Document:

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                                                                    Exhibit 10.2

        THE SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH
SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933,
AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144(K), OR (III)
THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT
THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE
SECURITIES ACT OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

        THIS WARRANT SHALL BE VOID AFTER 5:00 P.M. EASTERN TIME ON MARCH 2, 2012
(THE "EXPIRATION DATE").

No.

                                 NARROWSTEP INC.

                  WARRANT TO PURCHASE _______________ SHARES OF
                   COMMON STOCK, PAR VALUE $0.000001 PER SHARE

        FOR VALUE RECEIVED, ____________________ ("Warrantholder"), is entitled
to purchase, subject to the provisions of this Warrant, from Narrowstep Inc., a
Delaware corporation ("Company"), at any time not later than 5:00 P.M., Eastern
time, on the Expiration Date (as defined above), at an exercise price per share
equal to $0.60 (the exercise price in effect being herein called the "Warrant
Price"), _____________ shares ("Warrant Shares") of the Company's Common Stock,
par value $0.000001 per share ("Common Stock"). The number of Warrant Shares
purchasable upon exercise of this Warrant and the Warrant Price shall be subject
to adjustment from time to time as described herein. This Warrant is issued
pursuant to the terms and conditions of a Purchase Agreement, dated as of March
2, 2007 (the "Purchase Agreement"), between the Company and the Warrantholder.
Capitalized terms used herein have the respective meanings ascribed thereto in
the Purchase Agreement unless otherwise defined herein.

        Section 1. REGISTRATION. The Company shall maintain books for the
transfer and registration of the Warrant. Upon the initial issuance of this
Warrant, the Company shall issue and register the Warrant in the name of the
Warrantholder.

        Section 2. TRANSFERS. As provided herein, this Warrant may be
transferred only pursuant to a registration statement filed under the Securities
Act of 1933, as amended (the "Securities Act"), or an exemption from such
registration. Subject to such restrictions, the Company shall transfer this
Warrant from time to time upon the books to be maintained by the Company for
that purpose, upon surrender hereof for transfer, properly endorsed or
accompanied by appropriate instructions for transfer and such other documents as
may be reasonably required by the Company, including, if required by the
Company, an opinion of its counsel to the effect that such transfer is exempt
from the registration requirements of the Securities Act, to establish that such
transfer is being made in accordance with the terms hereof, and a new Warrant
shall be issued to the transferee and the surrendered Warrant shall be canceled
by the Company.

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        Section 3. EXERCISE OF WARRANT. Subject to the provisions hereof, the
Warrantholder may exercise this Warrant, in whole or in part, at any time prior
to its expiration upon surrender of the Warrant, together with delivery of a
duly executed Warrant exercise form, in the form attached hereto as Appendix A
(the "Exercise Agreement") and payment by cash, certified check or wire transfer
of funds of the aggregate Warrant Price for that number of Warrant Shares then
being purchased, to the Company during normal business hours on any business day
at the Company's principal executive offices (or such other office or agency of
the Company as it may designate by notice to the Warrantholder). The Warrant
Shares so purchased shall be deemed to be issued to the Warrantholder or the
Warrantholder's designee, as the record owner of such shares, as of the close of
business on the date on which this Warrant shall have been surrendered (or the
date evidence of loss, theft or destruction thereof and security or indemnity
satisfactory to the Company has been provided to the Company), the Warrant Price
shall have been paid and the completed Exercise Agreement shall have been
delivered. Certificates for the Warrant Shares so purchased shall be delivered
to the Warrantholder within a reasonable time, not exceeding three (3) business
days, after this Warrant shall have been so exercised. The certificates so
delivered shall be in such denominations as may be requested by the
Warrantholder and shall be registered in the name of the Warrantholder or such
other name as shall be designated by the Warrantholder, as specified in the
Exercise Agreement. If this Warrant shall have been exercised only in part,
then, unless this Warrant has expired, the Company shall, at its expense, at the
time of delivery of such certificates, deliver to the Warrantholder a new
Warrant representing the right to purchase the number of shares with respect to
which this Warrant shall not then have been exercised. As used herein, "business
day" means a day, other than a Saturday or Sunday, on which banks in New York
City are open for the general transaction of business. Each exercise hereof
shall constitute the re-affirmation by the Warrantholder that the
representations and warranties contained in Section 5 of the Purchase Agreement
are true and correct in all material respects with respect to the Warrantholder
as of the time of such exercise.

        Section 4. COMPLIANCE WITH THE SECURITIES ACT OF 1933. The Company may
cause the legend set forth on the first page of this Warrant to be set forth on
each Warrant, and a similar legend on any security issued or issuable upon
exercise of this Warrant, unless counsel for the Company is of the opinion as to
any such security that such legend is unnecessary.

        Section 5. PAYMENT OF TAXES. The Company will pay any documentary stamp
taxes attributable to the initial issuance of Warrant Shares issuable upon the
exercise of the Warrant; provided, however, that the Company 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 for Warrant Shares in a
name other than that of the Warrantholder in respect of which such shares are
issued, and in such case, the Company shall not be required to issue or deliver
any certificate for Warrant Shares or any Warrant until the person requesting
the same has paid to the Company the amount of such tax or has established to
the Company's reasonable satisfaction that such tax has been paid. The
Warrantholder shall be responsible for income taxes due under federal, state or
other law, if any such tax is due.

        Section 6. MUTILATED OR MISSING WARRANTS. In case this Warrant shall be
mutilated, lost, stolen, or destroyed, the Company shall issue in exchange and
substitution of and upon surrender and cancellation of the mutilated Warrant, or
in lieu of and substitution for the Warrant

                                      -2-

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lost, stolen or destroyed, a new Warrant of like tenor and for the purchase of a
like number of Warrant Shares, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction of the Warrant,
and with respect to a lost, stolen or destroyed Warrant, reasonable indemnity or
bond with respect thereto, if requested by the Company.

        Section 7. RESERVATION OF COMMON STOCK. The Company hereby represents
and warrants that there have been reserved, and the Company shall at all
applicable times keep reserved until issued (if necessary) as contemplated by
this Section 7, out of the authorized and unissued shares of Common Stock,
sufficient shares to provide for the exercise of the rights of purchase
represented by this Warrant. The Company agrees that all Warrant Shares issued
upon due exercise of the Warrant shall be, at the time of delivery of the
certificates for such Warrant Shares, duly authorized, validly issued, fully
paid and non-assessable shares of Common Stock of the Company.

        Section 8. ADJUSTMENTS. Subject and pursuant to the provisions of this
Section 8, the Warrant Price and number of Warrant Shares subject to this
Warrant shall be subject to adjustment from time to time as set forth
hereinafter.

                (a)     If the Company shall, at any time or from time to time
while this Warrant is outstanding, pay a dividend or make a distribution on its
Common Stock in shares of Common Stock, subdivide its outstanding shares of
Common Stock into a greater number of shares or combine its outstanding shares
of Common Stock into a smaller number of shares or issue by reclassification of
its outstanding shares of Common Stock any shares of its capital stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing corporation), then (i) the Warrant
Price in effect immediately prior to the date on which such change shall become
effective shall be adjusted by multiplying such Warrant Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such change and the denominator of which shall be the
number of shares of Common Stock outstanding immediately after giving effect to
such change and (ii) the number of Warrant Shares purchasable upon exercise of
this Warrant shall be adjusted by multiplying the number of Warrant Shares
purchasable upon exercise of this Warrant immediately prior to the date on which
such change shall become effective by a fraction, the numerator of which is
shall be the Warrant Price in effect immediately prior to the date on which such
change shall become effective and the denominator of which shall be the Warrant
Price in effect immediately after giving effect to such change, calculated in
accordance with clause (i) above. Such adjustments shall be made successively
whenever any event listed above shall occur.

                (b)     If any capital reorganization, reclassification of the
capital stock of the Company, consolidation or merger of the Company with
another corporation in which the Company is not the survivor, or sale, transfer
or other disposition of all or substantially all of the Company's assets to
another corporation shall be effected, then, as a condition of such
reorganization, reclassification, consolidation, merger, sale, transfer or other
disposition, lawful and adequate provision shall be made whereby each
Warrantholder shall thereafter have the right to purchase and receive upon the
basis and upon the terms and conditions herein specified and in lieu of the
Warrant Shares immediately theretofore issuable upon exercise of the Warrant,
such

                                      -3-

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shares of stock, securities or assets as would have been issuable or payable
with respect to or in exchange for a number of Warrant Shares equal to the
number of Warrant Shares immediately theretofore issuable upon exercise of the
Warrant, had such reorganization, reclassification, consolidation, merger, sale,
transfer or other disposition not taken place, and in any such case appropriate
provision shall be made with respect to the rights and interests of each
Warrantholder to the end that the provisions hereof (including, without
limitation, provision for adjustment of the Warrant Price) shall thereafter be
applicable, as nearly equivalent as may be practicable in relation to any shares
of stock, securities or assets thereafter deliverable upon the exercise hereof.
The Company shall not effect any such consolidation, merger, sale, transfer or
other disposition unless prior to or simultaneously with the consummation
thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger, or the corporation purchasing or otherwise
acquiring such assets or other appropriate corporation or entity shall assume
the obligation to deliver to the Warrantholder, at the last address of the
Warrantholder appearing on the books of the Company, such shares of stock,
securities or assets as, in accordance with the foregoing provisions, the
Warrantholder may be entitled to purchase, and the other obligations under this
Warrant. The provisions of this paragraph (b) shall similarly apply to
successive reorganizations, reclassifications, consolidations, mergers, sales,
transfers or other dispositions.

                (c)     In case the Company shall fix a payment date for the
making of a distribution to all holders of Common Stock (including any such
distribution made in connection with a consolidation or merger in which the
Company is the continuing corporation) of evidences of indebtedness or assets
(other than cash dividends or cash distributions payable out of consolidated
earnings or earned surplus or dividends or distributions referred to in Section
8(a)), or subscription rights or warrants, the Warrant Price to be in effect
after such payment date shall be determined by multiplying the Warrant Price in
effect immediately prior to such payment date by a fraction, the numerator of
which shall be the total number of shares of Common Stock outstanding multiplied
by the Market Price (as defined below) per share of Common Stock immediately
prior to such payment date, less the fair market value (as determined by the
Company's Board of Directors in good faith) of said assets or evidences of
indebtedness so distributed, or of such subscription rights or warrants, and the
denominator of which shall be the total number of shares of Common Stock
outstanding multiplied by such Market Price per share of Common Stock
immediately prior to such payment date. "Market Price" as of a particular date
(the "Valuation Date") shall mean the following: (a) if the Common Stock is then
listed on a national stock exchange, the closing sale price of one share of
Common Stock on such exchange on the last trading day prior to the Valuation
Date; (b) if the Common Stock is then quoted on the National Association of
Securities Dealers, Inc. OTC Bulletin Board (the "Bulletin Board") or such
similar quotation system or association, the closing sale price of one share of
Common Stock on the Bulletin Board or such other quotation system or association
on the last trading day prior to the Valuation Date or, if no such closing sale
price is available, the average of the high bid and the low asked price quoted
thereon on the last trading day prior to the Valuation Date; or (c) if the
Common Stock is not then listed on a national stock exchange or quoted on the
Bulletin Board or such other quotation system or association, the fair market
value of one share of Common Stock as of the Valuation Date, as determined in
good faith by the Board of Directors of the Company and the Warrantholder. If
the Common Stock is not then listed on a national securities exchange, the
Bulletin Board or such other quotation system or association, the Board

                                      -4-

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of Directors of the Company shall respond promptly, in writing, to an inquiry by
the Warrantholder prior to the exercise hereunder as to the fair market value of
a share of Common Stock as determined by the Board of Directors of the Company.
In the event that the Board of Directors of the Company and the Warrantholder
are unable to agree upon the fair market value in respect of subpart (c) of this
paragraph, the Company and the Warrantholder shall jointly select an appraiser,
who is experienced in such matters. The decision of such appraiser shall be
final and conclusive, and the cost of such appraiser shall be borne equally by
the Company and the Warrantholder. Such adjustment shall be made successively
whenever such a payment date is fixed.

                (d)     An adjustment to the Warrant Price shall become
effective immediately after the payment date in the case of each dividend or
distribution and immediately after the effective date of each other event which
requires an adjustment.

                (e)     In the event that, as a result of an adjustment made
pursuant to this Section 8, the Warrantholder shall become entitled to receive
any shares of capital stock of the Company other than shares of Common Stock,
the number of such other shares so receivable upon exercise of this Warrant
shall be subject thereafter to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to the
Warrant Shares contained in this Warrant.

        Section 9. FRACTIONAL INTEREST. The Company shall not be required to
issue fractions of Warrant Shares upon the exercise of this Warrant. If any
fractional share of Common Stock would, except for the provisions of the first
sentence of this Section 9, be deliverable upon such exercise, the Company, in
lieu of delivering such fractional share, shall pay to the exercising
Warrantholder an amount in cash equal to the Market Price of such fractional
share of Common Stock on the date of exercise.

        Section 10. BENEFITS. Nothing in this Warrant shall be construed to give
any person, firm or corporation (other than the Company and the Warrantholder)
any legal or equitable right, remedy or claim, it being agreed that this Warrant
shall be for the sole and exclusive benefit of the Company and the
Warrantholder.

        Section 11. NOTICES TO WARRANTHOLDER. Upon the happening of any event
requiring an adjustment of the Warrant Price, the Company shall promptly give
written notice thereof to the Warrantholder at the address appearing in the
records of the Company, stating the adjusted Warrant Price and the adjusted
number of Warrant Shares resulting from such event and setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based. Failure to give such notice to the Warrantholder or any
defect therein shall not affect the legality or validity of the subject
adjustment.

        Section 12. IDENTITY OF TRANSFER AGENT. The Transfer Agent for the
Common Stock is Registrar and Transfer Company. Upon the appointment of any
subsequent transfer agent for the Common Stock or other shares of the Company's
capital stock issuable upon the exercise of the rights of purchase represented
by the Warrant, the Company will mail to the Warrantholder a statement setting
forth the name and address of such transfer agent.

                                      -5-

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        Section 13. NOTICES. Unless otherwise provided, any notice required or
permitted under this Warrant shall be given in writing and shall be deemed
effectively given as hereinafter described (i) if given by personal delivery,
then such notice shall be deemed given upon such delivery, (ii) if given by
telex or facsimile, then such notice shall be deemed given upon receipt of
confirmation of complete transmittal, (iii) if given by mail, then such notice
shall be deemed given upon the earlier of (A) receipt of such notice by the
recipient or (B) three days after such notice is deposited in first class mail,
postage prepaid, and (iv) if given by an internationally recognized overnight
air courier, then such notice shall be deemed given one business day after
delivery to such carrier. All notices shall be addressed as follows: if to the
Warrantholder, at its address as set forth in the Company's books and records
and, if to the Company, at the address as follows, or at such other address as
the Warrantholder or the Company may designate by ten days' advance written
notice to the other:

                        If to the Company:

                                 Narrowstep Inc.
                                 Battersea Studios
                                 80 Silverthorne Road
                                 London  SW8 3HE
                                 United Kingdom

                                       and

                                 116 Village Blvd, Suite 200
                                 Princeton, NJ 08540
                                 Attention: David C. McCourt, Interim Chief
                                 Executive Officer
                                 Fax:  (609) 951 2252

                        With a copy to:

                                 Lowenstein Sandler PC
                                 65 Livingston Avenue
                                 Roseland, NJ 07068
                                 Attention:  John D. Hogoboom
                                 Fax:  (973) 597-2383

        Section 14. SUCCESSORS. All the covenants and provisions hereof by or
for the benefit of the Warrantholder shall bind and inure to the benefit of its
respective successors and assigns hereunder.

        Section 15. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
TRIAL. This Warrant shall be governed by, and construed in accordance with, the
internal laws of the State of New York, without reference to the choice of law
provisions thereof. The Company and, by accepting this Warrant, the
Warrantholder, each irrevocably submits to the exclusive jurisdiction

                                      -6-

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of the courts of the State of New York located in New York County and the United
States District Court for the Southern District of New York for the purpose of
any suit, action, proceeding or judgment relating to or arising out of this
Warrant and the transactions contemplated hereby. Service of process in
connection with any such suit, action or proceeding may be served on each party
hereto anywhere in the world by the same methods as are specified for the giving
of notices under this Warrant. The Company and, by accepting this Warrant, the
Warrantholder, each irrevocably consents to the jurisdiction of any such court
in any such suit, action or proceeding and to the laying of venue in such court.
The Company and, by accepting this Warrant, the Warrantholder, each irrevocably
waives any objection to the laying of venue of any such suit, action or
proceeding brought in such courts and irrevocably waives any claim that any such
suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. EACH OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE
WARRANTHOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN
CONSULTED SPECIFICALLY AS TO THIS WAIVER.

        Section 16. MANDATORY EXERCISE PROVISION. [Notwithstanding any other
provision contained in this Warrant to the contrary, in the event that the
closing bid price per share of Common Stock as quoted on the Bulletin Board (or
such other exchange or stock market on which the Common Stock may then be listed
or quoted) equals or exceeds three times the then-current Warrant Price for
twenty (20) consecutive trading days, the Company, upon thirty (30) days prior
written notice (the "Notice Period") given to the Warrantholder within one
business day immediately following the end of such twenty (20) trading day
period, may demand that the Warrantholder exercise its exercise rights
hereunder, and the Warrantholder must exercise its rights hereunder prior to the
end of the Notice Period; provided that the Company simultaneously gives a
similar notice to all holders of Company Warrants (as defined below). If such
exercise is not made or if only a partial exercise is made, any and all rights
to further exercise the Warrant shall cease upon the expiration of the Notice
Period.

        Section 17. NO RIGHTS AS STOCKHOLDER. Prior to the exercise of this
Warrant, the Warrantholder shall not have or exercise any rights as a
stockholder of the Company by virtue of its ownership of this Warrant.

        Section 18. AMENDMENT; WAIVER. This Warrant is one of a series of
Warrants of like tenor issued or issuable by the Company pursuant to the
Purchase Agreement and initially covering an aggregate of up to 5,000,000 shares
of Common Stock (collectively, the "COMPANY WARRANTS"). Any term of this Warrant
may be amended or waived (including the adjustment provisions included in
Section 8 of this Warrant) upon the written consent of the Company and the
holders of Company Warrants representing at least 50% of the number of shares of
Common Stock then subject to all outstanding Company Warrants (the "MAJORITY
HOLDERS"); PROVIDED, that (x) any such amendment or waiver must apply to all
Company Warrants; and (y) the number of Warrant Shares subject to this Warrant,
the Warrant Price and the Expiration Date may not be amended, and the right to
exercise this Warrant may not be altered or waived, without the written consent
of the Warrantholder.

                                      -7-

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        Section 19. SECTION HEADINGS. The section headings in this Warrant are
for the convenience of the Company and the Warrantholder and in no way alter,
modify, amend, limit or restrict the provisions hereof.

                                      -8-

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        IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed, as of the 2nd day of March, 2007.

                                                  NARROWSTEP INC.

                                                  By:
                                                     ---------------------------
                                                  Name:  Lisa VanPatten
                                                  Title: Chief Financial Officer

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                                   APPENDIX A
                                 NARROWSTEP INC.
                              WARRANT EXERCISE FORM

To Narrowstep Inc.:

        The undersigned hereby irrevocably elects to exercise the right of
purchase represented by the within Warrant ("Warrant") for, and to purchase
thereunder by the payment of the Warrant Price and surrender of the Warrant,
_______________ shares of Common Stock ("Warrant Shares") provided for therein,
and requests that certificates for the Warrant Shares be issued as follows:

                           -------------------------------
                           Name

                           --------------------------------
                           Address

                           -------------------------------

                           -------------------------------
                           Federal Tax ID or Social Security No.

and delivered by  (certified mail to the above address, or
                  (electronically (provide DWAC Instructions:______________), or
                  (other (specify): __________________________________________).

and, if the number of Warrant Shares shall not be all the Warrant Shares
purchasable upon exercise of the Warrant, that a new Warrant for the balance of
the Warrant Shares purchasable upon exercise of this Warrant be registered in
the name of the undersigned Warrantholder or the undersigned's Assignee as below
indicated and delivered to the address stated below.

Dated: ___________________, ____

Note:  The signature must correspond with
       Signature:______________________________
the name of the Warrantholder as written
on the first page of the Warrant in every           ----------------------------
particular, without alteration or enlargement       Name (please print)
or any change whatever, unless the Warrant
has been assigned.
                                                    ----------------------------
                                                    ----------------------------
                                                    Address

                                                    ----------------------------
                                                    Federal Identification or
                                                    Social Security No.

                                                    Assignee:

                                                    ----------------------------
                                                    ----------------------------
                                                    ----------------------------<PAGE>
                                                                    Exhibit 10.3

THE SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH
SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933,
AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144(K), OR (III)
THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT
THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE
SECURITIES ACT OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

                        12% MANDATORILY CONVERTIBLE NOTE
                        --------------------------------

$                                                                  March 2, 2007
 ---------------

        FOR VALUE RECEIVED, Narrowstep Inc., a Delaware corporation (the
"COMPANY"), hereby unconditionally promises to pay to the order of
________________ (the "HOLDER"), having an address at
__________________________, at such address or at such other place as may be
designated in writing by the Holder, or its assigns, the aggregate principal sum
of _____________ United States Dollars ($______________), together with interest
from the date set forth above on the unpaid principal balance of this Note
outstanding at a rate equal to twelve percent (12%) (computed on the basis of
the actual number of days elapsed in a 365-day year) per annum and continuing on
the outstanding principal until this 12% Convertible Note (the "NOTE") is
automatically converted into other securities of the Company as provided herein
or indefeasibly and irrevocably paid in full by the Company. Interest on this
Note shall accrue and shall be payable on the Stated Maturity Date (as defined
below). Subject to the other provisions of this Note, the principal of this Note
and all accrued and unpaid interest hereon shall mature and become due and
payable on March 2, 2009 (the "STATED MATURITY DATE"). Except as provided
herein, all payments of principal and interest by the Company under this Note
shall be made in United States dollars in immediately available funds to an
account specified by the Holder. In no event shall any interest charged,
collected or reserved under this Note exceed the maximum rate then permitted by
applicable law and if any such payment is paid by the Company, then such excess
sum shall be credited by the Holder as a payment of principal.

        This Note is one of a series of Notes (the "COMPANY NOTES") of like
tenor in an aggregate principal amount of up to Ten Million United States
Dollars ($10,000,000) issued by the Company pursuant to the terms of the
Purchase Agreement (as defined below).

        1.      DEFINITIONS. Capitalized terms used herein shall have the
respective meanings ascribed thereto in the Purchase Agreement unless otherwise
defined herein. Unless the context otherwise requires, when used herein the
following terms shall have the meaning indicated:

                "BOARD" shall mean the Board of Directors of Company.

                "BUSINESS DAY" means any day, other than a Saturday, Sunday or
legal holiday, on which banks in New York City are open for the general
transaction of business.

                "COMPANY" has the meaning set forth in the first paragraph
hereof.

<PAGE>

                "COMPANY NOTES" has the meaning set forth in the second
paragraph hereof.

                "COMPANY SALE" shall be deemed to have occurred if, at any time
(i) the Company merges into or consolidates with any other Person, or any Person
merges into or consolidates with the Company and, after giving effect to such
transaction, the stockholders of the Company immediately prior to such
transaction own less than 50% of the aggregate voting power of the Company or
the successor entity of such transaction or (ii) the Company sells or transfers
its assets, as an entirety or substantially as an entirety, to another Person.

                "CONVERSION SECURITIES" shall mean (i) if the Mandatory
Conversion Event is the closing of a Qualified Financing, the securities issued
in the Qualified Financing and (ii) if the Mandatory Conversion Event is the
closing of a Company Sale, shares of Common Stock.

                "EVENT OF DEFAULT" has the meaning set forth in Section 6
hereof.

                "HOLDER" has the meaning set forth in the first paragraph
hereof.

                "LIEN" means any lien, mortgage, deed of trust, pledge, security
interest, charge or encumbrance of any kind (including any conditional sale or
other title retention agreement, any lease in the nature thereof and any
agreement to give any of the foregoing).

                "MAJORITY HOLDERS" has the meaning set forth in Section 8
hereof.

                "MANDATORY CONVERSION DATE" has the meaning set forth in Section
4(a) hereof.

                "MANDATORY CONVERSION EVENT" means the earlier to occur of
either (i) the closing of a Qualified Financing or (ii) a Company Sale.

                "NOTE" has the meaning set forth in the first paragraph hereof.

                "PERMITTED LIENS" means:

                (a)     restrictions on transfers of securities imposed by
applicable securities laws;

                (b)     Liens on the property of a Person existing at the time
such Person became a Subsidiary or such property was acquired from such Person;
provided, however, that any such Lien may not extend to any other property
(other than accessions to and proceeds thereof) provided, further, that any such
Lien was not created in anticipation of or in connection with the transaction or
series of transactions pursuant to which such Person became a Subsidiary or such
property was acquired from such Person;

                (c)     assignments of insurance or condemnation proceeds
provided to landlords (or their mortgagees) pursuant to the terms of any lease
and Liens or rights reserved in any lease for rent or for compliance with the
terms of such lease;

                (d)     Liens imposed by law for taxes that are not yet due or
are being contested in good faith and for which adequate reserves have been
established on the Company's books

                                        2
<PAGE>

and records in accordance with U.S. generally accepted accounting principles,
consistently applied;

                (e)     carriers', warehousemen's, mechanics', materialmen's,
repairmen's and other like Liens imposed by law, arising in the ordinary course
of business and securing obligations that are not overdue by more than 30 days
or that are being contested in good faith and by appropriate proceedings;

                (f)     pledges and deposits made in the ordinary course of
business in compliance with workers' compensation, unemployment insurance and
other social security laws or regulations;

                (g)     deposits to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in each case in the ordinary
course of business; and

                (h)     easements, zoning restrictions, rights-of-way and
similar encumbrances on real property imposed by law or arising in the ordinary
course of business that do not secure any monetary obligations and do not
materially detract from the value of the affected property or interfere with the
ordinary conduct of business of the Company or any of its Subsidiaries.

                "PERSON" means an individual, corporation, partnership, limited
liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental
authority or any other form of entity not specifically listed herein.

                "PURCHASE AGREEMENT" shall mean the Purchase Agreement, dated as
of March 2, 2007, and as that agreement may be amended from time to time, by and
among the Company and the Investors.

                "QUALIFIED FINANCING" means a private placement by the Company
of its equity or equity inked securities to one or more accredited investors (at
least one or more of which are not Affiliates of the Company) pursuant to which
the Company receives gross proceeds of at least $3 million.

                "QUALIFIED FINANCING DOCUMENTS" means the definitive
documentation entered into by the Company and the investors in connection with
the Qualified Financing, including, without limitation, customary registration
rights provisions.

                "STATED MATURITY DATE" has the meaning set forth in the first
paragraph hereof.

                "SUBSIDIARY" of any Person means another Person, an amount of
the voting securities, other voting ownership or voting partnership interests of
which is sufficient to elect at least a majority of its Board of Directors or
other governing body (or, if there are no such voting interests, 50% or more of
the equity interests of which) is owned directly or indirectly by such first
Person.

                                      -3-

<PAGE>

        2.      PURCHASE AGREEMENT. This Note is one of the several 12%
Mandatorily Convertible Notes of the Company issued pursuant to the Purchase
Agreement. This Note is subject to the terms and conditions of, and entitled to
the benefit of, the provisions of the Purchase Agreement. This Note is
transferable and assignable to any Person to whom such transfer is permissible
under the Purchase Agreement and applicable law. The Company agrees to issue
from time to time a replacement Note in the form hereof to facilitate such
transfers and assignments. In addition, after delivery of an indemnity in form
and substance reasonably satisfactory to the Company, the Company also agrees to
promptly issue a replacement Note if this Note is lost, stolen, mutilated or
destroyed.

        3.      NO RIGHT OF PREPAYMENT OR REDEMPTION. This Note shall not be
prepayable or redeemable by the Company prior to the Stated Maturity Date.

        4.      AUTOMATIC CONVERSION.

                (a)     Neither this Note nor any portion of this Note shall be
convertible at any time unless and until a Mandatory Conversion Event shall have
occurred. Upon the occurrence of a Mandatory Conversion Event, all of the
principal amount of this Note and any accrued and unpaid interest due hereon
shall automatically and without any action on the part of the Holder convert on
a dollar-for-dollar basis, less a discount of 10%, into Conversion Securities.
If the Mandatory Conversion Event is the closing of a Company Sale, for purposes
of applying the discount, the Common Stock shall be valued at the per share
consideration paid for shares of Common Stock in the Company Sale. So, for
example, if the per share price for the Common Stock to be paid in the event of
a Company Sale is $2.00, the Note would convert into shares of Common Stock at a
conversion price of $1.80. The date on which the Mandatory Conversion Event
occurs is hereinafter referred to as the "Mandatory Conversion Date." The
Company shall notify the Holder at least five Business Days prior to the
expected Mandatory Conversion Date. The Holder shall keep such notice
confidential and shall not effect any transaction in securities of the Company
from and after receipt of the Company's notice and until such transactions are
again permitted pursuant to the Qualified Financing Documents.

                (b)     No later than the Business Day immediately prior to the
Mandatory Conversion Date, the Holder of this Note shall deliver to the Company
(i) this Note (or, in lieu thereof, an appropriate lost security affidavit in
the event this Note shall have been lost or destroyed, together with a customary
indemnity agreement) to the Company at its principal office (or such other
office or agency of the Company as the Company may designate by notice in
writing to the Holder), together with a statement of the name or names (with
address) in which the certificate or certificates for the Conversion Securities
issuable upon such conversion shall be issued and (ii) to the extent applicable,
executed counterparts of the Qualified Financing Documents executed by the
investors in the Qualified Financing. Promptly following the Mandatory
Conversion Date and the surrender of this Note (or, in lieu thereof, delivery of
an appropriate lost security affidavit in the event this Note shall have been
lost or destroyed, together with a customary indemnity agreement) and such
counterparts as aforesaid, the Company shall issue and deliver, or cause to be
issued and delivered, to the Holder, registered in such name or names as the
Holder may direct in writing, certificates representing the Conversion
Securities into which this Note has been converted. The conversion shall be
deemed to have been effected, as of the close of business on the Mandatory
Conversion Date, and at such time,

                                      -4-

<PAGE>

the rights of the Holder shall cease with respect to this Note, and the Person
or Persons in whose name or names any Conversion Securities shall be issuable
upon such conversion shall be deemed to have become the holder or holders of
record of such Conversion Securities.

                (c)     No fractional interest in any Conversion Security shall
be issued upon any conversion of this Note. If any fractional interest would,
except for the provisions of the first sentence of this Section 4(c), be
delivered upon such conversion, such fractional interest shall be rounded down
to nearest whole number or amount, as applicable.

        5.      COVENANTS.

                (a)     So long as any amount due under this Note is outstanding
and until the earlier of (i) the indefeasible payment in full of all amounts
payable by the Company hereunder and (ii) the conversion of this Note:

                (i)     The Company shall and shall cause each of its
Subsidiaries to (A) carry on and conduct its business in substantially the same
manner and in substantially the same fields of enterprise as it is presently
conducting, (B) do all things necessary to remain duly organized, validly
existing, and in good standing as a domestic corporation under the laws of its
state of incorporation and (C) maintain all requisite authority to conduct its
business in those jurisdictions in which its business is conducted.

                (ii)    The Company shall promptly notify the Holder of the
occurrence of any Event of Default or any event which, with the giving of
notice, the lapse of time or both would constitute an Event of Default, which
notice shall include a written statement as to such occurrence, specifying the
nature thereof and the action (if any) which is proposed to be taken with
respect thereto.

                (iii)   The Company shall and shall cause each Subsidiary to pay
when due all taxes, assessments and governmental charges and levies upon it or
its income, profits or property, except those that are being contested in good
faith by appropriate proceedings and with respect to which adequate reserves
have been set aside.

                (iv)    The Company shall and shall cause each Subsidiary to use
commercially reasonable efforts to do all things necessary to maintain,
preserve, protect and keep its properties in good repair, working order and
condition and use commercially reasonable efforts to make all necessary and
proper repairs, renewals and replacements so that its business carried on in
connection therewith may be properly conducted.

                (b)     So long as any amount due under this Note is outstanding
and until the earlier of (i) the indefeasible payment in full of all amounts
payable by the Company hereunder and (ii) the conversion of this Note, without
the prior written consent of the Majority Holders (for purposes of this Section
5(b), any Company Notes held by any employee, director or officer of the Company
or any Subsidiary shall not be deemed to be outstanding):

                                      -5-

<PAGE>

                (i)     The Company shall not and shall cause each Subsidiary
not to create, incur, assume or suffer to exist any Lien upon any of its
property, whether now owned or hereafter acquired other than Permitted Liens.
The Company shall not, and shall cause each Subsidiary not to, be bound by any
agreement which limits the ability of the Company or any Subsidiary to grant
Liens.

                (ii)    The Company shall not, and shall cause each of its
Subsidiaries not to, directly or indirectly, declare or pay any dividends on
account of any shares of any class or series of its capital stock now or
hereafter outstanding, or set aside or otherwise deposit or invest any sums for
such purpose, or redeem, retire, defease, purchase or otherwise acquire any
shares of any class of its capital stock (or set aside or otherwise deposit or
invest any sums for such purpose) for any consideration or apply or set apart
any sum, or make any other distribution (by reduction of capital or otherwise)
in respect of any such shares or pay any interest, premium if any, or principal
of any Indebtedness or redeem, retire, defease, repurchase or otherwise acquire
any Indebtedness (or set aside or otherwise deposit or invest any sums for such
purpose) for any consideration or apply or set apart any sum, or make any other
payment in respect thereof or agree to do any of the foregoing (each of the
foregoing is herein called a "RESTRICTED PAYMENT"); provided, that (i) the
Company may make payments of interest, premium if any, and principal of the
Notes in accordance with the terms hereof, (ii) provided that no Event of
Default or event which, with the giving of notice, the lapse of time or both
would constitute an Event of Default has occurred and is continuing, the Company
and its Subsidiaries may make regularly scheduled payments of interest and
principal of any Permitted Indebtedness, (iv) any Subsidiary directly or
indirectly wholly owned by the Company may pay dividends on its capital stock
and (v) the Company may repurchase capital stock from a former employee in
connection with the termination or other departure of such employee, strictly in
accordance with the terms of any agreement entered into with such employee,
provided that (A) such repurchase is approved by a majority of the Board, (B)
payments permitted under this clause (v) shall not exceed Five Hundred Thousand
United States Dollars ($500,000) in the aggregate, and (C) no such payment may
be made if an Event of Default or an event which, with the giving of notice, the
lapse of time or both would constitute an Event of Default has occurred and is
continuing or would result from such payment.

        6.      EVENT OF DEFAULT. The occurrence of any of following events
shall constitute an "EVENT OF DEFAULT" hereunder:

                (a)     the failure of the Company to make any payment of
principal on this Note when due, whether at maturity, upon acceleration or
otherwise;

                (b)     the failure of the Company to make any payment of
interest on this Note when due, whether at maturity, upon acceleration or
otherwise, and such failure continues for more than thirty (30) days;

                                      -6-

<PAGE>

                (c)     the Company and/or its Subsidiaries fail to make a
required payment or payments on Indebtedness of Five Hundred Thousand United
States Dollars ($500,000) or more in aggregate principal amount and such failure
continues for more than ten (10) days;

                (d)     there shall have occurred an acceleration of the stated
maturity of any Indebtedness of the Company or its Subsidiaries of Five Hundred
Thousand United States Dollars ($500,000) or more in aggregate principal amount
(which acceleration is not rescinded, annulled or otherwise cured within ten
(10) days of receipt by the Company or a Subsidiary of notice of such
acceleration);

                (e)     the Company makes an assignment for the benefit of
creditors or admits in writing its inability to pay its debts generally as they
become due; or an order, judgment or decree is entered adjudicating the Company
as bankrupt or insolvent; or any order for relief with respect to the Company is
entered under title 11 of the United States Code or any other bankruptcy or
insolvency law; or the Company petitions or applies to any tribunal for the
appointment of a custodian, trustee, receiver or liquidator of the Company or of
any substantial part of the assets of the Company, or commences any proceeding
relating to it under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, dissolution or liquidation law of any jurisdiction; or any
such petition or application is filed, or any such proceeding is commenced,
against the Company and either (i) the Company by any act indicates its approval
thereof, consents thereto or acquiescence therein or (ii) such petition
application or proceeding is not dismissed within sixty (60) days;

                (f)     a final, non-appealable judgment which, in the aggregate
with other outstanding final judgments against the Company and its Subsidiaries,
exceeds Five Hundred Thousand United States Dollars ($500,000) shall be rendered
against the Company or a Subsidiary and within sixty (60) days after entry
thereof, such judgment is not discharged or execution thereof stayed pending
appeal, or within sixty (60) days after the expiration of such stay, such
judgment is not discharged; provided, however, that a judgment that provides for
the payment of royalties subsequent to the date of the judgment shall be deemed
to be discharged so long as the Company or the Subsidiary affected thereby is in
compliance with the terms of such judgment;

                (g)     the Company is in breach of the requirements of Section
5(b) hereof; or

                (h)     if any representation or statement of fact made in any
Transaction Document by the Company proves to have been false in any material
respect when made or furnished.

                Upon the occurrence of any such Event of Default all unpaid
principal and accrued interest under this Note shall become immediately due and
payable (A) upon election of the Holder, with respect to (a) through (d) and (f)
through (h), and (B) automatically, with respect to (e). Upon the occurrence of
any Event of Default, the Holder may, in addition to declaring all amounts due
hereunder to be immediately due and payable, pursue any available remedy,
whether at law or in equity. If an Event of Default occurs, the Company shall
pay to the

                                      -7-

<PAGE>

Holder the reasonable attorneys' fees and disbursements and all other reasonable
out-of-pocket costs incurred by the Holder in order to collect amounts due and
owing under this Note or otherwise to enforce the Holder's rights and remedies
hereunder and under the other Transaction Documents.

        7.      NO WAIVER. To the extent permitted by applicable law, no delay
or omission on the part of the Holder in exercising any right under this Note
shall operate as a waiver of such right or of any other right of the Holder, nor
shall any delay, omission or waiver on any one occasion be deemed a bar to or
waiver of the same or any other right on any future occasion.

        8.      AMENDMENTS IN WRITING. Any term of this Note may be amended or
waived upon the written consent of the Company and the holders of Company Notes
representing at least 50% of the principal amount of Company Notes then
outstanding (the "MAJORITY HOLDERS"); PROVIDED, that (x) any such amendment or
waiver must apply to all outstanding Company Notes; and (y) without the consent
of the Holder hereof, no amendment or waiver shall (i) change the Stated
Maturity Date of this Note, (ii) reduce the principal amount of this Note or the
interest rate due hereon or (iii) change the place of payment of this Note. No
such waiver or consent on any one instance shall be construed to be a continuing
waiver or a waiver in any other instance unless it expressly so provides.

        9.      WAIVERS. The Company hereby forever waives presentment, demand,
presentment for payment, protest, notice of protest, notice of dishonor of this
Note and all other demands and notices in connection with the delivery,
acceptance, performance and enforcement of this Note.

        10.     WAIVER OF JURY TRIAL. THE COMPANY, AND BY ACCEPTING THIS NOTE
THE HOLDER, EACH HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION ARISING OUT OF OR BASED UPON THIS NOTE OR ANY CONTEMPLATED
TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THE
COMPANY AND THE HOLDER EACH HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

                                      -8-

<PAGE>

        11.     GOVERNING LAW; CONSENT TO JURISDICTION. This Note shall be
governed by and construed under the law of the State of New York, without giving
effect to the conflicts of law principles thereof. The Company and, by accepting
this Note, the Holder, each irrevocably submits to the exclusive jurisdiction of
the courts of the State of New York located in New York County and the United
States District Court for the Southern District of New York for the purpose of
any suit, action, proceeding or judgment relating to or arising out of this Note
and the transactions contemplated hereby. Service of process in connection with
any such suit, action or proceeding may be served on each party hereto anywhere
in the world by the same methods as are specified for the giving of notices
under this Note. The Company and, by accepting this Note, the Holder, each
irrevocably consents to the jurisdiction of any such court in any such suit,
action or proceeding and to the laying of venue in such court. The Company and,
by accepting this Note, the Holder, each irrevocably waives any objection to the
laying of venue of any such suit, action or proceeding brought in such courts
and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum.

        12.     COSTS. If action is instituted to collect on this Note, the
Company promises to pay all reasonable costs and expenses, including reasonable
attorney's fees, incurred in connection with such action.

        13.     NOTICES. All notices hereunder shall be given in writing and
shall be deemed delivered when received by the other party hereto at the address
set forth in the Purchase Agreement or at such other address as may be specified
by such party from time to time in accordance with the Purchase Agreement.

        14.     SUCCESSORS AND ASSIGNS. This Note shall be binding upon the
successors or assigns of the Company and shall inure to the benefit of the
successors and assigns of the Holder.

                  [Remainder of Page Intentionally Left Blank]

                                      -9-

<PAGE>

        IN WITNESS WHEREOF, the Company has caused this 12% Mandatorily
Convertible Note to be signed in its name, effective as of the date first above
written.

                                            NARROWSTEP INC.

                                            By:
                                                --------------------------------
                                                Name:  Lisa VanPatten
                                                Title: Chief Financial Officer

                                      -10-

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