Document:

kl03016_ex10-3.htm

    
      

    

    Exhibit
10.3

    

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THESE
SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO
THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A
THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A
TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY
APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE,
FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION,
IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY.  HEDGING
TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE U.S. SECURITIES ACT.

     

    

     

     

    8%
CONVERTIBLE PROMISSORY NOTE

     

     

    GEORGE
FOREMAN ENTERPRISES, INC.

    

     

     

    DUE
__________, 2010

     

    

    
      	
              Original
      Issue Date:  __________, 2008

            	
              US$__________

            

    

    

    This
Convertible Promissory Note is due __________, 2010 and is one of a series of
duly authorized and issued convertible promissory notes of George Foreman
Enterprises, Inc., a Delaware corporation (the “Company”), designated
its 8% Convertible Promissory Notes (the “Note” or the
“Notes”).  This Note is issued to
________________________________________ (together with its permitted successors
and assigns, the “Holder”) in
accordance with exemptions from registration under the Securities Act of 1933,
as amended (the “Securities Act”),
pursuant to a Securities Purchase Agreement, dated __________, 2008 (the “Securities Purchase
Agreement”) between the Company and the Holder.  Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in
the Securities Purchase Agreement.

     

    Article
I

     

    Section
1.01                                 Principal and
Interest.  For value received, the Company hereby promises to
pay to the order of the Holder, in lawful money of the United States of America
and in immediately available funds the principal sum of ____________________
Dollars ($__________) on the earlier of (i) __________, 2010 (the “Maturity Date”) or
(ii) an Event of Default (as defined in Section 3.01).

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
 

    (a) Interest
shall be payable monthly commencing 30 days following the Original Issue Date
and shall accrue on the unpaid principal balance of the Note at the rate of
eight percent (8%) per year (compounded monthly) commencing from the Original
Issue Date until the Maturity Date.  Interest shall be calculated on
the basis of a 360-day year and actual calendar days elapsed.

     

    (b) On the
Maturity Date, the entire unpaid principal amount and all accrued and unpaid
interest shall be paid to the Holder, unless this Note is converted in
accordance with Section 1.02 herein.

     

    (c) The
Company may prepay the principal amount of this Note without the prior written
consent of the Holder.  In the event the Company prepays the principal
amount of this Note, the Company shall pay the total principal amount
outstanding plus a premium of (i) ten percent of the outstanding principal
amount if the prepayment occurs during the twelve month period following the
Original Issue Date (the “Initial Twelve Month Period”); or (ii) twenty percent
of the outstanding principal amount if the prepayment occurs doing the period
following the Initial Twelve Month Period and prior to the Maturity
Date.  The Company shall give the Holder at least ten (10) days
advance written notice prior to such prepayment.

     

    Section 1.02    Conversion.

     

    (a) Optional
Conversion.  From and after the Original Issue Date, the Holder
shall be entitled, at its option, to convert, at any time and from time to time,
until payment in full of this Note, all or any part of the principal amount of
the Note, plus accrued and unpaid interest thereon, into units (“Units”) of the
Company’s securities, at a price (the “Conversion Price”) of
$2.50 per Unit, subject to adjustment.  Each Unit shall consist of one
share (each, a “Conversion Share”) of
the Company’s common stock, par value $0.01 per share (the “Common Stock”), and
one common stock purchase warrant (the “Warrants”).  Each
Warrant shall entitle the holder to purchase one share of Common Stock (the
“Warrant
Shares”) at an exercise price (the “Exercise Price”) of
$3.00 per share, subject to adjustment, and shall be exercisable for a period of
five years commencing on the original Issue Date of this Note.  No
fraction of Units or scrip representing fractions of Units will be issued on
conversion, but the number of Units issuable shall be rounded to the nearest
whole Unit.  The number of Units issuable upon a conversion hereunder
shall be determined by the quotient obtained by dividing (x) the outstanding
principal amount of this Note, plus accrued and unpaid interest thereon, to be
converted as set forth in the applicable Conversion Notice by (y) the Conversion
Price.  To convert this Note, the Holder hereof shall deliver written
notice thereof, substantially in the form of Exhibit A to this Note, with
appropriate insertions (the “Conversion Notice”),
to the Company at its address as set forth herein.  The date upon
which the conversion shall be effective (the “Conversion Date”)
shall be deemed to be the date set forth in the Conversion
Notice.  Except as otherwise provided herein, the Company shall not
have the right to object to the conversion or the calculation of the applicable
conversion price, absent manifest error.  Any conversion of any
portion of the Note to Units shall be deemed to be a pre-payment of principal
plus accrued and unpaid interest, without any penalty, and shall be credited
against any future payments of principal and interest in the order that such
payments become due and payable.

     

     

     

    
      
         

      

      
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    (b) Mandatory
Conversion.  Simultaneously with the closing of a company
financing in the form of a private placement of units (the “PPO”) in the amount
of at least $3,000,000 (the “Minimum PPO Amount”), including the proceeds
derived by the Company from the issuance of the Notes, this Note will
automatically convert as to all unpaid principal, plus accrued interest, if any,
into Units at the Conversion Price.  The PPO will involve an offering
of Company units which may be offered pursuant to Regulation D and/or Regulation
S of the Securities Act and any and all applicable state securities
laws.  Each PPO unit will consist of one share of Common Stock and one
common stock purchase warrant to purchase one-half of a share of Common Stock
(the “Investor Warrant”).  Each two Investor Warrants will entitle the
holder to purchase one share of Common Stock at a price per share to be
determined and will be exercisable for a period of five years from the PPO
closing date.  In addition, each Investor Warrant will contain
standard anti-dilution protection from stock splits, stock dividends and stock
contributions, will provide for weighted average price protection and will
provide for “cashless exercise” to the extent that a registration statement
covering the resale of the shares underlying the Investor Warrant is not then in
effect.  As more fully described in the Securities Purchase Agreement,
piggyback registration rights will apply to resales of the shares of Common
Stock comprising part of the units issued in connection with the PPO, for shares
underlying the Investor Warrants, the Common Stock forming part of the Units
issuable upon conversion of the Notes, and the Common Stock issuable upon
exercise of the Warrants forming part of the Units issuable upon conversion of
the Notes.

     

    Section
1.03         Reservation of Common
Stock.  As set forth in Section 4(e) of the Securities Purchase
Agreement, the Company shall reserve and keep available out of its authorized
but unissued shares of Common Stock, solely for the purpose of effecting the
conversion of this Note and the exercise of the Warrants, that number of shares
of Common Stock equal to the sum of (i) the number of shares of Common Stock
into which the Note is convertible from time to time based upon the Conversion
Price, plus (ii) the number of shares of Common Stock for which the Warrants are
exercisable from time to time based upon the Exercise Price.

     

    Section
1.04          Absolute
Obligation/Ranking.  Except as expressly provided herein, no
provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, interest and
liquidated damages (if any) on, this Note at the time, place, and rate, and in
the coin or currency, herein prescribed.  This Note is a direct debt
obligation of the Company.  This Note ranks pari passu with all other
Notes now or hereinafter issued pursuant to the Securities Purchase
Agreement.

     

    Section
1.05           Paying Agent and
Registrar.  Initially, the Company will act as paying agent and
registrar.  The Company may change any paying agent, registrar, or
Company-registrar by giving the Holder not less than ten (10) business
days’ written notice of its election to do so, specifying the name, address,
telephone number and facsimile number of the paying agent or
registrar.  The Company may act in any such capacity.

     

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

     

     

     

    
      
         

      

      
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    Section
1.07            Investment
Representations. This Note has been issued subject to certain investment
representations of the original Holder set forth in the Securities Purchase
Agreement and may be transferred or exchanged only in compliance with the
Securities Purchase Agreement and applicable federal and state securities laws
and regulations.

     

    Section
1.08            Reliance on Note
Register.  Prior to due presentment to the Company for transfer
or conversion of this Note, the Company and any agent of the Company may treat
the person in whose name this Note is duly registered on the Note Register as
the owner hereof for the purpose of receiving payment as herein provided and for
all other purposes, whether or not this Note is overdue, and neither the Company
nor any such agent shall be affected by notice to the contrary.

     

    Section
1.09             In
addition to the rights and remedies given it by this Note, the Holder shall have
all those rights and remedies allowed by applicable laws.  The rights
and remedies of the Holder are cumulative and recourse to one or more right or
remedy shall not constitute a waiver of the others.

     

    Article
II

     

    Section
2.01             Amendments and Waiver of
Default.  The Note may not be amended without the consent of
the Holder.  Notwithstanding the above, without the consent of the
Holder, the Note may be amended to cure any ambiguity, defect or inconsistency
or to make any change that does not adversely affect the rights of the
Holder.

     

     

    Article
III

     

    Section
3.01             Events of
Default.  Each of the following events shall constitute a
default under this Note (each an “Event of
Default”):

     

    (a) failure
by the Company to pay principal amount or interest due hereunder within five (5)
days of the date such payment is due;

     

    (b) failure
by the Company’s transfer agent to issue Common Stock to the Holder within four
(4) business days of the Company’s receipt of the attached Conversion Notice
from Holder in accordance with the Securities Purchase Agreement;

     

    (c) failure
by the Company for ten (10) days after notice to it to comply with any of its
other agreements in the Note;

     

    (d) the
Company shall:  (1) make a general assignment for the benefit of
its creditors; (2) apply for or consent to the appointment of a receiver,
trustee, assignee, custodian, sequestrator, liquidator or similar official for
itself or any of its assets and properties; (3) commence a voluntary case
for relief as a debtor under the United States Bankruptcy Code; (4) file
with or otherwise submit to any governmental authority any petition, answer or
other document seeking:  (A) reorganization, (B) an
arrangement with creditors or (C) to take advantage of any other present or
future applicable law respecting bankruptcy, reorganization, insolvency,
readjustment of debts, relief of debtors, dissolution or liquidation;
(5) file or otherwise submit any answer or other document admitting or
failing to contest the material allegations of a petition or other document
filed or otherwise submitted against it in any

     

     

    
      
         

      

      
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    proceeding
under any such applicable law, or (6) be adjudicated a bankrupt or
insolvent by a court of competent jurisdiction;

     

    (e) any case,
proceeding or other action shall be commenced against the Company for the
purpose of effecting, or an order, judgment or decree shall be entered by any
court of competent jurisdiction approving (in whole or in part) anything
specified in Section 3.01(d) hereof, or any receiver, trustee, assignee,
custodian, sequestrator, liquidator or other official shall be appointed with
respect to the Company, or shall be appointed to take or shall otherwise acquire
possession or control of all or a substantial part of the assets and properties
of the Company, and any of the foregoing shall continue unstayed and in effect
for any period of sixty (60) days;

     

    (f) any
material obligation of the Company for the payment of borrowed money is not paid
when due or within any applicable grace period, or such obligation becomes or is
declared to be due and payable before the expressed maturity of the obligation,
or there shall have occurred an event that, with the giving of notice or lapse
of time, or both, would cause any such obligation to become, or allow any such
obligation to be declared to be, due and payable before the expressed maturity
date of the obligation;

     

    (g) a breach
by the Company of any material contract that would have a Material Adverse
Effect (as defined in the Securities Purchase Agreement);

     

    (h) any event
of default of the Company under any agreement, note, mortgage, security
agreement or other instrument evidencing or securing indebtedness that ranks
senior in priority to, or pari passu with, the obligations under this Note and
the Securities Purchase Agreement;

     

    (i) any
material breach by the Company of any of its representations or warranties under
the Securities Purchase Agreement; or

     

    (j) any
default, whether in whole or in part, shall occur in the due observance or
performance of any obligations or other covenants, terms or provisions to be
performed under this Note or the Securities Purchase Agreement which is not
cured by the Company within five (5) days after receipt of written notice
thereof.

     

    Section
3.02        If any
Event of Default occurs, the full principal amount of this Note, together with
interest and other amounts owing in respect thereof, to the date of acceleration
shall become, at the Holder’s election, immediately due and payable in
cash.  Commencing upon the occurrence of any Event of Default that
result in the eventual acceleration of this Note, the interest rate on this Note
shall accrue at the rate of 15% per annum, or such lower maximum amount of
interest permitted to be charged under applicable law.  All Notes for
which the full amount hereunder shall have been paid in accordance herewith
shall promptly be surrendered to or as directed by the Company.  The
Holder need not provide and the Company hereby waives any presentment, demand,
protest or other notice of any kind, and the Holder may immediately and without
expiration of any grace period enforce any and all of its rights and remedies
hereunder and all other remedies available to it under applicable
law.  Such declaration may be rescinded and annulled by the Holder at
any time prior to payment hereunder and the Holder

     

     

     

    
      
         

      

      
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    shall
have all rights as a Note holder until such time, if any, as the full payment
under this Section shall have been received by it.  No such rescission
or annulment shall affect any subsequent Event of Default or impair any right
consequent thereon.

     

    Article
IV

     

    Section
4.01         Negative
Covenants.  So long as this Note shall remain in effect and
until any outstanding principal and all accrued interest thereon and all fees
and all other expenses or amounts payable under this Note and the Securities
Purchase Agreement have been paid in full, unless the Holders, subject to
Section 8(p) of the Securities Purchase Agreement, shall otherwise consent in
writing, the Company shall not:

     

    (a) Organizational
Change    Directly or indirectly consummate any
merger, reorganization, restructuring, reverse stock split consolidation, sale
of all or substantially all of the Company’s assets or any similar transaction
or related transactions (each such transaction, an “Organizational Change”),
other than the PPO, unless prior to the consummation of an Organizational
Change, other than the PPO, the Company obtains the written consent, subject to
Section 8(p) of the Securities Purchase Agreement, of the Buyers that have
outstanding Notes.

     

    (b) Dividends and
Distributions.  In the case of the Company, declare or pay,
directly or indirectly, any dividend or make any other distribution (by
reduction of capital or otherwise), whether in cash, property, securities or a
combination thereof, with respect to any shares of its capital stock or directly
or indirectly redeem, purchase, retire or otherwise acquire for value any shares
of any class of its capital stock or set aside any amount for any such purpose;
provided, however, that the Company may

     

    (i) declare
and pay dividends consisting entirely of its common stock,

     

    (ii) repurchase
shares of its capital stock from its employees in connection with the
termination of such employees and

     

    (iii) make
distributions consisting entirely of its common stock in connection with stock
splits of its capital stock.

     

    (c) Limitation on Certain
Payments and Prepayments.

     

    Optionally
prepay, repurchase or redeem or otherwise defease or segregate funds with
respect to any indebtedness of the Company, other than for obligations incurred
in the ordinary course of business (including for working capital and similar
facilities), senior indebtedness existing on the date hereof and set forth in
Schedule A attached hereto, indebtedness under this Note or the Securities
Purchase Agreement.

     

    Article
V

     

    Section
5.01       Re-issuance of
Note.  When the Holder elects to convert a part of the Note,
then the Company shall reissue a new Note in the same form as this Note to
reflect the new principal amount and the Holder shall return the Note to the
Company for cancellation.

     

     

    
      
         

      

      
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    Article
VI

     

    Section
6.01       Anti-dilution.  Adjustment of Conversion
Price.  The Conversion Price shall be adjusted from time to
time as follows:

     

    (a) Adjustment of Conversion
Price and Number of Shares upon Issuance of Common Stock.

     

    (i) If at any
time after the Original Issue Date through the earlier of (A) the first
anniversary of the Original Issue Date; (B) payment in full on this Note; or (C)
the date of full conversion of this Note, the Company issues or sells, or is
deemed to have issued or sold, any shares of Common Stock (other than the
conversion/exchange of rights by George Forman and/or George Foreman
Productions, Inc. under the Investor Rights Agreement and/or Registration Rights
Agreement filed by the Company with the SEC on Form 8-K on August 18, 2005,
shares of Common Stock which are issued or deemed to have been issued by the
Company in connection with an Approved Stock Plan (as defined herein) or upon
issuance, exercise or conversion of the Other Securities (as defined herein))
for a consideration per share less than a price (the “Applicable Price”)
equal to the Conversion Price in effect immediately prior to such issuance or
sale, then immediately after such issue or sale the Conversion Price then in
effect shall be reduced to an amount equal to such consideration per share,
provided that in no event shall the Conversion Price be reduced below $0.01, and
the number of shares of Common Stock issuable upon conversion shall be subject
to a corresponding adjustment.

     

    (ii) If any
time after the first anniversary of the Original Issue Date and prior to payment
in full on this Note or full conversion of this Note, the Company issues or
sells, or is deemed to have issued or sold, any shares of Common Stock (other
than the conversion/exchange of rights by George Forman and/or George Foreman
Productions, Inc. under the Investor Rights Agreement and/or Registration Rights
Agreement filed by the Company with the SEC on Form 8-K on August 18, 2005,
shares of Common Stock which are issued or deemed to have been issued by the
Company in connection with an Approved Stock Plan (as defined herein) or upon
issuance, exercise or conversion of the Other Securities (as defined herein))
for a consideration per share less than a price (the “Applicable Price”) equal
to the Conversion Price in effect immediately prior to such issuance or sale,
then immediately after such issue or sale the Conversion Price then in effect
shall be reduced to an amount based upon the weighted average formula (the
“Weighted Average Formula”) set forth below in Section 6.01(g) and the number of
shares issuable upon conversion shall be subject to a corresponding
adjustment.

     

    (b) Effect on Conversion Price
of Certain Events.  For purposes of determining the adjusted
Conversion Price under Section 6.01(a)(i) and (ii) above, the following shall be
applicable:

     

    (i) Issuance of
Options.  If after the date hereof, the Company in any manner
grants any rights, warrants or options to subscribe for or purchase Common Stock
or convertible securities (“Options”), other than
Other Securities issued or deemed to have been issued in connection with any
Approved Stock Plan, and the lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon conversion
or exchange of any convertible securities issuable upon exercise of any such
Option is less than the Conversion

     

     

    
      
         

      

      
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    Price
then in effect, then such share of Common Stock shall be deemed to be
outstanding and to have been issued and sold by the Company at the time of the
granting or sale of such Option for such price per share.  For
purposes of this Section 6.01(b)(i), the lowest price per share for which one
share of Common Stock is issuable upon exercise of such Options or upon
conversion or exchange of such convertible securities shall be equal to the sum
of the lowest amounts of consideration (if any) received or receivable by the
Company with respect to any one share of Common Stock upon the granting or sale
of the Option, upon exercise of the Option or upon conversion or exchange of any
other convertible security other than this Note issuable upon exercise of such
Option.  No further adjustment of the Conversion Price shall be made
upon the actual issuance of such Common Stock or of such convertible securities
upon the exercise of such Options or upon the actual issuance of such Common
Stock upon conversion or exchange of such convertible securities.

     

    (ii) Issuance of Convertible
Securities.  If the Company in any manner issues or sells any
convertible securities after the Original Issue Date, other than Other
Securities issued or deemed to have been issued in connection with an Approved
Stock Plan, and the lowest price per share for which one share of Common Stock
is issuable upon the conversion or exchange thereof is less than the Conversion
Price then in effect, then such share of Common Stock shall be deemed to be
outstanding and to have been issued and sold by the Company at the time of the
issuance or sale of such convertible securities for such price per
share.  For the purposes of this Section 6.01(b)(ii), the lowest
price per share for which one share of Common Stock is issuable upon such
conversion or exchange shall be equal to the sum of the lowest amounts of
consideration (if any) received or receivable by the Company with respect to one
share of Common Stock upon the issuance or sale of the convertible security and
upon conversion or exchange of such convertible security.  No further
adjustment of the Conversion Price shall be made upon the actual issuance of
such Common Stock upon conversion or exchange of such convertible securities,
and if any such issue or sale of such convertible securities is made upon
exercise of any Options for which adjustment of the Conversion Price had been or
are to be made pursuant to other provisions of this Section 6.01(b), no further
adjustment of the Conversion Price shall be made by reason of such issue or
sale.

     

    (iii) Change in Option Price or
Rate of Conversion.  If the purchase price provided for in any
Options, the additional consideration, if any, payable upon the issue,
conversion or exchange of any convertible securities, or the rate at which any
convertible securities are convertible into or exchangeable for Common Stock
changes at any time, the Conversion Price in effect at the time of such change
shall be adjusted to take into consideration the Conversion Price which would
have been in effect at such time had such Options or convertible securities
provided for such changed purchase price, additional consideration or changed
conversion rate, as the case may be, at the time initially granted, issued or
sold and the number of shares of Common Stock issuable upon conversion of this
Note shall be correspondingly readjusted as shall the number shares issuable
upon conversion of the Note due to other Conversion Price changes required by
this Article 6.  For purposes of this Section 6.01(b)(iii), if the
terms of any Option or convertible security that was outstanding as of the
Original Issue Date are changed in the manner described in the immediately
preceding sentence, then such Option or convertible security and the Common
Stock deemed issuable upon exercise, conversion or exchange thereof shall be
deemed to have been issued as of the date of such change. 

     

     

    
      
         

      

      
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    No
adjustment pursuant to this Section 6.01(b) shall be made if such adjustment
would result in an increase of the Conversion Price then in effect.

     

    (c) Effect on Conversion Price
of Certain Events.  For purposes of determining the adjusted
Conversion Price under Sections 6.01(a) and 6.01(b), the following shall be
applicable:

     

    (i) Calculation of Consideration
Received.  If any Common Stock, Options or convertible
securities are issued or sold or deemed to have been issued or sold for cash,
the consideration received therefore will be deemed to be the net amount
received by the Company therefore.  If any Common Stock, Options or
convertible securities are issued or sold for a consideration other than cash,
the amount of such consideration received by the Company will be the fair value
of such consideration, except where such consideration consists of marketable
securities, in which case the amount of consideration received by the Company
will be the market price of such securities on the date of receipt of such
securities (measured by the closing sale price of such securities on the
Over-the-Counter Bulletin Board or its principal trading market).  The
fair value of any consideration other than cash or securities will be determined
jointly by the Company and the holders of the principal amount of the Notes then
outstanding.  If such parties are unable to reach agreement within
ten (10) days after the occurrence of an event requiring valuation (the
“Valuation
Event”), the fair value of such consideration will be determined within
five (5) Business Days after the tenth (10th) day
following the Valuation Event by an independent, reputable appraiser jointly
selected by the Company and the holders of the principal amount of the Notes
then outstanding.  The determination of such appraiser shall be final
and binding upon all parties and the fees and expenses of such appraiser shall
be borne by the Company.

     

    (ii) Integrated
Transactions.  In case any Option is issued in connection with
the issue or sale of other securities of the Company, together comprising one
integrated transaction in which no specific consideration is allocated to such
Options by the parties thereto, the Options will be deemed to have been issued
for a consideration of $0.001.

     

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

     

    (iv) Record
Date.  If the Company takes a record of the holders of Common
Stock for the purpose of entitling them (1) to receive a dividend or other
distribution payable in Common Stock, Options or in convertible securities or
(2) to subscribe for or purchase Common Stock, Options or convertible
securities, then such record date will be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase, as the case may
be.

     

    (d) Adjustment of Conversion
Price upon Subdivision or Combination of Common Stock.  If the
Company at any time after the date of issuance of this Note subdivides (by any
stock split, stock dividend, recapitalization or otherwise) one or more classes
of its outstanding shares of Common Stock into a greater number of shares, the
Conversion Price in effect immediately prior to such subdivision will be
proportionately reduced.  If the Company at any

     

     

    
      
         

      

      
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    time
after the date of issuance of this Note combines (by combination, reverse stock
split or otherwise) one or more classes of its outstanding shares of Common
Stock into a smaller number of shares, the Conversion Price in effect
immediately prior to such combination will be proportionately
increased.  Any adjustment under this Section 6.01(d) shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

     

    (e) Distribution of
Assets.  If the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of
Common Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a “Distribution”), at
any time after the issuance of this Note, then, in each such case the Conversion
Price in effect immediately prior to the close of business on the record date
fixed for the determination of holders of Common Stock entitled to receive the
Distribution shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Conversion Price by a
fraction of which (A) the numerator shall be the closing bid price of the Common
Stock on the trading day immediately preceding such record date minus the value
of the Distribution (as determined in good faith by the Company’s Board of
Directors) applicable to one share of Common Stock, and (B) the denominator
shall be the closing bid price of the Common Stock on the trading day
immediately preceding such record date.

     

    (f) Certain
Events.  If any event occurs of the type contemplated by the
provisions of this Section 6.01 but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the
Company’s Board of Directors will make an appropriate adjustment in the
Conversion Price or the number of shares issuable upon conversion so as to
protect the rights of the holders of the Note; provided, except as set forth in
Section 6.01(d), that no such adjustment pursuant to this Section 6.01(f) will
increase the Conversion Price as otherwise determined pursuant to this Section
6.01.

     

    (i) Notices.

     

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

     

    2) The
Company will give written notice to the holder of this Note at least ten (10)
days prior to the date on which the Company closes its books or takes a record
(A) with respect to any dividend or distribution upon the Common Stock,
(B) with respect to any pro rata subscription offer to holders of Common
Stock or (C) for determining rights to vote with respect to any dissolution
or liquidation, provided that such information shall be made known to the public
prior to or in conjunction with such notice being provided to such
holder.

     

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (ii) Definitions.

     

    1) “Approved Stock Plan”
means any employee benefit plan, agreement or arrangement approved by the Board
of Directors of the Company, or any successor thereto, pursuant to which the
Company’s securities may be issued to any employee, officer or director of or
consultant to the Company or any subsidiary for services provided to the
Company.

     

    2) “Other Securities”
means (i) those options and warrants of the Company issued prior to, and
outstanding on, the Original Issue Date, (ii) the shares of Common Stock
issuable on exercise of such options and warrants, provided such options and
warrants are not amended after the Original Issue Date, and (iii) the
shares of Common Stock issuable upon exercise of the Warrants or conversion of
this Note.

     

    (g) Weighted Conversion
Formula.  Pursuant to the Weighted Average Formula, the
Conversion Price in effect immediately prior to a triggering issue of Common
Stock, shall be reduced, concurrently with such issue, to a price (calculated to
the nearest cent) determined by multiplying such Conversion Price by a fraction,
(A) the numerator of which shall be (1) the number of shares of Common Stock
outstanding immediately prior to such issue plus (2) the number of shares of
Common Stock which the aggregate consideration received or to be received by the
Company for the total number of additional shares of Common Stock so issued
would purchase at such Conversion Price; and (B) the denominator of which shall
be the number of shares of Common Stock outstanding immediately prior to such
issue plus the number of such additional shares of Common Stock so issued;
provided that, (i) for the purpose of this Section 6.01(g), all shares of Common
Stock issuable upon conversion or exchange of convertible securities outstanding
immediately prior to such issue shall be deemed to be outstanding, and (ii) the
number of shares of Common Stock deemed issuable upon conversion or exchange of
such outstanding convertible securities shall be determined without giving
effect to any adjustments to the conversion or exchange price or conversion or
exchange rate of such convertible securities resulting from the issuance of
additional shares of Common Stock that is the subject of this
calculation.  The provisions of this Section 6.01(g) shall not operate
to increase the Conversion Price.

     

     

    Article
VII

     

    Section
7.01                                 Notice.  Notices
regarding this Note shall be sent to the parties at the following addresses,
unless a party notifies the other parties, in writing, of a change of
address:

     

     

     

     

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

     

    
      	
              If
      to the Company, to:

            	
              George
      Foreman Enterprises, Inc.

            
	 
      	
              100
      N. Wilkes-Barre Blvd., 4th
      Floor

            
	 
      	
              Wilkes
      Barre, PA 18702

            
	 
      	
              Attention:  Richard
      Huffsmith, General Counsel

            
	 
      	
              Telephone:  (570)
      822-6277

            
	 
      	
              Facsimile:  (570)
      820-7014

            
	 
      	 
      
	
              With
      a copy to:

            	
              Gottbetter
      & Partners, LLP

            
	 
      	
              488
      Madison Avenue, 12th
      Floor

            
	 
      	
              New
      York, New York 10022

            
	 
      	
              Attention:  Scott
      Rapfogel

            
	 
      	
              Telephone:  212-400-6900

            
	 
      	
              Facsimile:  212-400-6901

            
	 
      	 
      
	
              If
      to the Holder:

            	
              At
      the address set forth in the Securities Purchase
  Agreement

            

    

    

    Section
7.02       Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Note shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York,
without regard to the principles of conflicts of law thereof.  Each
party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by any of the
Transaction Documents (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents) shall be
commenced in the state and federal courts sitting in the City of New York,
Borough of Manhattan (the “New York Courts”).  Each party hereto
hereby irrevocably submits to the exclusive jurisdiction of the New York Courts
for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, or such
New York Courts are improper or inconvenient venue for such
proceeding.  Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Note and agrees that such service shall
constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any legal proceeding arising out of or
relating to this Note or the transactions contemplated hereby.  If
either party shall commence an action or proceeding to enforce any provisions of
this Note, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its attorney’s fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
action or proceeding.

     

    Section
7.03        Severability.  The
invalidity of any of the provisions of this Note shall not invalidate or
otherwise affect any of the other provisions of this Note, which shall remain in
full force and effect.

     

     

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

     

    Section
7.04        Entire Agreement and
Amendments.  This Note, together with the Securities Purchase
Agreement, Warrant to Purchase Common Stock and Investor Questionnaire
represents the entire agreement between the parties hereto with respect to the
subject matter hereof and there are no representations, warranties or
commitments, except as set forth herein.  This Note may be amended
only by an instrument in writing executed by the parties hereto.

     

    

    [Remainder
of Page Intentionally Left Blank]

     

    
 

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
 

    IN WITNESS WHEREOF, with the
intent to be legally bound hereby, the Company as executed this Note as of the
date first written above.

     

    
      	 
      	
              GEORGE
      FORMAN ENTERPRISES, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:                                                                

            
	 
      	
              Name:

            
	 
      	
              Title:

            

    

    

    

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
A

     

     

    NOTICE OF
CONVERSION

     

     

    (To
be executed by the Holder in order to convert the Note)

     

    
      	
              TO:

            	 
      

    

    

    The
undersigned hereby irrevocably elects to convert $ of the principal amount of
the above Note into Units of George Foreman Enterprises, Inc., according to the
conditions stated therein, as of the Conversion Date written below.

    

    
      	
              Conversion
      Date:

            	 _____________________________________________________________
      
	 	_____________________________________________________________ 
	
              Applicable
      Conversion Price:

            	_____________________________________________________________ 
      
	 	_____________________________________________________________  
	
              Signature:

            	_____________________________________________________________  
      
	 	_____________________________________________________________  
	
              Name:

            	_____________________________________________________________ 
      
	 	_____________________________________________________________  
	
              Address:

            	_____________________________________________________________  
      
	 	 
	
              Amount
      to be converted:

            	
              $____________________________________________________________                                                                                      

            
	 	 
	
              Amount
      of Note unconverted:

            	
              $____________________________________________________________                                                                                      

            
	 	 
	
              Conversion
      Price per Unit:

            	
              $____________________________________________________________                                                                                      

            
	 	 
	
              Interest
      on the Principal being converted shall be paid as

            	_____________________________________________________________  
      
	 	 
	
              Number
      of shares of Common Stock and Warrants to be issued including as payment
      of interest, if applicable:

            	_____________________________________________________________  
      
	 	 
	
              Please
      issue the shares of Common Stock and Warrants in the following name and to
      the following address:

            	_____________________________________________________________ 
      
	 	 
	
              Issue
      to the following account of the Holder:

            	_____________________________________________________________  
      
	 	 
	
              Authorized
      Signature:

            	_____________________________________________________________  
      
	 	 
	
              Name:

            	_____________________________________________________________  
      
	 	 
	
              Title:

            	_____________________________________________________________  
      
	 	 
	
              Phone
      Number:

            	_____________________________________________________________  
      
	 	 
	
              Broker
      DTC Participant Code:

            	_____________________________________________________________  
      
	 	 
	
              Account
      Number:

            	_____________________________________________________________kl03016_ex10-4.htm

    
      

    

    Exhibit
10.4

    

     Warrant
Certificate No. ___

    

    NEITHER
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE UPON
THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH
SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN
EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF
COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE
SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED,
ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
LAWS.

    

    Effective
Date: __________, 2008 Void After: __________, 2013

    

    GEORGE
FOREMAN ENTERPRISES, INC.

    

    WARRANT
TO PURCHASE COMMON STOCK

    

    George
Foreman Enterprises, Inc., a Delaware corporation (the “Company”), as of __________,
2008 (the “Effective
Date”) for value received hereby issues to [          ]
(the “Holder”)
this Warrant (the “Warrant”) to purchase, [        ]
shares (each such share as from time to time adjusted as hereinafter provided
being a “Warrant Share”
and all such shares being the “Warrant Shares”) of the
Company’s Common Stock (as defined below), at the Exercise Price (as defined
below), as adjusted from time to time as provided herein, on or before
__________, 2013 (the “Expiration Date”), all subject
to the following terms and conditions. Unless otherwise defined in this Warrant,
terms appearing in initial capitalized form shall have the meaning ascribed to
them in that certain Securities Purchase Agreement between the Company and the
purchaser signatory thereto pursuant to which this Warrant was issued (the
“Securities Purchase
Agreement”).

    

    As used
in this Warrant, (i) “Business
Day” means any day other than Saturday, Sunday or any other day on which
commercial banks in the City of New York, New York, are authorized or required
by law or executive order to close; (ii) “Common Stock” means the common
stock of the Company, par value $0.01 per share, including any securities issued
or issuable with respect thereto or into which or for which such shares may be
exchanged for, or converted into, pursuant to any stock dividend, stock split,
stock combination, recapitalization, reclassification, reorganization or other
similar event; (iii) “Exercise
Price” means $3.00 per share of Common Stock, subject to adjustment as
provided herein; (iv) “Trading
Day” means any day on which the Common Stock is traded on the primary
national or regional stock exchange on which the

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Common
Stock is listed, or if not so listed, the OTC Bulletin Board, if quoted
thereon, is open for the transaction
of business; and (v) “Affiliate” means any person
that, directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, a person, as such terms are used
and construed in Rule 144 promulgated under the Securities Act of 1933, as
amended (the “Securities
Act”).

    

    
      	
              1.

            	
              DURATION
      AND EXERCISE OF WARRANTS

            

    

    

    (a)           Exercise
Period.  The Holder may exercise this Warrant in whole or in
part on any Business Day on or before 5:00 P.M., Eastern Time, on the Expiration
Date, at which time this Warrant shall become void and of no value.

    

    
      	
               
      

            	
              (b)

            	
              Exercise
      Procedures.

            

    

    

    (i)           While
this Warrant remains outstanding and exercisable in accordance with Section
1(a), in addition to the manner set forth in Section 1(b)(ii) below, the Holder
may exercise this Warrant in whole or in part at any time and from time to time
by:

    

    (A)           delivery
to the Company of a duly executed copy of the Notice of Exercise attached as
Exhibit A;

    

    (B)           surrender
of this Warrant to the Secretary of the Company at its principal offices or at
such other office or agency as the Company may specify in writing to the Holder;
and

    

    (C)           payment
of the then-applicable Exercise Price per share multiplied by the number of
Warrant Shares being purchased upon exercise of the Warrant (such amount, the
“Aggregate Exercise
Price”) made in the form of cash, or by certified check, bank draft or
money order payable in lawful money of the United States of
America.

    

    (ii)           At
any time when a registration statement covering the resale of the Warrant Shares
by the Holder is not available, the Holder may, in its sole discretion, exercise
all or any part of the Warrant in a “cashless” or “net-issue” exercise (a “Cashless Exercise”) by
delivering to the Company (1) the Notice of Exercise and (2) the original
Warrant, pursuant to which the Holder shall surrender the right to receive upon
exercise of this Warrant, a number of Warrant Shares having a value (as
determined below) equal to the Aggregate Exercise Price, in which case, the
number of Warrant Shares to be issued to the Holder upon such exercise shall be
calculated using the following formula:

     

     

    
 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

                                             X              =              Y * (A -
B)

                                                                               A

    

                      with:                     X
=              the
number of Warrant Shares to be issued to the Holder

    

    
      	
               
      

            	 	
              Y
      =

            	
              the
      number of Warrant Shares with respect to which the Warrant is being
      exercised

            

    

    

    
      	
               
      

            	 	
              A
      =

            	
              the
      fair value per share of Common Stock on the date of exercise of this
      Warrant

            

    

    

                                             B
=              the
then-current Exercise Price of the Warrant

    

    Solely
for the purposes of this paragraph, “fair value” per share of Common Stock shall
mean (A) the average of the closing sales prices, as quoted on the primary
national or regional stock exchange on which the Common Stock is listed, or, if
not listed, the OTC Bulletin Board if quoted thereon, on the twenty (20) trading
days immediately preceding the date on which the Notice of Exercise is deemed to
have been sent to the Company, or (B) if the Common Stock is not publicly traded
as set forth above, as reasonably and in good faith determined by the Board of
Directors of the Company as of the date which the Notice of Exercise is deemed
to have been sent to the Company.

    

    Notwithstanding
the foregoing provisions of this Section 1(b)(ii), the Holder may not make a
Cashless Exercise if and to the extent that such exercise would require the
Company to issue a number of shares of Common Stock in excess of its authorized
but unissued shares of Common Stock, less all amounts of Common Stock that have
been reserved for issue upon the conversion of all outstanding securities
convertible into shares of Common Stock and the exercise of all outstanding
options, warrants and other rights exercisable for shares of Common
Stock.  If the Company does not have the requisite number of
authorized but unissued shares of Common Stock to permit the Holder to make a
Cashless Exercise, the Company shall use commercially reasonable efforts to
obtain the necessary stockholder consent to increase the authorized number of
shares of Common Stock to permit such Holder to make a Cashless Exercise
pursuant to this Section 1(b)(ii).

    

    (iii)           Upon
the exercise of this Warrant in compliance with the provisions of this Section
1(b), and except as limited pursuant to the last paragraph of Section 1(b)(ii),
the Company shall promptly issue and cause to be delivered to the Holder a
certificate for the Warrant Shares purchased by the Holder.  Each
exercise of this Warrant shall be effective immediately prior to the close of
business on the date (the “Date
of Exercise”) that the conditions set forth in Section 1(b) have been
satisfied, as the case may be.  On the first Business Day following
the date on which the Company has received each of the Notice of Exercise and
the Aggregate Exercise Price (or notice of a Cashless Exercise in accordance
with Section 1(b)(ii)) (the “Exercise Delivery Documents”),
the Company shall transmit an acknowledgment of receipt of the Exercise Delivery
Documents to the Company’s transfer agent (the “Transfer Agent”). On or before
the fourth Business Day following the date on which the Company has

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    received
all of the Exercise Delivery Documents (the “Share Delivery Date”), the
Company shall (X) provided that the Transfer Agent is participating in The
Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program, upon the request of the Holder, credit such
aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with
DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the
Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program, issue and dispatch by overnight courier to the address as
specified in the Notice of Exercise, a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of
shares of Common Stock to which the Holder is entitled pursuant to such
exercise.  Upon delivery of the Exercise Delivery Documents, the
Holder shall be deemed for all corporate purposes to have become the holder of
record of the Warrant Shares with respect to which this Warrant has been
exercised, irrespective of the date of delivery of the certificates
evidencing such Warrant Shares. If this Warrant is submitted in connection with
any exercise pursuant to Section 1(a) and the number of Warrant Shares
represented by this Warrant submitted for exercise is greater than the actual
number of Warrant Shares being acquired upon such an exercise, then the
Company shall as soon as practicable and in no event later than three (3)
Business Days after any exercise and at its own expense, issue a new Warrant of
like tenor representing the right to purchase the number of Warrant Shares
purchasable immediately prior to such exercise under this Warrant, less the
number of Warrant Shares with respect to which this Warrant is
exercised.

    

    (iv)           If
the Company shall fail for any reason or for no reason to issue to the Holder,
within four (4) Business Days of receipt of the Exercise Delivery Documents, a
certificate for the number of shares of Common Stock to which the Holder is
entitled and register such shares of Common Stock on the Company’s share
register or to credit the Holder’s balance account with DTC for such number of
shares of Common Stock to which the Holder is entitled upon the Holder’s
exercise of this Warrant, and if on or after such Business Day the Holder
purchases (in an open market transaction or otherwise) shares of Common
Stock to deliver in satisfaction of a sale by the Holder of shares of Common
Stock issuable upon such exercise that the Holder anticipated receiving from the
Company (a “Buy-In”),
then the Company shall, within four (4) Business Days after the Holder’s request
and in the Holder’s discretion, either (i) pay cash to the Holder in an amount
equal to the Holder’s total purchase price (including brokerage commissions, if
any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the
Company’s obligation to deliver such certificate (and to issue such shares of
Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver
to the Holder a certificate or certificates representing such shares of Common
Stock and pay cash to the Holder in an amount equal to the excess (if any) of
the Buy-In Price over the product of (A) such number of shares of Common Stock,
times (B) the closing bid price on the date of exercise.

    

    (c)           Partial
Exercise.  This Warrant shall be exercisable, either in its
entirety or, from time to time, for part only of the number of Warrant Shares
referenced by this Warrant. If this Warrant is exercised in part, the Company
shall issue, at its expense, a new Warrant, in substantially the form of this
Warrant, referencing such reduced number of Warrant Shares that remain subject
to this Warrant.

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    (d)           Disputes.  In
the case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall promptly issue
to the Holder the number of Warrant Shares that are not disputed and resolve
such dispute in accordance with Section 15.

    

    
      	
              2.

            	
              ISSUANCE
      OF WARRANT SHARES

            

    

    

    (a)           The
Company covenants that all Warrant Shares will, upon issuance in accordance with
the terms of this Warrant, be (i) duly authorized, fully paid and
non-assessable, and (ii) free from all liens, charges and security interests,
with the exception of claims arising through the acts or omissions of any Holder
and except as arising from applicable Federal and state securities
laws.

    

    (b)           The
Company shall register this Warrant upon records to be maintained by the Company
for that purpose in the name of the record holder of such Warrant from time to
time. The Company may deem and treat the registered Holder of this Warrant as
the absolute owner thereof for the purpose of any exercise thereof, any
distribution to the Holder thereof and for all other purposes.

    

    (c)           The
Company will not, by amendment of its articles of incorporation, by-laws 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 Warrant and in the
taking of all action necessary or appropriate in order to protect the rights of
the Holder to exercise this Warrant, or against impairment of such
rights.

    

    
      	
              3.

            	
              ADJUSTMENTS
      OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT
  SHARES

            

    

    

    (a)           The
Exercise Price and the number of shares purchasable upon the exercise of this
Warrant shall be subject to adjustment from time to time upon the occurrence of
certain events described in this Section 3(a); provided, that
notwithstanding the provisions of this Section 3, the Company shall not be
required to make any adjustment if and to the extent that such adjustment would
require the Company to issue a number of shares of Common Stock in excess of its
authorized but unissued shares of Common Stock, less all amounts of Common Stock
that have been reserved for issue upon the conversion of all outstanding
securities convertible into shares of Common Stock and the exercise of all
outstanding options, warrants and other rights exercisable for shares of Common
Stock.  If the Company does not have the requisite number of
authorized but unissued shares of Common Stock to make any adjustment, the
Company shall use its commercially best efforts to obtain the necessary
stockholder consent to increase the authorized number of shares of Common Stock
to make such an adjustment pursuant to this Section 3(a).

    

    (i)           Subdivision or Combination
of Stock. In case the Company shall at any time subdivide (whether by way
of stock dividend, stock split or otherwise) its outstanding

     

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    shares of
Common Stock into a greater number of shares, the Exercise Price in effect
immediately prior to such subdivision shall be proportionately reduced and the
number of Warrant Shares shall be proportionately increased, and conversely, in
case the outstanding shares of Common Stock of the Company shall be combined
(whether by way of stock combination, reverse stock split or otherwise) into a
smaller number of shares, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased and the number of Warrant Shares
shall be proportionately decreased.  The Exercise Price and the
Warrant Shares, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described in this Section
3(a)(i).

    

    (ii)           Dividends in Stock,
Property, Reclassification. If at any time, or from time to time, the
holders of Common Stock (or any shares of stock or other securities at the time
receivable upon the exercise of this Warrant) shall have received or become
entitled to receive, without payment therefore:

    

    (A)           any
shares of stock or other securities that are at any time directly or indirectly
convertible into or exchangeable for Common Stock, or any rights or options to
subscribe for, purchase or otherwise acquire any of the foregoing by way of
dividend or other distribution, or

    

    (B)           additional
stock or other securities or property (including cash) by way of spin-off,
split-up, reclassification, combination of shares or similar corporate
rearrangement (other than shares of Common Stock issued as a stock split or
adjustments in respect of which shall be covered by the terms of
Section 3(a)(i) above),

    

    then and
in each such case, the Exercise Price and the number of Warrant Shares to be
obtained upon exercise of this Warrant shall be adjusted proportionately, and
the Holder hereof shall, upon the exercise of this Warrant, be entitled to
receive, in addition to the number of shares of Common Stock receivable
thereupon, and without payment of any additional consideration therefor, the
amount of stock and other securities and property (including cash in the cases
referred to above) that such Holder would hold on the date of such exercise had
such Holder been the holder of record of such Common Stock as of the date on
which holders of Common Stock received or became entitled to receive such shares
or all other additional stock and other securities and property.  The
Exercise Price and the Warrant Shares, as so adjusted, shall be readjusted in
the same manner upon the happening of any successive event or events described
in this Section 3(a)(ii).

    

    (iii)           Reorganization,
Reclassification, Consolidation, Merger or
Sale. If any recapitalization, reclassification or reorganization of the
capital stock of the Company, or any consolidation or merger of the Company with
another corporation, or the sale of all or substantially all of its assets or
other transaction shall be effected in such a way that holders of Common Stock
shall be entitled to receive stock, securities, or other assets or property (an
“Organic Change”), then,
as a condition of such Organic Change, lawful and adequate provisions shall be
made by the Company whereby the Holder hereof shall thereafter have the right to
purchase and receive (in lieu of the shares of the Common Stock of the Company
immediately theretofore purchasable and receivable upon the exercise of the
rights represented

     

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    by this
Warrant) such shares of stock, securities or other assets or property as may be
issued or payable with respect to or in exchange for a number of outstanding
shares of such Common Stock equal to the number of shares of such stock
immediately theretofore purchasable and receivable assuming the full exercise of
the rights represented by this Warrant. In the event of any Organic Change,
appropriate provision shall be made by the Company with respect to the rights
and interests of the Holder of this Warrant to the end that the provisions
hereof (including, without limitation, provisions for adjustments of the
Exercise Price and of the number of shares purchasable and receivable upon the
exercise of this Warrant) shall thereafter be applicable, in relation to
any shares of stock, securities or assets thereafter deliverable upon the
exercise hereof. The Company will not effect any such consolidation, merger or
sale unless, prior to the consummation thereof, the successor corporation (if
other than the Company) resulting from such consolidation or merger or the
corporation purchasing such assets shall assume by written instrument reasonably
satisfactory in form and substance to the Holder executed and mailed or
delivered to the registered Holder hereof at the last address of such Holder
appearing on the books of the Company, the obligation to deliver to such Holder
such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such Holder may be entitled to purchase. If there is an Organic Change, then the Company shall cause to be
mailed to the Holder at its last address as it shall appear on the books and
records of the Company, at least 10 calendar days before the effective date of
the Organic Change, a notice stating the date on which such
Organic Change is expected to become effective or close, and the date as of
which it is expected that holders of the Common Stock of record shall be
entitled to exchange their shares for securities, cash, or other property
delivered upon such Organic Change; provided, that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  The Holder is
entitled to exercise this Warrant during
the 10-day period commencing on the date of such notice to the effective date of
the event triggering such notice.  In any event, the successor
corporation (if other than the Company) resulting from such consolidation or
merger or the corporation purchasing such assets shall be deemed to assume such
obligation to deliver to such Holder such shares of stock, securities or assets
even in the absence of a written instrument assuming such obligation to the
extent such assumption occurs by operation of law. 

    

    (b)           Certificate as to
Adjustments. Upon the occurrence of each adjustment or readjustment
pursuant to this Section 3, the Company at its expense shall promptly compute
such adjustment or readjustment in accordance with the terms hereof and furnish
to each Holder of this Warrant a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. The Company shall promptly furnish or cause to be
furnished to such Holder a like certificate setting forth: (i) such adjustments
and readjustments; and (ii) the number of shares and the amount, if any, of
other property which at the time would be received upon the exercise of the
Warrant.

    

    (c)           Certain Events. If
any event occurs as to which the other provisions of this Section 3 are not
strictly applicable but the lack of any adjustment would not fairly protect the
purchase rights of the Holder under this Warrant in accordance with the basic
intent and principles of such provisions, or if strictly applicable would
not fairly protect the purchase rights of the Holder under this Warrant in
accordance with the basic intent and principles of such provisions, then the
Company's Board of Directors will, in good faith, make an
appropriate

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    adjustment
to protect the rights of the Holder; provided, that no
such adjustment pursuant to this Section 3(c) will increase the Exercise Price
or decrease the number of Warrant Shares as otherwise determined pursuant to
this Section 3.

    

    (d)           Adjustment of
Exercise Price
Upon Issuance of Additional Shares of Common Stock.  In the
event the Company shall at any time prior to the Expiration Date issue
Additional Shares of Common Stock, as defined below, without consideration or
for a consideration per share less than the Exercise Price in effect immediately
prior to such issue, then the Exercise Price shall be reduced, concurrently with
such issue, to a price (calculated to the nearest cent) determined by
multiplying such Exercise Price by a fraction, (A) the numerator of which shall
be (1) the number of shares of Common Stock outstanding immediately prior to
such issue plus (2) the number of shares of Common Stock which the aggregate
consideration received or to be received by the Company for the total number of
Additional Shares of Common Stock so issued would purchase at such Exercise
Price; and (B) the denominator of which shall be the number of shares of Common
Stock outstanding immediately prior to such issue plus the number of such
Additional Shares of Common Stock so issued; provided that, (i)
for the purpose of this Section 3(d), all shares of Common Stock issuable upon
conversion or exchange of convertible securities outstanding immediately prior
to such issue shall be deemed to be outstanding, and (ii) the number of shares
of Common Stock deemed issuable upon conversion or exchange of such outstanding
convertible securities shall be determined without giving effect to any
adjustments to the conversion or exchange price or conversion or exchange rate
of such convertible securities resulting from the issuance of Additional Shares
of Common Stock that is the subject of this calculation.  For purposes
of this Warrant, “Additional Shares of Common Stock” shall mean all shares of
Common Stock issued by the Company after the Effective Date (including without
limitation any shares of Common Stock issuable upon conversion or exchange of
any convertible securities or upon exercise of any option or warrant, on an
as-converted basis), other than: (i) shares of Common Stock issued or
issuable upon conversion or exchange of any convertible securities or exercise
of any options outstanding on the Effective Date; (ii) shares of Common
Stock issued or issuable by reason of a dividend, stock split, split-up or other
distribution on shares of Common Stock that is covered by Sections 3(a)(i)
through 3(a)(iii) above; (iii) shares of Common Stock (or options with
respect thereto) issued or issuable to employees, officers or directors of, or
consultants to, the Company or any of its subsidiaries pursuant to a plan,
agreement or arrangement approved by the Board of Directors of the Company or
(iv) shares of Common Stock issued or issuable by reason of the
conversion/exchange of rights by George Foreman and/or George Foreman
Productions, Inc. under the Investor Rights Agreement and/or Registration Rights
Agreement filed by the Company with the SEC on Form 8-K on August 18,
2005.  The provisions of this Section 3(d) shall not operate to
increase the Exercise Price.

    

    
      	
              4.

            	
              TRANSFERS
      AND EXCHANGES OF WARRANT AND WARRANT
SHARES

            

    

    

    (a)           Registration of Transfers
and Exchanges. Subject to Section 4(c), upon the Holder’s surrender of
this Warrant, with a duly executed copy of the Form of Assignment attached as
Exhibit B, to the
Secretary of the Company at its principal offices or at such other office or
agency as the Company may specify in writing to the Holder, the Company shall
register the transfer of all or any portion of this Warrant. Upon such
registration of transfer, the Company shall issue a new Warrant, in
substantially the form of this Warrant, evidencing the

     

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    acquisition
rights transferred to the transferee and a new Warrant, in similar form,
evidencing the remaining acquisition rights not transferred, to the Holder
requesting the transfer.

    

    (b)           Warrant Exchangeable for
Different Denominations. The Holder may exchange this Warrant for a new
Warrant or Warrants, in substantially the form of this Warrant, evidencing in
the aggregate the right to purchase the number of Warrant Shares which may then
be purchased hereunder, each of such new Warrants to be dated the date of such
exchange and to represent the right to purchase such number of Warrant Shares as
shall be designated by the Holder. The Holder shall surrender this Warrant with
duly executed instructions regarding such re-certification of this Warrant to
the Secretary of the Company at its principal offices or at such other office or
agency as the Company may specify in writing to the Holder.

    

    (c)           Restrictions on
Transfers. This Warrant may not be transferred at any time without (i)
registration under the Securities Act or (ii) an exemption from such
registration and a written opinion of legal counsel addressed to the Company
that the proposed transfer of the Warrant may be effected without registration
under the Securities Act, which opinion will be in form and from counsel
reasonably satisfactory to the Company.

    

    (d)           Permitted Transfers and
Assignments.  Notwithstanding any provision to the contrary in
this Section 4, the Holder may transfer, with or without consideration, this
Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s
Affiliates (as such term is defined under Rule 144 of the Securities Act)
without obtaining the opinion from counsel that may be required by Section
4(c)(ii), provided, that the
Holder delivers to the Company and its counsel certification, documentation, and
other assurances reasonably required by the Company’s counsel to enable the
Company’s counsel to render an opinion to the Company’s Transfer Agent that such
transfer does not violate applicable securities laws.

    

    
      	
              5.

            	
              MUTILATED
      OR MISSING WARRANT CERTIFICATE

            

    

    

               If
this Warrant is mutilated, lost, stolen or destroyed, upon request by the
Holder, the Company will, at its expense, issue, in exchange for and upon
cancellation of the mutilated Warrant, or in substitution for the lost, stolen
or destroyed Warrant, a new Warrant, in substantially the form of this Warrant,
representing the right to acquire the equivalent number of Warrant Shares; provided, that, as a
prerequisite to the issuance of a substitute Warrant, the Company may require
satisfactory evidence of loss, theft or destruction as well as an indemnity from
the Holder of a lost, stolen or destroyed Warrant.

    

    
      	
              6.

            	
              PAYMENT
      OF TAXES

            

    

    

    The
Company will pay all transfer and stock issuance taxes attributable to the
preparation, issuance and delivery of this Warrant and the Warrant Shares (and
replacement Warrants) including, without limitation, all documentary and stamp
taxes; provided, however, that the
Company shall not be required to pay any tax in respect of the transfer of this
Warrant, or the issuance or delivery of certificates for Warrant Shares or other
securities in respect of the Warrant Shares to any person or entity other than
to the Holder.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    7.           FRACTIONAL
WARRANT SHARES

    

    No
fractional Warrant Shares shall be issued upon exercise of this Warrant. The
Company, in lieu of issuing any fractional Warrant Share, shall round up the
number of Warrant Shares issuable to nearest whole share.

    

    
      	
              8.

            	
              NO
      STOCK RIGHTS AND LEGEND

            

    

    

    No holder
of this Warrant, as such, shall be entitled to vote or be deemed the holder of
any other securities of the Company that may at any time be issuable on the
exercise hereof, nor shall anything contained herein be construed to confer upon
the holder of this Warrant, as such, the rights of a stockholder of the Company
or the right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or give or withhold consent to any
corporate action or to receive notice of meetings or other actions
affecting stockholders (except as provided herein), or to receive dividends or
subscription rights or otherwise (except as provide herein).

    

               Each
certificate for Warrant Shares initially issued upon the exercise of this
Warrant, and each certificate for Warrant Shares issued to any subsequent
transferee of any such certificate, shall be stamped or otherwise imprinted with
a legend in substantially the following form:

    

               “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS,
AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
WITH  RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE
COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES,
WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT
SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE
MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
OR   APPLICABLE STATE SECURITIES LAWS.”

    

    9.           NOTICES

    

               All
notices, consents, waivers, and other communications under this Warrant must be
in writing and will be deemed given to a party when (a) delivered to the
appropriate address by hand or by nationally recognized overnight courier
service (costs prepaid); (b) sent by facsimile or e-mail with confirmation of
transmission by the transmitting equipment; (c) received or rejected by the
addressee, if sent by certified mail, return receipt requested, if to the
registered Holder hereof; or (d) seven days after the placement of the notice
into the mails (first class postage prepaid), to the Holder at the address,
facsimile number, or e-mail address furnished by the registered Holder to the
Company in accordance with the Subscription Agreement and/or Securities
Purchase Agreement by and between the Company and the Holder, or if to
the

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     

    Company,
to it at 100 N. Wilkes-Barre Blvd., 4th Floor,
Wilkes-Barre, PA 18702, Attention: Richard Huffsmith, General Counsel, (or to
such other address, facsimile number, or e-mail address as the Holder or the
Company as a party may designate by notice the other party) with a copy to
Gottbetter & Partners, LLP, 488 Madison Avenue, 12th Floor,
New York, NY 10022, Attention:  Scott Rapfogel, Esq.

    

    
      	
              10.

            	
              SEVERABILITY

            

    

    

    If a
court of competent jurisdiction holds any provision of this Warrant invalid or
unenforceable, the other provisions of this Warrant will remain in full force
and effect. Any provision of this Warrant held invalid or unenforceable only in
part or degree will remain in full force and effect to the extent not held
invalid or unenforceable.

    

    
      	
              11.

            	
              BINDING
      EFFECT

            

    

    

    This
Warrant shall be binding upon the Company and inure to the sole and exclusive
benefit of the registered Holder or Holders from time to time of this Warrant
and the Warrant Shares, and its successors and assigns.

    

    
      	
              12.

            	
              SURVIVAL
      OF RIGHTS AND DUTIES

            

    

    

    This
Warrant shall terminate and be of no further force and effect on the earlier of
5:00 P.M., Eastern Time, on the Expiration Date or the date on which this
Warrant has been exercised in full.

    

    
      	
              13.

            	
              GOVERNING
      LAW

            

    

    

    This
Warrant will be governed by and construed under the laws of the State of New
York without regard to conflicts of laws principles that would require the
application of any other law.

    

    
      	
              14.

            	
              DISPUTE
      RESOLUTION

            

    

    

    In the
case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall submit the
disputed determinations or arithmetic calculations via facsimile within two
Business Days of receipt of the Notice of Exercise giving rise to such dispute,
as the case may be, to the Holder. If the Holder and the Company are unable to
agree upon such determination or calculation of the Exercise Price or the
Warrant Shares within three Business Days of such disputed determination or
arithmetic calculation being submitted to the Holder, then the Company shall,
within two Business Days, submit via facsimile (a) the disputed 

     

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    determination of the Exercise Price to an independent, reputable
investment bank selected by the Company and approved by the Holder or (b) the
disputed arithmetic
calculation of the Warrant Shares to the Company’s independent, outside
accountant. The Company shall cause at its expense the investment bank or the
accountant, as the case may be, to perform the determinations or
calculations and notify the Company and the Holder of the results no later than
ten (10) Business Days from the time it receives the disputed determinations or
calculations. Such investment bank’s or accountant’s determination or
calculation, as the case may be, shall be binding upon all parties absent
demonstrable error.

    

    
      	
              15.

            	
              NOTICES
      OF RECORD DATE

            

    

    

    Upon (a)
any establishment by the Company of a record date of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled
to receive any dividend or other distribution, or right or option to acquire
securities of the Company, or any other right, or (b) any capital
reorganization, reclassification, recapitalization, merger or consolidation of
the Company with or into any other corporation, any transfer of all or
substantially all the assets of the Company, or any voluntary or involuntary
dissolution, liquidation or winding up of the Company, or the sale, in a single
transaction, of a majority of the Company’s voting stock (whether newly issued,
or from treasury, or previously issued and then outstanding, or any combination
thereof), the Company shall mail to the Holder at least ten (10) Business Days,
or such longer period as may be required by law, prior to the record date
specified therein, a notice specifying (i) the date established as the record
date for the purpose of such dividend, distribution, option or right and a
description of such dividend, option or right, (ii) the date on which any such
reorganization, reclassification, transfer, consolidation, merger, dissolution,
liquidation or winding up, or sale is expected to become effective and (iii) the
date, if any, fixed as to when the holders of record of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such reorganization, reclassification, transfer,
consolation, merger, dissolution, liquidation or winding up.

    

    
      	
              16.

            	
              RESERVATION
      OF SHARES

            

    

    

    The
Company shall reserve and keep available out of its authorized but unissued
shares of Common Stock for issuance upon the exercise of this Warrant, free from
pre-emptive rights, such number of shares of Common Stock for which this Warrant
shall from time to time be exercisable.  The Company will take all
such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or
regulation. Without limiting the generality of the foregoing, the Company
covenants that it will use commercially reasonable efforts to take all such
action as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable Warrant Shares upon the exercise
of this Warrant and use commercially reasonable efforts to obtain all such
authorizations, exemptions or consents, including but not limited to consents
from the Company’s stockholders or Board of Directors or any public regulatory
body, as may be necessary to enable the Company to perform its obligations under
this Warrant.

    

    
      	
              17.

            	
              NO
      THIRD PARTY RIGHTS

            

    

    

    This
Warrant is not intended, and will not be construed, to create any rights in any
parties other than the Company and the Holder, and no person or entity may
assert any rights as third-party beneficiary hereunder.

    

    [SIGNATURE
PAGE FOLLOWS]

     

     

    
      
         

      

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

    

    

                                                                                        GEORGE FOREMAN
ENTERPRISES, INC.

    

    

                                                                                        By:
___________________________

                                                                                        Name:

                                                                                        Title:

    

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
A

    

    NOTICE OF
EXERCISE

    

    (To be
executed by the Holder of Warrant if such Holder desires to exercise
Warrant)

    

    To George
Foreman Enterprises, Inc.:

    

    The
undersigned hereby irrevocably elects to exercise this Warrant and to purchase
thereunder, ___________________ full shares of George Foreman Enterprises, Inc.
common stock issuable upon exercise of the Warrant and delivery of:

    

    (1)                 $_________
(in cash as provided for in the foregoing Warrant) and any applicable taxes
payable by the undersigned pursuant to such Warrant; and

    

    (2)                 __________
shares of Common Stock (pursuant to a Cashless Exercise in accordance with
Section 1(b)(ii) of the Warrant) (check here if the undersigned desires to
deliver an unspecified number of shares equal the number sufficient to effect a
Cashless Exercise [___]).

    

        The
undersigned requests that certificates for such shares be issued in the name
of:

    

    _________________________________________

    (Please
print name, address and social security or federal employer

    identification
number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

                  If
the shares issuable upon this exercise of the Warrant are not all of the Warrant
Shares which the Holder is entitled to acquire upon the exercise of the Warrant,
the undersigned requests that a new Warrant evidencing the rights not so
exercised be issued in the name of and delivered to:

    

    _________________________________________

    (Please
print name, address and social security or federal employer

    identification
number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

    
 

                                                                                                Name of Holder
(print):       ________________________

                                                                                               
(Signature):   ___________________________________

                                                                                                (By:)  _________________________________________

                                                                                                (Title:)
________________________________________

                                                                                               
Dated:   ________________________________________

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    

    EXHIBIT
B

    

    FORM OF
ASSIGNMENT

    

    FOR VALUE
RECEIVED, ___________________________________ hereby sells, assigns and
transfers to each assignee set forth below all of the rights of the undersigned
under the Warrant (as defined in and evidenced by the attached Warrant) to
acquire the number of Warrant Shares set opposite the name of such assignee
below and in and to the foregoing Warrant with respect to said acquisition
rights and the shares issuable upon exercise of the Warrant:

    

    
 

    
      	
              Name
      of Assignee

            	
              Address

            	
              Number
      of Shares

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    

    If the
total of the Warrant Shares are not all of the Warrant Shares evidenced by the
foregoing Warrant, the undersigned requests that a new Warrant evidencing the
right to acquire the Warrant Shares not so assigned be issued in the name of and
delivered to the undersigned.

    

    

                                                                               Name of Holder
(print):       ________________________

                                                                               (Signature):   ___________________________________

                                                                               (By:)  _________________________________________

                                                                               (Title:)
________________________________________

                                                                               Dated:   ________________________________________

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