIAL
ASSIGNMENT

    

    FOR VALUE
RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Stock
evidenced by the within Warrant together with all rights therein, and does
irrevocably constitute and appoint ___________________, attorney, to transfer
that part of the said Warrant on the books of the within named
corporation.

    

    
      
        
          
            
              	
                      Dated:
      _________________

                    	
                      Signature

                    	 
      
	 
      	 
      	 
      
	 
      	
                      Address

                    	 
      
	 
      	 
      	 
      

            

          

        

      

    

    

    FOR USE
BY THE ISSUER ONLY:

    

    This
Warrant No. W-___ canceled (or transferred or exchanged) this _____ day of
___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. W-_____ issued for ____ shares of Common Stock in
the name of _______________.

    
      
         

      

      
        ii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]