Document:

ex4-01.htm

    
 

    EXHIBIT
4.1

     

    THIS
NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THIS NOTE
AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO BIGSTRING CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED.

     

    
      	
              Principal
      Amount:

            	
              Issue
      Date: June ___, 2009

            

    

    

     

    CONVERTIBLE
NOTE

    
 

    FOR VALUE RECEIVED, BIGSTRING
CORPORATION, a Delaware corporation (hereinafter called “Borrower”), hereby
promises to pay to _______________ (the “Holder”), without demand, the sum of
_______________, with simple and unpaid interest thereon, on June ___, 2011 (the
“Maturity Date”), if not paid sooner.

    

    This Note
has been entered into pursuant to the terms of a Subscription Agreement between
the Borrower, the Holder and certain other subscribers of the Borrower’s
convertible notes, dated of even date herewith (the “Subscription Agreement”),
and shall be governed by the terms of such Subscription
Agreement.  Unless otherwise separately defined herein, all
capitalized terms used in this Note shall have the same meaning as is set forth
in the Subscription Agreement.  The following terms shall apply to
this Note:

     

    ARTICLE
I

    

    GENERAL
PROVISIONS

    

    1.1           Payment Grace
Period.  The Borrower shall have a five (5) business day grace
period to pay any monetary amounts due under this Note, after which grace period
and during the pendency of an Event of Default (as defined in Article III) a
default interest rate of fifteen percent (15%) per annum shall apply to the
amounts owed hereunder.

     

    1.2.            Interest
Rate.   Simple interest payable on this Note shall accrue
at the annual rate of six percent (6%).  Accrued interest will be
payable on each annual anniversary of the Issue Date and on the Maturity Date,
accelerated or otherwise, when the principal and remaining accrued but unpaid
interest shall be due and payable.  Interest will be payable in cash
or at the election of the Borrower, unless an Event of Default has occurred and
has not been timely cured, by the Borrower’s delivery of either registered
shares of Common Stock or Common Stock which may be resold immediately pursuant
to Rule 144(b)(1)(i) of the Securities Act of 1933, as amended (“Interest
Shares”) valued at the lessor of (i) the Conversion Price in effect on the day
the interest payment is due, or (ii) eighty percent (80%) of the three lowest
closing bid prices  as reported by Bloomberg L.P. for the Principal
Market for the five trading days preceding the

     

    
      
         

      

      
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    payment
due date.  In no event may Interest Shares be paid by the Borrower to
the extent such Interest Shares would exceed the limitation set forth in Section
2.3 of this Note.

     

    1.3.           Conversion
Privileges.  The conversion rights of the Holder as set forth
in Article II of this Note shall remain in full force and effect immediately
from the date hereof and until the Note is paid in full regardless of the
occurrence of an Event of Default.  The principal amount of the Note
and the remaining accrued but unpaid interest shall be payable in full on the
Maturity Date, unless previously paid or converted into Common Stock in
accordance with Article II hereof.

     

    ARTICLE
II

    

    CONVERSION
RIGHTS

    

    The
Holder shall have the right to convert the entire principal amount under this
Note and the accrued but unpaid interest thereon into shares of the Borrower’s
Common Stock as set forth below.

     

    2.1.           Voluntary Conversion into
the Borrower’s Common Stock.

     

    (a)           The
Holder shall have the right from and after the Issue Date of the issuance of
this Note and then at any time until this Note is fully paid, to convert any
outstanding and unpaid principal portion of this Note (provided that any partial
conversion shall not be for a portion of the principal amount of this Note which
is the lesser of (i) $10,000, or (ii) the remaining balance of the principal
amount of this Note), at the election of the Holder (the date of giving of such
notice of conversion being a “Conversion Date”) into fully paid and
nonassessable shares of Common Stock as such stock exists on the date of
issuance of this Note, or any shares of capital stock of Borrower into which
such Common Stock shall hereafter be changed or reclassified, at the conversion
price as defined in Section 2.1(b) hereof (the “Conversion Price”), determined
as provided herein.  Upon delivery to the Borrower of a completed
Notice of Conversion, a form of which is annexed hereto, Borrower shall issue
and deliver to the Holder within three (3) business days after the Conversion
Date (such third day being the “Delivery Date”) that number of shares of Common
Stock for the portion of the Note converted in accordance with the
foregoing.  The number of shares of Common Stock to be issued upon
each conversion of this Note shall be determined by dividing that portion of the
principal of the Note to be converted, by the Conversion Price.

     

    (b)           Subject
to adjustment as provided for in Section 2.1(c) hereof, the Conversion Price per
share of Common Stock shall be $0.015 (“Conversion Price”).

     

    (c)           The
Conversion Price and the number and kind of shares or other securities to be
issued upon conversion of this Note, shall be subject to adjustment from time to
time upon the happening of certain events while this conversion right remains
outstanding, as follows:

     

    A.           Merger, Sale of Assets,
etc.  If the Borrower at any time shall consolidate with or
merge into or sell or convey all or substantially all its assets to any other
corporation, this Note, as to the unpaid principal portion thereof and accrued
interest thereon, shall thereafter be deemed to evidence the right to purchase
such number and kind of shares or

     

    
      
         

      

      
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    other
securities and property as would have been issuable or distributable on account
of such consolidation, merger, sale or conveyance, upon or with respect to the
securities subject to the conversion or purchase right immediately prior to such
consolidation, merger, sale or conveyance.  The foregoing provision
shall similarly apply to successive transactions of a similar nature by any such
successor or purchaser.  Without limiting the generality of the
foregoing, the anti-dilution provisions of this Section shall apply to such
securities of such successor or purchaser or surviving entity of the surviving
corporation after any such consolidation, merger, sale or
conveyance.

     

    B.           Reclassification,
etc.  If the Borrower at any time shall, by reclassification or
otherwise, change the Common Stock into the same or a different number of
securities of any class or classes of the Borrower’s capital stock that may be
issued or outstanding, this Note, as to the unpaid principal amount thereof and
accrued interest thereon, shall thereafter be deemed to evidence the right to
purchase an adjusted number of such securities and kind of securities as would
have been issuable as the result of such change with respect to the shares of
Common Stock subject to the conversion of this Note immediately prior to such
reclassification or other change.

     

    C.           Stock Splits, Combinations
and Dividends.  If the shares of Common Stock are subdivided or
combined into a greater or smaller number of shares of Common Stock, or if a
dividend is paid on the Common Stock in shares of Common Stock, the Conversion
Price shall be proportionately reduced in case of subdivision of shares or stock
dividend or proportionately increased in the case of combination of shares, in
each such case by the ratio which the total number of shares of Common Stock
outstanding immediately after such event bears to the total number of shares of
Common Stock outstanding immediately prior to such event.

     

    D.           Share
Issuance.   So long as this Note is outstanding, if the
Borrower shall issue or agree to issue any shares of Common Stock other than
with respect to any Excepted Issuances for a consideration less than the
Conversion Price in effect at the time of such issue, then, and thereafter
successively upon each such issue, the Conversion Price shall be reduced to such
other lower issue price.  For purposes of this adjustment, the
issuance of any security carrying the right to convert such security into shares
of Common Stock or of any warrant, right or option to purchase Common Stock
shall result in an adjustment to the Conversion Price upon the issuance of the
above-described security and again upon the issuance of shares of Common Stock
upon exercise of such conversion or purchase rights if such issuance is at a
price lower than the then applicable Conversion Price.  The reduction
of the Conversion Price described in this paragraph is in addition to other
rights of the Holder described in this Note and the Subscription
Agreement.

     

    E.           Other Corporate
Events.   Prior to the consummation of any
recapitalization, reorganization, consolidation, merger, spin-off or other
business combination pursuant to which holders of Common Stock are entitled to
receive securities or other assets with respect to or in exchange for Common
Stock (a “Corporate Event”), the Borrower shall make appropriate provision to
insure that the Holder will thereafter have the right to receive upon a
conversion of this Note, (i) in addition to the shares of Common Stock
receivable upon such conversion, such securities or other assets to which the
Holder would have been entitled with respect to such shares of Common Stock had
such shares of Common Stock been held by the Holder upon the consummation of
such Corporate Event, or (ii) in lieu of the shares of Common

     

    
      
         

      

      
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    Stock
otherwise receivable upon such conversion, such securities or other assets
received by the holders of Common Stock in connection with the consummation of
such Corporate Event in such amounts as the Holder would have been entitled to
receive had this Note initially been issued with conversion rights for the form
of such consideration (as opposed to shares of Common Stock) at a conversion
price for such consideration commensurate with the Conversion
Price.  Provision made pursuant to the preceding sentence shall be in
a form and substance reasonably satisfactory to the holders of Notes
representing at least 70% of the aggregate principal amount of the Notes then
outstanding.

     

    (d)           Whenever
the Conversion Price is adjusted pursuant to Section 2.1(c) above, the Borrower
shall promptly provide notice to the Holder setting forth the Conversion Price
after such adjustment and setting forth a statement of the facts requiring such
adjustment.

     

    (e)           The
Borrower will reserve from its authorized and unissued shares of Common Stock,
the number of shares of Common Stock during the time periods and in the amounts
described in the Subscription Agreement.  The Borrower represents that
upon issuance, such shares of Common Stock will be duly and validly issued,
fully paid and non-assessable.  The Borrower agrees that its issuance
of this Note shall constitute full authority to its officers, agents, and
transfer agents who are charged with the duty of executing and issuing stock
certificates to execute and issue the necessary certificates for shares of the
Borrower’s Common Stock upon the conversion of this Note.

     

    2.2           No Fractional
Shares.  No fractional shares of Common Stock shall be issued
upon conversion of this Note, but an adjustment in cash will be made, in respect
of any fraction of a share (which will be valued based on the Conversion Price)
which would otherwise be issuable upon the surrender of this Note for conversion
and a check in the amount of the value of such fractional share shall be
delivered to the Holder.

     

    2.3           Method of
Conversion.  This Note may be converted by the Holder in whole
or in part as described in Section 2.1(a) hereof and the Subscription
Agreement.  Upon partial conversion of this Note, a new Note
containing the same date and provisions of this Note shall, at the request of
the Holder, be issued by the Borrower to the Holder for the principal balance of
this Note and interest which shall not have been converted or paid.

     

    2.4           Maximum
Conversion.  The Holder shall not be entitled to convert on a
Conversion Date that amount of the Note in connection with that number of shares
of Common Stock which would be in excess of the sum of (i) the number of shares
of Common Stock beneficially owned by the Holder and its affiliates on a
Conversion Date, and (ii) the number of shares of Common Stock issuable upon the
conversion of the Note with respect to which the determination of this provision
is being made on a Conversion Date, which would result in beneficial ownership
by the Holder and its affiliates of more than 4.99% of the issued and
outstanding shares of Common Stock of the Borrower on such Conversion
Date.  For the purposes of the provision to the immediately preceding
sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3
thereunder.  Subject to the foregoing, the Holder shall not be limited
to aggregate conversions of only 4.99% and aggregate conversion by the Holder
may exceed 4.99%.  The Holder shall have the authority and obligation
to determine whether the restriction contained in this Section 2.3 will limit
any conversion hereunder and to the extent that the Holder determines that the
limitation contained in this Section applies, the determination of

     

    
      
         

      

      
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    the
amount of the Note which is convertible shall be the responsibility and
obligation of the Holder.  The Holder may increase the permitted
beneficial ownership amount up to 9.99% upon and effective after 61 days prior
written notice to the Company.  The Holder may allocate which of the
equity of the Borrower deemed beneficially owned by the Holder shall be included
in the 4.99% amount described above and which shall be allocated to the excess
above 4.99%.

     

    2.5.           Mandatory
Conversion.  Unless an Event of Default (or an event that with
the passage of time or the giving of notice could become an Event of Default,
has occurred and has not been timely cured, then commencing after the Actual
Effective Date (as defined in Section 11.1(iv) of the Subscription Agreement),
the Borrower will have the option by written notice to the Holder (“Notice of
Mandatory Conversion”) of compelling the Holder to convert part or all of the
outstanding and unpaid principal of this Note into Common Stock at the
Conversion Price then in affect (“Mandatory Conversion”).  The Notice
of Mandatory Conversion may only be given, if at all, within five (5) business
days after the Borrower has received the net proceeds from an underwritten
public offering of the Borrower’s equity securities in the gross amount of not
less than $30,000,000 at a per share equivalent price of not less than the
Conversion Price in effect on the final closing of such public offering
(“Mandatory Conversion Conditions”).  The date the Notice of Mandatory
Conversion is given is the “Mandatory Conversion Date.” The Notice of Mandatory
Conversion shall specify the aggregate principal amount of the Note which is
subject to Mandatory Conversion.  Mandatory Conversion Notices must be
given proportionately to all Holders of Notes who received Notes similar in
terms and tenure as this Note.  A Notice of Mandatory Conversion may
not be given unless the Registration Statement (as defined in the Subscription
Agreement dated May 1, 2007) is effective for the unrestricted public resale of
the Registrable Securities (as defined in the Subscription Agreement dated May
1, 2007) for each of the twenty trading days preceding the Mandatory Conversion
Date and through the date the conversion shares are delivered to the
Holder.  The amount of Note principal included in a Mandatory
Redemption Notice shall be reduced to an amount that would not cause the Holder
to exceed the limitation described in Section 2.4 of this Note.  Each
Mandatory Conversion Date shall be a deemed Conversion Date and the Borrower
will be required to deliver the Common Stock issuable pursuant to a Mandatory
Conversion Notice in the same manner and time period as described in Section 2.1
herein.

     

    ARTICLE
III

    

    EVENT
OF DEFAULT

    

    The
occurrence of any of the following events of default (“Event of Default”) shall,
at the option of the Holder hereof, make all sums of principal and accrued
interest then remaining unpaid hereon and all other amounts payable hereunder
immediately due and payable, upon demand, without presentment or grace period,
all of which hereby are expressly waived, except as set forth
below:

     

    3.1           Failure to Pay Principal or
Interest.  The Borrower fails to pay any installment of
interest or other sum due under this Note when due and such failure continues
for a period of five (5) business days after the due date.  The five
(5) day period described in this Section 3.1 is the same five (5) business day
period described in Section 1.1 hereof.

     

    3.2           Breach of
Covenant.  The Borrower breaches any material covenant or other
material term or condition of the Subscription Agreement or this Note in any
material respect

     

    
      
         

      

      
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    and such
breach, if subject to cure, continues for a period of ten (10) business days
after written notice to the Borrower from the Holder.

     

    3.3           Breach of Representations
and Warranties.  Any material representation or warranty of the
Borrower made herein, in any Transaction Document, or in any agreement,
statement or certificate given in writing pursuant hereto or in connection
herewith or therewith shall be false or misleading in any material respect as of
the date made and as of the Closing Date.

     

    3.4           Receiver or
Trustee.  The Borrower shall make an assignment for the benefit
of creditors, or apply for or consent to the appointment of a receiver or
trustee for it or for a substantial part of its property or business; or such a
receiver or trustee shall otherwise be appointed without the consent of the
Borrower if such receiver or trustee is not dismissed within forty-five (45)
days of appointment.

     

    3.5           Judgments.  Any
money judgment, writ or similar final process shall be entered or filed against
the Borrower or any of its property or other assets for more than $50,000, and
shall remain unpaid, unvacated, unbonded or unstayed for a period of forty-five
(45) days.

     

    3.6           Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings or
relief under any bankruptcy law or any law, or the issuance of any notice in
relation to such event, for the relief of debtors shall be instituted by or
against the Borrower and if instituted against Borrower are not dismissed within
forty-five (45) days of initiation.

     

    3.7           Delisting.   Failure
of the Borrower’s Common Stock to be listed for trading or quotation on a
Principal Market.

     

    3.8           Non-Payment.   A
default by the Borrower under any one or more obligations in an aggregate
monetary amount in excess of $225,000 for more than thirty (30) days after the
due date, unless the Borrower is contesting the validity of such obligation in
good faith and has segregated cash funds equal to not less than one-half of the
disputed amount.

     

    3.9           Stop
Trade.  An SEC or judicial stop trade order or Principal Market
trading suspension with respect to the Borrower’s Common Stock that lasts for
ten (10) or more consecutive trading days.

     

    3.10         Failure to Deliver Common
Stock or Replacement Note.  The Borrower’s failure to deliver
Common Stock to the Holder pursuant to and in the form required by this Note and
Sections 7 and 11 of the Subscription Agreement, or, if required, a replacement
Convertible Note more than five (5) business days after the required delivery
date of such Common Stock or replacement Convertible Note.

     

    3.11         Reservation
Default.   The failure by the Borrower to have reserved
for issuance upon conversion of the Note the number of shares of Common Stock as
required in the Subscription Agreement.

     

    3.12         Cross
Default.  A default by the Borrower of a material term,
covenant, warranty or undertaking of any other agreement to which the Borrower
and Holder are parties, or the

     

    
      
         

      

      
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    occurrence
of a material event of default under any such other agreement which is not cured
after any required notice and/or cure period.

     

    ARTICLE
IV

    

    MISCELLANEOUS

    

    4.1           Failure or Indulgence Not
Waiver.  No failure or delay on the part of the Holder hereof
in the exercise of any power, right or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power,
right or privilege preclude other or further exercise thereof or of any other
right, power or privilege.  All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

     

    4.2           Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (a) personally served, (b) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (c)
delivered by a reputable overnight courier service with charges prepaid, or (d)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective upon hand delivery or
delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a
business day during normal business hours where such notice is to be received),
or the first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received),
(ii) on the first business day following the date deposited with an overnight
courier service with charges prepaid, or (iii) on the third business day
following the date of mailing pursuant to subpart (b) above, or upon actual
receipt of such mailing, whichever shall first occur.  The addresses
for such communications shall be: (i) if to the Borrower to: BigString
Corporation, 3 Harding Road, Suite F, Red Bank, NJ 07701, Attn: Darin M. Myman,
President and Chief Executive Officer, telecopier: (732) 741-2842, with a copy
by telecopier only to: Giordano, Halleran & Ciesla, P.C., 125 Half Mile
Road, P.O. Box 190, Middletown, NJ 07748, Attn: Paul T. Colella, Esq.,
telecopier: (732) 224-6599, and (ii) if to the Holder, to the name, address and
telecopy number set forth on the front page of this Note, with a copy by
telecopier only to Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601,
New York, New York 10176, telecopier number: (212) 697-3575.

     

    4.3           Amendment
Provision.  The term “Note” and all reference thereto, as used
throughout this instrument, shall mean this instrument as originally executed,
or if later amended or supplemented, then as so amended or
supplemented.

     

    4.4           Assignability.  This
Note shall be binding upon the Borrower and its successors and assigns, and
shall inure to the benefit of the Holder and its successors and
assigns.  This Note shall not be divided by the Holder except in
increments of not less than $10,000 in principal amount and, in any event, the
Holder shall promptly provide the Borrower written notice of an assignment of
any of the rights under this Note.

     

    4.5           Cost of
Collection.  If default is made in the payment of this Note,
Borrower shall pay the Holder hereof reasonable costs of collection, including
reasonable attorneys’ fees.

     

    
      
         

      

      
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    4.6           Governing
Law.  This Note shall be governed by and construed in
accordance with the laws of the State of New Jersey.  Any action
brought by either party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the civil or state
courts of New Jersey or in the federal courts located in the State of New
Jersey.  Both parties and the individual signing this Agreement on
behalf of the Borrower agree to submit to the jurisdiction of such
courts.  The prevailing party shall be entitled to recover from the
other party its reasonable attorney’s fees and costs.  In the event
that any provision of this Note is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law.  Any such provision which may prove
invalid or unenforceable under any law shall not affect the validity or
unenforceability of any other provision of this Note.   Nothing
contained herein shall be deemed or operate to preclude the Holder from bringing
suit or taking other legal action against the Borrower in any other jurisdiction
to collect on the Borrower’s obligations to Holder, to realize on any collateral
or any other security for such obligations, or to enforce a judgment or other
decision in favor of the Holder.  This Note shall be deemed an
unconditional obligation of Borrower for the payment of money and, without
limitation to any other remedies of Holder, may be enforced against Borrower by
summary proceeding pursuant to New York Civil Procedure Law and Rules Section
3213 or any similar rule or statute in the jurisdiction where enforcement is
sought.  For purposes of such rule or statute, any other document or
agreement to which Holder and Borrower are parties or which Borrower delivered
to Holder, which may be convenient or necessary to determine Holder’s rights
hereunder or Borrower’s obligations to Holder are deemed a part of this Note,
whether or not such other document or agreement was delivered together herewith
or was executed apart from this Note.

     

    4.7           Maximum
Payments.  Nothing contained herein shall be deemed to
establish or require the payment of a rate of interest or other charges in
excess of the maximum rate permitted by applicable law.  In the event
that the rate of interest required to be paid or other charges hereunder exceed
the maximum rate permitted by applicable law, any payments in excess of such
maximum rate shall be credited against amounts owed by the Borrower to the
Holder and thus refunded to the Borrower.

     

    4.8           Shareholder
Status.  The Holder shall not have rights as a shareholder of
the Borrower with respect to unconverted portions of this
Note.  However, the Holder will have all the rights of a shareholder
of the Borrower with respect to the shares of Common Stock to be received by
Holder after delivery by the Holder of a Conversion Notice to the
Borrower.

     

    

     

    

    [THIS
SPACE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
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    IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by an authorized officer as of the
____ day of June, 2009.

    

    
      	 
      	 
      	
              BIGSTRING
      CORPORATION

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:   
      

            	
               

            
	 
      	
              Name:   
      

            	
              Darin
      M. Myman

            
	 
      	
              Title:   
      

            	
              President
      and Chief Executive Officer

            
	 
      	 
      	 
      

    

    

    

    WITNESS:

    

    

     

     

      
        

      

    

     

    9ex10-01.htm

     

    
 

    EXHIBIT
10.1

     

    SUBSCRIPTION
AGREEMENT

     

    THIS SUBSCRIPTION AGREEMENT
(this “Agreement”),
dated as of June ___, 2009, by and among BigString Corporation, a Delaware
corporation (the “Company”), and the subscribers
identified on the signature page hereto (each a “Subscriber” and collectively
the “Subscribers”).

     

    WHEREAS, the Company and the
Subscribers are executing and delivering this Agreement in reliance upon an
exemption from securities registration afforded by the provisions of Section
4(2), Section 4(6) and/or Regulation D (“Regulation D”) as promulgated
by the United States Securities and Exchange Commission (the “Commission”) under the
Securities Act of 1933, as amended (the “1933 Act”);

     

    WHEREAS, the parties desire
that, upon the terms and subject to the conditions contained herein, the Company
shall issue and sell to such Subscribers, as provided herein, and such
Subscribers, in the aggregate, shall purchase (i) One Hundred and Eighty
Thousand Dollars ($180,000) (the “Purchase Price”) of principal
amount of convertible promissory notes of the Company (“Note” or “Notes”), a form of which is
annexed hereto as Exhibit
A, which Notes are convertible into shares of the Company’s common stock,
$.0001 par value (the “Common
Stock”), at a fixed conversion price of $0.015 per share (the “Conversion Price”), as such
Conversion Price may be adjusted as provided for herein and in the Note, and
(ii) share purchase warrants (the “Warrants”) in the form
attached hereto as Exhibit B,
to purchase up to 6,000,000 shares of the Company’s Common Stock (the
“Warrant
Shares”).  The Notes, shares of Common Stock issuable upon
conversion of the Notes (the “Shares”), the Warrants and the
shares issuable upon exercise of the Warrants are collectively referred to
herein as the “Securities.”; and

     

    WHEREAS, the Purchase Price to
be paid by the Subscribers and the Notes and the Warrants to be issued by the
Company as provided herein shall be held in escrow pursuant to the terms of a
Funds Escrow Agreement to be executed by the parties substantially in the form
attached hereto as Exhibit
C (the “Escrow
Agreement”).

     

    NOW, THEREFORE, in
consideration of the mutual covenants and other agreements contained in this
Agreement, the Company and the Subscribers hereby agree as follows:

     

    1.           Closing
Date.  The “Closing Date” shall be the
date that the Purchase Price is transmitted by wire transfer or otherwise
credited to or for the benefit of the Company. The consummation of the
transactions contemplated herein shall take place at the offices of Grushko
& Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York 10176,
upon the satisfaction or waiver of all conditions to closing set forth in this
Agreement.   Subject to the satisfaction or waiver of the terms
and conditions of this Agreement, on the Closing Date, each Subscriber shall
purchase and the Company shall sell to each Subscriber a Note in the principal
amount designated on the signature page hereto for the portion of the Purchase
Price indicated thereon, and Warrants as described in Section 2 of this
Agreement.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    2.           Warrants.  On
the Closing Date, the Company will issue and deliver a Warrant to each
Subscriber.  The number of Warrant Shares available for purchase under
each Warrant shall equal the product of (i) 0.50 multiplied by (ii) the quotient
of (a) the principal amount of such Subscriber’s Note, divided by (b) the
Conversion Price.  The number of Warrant Shares eligible for purchase
by each Subscriber is set forth in the signature page of this
Agreement.  The aggregate number of Warrant Shares eligible for
purchase by such Subscribers is 6,000,000, subject to adjustment as provided for
herein and in the Warrants.  The exercise price to acquire a Warrant
Share upon exercise of a Warrant shall be $0.015.  The Warrants shall
be exercisable until five (5) years after the issue date of the
Warrants.  Each holder of the Warrants is granted the registration
rights set forth in this Agreement.  The Warrant exercise price and
number of Warrant Shares issuable upon exercise of the Warrants shall be
equitably adjusted to offset the effect of stock splits, stock dividends, and
similar events, and as otherwise described in the Warrant.

     

    3.           Calendar
Days.  All references to “days” in the Transaction Documents
(as hereinafter defined) shall mean calendar days unless otherwise
stated.  The terms “business days” and “trading days” shall mean days
that the New York Stock Exchange is open for trading for three or more
hours.  Time periods shall be determined as if the relevant action,
calculation or time period were occurring in New York City.

     

    4.           Subscriber’s Representations
and Warranties.  As of the Closing Date, each Subscriber hereby
represents and warrants to and agrees with the Company only as to such
Subscriber that:

     

    (a)           Organization and Standing of the
Subscribers.  If such Subscriber is an entity, such Subscriber is a
corporation, partnership or other entity duly incorporated or organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation or organization.

     

    (b)           Authorization and Power.  Such Subscriber has
the requisite power and authority to enter into and perform this Agreement and
the other Transaction Documents and to purchase the Notes and Warrants being
sold to it hereunder.  The execution, delivery and performance of this
Agreement and the other Transaction Documents by such Subscriber and the
consummation by it of the transactions contemplated hereby and thereby have been
duly authorized by all necessary corporate or partnership action, and no further
consent or authorization of such Subscriber or its board of directors,
stockholders, partners, members, as the case may be, is
required.  This Agreement and the other Transaction Documents have
been duly authorized, executed and delivered by such Subscriber and constitutes,
or shall constitute when executed and delivered, a valid and binding obligation
of such Subscriber enforceable against such Subscriber in accordance with the
terms thereof.

     

    (c)           No Conflicts.  The execution, delivery and
performance of this Agreement and the other Transaction Documents and the
consummation by such Subscriber of the transactions contemplated hereby and
thereby or relating hereto do not and will not (i) result in a violation of such
Subscriber’s charter documents or bylaws or other organizational documents or
(ii) conflict with, or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of any agreement,
indenture or instrument or obligation to which such Subscriber is a party or by
which its properties or assets are bound, or result in a
violation

     

    
      
         

      

      
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    of any law, rule, or regulation, or any order, judgment
or decree of any court or governmental agency applicable to such Subscriber or
its properties (except for such conflicts, defaults and violations as would not,
individually or in the aggregate, have a material adverse effect on such
Subscriber).  Such Subscriber is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform any of its
obligations under this Agreement and the other Transaction
Documents  or to purchase the Securities in accordance with the terms
hereof, provided that for purposes of the representation made in this sentence,
such Subscriber is assuming and relying upon the accuracy of the relevant
representations and agreements of the Company herein.

     

    (d)           Information
on Company.  Such Subscriber has been furnished with or has had access
at the EDGAR Website of the Commission to the Company’s Form 10-K for the year
ended December 31, 2008, and the amendment thereto on Form 10-K/A as filed with
the Commission, together with all subsequently filed Forms 10-Q, Forms 8-K, and
other reports and filings made with the Commission and made available at the
EDGAR website (hereinafter referred to collectively as the “Reports”).  Such
Subscriber has had an opportunity to ask questions and receive answers from
representatives of the Company.  In addition, such Subscriber has
received in writing from the Company such other information concerning its
operations, financial condition and other matters as such Subscriber has
requested in writing identified thereon as OTHER WRITTEN INFORMATION (such other
information is collectively, the “Other Written Information”),
and considered all factors such Subscriber deems material in deciding on the
advisability of investing in the Securities.

     

    (e)           Information on
Subscriber.  Such Subscriber is, and will be at the time of the
conversion of the Notes and exercise of the Warrants, an “accredited investor”, as such
term is defined in Regulation D promulgated by the Commission under the 1933
Act, is experienced in investments and business matters, has made investments of
a speculative nature and has purchased securities of United States
publicly-owned companies in private placements in the past and, with its
representatives, has such knowledge and experience in financial, tax and other
business matters as to enable such Subscriber to utilize the information made
available by the Company to evaluate the merits and risks of and to make an
informed investment decision with respect to the proposed purchase, which
represents a speculative investment.  Such Subscriber has the
authority and is duly and legally qualified to purchase and own the
Securities.  Such Subscriber is able to bear the risk of such
investment for an indefinite period and to afford a complete loss
thereof.  The information set forth on the signature page hereto
regarding such Subscriber is accurate.

     

    (f)           Purchase of Notes and
Warrants.  On the Closing Date, such Subscriber will purchase
the Notes and Warrants as principal for its own account for investment only and
not with a view toward, or for resale in connection with, the public sale or any
distribution thereof.

     

    (g)           Compliance
with Securities Act.  Such Subscriber understands and agrees
that the Securities have not been registered under the 1933 Act or any
applicable state securities laws, by reason of their issuance in a transaction
that does not require registration under the 1933 Act (based in part on the
accuracy of the representations and warranties of such Subscriber contained
herein), and that such Securities must be held indefinitely unless a subsequent
disposition is registered under the 1933 Act or any applicable state securities
laws or is exemp tfrom such registration.  Subject to compliance with
applicable securities laws and provided that a 

     

    
      
         

      

      
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    net short
position in the Shares and Warrant Shares is not created, such Subscriber may
enter into lawful hedging transactions with respect to the Company’s securities,
otherwise such Subscriber will not conduct any short sales as such term is
defined in Rule 3b-3 of the Securities Exchange Act of 1934, as amended (the
“1934 Act”).

     

    (h)           Shares
Legend.  The Shares and the Warrant Shares shall bear the
following or similar legend:

     

    “THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED.  THESE SHARES MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT OR ANY APPLICABLE STATE
SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO BIGSTRING
CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

    (i)           Warrants
Legend.  The Warrants shall bear the following or similar
legend:

     

    “THIS
WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THIS
WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT OR ANY APPLICABLE STATE
SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO BIGSTRING
CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.”

    

    (j)           Notes
Legend.  The Notes shall bear the following
legend:

     

    “THIS
NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THIS NOTE
AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO BIGSTRING CORPORATION THAT SUCH REGISTRATION IS
NOT REQUIRED.”

     

    
      
         

      

      
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    (k)           Communication of
Offer.  The offer to sell the Securities was directly
communicated to such Subscriber by the Company.  At no time was such
Subscriber presented with or solicited by any leaflet, newspaper or magazine
article, radio or television advertisement, or any other form of general
advertising or solicited or invited to attend a promotional meeting otherwise
than in connection and concurrently with such communicated offer.

     

    (l)           Restricted
Securities.   Such Subscriber understands that the
Securities have not been registered under the 1933 Act and such Subscriber will
not sell, offer to sell, assign, pledge, hypothecate or otherwise transfer any
of the Securities unless pursuant to an effective registration statement under
the 1933 Act, or unless an exemption from registration is
available.  Notwithstanding anything to the contrary contained in this
Agreement, such Subscriber may transfer (without restriction and without the
need for an opinion of counsel) the Securities to its Affiliates (as defined
below) provided that each such Affiliate is an “accredited investor” under
Regulation D and such Affiliate agrees to be bound by the terms and conditions
of this Agreement. For the purposes of this Agreement, an “Affiliate” of any person or
entity means any other person or entity directly or indirectly controlling,
controlled by or under direct or indirect common control with such person or
entity.  Affiliate includes each Subsidiary of the
Company.  For purposes of this definition, “control” means the power to
direct the management and policies of such person or firm, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise.

     

    (m)          No Governmental
Review.  Such Subscriber understands that no United States
federal or state agency or any other governmental or state agency has passed on
or made recommendations or endorsement of the Securities or the suitability of
the investment in the Securities nor have such authorities passed upon or
endorsed the merits of the offering of the Securities.

     

    (n)           Correctness of
Representations.  Such Subscriber represents as to such
Subscriber that the foregoing representations and warranties are true and
correct as of the date hereof and, unless a Subscriber otherwise notifies the
Company prior to the Closing Date shall be true and correct as of the Closing
Date.

     

    (o)           Survival.  The
foregoing representations and warranties shall survive the Closing
Date.

     

    5.           Company Representations and
Warranties.  The Company represents and warrants to and agrees
with each Subscriber that:

     

    (a)           Due
Incorporation.  The Company and each of its Subsidiaries is a
corporation or other entity duly incorporated or organized, validly existing and
in good standing under the laws of the jurisdiction of its incorporation or
organization and has the requisite corporate power to own its properties and to
carry on its business as presently conducted.  The Company and each of
its Subsidiaries is duly qualified as a foreign corporation to do business and
is in good standing in each jurisdiction where the nature of the business
conducted or property owned by it makes such qualification necessary, other than
those jurisdictions in which the failure to so qualify would not have a Material
Adverse Effect (as defined below) on the Company.  For purposes of
this Agreement, a “Material
Adverse Effect” on the Company shall mean a material adverse effect on
the financial condition, results of operations, properties or business of the
Company and its Subsidiaries taken as a whole.  For purposes of this
Agreement,

     

    
      
         

      

      
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    “Subsidiary”
means, with respect to any entity at any date, any corporation, limited or
general partnership, limited liability company, trust, estate, association,
joint venture or other business entity of which more than 25% of
(i) the outstanding capital stock having (in the absence of contingencies)
ordinary voting power to elect a majority of the board of directors or other
managing body of such entity, (ii) in the case of a partnership or limited
liability company, the interest in the capital or profits of such partnership or
limited liability company or (iii) in the case of a trust, estate,
association, joint venture or other entity, the beneficial interest in such
trust, estate, association or other entity business is, at the time of
determination, owned or controlled directly or indirectly through one or more
intermediaries, by such entity.  All the Company’s Subsidiaries as of
the Closing Date and the Company’s ownership interest in such Subsidiaries are
set forth on Schedule
5(a) hereto.

     

    (b)           Outstanding
Stock.  All issued and outstanding shares of capital stock of
the Company have been duly authorized and validly issued and are fully paid and
nonassessable.

     

    (c)           Authority;
Enforceability.  This Agreement, the Note, the Warrants, and
the Escrow Agreement, and any other agreements delivered together with this
Agreement or in connection herewith (collectively, the “Transaction Documents”) have
been duly authorized, executed and delivered by the Company and/or its
Subsidiaries and are valid and binding agreements of the Company and its
Subsidiaries enforceable against them in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights
generally and to general principles of equity.  The Company has full
corporate power and authority necessary to enter into and deliver the
Transaction Documents and to perform its obligations thereunder.

     

    (d)           Additional
Issuances.  There are no outstanding agreements or preemptive
or similar rights affecting the Company’s Common Stock or equity and no
outstanding rights, warrants or options to acquire, or instruments convertible
into or exchangeable for, or agreements or understandings with respect to the
sale or issuance of any shares of common stock or equity of the Company or its
Subsidiaries or other equity interest in the Company except as described on
Schedule
5(d).  The Common Stock of the Company on a fully diluted basis
outstanding as of the last Business Day preceding the Closing Date is set forth
on Schedule
5(d).

     

    (e)           Consents.  No
consent, approval, authorization or order of any court, governmental agency or
body or arbitrator having jurisdiction over the Company, or any of its
Affiliates, the OTC Bulletin Board (the “Bulletin Board”) nor the
Company’s shareholders is required for the execution by the Company of the
Transaction Documents and compliance and performance by the Company of its
obligations under the Transaction Documents, including, without limitation, the
issuance and sale of the Securities.  The Transaction Documents and
the Company’s performance of its obligations thereunder has been approved by the
Company’s board of directors.  As of the Closing Date, the Company
will have obtained the consent required from subscribers to the Company’s notes
and warrants which were issued May 1, 2007 and February 29, 2008 (“Prior
Offerings”).

     

    (f)           No Violation or
Conflict.  Assuming the representations and warranties of such
Subscribers in Section 4 are true and correct and except as set forth on this
Schedule 5(f), neither
the issuance and sale of the Securities nor the performance by the Company of
its obligations under this Agreement and all other Transaction Documents entered
into by the Company relating thereto by the Company will:

     

    
      
         

      

      
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    (i)           violate,
conflict with, result in a breach of, or constitute a default (or an event which
with the giving of notice or the lapse of time or both would be reasonably
likely to constitute a default) under (A) the articles or certificate of
incorporation, charter or bylaws of the Company, (B) to the Company’s knowledge,
any decree, judgment, order, law, treaty, rule, regulation or determination
applicable to the Company of any court, governmental agency or body, or
arbitrator having jurisdiction over the Company or over the properties or assets
of the Company or any of its Affiliates, (C) the terms of any bond, debenture,
note or any other evidence of indebtedness, or any agreement, stock option or
other similar plan, indenture, lease, mortgage, deed of trust or other
instrument to which the Company or any of its Affiliates is a party, by which
the Company or any of its Affiliates is bound, or to which any of the properties
of the Company or any of its Affiliates is subject, or (D) the terms of any
“lock-up” or similar provision of any underwriting or similar agreement to which
the Company, or any of its Affiliates is a party except the violation, conflict,
breach, or default of which would not have a Material Adverse Effect;
or

     

    (ii)           result
in the creation or imposition of any lien, charge or encumbrance upon the
Securities or any of the assets of the Company or any of its Affiliates except
as described herein; or

     

    (iii)           result
in the activation of any anti-dilution rights or a reset or repricing of any
debt, security or other instrument issued or issuable by the Company, nor result
in the acceleration of the due date of any obligation of the foregoing except in
connection with the Prior Offerings or with respect to the Company’s Series A
Preferred Stock; or

     

    (iv)           result
in the triggering of any piggy-back registration rights of any person or entity
holding securities of the Company or having the right to receive securities of
the Company.

     

    (g)           The
Securities.  The Securities upon issuance, conversion and
exercise:

     

    (i)           are,
or will be, free and clear of any security interests, liens, claims or other
encumbrances, subject to restrictions upon transfer under the 1933 Act and any
applicable state securities laws;

     

    (ii)           have
been, or will be, duly and validly authorized and on the date of issuance of the
Shares upon conversion of the Notes and the Warrant Shares and upon exercise of
the Warrants, the Shares and Warrant Shares will be duly and validly issued,
fully paid and nonassessable and if registered pursuant to the 1933 Act and
resold pursuant to an effective registration statement will be free trading and
unrestricted;

     

    (iii)           will
not have been issued or sold in violation of any preemptive or other similar
rights of the holders of any securities of the Company;

     

    (iv)           will
not subject the holders thereof to personal liability by reason of being such
holders; and

     

    (v)           assuming
the representations and warranties of such Subscribers as set forth in Section 4
hereof are true and correct, will not result in a violation of Section 5 under
the 1933 Act.

     

    
      
         

      

      
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    (h)           Litigation.  There
is no pending or, to the best knowledge of the Company, threatened action, suit,
proceeding or investigation before any court, governmental agency or body, or
arbitrator having jurisdiction over the Company, or any of its Affiliates that
would affect the execution by the Company or the performance by the Company of
its obligations under the Transaction Documents.  Except as disclosed
in the Reports or in the schedules hereto, there is no pending or, to the best
knowledge of the Company, basis for or threatened action, suit, proceeding or
investigation before any court, governmental agency or body, or arbitrator
having jurisdiction over the Company, or any of its Affiliates which litigation
if adversely determined would have a Material Adverse Effect.

     

    (i)           Reporting
Company.  The Company is a publicly-held company subject to
reporting obligations pursuant to Section 13 of the 1934 Act and has a class of
common stock registered pursuant to Section 12(g) of the 1934
Act.  Pursuant to the provisions of the 1934 Act, the Company has
timely filed all reports and other materials required to be filed thereunder
with the Commission during the preceding twelve months.

     

    (j)           No Market
Manipulation.  The Company and its Affiliates have not taken,
and will not take, directly or indirectly, any action designed to, or that might
reasonably be expected to, cause or result in stabilization or manipulation of
the price of the Common Stock to facilitate the sale or resale of the Securities
or affect the price at which the Securities may be issued or
resold.

     

    (k)           Information Concerning
Company.  The Reports and Other Written Information contain all
material information relating to the Company and its operations and financial
condition as of their respective dates which information is required to be
disclosed therein.   Since the date of the financial statements
included in the Reports, and except as modified in the Other Written Information
or in the Schedules hereto, there has been no Material Adverse Event relating to
the Company’s business, financial condition or affairs not disclosed in the
Reports. The Reports including the financial statements therein, and Other
Written Information do not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein, taken as a whole, not misleading in light of the
circumstances when made.

     

    (l)           Stop
Transfer.  The Company has not and will not issue any stop
transfer order or other order impeding the sale, resale or delivery of any of
the Securities, except as may be required by any applicable federal or state
securities laws and unless contemporaneous notice of such instruction is given
to the Subscribers.

     

    (m)           Defaults.  The
Company is not in violation of its certificate or articles of incorporation or
bylaws.  Except as described on Schedule 5(q), the Company is
(i) not in default under or in violation of any other material agreement or
instrument to which it is a party or by which it or any of its properties are
bound or affected, which default or violation would have a Material Adverse
Effect, (ii) not in default with respect to any order of any court, arbitrator
or governmental body or subject to or party to any order of any court or
governmental authority arising out of any action, suit or proceeding under any
statute or other law respecting antitrust, monopoly, restraint of trade, unfair
competition or similar matters, and (iii) not in violation of any statute, rule
or regulation of any governmental authority which violation would have a
Material Adverse Effect.

     

    
      
         

      

      
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    (n)           Not an Integrated
Offering.  Neither the Company, nor any of its Affiliates, nor
any person acting on its or their behalf, has directly or indirectly made any
offers or sales of any security or solicited any offers to buy any security
under circumstances that would cause the offer of the Securities pursuant to
this Agreement to be integrated with prior offerings by the Company for purposes
of the 1933 Act or any applicable stockholder approval provisions, including,
without limitation, under the rules and regulations of the Bulletin Board which would impair the
exemptions relied upon in this Offering or the Company’s ability to timely
comply with its obligations hereunder.  Neither the Company nor any of
its Subsidiaries will take any action or steps that would cause the offer or
issuance of the Securities to be integrated with other offerings which would
impair the exemptions relied upon in this Offering or the Company’s ability to
timely comply with its obligations hereunder.  The Company will not
conduct any offering other than the transactions contemplated hereby that will
be integrated with the offer or issuance of the Securities, which would impair
the exemptions relied upon in this Offering or the Company’s ability to timely
comply with its obligations hereunder.

     

    (o)           No General
Solicitation.  Neither the Company, nor any of its Affiliates,
nor to its knowledge, any person acting on its or their behalf, has engaged in
any form of general solicitation or general advertising (within the meaning of
Regulation D under the 1933 Act) in connection with the offer or sale of the
Securities.

     

    (p)           Listing.  The
Common Stock is quoted on the Bulletin Board under the symbol BSGC.OB. The
Company has not received any oral or written notice that the Common Stock is not
eligible nor will become ineligible for quotation on the Bulletin Board nor that
the Common Stock does not meet all requirements for the continuation of such
quotation and the Company satisfies all the requirements for the continued
quotation of the Common Stock on the Bulletin Board.

     

    (q)           No Undisclosed
Liabilities.  The Company has no liabilities or obligations
which are material, individually or in the aggregate, which are not disclosed in
the Reports and Other Written Information, other than those incurred in the
ordinary course of the Company’s businesses since December 31, 2008 and which,
individually or in the aggregate, would reasonably be expected not to have a
Material Adverse Effect, except as disclosed on Schedule 5(q).

     

    (r)           No Undisclosed Events or
Circumstances.  Since December 31, 2008, no event or
circumstance has occurred or exists with respect to the Company or its
businesses, properties, operations or financial condition, that, under
applicable law, rule or regulation, requires public disclosure or announcement
prior to the date hereof by the Company but which has been so publicly announced
or disclosed in the Reports.

     

    (s)           Capitalization.  The
authorized and the issued and outstanding capital stock of the Company as of the
date of this Agreement and the Closing Date (not including the Securities) are
set forth on Schedule
5(d).  Except as set forth on Schedule 5(d), there are no
options, warrants, or rights to subscribe to, securities, rights or obligations
convertible into or exchangeable for or giving any right to subscribe for any
shares of capital stock of the Company or any of its Subsidiaries.

     

    (t)           Dilution.  The
Company’s executive officers and directors understand the nature of the
Securities being sold hereby and recognize that the issuance of the Securities
will

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    have a
potential dilutive effect on the equity holdings of other holders of the
Company’s equity or rights to receive equity of the Company.  The
board of directors of the Company has concluded, in its good faith business
judgment that the issuance of the Securities is in the best interests of the
Company and its shareholders.  The Company specifically acknowledges
that its obligation to issue the Shares upon conversion of the Notes, and the
Warrant Shares upon exercise of the Warrants is binding upon the Company and
enforceable regardless of the dilution such issuance may have on the ownership
interests of other stockholders of the Company or parties entitled to receive
equity of the Company.

     

    (u)           No Disagreements with
Accountants and Lawyers.  There are no disagreements of any
kind presently existing, or reasonably anticipated by the Company to arise,
between the Company and the accountants and lawyers formerly or presently
employed by the Company, including but not limited to disputes or conflicts over
payment owed to such accountants and lawyers, nor have there been any such
disagreements during the two (2) years prior to the Closing Date.

     

    (v)           DTC
Status.  The Company’s transfer agent is a participant in and
the Common Stock is eligible for transfer pursuant to the Depository Trust
Company Automated Securities Transfer Program.  The name, address,
telephone number, fax number, contact person and email address of the Company
transfer agent is set forth on Schedule 5(v)
hereto.

     

    (w)           Investment
Company.  Neither the Company nor any Affiliate is an
“investment company” within the meaning of the Investment Company Act of 1940,
as amended.

     

    (x)           Foreign Corrupt
Practices.  Neither the Company, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company, has (i)
directly or indirectly, used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (iii) failed to disclose fully any
contribution made by the Company (or made by any person acting on its behalf of
which the Company is aware) which is  in violation of law, or (iv)
violated in any material respect any provision of the Foreign Corrupt Practices
Act of 1977, as amended.

     

    (y)           Solvency.  Based
on the financial condition of the Company as of the Closing Date after giving
effect to the receipt by the Company of the proceeds from the sale of the
Securities hereunder, (i) the Company’s fair saleable value of its assets
exceeds the amount that will be required to be paid on or in respect of the
Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature; and (ii) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all
of its assets, after taking into account all anticipated uses of the cash, would
be sufficient to pay all amounts on or in respect of its debt when such amounts
are required to be paid.

     

    (z)           Subsidiary
Representations.  The Company makes each of the representations
contained in Sections 5(a), (b), (d), (f), (h), (k), (m), (q), (r), (s), (u),
(w), (x) and (y) of this Agreement, as same relate to each Subsidiary of the
Company; provided that with respect to the Company’s former wholly-owned
subsidiary, Email Emissary, Inc., which has been dissolved, the Company makes no
representation or warranties other than that such

     

    
      
         

      

      
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    subsidiary
has no material assets or liabilities and did not conduct any active business
operations during 2007.

     

    (AA)       Company
Predecessor.  All representations made by or relating to the
Company of a historical or prospective nature and all undertakings described in
Sections 9(g) through 9(l) shall relate and refer to the Company, its predecessors, and the
Subsidiaries.

     

    (BB)        Correctness of
Representations.  The Company represents that the foregoing
representations and warranties are true and correct as of the date hereof in all
material respects, and unless the Company otherwise notifies the Subscribers
prior to the Closing Date, shall be true and correct in all material respects as
of the Closing Date.

     

    (CC)        Survival.  The
foregoing representations and warranties shall survive the Closing
Date.

     

    6.           Regulation D Offering/Legal
Opinion.  The offer and issuance of the Securities to the
Subscribers is being made pursuant to the exemption from the registration
provisions of the 1933 Act afforded by Section 4(2) or Section 4(6) of the 1933
Act and/or Rule 506 of Regulation D promulgated thereunder.  The
Company will provide, at the Company’s expense, such legal opinions in the
future as are reasonably necessary for the issuance and resale of the Common
Stock issuable upon conversion of the Notes pursuant to an effective
registration statement, Rule 144 under the 1933 Act or an exemption from
registration.

     

    7.1           Conversion of
Note.

     

    (a)           Upon
the conversion of a Note or part thereof as provided for in Section 2.1(a) of
the Note, the Company shall, at its own cost and expense, take all necessary
action, including obtaining and delivering, an opinion of counsel to assure that
the Company’s transfer agent shall issue stock certificates in the name of a
Subscriber (or its permitted nominee) or such other persons as designated by
such Subscriber and in such denominations to be specified at conversion
representing the number of shares of Common Stock issuable upon such
conversion.  The Company warrants that no instructions other than
these instructions have been or will be given to the transfer agent of the
Company’s Common Stock and that the certificates representing such shares shall
contain no legend other than the usual 1933 Act restriction from transfer
legend.  Examples of such legends are provided for in Section 4 of
this Agreement.  If and when a Subscriber sells the Shares, assuming
(i) a registration statement including such Shares is effective and the
prospectus, as supplemented or amended, contained therein is current and (ii)
such Subscriber or its agent confirms in writing to the transfer agent that such
Subscriber has complied with the prospectus delivery requirements, the
restrictive legend can be removed and the Shares will be free-trading, and
freely transferable.  In the event that the Shares are sold in a
manner that complies with an exemption from registration, the Company will
promptly instruct its counsel to issue to the transfer agent an opinion
permitting removal of the legend (indefinitely, if in accordance with
the  relevant provisions of Rule 144 of the 1933 Act).

     

    (b)           Subscriber
will give notice of its decision to exercise its right to convert the Note, or
part thereof as provided for in Section 2.1(a) of the Note by telecopying an
executed and completed Notice of Conversion (a form of which is annexed as Exhibit A to the Note) to the
Company via confirmed telecopier transmission or otherwise pursuant to Section
13(a) of this Agreement.  The Subscriber will not be required to
surrender the Note until the Note has

     

    
      
         

      

      
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    been
fully converted or satisfied.  Each date on which a Notice of
Conversion is telecopied to the Company in accordance with the provisions hereof
shall be deemed a Conversion
Date.  The Company will itself or cause the Company’s transfer
agent to transmit the Company’s Common Stock certificates representing the
Shares issuable upon conversion of the Note to such Subscriber via express
courier for receipt by such Subscriber within three (3) business days after
receipt by the Company of the Notice of Conversion (such fifth day being the
“Delivery
Date”).  In the event the Shares are electronically
transferable, then delivery of the Shares must be made by
electronic transfer provided request for such electronic transfer has been made
by such Subscriber and such Subscriber has complied with all applicable
securities laws in connection with the sale of the Common Stock, including,
without limitation, the prospectus delivery requirements.   A
Note representing the balance of the Note not so converted will be provided by
the Company to a Subscriber if requested by such Subscriber, provided such
Subscriber delivers the original Note to the Company. In the event that a
Subscriber elects not to surrender a Note for reissuance upon partial payment or
conversion of a Note, such Subscriber hereby indemnifies the Company against any
and all loss or damage attributable to a third-party claim in an amount in
excess of the actual amount then due under the Note.

     

    (c)           The
Company understands that a delay in the delivery of the Shares in the form
required pursuant to Section 7.1 hereof, or the Mandatory Redemption Amount
described in Section 7.2 hereof, respectively after the Delivery Date or the
Mandatory Redemption Payment Date (as hereinafter defined) could result in
economic loss to a Subscriber.  As compensation to such Subscriber for
such loss, the Company agrees to pay (as liquidated damages and not as a
penalty) to such Subscriber for late issuance of Shares in the form required
pursuant to Section 7.1 hereof upon Conversion of the Note in the amount of $100
per business day after the Delivery Date for each $10,000 of Note principal
amount being converted of the corresponding Shares which are not timely
delivered.  The Company shall pay any payments incurred under this
Section in immediately available funds upon demand.  Furthermore, in
addition to any other remedies which may be available to such Subscriber, in the
event that the Company fails for any reason to effect delivery of the Shares by
the Delivery Date or make payment by the Mandatory Redemption Payment Date, such
Subscriber will be entitled to revoke all or part of the relevant Notice of
Conversion or rescind all or part of the notice of Mandatory Redemption by
delivery of a notice to such effect to the Company whereupon the Company and
such Subscriber shall each be restored to their respective positions immediately
prior to the delivery of such notice, except that the liquidated damages
described above shall be payable through the date notice of revocation or
rescission is given to the Company.

     

    (d)           The
Company agrees and acknowledges that despite the pendency of a not yet effective
registration statement which includes for registration the Securities, the
Subscriber is permitted to and the Company will issue to the Subscriber Shares
upon conversion of the Note and Warrant Shares upon exercise of the
Warrants.  Such Shares will, if required by law, bear the legends
described in Section 4 above and if the requirements of Rule 144 under the 1933
Act are satisfied be immediately resalable thereunder.

     

    7.2            Mandatory Redemption at
Subscriber’s Election.  In the event (a) the Company is
prohibited from issuing Shares, (b) fails to timely deliver Shares on a Delivery
Date, (c) upon the occurrence of any other Event of Default (as defined in the
Note or in this Agreement); any of the foregoing that is not cured during any
applicable cure period and an additional twenty (20) days thereafter, or (d)
upon a Change in Control (as defined below), then at such
Subscriber’s

     

    
      
         

      

      
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    election,
the Company must pay to such Subscriber ten (10) business days after request by
such Subscriber, at such Subscriber’s election, a sum of money determined by (i)
multiplying up to the outstanding principal amount of the Note designated by
such Subscriber by 100%, or (ii) multiplying the number of Shares otherwise
deliverable upon conversion of an amount of Note principal and/or interest
designated by such Subscriber (with the date of giving of such designation being
a “Deemed Conversion
Date”) at the Conversion Price that would be in effect on the Deemed
Conversion Date by the highest closing price of the Common Stock on the
Principal Market for the period commencing on the Deemed Conversion Date until
the day prior to the receipt of the Mandatory Redemption Payment, whichever is
greater; together with accrued but unpaid interest thereon and any other sums
arising and outstanding under the Transaction Documents (“Mandatory Redemption
Payment”). The Mandatory Redemption Payment must be received by such
Subscriber within ten (10) business days after request (“Mandatory Redemption Payment
Date”). Upon receipt of the Mandatory Redemption Payment, the
corresponding Note principal and interest will be deemed paid and no longer
outstanding.  “Change
in Control” shall mean (i) the Company no longer having a class of shares
publicly traded or listed on a Principal Market (as hereinafter defined), (ii)
the Company becoming a Subsidiary of another entity or merging into or with
another entity, (iii) if Mr. Darin M. Myman beneficially owns and holds at any
time after the Closing Date less than ten percent (10%) of the Company’s Common
stock, or (iv) the sale, lease, license or transfer of substantially all the
assets of the Company and its Subsidiaries.

     

    7.3           Maximum
Conversion.  A Subscriber shall not be entitled to convert on a
Conversion Date that amount of the Note in connection with that number of shares
of Common Stock which would be in excess of the sum of (a) the number of shares
of Common Stock beneficially owned by such Subscriber and its Affiliates on a
Conversion Date, and (b) the number of shares of Common Stock issuable upon the
conversion of the Note with respect to which the determination of this provision
is being made on a Conversion Date, which would result in beneficial ownership
by such Subscriber and its Affiliates of more than 4.99% of the outstanding
shares of Common Stock of the Company on such Conversion Date.  For
the purposes of the provision to the immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the 1934 Act
and Regulation 13d-3 thereunder.  Subject to the foregoing, such
Subscriber shall not be limited to aggregate conversions of only 4.99% and
aggregate conversions by such Subscriber may exceed 4.99%.  The
Subscriber may increase the permitted beneficial ownership amount up to 9.99%
upon and effective after 61 days prior written notice to the
Company.  The Subscriber may allocate which of the equity of the
Company deemed beneficially owned by such Subscriber shall be included in the
4.99% amount described above and which shall be allocated to the excess above
4.99%.

     

    7.4           Injunction Posting of Bond.  In
the event a Subscriber shall elect to convert a Note or part thereof, the
Company may not refuse conversion or exercise based on any claim that such
Subscriber or any one associated or affiliated with such Subscriber has been
engaged in any violation of law, or for any other reason, unless, an injunction
from a court, on notice, restraining and or enjoining conversion of all or part
of such Note shall have been sought and obtained by the Company or at the
Company’s request or with the Company’s assistance, and the Company has posted a
surety bond for the benefit of such Subscriber in the amount of 120% of the
outstanding principal and interest of the Note, or aggregate purchase price of
the Shares which are sought to be subject to the injunction, which bond shall
remain in effect until the completion

     

    
      
         

      

      
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    of
arbitration/litigation of the dispute and the proceeds of which shall be payable
to such Subscriber to the extent Subscriber obtains judgment in Subscriber’s
favor.

     

    7.5           Buy-In.  In
addition to any other rights available to a Subscriber, if the Company fails to
deliver to such Subscriber such shares issuable upon conversion of a Note by the
Delivery Date and if after seven (7) business days after the Delivery Date such
Subscriber or a broker on such Subscriber’s behalf, purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a
sale by such Subscriber of the Common Stock which such Subscriber was entitled
to receive upon such conversion (a “Buy-In”), then the Company
shall pay in cash to such Subscriber (in addition to any remedies available to
or elected by such Subscriber) the amount by which (A) such Subscriber’s total
purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (B) the aggregate principal and/or interest
amount of the Note for which such conversion was not timely honored, together
with interest thereon at a rate of 15% per annum, accruing until such amount and
any accrued interest thereon is paid in full (which amount shall be paid as
liquidated damages and not as a penalty).  For example, if such
Subscriber purchases shares of Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted conversion of $10,000 of
note principal and/or interest, the Company shall be required to
pay  to such Subscriber $1,000, plus interest. The Subscriber shall
provide the Company written notice indicating the amounts payable to such
Subscriber in respect of the Buy-In.

     

    7.6           Adjustments.  The
Conversion Price, Warrant exercise price and the number of Shares issuable upon
conversion of the Notes and Warrant Shares issuable upon exercise of the
Warrants shall be equitably adjusted and as otherwise described in this
Agreement, the Notes and Warrants.

     

    7.7           Redemption.  The
Note shall not be redeemable or callable except as described in the
Note.  The Warrants shall not be callable or redeemable.

     

    7.8           Mandatory
Conversion.  Unless an Event of Default (or an event that with
the passage of time or the giving of notice could become an Event of Default (as
such term is defined in the Notes)) has occurred and has not been timely cured,
then commencing after the effective date of a registration statement
contemplated by Section 11.1 hereof, the Company will have the option by written
notice to such Subscribers (“Notice of Mandatory
Conversion”) of compelling such Subscribers to convert part or all of the
outstanding and unpaid principal of their Notes into Shares at the Conversion
Price then in effect (“Mandatory
Conversion”).  The Notice of Mandatory Conversion may only be
given, if at all, within five (5) business days after the Company has received
the net proceeds from an underwritten public offering of the Company’s equity
securities in the gross amount of not less than $30,000,000 at a per share
equivalent price of not less than the Conversion Price in effect on the final
closing of such public offering (“Mandatory Conversion
Conditions” and such public offering being the “Qualified
Offering”).  The date the Notice of Mandatory Conversion is
given is the “Mandatory
Conversion Date.” The Notice of Mandatory Conversion shall specify the
aggregate principal amount of the Notes which is subject to Mandatory
Conversion.  Mandatory Conversion Notices must be given
proportionately to all Subscribers of Notes.  A Notice of Mandatory
Conversion may not be given unless a registration statement (as contemplated in
Section 11.1 of this Agreement) is effective for the unrestricted public resale
of the  Securities for each of the twenty (20) trading days preceding
the Mandatory Conversion Date and through the date the conversion shares are
delivered to the Subscriber.  The amount of Note principal included in
a Notice of

     

    
      
         

      

      
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    Mandatory
Conversion shall be reduced to an amount that would not cause a Subscriber to
exceed the limitation described in Section 7.3 of this
Agreement.  Each Mandatory Conversion Date shall be a deemed
Conversion Date and the Company will be required to deliver the Shares issuable
pursuant to a Mandatory Conversion Notice in the same manner and time period as
described in Section 7.1(b) of this Agreement.

     

    8.           Finder/Legal
Fees.

     

    (a)           Finder.  The
Company on the one hand, and each Subscriber (for himself, herself or itself
only) on the other hand, agrees to indemnify the other against and hold the
other harmless from any and all liabilities to any persons claiming brokerage
commissions or finder’s fees on account of services purported to have been
rendered on behalf of the indemnifying party in connection with this Agreement
or the transactions contemplated hereby and arising out of such party’s
actions.  The Company and each Subscriber represents that there are no
parties entitled to receive fees, commissions, or similar payments in connection
with the Offering (as such term is defined below) arising out of such party’s
actions except as described on Schedule 8.

     

    (b)           Legal
Fees.  The Company shall pay to Grushko & Mittman, P.C., a
cash fee of $12,500 (“Legal
Fees”) as reimbursement for services rendered to the Subscribers in
connection with this Agreement and the purchase and sale of the Notes and
Warrants (the “Offering”).  The
Legal Fees and reimbursement for estimated UCC searches and filing fees (less
any amounts paid prior to a Closing Date), and estimated printing and shipping
costs for the closing statements to be delivered to Subscribers, will be payable
on the Closing Date out of funds held pursuant to the Escrow
Agreement.  The total amount of reimbursements shall not exceed $1,000
unless any such reimbursement in excess of such amount shall be pre-approved in
writing by the Company.

     

    9.           Covenants of the
Company.  The Company covenants and agrees with the Subscribers
as follows:

     

    (a)           Stop
Orders.  The Company will advise the Subscribers, within
twenty-four hours after it receives notice of issuance by the Commission, any
state securities commission or any other regulatory authority of any stop order
or of any order preventing or suspending any offering of any securities of the
Company, or of the suspension of the qualification of the Common Stock of the
Company for offering or sale in any jurisdiction, or the initiation of any
proceeding for any such purpose.

     

    (b)           Listing/Quotation.  The
Company shall promptly secure the quotation or listing of the Shares and Warrant
Shares upon the Principal Market each national securities exchange, or automated
quotation system upon which they are or become eligible for quotation or listing
(subject to official notice of issuance) and shall maintain same so long as any
Warrants are outstanding.  The Company will maintain the quotation or
listing of its Common Stock on the American Stock Exchange, Nasdaq Capital
Market, Nasdaq Global Select Market, Nasdaq Global Market, the Bulletin Board,
or New York Stock Exchange (whichever of the foregoing is at the time the
principal trading exchange or market for the Common Stock (the “Principal Market”)), and will
comply in all respects with the Company’s reporting, filing and other
obligations under the bylaws or rules of the Principal Market, as applicable.
The Company will provide the Subscribers copies of all notices it receives
notifying the Company of the threatened

     

    
      
         

      

      
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    and
actual delisting of the Common Stock from any Principal Market.  As of
the date of this Agreement and the Closing Date, the Bulletin Board is and will
be the Principal Market.

     

    (c)           Market
Regulations.  The Company shall notify the Commission, the
Principal Market and applicable state authorities, in accordance with their
requirements, of the transactions contemplated by this Agreement, and shall take
all other necessary action and proceedings as may be required and permitted by
applicable law, rule and regulation, for the legal and valid issuance of the
Securities to the Subscribers and promptly provide copies thereof to the
Subscribers.

     

    (d)           Filing
Requirements.  From the date of this Agreement and until the
last to occur of (i) two (2) years after the Closing Date, (ii) until all the
Shares have been resold or transferred by all the Subscribers pursuant to a
registration statement or pursuant to Rule 144(b)(1)(i), or (iii) the Notes are
no longer outstanding (the date of such latest occurrence being the “End Date”), the Company will
(A) cause its Common Stock to continue to be registered under Section 12(b) or
12(g) of the 1934 Act, (B) comply in all respects with its reporting and filing
obligations under the 1934 Act, (C) voluntarily comply with all reporting
requirements that are applicable to an issuer with a class of shares registered
pursuant to Section 12(g) of the 1934 Act, if the Company is not subject to such
reporting requirements, and (D) comply with all requirements related to any
registration statement filed pursuant to this Agreement.  The Company
will use its best efforts not to take any action or file any document (whether
or not permitted by the 1933 Act or the 1934 Act or the rules thereunder) to
terminate or suspend such registration or to terminate or suspend its reporting
and filing obligations under said acts until the End Date.  Until the
End Date, the Company will continue the listing or quotation of the Common Stock
on a Principal Market and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the
Principal Market.  The Company agrees to timely file a Form D with
respect to the Securities if required under Regulation D and to provide a copy
thereof to each Subscriber promptly after such filing.

     

    (e)           Use of
Proceeds.  The proceeds of the Offering must be employed by the
Company for general corporate purposes and working capital.   The
Purchase Price may not and will not be used for accrued and unpaid officer and
director salaries, payment of financing related debt, redemption of outstanding
notes or equity instruments of the Company or non-trade obligations outstanding
on a Closing Date.  For so long as any Notes are outstanding, the
Company will not prepay any financing related debt obligations nor redeem any
equity instruments of the Company without the prior consent of the
Subscribers.

     

    (f)           Reservation.  Prior
to the Closing, the Company undertakes to reserve, pro rata, on behalf of
each holder of a Note or Warrant, from its authorized but unissued Common Stock,
a number of common shares equal to 100% of the amount of Common Stock necessary
to allow each holder of a Note to be able to convert all such outstanding Notes
and reserve the amount of Warrant Shares issuable upon exercise of the
Warrants.   Failure to have sufficient shares reserved pursuant
to this Section 9(f) at any time shall be a material default of the Company’s
obligations under this Agreement and an Event of Default under the
Note.

     

    (g)           Taxes.  From
the date of this Agreement and until the End Date, the Company will promptly pay
and discharge, or cause to be paid and discharged, when due and payable, all
lawful taxes, assessments and governmental charges or levies imposed upon the
income, profits, property or business of the Company; provided, however, that
any such tax,

     

    
      
         

      

      
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    assessment,
charge or levy need not be paid if the validity thereof shall be contested in
good faith by appropriate proceedings and if the Company shall have set aside on
its books adequate reserves with respect thereto, and provided, further, that
the Company will pay all such taxes, assessments, charges or levies forthwith
upon the commencement of proceedings to foreclose any lien which may have
attached as security therefore.

     

    (h)           Insurance.  From
the date of this Agreement and until the End Date, the Company will keep its
assets which are of an insurable character insured by financially sound and
reputable insurers against loss or damage by fire, explosion and other risks
customarily insured against by companies in the Company’s line of business, in
amounts sufficient to prevent the Company from becoming a co-insurer and not in
any event less than one hundred percent (100%) of the insurable value of the
property insured less reasonable deductible amounts; and the Company will
maintain, with financially sound and reputable insurers, insurance against other
hazards and risks and liability to persons and property to the extent and in the
manner customary for companies in similar businesses similarly situated and to
the extent available on commercially reasonable terms.

     

    (i)           Books and
Records.  From the date of this Agreement and until the End
Date, the Company will keep records and books of account in which entries will
be made of all dealings or transactions in relation to its business and affairs
in accordance with generally accepted accounting principles applied on a
consistent basis.

     

    (j)           Governmental
Authorities.  From the date of this Agreement and until the End
Date, the Company shall duly observe and conform in all material respects to all
valid requirements of governmental authorities relating to the conduct of its
business or to its properties or assets.

     

    (k)           Intellectual
Property.  From the date of this Agreement and until the End
Date, the Company shall maintain in full force and effect its corporate
existence, rights and franchises and all licenses and other rights to use
intellectual property owned or possessed by it and reasonably deemed to be
necessary to the conduct of its business, unless it is sold for
value.

     

    (l) 
          Properties.  From
the date of this Agreement and until the End Date, the Company will keep its
properties in good repair, working order and condition, reasonable wear and tear
excepted, and from time to time make all necessary and proper repairs, renewals,
replacements, additions and improvements thereto; and the Company will at all
times comply with each provision of all leases to which it is a party or under
which it occupies property if the breach of such provision could reasonably be
expected to have a Material Adverse Effect.

     

    (m)           Confidentiality/Public
Announcement.  From the date of this Agreement and until the
End Date, the Company agrees that except in connection with a Form 8-K or any
registration statement filed in connection herewith or as otherwise required in
connection with any other filing required to be made with the Commission, it
will not disclose publicly or privately the identity of the Subscribers unless
expressly agreed to in writing by a Subscriber, only to the extent required by
law and then only upon five days prior notice to Subscriber.  In any
event and subject to the foregoing, the Company shall file a Form 8-K or make a
public announcement describing the Offering not later than the fourth business
day after the Closing Date.  In the Form 8-K or public announcement,
the Company will specifically disclose the amount of Common Stock outstanding
immediately after the Closing.  A form of the proposed

     

    
      
         

      

      
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    Form 8-K
or public announcement to be employed in connection with the Closing is annexed
hereto as Exhibit
D.

     

    (n)           Non-Public
Information.  The Company covenants and agrees that except for
schedules and exhibits to this Agreement which information thereon will be
publicly disclosed within four (4) business days after the Closing Date, neither
it nor any other person acting on its behalf will at any time provide any
Subscriber or its agents or counsel with any information that the Company
believes constitutes material non-public information, unless prior thereto such
Subscriber shall have agreed in writing to receive such
information.  The Company understands and confirms that each
Subscriber shall be relying on the foregoing representations in effecting
transactions in securities of the Company.

     

    (o)           Additional Negative
Covenants.  So long as the Notes are outstanding, without the
consent of the Subscribers, the Company will not and will not permit any of its
Subsidiaries to directly or indirectly:

     

    (i)           create,
incur, assume or suffer to exist any pledge, hypothecation, assignment, deposit
arrangement, lien, charge, claim, security interest, security title, mortgage,
security deed or deed of trust, easement or encumbrance, or preference, priority
or other security agreement or preferential arrangement of any kind or nature
whatsoever (including any lease or title retention agreement, any financing
lease having substantially the same economic effect as any of the foregoing, and
the filing of, or agreement to give, any financing statement perfecting a
security interest under the Uniform Commercial Code or comparable law of any
jurisdiction) (each, a “Lien”) upon any of its property, whether now owned or
hereafter acquired except for:  (i) the Excepted Issuances (as defined
in Section 12 hereof, (ii) (a) Liens imposed by law for taxes that are not yet
due or are being contested in good faith and for which adequate reserves have
been established in accordance with generally accepted accounting principles;
(b) carriers’, warehousemen’s, mechanics’, material men’s, repairmen’s and other
like Liens imposed by law, arising in the ordinary course of business and
securing obligations that are not overdue by more than 30 days or that are being
contested in good faith and by appropriate proceedings; (c) pledges and deposits
made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
regulations; (d) deposits to secure the performance of bids, trade contracts,
leases, statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature, in each case in the ordinary course of
business; (e) Liens created with respect to the financing of the purchase of
property in the ordinary course of the Company’s business up to the amount of
the purchase price of such property; and (f) easements, zoning restrictions,
rights-of-way and similar encumbrances on real property imposed by law or
arising in the ordinary course of business that do not secure any monetary
obligations and do not materially detract from the value of the affected
property (each of (a) through (f), a “Permitted Lien”) and (iii) indebtedness
for borrowed money which is not senior or pari passu in right of payment to the
payment of the Notes or distribution of the Company’s assets;

     

    (ii)           amend
its certificate of incorporation, by-laws or its charter documents so as to
adversely affect any rights of the Subscribers;

     

    (iii)           repay,
repurchase or offer to repay, repurchase or otherwise acquire or make any
dividend or distribution in respect of any of its Common Stock, preferred stock,
or other equity securities other than to the extent permitted or required under
the Transaction Documents;

     

    
      
         

      

      
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    (iv)           prepay
or redeem any financing related debt or past due obligations outstanding as of
the Closing Date;

     

    (v)           engage
in any transactions with any officer, director, employee or any Affiliate
(excluding a Subsidiary) of the Company, including any contract, agreement or
other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge
of the Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner, in
each case in excess of $100,000 other than (i) for payment of salary and bonuses
or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company, (iii) for other employee benefits, including
stock option agreements under any stock option plan of the Company, and (iv)
pursuant to existing contractual agreements; or

     

    (vi)           the
Company agrees to provide Subscribers not less than ten (10) days notice prior
to becoming obligated to or effectuating a Permitted Lien or Excepted
Issuance.

     

    (p)           Further Registration
Statements.  Except for a registration statement filed on
behalf of such Subscribers pursuant to Section 11 of this Agreement, or in
connection with the Prior Offerings, or Qualified Offering, the Company will
not, without the consent of such Subscribers, file with the Commission or with
state regulatory authorities any registration statements or amend any already
filed registration statement to increase the amount of Common Stock registered
therein, or reduce the price of which such Common Stock is registered therein,
including but not limited to Forms S-8, until the expiration of the “Exclusion Period”, which shall
be defined as the sooner of (i) a registration statement contemplated pursuant
to Section 11.1 having been current and available for use in connection with the
resale of all of the Securities for a period of ninety (90) days, or (ii) six
(6) months from the Closing Date; provided the Company meets the requirements of
Rule 144(b)(l)(i) of the 1933 Act.  The Exclusion Period will be
tolled or reinstated, as the case may be, during the pendency of an Event of
Default as defined in the Note.

     

    (q)           Blackout.  The
Company undertakes and covenants that, until the end of the Exclusion Period,
the Company will not enter into any acquisition, merger, exchange or sale or
other transaction or fail to take any action that could have the effect of
delaying the effectiveness of any pending registration statement or causing an
already effective registration statement to no longer be effective or current
for a period of twenty (20) or more days in the aggregate during any three
hundred and sixty-five (365) day period.

     

    (r)           Equity Line
Restrictions/Option Plans.  For so long as the Notes are
outstanding, except for the Excepted Issuances, the Company will not enter into
any equity line of credit or similar agreement, nor issue nor agree to issue any
floating or variable priced equity linked instruments nor any of the foregoing
or equity with price reset rights.  The only officer, director,
employee and consultant stock option or stock incentive plan currently in effect
or contemplated by the Company is described on Schedule 5(d).

     

    
      
         

      

      
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    (s)           Lockup
Agreements.  The Company will deliver to the Subscribers on or
before the Closing Date and enforce the provisions of irrevocable lockup
agreements (“Lockup
Agreements”) in the forms annexed hereto as Exhibit E, with the parties
identified on Schedule
9.1(s).

     

    (t)           Seniority.  Except
for Permitted Liens and as otherwise provided for herein, until the Notes are
fully satisfied or converted, the Company shall not grant nor allow any security
interest to be taken in the assets of the Company or any Subsidiary; nor issue
any debt, equity or other instrument which would give the holder thereof
directly or indirectly, a right in any assets of the Company or any Subsidiary,
superior to any right of the holder of a Note in or to such assets.

     

    (u)           DTC
Program.  At all times that Notes or Warrants are outstanding,
the Company will employ as the transfer agent for the Common Stock, Shares and
Warrant Shares a participant in the Depository Trust Company Automated
Securities Transfer Program.  

     

    10.           Covenants of the Company and
Subscriber Regarding Indemnification.

     

    (a)           The
Company agrees to indemnify, hold harmless, reimburse and defend the
Subscribers, the Subscribers’ officers, directors, agents, Affiliates, control
persons and principal shareholders, against any claim, cost, expense, liability,
obligation, loss or damage (including reasonable legal fees) of any nature,
incurred by or imposed upon the Subscriber or any such person which results,
arises out of or is based upon (i) any material misrepresentation by the Company
or breach of any warranty by the Company in this Agreement or in any Exhibits or
Schedules attached hereto, or other Transaction Documents delivered pursuant
hereto, or (ii) after any applicable notice and/or cure periods, any breach or
default in performance by the Company of any covenant or undertaking to be
performed by the Company hereunder, or any other Transaction Documents entered
into by the Company and Subscriber relating hereto.

     

    (b)           Each
Subscriber agrees to indemnify, hold harmless, reimburse and defend the Company
and each of the Company’s officers, directors, agents, Affiliates, control
persons and principal shareholders against any claim, cost, expense, liability,
obligation, loss or damage (including reasonable legal fees) of any nature,
incurred by or imposed upon the Company or any such person which results, arises
out of or is based upon (i) any material misrepresentation by such Subscriber in
this Agreement or in any Exhibits or Schedules attached hereto, or other
Transaction Documents delivered pursuant hereto; or (ii) after any applicable
notice and/or cure periods, any breach or default in performance by such
Subscriber of any covenant or undertaking to be performed by such Subscriber
hereunder, or any other Transaction Documents entered into by the Company and
Subscribers, relating hereto.

     

    (c)           In
no event shall the liability of any Subscriber or permitted successor hereunder
or under any Transaction Document or other agreement delivered in connection
herewith be greater in amount than the dollar amount of the net proceeds
actually received by such Subscriber upon the sale of Securities.

     

    (d)           The
procedures set forth in Section 11.6 of the Subscription Agreement (“Prior
Subscription Agreement”) employed in the Prior Offering shall apply to the
indemnification set forth in Sections 10(a) and 10(b) above.

     

    
      
         

      

      
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    11.1.        Registration
Rights.  The Company hereby grants to the holders of the
Securities the same registration rights granted to the Subscribers to the Prior
Offering dated May 1, 2007 as described in and related to Section 11.1(ii) of
the Prior Subscription Agreement dated May 1, 2007.  The Subscribers
are granted the same notice remedies, indemnification, liquidated damages and
rights granted to the Subscribers to the Prior Offering in connection with such
registration rights and assume the same obligations to the Company as such other
subscribers under Section 11.1(ii) of the Prior Subscription Agreement dated May
1, 2007.  Notwithstanding this Section 11.1, no provisions regarding
demand registration rights contained in the Prior Subscription Agreement dated
May 1, 2007 shall be applicable to the holders of the Securities or otherwise
incorporated herein.

     

    11.2.        Delivery of Unlegended
Shares.

     

    (a)           Within
three (3) business days (such third business day being the “Unlegended Shares Delivery
Date”) after the business day on which the Company has received (i) a
notice that Shares or Warrant Shares or any other Common Stock held by a
Subscriber have been sold pursuant to the registration statement described in
Section 11.1 or Rule 144 under the 1933 Act, (ii) a representation that the
prospectus delivery requirements, or the requirements of Rule 144, as applicable
and if required, have been satisfied, and (iii) the original share certificates
representing the shares of Common Stock that have been sold, and (iv) in the
case of sales under Rule 144, customary representation letters of the Subscriber
and/or Subscriber’s broker regarding compliance with the requirements of Rule
144, the Company at its expense, (y) shall deliver, and shall cause legal
counsel selected by the Company to deliver to its transfer agent (with copies to
Subscriber) an appropriate instruction and opinion of such counsel, directing
the delivery of shares of Common Stock without any legends including the legend
set forth in Section 4(i) above (the “Unlegended Shares”); and (z)
cause the transmission of the certificates representing the Unlegended Shares
together with a legended certificate representing the balance of the submitted
Shares certificate, if any, to the Subscriber at the address specified in the
notice of sale, via express courier, by electronic transfer or otherwise on or
before the Unlegended Shares Delivery Date.  

     

    (b)           In
lieu of delivering physical certificates representing the Unlegended Shares, if
the Company’s transfer agent is participating in the Depository Trust Company
(“DTC”) Fast Automated
Securities Transfer program, upon request of a Subscriber, so long as the
certificates therefor do not bear a legend and such Subscriber is not obligated
to return such certificate for the placement of a legend thereon, the Company
shall cause its transfer agent to electronically transmit the Unlegended Shares
by crediting the account of Subscriber’s prime broker with DTC through its
Deposit Withdrawal Agent Commission system.  Such delivery must be
made on or before the Unlegended Shares Delivery Date.

     

    (c)           The
Company understands that a delay in the delivery of the Unlegended Shares
pursuant to Section 11.2 hereof later than two business days after the
Unlegended Shares Delivery Date could result in economic loss to a
Subscriber.  As compensation to a Subscriber for such loss, the
Company agrees to pay late payment fees (as liquidated damages and not as a
penalty) to such Subscriber for late delivery of Unlegended Shares in the amount
of $100 per business day after the Delivery Date for each $10,000 of purchase
price of the Unlegended Shares subject to the delivery default.  If
during any 360 day period, the Company fails to deliver Unlegended Shares as
required by this Section 11.2 for an aggregate of thirty (30) days, then each
Subscriber or assignee holding Securities subject to such default may, at its
option, require

     

    
      
         

      

      
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    the
Company to redeem all or any portion of the Shares and Warrant Shares subject to
such default at a price per share equal to the greater of (i) the actual
purchase price of such Shares or Warrant Shares, or (ii) the highest closing
price of the Common Stock during the aforedescribed thirty day period and the
denominator of which is the lowest conversion price during such thirty day
period (“Unlegended Redemption
Amount”).  The Company shall pay any payments incurred under
this Section in immediately available funds upon demand.

     

    (d)           In
addition to any other rights available to a Subscriber, if the Company fails to
deliver to a Subscriber Unlegended Shares as required pursuant to this
Agreement, within seven (7) business days after the Unlegended Shares Delivery
Date and a Subscriber or a broker on such Subscriber’s behalf, purchases (in an
open market transaction or otherwise) shares of Common Stock to deliver in
satisfaction of a sale by such Subscriber of the shares of Common Stock which
such Subscriber was entitled to receive from the Company (a “Buy-In”), then the Company
shall pay in cash to such Subscriber (in addition to any remedies available to
or elected by such Subscriber) the amount by which (A) such Subscriber’s total
purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (B) the aggregate purchase price of the shares
of Common Stock delivered to the Company for reissuance as Unlegended
Shares together with interest thereon at a rate of 15% per annum, accruing
until such amount and any accrued interest thereon is paid in full (which amount
shall be paid as liquidated damages and not as a penalty).  For
example, if a Subscriber purchases shares of Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to $10,000 of purchase
price of shares of Common Stock delivered to the Company for reissuance as
Unlegended Shares, the Company shall be required to pay such Subscriber $1,000,
plus interest. The Subscriber shall provide the Company written notice
indicating the amounts payable to such Subscriber in respect of the
Buy-In.

     

    (e)           In
the event a Subscriber shall request delivery of Unlegended Shares as described
in Section 11.2 or Warrant Shares upon exercise of Warrants and the Company is
required to deliver such Unlegended Shares pursuant to Section 11.2 or the
Warrant Shares pursuant to the Warrants, the Company may not refuse to deliver
Unlegended Shares or Warrant Shares based on any claim that such Subscriber or
any one associated or affiliated with such Subscriber has been engaged in any
violation of law, or for any other reason, unless, an injunction or temporary
restraining order from a court, on notice, restraining and or enjoining delivery
of such Unlegended Shares or exercise of all or part of said Warrant shall have
been sought and obtained by the Company or at the Company’s request or with the
Company’s assistance, and the Company has posted a surety bond for the benefit
of such Subscriber in the amount of 120% of the amount of the aggregate purchase
price of the Common Stock and Warrant Shares which are subject to the injunction
or temporary restraining order, which bond shall remain in effect until the
completion of arbitration/litigation of the dispute and the proceeds of which
shall be payable to such Subscriber to the extent Subscriber obtains judgment in
Subscriber’s favor.

     

    11.3.         In
the event commencing one hundred and eighty-one (181) days after the Closing
Date, a Subscriber is not permitted to resell any of the Shares or Warrant
Shares without any restrictive legend or if such sales are permitted but subject
to volume limitations or further restrictions on resale as a result of the
unavailability to Subscriber of Rule 144(b)(1)(i) under the 1933 Act or any
successor rule (a “144
Default”), for any reason except for Subscriber’s status as an Affiliate
or “control person” of the Company, then the Company shall pay such
Subscriber

     

    
      
         

      

      
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    as
liquidated damages and not as a penalty an amount equal to two percent (2%) for
each thirty (30) days (or such lesser pro-rata amount for any period less than
thirty (30) days) thereafter of the purchase price of the Shares and Warrant
Shares owned by such Subscriber during the pendency of the 144
Default.  Liquidated Damages that accrue pursuant to Section 11.4 of
the Prior Subscription Agreement and liquidated damages that accrue pursuant to
this Section 11.3 for contemporaneous periods shall be payable only in
connection with the higher of such amounts (and not both of such amounts) as
shall have accrued.  Liquidated damages shall not be payable pursuant
to this Section 11.3 in connection with Shares and Warrant Shares for such times
as such Shares and Warrant Shares may be sold by the holder thereof without
restriction pursuant to Section 144(b)(1)(i) of the 1933 Act.

     

    12.           (a)           Right of First
Refusal.  Subject to the rights of the holders of the Company’s
Series A Preferred Stock as existing and described in the Reports as of the
Closing Date and without any amendment or enlargement thereof and the rights of
the Subscribers to the Prior Offerings, until one year after the Closing Date
(which period shall be tolled during the pendency of an Event of Default that is
not cured during any applicable cure period), the Subscribers shall be given not
less than seven (7) business days prior written notice of any proposed sale by
the Company of its Common Stock or other securities or equity linked debt
obligations, except in connection with (i) full or partial consideration in
connection with a strategic merger, acquisition, consolidation or purchase of
substantially all of the securities or assets of corporation or other entity
which holders of such securities or debt are not at any time granted
registration rights, (ii) the Company’s issuance of securities in connection
with strategic license agreements and other partnering arrangements so long as
such issuances are not for the purpose of raising capital and, (iii) the
Company’s issuance of Common Stock or the issuances or grants of options to
purchase Common Stock pursuant to stock option plans and employee stock purchase
plans described on Schedule 5(d) hereto, and (iv) as a result of the exercise of
Warrants or conversion of Notes which are granted or issued pursuant to this
Agreement (collectively the foregoing are “Excepted
Issuances”).  The Subscribers who exercise their rights
pursuant to this Section 12(a) shall have the right during the seven (7)
business days following receipt of the notice to purchase some or all of such
offered Common Stock, debt or other securities in accordance with the terms and
conditions set forth in the notice of sale in the same proportion to each other
as their purchase of Notes in the Offering.  A Subscriber may elect to
purchase less than the maximum amount purchasable by such Subscriber in which
event other Subscribers who have fully exercise their rights pursuant to this
Section 12(a) may elect during the following additional seven (7) days to
purchase in proportion to their initial Note purchase hereunder the amounts not
purchased by the Subscribers who did not purchase the maximum amount otherwise
available to them.  In the event such terms and conditions are
modified during the notice period, the Subscribers shall be given prompt notice
of such modification and shall have the right during the seven (7) business days
following the notice of modification to exercise such right.

     

    (b)           Favored Nations
Provision.  Other than in connection with the Excepted
Issuances, if at any time the Notes or Warrants are outstanding, the Company
shall offer, issue or agree to issue any Common Stock or securities convertible
into or exercisable for shares of Common Stock (or modify any of the foregoing
which may be outstanding) to any person or entity at a price per share or
conversion or exercise price per share which shall be less than the Conversion
Price in respect of the Shares, or if less than the Warrant exercise price in
respect of the Warrant Shares, without the consent of each Subscriber, then the
Company shall issue, for

     

    
      
         

      

      
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    each such
occasion, additional shares of Common Stock to each Subscriber so that the
average per share purchase price of the shares of Common Stock issued to such
Subscriber (of only the Common Stock or Warrant Shares still owned by such
Subscriber) is equal to such other lower price per share and the Conversion
Price and Warrant exercise price shall automatically be reduced to such other
lower price.  The average Purchase Price of the Shares and average
exercise price in relation to the Warrant Shares shall be calculated separately
for the Shares and Warrant Shares.  The foregoing calculation and
issuance shall be made separately for Shares received upon conversion of the
Notes and separately for Warrant Shares.  The delivery to such
Subscriber of the additional shares of Common Stock shall be not later than the
closing date of the transaction giving rise to the requirement to issue
additional shares of Common Stock.  The Subscriber is granted the
registration rights described in Section 11 hereof in relation to such
additional shares of Common Stock.  For purposes of the issuance and
adjustment described in this paragraph, the issuance of any security of the
Company carrying the right to convert such security into shares of Common Stock
or of any warrant, right or option to purchase Common Stock shall result in the
issuance of the additional shares of Common Stock upon the sooner of the
agreement to or actual issuance of such convertible security, warrant, right or
option and again at any time upon any subsequent issuances of shares of Common
Stock upon exercise of such conversion or purchase rights if such issuance is at
a price lower than the Conversion Price or Warrant exercise price in effect upon
such issuance.  The rights of such Subscriber set forth in this
Section 12 are in addition to any other rights such Subscriber has pursuant to
this Agreement, the Note, any Transaction Document, and any other agreement
referred to or entered into in connection herewith.  The Subscriber is
also given the right to elect to substitute any term or terms of any other
offering in connection with which such Subscriber has rights as described in
Section 12(a), for any term or terms of the Offering in connection with
Securities owned by Subscriber as of the date the notice described in Section
12(a) is required to be given to Subscriber.

     

    (c)           Maximum Exercise of
Rights.  In the event the exercise of the rights described in
Sections 12(a) or 12(b) would or could result in the issuance of an amount of
Common Stock of the Company that would exceed the maximum amount that may be
issued to a Subscriber calculated in the manner described in Section 7.3 of this
Agreement, then the issuance of such additional shares of Common Stock of the
Company to such Subscriber will be deferred in whole or in part until such time
as such Subscriber is able to beneficially own such Common Stock without
exceeding the applicable maximum amount set forth calculated in the manner
described in Section 7.3 of this Agreement.  The determination of when
such Common Stock may be issued shall be made by each Subscriber as to only such
Subscriber.

     

    13.           Miscellaneous.

     

    (a)           Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable overnight courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number

     

    
      
         

      

      
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    designated
below (if delivered on a business day during normal business hours where such
notice is to be received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours where such
notice is to be received), (b) on the first business day following the date
deposited with an overnight courier service with charges prepaid, or (c) on the
third business day following the date of mailing pursuant to subpart (a)(ii)
above, or upon actual receipt of such mailing, whichever shall first
occur.  The addresses for such communications shall be: (i) if to the
Company, to: BigString Corporation, 3 Harding Road, Suite F, Red Bank, NJ 07701,
Attn: Darin M. Myman, President and Chief Executive Officer, telecopier: (732)
741-2842, with a copy by telecopier only to: Giordano, Halleran & Ciesla,
P.C., 125 Half Mile Road, P.O. Box 190, Middletown, NJ 07748, Attn: Paul T.
Colella, Esq., telecopier: (732) 224-6599, and (ii) if to a Subscriber, to: the
one or more addresses and telecopier numbers indicated on the signature pages
hereto, with an additional copy by telecopier only to: Grushko & Mittman,
P.C., 551 Fifth Avenue, Suite 1601, New York, New York 10176, telecopier: (212)
697-3575.

     

    (b)           Entire Agreement;
Assignment.  This Agreement and other documents delivered in
connection herewith represent the entire agreement between the parties hereto
with respect to the subject matter hereof and may be amended only by a writing
executed by both parties.  Neither the Company nor the Subscribers
have relied on any representations not contained or referred to in this
Agreement and the documents delivered herewith.   No right or
obligation of the Company shall be assigned without prior notice to and the
written consent of the Subscribers.  A Subscriber shall promptly
provide the Company with written notice of the assignment or delegation of any
of its rights or obligations under this Agreement.

     

    (c)           Counterparts/Execution.  This
Agreement may be executed in any number of counterparts and by the different
signatories hereto on separate counterparts, each of which, when so executed,
shall be deemed an original, but all such counterparts shall constitute but one
and the same instrument.  This Agreement may be executed by facsimile
signature and delivered by facsimile transmission.

     

    (d)           Law Governing this
Agreement.  This Agreement shall be governed by and construed
in accordance with the laws of the State of New Jersey without regard to
conflicts of laws principles that
would result in the application of the substantive laws of another
jurisdiction.  Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the civil or state courts of New Jersey or in the federal courts located in
the State of New Jersey.  The parties and the individuals
executing this Agreement and other agreements referred to herein or delivered in
connection herewith on behalf of the Company agree to submit to the jurisdiction
of such courts and waive trial by jury.  The prevailing party
shall be entitled to recover from the other party its reasonable attorney’s fees
and costs.  In the event that any provision of this Agreement or any
other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law.  Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of any
agreement.

     

    (e)           Specific Enforcement,
Consent to Jurisdiction.  To the extent permitted by law, the
Company and Subscriber acknowledge and agree that irreparable damage would occur
in the event that any of the provisions of this Agreement were not performed in
accordance with

     

    
      
         

      

      
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    their
specific terms or were otherwise breached.  It is accordingly agreed
that the parties shall be entitled to one or more preliminary and final
injunctions to prevent or cure breaches of the provisions of this Agreement and
to enforce specifically the terms and provisions hereof, this being in addition
to any other remedy to which any of them may be entitled by law or
equity.  Subject to Section 13(d) hereof, each of the Company,
Subscriber and any signator hereto in his or her personal capacity hereby
waives, and agrees not to assert in any such suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction in New York of such
court, that the suit, action or proceeding is brought in an inconvenient forum
or that the venue of the suit, action or proceeding is
improper.  Nothing in this Section shall affect or limit any right to
serve process in any other manner permitted by law.

     

    (f)           Independent Nature of
Subscribers.  The Company acknowledges that the obligations of
each Subscriber under the Transaction Documents are several and not joint with
the obligations of any other Subscriber, and no Subscriber shall be responsible
in any way for the performance of the obligations of any other Subscriber under
the Transaction Documents. The Company acknowledges that each Subscriber has
represented that the decision of each Subscriber to purchase Securities has been
made by such Subscriber independently of any other Subscriber and independently
of any information, materials, statements or opinions as to the business,
affairs, operations, assets, properties, liabilities, results of operations,
condition (financial or otherwise) or prospects of the Company which may have
been made or given by any other Subscriber or by any agent or employee of any
other Subscriber, and no Subscriber or any of its agents or employees shall have
any liability to any Subscriber (or any other person) relating to or arising
from any such information, materials, statements or opinions.  The Company
acknowledges that nothing contained in any Transaction Document, and no action
taken by any Subscriber pursuant hereto or thereto (including, but not limited
to, the (i) inclusion of a Subscriber in a registration statement and (ii)
review by, and consent to, such registration statement by a Subscriber) shall be
deemed to constitute the Subscribers as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the
Subscribers are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction Documents. 
The Company acknowledges that each Subscriber shall be entitled to independently
protect and enforce its rights, including without limitation, the rights arising
out of the Transaction Documents, and it shall not be necessary for
any other Subscriber to be joined as an additional party in any proceeding for
such purpose.  The Company acknowledges that it has elected to provide all
Subscribers with the same terms and Transaction Documents for the convenience of
the Company and not because Company was required or requested to do so by the
Subscribers.  The Company acknowledges that such procedure with respect to
the Transaction Documents in no way creates a presumption that the Subscribers
are in any way acting in concert or as a group with respect to the Transaction
Documents or the transactions contemplated thereby.

     

    (g)           Damages.  In
the event a Subscriber is entitled to receive any liquidated damages pursuant to
the Transactions, such Subscriber may elect to receive the greater of actual
damages or such liquidated damages.

     

    (h)           Consent.  As
used in the Agreement, “consent of the Subscribers” or similar language means
the consent of holders of not less than 70% of the total of the Shares issued
and issuable upon conversion of outstanding Notes owned by Subscribers on the
date consent is requested.

     

    
      
         

      

      
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    (i)           Equal
Treatment.  No consideration shall be offered or paid to any
person to amend or consent to a waiver or modification of any provision of the
Transaction Documents unless the same consideration is also offered and paid to
all the Subscribers and their permitted successors and assigns.

     

    (j)           Maximum
Payments.  Nothing contained herein or in any document referred
to herein or delivered in connection herewith shall be deemed to establish or
require the payment of a rate of interest or other charges in excess of the
maximum rate permitted by applicable law.  In the event that the rate
of interest or dividends required to be paid or other charges hereunder exceed
the maximum permitted by such law, any payments in excess of such maximum rate
shall be credited against amounts owed by the Company to a Subscriber and thus
refunded to the Company.

     

    (m)           Captions: Certain
Definitions.  The captions of the various sections and
paragraphs of this Agreement have been inserted only for the purposes of
convenience; such captions are not a part of this Agreement and shall not be
deemed in any manner to modify, explain, enlarge or restrict any of the
provisions of this Agreement.  As used in this Agreement the term
“person” shall
mean and include an individual, a partnership, a joint venture, a corporation, a
limited liability company, a trust, an unincorporated organization and a
government or any department or agency thereof.

     

    (n)           Severability.  In
the event that any term or provision of this Agreement shall be finally
determined to be superseded, invalid, illegal or otherwise unenforceable
pursuant to applicable law by an authority having jurisdiction and venue, that
determination shall not impair or otherwise affect the validity, legality or
enforceability: (i) by or before that authority of the remaining terms and
provisions of this Agreement, which shall be enforced as if the unenforceable
term or provision were deleted, or (ii) by or before any other authority of any
of the terms and provisions of this Agreement.

     

    (o)           Successor
Laws.  References in the Transaction Documents to laws, rules,
regulations and forms shall also include successors to and functionally
equivalent replacements of such laws, rules, regulations and forms.  A
successor rule to 144(b)(1)(i) shall include any rule that would be available to
a non-Affiliate of the Company for the sale of Common Stock not subject to
volume restrictions and after a six month holding period.

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    

    SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT
(A)

     

    

     

    Please
acknowledge your acceptance of the foregoing Subscription Agreement by signing
and returning a copy to the undersigned whereupon it shall become a binding
agreement between us.

    

    
      
        
          	 
      	 	
                  BIGSTRING
      CORPORATION

                
	 
      	 	
                  a
      Delaware corporation

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                   

                
	 
      	 
      	
                  Name:
      Darin M. Myman

                
	 
      	 
      	
                  Title:
      President and Chief Executive Officer

                
	 
      	 
      	 
      
	 
      	 
      	
                  Dated:
      June ___, 2009

                

        

      

    

    

    

    
      	
              SUBSCRIBER

            	
              PURCHASE
      PRICE AND

              NOTE
      PRINCIPAL

            
	
              ALPHA
      CAPITAL ANSTALT

              Pradafant
      7

              9490
      Furstentums

              Vaduz,
      Lichtenstein

              Fax:
      011-42-32323196

               

               

               

              _______________________________________________

              (Signature)

              By:

               

            	
              $75,000.00

            
	 
      	
              WARRANT
      SHARES

              2,500,000

            

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SIGNATURE PAGE TO
SUBSCRIPTION AGREEMENT (B)

     

    

     

    Please
acknowledge your acceptance of the foregoing Subscription Agreement by signing
and returning a copy to the undersigned whereupon it shall become a binding
agreement between us.

    

    
      
        
          	 
      	 	
                  BIGSTRING
      CORPORATION

                
	 
      	 	
                  a
      Delaware corporation

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                   

                
	 
      	 
      	
                  Name:
      Darin M. Myman

                
	 
      	 
      	
                  Title:
      President and Chief Executive Officer

                
	 
      	 
      	 
      
	 
      	 
      	
                  Dated:
      June ___, 2009

                

        

      

    

    

    

    
      	
              SUBSCRIBER

            	
              PURCHASE
      PRICE AND NOTE PRINCIPAL

            
	
              WHALEHAVEN
      CAPITAL FUND LIMITED

              560
      Sylvan Avenue

              Englewood
      Cliffs, N.J. 07632

              Fax:
      (201) 586-0258

               

               

               

              ________________________________________

              (Signature)

              By:

               

            	
              $75,000.00

            
	 
      	
              WARRANT
      SHARES

              2,500,000

            

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SIGNATURE PAGE TO
SUBSCRIPTION AGREEMENT (C)

     

    

     

    Please
acknowledge your acceptance of the foregoing Subscription Agreement by signing
and returning a copy to the undersigned whereupon it shall become a binding
agreement between us.

    

    
      
        
          	 
      	 	
                  BIGSTRING
      CORPORATION

                
	 
      	 	
                  a
      Delaware corporation

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                   

                
	 
      	 
      	
                  Name:
      Darin M. Myman

                
	 
      	 
      	
                  Title:
      President and Chief Executive Officer

                
	 
      	 
      	 
      
	 
      	 
      	
                  Dated:
      June ___, 2009

                

        

      

    

    

    

    

    
      	
              SUBSCRIBER

            	
              PURCHASE
      PRICE AND NOTE PRINCIPAL

            
	
              EXCALIBUR
      SPECIAL OPPORTUNITIES LP

              150
      Bloor Street West, Suite 14

              Toronto,
      ON M5S2X9, Canada

              Fax:
      (416) _______________

               

               

               

               

              _______________________________________

              (Signature)

              By:

               

            	
              $30,000.00

            
	 
      	
              WARRANT
      SHARES

              1,000,000

            

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    LIST OF EXHIBITS AND
SCHEDULES

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Exhibit
      A

                                  	
                                    Form
      of Note

                                  
	 	 
	
                                    Exhibit
      B

                                  	
                                    Form
      of Warrant

                                  
	 	 
	
                                    Exhibit
      C

                                  	
                                    Escrow
      Agreement

                                  
	 	 
	
                                    Exhibit
      D

                                  	
                                    Form
      8-K

                                  
	 	 
	
                                    Exhibit
      E

                                  	
                                    Form
      of Lockup Agreement

                                  
	 	 
	
                                    Schedule
      5(a)

                                  	
                                    Subsidiaries

                                  
	 	 
	
                                    Schedule
      5(d)

                                  	
                                    Additional
      Issuances / Capitalization

                                  
	 	 
	
                                    Schedule
      5(f)

                                  	
                                    Conflicts

                                  
	 	 
	
                                    Schedule
      5(q)

                                  	
                                    Undisclosed
      Liabilities

                                  
	 	 
	
                                    Schedule
      5(v)

                                  	
                                    Transfer
      Agent

                                  
	 	 
	
                                    Schedule
      8

                                  	
                                    Finder’s
      Fee

                                  
	 	 
	
                                    Schedule
      9.1(s)

                                  	
                                    Lockup
      Agreement
Provider

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Exhibit
B

    

    THIS WARRANT AND THE COMMON SHARES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON SHARES ISSUABLE
UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID
ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO BIGSTRING CORPORATION
THAT SUCH REGISTRATION IS NOT REQUIRED.

    

    
      	 
      	
              Right
      to Purchase __________
      shares of Common Stock of BigString Corporation (subject to adjustment as
      provided herein)

            

    

    

    COMMON
STOCK PURCHASE WARRANT

     

    
      
        	
                No. 2009-____

              	
                Issue
      Date: June ___, 2009

              
	 	 

      

    

    BIGSTRING
CORPORATION, a corporation organized under the laws of the State of Delaware
(the “Company”), hereby certifies that, for value received, _______________, or
its assigns (the “Holder”), is entitled, subject to the terms set forth below,
to purchase from the Company at any time after the Issue Date until 5:00 p.m.,
E.S.T on the fifth anniversary of the Issue Date (the “Expiration Date”), up to
_______________ fully paid and nonassessable shares of Common Stock at a per
share exercise price of $0.015.  The aforedescribed exercise price per
share, as adjusted from time to time as herein provided, is referred to herein
as the "Exercise Price."  The number and character of such shares of
Common Stock and the Exercise Price are subject to adjustment as provided
herein.  The Company may reduce the Exercise Price without the consent
of the Holder.  The Company may reduce the Exercise Price without the
consent of the Holder.  Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Subscription
Agreement (the “Subscription
Agreement”), dated as of June ___, 2009, entered into by the Company and
the initial Holder of this Warrant.

    

    As used
herein the following terms, unless the context otherwise requires, have the
following respective meanings:

     

    (a)           The
term “Company” shall include BigString Corporation and any corporation which
shall succeed or assume the obligations of BigString Corporation
hereunder.

     

    (b)           The
term “Common Stock” includes (a) the Company's Common Stock, $0.0001 par
value per share, as authorized on the date of the Subscription Agreement, and
(b) any other securities into which or for which any of the securities described
in (a) may be converted or exchanged pursuant to a plan of
recapitalization, reorganization, merger, sale of assets or
otherwise.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (c)           The
term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) which the
holder of the Warrant at any time shall be entitled to receive, or shall have
received, on the exercise of the Warrant, in lieu of or in addition to Common
Stock, or which at any time shall be issuable or shall have been issued in
exchange for or in replacement of Common Stock or Other Securities pursuant to
Section 4 or otherwise.

     

    (d)           The
term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this
Warrant.

     

    1.           Exercise of
Warrant.

     

    1.1.           Number of Shares Issuable
upon Exercise.  From and after the Issue Date through and
including the Expiration Date, the Holder hereof shall be entitled to receive,
upon exercise of this Warrant in whole in accordance with the terms of
subsection 1.2 or upon exercise of this Warrant in part in accordance with
subsection 1.3, shares of Common Stock of the Company, subject to
adjustment pursuant to Section 4.

     

    1.2.           Full
Exercise.  This Warrant may be exercised in full by the Holder
hereof by delivery of this Warrant an original or facsimile copy of the form of
subscription attached as Exhibit A hereto (the “Subscription Form”) duly
executed by such Holder and delivery within two days thereafter of payment, in
cash, wire transfer or by certified or official bank check payable to the order
of the Company, in the amount obtained by multiplying the number of shares of
Common Stock for which this Warrant is then exercisable by the Exercise Price
then in effect.  The original Warrant is not required to be
surrendered to the Company until it has been fully exercised.

     

    1.3.           Partial
Exercise.  This Warrant may be exercised in part (but not for a
fractional share) by the Holder hereof by delivery, an original or facsimile
copy of the Subscription Form duly executed by such Holder and payment, in cash,
wire transfer or by certified or official bank check payable to the order of the
Company.  The amount payable by the Holder on such partial exercise
shall be the amount obtained by multiplying (a) the number of whole shares
of Common Stock designated by the Holder in the Subscription Form by
(b) the Exercise Price then in effect.  On any such partial
exercise provided the Holder has surrendered the original Warrant, the Company,
at its expense, will forthwith issue and deliver to or upon the order of the
Holder hereof a new Warrant of like tenor, in the name of the Holder hereof or
as such Holder (upon payment by such Holder of any applicable transfer taxes)
may request, the whole number of shares of Common Stock for which such Warrant
may still be exercised.

     

    1.4.           Fair Market
Value.  Fair Market Value of a share of Common Stock as of a
particular date (the "Determination Date") shall mean:

     

    (a)           If
the Company's Common Stock is traded on an exchange or is quoted on the NASDAQ
Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New
York Stock Exchange or the American Stock Exchange, LLC, then the closing or
last sale price, respectively, reported for the last business day immediately
preceding the Determination Date;

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b)           If
the Company's Common Stock is not traded on an exchange or on the NASDAQ Global
Market, NASDAQ Global Select Market, the NASDAQ Capital Market or the American
Stock Exchange, Inc., but is traded in the over-the-counter market, then the
average of the closing bid and ask prices reported for the last business day
immediately preceding the Determination Date;

     

    (c)           Except
as provided in clause (d) below and Section 3.1, if the Company's Common
Stock is not publicly traded, then as the Holder and the Company agree, or in
the absence of such an agreement, by arbitration in accordance with the rules
then standing of the American Arbitration Association, before a single
arbitrator to be chosen from a panel of persons qualified by education and
training to pass on the matter to be decided; or

     

    (d)           If
the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to
the Company's charter, then all amounts to be payable per share to holders of
the Common Stock pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per share in
respect of the Common Stock in liquidation under the charter, assuming for the
purposes of this clause (d) that all of the shares of Common Stock then
issuable upon exercise of all of the Warrants are outstanding at the
Determination Date.

     

    1.5.           Company
Acknowledgment.  The Company will, at the time of the exercise
of the Warrant, upon the request of the Holder hereof acknowledge in writing its
continuing obligation to afford to such Holder any rights to which such Holder
shall continue to be entitled after such exercise in accordance with the
provisions of this Warrant. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Company to afford
to such Holder any such rights.

     

    1.6.           Trustee for Warrant
Holders.  In the event that a bank or trust company shall have
been appointed as trustee for the Holder of the Warrants pursuant to
Subsection 3.2, such bank or trust company shall, to the extent permitted
by applicable law, have all the powers and duties of a warrant agent (as
hereinafter described) and shall accept, in its own name for the account of the
Company or such successor person as may be entitled thereto, all amounts
otherwise payable to the Company or such successor, as the case may be, on
exercise of this Warrant pursuant to this Section 1.

     

    1.7           Delivery of Stock
Certificates, etc. on Exercise.  The Company agrees that the
shares of Common Stock purchased upon exercise of this Warrant shall be deemed
to be issued to the Holder hereof as the record owner of such shares as of the
close of business on the date on which this Warrant shall have been surrendered
and payment made for such shares as aforesaid. As soon as practicable after
the exercise of this Warrant in full or in part, and in any event within three
(3) business days thereafter (“Warrant Share Delivery Date”), the Company at its
expense (including the payment by it of any applicable issue taxes) will cause
to be issued in the name of and delivered to the Holder hereof, or as such
Holder (upon payment by such Holder of any applicable transfer taxes) may direct
in compliance with applicable securities laws, a certificate or
certificates for the number of duly and validly issued, fully paid and
nonassessable shares of Common Stock (or Other Securities) to which such Holder
shall be entitled on such exercise, plus, in lieu of any fractional share to
which such Holder would otherwise be entitled, cash equal to such fraction
multiplied by the then Fair Market Value of one full share of

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Common
Stock, together with any other stock or other securities and property (including
cash, where applicable) to which such Holder is entitled upon such exercise
pursuant to Section 1 or otherwise.  The Company understands that
a delay in the delivery of the Warrant Shares after the Warrant Share Delivery
Date could result in economic loss to the Holder.  As compensation to
the Holder for such loss, the Company agrees to pay (as liquidated damages and
not as a penalty) to the Holder for late issuance of Warrant Shares upon
exercise of this Warrant the amount of $100 per business day after the Warrant
Share Delivery Date for each $10,000 of Exercise Price of Warrant Shares for
which this Warrant is exercised which are not timely delivered.  The
Company shall pay any payments incurred under this Section in immediately
available funds upon demand.  Furthermore, in addition to any other
remedies which may be available to the Holder, in the event that the Company
fails for any reason to effect delivery of the Warrant Shares by the Warrant
Share Delivery Date, the Holder may revoke all or part of the relevant Warrant
exercise by delivery of a notice to such effect to the Company whereupon the
Company and the Holder shall each be restored to their respective positions
immediately prior to the exercise of the relevant portion of this Warrant,
except that the liquidated damages described above shall be payable through
the date notice of revocation or rescission is given to the
Company.

     

    1.8           Buy-In.  In
addition to any other rights available to the Holder, if the Company fails to
deliver to a Holder the Warrant Shares as required pursuant to this Warrant,
within seven (7) business days after the Warrant Share Delivery Date and the
Holder or a broker on the Holder’s behalf, purchases (in an open market
transaction or otherwise) shares of common stock to deliver in satisfaction of a
sale by such Holder of the Warrant Shares which the Holder was entitled to
receive from the Company (a "Buy-In"), then the Company
shall pay in cash to the Holder (in addition to any remedies available to or
elected by the Holder) the amount by which (A) the Holder's total purchase price
(including brokerage commissions, if any) for the shares of common stock so
purchased exceeds (B) the aggregate Exercise Price of the Warrant Shares
required to have been delivered together with interest thereon at a rate of 15%
per annum, accruing until such amount and any accrued interest thereon is paid
in full (which amount shall be paid as liquidated damages and not as a
penalty).  For example, if a Holder purchases shares of Common Stock
having a total purchase price of $11,000 to cover a Buy-In with respect to
$10,000 of Exercise Price of Warrant Shares to have been received upon exercise
of this Warrant, the Company shall be required to pay the Holder $1,000, plus
interest. The Holder shall provide the Company written notice indicating the
amounts payable to the Holder in respect of the Buy-In.

     

    2.           Cashless
Exercise.

     

    (a)           If
a registration statement (as described in Section 11 of the Subscription
Agreement) (the “Registration Statement”) is effective and the Holder may sell
its shares of Common Stock upon exercise hereof pursuant to the Registration
Statement, this Warrant may be exercisable in whole or in part for cash only as
set forth in Section 1 above.  If the Registration Statement is not
available, then commencing one year after the Issue Date, payment upon exercise
may be made at the option of the Holder either in (i) cash, wire transfer
or by certified or official bank check payable to the order of the Company equal
to the applicable aggregate Exercise Price, (ii) by delivery of Common Stock
issuable upon exercise of the Warrants in accordance with
Section (b) below or (iii) by a combination of any of the
foregoing

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    methods,
for the number of Common Stock specified in such form (as such exercise number
shall be adjusted to reflect any adjustment in the total number of shares of
Common Stock issuable to the holder per the terms of this Warrant) and the
holder shall thereupon be entitled to receive the number of duly authorized,
validly issued, fully-paid and non-assessable shares of Common Stock (or Other
Securities) determined as provided herein.

     

    (b)           Subject
to the provisions herein to the contrary, if the Fair Market Value of one share
of Common Stock is greater than the Exercise Price (at the date of calculation
as set forth below), in lieu of exercising this Warrant for cash, the holder may
elect to receive shares equal to the value (as determined below) of this Warrant
(or the portion thereof being cancelled) by surrender of this Warrant at the
principal office of the Company together with the properly endorsed Subscription
Form in which event the Company shall issue to the holder a number of shares of
Common Stock computed using the following formula:

     

    X=Y (A-B)

              A

    

    
      	
              
              

            	
              Where 

            	
              X=          the
      number of shares of Common Stock to be issued to the
  holder

            

    

    

    
      	
               
      

            	
              Y=

            	
              the
      number of shares of Common Stock purchasable under the Warrant or, if only
      a portion of the Warrant is being exercised, the portion of the Warrant
      being exercised (at the date of such
  calculation)

            

    

     

    
      	
               
      

            	
              A=

            	
              the
      average Fair Market Value of a share of Common stock for the five (5)
      trading days immediately prior to (but not including) the Exercise
      Date

            

    

     

    
      	
               
      

            	
              B=

            	
              Exercise
      Price (as adjusted to the date of such
  calculation)

            

    

     

    For purposes of Rule 144 promulgated
under the 1933 Act, it is intended, understood and acknowledged that the Warrant
Shares issued in a cashless exercise transaction shall be deemed to have been
acquired by the Holder, and the holding period for the Warrant Shares shall be
deemed to have commenced, on the date this Warrant was originally issued
pursuant to the Subscription Agreement.

     

    3.           Adjustment for
Reorganization, Consolidation, Merger, etc.

     

    3.1.           Reorganization,
Consolidation, Merger, etc.  In case at any time or from time
to time, the Company shall (a) effect a reorganization,
(b) consolidate with or merge into any other person or (c) transfer
all or substantially all of its properties or assets to any other person under
any plan or arrangement contemplating the dissolution of the Company, then, in
each such case, as a condition to the consummation of such a transaction, proper
and adequate provision shall be made by the Company whereby the Holder of this
Warrant, on the exercise hereof as provided in Section 1, at any time after
the consummation of such reorganization, consolidation or merger or the
effective date of such dissolution, as the case may be, shall receive, in lieu
of the Common Stock (or Other Securities) issuable on such exercise prior to
such consummation or such effective date, the stock and other securities and
property (including

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    cash) to
which such Holder would have been entitled upon such consummation or in
connection with such dissolution, as the case may be, if such Holder had so
exercised this Warrant, immediately prior thereto, all subject to further
adjustment thereafter as provided in Section 4.

     

    3.2.           Dissolution.  In
the event of any dissolution of the Company following the transfer of all or
substantially all of its properties or assets, the Company, prior to such
dissolution, shall at its expense deliver or cause to be delivered the stock and
other securities and property (including cash, where applicable) receivable by
the Holder of the Warrants after the effective date of such dissolution pursuant
to this Section 3 to a bank or trust company (a "Trustee") having its
principal office in New York, New York, as trustee for the Holder of the
Warrants.

     

    3.3.           Continuation of
Terms.  Upon any reorganization, consolidation, merger or
transfer (and any dissolution following any transfer) referred to in this
Section 3, this Warrant shall continue in full force and effect and the
terms hereof shall be applicable to the Other Securities and property receivable
on the exercise of this Warrant after the consummation of such reorganization,
consolidation or merger or the effective date of dissolution following any such
transfer, as the case may be, and shall be binding upon the issuer of any Other
Securities, including, in the case of any such transfer, the person acquiring
all or substantially all of the properties or assets of the Company, whether or
not such person shall have expressly assumed the terms of this Warrant as
provided in Section 4.  In the event this Warrant does not
continue in full force and effect after the consummation of the transaction
described in this Section 3, then only in such event will the Company's
securities and property (including cash, where applicable) receivable by the
Holder of the Warrants be delivered to the Trustee as contemplated by
Section 3.2.

     

    3.4           Share
Issuance.  Until the Expiration Date, if the Company shall
issue any Common Stock except for the Excepted Issuances (as defined in the
Subscription Agreement), prior to the complete exercise of this Warrant for a
consideration less than the Exercise Price that would be in effect at the time
of such issue, then, and thereafter successively upon each such issue, the
Exercise Price shall be reduced to such other lower price for then outstanding
Warrants.  For purposes of this adjustment, the issuance of any
security or debt instrument of the Company carrying the right to convert such
security or debt instrument into Common Stock or of any warrant, right or option
to purchase Common Stock shall result in an adjustment to the Exercise Price
upon the issuance of the above-described security, debt
instrument, warrant, right, or option if such issuance is at a price lower
than the Exercise Price in effect upon such issuance and again at any time upon
any subsequent issuances of shares of Common Stock upon exercise of such
conversion or purchase rights if such issuance is at a price lower than the
Exercise Price in effect upon such issuance.  The reduction of the
Exercise Price described in this Section 3.4 is subject to the provisions of,
and in addition to the other rights of the Holder described in, the Subscription
Agreement.

     

    4.           Extraordinary Events
Regarding Common Stock.  In the event that the Company shall
(a) issue additional shares of the Common Stock as a dividend or other
distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of the Common Stock, then, in each such
event, the Exercise Price shall, simultaneously with the happening of such
event, be adjusted by multiplying the then Exercise Price by a fraction,
the

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    numerator
of which shall be the number of shares of Common Stock outstanding immediately
prior to such event and the denominator of which shall be the number of shares
of Common Stock outstanding immediately after such event, and the product so
obtained shall thereafter be the Exercise Price then in effect. The Exercise
Price, as so adjusted, shall be readjusted in the same manner upon the happening
of any successive event or events described herein in this Section 4. The
number of shares of Common Stock that the Holder of this Warrant shall
thereafter, on the exercise hereof, be entitled to receive shall be adjusted to
a number determined by multiplying the number of shares of Common Stock that
would otherwise (but for the provisions of this Section 4 be issuable on such
exercise by a fraction of which (a) the numerator is the Exercise Price that
would otherwise (but for the provisions of this Section 4 be in effect, and (b)
the denominator is the Exercise Price in effect on the date of such
exercise.

     

    5.           Certificate as to
Adjustments.  In each case of any adjustment or readjustment in
the shares of Common Stock (or Other Securities) issuable on the exercise of
this Warrant, the Company at its expense will promptly cause its Chief Financial
Officer or other appropriate designee to compute such adjustment or readjustment
in accordance with the terms of this Warrant and prepare a certificate setting
forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based, including a statement of (a) the
consideration received or receivable by the Company for any additional shares of
Common Stock (or Other Securities) issued or sold or deemed to have been issued
or sold, (b) the number of shares of Common Stock (or Other Securities)
outstanding or deemed to be outstanding, and (c) the Exercise Price and the
number of shares of Common Stock to be received upon exercise of this Warrant,
in effect immediately prior to such adjustment or readjustment and as adjusted
or readjusted as provided in this Warrant. The Company will forthwith mail a
copy of each such certificate to the Holder of this Warrant and any Warrant
Agent of the Company (appointed pursuant to Section 11
hereof).

     

    6.           Reservation of Stock, etc.
Issuable on Exercise of Warrant; Financial Statements.  The
Company will at all times reserve and keep available, solely for issuance and
delivery on the exercise of the Warrants, all shares of Common Stock (or Other
Securities) from time to time issuable on the exercise of the
Warrant.  This Warrant entitles the Holder hereof to receive copies of
all financial and other information distributed or required to be distributed to
the holders of the Company's Common Stock.

     

    7.           Assignment; Exchange of
Warrant.  Subject to compliance with applicable securities
laws, this Warrant, and the rights evidenced hereby, may be transferred by any
registered holder hereof (a "Transferor"). On the surrender for exchange of this
Warrant, with the Transferor's endorsement in the form of Exhibit B
attached hereto (the “Transferor Endorsement Form") and together with an opinion
of counsel reasonably satisfactory to the Company that the transfer of this
Warrant will be in compliance with applicable securities laws, the Company will
issue and deliver to or on the order of the Transferor thereof a new Warrant or
Warrants of like tenor, in the name of the Transferor and/or the transferee(s)
specified in such Transferor Endorsement Form (each a "Transferee"), calling in
the aggregate on the face or faces thereof for the number of shares of Common
Stock called for on the face of the Warrant so surrendered by the
Transferor.

     

    8.           Replacement of
Warrant.  On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    loss,
theft or destruction of this Warrant, on delivery of an indemnity agreement or
security reasonably satisfactory in form and amount to the Company or, in the
case of any such mutilation, on surrender and cancellation of this Warrant, the
Company at its expense, twice only, will execute and deliver, in lieu thereof, a
new Warrant of like tenor.

     

    9.           Registration
Rights.  The Holder of this Warrant has been granted certain
registration rights by the Company.  These registration rights are set
forth in the Subscription Agreement.  The terms of the Subscription
Agreement are incorporated herein by this reference.

     

    10.           Maximum
Exercise.  The Holder shall not be entitled to exercise this
Warrant on an exercise date, in connection with that number of shares of Common
Stock which would be in excess of the sum of (a) the number of shares of
Common Stock beneficially owned by the Holder and its affiliates on an exercise
date, and (b) the number of shares of Common Stock issuable upon the
exercise of this Warrant with respect to which the determination of this
limitation is being made on an exercise date, which would result in beneficial
ownership by the Holder and its affiliates of more than 4.99% of the outstanding
shares of Common Stock on such date.  For the purposes of the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934,
as amended, and Regulation 13d-3 thereunder.  Subject to the
foregoing, the Holder shall not be limited to aggregate exercises which would
result in the issuance of more than 4.99%.  The restriction described
in this paragraph may be waived, in whole or in part, upon sixty-one (61)
days prior notice from the Holder to the Company to increase such percentage to
up to 9.99%, but not in excess of 9.99%.  The Holder may decide
whether to convert a Note or exercise this Warrant to achieve an actual 4.99% or
up to 9.99% ownership position as described above, but not in excess of
9.99%.

     

    11.           Warrant
Agent.  The Company may, by written notice to the Holder of the
Warrant, appoint an agent (a “Warrant Agent”) for the purpose of issuing Common
Stock (or Other Securities) on the exercise of this Warrant pursuant to
Section 1, exchanging this Warrant pursuant to Section 7, and
replacing this Warrant pursuant to Section 8, or any of the foregoing, and
thereafter any such issuance, exchange or replacement, as the case may be, shall
be made at such office by such Warrant Agent.

     

    12.           Transfer on the Company's
Books.  Until this Warrant is transferred on the books of the
Company, the Company may treat the registered Holder hereof as the absolute
owner hereof for all purposes, notwithstanding any notice to the
contrary.

     

    13.           Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (a) personally served, (b) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (c)
delivered by reputable overnight courier service with charges prepaid, or (d)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (i) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    normal
business hours where such notice is to be received), (ii) on the first business
day following the date deposited with an overnight courier service with charges
prepaid, or (iii) on the third business day following the date of mailing
pursuant to subpart (b) above, or upon actual receipt of such mailing, whichever
shall first occur.  The addresses for such communications shall
be:  if to the Company, to: BigString Corporation, 3 Harding Road,
Suite F, Red Bank, NJ 07701, Attn: Darin M. Myman, President and Chief Executive
Officer, telecopier: (732) 741-2842, with a copy by telecopier only to:
Giordano, Halleran & Ciesla, P.C., 125 Half Mile Road, P.O. Box 190,
Middletown, NJ 07748, Attn: Paul T. Colella, Esq., telecopier: (732) 224-6599,
and (ii) if to the Holder, to the address and telecopier number listed on the
first paragraph of this Warrant, with a copy by telecopier only to: Grushko
& Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York 10176,
telecopier number: (212) 697-3575.

     

    14.           Miscellaneous.  This
Warrant shall be governed by and construed in accordance with the laws of the
State of New Jersey without regard to principles of conflicts of
laws.  Any action brought by either party against the other concerning
the transactions contemplated by this Warrant shall be brought only in the state
courts of New Jersey or in the federal courts located in the State of New
Jersey.  The parties to this Warrant hereby irrevocably waive any
objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon
forum non
conveniens.  The Company and Holder waive trial by
jury.  The prevailing party shall be entitled to recover from the
other party its reasonable attorney's fees and costs.  In the event
that any provision of this Warrant or any other agreement delivered in
connection herewith is invalid or unenforceable under any applicable statute or
rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such
statute or rule of law.  Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of
any other provision of any agreement.

     

    

     

    [THIS
SPACE INTENTIONALLY LEFT BLANK]

     

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first
written above.

     

    
      
        
          	 
      	
                  BIGSTRING
      CORPORATION

                
	 	 
	 	 
	 
      	
                  By:

                	
                   

                
	 
      	 
      	
                  Name:
      Darin M. Myman

                
	 
      	 
      	
                  Title:
      President and Chief Executive
Officer

                

        

      

    

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Exhibit A

    

    FORM OF
SUBSCRIPTION

    (to be
signed only on exercise of Warrant)

    TO:  BIGSTRING
CORPORATION

    The
undersigned, pursuant to the provisions set forth in the attached Warrant
(No.____) (the “Warrant”), hereby irrevocably elects to purchase (check
applicable box):

    

    ___           ________
shares of the Common Stock covered by the Warrant; or

    ___           the
maximum number of shares of Common Stock covered by the Warrant pursuant to the
cashless exercise procedure set forth in Section 2 of the
Warrant.

    

    The
undersigned herewith makes payment of the full Exercise Price for such shares at
the price per share provided for in the Warrant, which is
$___________.  Such payment takes the form of (check applicable box or
boxes):

    

    ___           $__________
in lawful money of the United States; and/or

    

    ___           the
cancellation of such number of shares of Common Stock as is necessary, in
accordance with the formula set forth in Section 2 of the Warrant, to
exercise the Warrant with respect to the maximum number of shares of Common
Stock purchasable pursuant to the cashless exercise procedure set forth in
Section 2 of the Warrant.

    

    The
undersigned requests that the certificates for such shares be issued in the name
of, and delivered to _____________________________________________________ whose
address is
_____________________________________________________________________________.

    

    The
undersigned represents and warrants that all offers and sales by the undersigned
of the securities issuable upon exercise of the  Warrant shall be made
pursuant to registration of the Common Stock covered by the Warrant under the
Securities Act of 1933, as amended (the "Securities Act"), or pursuant to an
exemption from registration under the Securities Act.

    

    
      	
              Dated:___________________

            	 
      
	 
      	
              (Signature
      must conform to name of holder as specified on the face of the
      Warrant)

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              (Address)

            

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Exhibit B

    

    FORM OF
TRANSFEROR ENDORSEMENT

    (To be
signed only on transfer of Warrant)

     

    For value
received, the undersigned transferor (the “Transferor”) hereby sells, assigns,
and transfers unto the person(s) named below under the heading "Transferees" the
right represented by the attached Warrant (No. _____) (the “Warrant”) to
purchase the percentage and number of shares of Common Stock of BIGSTRING
CORPORATION to which the Warrant relates specified under the headings
"Percentage Transferred" and "Number Transferred," respectively, opposite the
name(s) of such person(s) and appoints each such person attorney to transfer its
respective right on the books of BIGSTRING CORPORATION with full power of
substitution in the premises.

     

    
      	
              Transferees

            	
              Percentage
      Transferred

            	
              Number
      Transferred

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

     

    
      
        	 	 	 	[TRANSFEROR] 
	 
      	 
      	 
      	 
      
	
                Dated:______________,

              	 
      	 
      	 
      
	 
      	 
      	 
      	
                (Signature
      must conform to name of Holder as specified on the face of the
      Warrant)

              
	 
      	 
      	 
      	 
      
	
                Signed
      in the presence of:

              	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
                (Signature)

              	 
      	 
      
	 
      	 
      	 
      	
                (address)

              
	 
      	 
      	 
      
	
                (Print
      Name)

              	 
      	 
      
	 
      	 
      	 
      	
                ACCEPTED
      AND AGREED:

                [TRANSFEREE]

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                Dated:______________,

              	 
      	 
      	
                (Signature)

              
	 
      	 
      	 
      	 
      
	
                Signed
      in the presence of:

              	 
      	 
      
	 
      	 
      	 
      	
                (Print
      Name)

              
	 
      	 
      	 
      
	
                (Signature)

              	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
                (Print
      Name)

              	 
      	
                (address)

              

      

    

    

    12

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