Document:

[EXHIBIT 10.16]

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
     BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED (THE "ACT").  THE SECURITIES MAY NOT BE SOLD,
     TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
     REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID
     ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND
     SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE
     TRANSACTIONS THAT REGISTRATION IS NOT REQUIRED UNDER
     SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 OR
     REGULATION S UNDER SAID ACT.

              CALLABLE SECURED CONVERTIBLE NOTE

Boca Raton, Florida
March 30, 2005                                            $14,800

          FOR VALUE RECEIVED, MED GEN, INC., a Nevada corporation
(hereinafter called the "Borrower"), hereby promises to pay to
the order of NEW MILLENNIUM CAPITAL PARTNERS II, LLC or
registered assigns (the "Holder") the sum of $14,800, on March
30, 2008 (the "Maturity Date"), and to pay interest on the unpaid
principal balance hereof at the rate of eight percent (8%) (the
"Interest Rate") per annum from March 30, 2005 (the "Issue Date")
until the same becomes due and payable, whether at maturity or
upon acceleration or by prepayment or otherwise.  Any amount of
principal or interest on this Note which is not paid when due
shall bear interest at the rate of fifteen percent (15%) per
annum from the due date thereof until the same is paid ("Default
Interest").  Interest shall commence accruing on the Issue Date,
shall be computed on the basis of a 365-day year and the actual
number of days elapsed and shall be payable quarterly provided
that no interest shall be due and payable for any month in which
the Trading Price (as such term is defined below) is greater than
$.0644 for each Trading Day (as such term is defined below) of
the month. All payments due hereunder (to the extent not
converted into common stock, $.001 par value per share (the
"Common Stock") in accordance with the terms hereof) shall be
made in lawful money of the United States of America.  All
payments shall be made at such address as the Holder shall
hereafter give to the Borrower by written notice made in
accordance with the provisions of this Note.  Whenever any amount
expressed to be due by the terms of this Note is due on any day
which is not a business day, the same shall instead be due on the
next succeeding day which is a business day and, in the case of
any interest payment date which is not the date on which this
Note is paid in full, the extension of the due date thereof shall
not be taken into account for purposes of determining the amount
of interest due on such date.  As used in this Note, the term
"business day" shall mean any day other than a Saturday, Sunday
or a day on which commercial banks in the city of New York, New
York are authorized or required by law or executive order to

<PAGE>

remain closed.  Each capitalized term used herein, and not
otherwise defined, shall have the meaning ascribed thereto in
that certain Securities Purchase Agreement, dated March 30, 2005,
pursuant to which this Note was originally issued (the "Purchase
Agreement").

     This Note is free from all taxes, liens, claims and
encumbrances with respect to the issue thereof and shall not be
subject to preemptive rights or other similar rights of
shareholders of the Borrower and will not impose personal
liability upon the holder thereof.  The obligations of the
Borrower under this Note shall be secured by that certain
Security Agreement and Intellectual Property Security Agreement,
each dated March 30, 2005 by and between the Borrower and the
Holder.

     The following terms shall apply to this Note:

             ARTICLE I.     CONVERSION RIGHTS

     1.1  Conversion Right.  The Holder shall have the right from time
          ----------------
to time, and at any time on or prior to the earlier of (i) the
Maturity Date and (ii) the date of payment of the Default Amount
(as defined in Article III) pursuant to Section 1.6(a) or Article
III, the Optional Prepayment Amount (as defined in Section 5.1 or
any payments pursuant to Section 1.7, each in respect of the
remaining outstanding principal amount of this Note to convert
all or any part of the outstanding and unpaid principal amount of
this Note into fully paid and non-assessable shares of Common
Stock, as such Common Stock exists on the Issue Date, or any
shares of capital stock or other securities of the Borrower into
which such Common Stock shall hereafter be changed or
reclassified at the conversion price  (the "Conversion Price")
determined as provided herein (a "Conversion"); provided,
however, that in no event shall the Holder be entitled to convert
any portion of this Note in excess of that portion of this Note
upon conversion of which the sum of (1) the number of shares of
Common Stock beneficially owned by the Holder and its affiliates
(other than shares of Common Stock which may be deemed
beneficially owned through the ownership of the unconverted
portion of the Notes or the unexercised or unconverted portion of
any other security of the Borrower (including, without
limitation, the warrants issued by the Borrower pursuant to the
Purchase Agreement) subject to a limitation on conversion or
exercise analogous to the limitations contained herein) and (2)
the number of shares of Common Stock issuable upon the conversion
of the portion of this Note with respect to which the
determination of this proviso is being made, would result in
beneficial ownership by the Holder and its affiliates of more
than 4.99% of the outstanding shares of Common Stock and provided
further that the Holder shall not be entitled to convert any
portion of this Note during any month immediately succeeding a
Determination Date on which the Borrower exercises its prepayment
option pursuant to Section 5.2 of this Note.  For purposes of the
proviso 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 Regulations
13D-G thereunder, except as otherwise provided in clause (1) of
such proviso.  The number of shares of Common Stock to be issued
upon each conversion of this Note shall be determined by dividing
the Conversion Amount (as defined below) by the applicable
Conversion Price then in effect on the date specified in the
notice of conversion, in the form attached hereto as Exhibit A
(the "Notice of Conversion"), delivered to the Borrower by the
Holder in accordance with Section 1.4 below; provided that the
Notice of Conversion is submitted by facsimile (or by other means

                            2
<PAGE>

resulting in, or reasonably expected to result in, notice) to the
Borrower before 6:00 p.m., New York, New York time on such
conversion date (the "Conversion Date").  The term "Conversion
Amount" means, with respect to any conversion of this Note, the
sum of (1) the principal amount of this Note to be converted in
such conversion plus (2) accrued and unpaid interest, if any, on
such principal amount at the interest rates provided in this Note
to the Conversion Date plus (3) Default Interest, if any, on the
amounts referred to in the immediately preceding clauses (1)
and/or (2) plus (4) at the Holder's option, any amounts owed to
the Holder pursuant to Sections 1.3 and 1.4(g) hereof or pursuant
to Section 2(c) of that certain Registration Rights Agreement,
dated as of March 30, 2005, executed in connection with the
initial issuance of this Note and the other Notes issued on the
Issue Date (the "Registration Rights Agreement").  The term
"Determination Date" means the last business day of each month
after the Issue Date.

     1.2  Conversion Price.
          ----------------

          (a)  Calculation of Conversion Price.  The Conversion Price
               -------------------------------
shall be the lesser of (i) the Variable Conversion Price (as defined
herein) and (ii) the Fixed Conversion Price (as defined herein)
(subject, in each case, to equitable adjustments for stock
splits, stock dividends or rights offerings by the Borrower
relating to the Borrower's securities or the securities of any
subsidiary of the Borrower, combinations, recapitalization,
reclassifications, extraordinary distributions and similar
events).  The "Variable Conversion Price" shall mean the
Applicable Percentage (as defined herein) multiplied by the
Market Price (as defined herein).  "Market Price" means the
average of the lowest three (3) Trading Prices (as defined below)
for the Common Stock during the twenty (20) Trading Day period
ending one Trading Day prior to the date the Conversion Notice is
sent by the Holder to the Borrower via facsimile (the "Conversion
Date").  "Trading Price" means, for any security as of any date,
the intraday trading price on the Over-the-Counter Bulletin Board
(the "OTCBB") as reported by a reliable reporting service
mutually acceptable to and hereafter designated by Holders of a
majority in interest of the Notes and the Borrower or, if the
OTCBB is not the principal trading market for such security, the
intraday trading price of such security on the principal
securities exchange or trading market where such security is
listed or traded or, if no intraday trading price of such
security is available in any of the foregoing manners, the
average of the intraday trading prices of any market makers for
such security that are listed in the "pink sheets" by the
National Quotation Bureau, Inc.  If the Trading Price cannot be
calculated for such security on such date in the manner provided
above, the Trading Price shall be the fair market value as
mutually determined by the Borrower and the holders of a majority
in interest of the Notes being converted for which the
calculation of the Trading Price is required in order to
determine the Conversion Price of such Notes.  "Trading Day"
shall mean any day on which the Common Stock is traded for any
period on the OTCBB, or on the principal securities exchange or
other securities market on which the Common Stock is then being
traded.  "Applicable Percentage" shall mean 60.0%.  The "Fixed
Conversion Price" shall mean $.09.

          (b)  Conversion Price During Major Announcements.
               -------------------------------------------
Notwithstanding anything contained in Section 1.2(a) to the
contrary, in the event the Borrower (i) makes a public
announcement that it intends to consolidate or merge with any
other corporation (other than a merger in which the Borrower is
the surviving or continuing corporation and its capital stock is
unchanged) or sell or transfer all or substantially all of the

                            3
<PAGE>

assets of the Borrower or (ii) any person, group or entity
(including the Borrower) publicly announces a tender offer to
purchase 50% or more of the Borrower's Common Stock (or any other
takeover scheme) (the date of the announcement referred to in
clause (i) or (ii) is hereinafter referred to as the
"Announcement Date"), then the Conversion Price shall, effective
upon the Announcement Date and continuing through the Adjusted
Conversion Price Termination Date (as defined below), be equal to
the lower of (x) the Conversion Price which would have been
applicable for a Conversion occurring on the Announcement Date
and (y) the Conversion Price that would otherwise be in effect.
From and after the Adjusted Conversion Price Termination Date,
the Conversion Price shall be determined as set forth in this
Section 1.2(a).  For purposes hereof,  "Adjusted Conversion Price
Termination Date" shall mean, with respect to any proposed
transaction or tender offer (or takeover scheme) for which a
public announcement as contemplated by this Section 1.2(b) has
been made, the date upon which the Borrower (in the case of
clause (i) above) or the person, group or entity (in the case of
clause (ii) above) consummates or publicly announces the
termination or abandonment of the proposed transaction or tender
offer (or takeover scheme) which caused this Section 1.2(b) to
become operative.

     1.3  Authorized Shares.  Subject to the Stockholder Approval (as
          -----------------
defined in the Agreement), the Borrower covenants that during the
period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number
of shares, free from preemptive rights, to provide for the
issuance of Common Stock upon the full conversion of this Note
and the other Notes issued pursuant to the Purchase Agreement.
The Borrower is required at all times to have authorized and
reserved two times the number of shares that is actually issuable
upon full conversion of the Notes (based on the Conversion Price
of the Notes or the Exercise Price of the Warrants in effect from
time to time) (the "Reserved Amount").  The Reserved Amount shall
be increased from time to time in accordance with the Borrower's
obligations pursuant to Section 4(h) of the Purchase Agreement.
The Borrower represents that upon issuance, such shares will be
duly and validly issued, fully paid and non-assessable.  In
addition, if the Borrower shall issue any securities or make any
change to its capital structure which would change the number of
shares of Common Stock into which the Notes shall be convertible
at the then current Conversion Price, the Borrower shall at the
same time make proper provision so that thereafter there shall be
a sufficient number of shares of Common Stock authorized and
reserved, free from preemptive rights, for conversion of the
outstanding Notes.  The Borrower (i) acknowledges that it has
irrevocably instructed its transfer agent to issue certificates
for the Common Stock issuable upon conversion of this Note, and
(ii) agrees that its issuance of this Note shall constitute full
authority to its officers and agents who are charged with the
duty of executing stock certificates to execute and issue the
necessary certificates for shares of Common Stock in accordance
with the terms and conditions of this Note.

     If, at any time a Holder of this Note submits a Notice
of Conversion, and the Borrower does not have sufficient
authorized but unissued shares of Common Stock available to
effect such conversion in accordance with the provisions of this
Article I (a "Conversion Default"), subject to Section 4.8, the
Borrower shall issue to the Holder all of the shares of Common
Stock which are then available to effect such conversion.  The
portion of this Note which the Holder included in its Conversion
Notice and which exceeds the amount which is then convertible
into available shares of Common Stock (the "Excess Amount")

                            4
<PAGE>

shall, notwithstanding anything to the contrary contained herein,
not be convertible into Common Stock in accordance with the terms
hereof until (and at the Holder's option at any time after) the
date additional shares of Common Stock are authorized by the
Borrower to permit such conversion, at which time the Conversion
Price in respect thereof shall be the lesser of (i) the
Conversion Price on the Conversion Default Date (as defined
below) and (ii) the Conversion Price on the Conversion Date
thereafter elected by the Holder in respect thereof.  In
addition, the Borrower shall pay to the Holder payments
("Conversion Default Payments") for a Conversion Default in the
amount of (x) the sum of (1) the then outstanding principal
amount of this Note plus (2) accrued and unpaid interest on the
unpaid principal amount of this Note through the Authorization
Date (as defined below) plus (3) Default Interest, if any, on the
amounts referred to in clauses (1) and/or (2), multiplied by (y)
..24, multiplied by (z) (N/365), where N = the number of days from
the day the holder submits a Notice of Conversion giving rise to
a Conversion Default (the "Conversion Default Date") to the date
(the "Authorization Date") that the Borrower authorizes a
sufficient number of shares of Common Stock to effect conversion
of the full outstanding principal balance of this Note.  The
Borrower shall use its best efforts to authorize a sufficient
number of shares of Common Stock as soon as practicable following
the earlier of (i) such time that the Holder notifies the
Borrower or that the Borrower otherwise becomes aware that there
are or likely will be insufficient authorized and unissued shares
to allow full conversion thereof and (ii) a Conversion Default.
The Borrower shall send notice to the Holder of the authorization
of additional shares of Common Stock, the Authorization Date and
the amount of Holder's accrued Conversion Default Payments.  The
accrued Conversion Default Payments for each calendar month shall
be paid in cash or shall be convertible into Common Stock (at
such time as there are sufficient authorized shares of Common
Stock) at the applicable Conversion Price, at the Borrower's
option, as follows:

          (a)  In the event Holder elects to take such payment in
cash, cash payment shall be made to Holder by the fifth (5th) day of
the month following the month in which it has accrued; and

          (b)  In the event Holder elects to take such payment in
Common Stock, the Holder may convert such payment amount into Common
Stock at the Conversion Price (as in effect at the time of
conversion) at any time after the fifth day of the month
following the month in which it has accrued in accordance with
the terms of this Article I (so long as there is then a
sufficient number of authorized shares of Common Stock).

     The Holder's election shall be made in writing to the
Borrower at any time prior to 6:00 p.m., New York, New York time,
on the third day of the month following the month in which
Conversion Default payments have accrued.  If no election is
made, the Holder shall be deemed to have elected to receive cash.
Nothing herein shall limit the Holder's right to pursue actual
damages (to the extent in excess of the Conversion Default
Payments) for the Borrower's failure to maintain a sufficient
number of authorized shares of Common Stock, and each holder
shall have the right to pursue all remedies available at law or
in equity (including degree of specific performance and/or
injunctive relief).

     1.4  Method of Conversion.
          --------------------

                            5
<PAGE>

          (a)  Mechanics of Conversion.  Subject to Section 1.1, this
               -----------------------
Note may be converted by the Holder in whole or in part at any time
from time to time after the Issue Date, by (A) submitting to the
Borrower a Notice of Conversion (by facsimile or other reasonable
means of communication dispatched on the Conversion Date prior to
6:00 p.m., New York, New York time) and (B) subject to Section
1.4(b), surrendering this Note at the principal office of the
Borrower.

          (b)  Surrender of Note Upon Conversion.  Notwithstanding
               ---------------------------------
anything to the contrary set forth herein, upon conversion of this
Note in accordance with the terms hereof, the Holder shall not be
required to physically surrender this Note to the Borrower unless
the entire unpaid principal amount of this Note is so converted.
The Holder and the Borrower shall maintain records showing the
principal amount so converted and the dates of such conversions
or shall use such other method, reasonably satisfactory to the
Holder and the Borrower, so as not to require physical surrender
of this Note upon each such conversion.  In the event of any
dispute or discrepancy, such records of the Borrower shall be
controlling and determinative in the absence of manifest error.
Notwithstanding the foregoing, if any portion of this Note is
converted as aforesaid, the Holder may not transfer this Note
unless the Holder first physically surrenders this Note to the
Borrower, whereupon the Borrower will forthwith issue and deliver
upon the order of the Holder a new Note of like tenor, registered
as the Holder (upon payment by the Holder of any applicable
transfer taxes) may request, representing in the aggregate the
remaining unpaid principal amount of this Note.  The Holder and
any assignee, by acceptance of this Note, acknowledge and agree
that, by reason of the provisions of this paragraph, following
conversion of a portion of this Note, the unpaid and unconverted
principal amount of this Note represented by this Note may be
less than the amount stated on the face hereof.

          (c)  Payment of Taxes.  The Borrower shall not be required
               ----------------
to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock or other
securities or property on conversion of this Note in a name other
than that of the Holder (or in street name), and the Borrower
shall not be required to issue or deliver any such shares or
other securities or property unless and until the person or
persons (other than the Holder or the custodian in whose street
name such shares are to be held for the Holder's account)
requesting the issuance thereof shall have paid to the Borrower
the amount of any such tax or shall have established to the
satisfaction of the Borrower that such tax has been paid.

          (d)  Delivery of Common Stock Upon Conversion.  Upon
               ----------------------------------------
receipt by the Borrower from the Holder of a facsimile transmission
(or other reasonable means of communication) of a Notice of
Conversion meeting the requirements for conversion as provided in
this Section 1.4, the Borrower shall issue and deliver or cause
to be issued and delivered to or upon the order of the Holder
certificates for the Common Stock issuable upon such conversion
within two (2) business days after such receipt (and, solely in
the case of conversion of the entire unpaid principal amount
hereof, surrender of this Note) (such second business day being
hereinafter referred to as the "Deadline") in accordance with the
terms hereof and the Purchase Agreement (including, without
limitation, in accordance with the requirements of Section 2(g)
of the Purchase Agreement that certificates for shares of Common
Stock issued on or after the effective date of the Registration
Statement upon conversion of this Note shall not bear any
restrictive legend).

                            6
<PAGE>

          (e)  Obligation of Borrower to Deliver Common Stock.  Upon
               ----------------------------------------------
receipt by the Borrower of a Notice of Conversion, the Holder
shall be deemed to be the holder of record of the Common Stock
issuable upon such conversion, the outstanding principal amount
and the amount of accrued and unpaid interest on this Note shall
be reduced to reflect such conversion, and, unless the Borrower
defaults on its obligations under this Article I, all rights with
respect to the portion of this Note being so converted shall
forthwith terminate except the right to receive the Common Stock
or other securities, cash or other assets, as herein provided, on
such conversion.  If the Holder shall have given a Notice of
Conversion as provided herein, the Borrower's obligation to issue
and deliver the certificates for Common Stock shall be absolute
and unconditional, irrespective of the absence of any action by
the Holder to enforce the same, any waiver or consent with
respect to any provision thereof, the recovery of any judgment
against any person or any action to enforce the same, any failure
or delay in the enforcement of any other obligation of the
Borrower to the holder of record, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged
breach by the Holder of any obligation to the Borrower, and
irrespective of any other circumstance which might otherwise
limit such obligation of the Borrower to the Holder in connection
with such conversion.  The Conversion Date specified in the
Notice of Conversion shall be the Conversion Date so long as the
Notice of Conversion is received by the Borrower before 6:00
p.m., New York, New York time, on such date.

          (f)  Delivery of Common Stock by Electronic Transfer.  In
               -----------------------------------------------
lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Borrower's transfer agent
is participating in the Depository Trust Company ("DTC") Fast
Automated Securities Transfer ("FAST") program, upon request of
the Holder and its compliance with the provisions contained in
Section 1.1 and in this Section 1.4, the Borrower shall use its
best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Holder
by crediting the account of Holder's Prime Broker with DTC
through its Deposit Withdrawal Agent Commission ("DWAC") system.

          (g)  Failure to Deliver Common Stock Prior to Deadline.
               -------------------------------------------------
Without in any way limiting the Holder's right to pursue other
remedies, including actual damages and/or equitable relief, the
parties agree that if delivery of the Common Stock issuable upon
conversion of this Note is more than two (2) days after the
Deadline (other than a failure due to the circumstances described
in Section 1.3 above, which failure shall be governed by such
Section) the Borrower shall pay to the Holder $2,000 per day in
cash, for each day beyond the Deadline that the Borrower fails to
deliver such Common Stock.  Such cash amount shall be paid to
Holder by the fifth day of the month following the month in which
it has accrued or, at the option of the Holder (by written notice
to the Borrower by the first day of the month following the month
in which it has accrued), shall be added to the principal amount
of this Note, in which event interest shall accrue thereon in
accordance with the terms of this Note and such additional
principal amount shall be convertible into Common Stock in
accordance with the terms of this Note.

     1.5  Concerning the Shares.  The shares of Common Stock issuable
          ---------------------
upon conversion of this Note may not be sold or transferred
unless  (i) such shares are sold pursuant to an effective
registration statement under the Act or (ii) the Borrower or its
transfer agent shall have been furnished with an opinion of
counsel (which opinion shall be in form, substance and scope

                            7
<PAGE>

customary for opinions of counsel in comparable transactions) to
the effect that the shares to be sold or transferred may be sold
or transferred pursuant to an exemption from such registration or
(iii) such shares are sold or transferred pursuant to Rule 144
under the Act (or a successor rule) ("Rule 144") or (iv) such
shares are transferred to an "affiliate" (as defined in Rule 144)
of the Borrower who agrees to sell or otherwise transfer the
shares only in accordance with this Section 1.5 and who is an
Accredited Investor (as defined in the Purchase Agreement).
Except as otherwise provided in the Purchase Agreement (and
subject to the removal provisions set forth below), until such
time as the shares of Common Stock issuable upon conversion of
this Note have been registered under the Act as contemplated by
the Registration Rights Agreement or otherwise may be sold
pursuant to Rule 144 without any restriction as to the number of
securities as of a particular date that can then be immediately
sold, each certificate for shares of Common Stock issuable upon
conversion of this Note that has not been so included in an
effective registration statement or that has not been sold
pursuant to an effective registration statement or an exemption
that permits removal of the legend, shall bear a legend
substantially in the following form, as appropriate:

     "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
     NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED.  THE SECURITIES MAY NOT BE SOLD,
     TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
     REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID
     ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND
     SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE
     TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER
     SAID ACT UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION
     S UNDER SAID ACT."

     The legend set forth above shall be removed and the
Borrower shall issue to the Holder a new certificate therefor
free of any transfer legend if (i) the Borrower or its transfer
agent shall have received an opinion of counsel, in form,
substance and scope customary for opinions of counsel in
comparable transactions, to the effect that a public sale or
transfer of such Common Stock may be made without registration
under the Act and the shares are so sold or transferred, (ii)
such Holder provides the Borrower or its transfer agent with
reasonable assurances that the Common Stock issuable upon
conversion of this Note (to the extent such securities are deemed
to have been acquired on the same date) can be sold pursuant to
Rule 144 or (iii) in the case of the Common Stock issuable upon
conversion of this Note, such security is registered for sale by
the Holder under an effective registration statement filed under
the Act or otherwise may be sold pursuant to Rule 144 without any
restriction as to the number of securities as of a particular
date that can then be immediately sold.  Nothing in this Note
shall (i) limit the Borrower's obligation under the Registration
Rights Agreement or (ii) affect in any way the Holder's
obligations to comply with applicable prospectus delivery
requirements upon the resale of the securities referred to
herein.

     1.6  Effect of Certain Events.
          ------------------------

          (a)  Effect of Merger, Consolidation, Etc.  At the option
               ------------------------------------
of the Holder, the sale, conveyance or disposition of all or
substantially all of the assets of the Borrower, the effectuation
by the Borrower of a transaction or series of related

                            8
<PAGE>

transactions in which more than 50% of the voting power of the
Borrower is disposed of, or the consolidation, merger or other
business combination of the Borrower with or into any other
Person (as defined below) or Persons when the Borrower is not the
survivor shall either:  (i) be deemed to be an Event of Default
(as defined in Article III) pursuant to which the Borrower shall
be required to pay to the Holder upon the consummation of and as
a condition to such transaction an amount equal to the Default
Amount (as defined in Article III) or (ii) be treated pursuant to
Section 1.6(b) hereof.  "Person" shall mean any individual,
corporation, limited liability company, partnership, association,
trust or other entity or organization.

          (b)  Adjustment Due to Merger, Consolidation, Etc.  If, at
               --------------------------------------------
any time when this Note is issued and outstanding and prior to
conversion of all of the Notes, there shall be any merger,
consolidation, exchange of shares, recapitalization,
reorganization, or other similar event, as a result of which
shares of Common Stock of the Borrower shall be changed into the
same or a different number of shares of another class or classes
of stock or securities of the Borrower or another entity, or in
case of any sale or conveyance of all or substantially all of the
assets of the Borrower other than in connection with a plan of
complete liquidation of the Borrower, then the Holder of this
Note shall thereafter have the right to receive upon conversion
of this Note, upon the basis and upon the terms and conditions
specified herein and in lieu of the shares of Common Stock
immediately theretofore issuable upon conversion, such stock,
securities or assets which the Holder would have been entitled to
receive in such transaction had this Note been converted in full
immediately prior to such transaction (without regard to any
limitations on conversion set forth herein), and in any such case
appropriate provisions shall be made with respect to the rights
and interests of the Holder of this Note to the end that the
provisions hereof (including, without limitation, provisions for
adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be
applicable, as nearly as may be practicable in relation to any
securities or assets thereafter deliverable upon the conversion
hereof.  The Borrower shall not effect any transaction described
in this Section 1.6(b) unless (a) it first gives, to the extent
practicable, thirty (30) days prior written notice (but in any
event at least fifteen (15) days prior written notice) of the
record date of the special meeting of shareholders to approve, or
if there is no such record date, the consummation of, such
merger, consolidation, exchange of shares, recapitalization,
reorganization or other similar event or sale of assets (during
which time the Holder shall be entitled to convert this Note) and
(b) the resulting successor or acquiring entity (if not the
Borrower) assumes by written instrument the obligations of this
Section 1.6(b).  The above provisions shall similarly apply to
successive consolidations, mergers, sales, transfers or share
exchanges.

          (c)  Adjustment Due to Distribution.  If the Borrower
               ------------------------------
shall declare or make any distribution of its assets (or rights to
acquire its assets) to holders of Common Stock as a dividend,
stock repurchase, by way of return of capital or otherwise
(including any dividend or distribution to the Borrower's
shareholders in cash or shares (or rights to acquire shares) of
capital stock of a subsidiary (i.e., a spin-off)) (a
"Distribution"), then the Holder of this Note shall be entitled,
upon any conversion of this Note after the date of record for
determining shareholders entitled to such Distribution, to
receive the amount of such assets which would have been payable
to the Holder with respect to the shares of Common Stock issuable
upon such conversion had such Holder been the holder of such
shares of Common Stock on the record date for the determination
of shareholders entitled to such Distribution.

                            9
<PAGE>

          (d)  Adjustment Due to Dilutive Issuance.  If, at any
               -----------------------------------
time when any Notes are issued and outstanding, the Borrower issues
or sells, or in accordance with this Section 1.6(d) hereof is deemed
to have issued or sold, any shares of Common Stock for no
consideration or for a consideration per share (before deduction
of reasonable expenses or commissions or underwriting discounts
or allowances in connection therewith) less than the Fixed
Conversion Price in effect on the date of such issuance (or
deemed issuance) of such shares of Common Stock (a "Dilutive
Issuance"), then immediately upon the Dilutive Issuance, the
Fixed Conversion Price will be reduced to the amount of the
consideration per share received by the Borrower in such Dilutive
Issuance; provided that only one adjustment will be made for each
Dilutive Issuance.

          The Borrower shall be deemed to have issued or
sold shares of Common Stock if the Borrower in any manner issues
or grants any warrants, rights or options (not including employee
stock option plans), whether or not immediately exercisable, to
subscribe for or to purchase Common Stock or other securities
convertible into or exchangeable for Common Stock ("Convertible
Securities") (such warrants, rights and options to purchase
Common Stock or Convertible Securities are hereinafter referred
to as "Options") and the price per share for which Common Stock
is issuable upon the exercise of such Options is less than the
Fixed Conversion Price then in effect, then the Fixed Conversion
Price shall be equal to such price per share.  For purposes of
the preceding sentence, the "price per share for which Common
Stock is issuable upon the exercise of such Options" is
determined by dividing (i) the total amount, if any, received or
receivable by the Borrower as consideration for the issuance or
granting of all such Options, plus the minimum aggregate amount
of additional consideration, if any, payable to the Borrower upon
the exercise of all such Options, plus, in the case of
Convertible Securities issuable upon the exercise of such
Options, the minimum aggregate amount of additional consideration
payable upon the conversion or exchange thereof at the time such
Convertible Securities first become convertible or exchangeable,
by (ii) the maximum total number of shares of Common Stock
issuable upon the exercise of all such Options (assuming full
conversion of Convertible Securities, if applicable).  No further
adjustment to the Conversion Price will be made upon the actual
issuance of such Common Stock upon the exercise of such Options
or upon the conversion or exchange of Convertible Securities
issuable upon exercise of such Options.

          Additionally, the Borrower shall be deemed to have
issued or sold shares of Common Stock if the Borrower in any
manner issues or sells any Convertible Securities, whether or not
immediately convertible (other than where the same are issuable
upon the exercise of Options), and the price per share for which
Common Stock is issuable upon such conversion or exchange is less
than the Fixed Conversion Price then in effect, then the Fixed
Conversion Price shall be equal to such price per share.  For the
purposes of the preceding sentence, the "price per share for
which Common Stock is issuable upon such conversion or exchange"
is determined by dividing (i) the total amount, if any, received
or receivable by the Borrower as consideration for the issuance
or sale of all such Convertible Securities, plus the minimum
aggregate amount of additional consideration, if any, payable to
the Borrower upon the conversion or exchange thereof at the time
such Convertible Securities first become convertible or
exchangeable, by (ii) the maximum total number of shares of
Common Stock issuable upon the conversion or exchange of all such
Convertible Securities.  No further adjustment to the Fixed
Conversion Price will be made upon the actual issuance of such
Common Stock upon conversion or exchange of such Convertible
Securities.

                            10
<PAGE>

          (e)  Purchase Rights.  If, at any time when any Notes are
               ---------------
issued and outstanding, the Borrower issues any convertible securities
or rights to purchase stock, warrants, securities or other
property (the "Purchase Rights") pro rata to the record holders
of any class of Common Stock, then the Holder of this Note will
be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which such Holder
could have acquired if such Holder had held the number of shares
of Common Stock acquirable upon complete conversion of this Note
(without regard to any limitations on conversion contained
herein) immediately before the date on which a record is taken
for the grant, issuance or sale of such Purchase Rights or, if no
such record is taken, the date as of which the record holders of
Common Stock are to be determined for the grant, issue or sale of
such Purchase Rights.

          (f)  Notice of Adjustments.  Upon the occurrence of each
               ---------------------
adjustment or readjustment of the Conversion Price as a result of
the events described in this Section 1.6, the Borrower, at its
expense, shall promptly compute such adjustment or readjustment
and prepare and furnish to the Holder of a certificate setting
forth such adjustment or readjustment and showing in detail the
facts upon which such adjustment or readjustment is based.  The
Borrower shall, upon the written request at any time of the
Holder, furnish to such Holder a like certificate setting forth
(i) such adjustment or readjustment, (ii) the Conversion Price at
the time in effect and (iii) the number of shares of Common Stock
and the amount, if any, of other securities or property which at
the time would be received upon conversion of the Note.

     1.7  Trading Market Limitations.  Unless permitted by the
          --------------------------
applicable rules and regulations of the principal securities
market on which the Common Stock is then listed or traded, in no
event shall the Borrower issue upon conversion of or otherwise
pursuant to this Note and the other Notes issued pursuant to the
Purchase Agreement more than the maximum number of shares of
Common Stock that the Borrower can issue pursuant to any rule of
the principal United States securities market on which the Common
Stock is then traded (the "Maximum Share Amount"), which shall be
19.99% of the total shares outstanding on the Closing Date (as
defined in the Purchase Agreement), subject to equitable
adjustment from time to time for stock splits, stock dividends,
combinations, capital reorganizations and similar events relating
to the Common Stock occurring after the date hereof.  Once the
Maximum Share Amount has been issued (the date of which is
hereinafter referred to as the "Maximum Conversion Date"), if the
Borrower fails to eliminate any prohibitions under applicable law
or the rules or regulations of any stock exchange, interdealer
quotation system or other self-regulatory organization with
jurisdiction over the Borrower or any of its securities on the
Borrower's ability to issue shares of Common Stock in excess of
the Maximum Share Amount (a "Trading Market Prepayment Event"),
in lieu of any further right to convert this Note, and in full
satisfaction of the Borrower's obligations under this Note, the
Borrower shall pay to the Holder, within fifteen (15) business
days of the Maximum Conversion Date (the "Trading Market
Prepayment Date"), an amount equal to 130% times the sum of (a)
the then outstanding principal amount of this Note immediately
following the Maximum Conversion Date, plus (b) accrued and
unpaid interest on the unpaid principal amount of this Note to
the Trading Market Prepayment Date, plus (c) Default Interest, if
any, on the amounts referred to in clause (a) and/or (b) above,
plus (d) any optional amounts that may be added thereto at the
Maximum Conversion Date by the Holder in accordance with the
terms hereof (the then outstanding principal amount of this Note
immediately following the Maximum Conversion Date, plus the
amounts referred to in clauses (b), (c) and (d) above shall
collectively be referred to as the "Remaining Convertible

                            11
<PAGE>

Amount").  With respect to each Holder of Notes, the Maximum
Share Amount shall refer to such Holder's pro rata share thereof
determined in accordance with Section 4.8 below.  In the event
that the sum of (x) the aggregate number of shares of Common
Stock issued upon conversion of this Note and the other Notes
issued pursuant to the Purchase Agreement plus (y) the aggregate
number of shares of Common Stock that remain issuable upon
conversion of this Note and the other Notes issued pursuant to
the Purchase Agreement, represents at least one hundred percent
(100%) of the Maximum Share Amount (the "Triggering Event"), the
Borrower will use its best efforts to seek and obtain Shareholder
Approval (or obtain such other relief as will allow conversions
hereunder in excess of the Maximum Share Amount) as soon as
practicable following the Triggering Event and before the Maximum
Conversion Date.  As used herein, "Shareholder Approval" means
approval by the shareholders of the Borrower to authorize the
issuance of the full number of shares of Common Stock which would
be issuable upon full conversion of the then outstanding Notes
but for the Maximum Share Amount.

     1.8  Status as Shareholder.  Upon submission of a Notice of
          ---------------------
Conversion by a Holder, (i) the shares covered thereby (other
than the shares, if any, which cannot be issued because their
issuance would exceed such Holder's allocated portion of the
Reserved Amount or Maximum Share Amount) shall be deemed
converted into shares of Common Stock and (ii) the Holder's
rights as a Holder of such converted portion of this Note shall
cease and terminate, excepting only the right to receive
certificates for such shares of Common Stock and to any remedies
provided herein or otherwise available at law or in equity to
such Holder because of a failure by the Borrower to comply with
the terms  of this Note.  Notwithstanding the foregoing, if a
Holder has not received certificates for all shares of Common
Stock prior to the tenth (10th) business day after the expiration
of the Deadline with respect to a conversion of any portion of
this Note for any reason, then (unless the Holder otherwise
elects to retain its status as a holder of Common Stock by so
notifying the Borrower) the Holder shall regain the rights of a
Holder of this Note with respect to such unconverted portions of
this Note and the Borrower shall, as soon as practicable, return
such unconverted Note to the Holder or, if the Note has not been
surrendered, adjust its records to reflect that such portion of
this Note has not been converted.  In all cases, the Holder shall
retain all of its rights and remedies (including, without
limitation, (i) the right to receive Conversion Default Payments
pursuant to Section 1.3 to the extent required thereby for such
Conversion Default and any subsequent Conversion Default and (ii)
the right to have the Conversion Price with respect to subsequent
conversions determined in accordance with Section 1.3) for the
Borrower's failure to convert this Note.

                ARTICLE II.    CERTAIN COVENANTS

      2.1  Distributions on Capital Stock.  So long as the Borrower
           ------------------------------
shall have any obligation under this Note, the Borrower shall not
without the Holder's written consent (a) pay, declare or set
apart for such payment, any dividend or other distribution
(whether in cash, property or other securities) on shares of
capital stock other than dividends on shares of Common Stock
solely in the form of additional shares of Common Stock or (b)
directly or indirectly or through any subsidiary make any other
payment or distribution in respect of its capital stock except
for distributions pursuant to any shareholders' rights plan which
is approved by a majority of the Borrower's disinterested
directors.

                            12
<PAGE>

     2.2  Restriction on Stock Repurchases.  So long as the Borrower
          --------------------------------
shall have any obligation under this Note, the Borrower shall not
without the Holder's written consent redeem, repurchase or
otherwise acquire (whether for cash or in exchange for property
or other securities or otherwise) in any one transaction or
series of related transactions any shares of capital stock of the
Borrower or any warrants, rights or options to purchase or
acquire any such shares.

     2.3  Borrowings.  So long as the Borrower shall have any
          ----------
obligation under this Note, the Borrower shall not, without the
Holder's written consent, create, incur, assume or suffer to
exist any liability for borrowed money, except (a) borrowings in
existence or committed on the date hereof and of which the
Borrower has informed Holder in writing prior to the date hereof,
(b) indebtedness to trade creditors or financial institutions
incurred in the ordinary course of business or (c) borrowings,
the proceeds of which shall be used to repay this Note.

     2.4  Sale of Assets.  So long as the Borrower shall have any
          --------------
obligation under this Note, the Borrower shall not, without the
Holder's written consent, sell, lease or otherwise dispose of any
significant portion of its assets outside the ordinary course of
business.  Any consent to the disposition of any assets may be
conditioned on a specified use of the proceeds of disposition.

     2.5  Advances and Loans.  So long as the Borrower shall have any
          ------------------
obligation under this Note, the Borrower shall not, without the
Holder's written consent, lend money, give credit or make
advances to any person, firm, joint venture or corporation,
including, without limitation, officers, directors, employees,
subsidiaries and affiliates of the Borrower, except loans,
credits or advances (a) in existence or committed on the date
hereof and which the Borrower has informed Holder in writing
prior to the date hereof, (b) made in the ordinary course of
business or (c) not in excess of $50,000.

     2.6  Contingent Liabilities.  So long as the Borrower shall have
          ----------------------
any obligation under this Note, the Borrower shall not, without
the Holder's written consent, which shall not be unreasonably
withheld, assume, guarantee, endorse, contingently agree to
purchase or otherwise become liable upon the obligation of any
person, firm, partnership, joint venture or corporation, except
by the endorsement of negotiable instruments for deposit or
collection and except assumptions, guarantees, endorsements and
contingencies (a) in existence or committed on the date hereof
and which the Borrower has informed Holder in writing prior to
the date hereof, and (b) similar transactions in the ordinary
course of business.

                ARTICLE III.   EVENTS OF DEFAULT

     If any of the following events of default (each, an
"Event of Default") shall occur:

     3.1  Failure to Pay Principal or Interest.  The Borrower fails
          ------------------------------------
to pay the principal hereof or interest thereon when due on this
Note, whether at maturity, upon a Trading Market Prepayment Event
pursuant to Section 1.7, upon acceleration or otherwise;

                            13
<PAGE>

     3.2  Conversion and the Shares.  The Borrower fails to issue
          -------------------------
shares of Common Stock to the Holder (or announces or threatens
that it will not honor its obligation to do so) upon exercise by
the Holder of the conversion rights of the Holder in accordance
with the terms of this Note (for a period of at least sixty (60)
days, if such failure is solely as a result of the circumstances
governed by Section 1.3 and the Borrower is using its best
efforts to authorize a sufficient number of shares of Common
Stock as soon as practicable), fails to transfer or cause its
transfer agent to transfer (electronically or in certificated
form) any certificate for shares of Common Stock issued to the
Holder upon conversion of or otherwise pursuant to this Note as
and when required by this Note or the Registration Rights
Agreement, or fails to remove any restrictive legend (or to
withdraw any stop transfer instructions in respect thereof) on
any certificate for any shares of Common Stock issued to the
Holder upon conversion of or otherwise pursuant to this Note as
and when required by this Note or the Registration Rights
Agreement (or makes any announcement, statement or threat that it
does not intend to honor the obligations described in this
paragraph) and any such failure shall continue uncured (or any
announcement, statement or threat not to honor its obligations
shall not be rescinded in writing) for ten (10) days after the
Borrower shall have been notified thereof in writing by the
Holder;

     3.3  Failure to Timely File Registration or Effect Registration.
          ----------------------------------------------------------
The Borrower fails to file the Registration Statement within
sixty (60) days following the Closing Date (as defined in the
Purchase Agreement) or obtain effectiveness with the Securities
and Exchange Commission of the Registration Statement within one
hundred thirty-five (135) days following the Closing Date (as
defined in the Purchase Agreement) or such Registration Statement
lapses in effect (or sales cannot otherwise be made thereunder
effective, whether by reason of the Borrower's failure to amend
or supplement the prospectus included therein in accordance with
the Registration Rights Agreement or otherwise) for more than ten
(10) consecutive days or twenty (20) days in any twelve month
period after the Registration Statement becomes effective;

     3.4  Breach of Covenants.  The Borrower breaches any material
          -------------------
covenant or other material term or condition contained in
Sections 1.3, 1.6 or 1.7 of this Note, or Sections 4(c), 4(e),
4(h), 4(i), 4(j) or 5 of the Purchase Agreement and such breach
continues for a period of ten (10) days after written notice
thereof to the Borrower from the Holder;

     3.5  Breach of Representations and Warranties.  Any
          ----------------------------------------
representation or warranty of the Borrower made herein or in any
agreement, statement or certificate given in writing pursuant
hereto or in connection herewith (including, without limitation,
the Purchase Agreement and the Registration Rights Agreement),
shall be false or misleading in any material respect when made
and the breach of which has (or with the passage of time will
have) a material adverse effect on the rights of the Holder with
respect to this Note, the Purchase Agreement or the Registration
Rights Agreement;

     3.6  Receiver or Trustee.  The Borrower or any subsidiary of 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;

                            14
<PAGE>

     3.7  Judgments.  Any money judgment, writ or similar process
          ---------
shall be entered or filed against the Borrower or any subsidiary
of the Borrower or any of its property or other assets for more
than $50,000, and shall remain unvacated, unbonded or unstayed
for a period of twenty (20) days unless otherwise consented to by
the Holder, which consent will not be unreasonably withheld;

     3.8  Bankruptcy.  Bankruptcy, insolvency, reorganization or
          ----------
liquidation proceedings or other proceedings for relief under any
bankruptcy law or any law for the relief of debtors shall be
instituted by or against the Borrower or any subsidiary of the
Borrower;

     3.9  Delisting of Common Stock.  The Borrower shall fail to
          -------------------------
maintain the listing of the Common Stock on at least one of the
OTCBB or an equivalent replacement exchange, the Nasdaq National
Market, the Nasdaq SmallCap Market, the New York Stock Exchange,
or the American Stock Exchange; or

     3.10 Default Under Other Notes.  An Event of Default has occurred
          -------------------------
and is continuing under any of the other Notes issued pursuant to
the Purchase Agreement,

then, upon the occurrence and during the continuation of any
Event of Default specified in Section 3.1, 3.2, 3.3, 3.4, 3.5,
3.7, 3.9, or 3.10, at the option of the Holders of a majority of
the aggregate principal amount of the outstanding Notes issued
pursuant to the Purchase Agreement exercisable through the
delivery of written notice to the Borrower by such Holders (the
"Default Notice"), and upon the occurrence of an Event of Default
specified in Section 3.6 or 3.8, the Notes shall become
immediately due and payable and the Borrower shall pay to the
Holder, in full satisfaction of its obligations hereunder, an
amount equal to the greater of (i) 130% times the sum of (w) the
then outstanding principal amount of this Note plus (x) accrued
and unpaid interest on the unpaid principal amount of this Note
to the date of payment (the "Mandatory Prepayment Date") plus (y)
Default Interest, if any, on the amounts referred to in clauses
(w) and/or (x) plus (z) any amounts owed to the Holder pursuant
to Sections 1.3 and 1.4(g) hereof or pursuant to Section 2(c) of
the Registration Rights Agreement (the then outstanding principal
amount of this Note to the date of payment plus the amounts
referred to in clauses (x), (y) and (z) shall collectively be
known as the "Default Sum") or (ii) the "parity value" of the
Default Sum to be prepaid, where parity value means (a) the
highest number of shares of Common Stock issuable upon conversion
of or otherwise pursuant to such Default Sum in accordance with
Article I, treating the Trading Day immediately preceding the
Mandatory Prepayment Date as the "Conversion Date" for purposes
of determining the lowest applicable Conversion Price, unless the
Default Event arises as a result of a breach in respect of a
specific Conversion Date in which case such Conversion Date shall
be the Conversion Date), multiplied by (b) the highest Closing
Price for the Common Stock during the period beginning on the
date of first occurrence of the Event of Default and ending one
day prior to the Mandatory Prepayment Date (the "Default Amount")
and all other amounts payable hereunder shall immediately become
due and payable, all without demand, presentment or notice, all
of which hereby are expressly waived, together with all costs,
including, without limitation, legal fees and expenses, of
collection, and the Holder shall be entitled to exercise all
other rights and remedies available at law or in equity.  If the
Borrower fails to pay the Default Amount within five (5) business
days of written notice that such amount is due and payable, then
the Holder shall have the right at any time, so long as the
Borrower remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Borrower,

                            15
<PAGE>

upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower
equal to the Default Amount divided by the Conversion Price then
in effect.

                ARTICLE IV.    MISCELLANEOUS

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

     4.2  Notices.  Any notice herein required or permitted to be
          -------
given shall be in writing and may be personally served or
delivered by courier or sent by United States mail and shall be
deemed to have been given upon receipt if personally served
(which shall include telephone line facsimile transmission) or
sent by courier or three (3) days after being deposited in the
United States mail, certified, with postage pre-paid and properly
addressed, if sent by mail.  For the purposes hereof, the address
of the Holder shall be as shown on the records of the Borrower;
and the address of the Borrower shall be 7284 Palmetto Park Road,
Suite 207, Boca Raton, FL 33433, facsimile number: () [       ].
Both the Holder and the Borrower may change the address for
service by service of written notice to the other as herein
provided.

     4.3  Amendments.  This Note and any provision hereof may only be
          ----------
amended by an instrument in writing signed by the Borrower and
the Holder.  The term "Note" and all reference thereto, as used
throughout this instrument, shall mean this instrument (and the
other Notes issued pursuant to the Purchase Agreement) 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 be the benefit
of the Holder and its successors and assigns.  Each transferee of
this Note must be an "accredited investor" (as defined in Rule
501(a) of the 1933 Act).  Notwithstanding anything in this Note
to the contrary, this Note may be pledged as collateral in
connection with a bona fide margin account or other lending
arrangement.

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

     4.6  Governing Law.  THIS NOTE SHALL BE ENFORCED, GOVERNED BY AND
          -------------
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN
SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.
THE BORROWER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK WITH
RESPECT TO ANY DISPUTE ARISING UNDER THIS NOTE, THE AGREEMENTS
ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS

                            16
<PAGE>

CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE
THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH
SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE THAT SERVICE OF
PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN
ANY SUCH SUIT OR PROCEEDING.  NOTHING HEREIN SHALL AFFECT EITHER
PARTY'S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW.  BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN
ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN
ANY OTHER LAWFUL MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN ANY
DISPUTE ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES
AND EXPENSES, INCLUDING ATTORNEYS' FEES, INCURRED BY THE
PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE.

     4.7  Certain Amounts.  Whenever pursuant to this Note the
          ---------------
Borrower is required to pay an amount in excess of the
outstanding principal amount (or the portion thereof required to
be paid at that time) plus accrued and unpaid interest plus
Default Interest on such interest, the Borrower and the Holder
agree that the actual damages to the Holder from the receipt of
cash payment on this Note may be difficult to determine and the
amount to be so paid by the Borrower represents stipulated
damages and not a penalty and is intended to compensate the
Holder in part for loss of the opportunity to convert this Note
and to earn a return from the sale of shares of Common Stock
acquired upon conversion of this Note at a price in excess of the
price paid for such shares pursuant to this Note.  The Borrower
and the Holder hereby agree that such amount of stipulated
damages is not plainly disproportionate to the possible loss to
the Holder from the receipt of a cash payment without the
opportunity to convert this Note into shares of Common Stock.

     4.8  Allocations of Maximum Share Amount and Reserved Amount.
          -------------------------------------------------------
The Maximum Share Amount and Reserved Amount shall be allocated
pro rata among the Holders of Notes based on the principal amount
of such Notes issued to each Holder.  Each increase to the
Maximum Share Amount and Reserved Amount shall be allocated pro
rata among the Holders of Notes based on the principal amount of
such Notes held by each Holder at the time of the increase in the
Maximum Share Amount or Reserved Amount.  In the event a Holder
shall sell or otherwise transfer any of such Holder's Notes, each
transferee shall be allocated a pro rata portion of such
transferor's Maximum Share Amount and Reserved Amount.  Any
portion of the Maximum Share Amount or Reserved Amount which
remains allocated to any person or entity which does not hold any
Notes shall be allocated to the remaining Holders of Notes, pro
rata based on the principal amount of such Notes then held by
such Holders.

     4.9  Damages Shares.  The shares of Common Stock that may be
          --------------
issuable to the Holder pursuant to Sections 1.3 and 1.4(g) hereof
and pursuant to Section 2(c) of the Registration Rights Agreement
("Damages Shares") shall be treated as Common Stock issuable upon
conversion of this Note for all purposes hereof and shall be
subject to all of the limitations and afforded all of the rights
of the other shares of Common Stock issuable hereunder, including
without limitation, the right to be included in the Registration
Statement filed pursuant to the Registration Rights Agreement.
For purposes of calculating interest payable on the outstanding

                            17
<PAGE>

principal amount hereof, except as otherwise provided herein,
amounts convertible into Damages Shares ("Damages Amounts") shall
not bear interest but must be converted prior to the conversion
of any outstanding principal amount hereof, until the outstanding
Damages Amounts is zero.

     4.10 Denominations.  At the request of the Holder, upon surrender
          -------------
of this Note, the Borrower shall promptly issue new Notes in the
aggregate outstanding principal amount hereof, in the form
hereof, in such denominations of at least $50,000 as the Holder
shall request.

     4.11 Purchase Agreement.  By its acceptance of this Note, each
          ------------------
Holder agrees to be bound by the applicable terms of the Purchase
Agreement.

     4.12 Notice of Corporate Events.  Except as otherwise provided
          --------------------------
below, the Holder of this Note shall have no rights as a Holder
of Common Stock unless and only to the extent that it converts
this Note into Common Stock.  The Borrower shall provide the
Holder with prior notification of any meeting of the Borrower's
shareholders (and copies of proxy materials and other information
sent to shareholders).  In the event of any taking by the
Borrower of a record of its shareholders for the purpose of
determining shareholders who are entitled to receive payment of
any dividend or other distribution, any right to subscribe for,
purchase or otherwise acquire (including by way of merger,
consolidation, reclassification or recapitalization) any share of
any class or any other securities or property, or to receive any
other right, or for the purpose of determining shareholders who
are entitled to vote in connection with any proposed sale, lease
or conveyance of all or substantially all of the assets of the
Borrower or any proposed liquidation, dissolution or winding up
of the Borrower, the Borrower shall mail a notice to the Holder,
at least twenty (20) days prior to the record date specified
therein (or thirty (30) days prior to the consummation of the
transaction or event, whichever is earlier), of the date on which
any such record is to be taken for the purpose of such dividend,
distribution, right or other event, and a brief statement
regarding the amount and character of such dividend,
distribution, right or other event to the extent known at such
time.  The Borrower shall make a public announcement of any event
requiring notification to the Holder hereunder substantially
simultaneously with the notification to the Holder in accordance
with the terms of this Section 4.12.

     4.13 Remedies.  The Borrower acknowledges that a breach by it of
          --------
its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction
contemplated hereby.  Accordingly, the Borrower acknowledges that
the remedy at law for a breach of its obligations under this Note
will be inadequate and agrees, in the event of a breach or
threatened breach by the Borrower of the provisions of this Note,
that the Holder shall be entitled, in addition to all other
available remedies at law or in equity, and in addition to the
penalties assessable herein, to an injunction or injunctions
restraining, preventing or curing any breach of this Note and to
enforce specifically the terms and provisions thereof, without
the necessity of showing economic loss and without any bond or
other security being required.

                            18
<PAGE>

                 ARTICLE V.     CALL OPTION

     5.1  Call Option.  Notwithstanding anything to the contrary
          -----------
contained in this Article V, so long as (i) no Event of Default
or Trading Market Prepayment Event shall have occurred and be
continuing, (ii) the Borrower has a sufficient number of
authorized shares of Common Stock reserved for issuance upon full
conversion of the Notes, then at any time after the Issue Date,
and (iii) the Common Stock is trading at or below $.09 per share,
the Borrower shall have the right, exercisable on not less than
ten (10) Trading Days prior written notice to the Holders of the
Notes (which notice may not be sent to the Holders of the Notes
until the Borrower is permitted to prepay the Notes pursuant to
this Section 5.1), to prepay all of the outstanding Notes in
accordance with this Section 5.1.  Any notice of prepayment
hereunder (an "Optional Prepayment") shall be delivered to the
Holders of the Notes at their registered addresses appearing on
the books and records of the Borrower and shall state (1) that
the Borrower is exercising its right to prepay all of the Notes
issued on the Issue Date and (2) the date of prepayment (the
"Optional Prepayment Notice").  On the date fixed for prepayment
(the "Optional Prepayment Date"), the Borrower shall make payment
of the Optional Prepayment Amount (as defined below) to or upon
the order of the Holders as specified by the Holders in writing
to the Borrower at least one (1) business day prior to the
Optional Prepayment Date.  If the Borrower exercises its right to
prepay the Notes, the Borrower shall make payment to the holders
of an amount in cash (the "Optional Prepayment Amount") equal to
either (i) 125% (for prepayments occurring within thirty (30)
days of the Issue Date), (ii) 135% for prepayments occurring
between thirty-one (31) and sixty  (60) days of the Issue Date,
or (iii) 150% (for prepayments occurring after the sixtieth
(60th) day following the Issue Date), multiplied by the sum of
(w) the then outstanding principal amount of this Note plus
(x) accrued and unpaid interest on the unpaid principal amount of
this Note to the Optional Prepayment Date plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and
(x) plus (z) any amounts owed to the Holder pursuant to Sections
1.3 and 1.4(g) hereof or pursuant to Section 2(c) of the
Registration Rights Agreement (the then outstanding principal
amount of this Note to the date of payment plus the amounts
referred to in clauses (x), (y) and (z) shall collectively be
known as the "Optional Prepayment Sum"). Notwithstanding notice
of an Optional Prepayment, the Holders shall at all times prior
to the Optional Prepayment Date maintain the right to convert all
or any portion of the Notes in accordance with Article I and any
portion of Notes so converted after receipt of an Optional
Prepayment Notice and prior to the Optional Prepayment Date set
forth in such notice and payment of the aggregate Optional
Prepayment Amount shall be deducted from the principal amount of
Notes which are otherwise subject to prepayment pursuant to such
notice.  If the Borrower delivers an Optional Prepayment Notice
and fails to pay the Optional Prepayment Amount due to the
Holders of the Notes within two (2) business days following the
Optional Prepayment Date, the Borrower shall forever forfeit its
right to redeem the Notes pursuant to this Section 5.1.

     5.2  Partial Call Option.  Notwithstanding anything to the
          -------------------
contrary contained in this Article V, in the event that the
Average Daily Price of the Common Stock, as reported by the
Reporting Service, for each day of the month ending on any
Determination Date is below the Initial Market Price, the
Borrower may, at its option, prepay a portion of the outstanding
principal amount of the Notes equal to the principal amount
hereof divided by thirty-six (36) plus one month's interest.  The
term "Initial Market Price" means shall mean the volume weighted
average price of the Common Stock for the five (5) Trading Days

                            19
<PAGE>

immediately preceding the Closing.  The term "Reporting Service"
means a reliable reporting service mutually acceptable to and
hereinafter designated by the Holder.

          [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                            20
<PAGE>

     IN WITNESS WHEREOF, Borrower has caused this Note to be
signed in its name by its duly authorized officer this 30th day
of March, 2005.

                                   MED GEN, INC.

                                   By:
                                      ______________________________
                                        Paul B. Kravitz
                                        Chairman and Chief
                                        Executive Officer

                            21
<PAGE>

                        EXHIBIT A

                    NOTICE OF CONVERSION
          (To be Executed by the Registered Holder
                in order to Convert the Notes)

          The undersigned hereby irrevocably elects to convert
$__________ principal amount of the Note (defined below) into
shares of common stock, par value $.001 per share ("Common
Stock"), of Med Gen, Inc., a Nevada corporation (the "Borrower")
according to the conditions of the convertible Notes of the
Borrower dated as of March 30, 2005 (the "Notes"), as of the date
written below.  If securities are to be issued in the name of a
person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto and is delivering
herewith such certificates.  No fee will be charged to the Holder
for any conversion, except for transfer taxes, if any.  A copy of
each Note is attached hereto (or evidence of loss, theft or
destruction thereof).

          The Borrower shall electronically transmit the Common
Stock issuable pursuant to this Notice of Conversion to the
account of the undersigned or its nominee with DTC through its
Deposit Withdrawal Agent Commission system ("DWAC Transfer").

     Name of DTC Prime Broker:_____________________
     Account Number:_______________________________

          In lieu of receiving shares of Common Stock issuable
pursuant to this Notice of Conversion by way of a DWAC Transfer,
the undersigned hereby requests that the Borrower issue a
certificate or certificates for the number of shares of Common
Stock set forth below (which numbers are based on the Holder's
calculation attached hereto) in the name(s) specified immediately
below or, if additional space is necessary, on an attachment
hereto:

     Name:____________________________________________
     Address:_________________________________________

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

          Date of Conversion:______________________________
          Applicable Conversion Price:_____________________
          Number of Shares of Common Stock to be Issued Pursuant
          to
          Conversion of the Notes:_________________________
          Signature:_______________________________________
          Name:____________________________________________
          Address:_________________________________________

                            22
<PAGE>

The Borrower shall issue and deliver shares of Common Stock to an
overnight courier not later than three business days following
receipt of the original Note(s) to be converted, and shall make
payments pursuant to the Notes for the number of business days
such issuance and delivery is late.

                            23
<PAGE>[EXHIBIT 10.17]

                  REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as
of March 30, 2005, by and among Med Gen, Inc., a Nevada
corporation with its headquarters located at 7284 W. Palmetto
Park Road, Suite 207, Boca Raton, FL 33433 (the "Company"), and
each of the undersigned (together with their respective
affiliates and any assignee or transferee of all of their
respective rights hereunder, the "Initial Investors").

     WHEREAS:

     A.   In connection with the Securities Purchase Agreement by and
among the parties hereto of even date herewith (the "Securities
Purchase Agreement"), the Company has agreed, upon the terms and
subject to the conditions contained therein, to issue and sell to
the Initial Investors (i) secured convertible notes in the
aggregate principal amount of up to One Million Five Hundred
Forty Thousand Dollars ($1,540,000) (the "Notes") that are
convertible into shares of the Company's common stock (the
"Common Stock"), upon the terms and subject to the limitations
and conditions set forth in such Notes and (ii) warrants (the
"Warrants") to acquire an aggregate of 1,540,000 shares of Common
Stock, upon the terms and conditions and subject to the
limitations and conditions set forth in the Warrants; and

B.   To induce the Initial Investors to execute and deliver the
Securities Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as
amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the "1933 Act"), and applicable
state securities laws;
     NOW,  THEREFORE,  in consideration of the premises  and  the
mutual  covenants  contained herein and other good  and  valuable
consideration,  the receipt and sufficiency of which  are  hereby
acknowledged,  the  Company and each  of  the  Initial  Investors
hereby agree as follows:

          1.   DEFINITIONS.
               -----------

               a.   As used in this Agreement, the following terms
shall have the following meanings:

                    (i)  "Investors" means the Initial Investors and
any transferee or assignee who agrees to become bound by the provisions
of this Agreement in accordance with Section 9 hereof.

                    (ii) "register," "registered," and "registration"
refer to a registration effected by preparing and filing a Registration
Statement or Statements in compliance with the 1933 Act and
pursuant to Rule 415 under the 1933 Act or any successor rule
providing for offering securities on a continuous basis ("Rule
415"), and the declaration or ordering of effectiveness of such
Registration Statement by the United States Securities and
Exchange Commission (the "SEC").

                    (iii)  "Registrable Securities" means the Conversion
Shares issued or issuable upon conversion or otherwise pursuant to the
Notes and Additional Notes (as defined in the Securities Purchase

<PAGE>

Agreement) including, without limitation, Damages Shares (as
defined in the Notes) issued or issuable pursuant to the Notes,
shares of Common Stock issued or issuable in payment of the
Standard Liquidated Damages Amount (as defined in the Securities
Purchase Agreement), shares issued or issuable in respect of
interest or in redemption of the Notes in accordance with the
terms thereof) and Warrant Shares issuable, upon exercise or
otherwise pursuant to the Warrants and Additional Warrants (as
defined in the Securities Purchase Agreement), and any shares of
capital stock issued or issuable as a dividend on or in exchange
for or otherwise with respect to any of the foregoing.

                    (iv) "Registration Statement" means a registration
statement of the Company under the 1933 Act.

               b.   Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the
Securities Purchase Agreement or the Convertible Note.

          2.   REGISTRATION.
               ------------

               a.   Mandatory Registration.  The Company shall prepare,
                    ----------------------
and, on or prior to sixty (60) days from the date of Closing (as defined
in the Securities Purchase Agreement) (the "Filing Date"), file
with the SEC a Registration Statement on Form S-3 (or, if Form S-
3 is not then available, on such form of Registration Statement
as is then available to effect a registration of the Registrable
Securities, subject to the consent of the Initial Investors,
which consent will not be unreasonably withheld) covering the
resale of the Registrable Securities underlying the Notes and
Warrants issued or issuable pursuant to the Securities Purchase
Agreement, which Registration Statement, to the extent allowable
under the 1933 Act and the rules and regulations promulgated
thereunder (including Rule 416), shall state that such
Registration Statement also covers such indeterminate number of
additional shares of Common Stock as may become issuable upon
conversion of or otherwise pursuant to the Notes and exercise of
the Warrants to prevent dilution resulting from stock splits,
stock dividends or similar transactions.  The number of shares of
Common Stock initially included in such Registration Statement
shall be no less than an amount equal to two (2) times the sum of
the number of Conversion Shares that are then issuable upon
conversion of the Notes and Additional Notes (based on the
Variable Conversion Price as would then be in effect and assuming
the Variable Conversion Price is the Conversion Price at such
time), and the number of Warrant Shares that are then issuable
upon exercise of the Warrants, without regard to any limitation
on the Investor's ability to convert the Notes or exercise the
Warrants.  The Company acknowledges that the number of shares
initially included in the Registration Statement represents a
good faith estimate of the maximum number of shares issuable upon
conversion of the Notes and upon exercise of the Warrants.

               b.   Underwritten Offering.  If any offering pursuant
                    ---------------------
to a Registration Statement pursuant to Section 2(a) hereof involves
an underwritten offering, the Investors who hold a majority in
interest of the Registrable Securities subject to such
underwritten offering, with the consent of a majority-in-interest
of the Initial Investors, shall have the right to select one
legal counsel and an investment banker or bankers and manager or

                            2
<PAGE>

managers to administer the offering, which investment banker or
bankers or manager or managers shall be reasonably satisfactory
to the Company.

               c.   Payments by the Company.  The Company shall use
its best efforts to obtain effectiveness of the Registration Statement
as soon as practicable.  If (i) the Registration Statement(s)
covering the Registrable Securities required to be filed by the
Company pursuant to Section 2(a) hereof is not filed by the
Filing Date or declared effective by the SEC on or prior to one
hundred and five (105) days from the date of Closing (as defined
in the Securities Purchase Agreement), or (ii) after the
Registration Statement has been declared effective by the SEC,
sales of all of the Registrable Securities cannot be made
pursuant to the Registration Statement, or (iii) the Common Stock
is not listed or included for quotation on the Nasdaq National
Market ("Nasdaq"), the Nasdaq SmallCap Market ("Nasdaq
SmallCap"), the New York Stock Exchange (the "NYSE") or the
American Stock Exchange (the "AMEX") after being so listed or
included for quotation, or (iv) the Common Stock ceases to be
traded on the Over-the-Counter Bulletin Board (the "OTCBB") or
any equivalent replacement exchange prior to being listed or
included for quotation on one of the aforementioned markets, then
the Company will make payments to the Investors in such amounts
and at such times as shall be determined pursuant to this Section
2(c) as partial relief for the damages to the Investors by reason
of any such delay in or reduction of their ability to sell the
Registrable Securities (which remedy shall not be exclusive of
any other remedies available at law or in equity).  The Company
shall pay to each holder of the Notes or Registrable Securities
an amount equal to the then outstanding principal amount of the
Notes (and, in the case of holders of Registrable Securities, the
principal amount of Notes from which such Registrable Securities
were converted) ("Outstanding Principal Amount"), multiplied by
the Applicable Percentage (as defined below) times the sum of:
(i) the number of months (prorated for partial months) after the
Filing Date or the end of the aforementioned one hundred and five
(105) day period and prior to the date the Registration Statement
is declared effective by the SEC, provided, however, that there
shall be excluded from such period any delays which are solely
attributable to changes required by the Investors in the
Registration Statement with respect to information relating to
the Investors, including, without limitation, changes to the plan
of distribution, or to the failure of the Investors to conduct
their review of the Registration Statement pursuant to Section
3(h) below in a reasonably prompt manner; (ii) the number of
months (prorated for partial months) that sales of all of the
Registrable Securities cannot be made pursuant to the
Registration Statement after the Registration Statement has been
declared effective (including, without limitation, when sales
cannot be made by reason of the Company's failure to properly
supplement or amend the prospectus included therein in accordance
with the terms of this Agreement, but excluding any days during
an Allowed Delay (as defined in Section 3(f)); and (iii) the
number of months (prorated for partial months) that the Common
Stock is not listed or included for quotation on the OTCBB,
Nasdaq, Nasdaq SmallCap, NYSE or AMEX or that trading thereon is
halted after the Registration Statement has been declared
effective.  The term "Applicable Percentage" means two hundredths
(.02).  (For example, if the Registration Statement becomes
effective one (1) month after the end of such one hundred and
five (105) day period, the Company would pay $5,000 for each
$250,000 of Outstanding Principal Amount.  If thereafter, sales
could not be made pursuant to the Registration Statement for an
additional period of one (1) month, the Company would pay an
additional $5,000 for each $250,000 of Outstanding Principal
Amount.)  Such amounts shall be paid in cash or, at the Company's

                            3
<PAGE>

option, in shares of Common Stock priced at the Conversion Price
(as defined in the Notes) on such payment date.

          d.   Piggy-Back Registrations.  Subject to the last sentence
               ------------------------
of this Section 2(d), if at any time prior to the expiration of the
Registration Period (as hereinafter defined) the Company shall
determine to file with the SEC a Registration Statement relating
to an offering for its own account or the account of others under
the 1933 Act of any of its equity securities (other than on Form
S-4 or Form S-8 or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition
of any entity or business or equity securities issuable in
connection with stock option or other bona fide, employee benefit
plans), the Company shall send to each Investor who is entitled
to registration rights under this Section 2(d) written notice of
such determination and, if within fifteen (15) days after the
effective date of such notice, such Investor shall so request in
writing, the Company shall include in such Registration Statement
all or any part of the Registrable Securities such Investor
requests to be registered, except that if, in connection with any
underwritten public offering for the account of the Company the
managing underwriter(s) thereof shall impose a limitation on the
number of shares of Common Stock which may be included in the
Registration Statement because, in such underwriter(s)' judgment,
marketing or other factors dictate such limitation is necessary
to facilitate public distribution, then the Company shall be
obligated to include in such Registration Statement only such
limited portion of the Registrable Securities with respect to
which such Investor has requested inclusion hereunder as the
underwriter shall permit. Any exclusion of Registrable Securities
shall be made pro rata among the Investors seeking to include
Registrable Securities in proportion to the number of Registrable
Securities sought to be included by such Investors; provided,
however, that the Company shall not exclude any Registrable
Securities unless the Company has first excluded all outstanding
securities, the holders of which are not entitled to inclusion of
such securities in such Registration Statement or are not
entitled to pro rata inclusion with the Registrable Securities;
and provided, further, however, that, after giving effect to the
immediately preceding proviso, any exclusion of Registrable
Securities shall be made pro rata with holders of other
securities having the right to include such securities in the
Registration Statement other than holders of securities entitled
to inclusion of their securities in such Registration Statement
by reason of demand registration rights.  No right to
registration of Registrable Securities under this Section 2(d)
shall be construed to limit any registration required under
Section 2(a) hereof.  If an offering in connection with which an
Investor is entitled to registration under this Section 2(d) is
an underwritten offering, then each Investor whose Registrable
Securities are included in such Registration Statement shall,
unless otherwise agreed by the Company, offer and sell such
Registrable Securities in an underwritten offering using the same
underwriter or underwriters and, subject to the provisions of
this Agreement, on the same terms and conditions as other shares
of Common Stock included in such underwritten offering.
Notwithstanding anything to the contrary set forth herein, the
registration rights of the Investors pursuant to this Section
2(d) shall only be available in the event the Company fails to
timely file, obtain effectiveness or maintain effectiveness of
any Registration Statement to be filed pursuant to Section 2(a)
in accordance with the terms of this Agreement.

          e.   Eligibility for Form S-3, SB-2 or S-1; Conversion to
               ----------------------------------------------------
Form S-3.  The Company represents and warrants that it meets the
--------
requirements for the use of Form S-3, SB-2 or S-1 for
registration of the sale by the Initial Investors and any other
Investors of the Registrable Securities.   The Company agrees to
file all reports required to be filed by the Company with the SEC

                            4
<PAGE>

in a timely manner so as to remain eligible or become eligible,
as the case may be, and thereafter to maintain its eligibility,
for the use of Form S-3.  If the Company is not currently
eligible to use Form S-3, not later than five (5) business days
after the Company first meets the registration eligibility and
transaction requirements for the use of Form S-3 (or any
successor form) for registration of the offer and sale by the
Initial Investors and any other Investors of Registrable
Securities, the Company shall file a Registration Statement on
Form S-3 (or such successor form) with respect to the Registrable
Securities covered by the Registration Statement on Form SB-2 or
Form S-1, whichever is applicable, filed pursuant to Section 2(a)
(and include in such Registration Statement on Form S-3 the
information required by Rule 429 under the 1933 Act) or convert
the Registration Statement on Form SB-2 or Form S-1, whichever is
applicable, filed pursuant to Section 2(a) to a Form S-3 pursuant
to Rule 429 under the 1933 Act and cause such Registration
Statement (or such amendment) to be declared effective no later
than sixty (60) days after filing.  In the event of a breach by
the Company of the provisions of this Section 2(e), the Company
will be required to make payments pursuant to Section 2(c)
hereof.

          3.   OBLIGATIONS OF THE COMPANY.
               --------------------------

     In  connection  with  the registration  of  the  Registrable
Securities, the Company shall have the following obligations:

               a.   The Company shall prepare promptly, and file
with the SEC not later than the Filing Date, a Registration Statement
with respect to the number of Registrable Securities provided in
Section 2(a), and thereafter use its best efforts to cause such
Registration Statement relating to Registrable Securities to
become effective as soon as possible after such filing but in no
event later than one hundred and five (105) days from the date of
Closing), and keep the Registration Statement effective pursuant
to Rule 415 at all times until such date as is the earlier of (i)
the date on which all of the Registrable Securities have been
sold and (ii) the date on which the Registrable Securities (in
the opinion of counsel to the Initial Investors) may be
immediately sold to the public without registration or
restriction (including, without limitation, as to volume by each
holder thereof) under the 1933 Act (the "Registration Period"),
which Registration Statement (including any amendments or
supplements thereto and prospectuses contained therein) shall 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 not misleading.

               b.   The Company shall prepare and file with the SEC
such amendments (including post-effective amendments) and supplements
to the Registration Statements and the prospectus used in
connection with the Registration Statements as may be necessary
to keep the Registration Statements effective at all times during
the Registration Period, and, during such period, comply with the
provisions of the 1933 Act with respect to the disposition of all
Registrable Securities of the Company covered by the Registration
Statements until such time as all of such Registrable Securities
have been disposed of in accordance with the intended methods of
disposition by the seller or sellers thereof as set forth in the
Registration Statements.  In the event the number of shares
available under a Registration Statement filed pursuant to this
Agreement is insufficient to cover all of the Registrable
Securities issued or issuable upon conversion of the Notes and
exercise of the Warrants, the Company shall amend the

                            5
<PAGE>

Registration Statement, or file a new Registration Statement (on
the short form available therefor, if applicable), or both, so as
to cover all of the Registrable Securities, in each case, as soon
as practicable, but in any event within fifteen (15) days after
the necessity therefor arises (based on the market price of the
Common Stock and other relevant factors on which the Company
reasonably elects to rely).  The Company shall use its best
efforts to cause such amendment and/or new Registration Statement
to become effective as soon as practicable following the filing
thereof, but in any event within thirty (30) days after the date
on which the Company reasonably first determines (or reasonably
should have determined) the need therefor.  The provisions of
Section 2(c) above shall be applicable with respect to such
obligation, with the one hundred and five (105) days running from
the day the Company reasonably first determines (or reasonably
should have determined) the need therefor.

               c.   The Company shall furnish to each Investor whose
Registrable Securities are included in a Registration Statement and
its legal counsel (i) promptly (but in no event more than two (2)
business days) after the same is prepared and publicly distributed,
filed with the SEC, or received by the Company, one copy of each
Registration Statement and any amendment thereto, each
preliminary prospectus and prospectus and each amendment or
supplement thereto, and, in the case of the Registration
Statement referred to in Section 2(a), each letter written by or
on behalf of the Company to the SEC or the staff of the SEC, and
each item of correspondence from the SEC or the staff of the SEC,
in each case relating to such Registration Statement (other than
any portion of any thereof which contains information for which
the Company has sought confidential treatment), and (ii) promptly
(but in no event more than two (2) business days) after the
Registration Statement is declared effective by the SEC, such
number of copies of a prospectus, including a preliminary
prospectus, and all amendments and supplements thereto and such
other documents as such Investor may reasonably request in order
to facilitate the disposition of the Registrable Securities owned
by such Investor.  The Company will immediately notify each
Investor by facsimile of the effectiveness of each Registration
Statement or any post-effective amendment.  The Company will
promptly (but in no event more than five (5) business days)
respond to any and all comments received from the SEC (which
comments shall promptly be made available to the Investors upon
request), with a view towards causing each Registration Statement
or any amendment thereto to be declared effective by the SEC as
soon as practicable, shall promptly file an acceleration request
as soon as practicable (but in no event more than two (2)
business days) following the resolution or clearance of all SEC
comments or, if applicable, following notification by the SEC
that any such Registration Statement or any amendment thereto
will not be subject to review and shall promptly file with the
SEC a final prospectus as soon as practicable (but in no event
more than two (2) business days) following receipt by the Company
from the SEC of an order declaring the Registration Statement
effective.  In the event of a breach by the Company of the
provisions of this Section 3(c), the Company will be required to
make payments pursuant to Section 2(c) hereof.

               d.   The Company shall use reasonable efforts to
(i) register and qualify the Registrable Securities covered by the
Registration Statements under such other securities or "blue sky"
laws of such jurisdictions in the United States as the Investors who
hold a majority in interest of the Registrable Securities being
offered reasonably request, (ii) prepare and file in those
jurisdictions such amendments (including post-effective amendments)
and supplements to such registrations and qualifications as may be

                            6
<PAGE>

necessary to maintain the effectiveness thereof during the
Registration Period, (iii) take such other actions as may be
necessary to maintain such registrations and qualifications in
effect at all times during the Registration Period, and (iv) take
all other actions reasonably necessary or advisable to qualify
the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in
connection therewith or as a condition thereto to (a) qualify to
do business in any jurisdiction where it would not otherwise be
required to qualify but for this Section 3(d), (b) subject itself
to general taxation in any such jurisdiction, (c) file a general
consent to service of process in any such jurisdiction,
(d) provide any undertakings that cause the Company undue expense
or burden, or (e) make any change in its charter or bylaws, which
in each case the Board of Directors of the Company determines to
be contrary to the best interests of the Company and its
shareholders.

               e.   In the event Investors who hold a majority-in-
interest of the Registrable Securities being offered in the offering
(with the approval of a majority-in-interest of the Initial Investors)
select underwriters for the offering, the Company shall enter
into and perform its obligations under an underwriting agreement,
in usual and customary form, including, without limitation,
customary indemnification and contribution obligations, with the
underwriters of such offering.

               f.   As promptly as practicable after becoming aware of
such event, the Company shall notify each Investor of the happening of
any event, of which the Company has knowledge, as a result of
which the prospectus included in any Registration Statement, as
then in effect, includes an untrue statement of a material fact
or omission to state a material fact required to be stated
therein or necessary to make the statements therein not
misleading, and use its best efforts promptly to prepare a
supplement or amendment to any Registration Statement to correct
such untrue statement or omission, and deliver such number of
copies of such supplement or amendment to each Investor as such
Investor may reasonably request; provided that, for not more than
ten (10) consecutive trading days (or a total of not more than
twenty (20) trading days in any twelve (12) month period), the
Company may delay the disclosure of material non-public
information concerning the Company (as well as prospectus or
Registration Statement updating) the disclosure of which at the
time is not, in the good faith opinion of the Company, in the
best interests of the Company (an "Allowed Delay"); provided,
further, that the Company shall promptly (i) notify the Investors
in writing of the existence of (but in no event, without the
prior written consent of an Investor, shall the Company disclose
to such investor any of the facts or circumstances regarding)
material non-public information giving rise to an Allowed Delay
and (ii) advise the Investors in writing to cease all sales under
such Registration Statement until the end of the Allowed Delay.
Upon expiration of the Allowed Delay, the Company shall again be
bound by the first sentence of this Section 3(f) with respect to
the information giving rise thereto.

               g.   The Company shall use its best efforts to prevent
the issuance of any stop order or other suspension of effectiveness
of any Registration Statement, and, if such an order is issued,
to obtain the withdrawal of such order at the earliest possible
moment and to notify each Investor who holds Registrable
Securities being sold (or, in the event of an underwritten
offering, the managing underwriters) of the issuance of such
order and the resolution thereof.

                            7
<PAGE>

               h.   The Company shall permit a single firm of counsel
designated by the Initial Investors to review such Registration
Statement and all amendments and supplements thereto (as well as all
requests for acceleration or effectiveness thereof) a reasonable
period of time prior to their filing with the SEC, and not file
any document in a form to which such counsel reasonably objects
and will not request acceleration of such Registration Statement
without prior notice to such counsel.  The sections of such
Registration Statement covering information with respect to the
Investors, the Investor's beneficial ownership of securities of
the Company or the Investors intended method of disposition of
Registrable Securities shall conform to the information provided
to the Company by each of the Investors.

               i.   The Company shall make generally available to its
security holders as soon as practicable, but not later than ninety (90)
days after the close of the period covered thereby, an earnings
statement (in form complying with the provisions of Rule 158
under the 1933 Act) covering a twelve-month period beginning not
later than the first day of the Company's fiscal quarter next
following the effective date of the Registration Statement.

               j.   At the request of any Investor, the Company shall
furnish, on the date that Registrable Securities are delivered to an
underwriter, if any, for sale in connection with any Registration
Statement or, if such securities are not being sold by an
underwriter, on the date of effectiveness thereof (i) an opinion,
dated as of such date, from counsel representing the Company for
purposes of such Registration Statement, in form, scope and
substance as is customarily given in an underwritten public
offering, addressed to the underwriters, if any, and the
Investors and (ii) a letter, dated such date, from the Company's
independent certified public accountants in form and substance as
is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to
the underwriters, if any, and the Investors.

               k.   The Company shall make available for inspection by
(i) any Investor, (ii) any underwriter participating in any disposition
pursuant to a Registration Statement, (iii) one firm of attorneys
and one firm of accountants or other agents retained by the
Initial Investors, (iv) one firm of attorneys and one firm of
accountants or other agents retained by all other Investors, and
(v) one firm of attorneys retained by all such underwriters
(collectively, the "Inspectors") all pertinent financial and
other records, and pertinent corporate documents and properties
of the Company, including without limitation, records of
conversions by other holders of convertible securities issued by
the Company and the issuance of stock to such holders pursuant to
the conversions (collectively, the "Records"), as shall be
reasonably deemed necessary by each Inspector to enable each
Inspector to exercise its due diligence responsibility, and cause
the Company's officers, directors and employees to supply all
information which any Inspector may reasonably request for
purposes of such due diligence; provided, however, that each
Inspector shall hold in confidence and shall not make any
disclosure (except to an Investor) of any Record or other
information which the Company determines in good faith to be
confidential, and of which determination the Inspectors are so
notified, unless (a) the disclosure of such Records is necessary
to avoid or correct a misstatement or omission in any
Registration Statement, (b) the release of such Records is
ordered pursuant to a subpoena or other order from a court or
government body of competent jurisdiction, or (c) the information
in such Records has been made generally available to the public
other than by disclosure in violation of this or any other
agreement.  The Company shall not be required to disclose any

                            8
<PAGE>

confidential information in such Records to any Inspector until
and unless such Inspector shall have entered into confidentiality
agreements (in form and substance satisfactory to the Company)
with the Company with respect thereto, substantially in the form
of this Section 3(k).  Each Investor agrees that it shall, upon
learning that disclosure of such Records is sought in or by a
court or governmental body of competent jurisdiction or through
other means, give prompt notice to the Company and allow the
Company, at its expense, to undertake appropriate action to
prevent disclosure of, or to obtain a protective order for, the
Records deemed confidential.  Nothing herein (or in any other
confidentiality agreement between the Company and any Investor)
shall be deemed to limit the Investor's ability to sell
Registrable Securities in a manner which is otherwise consistent
with applicable laws and regulations.

               l.   The Company shall hold in confidence and not
make any disclosure of information concerning an Investor provided
to the Company unless (i) disclosure of such information is necessary
to comply with federal or state securities laws, (ii) the disclosure
of such information is necessary to avoid or correct a
misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or
other order from a court or governmental body of competent
jurisdiction, or (iv) such information has been made generally
available to the public other than by disclosure in violation of
this or any other agreement.  The Company agrees that it shall,
upon learning that disclosure of such information concerning an
Investor is sought in or by a court or governmental body of
competent jurisdiction or through other means, give prompt notice
to such Investor prior to making such disclosure, and allow the
Investor, at its expense, to undertake appropriate action to
prevent disclosure of, or to obtain a protective order for, such
information.

               m.   The Company shall (i) cause all the Registrable
Securities covered by the Registration Statement to be listed on each
national securities exchange on which securities of the same
class or series issued by the Company are then listed, if any, if
the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) to the extent the
securities of the same class or series are not then listed on a
national securities exchange, secure the designation and
quotation, of all the Registrable Securities covered by the
Registration Statement on Nasdaq or, if not eligible for Nasdaq,
on Nasdaq SmallCap or, if not eligible for Nasdaq or Nasdaq
SmallCap, on the OTCBB and, without limiting the generality of
the foregoing, to arrange for at least two market makers to
register with the National Association of Securities Dealers,
Inc. ("NASD") as such with respect to such Registrable
Securities.

               n.   The Company shall provide a transfer agent and
registrar, which may be a single entity, for the Registrable Securities
not later than the effective date of the Registration Statement.

               o.   The Company shall cooperate with the Investors who
hold Registrable Securities being offered and the managing underwriter
or underwriters, if any, to facilitate the timely preparation and
delivery of certificates (not bearing any restrictive legends)
representing Registrable Securities to be offered pursuant to a
Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the managing
underwriter or underwriters, if any, or the Investors may
reasonably request and registered in such names as the managing
underwriter or underwriters, if any, or the Investors may
request, and, within three (3) business days after a Registration

                            9
<PAGE>

Statement which includes Registrable Securities is ordered
effective by the SEC, the Company shall deliver, and shall cause
legal counsel selected by the Company to deliver, to the transfer
agent for the Registrable Securities (with copies to the
Investors whose Registrable Securities are included in such
Registration Statement) an instruction in the form attached
hereto as Exhibit 1 and an opinion of such counsel in the form
attached hereto as Exhibit 2.

               p.   At the request of the holders of a majority-in-
interest of the Registrable Securities, the Company shall prepare and
file with the SEC such amendments (including post-effective
amendments) and supplements to a Registration Statement and any
prospectus used in connection with the Registration Statement as
may be necessary in order to change the plan of distribution set
forth in such Registration Statement.

               q.   From and after the date of this Agreement, the
Company shall not, and shall not agree to, allow the holders of any
securities of the Company to include any of their securities in any
Registration Statement under Section 2(a) hereof or any amendment
or supplement thereto under Section 3(b) hereof without the
consent of the holders of a majority-in-interest of the
Registrable Securities.

               r.   The Company shall take all other reasonable actions
necessary to expedite and facilitate disposition by the Investors
of Registrable Securities pursuant to a Registration Statement.

          4.   OBLIGATIONS OF THE INVESTORS.
               ----------------------------

     In  connection  with  the registration  of  the  Registrable
Securities, the Investors shall have the following obligations:

               a.   It shall be a condition precedent to the obligations
of the Company to complete the registration pursuant to this Agreement
with respect to the Registrable Securities of a particular
Investor that such Investor shall furnish to the Company such
information regarding itself, the Registrable Securities held by
it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect
the registration of such Registrable Securities and shall execute
such documents in connection with such registration as the
Company may reasonably request.  At least three (3) business days
prior to the first anticipated filing date of the Registration
Statement, the Company shall notify each Investor of the
information the Company requires from each such Investor.

               b.   Each Investor, by such Investor's acceptance of
the Registrable Securities, agrees to cooperate with the Company as
reasonably requested by the Company in connection with the
preparation and filing of the Registration Statements hereunder,
unless such Investor has notified the Company in writing of such
Investor's election to exclude all of such Investor's Registrable
Securities from the Registration Statements.

               c.   In the event Investors holding a majority-in-
interest of the Registrable Securities being registered (with the
approval of the Initial Investors) determine to engage the services
of an underwriter, each Investor agrees to enter into and perform such
Investor's obligations under an underwriting agreement, in usual
and customary form, including, without limitation, customary
indemnification and contribution obligations, with the managing

                            10
<PAGE>

underwriter of such offering and take such other actions as are
reasonably required in order to expedite or facilitate the
disposition of the Registrable Securities, unless such Investor
has notified the Company in writing of such Investor's election
to exclude all of such Investor's Registrable Securities from
such Registration Statement.

               d.   Each Investor agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind
described in Section 3(f) or 3(g), such Investor will immediately
discontinue disposition of Registrable Securities pursuant to the
Registration Statement covering such Registrable Securities until
such Investor's receipt of the copies of the supplemented or
amended prospectus contemplated by Section 3(f) or 3(g) and, if
so directed by the Company, such Investor shall deliver to the
Company (at the expense of the Company) or destroy (and deliver
to the Company a certificate of destruction) all copies in such
Investor's possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such
notice.

               e.   No Investor may participate in any underwritten
registration hereunder unless such Investor (i) agrees to sell such
Investor's Registrable Securities on the basis provided in any
underwriting arrangements in usual and customary form entered into
by the Company, (ii) completes and executes all questionnaires, powers
of attorney, indemnities, underwriting agreements and other
documents reasonably required under the terms of such
underwriting arrangements, and (iii) agrees to pay its pro rata
share of all underwriting discounts and commissions and any
expenses in excess of those payable by the Company pursuant to
Section 5 below.

          5.   EXPENSES OF REGISTRATION.
               ------------------------

     All  reasonable expenses, other than underwriting  discounts
and  commissions,  incurred  in  connection  with  registrations,
filings  or  qualifications  pursuant  to  Sections  2   and   3,
including,  without  limitation, all  registration,  listing  and
qualification fees, printers and accounting fees,  the  fees  and
disbursements of counsel for the Company, and the reasonable fees
and   disbursements  of  one  counsel  selected  by  the  Initial
Investors  pursuant  to Sections 2(b) and 3(h)  hereof  shall  be
borne by the Company.

          6.   INDEMNIFICATION.
               ---------------

     In  the event any Registrable Securities are included  in  a
Registration Statement under this Agreement:

               a.   To the extent permitted by law, the Company will
indemnify, hold harmless and defend (i) each Investor who holds such
Registrable Securities, (ii) the directors, officers, partners,
employees, agents and each person who controls any Investor
within the meaning of the 1933 Act or the Securities Exchange Act
of 1934, as amended (the "1934 Act"), if any, (iii) any
underwriter (as defined in the 1933 Act) for the Investors, and
(iv) the directors, officers, partners, employees and each person
who controls any such underwriter within the meaning of the 1933
Act or the 1934 Act, if any (each, an "Indemnified Person"),
against any joint or several losses, claims, damages, liabilities
or expenses (collectively, together with actions, proceedings or
inquiries by any regulatory or self-regulatory organization,

                            11
<PAGE>

whether commenced or threatened, in respect thereof, "Claims") to
which any of them may become subject insofar as such Claims arise
out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact in a Registration Statement
or the omission or alleged omission to state therein a material
fact required to be stated or necessary to make the statements
therein not misleading; (ii) any untrue statement or alleged
untrue statement of a material fact contained in any preliminary
prospectus if used prior to the effective date of such
Registration Statement, or contained in the final prospectus (as
amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to
make the statements made therein, in light of the circumstances
under which the statements therein were made, not misleading; or
(iii) any violation or alleged violation by the Company of the
1933 Act, the 1934 Act, any other law, including, without
limitation, any state securities law, or any rule or regulation
thereunder relating to the offer or sale of the Registrable
Securities (the matters in the foregoing clauses (i) through
(iii) being, collectively, "Violations").  Subject to the
restrictions set forth in Section 6(c) with respect to the number
of legal counsel, the Company shall reimburse the Indemnified
Person, promptly as such expenses are incurred and are due and
payable, for any reasonable legal fees or other reasonable
expenses incurred by them in connection with investigating or
defending any such Claim.  Notwithstanding anything to the
contrary contained herein, the indemnification agreement
contained in this Section 6(a): (i) shall not apply to a Claim
arising out of or based upon a Violation which occurs in reliance
upon and in conformity with information furnished in writing to
the Company by any Indemnified Person or underwriter for such
Indemnified Person expressly for use in connection with the
preparation of such Registration Statement or any such amendment
thereof or supplement thereto, if such prospectus was timely made
available by the Company pursuant to Section 3(c) hereof; (ii)
shall not apply to amounts paid in settlement of any Claim if
such settlement is effected without the prior written consent of
the Company, which consent shall not be unreasonably withheld;
and (iii) with respect to any preliminary prospectus, shall not
inure to the benefit of any Indemnified Person if the untrue
statement or omission of material fact contained in the
preliminary prospectus was corrected on a timely basis in the
prospectus, as then amended or supplemented, such corrected
prospectus was timely made available by the Company pursuant to
Section 3(c) hereof, and the Indemnified Person was promptly
advised in writing not to use the incorrect prospectus prior to
the use giving rise to a Violation and such Indemnified Person,
notwithstanding such advice, used it.  Such indemnity shall
remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Investors
pursuant to Section 9.

               b.   In connection with any Registration Statement in
which an Investor is participating, each such Investor agrees severally
and not jointly to indemnify, hold harmless and defend, to the
same extent and in the same manner set forth in Section 6(a), the
Company, each of its directors, each of its officers who signs
the Registration Statement, each person, if any, who controls the
Company within the meaning of the 1933 Act or the 1934 Act, any
underwriter and any other shareholder selling securities pursuant
to the Registration Statement or any of its directors or officers
or any person who controls such shareholder or underwriter within
the meaning of the 1933 Act or the 1934 Act (collectively and
together with an Indemnified Person, an "Indemnified Party"),
against any Claim to which any of them may become subject, under
the 1933 Act, the 1934 Act or otherwise, insofar as such Claim
arises out of or is based upon any Violation by such Investor, in
each case to the extent (and only to the extent) that such

                            12
<PAGE>

Violation occurs in reliance upon and in conformity with written
information furnished to the Company by such Investor expressly
for use in connection with such Registration Statement; and
subject to Section 6(c) such Investor will reimburse any legal or
other expenses (promptly as such expenses are incurred and are
due and payable) reasonably incurred by them in connection with
investigating or defending any such Claim; provided, however,
that the indemnity agreement contained in this Section 6(b) shall
not apply to amounts paid in settlement of any Claim if such
settlement is effected without the prior written consent of such
Investor, which consent shall not be unreasonably withheld;
provided, further, however, that the Investor shall be liable
under this Agreement (including this Section 6(b) and Section 7)
for only that amount as does not exceed the net proceeds to such
Investor as a result of the sale of Registrable Securities
pursuant to such Registration Statement.  Such indemnity shall
remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive
the transfer of the Registrable Securities by the Investors
pursuant to Section 9. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this
Section 6(b) with respect to any preliminary prospectus shall not
inure to the benefit of any Indemnified Party if the untrue
statement or omission of material fact contained in the
preliminary prospectus was corrected on a timely basis in the
prospectus, as then amended or supplemented.

               c.   Promptly after receipt by an Indemnified Person
or Indemnified Party under this Section 6 of notice of the
commencement of any action (including any governmental action),
such Indemnified Person or Indemnified Party shall, if a Claim in
respect thereof is to be made against any indemnifying party
under this Section 6, deliver to the indemnifying party a written
notice of the commencement thereof, and the indemnifying party
shall have the right to participate in, and, to the extent the
indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume control of the
defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified
Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses to be paid by the
indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such
counsel of the Indemnified Person or Indemnified Party and the
indemnifying party would be inappropriate due to actual or
potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel
in such proceeding.  The indemnifying party shall pay for only
one separate legal counsel for  the Indemnified Persons or the
Indemnified Parties, as applicable, and such legal counsel shall
be selected by Investors holding a majority-in-interest of the
Registrable Securities included in the Registration Statement to
which the Claim relates (with the approval of a majority-in-
interest of the Initial Investors), if the Investors are entitled
to indemnification hereunder, or the Company, if the Company is
entitled to indemnification hereunder, as applicable.  The
failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action
shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party under this Section 6,
except to the extent that the indemnifying party is actually
prejudiced in its ability to defend such action.  The
indemnification required by this Section 6 shall be made by
periodic payments of the amount thereof during the course of the
investigation or defense, as such expense, loss, damage or
liability is incurred and is due and payable.

                            13
<PAGE>

          7.   CONTRIBUTION.
               ------------

     To  the extent any indemnification by an indemnifying  party
is prohibited or limited by law, the indemnifying party agrees to
make  the  maximum contribution with respect to any  amounts  for
which it would otherwise be liable under Section 6 to the fullest
extent   permitted  by  law;  provided,  however,  that  (i)   no
contribution  shall be made under circumstances where  the  maker
would  not  have been liable for indemnification under the  fault
standards  set forth in Section 6, (ii) no seller of  Registrable
Securities  guilty  of fraudulent misrepresentation  (within  the
meaning  of  Section 11(f) of the 1933 Act) shall be entitled  to
contribution  from any seller of Registrable Securities  who  was
not    guilty   of   such   fraudulent   misrepresentation,   and
(iii)contribution  (together with any  indemnification  or  other
obligations  under this Agreement) by any seller  of  Registrable
Securities  shall  be  limited in amount to  the  net  amount  of
proceeds  received  by  such  seller  from  the  sale   of   such
Registrable Securities.

          8.   REPORTS UNDER THE 1934 ACT.
               --------------------------

     With  a  view  to  making available  to  the  Investors  the
benefits of Rule 144 promulgated under the 1933 Act or any  other
similar rule or regulation of the SEC that may at any time permit
the  investors  to sell securities of the Company to  the  public
without registration ("Rule 144"), the Company agrees to:

               a.   make and keep public information available, as
those terms are understood and defined in Rule 144;

               b.   file with the SEC in a timely manner all reports
and other documents required of the Company under the 1933 Act and
the 1934 Act so long as the Company remains subject to such
requirements (it being understood that nothing herein shall limit
the Company's obligations under Section 4(c) of the Securities
Purchase Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144;
and

               c.   furnish to each Investor so long as such Investor
owns Registrable Securities, promptly upon request, (i) a written
statement by the Company that it has complied with the reporting
requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a
copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested to
permit the Investors to sell such securities pursuant to Rule 144
without registration.

          9.   ASSIGNMENT OF REGISTRATION RIGHTS.
               ---------------------------------

     The  rights  under  this  Agreement shall  be  automatically
assignable  by  the Investors to any transferee  of  all  or  any
portion of Registrable Securities if: (i) the Investor agrees  in
writing  with  the transferee or assignee to assign such  rights,
and a copy of such agreement is furnished to the Company within a
reasonable  time  after such assignment,  (ii)  the  Company  is,
within  a  reasonable  time after such  transfer  or  assignment,
furnished with written notice of (a) the name and address of such
transferee  or assignee, and (b) the securities with  respect  to
which such registration rights are being transferred or assigned,
(iii)   following  such  transfer  or  assignment,  the   further
disposition  of such securities by the transferee or assignee  is
restricted  under  the 1933 Act and applicable  state  securities

                            14
<PAGE>

laws, (iv) at or before the time the Company receives the written
notice  contemplated  by  clause  (ii)  of  this  sentence,   the
transferee or assignee agrees in writing with the Company  to  be
bound  by  all  of  the  provisions contained  herein,  (v)  such
transfer  shall have been made in accordance with the  applicable
requirements of the Securities Purchase Agreement, and (vi)  such
transferee shall be an "accredited investor" as that term defined
in Rule 501 of Regulation D promulgated under the 1933 Act.

          10.  AMENDMENT OF REGISTRATION RIGHTS.
               --------------------------------

     Provisions  of  this  Agreement  may  be  amended  and   the
observance  thereof  may  be waived (either  generally  or  in  a
particular  instance and either retroactively or  prospectively),
only  with  written consent of the Company, each of  the  Initial
Investors  (to  the  extent  such  Initial  Investor  still  owns
Registrable  Securities)  and  Investors  who  hold  a   majority
interest of the Registrable Securities.  Any amendment or  waiver
effected in accordance with this Section 10 shall be binding upon
each Investor and the Company.

          11.  MISCELLANEOUS.
               -------------

               a.   A person or entity is deemed to be a holder of
Registrable Securities whenever such person or entity owns of record
such Registrable Securities.  If the Company receives conflicting
instructions, notices or elections from two or more persons or
entities with respect to the same Registrable Securities, the
Company shall act upon the basis of instructions, notice or
election received from the registered owner of such Registrable
Securities.

               b.   Any notices required or permitted to be given
under the terms hereof shall be sent by certified or registered mail
(return receipt requested) or delivered personally or by courier
(including a recognized overnight delivery service) or by
facsimile and shall be effective five days after being placed in
the mail, if mailed by regular United States mail, or upon
receipt, if delivered personally or by courier (including a
recognized overnight delivery service) or by facsimile, in each
case addressed to a party.  The addresses for such communications
shall be:

               If to the Company:

               Med Gen, Inc.
               7284 Palmetto Park Road, Suite 207
               Boca Raton, FL 33433
               Attention: Chief Executive Officer
               Telephone: (561) 750-1100
               Facsimile: (561) 750-4623

                            15
<PAGE>

               With a copy to:

               Law Office if Stewart A. Merkin
               444 Brickell Avenue, Suite 300
               Miami, FL 33131
               Attention: Stewart A. Merkin, Esq.
               Telephone: (305) 357-5556
               Facsimile: (305) 358-2490

If to an Investor: to the address set forth immediately below
such Investor's name on the signature pages to the Securities
Purchase Agreement.

               With a copy to:

               Ballard Spahr Andrews & Ingersoll, LLP
               1735 Market Street
               51st Floor
               Philadelphia, Pennsylvania  19103
               Attention:  Gerald J. Guarcini, Esq.
               Telephone:  215-865-8625
               Facsimile:  215-864-8999

               c.   Failure of any party to exercise any right or
remedy under this Agreement or otherwise, or delay by a party in
exercising such right or remedy, shall not operate as a waiver thereof.

               d.    THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.  THE
PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH
RESPECT TO ANY DISPUTE ARISING UNDER THIS AGREEMENT, THE
AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES
IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES FURTHER
AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS
MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING.  NOTHING
HEREIN SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW.  BOTH PARTIES AGREE THAT A FINAL
NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON

                            16
<PAGE>

SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER.  THE PARTY WHICH
DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS AGREEMENT
SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING
ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION
WITH SUCH DISPUTE.

               e.   In the event that any provision of this Agreement
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 provision hereof
which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision
hereof.

               f.   This Agreement, the Notes, the Warrants and the
Securities Purchase Agreement (including all schedules and exhibits
thereto) constitute the entire agreement among the parties hereto with
respect to the subject matter hereof and thereof.  There are no
restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein and therein.  This
Agreement and the Securities Purchase Agreement supersede all
prior agreements and understandings among the parties hereto with
respect to the subject matter hereof and thereof.

               g.   Subject to the requirements of Section 9 hereof,
this Agreement shall be binding upon and inure to the benefit of the
parties and their successors and assigns.

               h.   The headings in this Agreement are for convenience
of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

               i.   This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of
which shall constitute one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered
to the other party.  This Agreement, once executed by a party, may
be delivered to the other party hereto by facsimile transmission
of a copy of this Agreement bearing the signature of the party so
delivering this Agreement.

               j.   Each party shall do and perform, or cause to be
done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments
and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated
hereby.

               k.   Except as otherwise provided herein, all consents
and other determinations to be made by the Investors pursuant to this
Agreement shall be made by Investors holding a majority of the
Registrable Securities, determined as if the all of the Notes
then outstanding have been converted into for Registrable
Securities.

               l.   The Company acknowledges that a breach by it of its
obligations hereunder will cause irreparable harm to each
Investor by vitiating the intent and purpose of the transactions
contemplated hereby.  Accordingly, the Company acknowledges that
the remedy at law for breach of its obligations under this
Agreement will be inadequate and agrees, in the event of a breach

                            17
<PAGE>

or threatened breach by the Company of any of the provisions
under this Agreement, that each Investor shall be entitled, in
addition to all other available remedies in law or in equity, and
in addition to the penalties assessable herein,  to an injunction
or injunctions restraining, preventing or curing any breach of
this Agreement and to enforce specifically the terms and
provisions hereof, without the necessity of showing economic loss
and without any bond or other security being required.

                m.   The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any
party.

          [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                            18
<PAGE>

     IN  WITNESS WHEREOF, the Company and the undersigned Initial
Investors  have caused this Agreement to be duly executed  as  of
the date first above written.

MED GEN, INC.

______________________________________
Paul B. Kravitz
Chairman and Chief Executive Officer

AJW PARTNERS, LLC
By:  SMS Group, LLC

______________________________________
Corey S. Ribotsky
Manager

AJW OFFSHORE, LTD.
By:  First Street Manager II, LLC

______________________________________
Corey S. Ribotsky
Manager

AJW QUALIFIED PARTNERS, LLC
By:  AJW Manager, LLC

______________________________________
Corey S. Ribotsky
Manager

NEW MILLENNIUM CAPITAL PARTNERS, II, LLC
By:  First Street Manager II, LLC

______________________________________
Corey S. Ribotsky
Manager

                            19
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]