Document:

EXHIBIT 10.1

                                                                  EXECUTION COPY
                                                                  --------------

                             SKYE MULTIMEDIA, INC.
                             ---------------------

                                     SELLER
                                     ------

                                       To

                         SKYE ACQUISITION COMPANY, INC.
                         ------------------------------

                                    PURCHASER
                                    ---------

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

                            ASSET PURCHASE AGREEMENT

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

                                    Assets of
                              Skye Multimedia, Inc.
                          1031 Route 22 West, Suite 301
                          Bridgewater, New Jersey 08807

<PAGE>

                                    AGREEMENT

         Agreement made this 14th day of February, 2006, by and between Skye
Multimedia, Inc., (hereinafter referred to as "Seller"), having an address and
principal place of business at 1031 Route 22 West, Suite 301, Bridgewater, New
Jersey 08807 (the "Business Space"), and Skye Acquisition Company, Inc., a New
Jersey Corporation, (hereinafter referred to as "Purchaser") having an address
of 12 Skyline Drive, Hawthorne, New York 10532.

                                   WITNESSETH

         WHEREAS, Seller desires to sell, and Purchaser desires to purchase,
certain assets of Seller, including the assets more particularly described
herein, all upon the terms and subject to the conditions herein set forth:

         NOW, THEREFORE, on the basis of the representations, and agreements
contained herein, it is hereby agreed as follows:

         1. DEFINITIONS. As used herein the following terms shall, unless the
context clearly indicates otherwise, have the following meanings:

         (a) "ASSUMED CONTRACTS" shall mean the Business Space Lease, Sales
Contracts, Purchase Orders and such other contracts and agreements listed on
Exhibit A hereto.

                                       2
<PAGE>

         (b) "ASSUMED LIABILITIES" shall mean all obligations and liabilities of
Seller pursuant to the terms of any Assumed Contract and the accounts payable
listed on Exhibit B.

         (c) "ACQUIRED ASSETS" shall mean all of the assets of Seller as of the
Purchase Date, which include, without limitation, the following, other than the
Excluded Assets:

                  (i) all office equipment, computer equipment, signage,
supplies and furniture and fixtures;

                  (ii) all accounts receivable, the "Purchased Receivables",
shall include, but not be limited to all work in progress or completed by Seller
but not yet billed to the customer;

                  (iii) to the extent transferable, all intellectual property
and related assets, including, without limitation, software owned or licensed,
programs, domain names, trademarks, trade names, including its corporate name,
manuals, product brochures, business methods and business procedures,
inventions, patent applications, patents, trademark registrations and
applications, copyrights, know-how, formulae and trade secrets;

                  (iv) customer and supplier lists, including contact
information for all consultants used in the last two years;

                  (v) all of Seller's rights under the "Assumed Contracts", as
defined herein, including all contracts wherein Seller has agreed to provide
services or goods to any third party or under which any third party provides
products or services to Seller, including the

                                       3
<PAGE>

leases of equipment and offices in Bridgewater, New Jersey, all described in
Exhibit A, but no other leases;

                  (vi) all deposits or other cash  received by Seller in
connection  with the "Assumed  Contracts", and;

                  (vii) all of the machinery, equipment, furniture, fixtures and
improvements, spare parts, supplies and motor vehicles used by the Seller in
connection with the operation of its business and located on the Business Space
or elsewhere on the Purchase Date and all of the replacement parts for any of
the foregoing, in which the Seller has on the Purchase Date any right, title or
interest, together with any rights of the Seller to the warranties and licenses,
if any, received from manufacturers and sellers of the aforesaid items and any
related claims, credits and rights of recovery with respect to such machinery
and equipment; and,

                  (viii) all cash, including deposits, advances or other cash
received in connection with work not yet completed under the Assumed Contracts.

         (d) "Capital" shall consist of any funds advanced by Purchaser's
parent, SmartPros Ltd., ("Purchaser's parent"), for the Initial Purchase Price
and for future working capital and asset requirements, in each case, without the
charging of interest. Such advances will be reflected on Purchaser's financial
statements as either capital, loans, or advances, or a combination thereof.
Capital may increase or decrease over the life of the Earnout Period

         (e) "CLOSING DATE" OR "CLOSING" shall mean 10:00 A.M. Eastern Standard
Time on February 28, 2006.

         (f) "INVENTORY" shall mean all of the raw materials, work-in-process
and

                                       4
<PAGE>

finished goods and other inventory and all other supplies used in the operation
of its business in which the Seller shall have any right, title and interest on
the Purchase Date (a list of which has previously been provided by Seller to
Purchaser), together will any rights of the Seller to the warranties received
from its suppliers with respect to such inventory and any related claims,
credits, rights of recovery and set-off with respect thereto.

         (g) "EMPLOYMENT AGREEMENT" shall mean the Employment Agreement to be
entered into between Seth Oberman and Purchaser, in substantially the form
attached hereto as Exhibit C.

         (h) "EXCLUDED ASSETS" shall mean:

                  (i) any books and records that Seller is required to retain
         pursuant to any statute, rule, regulation or ordinance, or which do not
         relate to the Purchased Assets;

                  (ii) all payments and consideration to be received by Seller
         from Purchaser, and all rights and remedies of Seller, under this
         Agreement or any agreement, instrument or other document delivered by
         or on behalf of any Purchaser pursuant hereto;

                  (iii) Seller's corporate franchise (other than the name "Skye
         Multimedia"), stock record books, corporate minute books, books of
         account and ledgers, and such other records having to do with Seller's
         organization or stock capitalization, and the assets set forth in
         Exhibit D.

         (i) "PURCHASE DATE" shall mean February 28, 2006.

                                       5
<PAGE>

         (j) "SALES CONTRACTS" shall mean those unfilled sales contracts,
customer orders and commitments between Seller and its customers listed in
Exhibit E annexed hereto.

         (k) "EBIT" shall mean Earnings Before Interest, Taxes,

         (l) "BALANCE SHEET" The balance sheet of Seller, as included in Exhibit
H hereto, shall mean the balance sheet of Seller at December 31, 2005.

         2. PURCHASE AND SALE OF THE ACQUIRED ASSETS.

         (a) PURCHASE. Subject to the terms and conditions herein set forth, on
the Closing Date, Seller shall sell and Purchaser shall purchase all of the
Acquired Assets as of the Purchase Date, free and clear of all mortgages, liens,
charges, encumbrances or defects of any nature whatsoever.

         (b) SALE AT CLOSING DATE. The sale, transfer, assignment and delivery
by Seller of the Acquired Assets to Purchaser, as herein provided, shall be
effected on the Closing Date by full warranty deeds, bills of sale,
endorsements, assignments and such other instruments of transfer and conveyance
satisfactory in form and substance to counsel for Purchaser.

         (c) SUBSEQUENT DOCUMENTATION. Seller shall, at any time and from time
to time after the Closing date, upon the request of Purchaser and at the expense
of Seller, execute, acknowledge and deliver or will cause to be done, executed,
acknowledged and delivered all such further acts, deeds, assignments, transfers,
conveyances and assurances as may be reasonably required for the better
assigning, transferring, granting, conveying, assuring and confirming to
Purchaser, or to its successors and assigns, or for aiding and

                                       6
<PAGE>

assisting in collecting and reducing to possession any or all of the Acquired
Assets to be purchased by Purchaser as provided herein.

         (d) ASSIGNMENT OF CONTRACTS. On the Closing Date, Seller shall assign
to Purchaser, and Purchaser shall assume, as of the Purchase Date all of the
Assumed Liabilities by means of an Assignment and Assumption Agreement in the
form of Exhibit F annexed hereto and made a part hereof or such other
instruments of assignment upon which the parties agree. To the extent that the
assignment of any Assumed Contract shall require the consent of the other party
thereto, this Agreement shall not constitute an agreement to assign the same if
an attempted assignment would constitute a breach thereof. Seller will use
reasonable commercial efforts to obtain the consent of the other parties to such
contracts for the assignment thereof to Purchaser. If such consent is not
obtained in respect of any such Assumed Contract, Seller will cooperate with
Purchaser in any reasonable arrangement requested by Purchaser to provide for
Purchaser the benefits under any such Assumed Contract, including enforcement at
the cost of and for the benefit of Purchaser, of any and all rights of Seller
against the other party thereto with respect to such Assumed Contract.

         (e) ASSUMPTION OF LIABILITIES. At the Closing Purchaser shall assume,
and agree to pay, perform or discharge, all obligations and liabilities of
Seller under the Assumed Contracts.

         (f) COLLECTION OF RECEIVABLES. Subject to Paragraph 6(a) Seller agrees
that, from and after the Closing Date, Purchaser shall have the right and
authority to collect, for the account of Purchaser, all Purchased Receivables
and other items which shall be transferred to Purchaser as provided herein, and
to endorse with the name of Seller any

                                       7
<PAGE>

checks received on account of any such Purchased Receivables or other items.
Seller agrees that it will transfer and deliver to Purchaser or its designee any
cash or other property that Seller may receive in respect of such Purchased
Receivables or other items. A list of all receivables of Seller as of the date
hereof, which shall be updated at the time of Closing Date shall be broken down
by name of customer, date incurred and amount is contained in Exhibit G attached
hereto. All payments made by a customer of the Seller's business or the Business
Unit (as defined below) shall be applied first to any Purchased Receivable(s)
outstanding of such customer, on the basis of older Purchased Receivables to
newer Purchased Receivables, unless the customer directs payment to be applied
in a particular manner arising out of a bona fide dispute concerning such
Purchased Receivables.

         Further, at Closing, Seller and its principal, Seth Oberman,
individually, shall guarantee to Purchaser the collection of all Purchased
Receivables. Should Purchaser not collect the full amount of Purchased
Receivables transferred to Purchaser, Purchaser shall be entitled to a credit in
the amount of the deficit of receivables actually collected against the
guarantee set forth above, in which case, said uncollected Purchased Receivable
shall be assigned to Seller. The collection by Seller or Seth Oberman of any
such assigned Purchased Receivable shall not violate the non-competition or
non-solicitation provisions of this Agreement or the Employment Agreement,
notwithstanding anything herein or therein to the contrary. If a dispute arises
in the collection of such Purchased Receivables, Purchaser agrees to make
reasonable efforts to cooperate and assist in the collection of such Purchased
Receivables, which efforts shall be subject to Purchaser's relationship with the
account, if any. Such credit shall be used to reduce the payments

                                       8
<PAGE>

due to Seller under Paragraph 4 herein providing for the "Additional Earnout
Payment". Should Seller not be entitled to an Additional Earnout Payment as
provided for in Paragraph 4, then and in that event, Seller and its principals
shall be obligated to remit said amounts due for such uncollectible Purchased
Receivables to Purchaser. Notwithstanding the aforesaid, if a Purchased
Receivable is uncollected as a result of the conduct of Purchaser occurring
after the Closing Date, and not attributable to either work performed by Seller
prior to the Closing Date or the conduct of Seller, or its former employees
subsequently employed by Purchaser, after the closing date, then and in that
event, Purchaser shall not receive a credit for the amount of the uncollected
Purchased Receivable against the Earnout Payment as provided herein nor shall
the guarantee of Seller and Seth Oberman apply to that uncollected Purchased
Receivable.

         (g) CONDUCT OF BUSINESS. All operations of Seller between the Purchase
Date and the Closing Date shall be conducted in the ordinary course of business
consistent with prior business practice of Seller for the account and benefit,
and the expense, of the Purchaser as if this Agreement had been consummated on
the Purchase Date, provided that if for any reason the Closing shall not occur
hereunder, Purchaser shall have no rights or liabilities with respect to such
operations and in such event the business of Seller from and after the Purchase
Date shall be conducted at the expense and for the account and benefit of
Seller. For purposes of the foregoing sentence, all income received or
receivable from and after the Purchase Date, and all expenses incurred, accrued
or paid in the ordinary course of business from and after the Purchase Date
shall, as to such income, be the property of, and as to such expenses, be the
obligations of, Purchaser if the Closing hereunder shall occur or of Seller if
the Closing hereunder shall not occur. Seller has

                                       9
<PAGE>

not taken from and after the Purchase Date, and shall not take from and after
the date hereof through the Closing Date, any action in connection with the
conduct of the business of Seller other than in the ordinary course of business
without the written consent of Purchaser, and, except as approved by Purchaser,
has not from and after the Purchase Date sold, leased, disposed of or encumbered
or entered into any commitment to sell, lease, dispose of or encumber and shall
not from and after the date hereof through the Closing Date, sell, lease,
dispose of or encumber, any item of the Acquired Assets, except items sold only
in the ordinary course of business.

         3. INITIAL PURCHASE PRICE. At Closing, as partial payment for the
transfer of the Acquired Assets by Seller, Purchaser shall pay to Seller as an
initial purchase price the sum of Five Hundred Twenty Thousand Dollars and no
cents, ($520,000.00), in immediately available funds by wire transfer to an
account designated by Seller prior to Closing, provided, however, that the
preceding Initial Purchase Price shall be adjusted, on a dollar for dollar
basis, on the Closing Date, in the event that the total sum of the Acquired
Assets less the total sum of Assumed Liabilities on the Closing Date is not
within Ten Thousand Dollars ($10,000.00) of the same calculation as of December
31, 2005. In the event that the Purchase Price is adjusted below $500,000.00 or
above $540,000.00, either party may terminate this Agreement and this Agreement
shall be null and void.

         4. ADDITIONAL EARNOUT PAYMENT. In addition to the Initial Purchase
Price in Paragraph 3 above, Purchaser shall pay to Seller, within 90 days of
December 31, 2008, an Additional Earnout Payment. The Additional Earnout Payment
shall be calculated as follows:

                                       10
<PAGE>

         o The total EBIT for the 34 month period beginning March 1, 2006 and
ending December 31, 2008, shall be divided by 34, which sum shall then be
multiplied by 36, which sum shall be reduced by a 5% annualized return on
Capital for the amount of time during the 34 month period such Capital is
invested in Purchaser.. In regard to this calculation all work performed by
Purchaser's parent, or any subsidiary or division of such parent for the
Business Unit or by the Business Unit for Purchaser's parent or any subsidiary
or division shall be performed at cost. Where costs are not directly borne by
the Business Unit, such costs shall be allocated by Purchaser's parent among the
Business Unit, Purchaser's parent and any of its other subsidiaries or divisions
based upon the total amounts expended for such services and how such services
are allocated and utilized by the Business Unit, Purchaser's parent and its
other subsidiaries and or divisions. Such costs shall include, but not be
limited to, insurance, accounting, marketing, computer services, legal and
professional services. Business Unit will have the choice to use services other
than those allocated services where such services are available at a lower cost.
Any salary increases or bonuses not approved by Seth Oberman and provided to the
employees of Business Unit will be in line with standard practices of Purchaser
with its other employees and business units.

         In no event, however, shall the Additional Earnout Payment exceed One
Million Four Hundred Thousand Dollars ($1,400,000.00), with Purchaser to receive
a credit against said Earnout Payment of the sum of $200,000.00, plus the amount
of any uncollected Purchased Receivables, in accordance with Paragraph 2 (f)
above The aforesaid Additional Earnout Payment calculation, less the $200,000.00
credit, shall not be less than zero, i.e. Seller shall not be obligated to remit
said amount back to Purchaser.

                                       11
<PAGE>

The only circumstance wherein Seller would be obligated to remit monies back to
Purchaser is in the event that uncollected Purchased Receivables, exceed
Seller's Additional Earnout Payment, as calculated above, if any. In such event,
Seller shall be obligated to remit the difference between the uncollected
Purchased Receivable and the Additional Earnout Payment as calculated above.
Legal or accounting fees or expenses arising out of the preparation of this
Agreement or the Employment Agreement will not be included in the calculation of
the Earnout.

                  5. TERMS OF ADDITIONAL EARNOUT PAYMENT. The Additional Earnout
Payment described above in paragraph 4 shall be made from Purchaser to Seller as
follows:

                  (i) At least 50% of the Additional Earnout Payment shall be in
cash or cash equivalent, and;

                  (ii) The amount of the Additional Earnout Payment remaining
after payment is made

pursuant to (i) above, may be paid in the form of SmartPros Ltd. common stock or
cash, at Purchaser's sole option, provided that the common stock of SmartPros
Ltd. is listed on the New York Stock Exchange (or its successor), the American
Stock Exchange or the Nasdaq National Market, and Purchaser has timely filed all
periodic reports required to be filed under the Securities Exchange Act of 1934,
amended (the "EXCHANGE ACT"), for the two consecutive years immediately prior to
issuance of the stock pursuant to this Paragraph.

                  (iii) Any payment given by Purchaser in the form of .
SmartPros Ltd. common stock, as set forth in subparagraph 6(ii), shall be valued
at the average market

                                       12
<PAGE>

closing price of SmartPros Ltd. common stock for the twenty business days after
December 31, 2008.

         6. OPERATION OF THE BUSINESS UNIT: AUDIT AND INSPECTION RIGHTS.

           (a) Purchaser shall continue the operation of Seller's business in, a
separate division or subsidiary (the "Business Unit") of Purchaser's parent, as
hereinbefore defined. The Business Unit shall account for its revenues, expenses
and operations separately and apart from Purchaser's parent and other
subsidiaries or divisions of Purchaser's parent, and in a manner consistent with
GAAP. At the request of the Business Unit, Purchaser's parent agrees to use
reasonable commercial efforts to provide marketing and administrative support to
the Business Unit which costs shall be allocated by the Purchaser's parent among
the Business Unit, Purchaser's parent and any of its other subsidiaries or
divisions, based upon the total amounts expended for such services and how such
services are allocated and utilized by the Business Unit, Purchaser's parent and
its other subsidiaries and or divisions.

           (b) Within forty-five (45) days following the end of each calendar
quarter, Purchaser shall provide Seller with a statement of the Assumed EBIT for
the Business Unit for the preceding quarter. Seller shall be entitled to a
reasonable inspection of the books and records of the Business Unit pertaining
to the calculation of the Assumed EBIT and the Additional Earnout Payment upon
prior reasonable notice to Purchaser.

           (c) Seller shall have 30 days after the payment of the Additional
Earnout Payment to notify Purchaser that Seller disagrees with the determination
of the amount of the Additional Earnout Payment and objects to the calculation
of the additional

                                       13
<PAGE>

consideration set forth therein by giving Purchaser written notice of any such
disagreement and objection (the "Disapproval Notice") within such time frame. If
a Disapproval Notice is not timely given, such Additional Earnout Payment shall
be deemed final, conclusive and binding and not subject to further objection or
review by Seller. If the Disapproval Notice is given by seller, such notice
shall state with specificity the particular items with which Seller does not
agree and contain reasonable supporting materials therefore. Purchaser and
Seller agree to endeavor in good faith to resolve any disputes in the
determination of the Additional Earnout Payment. In the absence of a resolution
of the disputed items within 10 business days after Purchaser's receipt of the
Disapproval Notice and if the parties are unable to agree upon an Independent
CPA (as defined below), Seller and Purchaser each shall promptly select an
independent certified public accountant from a nationally recognized public
accounting firm, excluding any accounting firm that has a significant
relationship with Seller, Purchaser or their respective Affiliates, (the
"Independent CPA" and such Independent CPA's shall select a third Independent
CPA within 10 business days. The third Independent CPA shall act as an
arbitrator and decide upon the disputed items within 30 days after such
appointment. The decision of such Independent CPA as to the disputed items shall
be final, conclusive and binding upon Purchaser and Seller. If, as a result of
the decision of such Independent CPA, the Additional Earnout Payment is adjusted
upward by more than $50,000, the fees and expenses of all of the Independent
CPAs shall be borne by Purchaser;, otherwise the fees and expenses of all of the
Independent CPAs and all costs incurred by Purchaser with regard to the
Disapproval Notice shall be borne by Seller.

                                       14
<PAGE>

         7. ADJUSTMENTS AT CLOSING. Adjustments shall be made as of the Closing
Date for all operating expenses including rents, insurance premiums, taxes,
fuel, utilities and prepaid utility charges, water, electric, and advertising,
if any. The annual contracts for service contracts, phone directory and the like
shall be prorated.

         8. TIME OF CLOSING. The closing shall take place at the Office of
Purchaser's attorneys, Reeve & Van Horne, 65 North Dean Street, Englewood, New
Jersey 07461, on February 28, 2006, at 10:00 A.M, or such later date as the
parties may mutually agree in writing. Upon payment of the portion of the
purchase price then due to Seller as well as the execution of any and all
related documents, Seller shall deliver to Purchaser such instruments of
transfer as are necessary to transfer to Purchaser the Acquired Assets and
property referred to in Paragraph 1(b). Such instruments of transfer shall
effectively transfer to Purchaser full title to the assets and property referred
to in Paragraph 1(b).

         9. COVENANT NOT TO COMPETE. Skye Multimedia, Inc., Seller, and any and
all of its subsidiaries, affiliates, parents, as well as its shareholders,
directors and officers, for a period of two (2) years from the Closing Date,
shall not directly or indirectly, engage in competition with Purchaser or its
parent, subsidiaries or affiliated companies or own or control any interest in,
or act as director, officer or employee of, or consultant to, any firm,
corporation or institution directly engaged in competition with Purchaser or its
parent, subsidiaries or affiliated companies; provided that the Purchaser or any
parent, subsidiaries or affiliated companies is actively engaged in such
business on the Closing Date; and provided that the foregoing shall not prevent
such persons set forth above from holding shares as a passive investor in a
publicly held company which do not constitute more than 5% of the outstanding
shares of such company. In the event that

                                       15
<PAGE>

any of such persons set forth above shall become employed by Purchaser or any
parent, subsidiaries or affiliated companies after the Closing Date, then and in
that event, he or she shall agree to the non-competition provisions set forth
above for a two (2) year period from the date such employment is terminated.
Engaging in Competition with the Purchaser or its parent, subsidiaries or
affiliated companies shall be defined as either (a) providing, or working for an
entity that provides, educational learning thru any type of media for sale to
other clients but not for its own internal use or (b) working for a customer of
the Purchaser or its parent or other subsidiaries of parent and providing
educational learning services for their internal use causing the customer to
reduce the business they do with Purchaser or its parent or other subsidiaries
of parent, provided that the customer did at least $50,000 worth of such
business with the Purchaser or its parent or other subsidiaries of parent, in
either of the last 2 years. Seller acknowledges and agrees that this Covenant
Not to Compete is commercially reasonable in scope, limit, and duration and,
therefore, is acknowledged by Seller as fully enforceable and not
unconscionable.

         10. CREDITORS. If not contained herein, Seller agrees to furnish
Purchaser a list of Seller's existing creditors, containing the names and
business addresses of all such creditors, with the amounts owed to each and also
the names and addresses of all persons who are known to Seller to assert claims
against Seller, whether disputed or not. Such list shall be signed and sworn to
or affirmed by Seller or his agent and shall be delivered to Purchaser at least
15 days before the date scheduled for closing. Purchaser covenants that he will
preserve the list and schedule for a period of six months following the date of
closing and shall permit inspection of either or both and copying thereof at all
reasonable

                                       16
<PAGE>

hours by any creditor of Seller; or in the alternative shall file such list and
schedule in the office of the Secretary of State of New Jersey within 15 days
after the date of closing.

         11. NOTICE TO CREDITORS. Purchaser further covenants that he will give
such notice to the Creditors of Seller as required by and in the form and manner
and within the time provided by New Jersey law.

         12. ASSIGNMENT OF THIS AGREEMENT. This Agreement may not be assigned by
Purchaser without the prior written consent of Seller, which may be given or
denied at Seller's sole discretion. Any attempted assignment in violation of
this Paragraph 12 shall be void.

         13. REMEDIES FOR DEFAULT. Both Seller and Purchaser shall have such
remedies as are provided in law and equity for breach of this Agreement by the
other party.

         14. REPRESENTATIONS OF SELLER. Seller represents and warrants that
Seller at the date hereof and at the Closing:

             (a) Seller has operated its business in all material respects in
accordance with all laws, ordinances, and rules relating to the business, that
it has received no notice of any material violation of any of the foregoing, and
that it has duly authorized the transactions contemplated by this Agreement, and
that this Agreement is enforceable and binding upon it.

             (b) There are no proceedings, judgments or liens now pending or, to
Seller's knowledge, threatened against Seller or against its business.

             (c) It will, up to the date of closing, operate its business in the
usual

                                       17
<PAGE>

and ordinary manner and will not enter into any contract except as may be
required in the regular course of business.

             (d) It will duly comply with the provisions of the New Jersey
Uniform Commercial Code dealing with bulk transfers, if applicable.

             (e) It has not used any other business name within the past three
years.

             (f) It has not entered into any Collective Bargaining Agreements.

             (g) There are no executory contracts and no contracts that are not
terminable at will that Seller is a party to except as reflected in Exhibit A.

             (h) All fixtures and equipment included in the sale will be in
working order as of the Closing Date. This representation shall not survive the
Closing.

             (i) It retains exclusive obligation and liability for all sales and
employment taxes for the business up to the Closing Date.

             (j) It has filed all required Federal, State and local tax returns
and that there is no material liability for past taxes.

             (k) On the Closing Date there will not be any benefits due and
owing to any employees of Seller. All vacation pay accrued by employees through
the Closing Date will be paid by Seller or credited to Purchaser at closing.

             (l) It is duly qualified and licensed to carry on the business now
owned and conducted and has obtained all necessary licenses and permits, which
will be available to Purchaser upon the consummation of the transaction.

             (m) Except as set forth on Schedule 14(l), it is the owner of and
has good and marketable title to the Acquired Assets to be sold free of all
restrictions on transfer or assignment and of all liens or encumbrances unless
otherwise set forth in this Agreement.

                                       18
<PAGE>

             (n) It has not dealt with any broker with regard to this Agreement.
It agrees to indemnify Purchaser against and from any and all costs or expenses
(including reasonable attorney's fees) incurred as a result of any claims raised
by or damages awarded to any broker, by reason of acts arising out of or in
connection with this transaction.

             (o) There are no violations of any law or governmental rule or
regulation pending or threatened and Seller will be responsible for any such
violations threatened or filed before closing. This representation shall survive
the closing.

             (p) At the close of the business day before Closing, the premises
shall be in such sanitary condition as if Seller would be opening for business
the following morning.

             (q) It has delivered to Purchaser unaudited financial statements
for the year ended December 31, 2004 and the year ended December 31, 2005, which
fairly present the results of operation of its business and the financial
position of Seller at and for the periods therein presented.

         15. REPRESENTATIONS OF PURCHASER. Purchaser represents and warrants
that at the date hereof and at the Closing Date:

             (a) It has the funds or committed financial resources necessary to
consummate the transaction contemplated by this Agreement.

             (b) There is no material litigation, judgments, or insolvency
proceedings pending or, to the Purchaser's knowledge, threatened against
Purchaser which would impair Purchaser's right to purchase the subject assets,
or which would have a material adverse effect upon Purchaser or its business

             (c) They will duly comply with the provisions of New Jersey

                                       19
<PAGE>

law dealing with bulk transfers, if applicable, and will pay the Bulk Sales tax
due, if any, at the time of closing as well as any additional amounts billed by
the State of New York in connection with the purchase of assets as provided for
herein.

             (d) It has adequate opportunity to observe and monitor Seller's
business prior to execution of this Agreement, and Purchaser represents and
acknowledges that no representations of any kind have been made to Purchaser or
their representative other than as set forth in this Agreement.

             (e) Purchaser has examined the Acquired Assets agreed to be sold
and is familiar with the physical condition thereof. Seller has not made and
does not make any representations as to the physical condition thereof, except
as herein specifically set forth, and Purchaser expressly acknowledges that no
such representations have been made, other than that same shall be in working
order, and Purchaser further acknowledges that they have inspected the fixtures
and equipment, and agree to take the fixtures and equipment "AS IS".

             (f) Purchaser has not dealt with any broker with regard to this
Agreement and Purchaser agrees to indemnify Seller against and from any and all
costs or expenses (including reasonable attorney's fees) incurred as a result of
any claims raised by or damages awarded to any broker, by reason of acts arising
out of or in connection with this transaction.

             (g) Purchaser has operated its business in all material respects in
accordance with all laws, ordinances, and rules relating to the business, that
it has received no notice of any material violation of any of the foregoing,
that it has duly authorized the

                                       20
<PAGE>

transactions contemplated by this Agreement, and that this Agreement is
enforceable and binding upon it.

             (h) There are no material proceedings, judgments or liens now
pending, or, to Purchaser's knowledge, threatened against Purchaser or against
its business.

         16. MUTUAL CONDITIONS. The obligations of each party at Closing shall
be subject to:

             (a) The receipt of all third party consents required to transfer
assets, assign leases or otherwise consummate the transactions.

             (b) The performance by the other party of all obligations to be
performed at or prior to Closing.

         17. INDEMNIFICATIONS.

             (a) Seller and Seth Oberman individually, will indemnify and hold
Purchaser harmless with respect to any and all sales, payroll, income or any
other taxes that were incurred, or that may be due and owing to the Federal or
State taxing authorities, arising out of the operation of Seller.

             (b) Further, and except as otherwise set forth herein, Purchaser
shall not be liable for any obligations or liabilities of Seller of any kind and
nature, or any claims against Seller of any kind and nature. Seller and Seth
Oberman agree to indemnify and hold Purchaser and its parent harmless from and
of any payment of any obligation, liability, loss, damage, claim, assessment,
cost and expense of any kind, including reasonable attorneys fees ("Damages"),
incurred, suffered, sustained or required to be paid to any extent, resulting
from any breach of covenants, agreements, representations

                                       21
<PAGE>

and warranties made by Seller in or pursuant to this Agreement; or pertaining to
any obligation or liability of Seller of any kind and nature not assumed by
Purchaser in accordance with the terms of this Agreement. The aforesaid
indemnification shall be remain in full force and effect for a period commencing
on the Closing Date and ending on the third anniversary of the Closing Date and
shall be limited to the amount of Two Hundred Thousand ($200,000) Dollars, in
the aggregate.

             Likewise, and except as otherwise set forth herein, Seller shall
not be liable for any obligations or liabilities of Purchaser of any kind and
nature, or any claims against Purchaser of any kind and nature. Purchaser agrees
to indemnify and hold Seller and Seth Oberman harmless from and of any payment
of any "Damages" , incurred, suffered, sustained or required to be paid to any
extent, resulting from any breach of covenants, agreements, representations and
warranties made by Purchaser in or pursuant to this Agreement; or pertaining to
any obligation or liability of Purchaser of any kind and nature in accordance
with the terms of this Agreement, including the liabilities of Seller assumed
hereunder.

             (c) PROCEDURES FOR THIRD PARTY CLAIMS: In the case of any claim for
indemnification arising from a claim of a third party (a "Third Party Claim"),
an Indemnified Party shall give prompt written notice to the Indemnifying Party
of any claim or demand which such Indemnified Party has knowledge and as to
which it may request indemnification hereunder. The Indemnifying Party shall
have the right to defend and to direct the defense against any such Third Party
Claim, in its name or in the name of the Indemnified Party, as the case may be,
at the expense of the Indemnifying Party, and with counsel selected by the
Indemnifying Party unless (i) such Third Party Claim

                                       22
<PAGE>

seeks an order, injunction or other equitable relief against the Indemnified
Party, or (ii) the Indemnified Party shall have reasonably concluded that (x)
there is a conflict of interest between the Indemnified Party and the
Indemnifying Party in the conduct of the defense of such Third Party Claim or
(y) the Indemnified Party has one or more defenses not available to the
Indemnifying Party. Notwithstanding anything in this Agreement to the contrary,
the Indemnified Party shall, at the expense of the Indemnifying Party, cooperate
with the Indemnifying Party, and keep the Indemnifying Party fully informed, in
the defense of such Third Party Claim. The Indemnified Party shall have the
right to participate in the defense of any Third Party Claim with counsel
employed at its own expense; provided, however, that, in the case of any Third
Party Claim or demand described in clause (i) or (ii) of the second preceding
sentence or as to which the Indemnifying Party shall not in fact have employed
counsel to assume the defense of such Third Party Claim, the reasonable fees and
disbursements of such counsel shall be at the expense of the Indemnifying Party.
The Indemnifying Party shall have no indemnification obligations with respect to
any such Third Party Claim or demand which shall be settled by the Indemnified
Party without the prior written consent of the Indemnifying Party, which consent
shall not be unreasonably withheld or delayed. Any settlement of any such Third
Party Claim or demand made by the Indemnifying Party shall include a complete
release and discharge of each Indemnified Party or if not so included, shall
require the prior written consent of the Indemnified Party.

             (d) PROCEDURES FOR INTER-PARTY CLAIMS: In the event that an
Indemnified Party determines that it has a claim for Damages against an
Indemnifying Party hereunder (other than as a result of a Third Party Claim),
the Indemnified Party shall give prompt written notice thereof to the
Indemnifying Party, specifying the amount of such claim and any relevant facts
and circumstances relating thereto. The Indemnified Party

                                       23
<PAGE>

shall provide the Indemnifying Party with reasonable access to its books and
records for the purpose of allowing the Indemnifying Party a reasonable
opportunity to verify any such claim for Damages. The Indemnified Party and the
Indemnifying Party shall negotiate in good faith regarding the resolution of any
disputed claims for Damages. In the event that the Indemnified Party and the
Indemnifying Party did not resolve the dispute by negotiation and legal
proceedings are instituted seeking to recover Damages hereunder, the prevailing
party in such litigation shall be entitled to recover its cost and expenses in
connection with such proceedings (including costs of investigation and
reasonable attorneys' fees and disbursements).

             (e) EXCLUSIVE REMEDY: The rights and remedies of the Purchaser and
all other Indemnified Parties under this Section 17 shall constitute the sole
and exclusive remedy of the Purchaser and any such other Indemnified Parties
arising out of, resulting from or incurred in connection with the breach by
Seller or of any covenant or agreement to be performed by it under this
Agreement or any instrument of transfer or other agreement delivered pursuant
hereto and for any inaccuracy in or breach of any representation or warranty;
provided that the limitations set forth in this Section 17 shall not apply with
respect to Damages resulting from the fraud of Seller with respect to any
Purchaser in connection with this Agreement or the transactions contemplated
hereunder.

         18. PURCHASER'S OBLIGATIONS CONTINGENT. Purchaser's obligations under
this agreement shall be subject to:

                                       24
<PAGE>

             (a) review of Seller's business and prospects confirming that there
has been no material adverse changes to Seller's business or business prospects;

             (b) the execution by Seth Oberman of the Employment Agreement;

             (c) the payment by Seller of all compensation, fees, commissions,
bonuses and other amounts due to its employees for periods prior to the Closing
including the cost of any applicable employee benefit plans; for those
compensation items that are earned but not yet payable at Closing an appropriate
liability will be recorded on the balance sheet reflecting those amounts.

             (d) Seller changing its corporate name to one which does not
include the words "Skye Multimedia", whether together or utilized separately;

             (e) compliance with bulk sales laws or other assurance that
Purchaser has no liability for Seller's obligations other than those
specifically assumed hereunder, and;

             (f) at closing, the delivery by Seller of copies of current
financial books and records.

         19. SELLER'S OBLIGATIONS CONTINGENT. Seller's obligations under this
Agreement shall be subject to the execution by Purchaser of the Employment
Agreement.

         20. TAXES.

             (a) Seller shall be fully responsible for any Federal or State
taxes relating to any gain to be realized on the sale of its assets as provided
for herein. Purchaser shall be fully responsible for any New Jersey bulk sales
tax, which shall be paid at closing. Seller shall provide Purchaser with the
requisite information to report the Bulk Sale Transfer to the State of New
Jersey. Reeve & Van Horne, Esqs., attorneys for Purchaser, shall hold a sum to
be determined by the State of New Jersey, Division of

                                       25
<PAGE>

Taxation in escrow pending Purchaser receiving clearance from the New Jersey
Division of Taxation.

             (b) The Purchase Price shall be allocated as set forth on Schedule
20 hereto. Purchaser and Seller agree that such allocation will be binding on
all parties for federal income tax purposes in connection with this purchase and
sale of the Acquired Assets, and will be consistently reflected by each party on
its respective tax returns. Purchaser and Seller agree to prepare and timely
file all applicable Internal Revenue Service forms, including Form 8594 (Asset
Acquisition Statement), and other governmental forms, to cooperate with each
other in the preparation of such forms and to furnish each other with a copy of
such forms prepared in draft, within a reasonable period prior to the filing due
date thereof.

         21. ASSUMPTION OF LIABILITIES. Purchaser agrees to assume the Assumed
Liabilities and liabilities incurred by Purchaser that arise in the ordinary
course of its operation of the Business Unit after the Closing. Purchaser shall
not be liable for any of the obligations or liabilities of Seller of any kind
and nature other than those specifically assumed under this Agreement.

         22. CONFIDENTIALITY. Each party agrees that it shall not make any
announcement of the proposed transaction to any third party except as required
by law or upon the written consent of the other party.

         23. NOTICES. All notices to be given hereunder shall be given in
writing and shall be delivered by confirmed fax, personally, by Federal Express
or other overnight courier that obtains a receipt for delivery, or by registered
or certified mail, postage

                                       26
<PAGE>

prepaid, as follows, or to such other address as any party hereto shall notify
the other parties hereto (as provided below) from time to time:

                  (a)      If to Purchaser, addressed to:

                           Allen S. Greene
                           Skye Acquisition Company Inc. Ltd.
                           12 Skyline Drive
                           Hawthorne, NY 10532

                           With a copy to:

                           John L. Van Horne III, Esq.
                           Reeve & Van Horne
                           65 North Dean Street
                           P.O. Box 271
                           Englewood, NJ 07631
                           (201) 568-3160 Telephone
                           (201) 568-1348 Fax

                  (b)      If to Seller, addressed to:

                           Seth Oberman
                           Skye Multimedia, Inc.
                           1031 Route 22 West, Suite 301
                           Bridgewater, New Jersey 08807

                           With a copy to:

                           Steven J. Tsimbinos, Esq.
                           Lowenstein Sandler PC
                           65 Livingston Avenue
                           Roseland, NJ 07068-1791
                           (973) 597-2536 Telephone
                           (973) 597-2537 Fax

                                       27
<PAGE>

Whenever such notice is personally delivered or sent by such courier it shall
become effective on the date of delivery, and whenever such notice is sent by
registered or certified mail it shall be effective three (3) days after the date
it is mailed.

Notices can be sent from attorney to attorney via fax, subject to facsimile
transmittal verification.

     24. SKYE EMPLOYEES. All employees of Seller that are retained by Purchaser
will be given credit for the time they have worked at Seller towards eligibility
to participate in the 401k plan and any other benefits provided to employees of
Purchaser. All such employees of Seller that are retained by Purchaser will be
required to sign a non-competition/non-solicitation agreement required of all
Purchaser's employees.

     25. ADDITIONAL MISCELLANEOUS PROVISIONS. The parties further agree as
follows:

         (a) This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective legal representatives, successors (by
operation of law or otherwise) and assigns, if, and as permitted herein.

         (b) All understandings and agreements heretofore had between the
parties hereto are merged into this Agreement, which alone fully and completely
expresses their agreement, and the same is entered into after full
investigation, neither party relying upon any statement or representation not
embodied in this Agreement made by the other. Seller shall not be liable or
bound for any verbal or written statements or representations of any agent,
employee, servant or any other person, unless the same are specifically set
forth herein.

                                       28
<PAGE>

         (c) The headings herein are for convenience and reference only and in
no way define, limit or describe the scope or intent of this Agreement or affect
any of the terms or provisions hereof.

         (d) No delay or failure on the part of any party in exercising any
right hereunder shall be construed as a waiver of any subsequent default of the
same or similar nature.

         (e) This Agreement shall be governed by and construed in accordance
with the laws of the State of New Jersey, without giving effect to principals of
conflicts of law.

         (f) The parties shall execute any and all further documents necessary
and/or appropriate to effectuate the intent and purpose of the provisions of
this Agreement. Each party shall use its reasonable commercial efforts to obtain
all material third-party consents. The parties agree that at any time and from
time to time at or after the Closing upon request of any party hereto, any other
party hereto shall do, execute, acknowledge and deliver, or cause to be done,
executed, acknowledged and delivered, such other or further instruments as may
be required by law or reasonably requested by such party to carry out and
implement the intent and purpose of this Agreement. The same shall be done
promptly and without charge to the requesting party.

         (g) No waiver, change, modification, amendment, or discharge of any of
the provisions of this Agreement shall be valid unless affected by an agreement
in writing signed by both parties hereto.

         (h) Submission by either party of this Agreement for execution by the
other shall confer no rights nor impose any obligations on either party unless

                                       29
<PAGE>

and until both Seller and Purchaser shall have executed this Agreement and
duplicate originals thereof have been delivered to Seller and Purchaser.

         (i) Seller shall provide a copy of all contracts of Seller currently in
effect

         (j) Faxed copies of signatures shall serve as originals, with the
originals to be provided later.

         (k) Any material financial changes or material changes in operation
occurring between the signing of this Agreement and the Closing must be reported
in writing by Seller to Purchaser.

         (l) The risk of loss to the assets of the business sold hereunder until
the Closing shall be borne by Seller. If a fire or other casualty shall cause
loss or damage in excess of $50,000.00, Purchaser may terminate this Agreement,
receive the return of the deposit, if any, and this Agreement shall be null and
void. In such event, neither party shall have any rights against or obligations
to the other.

         (m) Seller's President/operator will sign or allow a reproduction of
his signature on a letter of introduction to customers, upon review and approval
of the letter. Seller's approval shall not be unreasonably withheld.

                                       30
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of this 14th day of February, 2006.

                                    SKYE MULTIMEDIA, INC. Seller

                                    By: /s/ SETH OBERMAN
--------------------------------       --------------------------------
                                       SETH OBERMAN, President

                                    Skye Acquisition Company Inc, Purchaser

                                    By: /s/ ALLEN S. GREENE
--------------------------------       --------------------------------
                                       ALLEN S. GREENE, CEO

                                       31

<PAGE>
                                                                       EXHIBIT C

                          EMPLOYMENT AGREEMENT BETWEEN
                                 SMARTPROS LTD.
                                       AND
                                  SETH OBERMAN

This employment  agreement (the "Agreement") dated as of March 1, 2006 is by and
between  SmartPros  Ltd.,  a  Delaware  corporation  (the  "Company"),  and Seth
Oberman,  an individual  residing at XXXXXXXXXXXXXX , Flemington,  NJ XXXXX (the
"Executive").

1.    EMPLOYMENT.  The Company  shall employ the  Executive,  and the  Executive
      agrees to serve the Company, on the terms and conditions set forth herein.
      The  Executive  shall serve as President  of the Skye Multi Media  product
      group  or  subsidiary.   The  Executive  hereby  accepts  such  employment
      hereunder,  except  for  absences  occasioned  by illness  and  reasonable
      vacation periods,  and agrees to undertake the duties and responsibilities
      inherent in such  position and such other duties and  responsibilities  as
      the  Company  shall  from  time  to time  reasonably  assign  to him.  The
      Executive  shall report to and be  supervised by the Board of Directors of
      the Company (the "Board") and the Chief  Executive  Officer of the Company
      or such other person as the Board or Chief Executive  Officer  indicates..
      The Executive shall use his best efforts,  including the highest standards
      of  professional  competence  and  integrity,  and shall  devote  his full
      business time and effort to the performance of his duties  hereunder.  The
      Executive shall not engage in any other business  activity that interferes
      with his day to day responsibilities to the Company.

2.    COMPENSATION AND BENEFITS.

      2.1   SALARY.  During the Term (as defined below) of this  Agreement,  the
            Executive  shall be paid a salary at the rate of $120,000  per annum
            ("the Base  Salary"),  payable as  customarily  paid by the Company.
            During the Term of this Agreement,  executive's base salary shall be
            reviewed at least annually by the Board.  The first such review will
            be made no later  than  January  31,  2007 and  thereafter  the Base
            Salary  shall  be  reviewed  on  or  before  January  31st  of  each
            succeeding  year. The Board, in its sole  discretion,  may increase,
            but not decrease the Base Salary.

      2.2   BONUS. In addition to his Base Salary, the Executive may be entitled
            to bonuses at times and in amounts  determined in the  discretion of
            the Board.

<PAGE>

      2.3   BENEFITS.  The  Executive  shall be entitled to  participate  in all
            employee  benefit  programs or plans  maintained by the Company from
            time to time on the same basis as other similarly situated executive
            employees of the Company.  The Executive  will be entitled to family
            medical at the Company's sole cost and expense. The Company will pay
            the Executive a $950 per month car allowance.. The Executive will be
            entitled to 3 weeks paid vacation per year.

      2.4   REIMBURSEMENT OF EXPENSES. The Company shall reimburse the Executive
            in  accordance  with  its  general  reimbursement  policies  for all
            ordinary and necessary  expenses incurred by the Executive on behalf
            of the  Company  upon the  presentation  of  appropriate  supporting
            documentation.

3.    TERM; TERMINATION; RIGHTS UPON TERMINATION.

      3.1   TERM. The Company agrees to employ the Executive,  and the Executive
            agrees to serve the Company for a period commencing on March 1, 2006
            and  continuing  until  January  31,  2009 (the "End  Date")  unless
            otherwise  amended or  terminated  pursuant to the terms hereof (the
            "Term").

      3.2   TERMINATION.  The Company may at any time,  terminate the employment
            of the Executive  under this Agreement for Cause (as defined below),
            or without  Cause,  and the Executive may resign if the  Executive's
            principal  place of employment is moved more than 50 miles away from
            the current  location or is moved to New York City,  immediately and
            without any requirement of notice. The rights and obligations of the
            parties upon any termination of the Executive's  employment shall be
            as set forth in Section 3.3. For purposes of this Agreement the term
            "Cause"  shall mean (i) any act of  dishonesty  or gross and willful
            misconduct   with   respect  to  the  Company,   including   without
            limitation,  fraud  or  theft,  on the part of the  Executive,  (ii)
            conviction of the Executive of a felony.

      3.3   RIGHTS UPON TERMINATION.   In the event that:

            (a)   The  employment  of the Executive is terminated by the Company
                  without  Cause  1, or if the  Executive  resigns  because  the
                  Executive's  principal  place of employment is moved more than
                  50 miles  away from the  current  location  or is moved to New
                  York City then,  for the remainder of the then current Term of
                  employment  hereunder,  (i)  the  Company  shall  pay  to  the
                  Executive, at the time otherwise due under Section 2, all Base
                  Salary at the rate in effect at the time of  termination  plus
                  all  Base   Salary   earned  but  yet  paid  up  the  date  of
                  termination.  The obligations of the Company  pursuant to this
                  Section  3.3(a)  shall be in lieu of any  other  rights of the
                  Executive  hereunder to compensation or benefits in respect of
                  any period before or after the date of such termination. In no
                  event

                                       2

<PAGE>

                  shall the  Executive be obligated to seek other  employment or
                  take any other  action  by way of  mitigation  of the  amounts
                  payable to the Executive  under any of the  provisions of this
                  Agreement and such amounts shall not be reduced whether or not
                  the Executive obtains other employment.

            (b)   The  Executive's  employment  terminates by reason of death or
                  disability,  then the  Company  shall pay and  provide  to the
                  Executive or Executive's estate or other successor in interest
                  at the time  otherwise due under Section 2 all Base Salary and
                  benefits due to the Executive  under Section 2 through the end
                  of month in which the termination  occurs,  but reduced in the
                  case  of  disability  by  any  payments   received  under  any
                  disability  plan,  program or policy paid for by the  Company.
                  The obligations of the Company pursuant to this Section 3.3(b)
                  shall  be in  lieu  of  any  other  rights  of  the  Executive
                  hereunder to compensation or benefits in respect of any period
                  before  or after the date of such  termination  and in lieu of
                  any severance  payment,  and no other compensation of any kind
                  or any  other  amounts  shall be due to the  Executive  by the
                  Company under this Agreement.  For purposes of this Agreement,
                  the term  "disability"  shall mean the Executive's  failure to
                  perform  the  services  contemplated  by this  Agreement  as a
                  result of his physical or mental  illness or incapacity  for a
                  period  of 2  months,  or a  total  of 90  days in any 365 day
                  period.

            (c)   The  employment  of the Executive is terminated by the Company
                  for Cause, or by the Executive other than under  circumstances
                  described in Section 3.3(a) or (b) above,  the Executive shall
                  not be entitled to compensation or benefits granted  hereunder
                  beyond  the  date  of  the   termination  of  the  Executive's
                  employment.

            (d)   At the end of the  original  Term the  Company  shall have the
                  right,  but not the  obligation,  to  extend  the  Term of the
                  Agreement for an additional  (1) year period of time under the
                  same terms and  conditions  currently in effect at the time of
                  notice  to the  Executive.  If the  Company  desires  to avail
                  itself of this option it will notify the Executive at least 90
                  days prior to the original End Date.

4.    PROPRIETARY INFORMATION.

      4.1   The Executive  agrees that all information and know how,  whether or
            not  in  writing,  of  a  private,  secret  or  confidential  nature
            concerning the business or financial  affairs of the Company and its
            subsidiaries  (collectively,  for  purposes

                                       3

<PAGE>

            of  this  Section  4,  the  "Company")  and not  within  Executive's
            possession  or knowledge  prior to his  employment  with the Company
            (collectively,  "Proprietary  Information"),  is  and  shall  be the
            exclusive property of the Company.  By way of illustration,  but not
            limitation,   Proprietary   Information   may  include   inventions,
            products,  processes, methods, techniques,  projects,  developments,
            plans,  research  data,  financial  data,  and personnel  data.  The
            Executive  will not disclose any  Proprietary  Information to others
            outside of the Company or use the same for any unauthorized purposes
            without the written  consent of the Company,  either during or after
            his employment,  unless and until such  Proprietary  Information has
            become public knowledge without fault of the Executive.

      4.2   The Executive agrees that all files,  letters,  memoranda,  reports,
            records, data, sketches,  drawings, or other written,  photographic,
            or  other  tangible  material  containing  Proprietary  Information,
            whether  created by the  Executive or others,  which shall come into
            his custody or possession,  shall be and are the exclusive  property
            of the Company to be used by the Executive  only in the  performance
            of his duties for the Company.

      4.3   The  Executive  agrees  that his  obligation  not to disclose or use
            Proprietary  Information  and  records of the type set forth  herein
            also extends to such types of Proprietary  Information,  records and
            tangible  property of other third parties who may have  disclosed or
            entrusted  the same to the Company or to the Executive in the course
            of the Company's business.

5.    OTHER AGREEMENTS.  The Executive hereby represents that his performance of
      all the terms of this Agreement and as an employee of the Company does not
      and  will not  breach  any  agreement  to keep in  confidence  proprietary
      information,  knowledge or data  acquired by him in confidence or in trust
      prior to his employment with the Company.

6.    NON-COMPETITION, NON-SOLICITATION.

      6.1   NON-SOLICITATION  OF EMPLOYEES AND CUSTOMERS.  The Executive  agrees
            that during the Term of the Executive's  employment with the Company
            and for a period of two years  thereafter,  the Executive  shall not
            directly or indirectly (i) recruit,  solicit or otherwise  induce or
            attempt  to  induce  any  employees  of  the  Company  or any of its
            subsidiaries to leave their  employment or (ii) call upon,  solicit,
            divert or take away, or attempt to divert or take away, the business
            or patronage  of any  customer  licensee,  vendor,  collaborator  or
            corporate partner of the Company or any of its subsidiaries that had
            a business  relationship with the Company or any of its subsidiaries
            at the  time of  termination  of  Executive's  employment  with  the
            Company and that did not have a business  or  personal  relationship
            with or was not known to Executive  prior to his employment with the
            Company.

                                       4

<PAGE>

      6.2   NON-COMPETITION.  The  Executive  agrees that during the Term of the
            Executive's  employment with the Company and for 2 year  thereafter,
            the  Executive   shall  not  directly  or   indirectly,   engage  in
            competition with the Company or any subsidiaries,  or own or control
            any  interest  in, or act as  director,  officer or employee  of, or
            consultant to, any firm, corporation or institution directly engaged
            in competition with the Company or any of its subsidiaries; provided
            that the Company or one of its  subsidiaries is actively  engaged in
            such business at the time the Executive's  employment by the Company
            is terminated; and provided that the foregoing shall not prevent the
            Executive  from holding  shares as a passive  investor in a publicly
            held company which do not constitute more than 5% of the outstanding
            shares of such company.  The  Executive  will be considered to be in
            Competition  with  the  Company  or  any  parent,   subsidiaries  or
            affiliated  companies  only  if (a) he  works  for  an  entity  that
            provides  educational  learning  thru any type of media  for sale to
            other clients but not for its own internal use or (b) he works for a
            customer of the Company and provides  educational  learning services
            for their  internal  use causing the customer to reduce the business
            they do with  Company,  provided  that  the  customer  did at  least
            $50,000  worth of such  business  with the  Company in either of the
            last 2 years.  In the  event  that  the  Executive  (i)  voluntarily
            terminates  his  employment,  (including at any time on or after the
            End Date) other than as provided for in this  agreement,  or (ii) is
            terminated by the Company for Cause,  the Executive agrees to not be
            in  Competition  with the  Company or any  parent,  subsidiaries  or
            affiliated  companies until the earlier of Feb 28, 2008 or two years
            from the date of such termination.

7.    MISCELLANEOUS.

      7.1 NOTICES.  All notices required or permitted under this Agreement shall
      be in writing and shall be deemed effective upon personal delivery or upon
      deposit in the United States Post Office, by registered or certified mail,
      postage prepaid, addressed if to the Executive, at the address shown above
      and if to the Company,  at its  principal  place of business at 12 Skyline
      Drive,  Hawthorne,  New York,  or at such other  address or  addresses  as
      either party shall  designate to the other in accordance with this Section
      8.1.

      7.2 PRONOUNS.  Wherever the context may require, any pronouns used in this
      Agreement shall include the  corresponding  masculine,  feminine or neuter
      forms,  and the  singular  forms of nouns and pronouns  shall  include the
      plural, and vice versa.

                                       5

<PAGE>

      7.3 ENTIRE  AGREEMENTS.  This Agreement  constitutes the entire  agreement
      between   the   parties   and   supercedes   all  prior   agreements   and
      understandings, whether written or oral, relating to the subject matter of
      this Agreement.

      7.4 AMENDMENT. This Agreement may be amended or modified only by a written
      instrument executed by both the Company and the Executive.

      7.5 GOVERNING  LAW. This  Agreement  shall be construed,  interpreted  and
      enforced in accordance with the laws of the State of New York.

      7.6 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure
      to the  benefit  of both  parties  and  their  respective  successors  and
      assigns,  including any  corporation  with which or into which the Company
      may be merged or which may  succeed to its assets or  business,  provided,
      however,  that the obligations of the Executive are personal and shall not
      be assigned by him.

      7.7 WAIVERS.  No delay or omission by the Company in exercising  any right
      under this Agreement shall operate as a waiver of that or any other right.
      A waiver or  consent  given by the  Company on any one  occasion  shall be
      effective  only in this  instance  and shall not be  construed as a bar or
      waiver of any right on any other occasion.

      7.8  CAPTIONS.  The  captions of the  sections of this  Agreement  are for
      convenience  of reference  only and in no way define,  limit or affect the
      scope or substance of any section of this Agreement.

      7.9  SEVERABILITY.  In case  any  provision  of this  Agreement  shall  be
      invalid,  illegal or otherwise unenforceable,  the validity,  legality and
      enforceability of the remaining  provisions shall in no way be affected or
      impaired thereby.

      7.10  SPECIFIC ENFORCEMENT.  The parties  acknowledge that the Executive's
      breach of the  provisions of Section 4 and 6 of this  Agreement will cause
      irreparable harm to the Company.  It is agreed and  acknowledged  that the
      remedy  of  damages  will  not be  adequate  for the  enforcement  of such
      provisions and that such  provisions may be enforced by equitable  relief,
      including  injunctive  relief,  which  relief shall be  cumulative  and in
      addition to any other relief to which the Company may be entitled.

8.  ARBITRATION.  Any claims,  controversies,  demands,  disputes or differences
between or among the parties  hereto or any persons bound hereby arising out of,
or by virtue of, or in connection with, or otherwise  relating to this Agreement
shall be submitted to and settled by arbitration conducted in New York, New York
before  one or  three  arbitrators  each of  which  shall  be  knowledgeable  in
employment law. Such arbitration shall otherwise be conducted in accordance with
the rules then obtaining of the American  Arbitration  Association.  The parties
hereto  agree  to  share  equally  the

                                       6

<PAGE>

responsibility  for all fees of the arbitrators,  abide by any decision rendered
as final and  binding,  and waive the right to appeal the  decision or otherwise
submit the dispute to a court of law for a jury or non-jury  trial.  The parties
hereto  specifically agree that neither party may appeal or subject the award or
decision of any such arbitrator(s) to appeal or review in any court of law or in
equity or by any other tribunal,  arbitration system or otherwise. Judgment upon
any award granted by such an  arbitrator(s)  may be enforced in any court having
jurisdiction  thereof. If the arbitration  decision holds that the Company is at
fault,  the Executive  shall be entitled to  reimbursement  of fees and expenses
from the Company in an amount not to exceed $50,000. If the arbitration decision
holds  that the  Company  is not at fault,  the  Company  shall be  entitled  to
reimbursement of fees and expenses from the Executive in an amount not to exceed
$25,000.

IN WITNESS  WHEREOF,  the parties  hereto have executed this Agreement as of the
day and year set forth above

                                            SmartPros Ltd.

                                            By:      __________________________

                                            Title:   __________________________

                                                     ___________________________
                                                     Seth ObermanNOTE AND WARRANT PURCHASE

                                    AGREEMENT

                          Dated as of February 13, 2006

                                  by and among

                             FINANCIALCONTENT, INC.

                                       and

                       THE PURCHASERS LISTED ON EXHIBIT A

<PAGE>
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

                                                                                                                Page
                                                                                                                ----

<S>                                                                                                              <C>
ARTICLE I           Purchase and Sale of Notes and Warrants.......................................................1
         Section 1.1          Purchase and Sale of Notes and Warrants.............................................1
         Section 1.2          Purchase Price and Closing..........................................................1
         Section 1.3          Conversion Shares / Warrant Shares..................................................2

ARTICLE II          Representations and Warranties................................................................2
         Section 2.1          Representations and Warranties of the Company.......................................2
         Section 2.2          Representations and Warranties of the Purchasers...................................13

ARTICLE III         Covenants....................................................................................15
         Section 3.1          Securities Compliance..............................................................15
         Section 3.2          Registration and Listing...........................................................15
         Section 3.3          Inspection Rights..................................................................16
         Section 3.4          Compliance with Laws...............................................................16
         Section 3.5          Keeping of Records and Books of Account............................................16
         Section 3.6          Reporting Requirements.............................................................16
         Section 3.7          Other Agreements...................................................................17
         Section 3.8          Use of Proceeds....................................................................17
         Section 3.9          Reporting Status...................................................................17
         Section 3.10         Disclosure of Transaction..........................................................17
         Section 3.11         Disclosure of Material Information.................................................18
         Section 3.12         Pledge of Securities...............................................................18
         Section 3.13         Amendments.........................................................................18
         Section 3.14         Distributions......................................................................18
         Section 3.15         Reservation of Shares..............................................................18
         Section 3.16         Transfer Agent Instructions........................................................18
         Section 3.17         Disposition of Assets..............................................................19
         Section 3.18         Form SB-2 Eligibility..............................................................19
         Section 3.19         Subsequent Financings..............................................................19

ARTICLE IV          Conditions...................................................................................20
         Section 4.1          Conditions Precedent to the Obligation of the Company to Close and to Sell the
                              Securities.........................................................................20
         Section 4.2          Conditions Precedent to the Obligation of the Purchasers to Close and to Purchase the
                              Securities.........................................................................21

ARTICLE V           Certificate Legend...........................................................................23
         Section 5.1          Legend.............................................................................24

ARTICLE VI          Indemnification..............................................................................24
         Section 6.1          General Indemnity..................................................................24
         Section 6.2          Indemnification Procedure..........................................................25

ARTICLE VII         Miscellaneous................................................................................26
         Section 7.1          Fees and Expenses..................................................................26
         Section 7.2          Specific Performance; Consent to Jurisdiction; Venue...............................26
         Section 7.3          Entire Agreement; Amendment........................................................26
         Section 7.4          Notices............................................................................27
         Section 7.5          Waivers............................................................................28
         Section 7.6          Headings...........................................................................28
         Section 7.7          Successors and Assigns.............................................................28
         Section 7.8          No Third Party Beneficiaries.......................................................28
         Section 7.9          Governing Law......................................................................28
         Section 7.10         Survival...........................................................................28
         Section 7.11         Counterparts.......................................................................28
         Section 7.12         Publicity..........................................................................28
         Section 7.13         Severability.......................................................................29
         Section 7.14         Further Assurances.................................................................29
</TABLE>
<PAGE>
                       NOTE AND WARRANT PURCHASE AGREEMENT

         This NOTE AND WARRANT PURCHASE  AGREEMENT dated as of February 13, 2006
(this "Agreement") by and among  FinancialContent,  Inc., a Delaware corporation
(the  "Company"),  and each of the purchasers of the senior secured  convertible
promissory  notes of the Company whose names are set forth on Exhibit A attached
hereto (each a "Purchaser" and collectively, the "Purchasers").

         The parties hereto agree as follows:

                                   ARTICLE I

                     PURCHASE AND SALE OF NOTES AND WARRANTS

Section 1.1       Purchase and Sale of Notes and Warrants.
                  ---------------------------------------

(a) Upon the following terms and conditions, the Company shall issue and sell to
the  Purchasers,  and the  Purchasers  shall  purchase from the Company,  senior
secured  convertible  promissory notes in the aggregate  principal amount of One
Million Dollars  ($1,000,000)  bearing interest at the rate of nine percent (9%)
per annum,  convertible  into shares of the Company's  common stock,  $0.001 par
value per share (the "Common Stock"),  in substantially the form attached hereto
as Exhibit B (the  "Notes").  The Company and the  Purchasers  are executing and
delivering  this Agreement in accordance with and in reliance upon the exemption
from securities registration afforded by Section 4(2) of the U.S. Securities Act
of 1933, as amended, and the rules and regulations  promulgated  thereunder (the
"Securities  Act"),  including  Regulation D ("Regulation  D"), and/or upon such
other exemption from the registration  requirements of the Securities Act as may
be available with respect to any or all of the investments to be made hereunder.

(b) Upon the following terms and conditions,  the Purchasers shall be issued (i)
Series A Warrants,  in substantially  the form attached hereto as Exhibit C (the
"Series A Warrants"), to purchase the number of shares of Common Stock set forth
opposite such Purchaser's name on Exhibit A attached hereto at an exercise price
per share equal to $1.00 and (ii) Series B Warrants,  in substantially  the form
attached  hereto as Exhibit D (the "Series B Warrants"  and,  together  with the
Series A Warrants,  the "Warrants"),  to purchase the number of shares of Common
Stock set forth opposite such  Purchaser's  name on Exhibit A attached hereto at
an exercise price per share equal to $1.25.  Each Purchaser shall be entitled to
receive  Series A Warrants  and Series B Warrants to purchase a number of shares
of Common Stock equal to  twenty-five  percent  (25%) of the number of shares of
Common Stock  issuable upon  conversion of such  Purchaser's  Note. The Warrants
shall expire five (5) years following the issuance thereof.

Section   1.2       Purchase  Price  and  Closing.  Subject  to  the  terms  and
conditions  hereof,  the Company agrees to issue and sell to the Purchasers and,
in  consideration   of  and  in  express  reliance  upon  the   representations,
warranties,  covenants,  terms and conditions of this Agreement, the Purchasers,

                                      -1-
<PAGE>

severally  but not  jointly,  agree to purchase  the Notes and  Warrants  for an
aggregate  purchase  price of One Million  Dollars  ($1,000,000)  (the "Purchase
Price").  The  Notes and  Warrants  shall be sold and  funded in three  separate
closings  (each,  a "Closing").  The initial  Closing under this  Agreement (the
"Initial  Closing") shall take place on or about February 13, 2006 (the "Initial
Closing Date") and shall be funded in the amount of Three Hundred Fifty Thousand
Dollars  ($350,000).  The second  Closing  under  this  Agreement  (the  "Second
Closing")  shall take place no later than five (5) business  days after the date
that the Company files the registration statement (the "Registration Statement")
with the Securities and Exchange Commission (the "Commission") providing for the
resale of the  Conversion  Shares (as defined  below) and the Warrant Shares (as
defined below) (the "Second  Closing Date") and shall be funded in the amount of
Three Hundred Fifty Thousand  Dollars  ($350,000).  The final Closing under this
Agreement (the "Final Closing") shall take place no later than five (5) business
days after the Commission  declares the  Registration  Statement  effective (the
"Final  Closing  Date")  and  shall be funded  in the  amount  of Three  Hundred
Thousand Dollars  ($300,000).  The Initial Closing Date, the Second Closing Date
and the Final  Closing Date are sometimes  referred to in this  Agreement as the
"Closing Date".  Each Closing of the purchase and sale of the Notes and Warrants
to be acquired by the  Purchasers  from the Company under this  Agreement  shall
take place at the offices of Kramer Levin Naftalis & Frankel LLP, 1177 Avenue of
the Americas,  New York, New York 10036 at 10:00 a.m., New York time;  provided,
that all of the conditions set forth in Article IV hereof and applicable to each
Closing shall have been fulfilled or waived in accordance  herewith.  Subject to
the terms and conditions of this Agreement,  at each Closing,  the Company shall
deliver  or  cause  to be  delivered  to each  Purchaser  (x) its  Note  for the
principal  amount set forth  opposite  the name of such  Purchaser  on Exhibit A
hereto,  (y) a Series A Warrant and Series B Warrant to purchase  such number of
shares of Common Stock as is set forth  opposite  the name of such  Purchaser on
Exhibit A attached  hereto and (z) any other  deliveries  as required by Article
IV. At each Closing,  each  Purchaser  shall deliver its Purchase  Price by wire
transfer to an account designated by the Company.

Section 1.3       Conversion Shares / Warrant Shares. The Company has authorized
and has reserved and covenants to continue to reserve, free of preemptive rights
and other similar contractual rights of stockholders, a number of its authorized
but unissued shares of Common Stock equal to one hundred fifty percent (150%) of
the aggregate  number of shares of Common Stock to effect the  conversion of the
Notes and any  interest  accrued and  outstanding  thereon  and  exercise of the
Warrants  as of the  Closing  Date.  Any shares of Common  Stock  issuable  upon
conversion of the Notes and any interest  accrued and  outstanding  on the Notes
are herein  referred to as the "Conversion  Shares".  Any shares of Common Stock
issuable  upon exercise of the Warrants (and such shares when issued) are herein
referred to as the "Warrant  Shares".  The Notes,  the Warrants,  the Conversion
Shares and the Warrant Shares are sometimes  collectively  referred to herein as
the "Securities".

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

Section  2.1       Representations  and  Warranties of the Company.  The Company
hereby represents and warrants to the Purchasers, as of the date hereof and each
Closing Date (except as set forth on the Schedule of Exceptions  attached hereto
with each numbered  Schedule  corresponding  to the section number  herein),  as
follows:
                                      -2-
<PAGE>

(a)  Organization,  Good Standing and Power.  The Company is a corporation  duly
incorporated,  validly existing and in good standing under the laws of the State
of Delaware and has the requisite  corporate power to own, lease and operate its
properties and assets and to conduct its business as it is now being  conducted.
The Company does not have any Subsidiaries (as defined in Section 2.1(g)) or own
securities  of any kind in any other  entity  except  as set  forth on  Schedule
2.1(g) hereto.  Except as set forth on Schedule  2.1(g) hereto,  the Company and
each such  Subsidiary  (as  defined in Section  2.1(g)) is duly  qualified  as a
foreign corporation to do business and is in good standing in every jurisdiction
in which the nature of the business conducted or property owned by it makes such
qualification  necessary  except  for  any  jurisdiction(s)  (alone  or  in  the
aggregate)  in which the  failure  to be so  qualified  will not have a Material
Adverse Effect.  For the purposes of this Agreement,  "Material  Adverse Effect"
means any  material  adverse  effect on the  business,  operations,  properties,
prospects, or financial condition of the Company and its Subsidiaries and/or any
condition,   circumstance,   or  situation  that  would  prohibit  or  otherwise
materially  interfere  with the  ability of the  Company  to perform  any of its
obligations under this Agreement in any material respect.

(b) Authorization;  Enforcement.  The Company has the requisite  corporate power
and authority to enter into and perform this Agreement, the Notes, the Warrants,
the  Registration  Rights Agreement by and among the Company and the Purchasers,
dated as of the date  hereof,  substantially  in the form of  Exhibit E attached
hereto (the  "Registration  Rights  Agreement"),  the Security  Agreement by and
among the Company and the Purchasers, dated as of the date hereof, substantially
in the form of Exhibit F attached  hereto (the  "Security  Agreement"),  and the
Irrevocable  Transfer  Agent  Instructions  (as defined in Section  3.16 hereof)
(collectively, the "Transaction Documents") and to issue and sell the Securities
in accordance with the terms hereof. The execution,  delivery and performance of
the  Transaction  Documents  by the  Company and the  consummation  by it of the
transactions  contemplated  thereby have been duly and validly authorized by all
necessary  corporate  action,  and, except as set forth on Schedule  2.1(b),  no
further  consent or  authorization  of the  Company,  its Board of  Directors or
stockholders  is required.  When executed and delivered by the Company,  each of
the Transaction Documents shall constitute a valid and binding obligation of the
Company  enforceable against the Company in accordance with its terms, except as
such  enforceability  may be limited by applicable  bankruptcy,  reorganization,
moratorium, liquidation, conservatorship,  receivership or similar laws relating
to, or affecting generally the enforcement of, creditor's rights and remedies or
by other equitable principles of general application.

(c) Capitalization.  The authorized capital stock and the issued and outstanding
shares of capital  stock of the  Company  as of the date  hereof is set forth on
Schedule 2.1(c) hereto.  All of the  outstanding  shares of the Common Stock and
any other  outstanding  security  of the  Company  have  been  duly and  validly
authorized.  Except as set forth in this Agreement, the Commission Documents (as
defined in Section 2.1(f)) or as set forth on Schedule 2.1(c) hereto,  no shares
of Common Stock or any other  security of the Company are entitled to preemptive
rights or registration  rights and there are no outstanding  options,  warrants,

                                      -3-
<PAGE>

scrip,  rights to subscribe to, call or commitments of any character  whatsoever
relating to, or securities  or rights  convertible  into,  any shares of capital
stock of the Company. Furthermore,  except as set forth in this Agreement and as
set  forth on  Schedule  2.1(c)  hereto,  there are no  contracts,  commitments,
understandings,  or  arrangements by which the Company is or may become bound to
issue  additional  shares  of the  capital  stock  of the  Company  or  options,
securities  or rights  convertible  into shares of capital stock of the Company.
Except for customary transfer restrictions  contained in agreements entered into
by the Company in order to sell restricted securities or as provided on Schedule
2.1(c)  hereto,  the  Company  is not a party to or bound  by any  agreement  or
understanding  granting  registration or anti-dilution rights to any person with
respect to any of its equity or debt securities. Except as set forth on Schedule
2.1(c), the Company is not a party to, and it has no knowledge of, any agreement
or understanding restricting the voting or transfer of any shares of the capital
stock of the Company.

(d)  Issuance  of  Securities.  The Notes and the  Warrants to be issued at each
Closing have been duly  authorized by all necessary  corporate  action and, when
paid for or  issued in  accordance  with the terms  hereof,  the Notes  shall be
validly issued and  outstanding,  free and clear of all liens,  encumbrances and
rights of refusal of any kind. When the Conversion Shares and Warrant Shares are
issued and paid for in  accordance  with the terms of this  Agreement and as set
forth in the Notes and  Warrants,  such  shares will be duly  authorized  by all
necessary  corporate action and validly issued and  outstanding,  fully paid and
nonassessable,  free and clear of all liens,  encumbrances and rights of refusal
of any kind and the holders shall be entitled to all rights accorded to a holder
of Common Stock.

(e) No Conflicts.  The execution,  delivery and  performance of the  Transaction
Documents  by the Company,  the  performance  by the Company of its  obligations
under  the  Notes  and  the  consummation  by the  Company  of the  transactions
contemplated  hereby  and  thereby,  and  the  issuance  of  the  Securities  as
contemplated  hereby,  do not and  will not (i)  violate  or  conflict  with any
provision of the Company's  Certificate of Incorporation (the  "Certificate") or
Bylaws (the "Bylaws"),  each as amended to date, or any Subsidiary's  comparable
charter  documents,  (ii)  conflict  with,  or constitute a default (or an event
which with  notice or lapse of time or both would  become a default)  under,  or
give  to  others  any  rights  of   termination,   amendment,   acceleration  or
cancellation of, any agreement,  mortgage, deed of trust, indenture, note, bond,
license,  lease agreement,  instrument or obligation to which the Company or any
of  its  Subsidiaries  is a  party  or by  which  the  Company  or  any  of  its
Subsidiaries'  respective  properties or assets are bound,  or (iii) result in a
violation of any federal,  state,  local or foreign statute,  rule,  regulation,
order,  judgment  or decree  (including  federal and state  securities  laws and
regulations)  applicable to the Company or any of its  Subsidiaries  or by which
any  property  or asset of the Company or any of its  Subsidiaries  are bound or
affected,  except,  in all cases,  for such conflicts,  defaults,  terminations,
amendments,   acceleration,   cancellations   and   violations   as  would  not,
individually  or in the  aggregate,  have a Material  Adverse Effect (other than
violations  pursuant to clauses (i) or (iii) (with  respect to federal and state
securities  laws)).  Neither the Company nor any of its Subsidiaries is required
under  federal,  state,  foreign or local law,  rule or regulation to obtain any
consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute,  deliver or perform any
of its  obligations  under  the  Transaction  Documents  or  issue  and sell the
Securities in accordance with the terms hereof (other than any filings, consents
and approvals  which may be required to be made by the Company under  applicable
state and federal  securities  laws,  rules or regulations  or any  registration
provisions provided in the Registration Rights Agreement).

                                      -4-
<PAGE>

(f) Commission Documents,  Financial Statements. The Common Stock of the Company
is registered  pursuant to Section 12(b) or 12(g) of the Securities Exchange Act
of 1934, as amended (the  "Exchange  Act"),  and except as set forth on Schedule
2.1(f)  hereto,  the Company has timely  filed all  reports,  schedules,  forms,
statements  and other  documents  required to be filed by it with the Commission
pursuant to the reporting requirements of the Exchange Act (all of the foregoing
including filings  incorporated by reference therein being referred to herein as
the "Commission  Documents").  Except as set forth on Schedule 2.1(f) hereto, at
the times of their respective  filings,  the Form 10-QSB for the fiscal quarters
ended  September 30, 2005,  March 31, 2005 and December 31, 2004  (collectively,
the "Form  10-QSB")  and the Form 10-KSB for the fiscal year ended June 30, 2005
(the "Form 10-KSB")  complied in all material  respects with the requirements of
the Exchange Act and the rules and  regulations  of the  Commission  promulgated
thereunder  and  other  federal,  state and local  laws,  rules and  regulations
applicable  to such  documents,  and the Form  10-QSB  and Form  10-KSB  did not
contain any untrue statement of a material fact or omit to state a material fact
required  to be stated  therein  or  necessary  in order to make the  statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading. As of their respective dates, except as set forth on Schedule 2.1(f)
hereto,  the  financial  statements  of the Company  included in the  Commission
Documents  complied  as  to  form  in  all  material  respects  with  applicable
accounting   requirements  and  the  published  rules  and  regulations  of  the
Commission or other applicable rules and regulations with respect thereto.  Such
financial  statements have been prepared in accordance  with generally  accepted
accounting  principles ("GAAP") applied on a consistent basis during the periods
involved (except (i) as may be otherwise indicated in such financial  statements
or the notes thereto or (ii) in the case of unaudited interim statements, to the
extent  they  may  not  include   footnotes  or  may  be  condensed  or  summary
statements),  and fairly present in all material respects the financial position
of the Company and its  Subsidiaries  as of the dates thereof and the results of
operations  and cash flows for the periods then ended  (subject,  in the case of
unaudited statements, to normal year-end audit adjustments).

(g)  Subsidiaries.  Schedule  2.1(g)  hereto sets forth each  Subsidiary  of the
Company,  showing the  jurisdiction of its  incorporation  or  organization  and
showing the percentage of each person's  ownership of the  outstanding  stock or
other  interests  of such  Subsidiary.  For  the  purposes  of  this  Agreement,
"Subsidiary"  shall  mean any  corporation  or other  entity of which at least a
majority of the securities or other  ownership  interest  having ordinary voting
power  (absolutely  or  contingently)  for the  election of  directors  or other
persons  performing  similar  functions  are  at  the  time  owned  directly  or
indirectly  by the  Company  and/or  any of its other  Subsidiaries.  All of the
outstanding shares of capital stock of each Subsidiary have been duly authorized
and validly issued, and are fully paid and nonassessable. Except as set forth on
Schedule 2.1(g) hereto, there are no outstanding preemptive, conversion or other
rights, options, warrants or agreements granted or issued by or binding upon any
Subsidiary for the purchase or acquisition of any shares of capital stock of any
Subsidiary  or  any  other  securities  convertible  into,  exchangeable  for or
evidencing the rights to subscribe for any shares of such capital stock. Neither
the Company  nor any  Subsidiary  is subject to any  obligation  (contingent  or
otherwise)  to  repurchase  or  otherwise  acquire  or retire  any shares of the
capital stock of any Subsidiary or any convertible securities,  rights, warrants
or options of the type described in the preceding  sentence  except as set forth
on Schedule  2.1(g) hereto.  Neither the Company nor any Subsidiary is party to,
nor has any knowledge of, any  agreement  restricting  the voting or transfer of
any shares of the capital stock of any Subsidiary.

                                      -5-
<PAGE>

(h) No  Material  Adverse  Change.  Since June 30,  2005,  the  Company  has not
experienced  or suffered any  Material  Adverse  Effect,  except as disclosed on
Schedule 2.1(h) hereto.

(i) No Undisclosed  Liabilities.  Except as disclosed on Schedule 2.1(i) hereto,
neither the Company nor any of its  Subsidiaries  has incurred any  liabilities,
obligations,  claims or losses (whether  liquidated or unliquidated,  secured or
unsecured, absolute, accrued, contingent or otherwise) other than those incurred
in  the  ordinary  course  of  the  Company's  or  its  Subsidiaries  respective
businesses or which, individually or in the aggregate, are not reasonably likely
to have a Material Adverse Effect.

(j) No  Undisclosed  Events or  Circumstances.  Since June 30,  2005,  except as
disclosed on Schedule 2.1(j) hereto,  no event or  circumstance  has occurred or
exists  with  respect to the  Company or its  Subsidiaries  or their  respective
businesses,  properties,  prospects,  operations or financial condition,  which,
under  applicable  law,  rule  or  regulation,  requires  public  disclosure  or
announcement  by the  Company but which has not been so  publicly  announced  or
disclosed.

(k)  Indebtedness.  Schedule  2.1(k) hereto sets forth as of the date hereof all
outstanding secured and unsecured Indebtedness of the Company or any Subsidiary,
or for which the Company or any Subsidiary has commitments.  For the purposes of
this Agreement, "Indebtedness" shall mean (a) any liabilities for borrowed money
or  amounts  owed in excess of  $100,000  (other  than  trade  accounts  payable
incurred in the ordinary course of business),  (b) all guaranties,  endorsements
and other contingent  obligations in respect of Indebtedness of others,  whether
or not the same are or should be reflected in the  Company's  balance  sheet (or
the notes thereto),  except guaranties by endorsement of negotiable  instruments
for deposit or  collection  or similar  transactions  in the ordinary  course of
business;  and (c) the present value of any lease  payments in excess of $25,000
due under leases required to be capitalized in accordance with GAAP. Neither the
Company nor any Subsidiary is in default with respect to any Indebtedness.

(l) Title to Assets. Each of the Company and the Subsidiaries has good and valid
title to all of its real  and  personal  property  reflected  in the  Commission
Documents,  free and clear of any mortgages,  pledges,  charges, liens, security
interests or other  encumbrances,  except for those indicated on Schedule 2.1(l)
hereto or such that,  individually or in the aggregate,  do not cause a Material
Adverse Effect. Any leases of the Company and each of its Subsidiaries are valid
and subsisting and in full force and effect.

(m)  Actions  Pending.   There  is  no  action,   suit,  claim,   investigation,
arbitration, alternate dispute resolution proceeding or other proceeding pending
or, to the  knowledge  of the  Company,  threatened  against  the Company or any
Subsidiary  which  questions the validity of this  Agreement or any of the other
Transaction Documents or any of the transactions  contemplated hereby or thereby
or any action  taken or to be taken  pursuant  hereto or thereto.  Except as set
forth in the  Commission  Documents or on Schedule  2.1(m)  hereto,  there is no
action, suit, claim,  investigation,  arbitration,  alternate dispute resolution
proceeding  or other  proceeding  pending or, to the  knowledge  of the Company,
threatened  against or involving  the Company,  any  Subsidiary  or any of their
respective  properties or assets, which individually or in the aggregate,  would
reasonably  be expected,  if adversely  determined,  to have a Material  Adverse
Effect.  There are no  outstanding  orders,  judgments,  injunctions,  awards or

                                      -6-
<PAGE>

decrees of any court,  arbitrator or governmental or regulatory body against the
Company  or any  Subsidiary  or any  officers  or  directors  of the  Company or
Subsidiary in their capacities as such, which  individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

(n) Compliance  with Law. The business of the Company and the  Subsidiaries  has
been and is presently being conducted in accordance with all applicable federal,
state and local governmental laws, rules, regulations and ordinances,  except as
set forth in the Commission Documents or on Schedule 2.1(n) hereto or such that,
individually  or  in  the  aggregate,  the  noncompliance  therewith  could  not
reasonably be expected to have a Material  Adverse Effect.  The Company and each
of its Subsidiaries have all franchises,  permits, licenses,  consents and other
governmental  or  regulatory  authorizations  and  approvals  necessary  for the
conduct of its  business  as now being  conducted  by it unless  the  failure to
possess such franchises,  permits, licenses,  consents and other governmental or
regulatory authorizations and approvals, individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.

(o) Taxes.  Except as set forth on Schedule 2.1(o) hereto,  the Company and each
of the  Subsidiaries  has accurately  prepared and filed all federal,  state and
other tax returns required by law to be filed by it, has paid or made provisions
for the payment of all taxes shown to be due and all additional assessments, and
adequate  provisions have been and are reflected in the financial  statements of
the Company and the  Subsidiaries  for all  current  taxes and other  charges to
which the Company or any  Subsidiary  is subject and which are not currently due
and payable.  Except as disclosed on Schedule 2.1(o) hereto or in the Commission
Documents,  none  of the  federal  income  tax  returns  of the  Company  or any
Subsidiary have been audited by the Internal Revenue Service. The Company has no
knowledge of any additional assessments, adjustments or contingent tax liability
(whether  federal  or  state)  of any  nature  whatsoever,  whether  pending  or
threatened  against the  Company or any  Subsidiary  for any period,  nor of any
basis for any such assessment, adjustment or contingency.

(p) Certain Fees. Except as set forth on Schedule 2.1(p) hereto, the Company has
not employed any broker or finder or incurred any liability for any brokerage or
investment  banking fees,  commissions,  finders'  structuring  fees,  financial
advisory  fees  or  other  similar  fees  in  connection  with  the  Transaction
Documents.

(q) Disclosure.  Except for the transactions contemplated by this Agreement, the
Company  confirms  that neither it nor any other person acting on its behalf has
provided any of the  Purchasers or their agents or counsel with any  information
that constitutes or might constitute  material,  nonpublic  information.  To the
best of the Company's knowledge,  neither this Agreement or the Schedules hereto
nor any other documents, certificates or instruments furnished to the Purchasers
by or on  behalf  of the  Company  or any  Subsidiary  in  connection  with  the
transactions  contemplated by this Agreement  contain any untrue  statement of a
material  fact or omit to state a material  fact  necessary in order to make the
statements made herein or therein, in the light of the circumstances under which
they were made herein or therein, not misleading.

(r) Operation of Business.  Except as set forth on Schedule  2.1(r) hereto,  the
Company  and  each of the  Subsidiaries  owns or  possesses  the  rights  to all
patents, trademarks, domain names (whether or not registered) and any patentable

                                      -7-
<PAGE>

improvements   or   copyrightable   derivative   works  thereof,   websites  and
intellectual  property  rights  relating  thereto,  service marks,  trade names,
copyrights,  licenses and authorizations  which are necessary for the conduct of
its business as now conducted without any conflict with the rights of others.

(s) Environmental  Compliance.  To the best knowledge of the Company,  except as
set forth on Schedule 2.1(s) hereto or in the Commission Documents,  the Company
and  each  of  its   Subsidiaries   have   obtained  all   material   approvals,
authorization,  certificates,  consents,  licenses,  orders and permits or other
similar  authorizations  of all  governmental  authorities,  or from  any  other
person,  that are required under any Environmental  Laws.  "Environmental  Laws"
shall mean all  applicable  laws relating to the  protection of the  environment
including,   without  limitation,  all  requirements  pertaining  to  reporting,
licensing,  permitting,  controlling,  investigating  or remediating  emissions,
discharges,  releases or threatened releases of hazardous  substances,  chemical
substances,  pollutants,  contaminants or toxic substances, materials or wastes,
whether  solid,  liquid or  gaseous  in  nature,  into the air,  surface  water,
groundwater or land, or relating to the manufacture,  processing,  distribution,
use,  treatment,   storage,   disposal,   transport  or  handling  of  hazardous
substances, chemical substances,  pollutants,  contaminants or toxic substances,
material or wastes,  whether solid,  liquid or gaseous in nature. To the best of
the Company's knowledge,  the Company has all necessary  governmental  approvals
required under all Environmental Laws as necessary for the Company's business or
the business of any of its subsidiaries. To the best of the Company's knowledge,
the Company and each of its  subsidiaries  are also in compliance with all other
limitations,  restrictions,  conditions, standards, requirements,  schedules and
timetables  required or imposed under all  Environmental  Laws.  Except for such
instances as would not  individually or in the aggregate have a Material Adverse
Effect,  there  are  no  past  or  present  events,  conditions,  circumstances,
incidents,  actions or omissions relating to or in any way affecting the Company
or its Subsidiaries  that violate or may violate any Environmental Law after the
Initial Closing Date or that may give rise to any  environmental  liability,  or
otherwise  form the  basis  of any  claim,  action,  demand,  suit,  proceeding,
hearing,  study or investigation (i) under any Environmental  Law, or (ii) based
on or related to the  manufacture,  processing,  distribution,  use,  treatment,
storage  (including  without limitation  underground  storage tanks),  disposal,
transport or handling, or the emission, discharge, release or threatened release
of any hazardous substance.

(t) Books and Records;  Internal Accounting Controls.  The records and documents
of the Company and its Subsidiaries  accurately reflect in all material respects
the  information  relating to the business of the Company and the  Subsidiaries,
the location and collection of their assets,  and the nature of all transactions
giving  rise to the  obligations  or accounts  receivable  of the Company or any
Subsidiary.  The  Company  and each of its  Subsidiaries  maintain  a system  of
internal accounting controls sufficient,  in the judgment of the Company's board
of directors, to provide reasonable assurance that (i) transactions are executed
in  accordance  with  management's  general  or  specific  authorizations,  (ii)
transactions  are  recorded as  necessary  to permit  preparation  of  financial
statements in conformity with generally  accepted  accounting  principles and to
maintain  asset  accountability,  (iii)  access to assets is  permitted  only in
accordance  with  management's  general or specific  authorization  and (iv) the
recorded  accountability  for assets is  compared  with the  existing  assets at
reasonable  intervals  and  appropriate  actions  are taken with  respect to any
differences.

                                      -8-
<PAGE>

(u) Material Agreements.  Except for the Transaction  Documents (with respect to
clause (i) only),  as disclosed in the  Commission  Documents or as set forth on
Schedule 2.1(u) hereto,  or as would not be reasonably likely to have a Material
Adverse Effect,  (i) the Company and each of its Subsidiaries have performed all
obligations  required to be  performed by them to date under any written or oral
contract, instrument,  agreement,  commitment,  obligation, plan or arrangement,
filed or required to be filed with the Commission  (the "Material  Agreements"),
(ii) neither the Company nor any of its  Subsidiaries has received any notice of
default  under any Material  Agreement  and,  (iii) to the best of the Company's
knowledge,  neither the Company nor any of its  Subsidiaries is in default under
any Material Agreement now in effect.

(v) Transactions with Affiliates.  Except as set forth on Schedule 2.1(v) hereto
and  in the  Commission  Documents,  there  are no  loans,  leases,  agreements,
contracts,  royalty  agreements,  management  contracts or arrangements or other
continuing  transactions between (a) the Company, any Subsidiary or any of their
respective  customers or  suppliers on the one hand,  and (b) on the other hand,
any officer,  employee,  consultant  or director of the  Company,  or any of its
Subsidiaries,  or any person owning at least 5% of the outstanding capital stock
of the Company or any  Subsidiary or any member of the immediate  family of such
officer,  employee,  consultant,  director or stockholder or any  corporation or
other entity  controlled  by such  officer,  employee,  consultant,  director or
stockholder,  or a member of the  immediate  family of such  officer,  employee,
consultant,  director  or  stockholder  which,  in each case,  is required to be
disclosed in the  Commission  Documents or in the Company's  most recently filed
definitive  proxy  statement  on Schedule  14A,  that is not so disclosed in the
Commission Documents or in such proxy statement.

(w)  Securities  Act of 1933.  Based in material  part upon the  representations
herein of the  Purchasers,  the  Company has  complied  and will comply with all
applicable  federal  and state  securities  laws in  connection  with the offer,
issuance and sale of the  Securities  hereunder.  Neither the Company nor anyone
acting on its behalf, directly or indirectly, has or will sell, offer to sell or
solicit offers to buy any of the Securities or similar securities to, or solicit
offers  with  respect  thereto  from,  or enter into any  negotiations  relating
thereto  with,  any person,  or has taken or will take any action so as to bring
the issuance and sale of any of the Securities under the registration provisions
of the  Securities  Act and applicable  state  securities  laws, and neither the
Company nor any of its affiliates, nor any person acting on its or their behalf,
has engaged in any form of general  solicitation or general  advertising (within
the meaning of Regulation D under the  Securities  Act) in  connection  with the
offer or sale of any of the Securities.

(x)  Employees.  Neither  the  Company  nor any  Subsidiary  has any  collective
bargaining  arrangements or agreements covering any of its employees,  except as
set forth on Schedule  2.1(x)  hereto.  Except as set forth on  Schedule  2.1(x)
hereto,  neither the Company nor any  Subsidiary  has any  employment  contract,
agreement  regarding   proprietary   information,   non-competition   agreement,
non-solicitation  agreement,  confidentiality  agreement,  or any other  similar
contract or restrictive covenant, relating to the right of any officer, employee
or  consultant  to be  employed  or  engaged by the  Company or such  Subsidiary
required to be disclosed in the  Commission  Documents that is not so disclosed.
No officer,  consultant or key employee of the Company or any  Subsidiary  whose
termination, either individually or in the aggregate, would be reasonably likely

                                      -9-
<PAGE>

to have a Material  Adverse  Effect,  has terminated or, to the knowledge of the
Company,  has any present  intention of  terminating  his or her  employment  or
engagement with the Company or any Subsidiary.

(y)  Absence  of  Certain  Developments.  Except as set forth in the  Commission
Documents or provided on Schedule  2.1(y) hereto,  since June 30, 2005,  neither
the Company nor any Subsidiary has:

(i) issued any stock, bonds or other corporate  securities or any right, options
or warrants with respect thereto;

(ii) borrowed any amount in excess of $100,000 or incurred or become  subject to
any other  liabilities  in excess of $100,000  (absolute or  contingent)  except
current  liabilities  incurred  in the  ordinary  course of  business  which are
comparable  in nature  and amount to the  current  liabilities  incurred  in the
ordinary  course of business  during the comparable  portion of its prior fiscal
year,  as adjusted to reflect the current  nature and volume of the  business of
the Company and its Subsidiaries;

(iii)  discharged or satisfied any lien or  encumbrance in excess of $100,000 or
paid any obligation or liability (absolute or contingent) in excess of $100,000,
other than current liabilities paid in the ordinary course of business;

(iv) declared or made any payment or  distribution  of cash or other property to
stockholders  with respect to its stock,  or purchased or redeemed,  or made any
agreements so to purchase or redeem,  any shares of its capital  stock,  in each
case in excess of $50,000 individually or $100,000 in the aggregate;

(v) sold,  assigned or transferred  any other tangible  assets,  or canceled any
debts or  claims,  in each case in excess of  $100,000,  except in the  ordinary
course of business;

(vi) sold, assigned or transferred any patent rights,  trademarks,  trade names,
copyrights,  trade secrets or other intangible  assets or intellectual  property
rights  in  excess  of  $100,000,  or  disclosed  any  proprietary  confidential
information to any person except to customers in the ordinary course of business
or to the Purchasers or their representatives;

(vii)  suffered  any  material  losses or waived any rights of  material  value,
whether or not in the ordinary  course of business,  or suffered the loss of any
material amount of prospective business;

(viii) made any changes in employee  compensation  except in the ordinary course
of business and consistent with past practices;

(ix) made capital  expenditures or commitments therefor that aggregate in excess
of $100,000;

                                      -10-
<PAGE>

(x) entered into any material transaction, whether or not in the ordinary course
of business;

(xi) made charitable contributions or pledges in excess of $10,000;

(xii) suffered any material damage, destruction or casualty loss, whether or not
covered by insurance;  (xiii)  experienced  any material  problems with labor or
management in connection with the terms and conditions of their employment; or

(xiv)  entered  into an  agreement,  written  or  otherwise,  to take any of the
foregoing actions.

(z) Public Utility  Holding Company Act and Investment  Company Act Status.  The
Company is not a "holding  company" or a "public utility  company" as such terms
are defined in the Public Utility Holding  Company Act of 1935, as amended.  The
Company is not, and as a result of and immediately upon the Closing will not be,
an "investment  company" or a company  "controlled" by an "investment  company,"
within the meaning of the Investment Company Act of 1940, as amended.

(aa) ERISA.  No liability to the Pension Benefit  Guaranty  Corporation has been
incurred  with  respect to any Plan by the  Company  or any of its  Subsidiaries
which is or would be materially adverse to the Company and its Subsidiaries. The
execution  and  delivery  of this  Agreement  and the  issuance  and sale of the
Securities will not involve any transaction which is subject to the prohibitions
of Section  406 of the  Employee  Retirement  Income  Security  Act of 1974,  as
amended ("ERISA") or in connection with which a tax could be imposed pursuant to
Section 4975 of the Internal Revenue Code of 1986, as amended, provided that, if
any of the Purchasers,  or any person or entity that owns a beneficial  interest
in any of the  Purchasers,  is an "employee  pension  benefit  plan" (within the
meaning of Section  3(2) of ERISA) with respect to which the Company is a "party
in interest" (within the meaning of Section 3(14) of ERISA), the requirements of
Sections 407(d)(5) and 408(e) of ERISA, if applicable,  are met. As used in this
Section 2.1(aa),  the term "Plan" shall mean an "employee  pension benefit plan"
(as  defined  in  Section  3 of  ERISA)  which  is or has  been  established  or
maintained,  or to which  contributions are or have been made, by the Company or
any Subsidiary or by any trade or business, whether or not incorporated,  which,
together  with the  Company  or any  Subsidiary,  is under  common  control,  as
described in Section 414(b) or (c) of the Code.

(bb)  Independent  Nature  of  Purchasers.  The  Company  acknowledges  that the
obligations of each Purchaser  under the  Transaction  Documents are several and
not joint with the obligations of any other Purchaser, and no Purchaser shall be
responsible  in any way for the  performance  of the  obligations  of any  other
Purchaser under the Transaction  Documents.  The Company  acknowledges  that the
decision of each Purchaser to purchase Securities pursuant to this Agreement has
been  made  by  such  Purchaser   independently   of  any  other  Purchaser  and
independently  of any information,  materials,  statements or opinions as to the
business,  affairs,  operations,  assets,  properties,  liabilities,  results of
operations, condition (financial or otherwise) or prospects of the Company or of

                                      -11-
<PAGE>

its  Subsidiaries  which may have made or given by any other Purchaser or by any
agent or employee of any other Purchaser,  and no Purchaser or any of its agents
or employees  shall have any  liability to any  Purchaser  (or any other person)
relating  to or arising  from any such  information,  materials,  statements  or
opinions.  The Company  acknowledges  that nothing  contained  herein, or in any
Transaction  Document,  and no action taken by any Purchaser  pursuant hereto or
thereto,  shall be deemed to  constitute  the  Purchasers as a  partnership,  an
association,  a  joint  venture  or any  other  kind  of  entity,  or  create  a
presumption  that the  Purchasers are in any way acting in concert or as a group
with  respect  to  such  obligations  or the  transactions  contemplated  by the
Transaction   Documents.   The   Company   acknowledges   that  for  reasons  of
administrative convenience only, the Transaction Documents have been prepared by
counsel for one of the Purchasers and such counsel does not represent all of the
Purchasers but only such Purchaser and the other  Purchasers have retained their
own individual counsel with respect to the transactions contemplated hereby. The
Company acknowledges that it has elected to provide all Purchasers with the same
terms and  Transaction  Documents  for the  convenience  of the  Company and not
because it was  required or requested  to do so by the  Purchasers.  The Company
acknowledges that such procedure with respect to the Transaction Documents in no
way creates a presumption  that the  Purchasers are in any way acting in concert
or as a group with  respect to the  Transaction  Documents  or the  transactions
contemplated hereby or thereby.

(cc) No Integrated Offering. Neither the Company, nor any of its affiliates, nor
any person  acting on its or their behalf,  has directly or indirectly  made any
offers or sales of any  security  or  solicited  any offers to buy any  security
under  circumstances that would cause the offering of the Securities pursuant to
this Agreement to be integrated with prior offerings by the Company for purposes
of the  Securities  Act  which  would  prevent  the  Company  from  selling  the
Securities  pursuant to Regulation D and Rule 506 thereof  under the  Securities
Act, or any applicable  exchange-related  stockholder approval  provisions,  nor
will the Company or any of its  affiliates  or  subsidiaries  take any action or
steps that would cause the  offering of the  Securities  to be  integrated  with
other offerings.  The Company does not have any registration  statement  pending
before the Commission or currently under the  Commission's  review and except as
set forth on Schedule  2.1(cc)  hereto,  and since July 1, 2005, the Company has
not offered or sold any of its equity securities or debt securities  convertible
into shares of Common Stock.

(dd)  Sarbanes-Oxley  Act.  The  Company is in  compliance  with the  applicable
provisions of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), and the
rules and regulations promulgated thereunder, that are effective, and intends to
comply with other applicable provisions of the Sarbanes-Oxley Act, and the rules
and  regulations  promulgated   thereunder,   upon  the  effectiveness  of  such
provisions.

(ee)  Dilutive  Effect.  The  Company  understands  and  acknowledges  that  its
obligation to issue Conversion Shares upon conversion of the Notes in accordance
with  this  Agreement  and the Notes and its  obligations  to issue the  Warrant
Shares upon the exercise of the Warrants in accordance  with this  Agreement and
the Warrants,  is, in each case,  absolute and  unconditional  regardless of the
dilutive  effect that such issuance may have on the ownership  interest of other
stockholders of the Company.

                                      -12-
<PAGE>

(ff) DTC Status. The Company's transfer agent is a participant in and the Common
Stock  is  eligible  for  transfer  pursuant  to the  Depository  Trust  Company
Automated Securities Transfer Program. The name, address,  telephone number, fax
number,  contact person and email address of the Company's transfer agent is set
forth on Schedule 2.1(ff) hereto.

(gg) Solvency. Based on the financial condition of the Company as of the Closing
Date (after giving  effect to the  transactions  contemplated  herein and in the
other  Transaction  Documents),  (i) the Company's  fair  saleable  value of its
assets  exceeds  the amount that will be required to be paid on or in respect of
the Company's  existing debts and other liabilities  (including known contingent
liabilities)  as they  mature;  (ii)  the  Company's  assets  do not  constitute
unreasonably  small capital to carry on its business for the current fiscal year
as now  conducted  and as proposed to be conducted  including  its capital needs
taking  into  account  the  particular  capital  requirements  of  the  business
conducted  by the  Company,  and  projected  capital  requirements  and  capital
availability  thereof; and (iii) the current cash flow of the Company,  together
with the proceeds the Company  would  receive,  were it to liquidate  all of its
assets,  after taking into account all  anticipated  uses of the cash,  would be
sufficient to pay all amounts on or in respect of its debt when such amounts are
required  to be paid.  The  Company  does not intend to incur  debts  beyond its
ability to pay such debts as they  mature  (taking  into  account the timing and
amounts of cash to be payable on or in respect of its debt).

Section  2.2.......Representations and Warranties of the Purchasers. Each of the
Purchasers  hereby represents and warrants to the Company with respect solely to
itself  and not with  respect to any other  Purchaser  as follows as of the date
hereof and as of each Closing Date:

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

(b)  Authorization  and  Power.  Each  Purchaser  has the  requisite  power  and
authority to enter into and perform the  Transaction  Documents  and to purchase
the  Securities  being  sold  to  it  hereunder.  The  execution,  delivery  and
performance of the Transaction  Documents by each Purchaser and the consummation
by it of the transactions  contemplated  hereby have been duly authorized by all
necessary   corporate  or  partnership   action,   and  no  further  consent  or
authorization  of such  Purchaser or its Board of  Directors,  stockholders,  or
partners,  as the case may be, is required.  When  executed and delivered by the
Purchasers,  the other Transaction  Documents shall constitute valid and binding
obligations of each Purchaser  enforceable  against such Purchaser in accordance
with their terms,  except as such  enforceability  may be limited by  applicable
bankruptcy,     insolvency,     reorganization,     moratorium,     liquidation,
conservatorship,   receivership  or  similar  laws  relating  to,  or  affecting
generally  the  enforcement  of,  creditor's  rights  and  remedies  or by other
equitable principles of general application.

(c) No Conflict.  The execution,  delivery and  performance  of the  Transaction
Documents  by  the  Purchaser  and  the  consummation  by the  Purchaser  of the
transactions contemplated thereby and hereby do not and will not (i) violate any
provision of the Purchaser's charter or organizational  documents, (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or

                                      -13-
<PAGE>

both would become a default) under, or give to others any rights of termination,
amendment,  acceleration or cancellation  of, any agreement,  mortgage,  deed of
trust, indenture, note, bond, license, lease agreement, instrument or obligation
to  which  the  Purchaser  is a party  or by which  the  Purchaser's  respective
properties  or assets are bound,  or (iii) result in a violation of any federal,
state, local or foreign statute,  rule,  regulation,  order,  judgment or decree
(including federal and state securities laws and regulations)  applicable to the
Purchaser  or by which  any  property  or asset of the  Purchaser  are  bound or
affected, except, in all cases, other than violations pursuant to clauses (i) or
(iii) (with respect to federal and state  securities  laws) above,  except,  for
such conflicts, defaults, terminations, amendments, acceleration,  cancellations
and violations as would not,  individually  or in the aggregate,  materially and
adversely  affect the Purchaser's  ability to perform its obligations  under the
Transaction Documents.

(d)  Acquisition  for  Investment.  Each  Purchaser is purchasing the Securities
solely for its own account and not with a view to or for sale in connection with
distribution.  Each Purchaser  does not have a present  intention to sell any of
the Securities,  nor a present  arrangement  (whether or not legally binding) or
intention to effect any  distribution of any of the Securities to or through any
person or entity; provided,  however, that by making the representations herein,
such  Purchaser  does not agree to hold the  Securities for any minimum or other
specific term and reserves the right to dispose of the Securities at any time in
accordance   with  Federal  and  state   securities   laws  applicable  to  such
disposition.  Each  Purchaser  acknowledges  that it (i) has such  knowledge and
experience in financial and business  matters such that  Purchaser is capable of
evaluating the merits and risks of Purchaser's  investment in the Company,  (ii)
is able  to bear  the  financial  risks  associated  with an  investment  in the
Securities  and (iii) has been given full access to such  records of the Company
and the  Subsidiaries and to the officers of the Company and the Subsidiaries as
it  has  deemed   necessary  or   appropriate   to  conduct  its  due  diligence
investigation.

(e) Rule  144.  Each  Purchaser  understands  that the  Securities  must be held
indefinitely  unless such Securities are registered  under the Securities Act or
an exemption from  registration is available.  Each Purchaser  acknowledges that
such  person is  familiar  with Rule 144 of the  rules  and  regulations  of the
Commission, as amended, promulgated pursuant to the Securities Act ("Rule 144"),
and that such  Purchaser  has been  advised  that Rule 144 permits  resales only
under certain circumstances.  Each Purchaser understands that to the extent that
Rule 144 is not available,  such Purchaser will be unable to sell any Securities
without either registration under the Securities Act or the existence of another
exemption from such registration requirement.

(f) General.  Each Purchaser  understands  that the Securities are being offered
and  sold  in  reliance  on a  transactional  exemption  from  the  registration
requirements  of federal  and state  securities  laws and the Company is relying
upon the truth and  accuracy  of the  representations,  warranties,  agreements,
acknowledgments  and  understandings of such Purchaser set forth herein in order
to determine the  applicability  of such  exemptions and the suitability of such
Purchaser to acquire the Securities.  Each Purchaser  understands that no United
States  federal or state agency or any  government  or  governmental  agency has
passed upon or made any recommendation or endorsement of the Securities.

                                      -14-
<PAGE>

(g) No General  Solicitation.  Each Purchaser  acknowledges  that the Securities
were not  offered  to such  Purchaser  by means of any form of general or public
solicitation or general advertising,  or publicly disseminated advertisements or
sales  literature,  including (i) any  advertisement,  article,  notice or other
communication  published  in any  newspaper,  magazine,  or  similar  media,  or
broadcast over television or radio, or (ii) any seminar or meeting to which such
Purchaser  was invited by any of the  foregoing  means of  communications.  Each
Purchaser,  in making the decision to purchase the  Securities,  has relied upon
independent  investigation  made by it and has not relied on any  information or
representations made by third parties.

(h) Accredited Investor.  Each Purchaser is an "accredited investor" (as defined
in Rule 501 of Regulation D), and such Purchaser has such experience in business
and financial  matters that it is capable of evaluating  the merits and risks of
an investment in the Securities. Such Purchaser is not required to be registered
as a  broker-dealer  under Section 15 of the Exchange Act and such  Purchaser is
not a  broker-dealer.  Each  Purchaser  acknowledges  that an  investment in the
Securities is speculative and involves a high degree of risk.

(i) Certain  Fees.  The  Purchasers  have not  employed  any broker or finder or
incurred  any  liability   for  any   brokerage  or  investment   banking  fees,
commissions, finders' structuring fees, financial advisory fees or other similar
fees in connection with the Transaction Documents.

(j)  Independent  Investment.  No  Purchaser  has  agreed  to act with any other
Purchaser  for the purpose of  acquiring,  holding,  voting or  disposing of the
Securities  purchased hereunder for purposes of Section 13(d) under the Exchange
Act, and each Purchaser is acting  independently  with respect to its investment
in the Securities.

                                  ARTICLE III

                                    COVENANTS

         The Company  covenants with each Purchaser as follows,  which covenants
are for the benefit of each Purchaser and their respective permitted assignees.

Section 3.1.......Securities Compliance. The Company shall notify the Commission
in accordance with its rules and regulations,  of the transactions  contemplated
by any of the Transaction  Documents and shall take all other  necessary  action
and  proceedings  as may be required and permitted by  applicable  law, rule and
regulation,  for  the  legal  and  valid  issuance  of  the  Securities  to  the
Purchasers, or their respective subsequent holders.

Section  3.2.......Registration and Listing. So long as a Purchaser beneficially
owns any of the Securities, the Company shall cause its Common Stock to continue
to be registered under Sections 12(b) or 12(g) of the Exchange Act, to comply in
all respects with its reporting and filing  obligations  under the Exchange Act,
to comply with all  requirements  related to any  registration  statement  filed
pursuant  to this  Agreement,  and to not take any  action or file any  document
(whether  or not  permitted  by the  Securities  Act  or the  rules  promulgated
thereunder) to terminate or suspend such registration or to terminate or suspend
its reporting and filing  obligations  under the Exchange Act or Securities Act,
except as  permitted  herein.  The  Company  will take all action  necessary  to
continue the listing or trading of its Common Stock on the OTC Bulletin Board or
other  exchange or market on which the Common  Stock is trading.  Subject to the
terms of the Transaction  Documents,  the Company further covenants that it will
take such further action as the Purchasers  may reasonably  request,  all to the
extent  required  from  time  to time  to  enable  the  Purchasers  to sell  the
Securities  without  registration under the Securities Act within the limitation
of the exemptions  provided by Rule 144  promulgated  under the Securities  Act.
Upon the request of the Purchasers,  the Company shall deliver to the Purchasers
a written  certification  of a duly  authorized  officer  as to  whether  it has
complied with such requirements.

                                      -15-
<PAGE>

Section  3.3.......Inspection Rights. Provided same would not be in violation of
Regulation FD, the Company shall permit,  during normal  business hours and upon
reasonable  request and  reasonable  notice,  each  Purchaser or any  employees,
agents or representatives  thereof, so long as such Purchaser shall be obligated
hereunder to purchase the Notes or shall  beneficially own any Conversion Shares
or Warrant Shares, for purposes reasonably related to such Purchaser's interests
as a stockholder,  to examine the publicly available,  non-confidential  records
and  books of  account  of,  and  visit  and  inspect  the  properties,  assets,
operations  and business of the Company and any  Subsidiary,  and to discuss the
publicly  available,  non-confidential  affairs,  finances  and  accounts of the
Company and any Subsidiary with any of its officers, consultants, directors, and
key employees.

Section 3.4.......Compliance with Laws. The Company shall comply, and cause each
Subsidiary to comply,  with all applicable laws, rules,  regulations and orders,
noncompliance  with which would be reasonably  likely to have a Material Adverse
Effect.

Section  3.5.......Keeping  of Records and Books of Account.  The Company  shall
keep and cause each Subsidiary to keep adequate records and books of account, in
which  complete  entries  will be  made in  accordance  with  GAAP  consistently
applied,   reflecting  all  financial   transactions  of  the  Company  and  its
Subsidiaries,  and in which,  for each  fiscal  year,  all proper  reserves  for
depreciation, depletion, obsolescence,  amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

Section  3.6.......Reporting  Requirements.  If the  Company  ceases to file its
periodic reports with the Commission,  or if the Commission  ceases making these
periodic  reports  available via the Internet  without charge,  then the Company
shall furnish the following to each Purchaser so long as such Purchaser shall be
obligated  hereunder  to  purchase  the  Securities  or shall  beneficially  own
Securities:

(a)  Quarterly  Reports  filed  with the  Commission  on Form  10-QSB as soon as
practical  after the  document  is filed with the  Commission,  and in any event
within five (5) days after the document is filed with the Commission;

(b) Annual Reports filed with the Commission on Form 10-KSB as soon as practical
after the  document is filed with the  Commission,  and in any event within five
(5) days after the document is filed with the Commission; and

                                      -16-
<PAGE>

(c) Copies of all notices,  information and proxy  statements in connection with
any  meetings,  that are, in each case,  provided to holders of shares of Common
Stock,  contemporaneously  with the delivery of such notices or  information  to
such holders of Common Stock.

Section  3.7.......Other  Agreements.  The  Company  shall  not  enter  into any
agreement  in which the terms of such  agreement  would  restrict  or impair the
right  or  ability  to  perform  of the  Company  or any  Subsidiary  under  any
Transaction Document.

Section  3.8.......Use  of  Proceeds.  The net  proceeds  from  the  sale of the
Securities  shall  be  used by the  Company  for  working  capital  and  general
corporate purposes and not to redeem any Common Stock or securities convertible,
exercisable  or  exchangeable  into  Common  Stock or to settle any  outstanding
litigation.

Section 3.9.......Reporting Status. So long as a Purchaser beneficially owns any
of the  Securities,  the Company  shall  timely file all reports  required to be
filed with the  Commission  pursuant to the Exchange  Act, and the Company shall
not  terminate  its  status  as an issuer  required  to file  reports  under the
Exchange Act even if the Exchange  Act or the rules and  regulations  thereunder
would permit such termination.

Section  3.10......Disclosure  of  Transaction.  The Company shall issue a press
release  describing the material terms of the transactions  contemplated  hereby
(the "Press  Release")  on the day of the Initial  Closing but in no event later
than one hour after the Initial Closing; provided,  however, that if the Initial
Closing  occurs  after 4:00 P.M.  Eastern  Time on any Trading  Day, the Company
shall issue the Press Release no later than 9:00 A.M.  Eastern Time on the first
Trading Day following the Initial Closing Date. The Company shall also file with
the  Commission  a Current  Report on Form 8-K (the "Form 8-K")  describing  the
material  terms  of the  transactions  contemplated  hereby  (and  attaching  as
exhibits  thereto this  Agreement,  the form of Note,  the  Registration  Rights
Agreement,  the Security  Agreement,  the form of each series of Warrant and the
Press Release) as soon as practicable  following the Initial Closing Date but in
no event more than two (2) Trading  Days  following  the Initial  Closing  Date,
which Press Release and Form 8-K shall be subject to prior review and comment by
the Purchasers.  "Trading Day" means any day during which the principal exchange
on which the Common Stock is traded shall be open for trading.

Section  3.11......Disclosure of Material Information. The Company covenants and
agrees that neither it nor any other person acting on its behalf has provided or
will provide any  Purchaser or its agents or counsel with any  information  that
the Company believes constitutes material non-public  information,  unless prior
thereto such  Purchaser  shall have executed a written  agreement  regarding the
confidentiality  and  use of  such  information.  The  Company  understands  and
confirms that each Purchaser  shall be relying on the foregoing  representations
in effecting transactions in securities of the Company.

Section 3.12......Pledge of Securities. The Company acknowledges and agrees that
the  Securities  may be pledged by a Purchaser  in  connection  with a bona fide
margin  agreement or other loan or financing  arrangement that is secured by the
Securities.  The pledge of Securities shall not be deemed to be a transfer, sale
or assignment of the Securities  hereunder,  and no Purchaser effecting a pledge

                                      -17-
<PAGE>

of the  Securities  shall be required  to provide  the  Company  with any notice
thereof or otherwise make any delivery to the Company pursuant to this Agreement
or any other  Transaction  Document;  provided  that a Purchaser and its pledgee
shall be required to comply with the  provisions of Article V hereof in order to
effect a sale,  transfer or assignment  of  Securities  to such pledgee.  At the
Purchasers'  expense,  the Company  hereby  agrees to execute  and deliver  such
documentation  as  a  pledgee  of  the  Securities  may  reasonably  request  in
connection with a pledge of the Securities to such pledgee by a Purchaser.

Section 3.13......Amendments. The Company shall not amend or waive any provision
of the  Certificate  or Bylaws of the  Company in any way that  would  adversely
affect exercise rights, voting rights,  conversion rights,  prepayment rights or
redemption rights of the holder of the Notes.

Section  3.14......Distributions.  So  long  as any  Notes  or  Warrants  remain
outstanding,  the  Company  agrees  that it  shall  not (i)  declare  or pay any
dividends  or make any  distributions  to any  holder(s) of Common Stock or (ii)
purchase or  otherwise  acquire for value,  directly or  indirectly,  any Common
Stock or other equity security of the Company.

Section 3.15......Reservation of Shares. So long as any of the Notes or Warrants
remain outstanding,  the Company shall take all action necessary to at all times
have  authorized  and reserved for the purpose of  issuance,  one hundred  fifty
percent  (150%) of the  aggregate  number of  shares of Common  Stock  needed to
provide for the issuance of the Conversion Shares and the Warrant Shares.

Section   3.16......Transfer   Agent  Instructions.   The  Company  shall  issue
irrevocable  instructions  to its transfer  agent,  and any subsequent  transfer
agent,  to issue  certificates,  registered in the name of each Purchaser or its
respective nominee(s),  for the Conversion Shares and the Warrant Shares in such
amounts as  specified  from time to time by each  Purchaser  to the Company upon
conversion  of the Notes or  exercise  of the  Warrants in the form of Exhibit G
attached  hereto  (the  "Irrevocable  Transfer  Agent  Instructions").  Prior to
registration  of  the  Conversion  Shares  and  the  Warrant  Shares  under  the
Securities  Act,  all  such  certificates  shall  bear  the  restrictive  legend
specified  in  Section  5.1 of this  Agreement.  The  Company  warrants  that no
instruction other than the Irrevocable  Transfer Agent Instructions  referred to
in this Section 3.17 will be given by the Company to its transfer agent and that
the Conversion Shares and Warrant Shares shall otherwise be freely  transferable
on the books and  records of the  Company as and to the extent  provided in this
Agreement and the Registration  Rights  Agreement.  Nothing in this Section 3.16
shall affect in any way each Purchaser's obligations and agreements set forth in
Section 5.1 to comply with all applicable prospectus delivery  requirements,  if
any, upon resale of the Conversion Shares and the Warrant Shares. If a Purchaser
provides the Company with an opinion of counsel, in a generally acceptable form,
to the effect that a public  sale,  assignment  or  transfer  of the  Conversion
Shares or Warrant Shares may be made without  registration  under the Securities
Act or the Purchaser  provides the Company with  reasonable  assurances that the
Conversion Shares or Warrant Shares can be sold pursuant to Rule 144 without any
restriction as to the number of securities acquired as of a particular date that
can then be immediately sold, the Company shall permit the transfer, and, in the
case of the  Conversion  Shares and the Warrant  Shares,  promptly  instruct its
transfer  agent  to  issue  one or more  certificates  in such  name and in such
denominations as specified by such Purchaser and without any restrictive legend.

                                      -18-
<PAGE>

The  Company  acknowledges  that a breach by it of its  obligations  under  this
Section 3.16 will cause  irreparable  harm to the  Purchasers  by vitiating  the
intent and purpose of the  transaction  contemplated  hereby.  Accordingly,  the
Company  acknowledges  that the  remedy at law for a breach  of its  obligations
under this Section 3.16 will be inadequate and agrees,  in the event of a breach
or threatened breach by the Company of the provisions of this Section 3.16, that
the Purchasers shall be entitled,  in addition to all other available  remedies,
to an order and/or  injunction  restraining  any breach and requiring  immediate
issuance  and  transfer,  without the  necessity  of showing  economic  loss and
without any bond or other security being required.

Section   3.17......Disposition   of  Assets.   So  long  as  the  Notes  remain
outstanding,  neither  the Company nor any  subsidiary  shall sell,  transfer or
otherwise dispose of any of its properties, assets and rights including, without
limitation,  its software and  intellectual  property,  to any person except for
sales of  obsolete  assets  and sales to  customers  in the  ordinary  course of
business or with the prior  written  consent of the holders of a majority of the
principal amount of the Notes then outstanding.

Section  3.18......Form SB-2 Eligibility.  The Company currently meets, and will
take all necessary action to continue to meet, the "registrant  eligibility" and
transaction  requirements  set forth in the  general  instructions  to Form SB-2
applicable  to  "resale"  registrations  on Form SB-2  during the  Effectiveness
Period (as defined in the Registration  Rights  Agreement) and the Company shall
file all reports  required to be filed by the Company with the  Commission  in a
timely manner so as to maintain such eligibility for the use of Form SB-2.

Section 3.19......Subsequent Financings.

(a) So long as the Notes remain outstanding, during the period commencing on the
Final  Closing  Date and  ending on the date  that is  twenty-four  (24)  months
following the Final Closing Date,  the Company  covenants and agrees to promptly
notify  (in no event  later  than five (5) days  after  making or  receiving  an
applicable offer) in writing (a "Rights Notice") each Purchaser of the terms and
conditions  of any proposed any proposed  offer or sale to, or exchange with (or
other type of distribution  to) any third party (a "Subsequent  Financing"),  of
Common Stock or any securities  convertible,  exercisable or  exchangeable  into
Common  Stock,   including  convertible  debt  securities   (collectively,   the
"Financing Securities"). The Rights Notice shall describe, in reasonable detail,
the  proposed  Subsequent  Financing,  the names and  investment  amounts of all
investors  participating in the Subsequent Financing,  the proposed closing date
of the  Subsequent  Financing,  which shall be within  thirty (30) calendar days
from the date of the Rights Notice,  and all of the terms and conditions thereof
and  proposed  definitive   documentation  to  be  entered  into  in  connection
therewith. The Rights Notice shall provide each Purchaser an option (the "Rights
Option")  during the fifteen (15) Trading Days following  delivery of the Rights
Notice (the "Option  Period") to inform the Company  whether such Purchaser will
purchase  up to its pro rata  portion  of the  amount  of the  securities  being
offered in such Subsequent  Financing on the same, absolute terms and conditions
as  contemplated  by such  Subsequent  Financing.  Each Purchaser  shall have an
additional  five (5) Trading Days to fund the purchase of the  securities  being
offered in such Subsequent Financing. If any Purchaser elects not to participate

                                      -19-
<PAGE>

in such Subsequent Financing, the other Purchasers may participate on a pro-rata
basis so long as such  participation  in the aggregate does not exceed the total
amount of the Subsequent Financing. For purposes of this Section, all references
to  "pro  rata"  means,  for  any  Purchaser  electing  to  participate  in such
Subsequent  Financing,  the  percentage  obtained by dividing (x) the  principal
amount of the Notes purchased by such Purchaser at each Closing by (y) the total
principal  amount  of all of the  Notes  purchased  by all of the  participating
Purchasers  at  each  Closing.  Delivery  of any  Rights  Notice  constitutes  a
representation  and  warranty  by the Company  that there are no other  material
terms and  conditions,  arrangements,  agreements or otherwise  except for those
disclosed in the Rights Notice, to provide additional  compensation to any party
participating in any proposed Subsequent Financing,  including,  but not limited
to, additional  compensation  based on changes in the Purchase Price or any type
of reset or adjustment of a purchase or conversion  price or to issue additional
securities at any time after the closing date of a Subsequent Financing.  If the
Company  does not  receive  notice of  exercise  of the Rights  Option  from the
Purchasers  within the Option Period,  the Company shall have the right to close
the  Subsequent  Financing  on the  scheduled  closing  date with a third party;
provided  that all of the material  terms and  conditions of the closing are the
same as those provided to the Purchasers in the Rights Notice. If the closing of
the proposed  Subsequent  Financing  does not occur on that date, any closing of
the contemplated Subsequent Financing or any other Subsequent Financing shall be
subject to all of the  provisions of this Section  3.19(a),  including,  without
limitation,  the delivery of a new Rights Notice. The provisions of this Section
3.19(a) shall not apply to issuances of securities in a Permitted  Financing (as
defined below).

(b)  For  purposes  of  this  Agreement,   a  Permitted  Financing  (as  defined
hereinafter)  shall not be  considered  a  Subsequent  Financing.  A  "Permitted
Financing" shall mean (i) securities  issued (other than for cash) in connection
with a merger, acquisition, or consolidation, (ii) securities issued pursuant to
a bona fide firm underwritten public offering of the Company's securities, (iii)
securities  issued  pursuant to the  conversion  or exercise of  convertible  or
exercisable  securities  issued or outstanding on or prior to the date hereof or
issued pursuant to this Agreement and the Notes,  (iv) the Warrant  Shares,  (v)
securities  issued in connection  with bona fide strategic  license  agreements,
partnering  arrangements or other consulting  services so long as such issuances
are not for the  purpose of raising  capital,  (vi) Common  Stock  issued or the
issuance  or grants of options  or  warrants  to  purchase  Common  Stock to any
employer,  officer,  director  or advisor of the Company for a period of two (2)
years following the date of this Agreement so long as the exercise price of such
options or warrants  is greater  than $0.75,  (vii) any  warrants  issued to the
placement  agent and its designees  for the  transactions  contemplated  by this
Agreement,  (viii) the payment of any accrued interest in shares of Common Stock
pursuant to the Notes; and (ix) securities issued to CNET Networks, Inc.

                                   ARTICLE IV

                                   CONDITIONS

Section 4.1.......Conditions Precedent to the Obligation of the Company to Close
and to Sell the Securities. The obligation hereunder of the Company to close and
issue and sell the  Securities  to the  Purchasers at each Closing is subject to
the  satisfaction  or waiver,  at or before each Closing of the  conditions  set
forth below.  These  conditions  are for the  Company's  sole benefit and may be
waived by the Company at any time in its sole discretion.

                                      -20-
<PAGE>

(a)  Accuracy  of  the   Purchasers'   Representations   and   Warranties.   The
representations  and warranties of each  Purchaser  shall be true and correct in
all  material  respects as of the date when made and as of each  Closing Date as
though made at that time,  except for  representations  and warranties  that are
expressly made as of a particular  date,  which shall be true and correct in all
material respects as of such date.

(b)  Performance  by  the  Purchasers.  Each  Purchaser  shall  have  performed,
satisfied and complied in all material  respects with all covenants,  agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by the Purchasers at or prior to each Closing Date.

(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling
or injunction shall have been enacted,  entered,  promulgated or endorsed by any
court or governmental  authority of competent  jurisdiction  which prohibits the
consummation of any of the transactions contemplated by this Agreement.

(d) Delivery of Purchase Price. The Purchase Price for the Securities shall have
been delivered to the Company on each Closing Date.

(e) Delivery of Transaction Documents. The Transaction Documents shall have been
duly executed and delivered by the Purchasers to the Company.

Section  4.2.......Conditions  Precedent to the  Obligation of the Purchasers to
Close and to Purchase the Securities. The obligation hereunder of the Purchasers
to purchase the Securities and consummate the transactions  contemplated by this
Agreement is subject to the  satisfaction or waiver,  at or before each Closing,
of  each  of the  conditions  set  forth  below.  These  conditions  are for the
Purchasers'  sole  benefit  and may be waived by the  Purchasers  at any time in
their sole discretion.

(a)  Accuracy  of the  Company's  Representations  and  Warranties.  Each of the
representations  and  warranties of the Company in this  Agreement and the other
Transaction  Documents shall be true and correct in all material  respects as of
each Closing Date, except for  representations and warranties that speak as of a
particular date, which shall be true and correct in all material  respects as of
such date.

(b) Performance by the Company. The Company shall have performed,  satisfied and
complied in all material respects with all covenants,  agreements and conditions
required by this  Agreement to be  performed,  satisfied or complied with by the
Company at or prior to each Closing Date.

(c) No  Suspension,  Etc.  Trading  in the  Common  Stock  shall  not have  been
suspended by the Commission or the OTC Bulletin Board (except for any suspension
of trading of limited duration agreed to by the Company,  which suspension shall
be  terminated  prior to the  Initial  Closing),  and, at any time prior to each
Closing Date, trading in securities generally as reported by Bloomberg Financial
Markets  ("Bloomberg")  shall not have been  suspended  or  limited,  or minimum
prices shall not have been  established on securities  whose trades are reported
by Bloomberg,  or on the New York Stock Exchange, nor shall a banking moratorium
have been declared either by the United States or New York State authorities.

                                      -21-
<PAGE>

(d) No Injunction. No statute, rule, regulation, executive order, decree, ruling
or injunction shall have been enacted,  entered,  promulgated or endorsed by any
court or governmental  authority of competent  jurisdiction  which prohibits the
consummation of any of the transactions contemplated by this Agreement.

(e) No  Proceedings  or  Litigation.  No action,  suit or proceeding  before any
arbitrator  or any  governmental  authority  shall have been  commenced,  and no
investigation by any governmental authority shall have been threatened,  against
the Company or any Subsidiary,  or any of the officers,  directors or affiliates
of the  Company or any  Subsidiary  seeking to  restrain,  prevent or change the
transactions  contemplated by this  Agreement,  or seeking damages in connection
with such transactions.

(f) Opinion of Counsel. The Purchasers shall have received an opinion of counsel
to the Company,  dated the date of each  Closing,  substantially  in the form of
Exhibit H hereto,  with such  exceptions and  limitations as shall be reasonably
acceptable to counsel to the Purchasers.

(g) Notes and  Warrants.  At or prior to each  Closing,  the Company  shall have
delivered to the Purchasers the Notes (in such  denominations  as each Purchaser
may  request)  and the Warrants (in such  denominations  as each  Purchaser  may
request).

(h) Secretary's Certificate.  The Company shall have delivered to the Purchasers
a  secretary's  certificate,  dated  as of  each  Closing  Date,  as to (i)  the
resolutions  adopted  by the  Board  of  Directors  approving  the  transactions
contemplated  hereby, (ii) the Certificate,  (iii) the Bylaws, each as in effect
at the Closing,  and (iv) the  authority  and  incumbency of the officers of the
Company executing the Transaction  Documents and any other documents required to
be executed or delivered in connection therewith.

(i)  Officer's  Certificate.  On each  Closing  Date,  the  Company  shall  have
delivered to the  Purchasers  a  certificate  signed by an executive  officer on
behalf of the Company, dated as of each Closing Date, confirming the accuracy of
the Company's  representations,  warranties and covenants as of the Closing Date
and confirming  the compliance by the Company with the conditions  precedent set
forth in paragraphs  (b)-(e) and (l) of this Section 4.2 as of each Closing Date
(provided  that,  with respect to the matters in paragraphs  (d) and (e) of this
Section 4.2, such confirmation  shall be based on the knowledge of the executive
officer after due inquiry).

(j) Registration  Rights Agreement.  As of the Initial Closing Date, the Company
shall have  executed and  delivered the  Registration  Rights  Agreement to each
Purchaser.

(k) Security  Agreement.  As of the Initial Closing Date, the Company shall have
executed and delivered the Security Agreement to each Purchaser.

(l) UCC Financing Statements.  As of the Initial Closing Date, the Company shall
have filed all UCC financing  statements in form and substance  satisfactory  to
the  Purchasers  at the  appropriate  offices  to create a valid  and  perfected
security interest in the Collateral (as defined in the Security Agreement).

                                      -22-
<PAGE>

(m) Material  Adverse Effect.  No Material Adverse Effect shall have occurred at
or before each Closing Date.

(n) Transfer Agent Instructions. As of the Initial Closing Date, the Irrevocable
Transfer Agent  Instructions,  in the form of Exhibit G attached  hereto,  shall
have been delivered to the Company's transfer agent.

(o) Asia Pacific  Ventures.  All UCC financing  statements  listing Asia Pacific
Ventures as a secured party and the Company as debtor shall have been terminated
on or before the Initial Closing Date.

(p)  Registration  Statement  Filed.  With  respect to the Second  Closing,  the
Registration Statement shall have been filed with the Commission.

(q) Effective  Registration  Statement.  With respect to the Final Closing,  the
Registration Statement shall have been declared effective by the Commission.

                                   ARTICLE V
                               CERTIFICATE LEGEND

Section 5.1.......Legend.  Each certificate representing the Securities shall be
stamped or otherwise imprinted with a legend substantially in the following form
(in addition to any legend required by applicable state securities or "blue sky"
laws):
         THE SECURITIES  REPRESENTED BY THIS CERTIFICATE (THE "SECURITIES") HAVE
         NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
         "SECURITIES  ACT") OR ANY  STATE  SECURITIES  LAWS AND MAY NOT BE SOLD,
         TRANSFERRED  OR  OTHERWISE  DISPOSED  OF  UNLESS  REGISTERED  UNDER THE
         SECURITIES  ACT  AND  UNDER   APPLICABLE   STATE   SECURITIES  LAWS  OR
         FINANCIALCONTENT,  INC.  SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT
         REGISTRATION OF SUCH SECURITIES  UNDER THE SECURITIES ACT AND UNDER THE
         PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

         The Company agrees to issue or reissue certificates representing any of
the Conversion Shares and the Warrant Shares, without the legend set forth above
if at such time,  prior to making any transfer of any such Conversion  Shares or
Warrant  Shares,  such holder  thereof shall give written  notice to the Company
describing  the manner and terms of such transfer and removal as the Company may
reasonably  request.  Such  proposed  transfer  and removal will not be effected
until: (a) either (i) the Company has received an opinion of counsel  reasonably
satisfactory  to the  Company,  to  the  effect  that  the  registration  of the
Conversion  Shares or Warrant Shares under the Securities Act is not required in
connection with such proposed transfer,  (ii) a registration statement under the

                                      -23-
<PAGE>

Securities Act covering such proposed  disposition has been filed by the Company
with the Commission and has become effective under the Securities Act, (iii) the
Company has received other evidence reasonably  satisfactory to the Company that
such  registration  and  qualification   under  the  Securities  Act  and  state
securities  laws are not required,  or (iv) the holder provides the Company with
reasonable  assurances that such security can be sold pursuant to Rule 144 under
the  Securities  Act;  and (b) either (i) the Company has received an opinion of
counsel reasonably  satisfactory to the Company, to the effect that registration
or  qualification  under the  securities  or "blue sky" laws of any state is not
required in connection  with such proposed  disposition,  (ii)  compliance  with
applicable state  securities or "blue sky" laws has been effected,  or (iii) the
holder  provides the Company with  reasonable  assurances that a valid exemption
exists with respect thereto.  The Company will respond to any such notice from a
holder  within three (3)  business  days.  In the case of any proposed  transfer
under this Section 5.1, the Company will use  reasonable  efforts to comply with
any such applicable  state  securities or "blue sky" laws, but shall in no event
be  required,  (x) to qualify to do  business  in any state where it is not then
qualified, (y) to take any action that would subject it to tax or to the general
service of process in any state where it is not then  subject,  or (z) to comply
with state securities or "blue sky" laws of any state for which  registration by
coordination  is  unavailable  to the  Company.  The  restrictions  on  transfer
contained  in this  Section  5.1  shall  be in  addition  to,  and not by way of
limitation of, any other restrictions on transfer contained in any other section
of this Agreement.  Whenever a certificate representing the Conversion Shares or
Warrant Shares is required to be issued to a Purchaser without a legend, in lieu
of  delivering  physical  certificates  representing  the  Conversion  Shares or
Warrant Shares,  provided the Company's  transfer agent is  participating in the
Depository Trust Company ("DTC") Fast Automated Securities Transfer program, the
Company  shall use its  reasonable  best efforts to cause its transfer  agent to
electronically  transmit the Conversion  Shares or Warrant Shares to a Purchaser
by crediting the account of such  Purchaser's  Prime Broker with DTC through its
Deposit  Withdrawal  Agent  Commission   ("DWAC")  system  (to  the  extent  not
inconsistent with any provisions of this Agreement).

ARTICLE VI........

                                 INDEMNIFICATION

Section  6.1.......General  Indemnity.  The Company agrees to indemnify and hold
harmless the Purchasers (and their respective directors,  officers,  affiliates,
agents,   successors   and  assigns)  from  and  against  any  and  all  losses,
liabilities,  deficiencies,  costs,  damages and  expenses  (including,  without
limitation,  reasonable attorneys' fees, charges and disbursements)  incurred by
the   Purchasers   as  a  result  of  any   inaccuracy   in  or  breach  of  the
representations,  warranties  or  covenants  made by the  Company  herein.  Each
Purchaser  severally  but not jointly  agrees to indemnify and hold harmless the
Company and its directors,  officers, affiliates, agents, successors and assigns
from and against any and all losses, liabilities,  deficiencies,  costs, damages
and expenses (including, without limitation, reasonable attorneys' fees, charges
and  disbursements)  incurred by the Company as result of any  inaccuracy  in or
breach of the  representations,  warranties or covenants  made by such Purchaser
herein.  The  maximum  aggregate  liability  of each  Purchaser  pursuant to its
indemnification  obligations  under this Article VI shall not exceed the portion
of the Purchase Price paid by such Purchaser hereunder.

                                      -24-
<PAGE>

Section    6.2.......Indemnification    Procedure.   Any   party   entitled   to
indemnification under this Article VI (an "indemnified party") will give written
notice  to the  indemnifying  party of any  matter  giving  rise to a claim  for
indemnification;   provided,   that  the  failure  of  any  party   entitled  to
indemnification  hereunder  to give notice as provided  herein shall not relieve
the  indemnifying  party of its obligations  under this Article VI except to the
extent that the  indemnifying  party is actually  prejudiced  by such failure to
give notice. In case any such action,  proceeding or claim is brought against an
indemnified party in respect of which  indemnification is sought hereunder,  the
indemnifying  party  shall be  entitled  to  participate  in and,  unless in the
reasonable  judgment of the indemnifying party a conflict of interest between it
and the  indemnified  party exists with respect to such  action,  proceeding  or
claim  (in  which  case the  indemnifying  party  shall be  responsible  for the
reasonable  fees  and  expenses  of one  separate  counsel  for the  indemnified
parties), to assume the defense thereof with counsel reasonably  satisfactory to
the  indemnified  party.  In the event that the  indemnifying  party  advises an
indemnified  party  that it will not  contest  such a claim for  indemnification
hereunder,  or fails,  within thirty (30) days of receipt of any indemnification
notice to notify, in writing,  such person of its election to defend,  settle or
compromise,  at its sole cost and expense,  any action,  proceeding or claim (or
discontinues its defense at any time after it commences such defense),  then the
indemnified party may, at its option,  defend, settle or otherwise compromise or
pay such action or claim. In any event,  unless and until the indemnifying party
elects in writing to assume  and does so assume the  defense of any such  claim,
proceeding or action, the indemnified  party's costs and expenses arising out of
the defense,  settlement or  compromise of any such action,  claim or proceeding
shall be losses subject to  indemnification  hereunder.  The  indemnified  party
shall  cooperate  fully  with  the  indemnifying  party in  connection  with any
negotiation or defense of any such action or claim by the indemnifying party and
shall furnish to the indemnifying party all information  reasonably available to
the indemnified  party which relates to such action or claim.  The  indemnifying
party shall keep the  indemnified  party  fully  apprised at all times as to the
status of the defense or any settlement  negotiations  with respect thereto.  If
the  indemnifying  party  elects to defend  any such  action or claim,  then the
indemnified  party shall be entitled to participate in such defense with counsel
of its choice at its sole cost and expense.  The indemnifying party shall not be
liable for any settlement of any action,  claim or proceeding  effected  without
its prior written  consent.  Notwithstanding  anything in this Article VI to the
contrary,  the  indemnifying  party shall not,  without the indemnified  party's
prior written consent, settle or compromise any claim or consent to entry of any
judgment  in  respect  thereof  which  imposes  any  future  obligation  on  the
indemnified party or which does not include,  as an unconditional  term thereof,
the  giving by the  claimant  or the  plaintiff  to the  indemnified  party of a
release  from all  liability  in  respect  of such  claim.  The  indemnification
obligations to defend the indemnified party required by this Article VI shall be
made  by  periodic   payments  of  the  amount  thereof  during  the  course  of
investigation  or defense,  as and when bills are  received  or  expense,  loss,
damage or liability is incurred,  so long as the indemnified  party shall refund
such moneys if it is ultimately determined by a court of competent  jurisdiction
that such party was not entitled to  indemnification.  The indemnity  agreements
contained  herein  shall be in  addition  to (a) any cause of action or  similar
rights of the indemnified  party against the indemnifying  party or others,  and
(b) any  liabilities  the  indemnifying  party may be subject to pursuant to the
law. No indemnifying  party will be liable to the  indemnified  party under this

                                      -25-
<PAGE>

Agreement to the extent,  but only to the extent that a loss,  claim,  damage or
liability  is  attributable  to the  indemnified  party's  breach  of any of the
representations, warranties or covenants made by such party in this Agreement or
in the other Transaction Documents.

ARTICLE VII.......

                                  MISCELLANEOUS

Section 7.1.......Fees and Expenses.  Each party shall pay the fees and expenses
of its advisors,  counsel,  accountants and other experts, if any, and all other
expenses,  incurred  by such party  incident  to the  negotiation,  preparation,
execution,  delivery and performance of this Agreement;  provided, however, that
the  Company  shall  pay all  actual  attorneys'  fees and  expenses  (including
disbursements  and  out-of-pocket   expenses)  incurred  by  the  Purchasers  in
connection with (i) the preparation,  negotiation, execution and delivery of the
Transaction  Documents  and  the  transactions  contemplated  thereunder,  which
payment shall be made at the Initial  Closing and shall not exceed $25,000 (plus
disbursements and out-of-pocket  expenses),  of which $5,000 has been paid prior
to the Initial Closing Date, and (ii) any amendments,  modifications  or waivers
of this Agreement or any of the other Transaction  Documents.  In addition,  the
Company shall pay all reasonable fees and expenses incurred by the Purchasers in
connection  with  the  enforcement  of  this  Agreement  or  any  of  the  other
Transaction Documents,  including, without limitation, all reasonable attorneys'
fees and expenses.

Section 7.2.......Specific Performance; Consent to Jurisdiction; Venue.
                  ----------------------------------------------------

(a) The Company and the Purchasers acknowledge and agree that irreparable damage
would occur in the event that any of the  provisions  of this  Agreement  or the
other Transaction Documents were not performed in accordance with their specific
terms or were  otherwise  breached.  It is  accordingly  agreed that the parties
shall be entitled to an injunction or injunctions to prevent or cure breaches of
the  provisions  of this  Agreement or the other  Transaction  Documents  and to
enforce  specifically the terms and provisions hereof or thereof,  this being in
addition  to any other  remedy to which  any of them may be  entitled  by law or
equity.

(b) The parties agree that venue for any dispute  arising  under this  Agreement
will lie  exclusively in the state or federal courts located in New York County,
New  York,  and the  parties  irrevocably  waive  any  right to raise  forum non
conveniens  or any other  argument  that New York is not the proper  venue.  The
parties  irrevocably  consent to personal  jurisdiction in the state and federal
courts of the state of New York.  The  Company  and each  Purchaser  consent  to
process  being served in any such suit,  action or  proceeding by mailing a copy
thereof  to such party at the  address  in effect  for  notices to it under this
Agreement  and agrees that such service  shall  constitute  good and  sufficient
service of process and notice thereof.  Nothing in this Section 7.2 shall affect
or limit any right to serve  process in any other  manner  permitted by law. The
Company and the Purchasers  hereby agree that the prevailing  party in any suit,
action  or  proceeding  arising  out  of or  relating  to the  Securities,  this
Agreement or the other Transaction Documents, shall be entitled to reimbursement
for  reasonable  legal fees from the  non-prevailing  party.  The parties hereby
waive all rights to a trial by jury.

Section   7.3.......Entire   Agreement;   Amendment.   This  Agreement  and  the
Transaction  Documents  contain the entire  understanding  and  agreement of the

                                      -26-
<PAGE>

parties with respect to the matters  covered hereby and,  except as specifically
set forth herein or in the other Transaction Documents,  neither the Company nor
any Purchaser make any  representation,  warranty,  covenant or undertaking with
respect  to such  matters,  and they  supersede  all  prior  understandings  and
agreements with respect to said subject matter,  all of which are merged herein.
No provision of this  Agreement may be waived or amended other than by a written
instrument signed by the Company and the Purchasers  holding at least a majority
of the principal amount of the Notes then held by the Purchasers.  Any amendment
or waiver  effected in  accordance  with this  Section 7.3 shall be binding upon
each Purchaser (and their permitted assigns) and the Company.

Section  7.4.......Notices.   Any  notice,  demand,  request,  waiver  or  other
communication  required or permitted to be given  hereunder  shall be in writing
and shall be  effective  (a) upon hand  delivery by telecopy or facsimile at the
address or number designated below (if delivered on a business day during normal
business  hours where such notice is to be received),  or the first business day
following such delivery (if delivered other than on a business day during normal
business  hours  where  such  notice  is to be  received)  or (b) on the  second
business day following  the date of mailing by express  courier  service,  fully
prepaid,  addressed to such  address,  or upon actual  receipt of such  mailing,
whichever shall first occur. The addresses for such communications shall be:

If to the Company:                  FinancialContent, Inc.
                                    400 Oyster Point Boulevard, Suite 435
                                    So.   San   Francisco,    California   94080
                                    Attention: Chief Executive Officer
                                    Tel.  No.:  (650)  837-9850  Fax No.:  (650)
                                    745-2677

with copies (which copies
shall not constitute notice)
to:                                 Dave Neville, Esq.

                                    Tel. No.:
                                    Fax No.:

If                                  to any  Purchaser:  At the  address  of such
                                    Purchaser  set  forth on  Exhibit  A to this
                                    Agreement,   with   copies  to   Purchaser's
                                    counsel  as set  forth  on  Exhibit  A or as
                                    specified in writing by such  Purchaser with
                                    copies to:

                                    Kramer Levin Naftalis & Frankel LLP
                                    1177 Avenue of the Americas
                                    New York, New York 10036
                                    Attention: Christopher S. Auguste
                                    Tel. No.: (212) 715-9100
                                    Fax No.: (212) 715-8000

                                      -27-
<PAGE>

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

Section 7.5.......Waivers. No waiver by either party of any default with respect
to any provision,  condition or requirement of this Agreement shall be deemed to
be a  continuing  waiver  in the  future  or a waiver  of any  other  provision,
condition or requirement hereof, nor shall any delay or omission of any party to
exercise any right hereunder in any manner impair the exercise of any such right
accruing  to it  thereafter.  No  consideration  shall be offered or paid to any
Purchaser to amend or consent to a waiver or  modification  of any  provision of
any of the Transaction  Documents unless the same  consideration is also offered
to all of the parties to the Transaction Documents. This provision constitutes a
separate right granted to each Purchaser by the Company and shall not in any way
be construed as the  Purchasers  acting in concert or as a group with respect to
the purchase, disposition or voting of Securities or otherwise.

Section 7.6  Headings.  The  article,  section and  subsection  headings in this
Agreement  are for  convenience  only and  shall not  constitute  a part of this
Agreement  for any other  purpose and shall not be deemed to limit or affect any
of the provisions hereof.

Section 7.7  Successors and Assigns.  This  Agreement  shall be binding upon and
inure to the benefit of the parties and their successors and assigns.  After the
Closing,  the  assignment by a party to this  Agreement of any rights  hereunder
shall not affect the obligations of such party under this Agreement.  Subject to
Section 5.1 hereof,  the  Purchasers  may assign the  Securities  and its rights
under this  Agreement and the other  Transaction  Documents and any other rights
hereto and thereto without the consent of the Company.

Section 7.8 No Third Party  Beneficiaries.  This  Agreement  is intended for the
benefit of the parties  hereto and their  respective  permitted  successors  and
assigns and is not for the benefit of, nor may any provision  hereof be enforced
by, any other person.

Section 7.9 Governing Law. This Agreement  shall be governed by and construed in
accordance  with the  internal  laws of the  State of New York,  without  giving
effect to any of the  conflicts  of law  principles  which  would  result in the
application of the substantive law of another jurisdiction. This Agreement shall
not be interpreted or construed with any  presumption  against the party causing
this Agreement to be drafted.

Section 7.10 Survival. The representations and warranties of the Company and the
Purchasers shall survive the execution and delivery hereof and the Closing until
the second  anniversary of the Closing Date, except the agreements and covenants
set forth in Articles I, III, V, VI and VII of this Agreement  shall survive the
execution and delivery hereof and the Closing hereunder.

Section  7.11  Counterparts.  This  Agreement  may be  executed in any number of
counterparts,  all of which taken  together  shall  constitute  one and the same
instrument and shall become effective when counterparts have been signed by each
party and delivered to the other parties  hereto,  it being  understood that all
parties need not sign the same counterpart.

Section 7.12 Publicity.  The Company agrees that it will not disclose,  and will
not include in any public announcement,  the names of the Purchasers without the
consent of the Purchasers,  which consent shall not be unreasonably  withheld or

                                      -28-
<PAGE>

delayed,  or unless  and until  such  disclosure  is  required  by law,  rule or
applicable  regulation,  including without limitation any disclosure pursuant to
the Registration Statement, and then only to the extent of such requirement.
Section 7.13  Severability.  The provisions of this Agreement are severable and,
in the event that any court of competent  jurisdiction  shall determine that any
one or  more of the  provisions  or part  of the  provisions  contained  in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other  provision or part of a provision of this Agreement and this Agreement
shall be reformed and  construed as if such invalid or illegal or  unenforceable
provision,  or part of such provision,  had never been contained herein, so that
such  provisions  would be valid,  legal and  enforceable  to the maximum extent
possible.

Section 7.14 Further Assurances. From and after the date of this Agreement, upon
the request of the  Purchasers  or the Company,  the Company and each  Purchaser
shall execute and deliver such instruments,  documents and other writings as may
be reasonably  necessary or desirable to confirm and carry out and to effectuate
fully the  intent  and  purposes  of this  Agreement  and the other  Transaction
Documents.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -29-
<PAGE>

         IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this Note and
Warrant Purchase  Agreement to be duly executed by their  respective  authorized
officers as of the date first above written.

                             FINANCIALCONTENT, INC.

                             By: /S/ Wing Yu
                             ---------------
                             Name:  Wing Yu
                             Title: Chief Executive Officer

PURCHASER:

                             By: /S/ David Propis
                             --------------------
                             Name:  David Propis
                             Title:    Manager, Jade Special Strategy

                                      -30-
<PAGE>

                                  SCHEDULE 2.1

                                      -31-
<PAGE>

                     ATTACHMENT TO NOTE AND WARRANT PURCHASE
                                    AGREEMENT

Schedule 2.1

c.       900,000,000  authorized shares of common stock  200,000,000  authorized
         shares of preferred stock

         Shares of our series A, B & C preferred stock have registration rights

         2004  Employee  Stock Option Plan has 2,700,000  authorized  Warrant to
         purchase  1,400,000  shares of our  common  stock at $1.30  Warrant  to
         purchase 380,000 share of our common stock at $0.75

f.       Forms required to be filed under section 16 of the Securities  Exchange
         Act of 1934 have not been timely file and or are delinquent

         The company is  responding to comments by the SEC to its form 10KSB for
the period  ending June 30, 2005 under which the SEC alleges the filing does not
fully  comply with  Regulation  S-B and FASB.  Based upon the SEC  comments  the
company will be restating  its  financials  for the year ended June 30, 2004 and
2005, and possibly the quarterly reports issued during such periods,  to reflect
the  ...beneficial  conversion  feature  of its  Series A, B, and C  convertible
preferred stock issuances not previously reflected is such filings.

         Form D's under regulation D have not been filed

g.       FinancialContent Services, Inc.
         Licensed Delaware Corporation
         Licensed California foreign corporation

         StreetIQ.com, Inc.
         Licensed Delaware Corporation

         iTrack, Inc.
         inactive

         MB Technologies, Inc.
         inactive

         KingFine, Inc.
         inactive

         BuckInvestor.com, Inc.
         Inactive

                                      -32-
<PAGE>

i.       The Company indebted to Asia Pacific Ventures, an affiliated entity, in
         the amount $237,642 inclusive of interest as of 12/31/05.

     Company owes dividend  payments to CNET Networks,  Inc. in the  approximate
amount of $63,391.00.

k.       The Company indebted to Asia Pacific Ventures, an affiliated entity, in
         the amount $237,642 inclusive of interest as of 12/31/05.

l.       Two UCC-1  Financing  Statement filed June 12, 2002, and June 11, 2002.
         Secured party is Asia Pacific Ventures

m.       On November 7, 2005, we received a letter from an attorney representing
         a former  consultant to the Company demanding payment of 300,667 shares
         of our common  stock based upon  alleged  services  provided  under the
         terms of a contract  entered  into  between  the  parties.  The Company
         disputes  that any  number of shares  are due to this  consultant.  The
         contract was  terminated  and no services  ever  provided.  We have not
         recorded a reserve on this  matter  because we believe  the claim to be
         without merit and accordingly believe any outcome will not result in an
         adverse judgment against the Company.

         On May 21, 2002,  we issued a warrant to purchase  450,000  registrable
         shares of our common stock to a firm  pursuant to a Services  Agreement
         of the same date,  which  services we allege were never  delivered  nor
         forthcoming. Accordingly, we cancelled this warrant in 2002. The shares
         underlying the warrant have demand  registration  rights. In 2004, this
         firm  attempted to exercise the warrant,  which we have no intention of
         honoring.  The firm has threatened litigation to compel us to honor the
         warrant. We do not record this warrant as outstanding,  and we have not
         recorded a reserve in regards  to this  matter  because we believe  the
         outcome  will not result in an adverse  judgment  against the  Company.
         Since  receiving  an  initial  letter  from  an  attorney  representing
         Willow-Cove  in November of 2003  threatening to enforce the warrant by
         way of litigation, we have received no renewed threats of litigation by
         Willow-Cove  or  its  attorneys,  though  Willow-Cove  did  attempt  to
         exercise the warrant in full which we did not honor.

o.       The Company has unpaid  payroll tax payable to the Canadian  government
         from discontinued  operations in the amount of approximately  $117,509,
         plus accrued interest from 12/31/02.

r.       Swift,  Inc.  has  objected  to our use of the mark  "swiftir".  We are
         currently negotiating a compromise of our use of said mark.

y.       i. The  Company's  director's  approved the issuance of warrants to its
         advisors

ff.      American Stock Transfer & Trust Company
         59 Maiden Lane
         Plaza Level

                                      -33-
<PAGE>

         New York, NY 10038
         Isaac Kagan
         Tel: (718) 921-8293
         Fax; (718) 921-8334

                                      -34-
<PAGE>

                                    EXHIBIT A
                               LIST OF PURCHASERS

Names and Addresses                              Investment Amount and Number of
of Purchasers                                    Warrants Purchased

                                      -35-
<PAGE>

                                    EXHIBIT B
                                  FORM OF NOTE

                                      -36-
<PAGE>

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

                             FINANCIALCONTENT, INC.

                   Senior Secured Convertible Promissory Note
                              due February 13, 2008

No. CN-06-__                                                     $___________
Dated: February 13, 2006

For  value  received,  FinancialContent,   Inc.,  a  Delaware  corporation  (the
"Maker"),  hereby  promises  to  pay  to the  order  of  _______________________
(together  with its  successors,  representatives,  and permitted  assigns,  the
"Holder"),  in accordance  with the terms  hereinafter  provided,  the principal
amount of  ________________________  ($______________),  together  with interest
thereon.  Concurrently  with the  issuance  of this  Note,  the Maker is issuing
separate convertible promissory notes (the "Other Notes") to separate purchasers
(the "Other Holders")  pursuant to the Purchase Agreement (as defined in Section
1.1 hereof).

All  payments  under or  pursuant  to this Note  shall be made in United  States
Dollars  in  immediately  available  funds to the  Holder at the  address of the
Holder first set forth above or at such other place as the Holder may  designate
from time to time in  writing to the Maker or by wire  transfer  of funds to the
Holder's  account,  instructions for which are attached hereto as Exhibit A. The
outstanding  principal balance of this Note shall be due and payable on February
13, 2008 (the "Maturity Date") or at such earlier time as provided herein.

                                   ARTICLE I

Section  1.1  Purchase  Agreement.  This Note has been  executed  and  delivered
pursuant to the Note and Warrant  Purchase  Agreement  dated as of February  13,
2006 (the "Purchase Agreement") by and among the Maker and the purchasers listed
therein.  Capitalized terms used and not otherwise defined herein shall have the
meanings set forth for such terms in the Purchase Agreement.

Section 1.2       Interest.

                                      -37-
<PAGE>

(a)  Beginning  on the issuance  date of this Note (the  "Issuance  Date"),  the
outstanding principal balance of this Note shall bear interest, in arrears, at a
rate per annum equal to nine percent (9%),  payable monthly  commencing on March
1, 2006 and on the first business day of each  following  month at the option of
the Maker in (A) cash or (B)  registered  shares of the  Maker's  common  stock,
$0.001 par value per share (the "Common  Stock");  provided that commencing with
the first month following the month that the Registration  Statement is declared
effective,  interest  shall be paid on the last business day of each month.  The
Maker  shall  provide  irrevocable  written  notice to the Holder of the form of
interest payment at least ten (10) days prior to an interest payment date. If no
such  notice is  provided  at least ten (10) days prior to an  interest  payment
date, the Maker must make the interest  payment in cash. In addition,  the Maker
must make interest payments in cash if it is unable to make interest payments in
registered shares of Common Stock.  Notwithstanding the foregoing,  the interest
payment for the three (3) months following the Issuance Date shall be payable in
cash on the Issuance  Date. The number of shares of Common Stock to be issued as
payment of accrued and unpaid  interest  shall be determined by dividing (a) the
total amount of accrued and unpaid interest to be converted into Common Stock by
(b) the lesser of (i) the  Conversion  Price (as  defined in Section 3.2 hereof)
and (ii) the  average of the  Closing  Bid Price (as  defined in Section  1.2(b)
below) for the ten (10) Trading Days immediately  preceding the interest payment
date.  Interest  shall be computed on the basis of a 360-day year of twelve (12)
30-day  months and shall accrue  commencing on the Issuance  Date.  Furthermore,
upon the  occurrence  of an Event of Default (as defined in Section 2.1 hereof),
then to the extent  permitted by law, the Maker will pay interest to the Holder,
payable on demand,  on the  outstanding  principal  balance of the Note from the
date of the Event of Default until such Event of Default is cured at the rate of
the lesser of fifteen  percent (15%) and the maximum  applicable  legal rate per
annum.

(b) The term "Closing Bid Price" shall mean, on any particular date (i) the last
closing bid price per share of the Common Stock on such date on the OTC Bulletin
Board or another registered national stock exchange on which the Common Stock is
then  listed,  or if there is no such price on such date,  then the last closing
bid price on such  exchange or quotation  system on the date  nearest  preceding
such date,  or (ii) if the Common  Stock is not listed then on the OTC  Bulletin
Board or any registered  national stock  exchange,  the last trading price for a
share of Common  Stock in the  over-the-counter  market,  as reported by the OTC
Bulletin  Board or in the  National  Quotation  Bureau  Incorporated  or similar
organization or agency  succeeding to its functions of reporting  prices) at the
close  of  business  on such  date,  or (iii)  if the  Common  Stock is not then
reported by the OTC Bulletin Board or the National Quotation Bureau Incorporated
(or similar  organization  or agency  succeeding  to its  functions of reporting
prices), then the average of the "Pink Sheet" quotes for the relevant conversion
period,  as determined in good faith by the Holder,  or (iv) if the Common Stock
is not then publicly  traded the fair market value of a share of Common Stock as
determined by the Holder and reasonably acceptable to the Maker.

Section 1.3 Security  Agreement.  The  obligations  of the Maker  hereunder  are
secured  by a  continuing  security  interest  in all of the assets of the Maker
pursuant to the terms of a security  agreement  dated as of February 13, 2006 by
and among the Maker,  on the one hand, and the Holder and the Other Holders,  on
the other hand.

                                      -38-
<PAGE>

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

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

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

                                   ARTICLE II

                           EVENTS OF DEFAULT; REMEDIES

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

(a) the Maker shall fail to make any principal or interest  payments on the date
such  payments  are due and such  default is not fully  cured  within  three (3)
business days after the occurrence thereof; or

(b) the failure of the  Registration  Statement to be declared  effective by the
Securities and Exchange  Commission on or prior to the date which is two hundred
ten (210) days after the Issuance Date; or

(c) the suspension from listing,  without  subsequent  listing on any one of, or
the failure of the Common Stock to be listed on at least one of the OTC Bulletin
Board,  the American Stock  Exchange,  the Nasdaq  National  Market,  the Nasdaq
SmallCap Market or The New York Stock  Exchange,  Inc. for a period of seven (7)
consecutive Trading Days; or

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

(e) the Maker shall fail to (i) timely  deliver the shares of Common  Stock upon
conversion  of the  Note or any  interest  accrued  and  unpaid,  (ii)  file the
Registration  Statement in accordance with the terms of the Registration  Rights
Agreement or (iii) make the payment of any fees and/or liquidated  damages under
this Note, the Purchase  Agreement or the Registration  Rights Agreement,  which
failure  in the  case of  items  (i) and  (iii) of this  Section  2.1(e)  is not
remedied within four (4) business days after the incurrence  thereof and, solely
with respect to item (iii) above,  after the Holder  delivers  written notice to
the Maker of the incurrence thereof; or

                                      -39-
<PAGE>

(f) while the  Registration  Statement  is required to be  maintained  effective
pursuant to the terms of the Registration Rights Agreement, the effectiveness of
the Registration Statement lapses for any reason (including, without limitation,
the  issuance of a stop order) or is  unavailable  to the Holder for sale of the
Registrable  Securities  (as defined in the  Registration  Rights  Agreement) in
accordance with the terms of the Registration  Rights Agreement,  and such lapse
or unavailability  continues for a period of ten (10) consecutive  Trading Days,
provided that the Maker has not exercised its rights pursuant to Section 3(n) of
the Registration Rights Agreement; or

(g) default shall be made in the  performance  or observance of (i) any material
covenant, condition or agreement contained in this Note (other than as set forth
in clause (f) of this  Section  2.1) and such  default is not fully cured within
five (5) business days after the Holder delivers  written notice to the Maker of
the  occurrence  thereof or (ii) any material  covenant,  condition or agreement
contained in the Purchase  Agreement,  the Other Notes, the Registration  Rights
Agreement or any other  Transaction  Document  which is not covered by any other
provisions  of this  Section 2.1 and such default is not fully cured within five
(5) business days after the Holder  delivers  written notice to the Maker of the
occurrence thereof; or

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

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

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

                                      -40-
<PAGE>

press  release  regarding  same,  or (vii) take any action under the laws of any
jurisdiction (foreign or domestic) analogous to any of the foregoing; or

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

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

(m) the failure of the Maker to pay any amounts due to the Holder  herein or any
other  Transaction  Document  within  five (5)  business  days of the date  such
payments  are due and such  default is not fully cured  within two (2)  business
days after the Holder  delivers  written  notice to the Maker of the  occurrence
thereof; or

(n) the occurrence of an Event of Default under the Other Notes.

Section 2.2 Remedies Upon An Event of Default. If an Event of Default shall have
occurred and shall be continuing, the Holder of this Note may at any time at its
option,  (a) declare the entire unpaid principal balance of this Note,  together
with all interest accrued hereon, due and payable, and thereupon, the same shall
be accelerated and so due and payable, without presentment,  demand, protest, or
notice, all of which are hereby expressly unconditionally and irrevocably waived
by the Maker; provided, however, that upon the occurrence of an Event of Default
described in (i) Sections 2.1 (j) or (k), the outstanding  principal balance and
accrued  interest  hereunder  shall be  automatically  due and  payable and (ii)
Sections 2.1 (b)-(i), demand the prepayment of this Note pursuant to Section 3.7
hereof,  (b) demand that the principal  amount of this Note then outstanding and
all accrued and unpaid interest thereon shall be converted into shares of Common
Stock at a Conversion Price per share calculated  pursuant to Section 3.1 hereof
assuming that the date that the Event of Default occurs is the  Conversion  Date
(as defined in Section 3.1 hereof), or (c) exercise or otherwise enforce any one
or more of the Holder's rights, powers, privileges, remedies and interests under
this  Note,  the  Purchase  Agreement,  the  Registration  Rights  Agreement  or
applicable  law. No course of delay on the part of the Holder shall operate as a

                                      -41-
<PAGE>

waiver  thereof  or  otherwise  prejudice  the  right of the  Holder.  No remedy
conferred  hereby shall be  exclusive of any other remedy  referred to herein or
now or hereafter available at law, in equity, by statute or otherwise.

                                  ARTICLE III

                      CONVERSION; ANTIDILUTION; PREPAYMENT

Section 3.1       Conversion Option.

(a) At any time on or after the Issuance  Date,  this Note shall be  convertible
(in whole or in part),  at the option of the Holder (the  "Conversion  Option"),
into such number of fully paid and  non-assessable  shares of Common  Stock (the
"Conversion  Rate")  as is  determined  by  dividing  (x)  that  portion  of the
outstanding  principal  balance plus any accrued but unpaid  interest under this
Note as of such date that the Holder  elects to  convert  by (y) the  Conversion
Price (as defined in Section  3.2(a) hereof) then in effect on the date on which
the  Holder  faxes a  notice  of  conversion  (the  "Conversion  Notice"),  duly
executed, to the Maker (facsimile number (650) 745-2677,  Attn.: Chief Executive
Officer)  (the  "Voluntary  Conversion  Date"),  provided,   however,  that  the
Conversion  Price shall be subject to adjustment as described in Sections 3.2(b)
and 3.6 below.  The Holder  shall  deliver this Note to the Maker at the address
designated  in the  Purchase  Agreement  at such  time  that  this Note is fully
converted.  With respect to partial  conversions  of this Note,  the Maker shall
keep written  records of the amount of this Note converted as of each Conversion
Date. Section 3.2 Conversion Price.

(a) The term  "Conversion  Price" shall mean $0.75,  subject to adjustment under
Section 3.6 hereof.

(b) Subject to the terms and provisions of Section  3.7(k) hereof,  for a period
of thirty (30) days following the effective date of the  Registration  Statement
(the  "Initial  Repricing  Period"),  in the event that the average  Closing Bid
Price for any ten (10) Trading Day period during the Initial Repricing Period is
less than the  Conversion  Price  then in effect  during the  Initial  Repricing
Period (the  "Initial  Adjusted  Conversion  Price"),  the Holder shall have the
right to adjust the Conversion  Price to a price equal to  seventy-five  percent
(75%) of the Initial  Adjusted  Conversion  Price.  In  addition,  once in every
subsequent four (4) month period following the Initial  Repricing Period through
the  Maturity  Date (a  "Subsequent  Repricing  Period"),  in the event that the
average  Closing  Bid  Price  for any ten  (10)  Trading  Day  period  during  a
Subsequent  Repricing  Period is less than the  Conversion  Price then in effect
during a  Subsequent  Repricing  Period  (the  "Subsequent  Adjusted  Conversion
Price"),  the Holder  shall have the right to adjust the  Conversion  Price to a
price equal to seventy-five  percent (75%) of the Subsequent Adjusted Conversion
Price.  The Holder shall  provide  written  notice to the Maker of its intent to
adjust the Conversion Price pursuant to this Section 3.2(b).

(c) Notwithstanding  any of the foregoing to the contrary,  if during any period
(a "Black-out  Period"),  a Holder is unable to trade any Common Stock issued or

                                      -42-
<PAGE>

issuable upon  conversion of this Note  immediately  due to the  postponement of
filing or delay or suspension of effectiveness of the Registration  Statement or
because the Maker has otherwise informed such Holder that an existing prospectus
cannot  be used at that  time in the  sale  or  transfer  of such  Common  Stock
(provided that such postponement,  delay, suspension or fact that the prospectus
cannot be used is not due to factors  solely within the control of the Holder of
this Note or due to the Maker  exercising  its rights under  Section 3(n) of the
Registration  Rights  Agreement),  such Holder shall have the option but not the
obligation  on any  Conversion  Date within ten (10) Trading Days  following the
expiration of the Black-out  Period of using the Conversion  Price applicable on
such Conversion Date or any Conversion  Price selected by such Holder that would
have been  applicable had such  Conversion  Date been at any earlier time during
the Black-out Period or within the ten (10) Trading Days thereafter. In no event
shall the Black-out Period have any effect on the Maturity Date of this Note.

Section 3.3       Mechanics of Conversion.

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

(b) The Maker  understands  that a delay in the delivery of the shares of Common
Stock upon  conversion  of this Note beyond the  Delivery  Date could  result in
economic  loss to the  Holder.  If the Maker fails to deliver to the Holder such
shares  via DWAC or a  certificate  or  certificates  pursuant  to this  Section
hereunder by the Delivery Date, the Maker shall pay to such Holder,  in cash, an
amount per Trading Day for each Trading Day until such shares are  delivered via
DWAC or certificates  are delivered,  together with interest on such amount at a
rate of 10% per annum,  accruing  until such  amount  and any  accrued  interest
thereon is paid in full,  equal to the  greater  of (A) (i) 1% of the  aggregate
principal  amount of the Notes  requested to be converted for the first five (5)
Trading  Days after the  Delivery  Date and (ii) 2% of the  aggregate  principal

                                      -43-
<PAGE>

amount of the Notes  requested to be converted  for each Trading Day  thereafter
and (B) $2,000 per day (which amount shall be paid as liquidated damages and not
as a penalty).  Nothing  herein  shall limit a Holder's  right to pursue  actual
damages for the Maker's failure to deliver  certificates  representing shares of
Common Stock upon conversion  within the period specified herein and such Holder
shall have the right to pursue all remedies  available to it at law or in equity
(including,   without  limitation,  a  decree  of  specific  performance  and/or
injunctive relief).  Notwithstanding  anything to the contrary contained herein,
the Holder  shall be  entitled to withdraw a  Conversion  Notice,  and upon such
withdrawal  the Maker  shall only be  obligated  to pay the  liquidated  damages
accrued in accordance  with this Section  3.3(b) through the date the Conversion
Notice is withdrawn.

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

Section 3.4       Ownership Cap and Certain Conversion Restrictions.

(a)  Notwithstanding  anything  to the  contrary  set forth in Section 3 of this
Note,  at no time may the  Holder  convert  all or a portion of this Note if the
number of shares of Common Stock to be issued pursuant to such conversion  would
exceed,  when  aggregated  with all other  shares of Common  Stock  owned by the
Holder at such time,  the number of shares of Common Stock which would result in
the Holder  beneficially  owning (as determined in accordance with Section 13(d)

                                      -44-
<PAGE>

of the  Exchange  Act and the  rules  thereunder)  more  than 4.9% of all of the
Common Stock outstanding at such time; provided,  however,  that upon the Holder
providing  the Maker with  sixty-one  (61) days notice  (pursuant to Section 4.1
hereof) (the "Waiver  Notice")  that the Holder would like to waive this Section
3.4(a) with regard to any or all shares of Common Stock issuable upon conversion
of this Note,  this Section  3.4(a) will be of no force or effect with regard to
all or a portion of the Note referenced in the Waiver Notice.

(b)  Notwithstanding  anything  to the  contrary  set forth in Section 3 of this
Note,  at no time may the  Holder  convert  all or a portion of this Note if the
number of shares of Common Stock to be issued pursuant to such conversion,  when
aggregated  with all other  shares of Common  Stock  owned by the Holder at such
time,  would  result  in  the  Holder  beneficially  owning  (as  determined  in
accordance  with Section 13(d) of the Exchange Act and the rules  thereunder) in
excess  of 9.9% of the then  issued  and  outstanding  shares  of  Common  Stock
outstanding at such time; provided,  however, that upon the Holder providing the
Maker with a Waiver Notice that the Holder would like to waive Section 3.4(b) of
this  Note with  regard to any or all  shares  of  Common  Stock  issuable  upon
conversion of this Note, this Section 3.4(b) shall be of no force or effect with
regard to all or a portion of the Note referenced in the Waiver Notice.

Section 3.5       Intentionally Omitted.

Section 3.6       Adjustment of Conversion Price.

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

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

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

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

                                      -45-
<PAGE>

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

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

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

                    (v) Adjustments for Reorganization, Merger, Consolidation or
Sales of  Assets.  If at any time or from time to time after the  Issuance  Date
there  shall be a capital  reorganization  of the Maker  (other than by way of a
stock  split or  combination  of  shares  or stock  dividends  or  distributions
provided  for in  Section  3.6(a)(i),  (ii) and  (iii),  or a  reclassification,
exchange or  substitution of shares  provided for in Section  3.6(a)(iv)),  or a
merger or consolidation of the Maker with or into another  corporation where the
holders of outstanding  voting  securities prior to such merger or consolidation
do not own over fifty percent (50%) of the outstanding  voting securities of the
merged or consolidated  entity,  immediately after such merger or consolidation,
or the sale of all or substantially  all of the Maker's  properties or assets to
any other person (an "Organic  Change"),  then as a part of such Organic Change,
(A) if the surviving  entity in any such Organic Change is a public company that
is registered pursuant to the Securities  Exchange Act of 1934, as amended,  and
its common stock is listed or quoted on a national  exchange or the OTC Bulletin
Board,  an  appropriate  revision  to the  Conversion  Price  shall  be made and
provision shall be made (by adjustments of the Conversion Price or otherwise) so
that the Holder  shall have the right  thereafter  to convert such Note into the
kind and amount of shares of stock and other securities or property of the Maker
or any  successor  corporation  resulting  from Organic  Change,  and (B) if the

                                      -46-
<PAGE>

surviving  entity in any such  Organic  Change is not a public  company  that is
registered  pursuant to the Securities  Exchange Act of 1934, as amended, or its
common stock is not listed or quoted on a national  exchange or the OTC Bulletin
Board, the Holder shall have the right to demand prepayment  pursuant to Section
3.7(b) hereof.  In any such case,  appropriate  adjustment  shall be made in the
application  of the  provisions  of this Section  3.6(a)(v)  with respect to the
rights of the Holder after the Organic  Change to the end that the provisions of
this Section  3.6(a)(v)  (including any adjustment in the applicable  Conversion
Price  then in effect  and the  number  of  shares of stock or other  securities
deliverable  upon  conversion of this Note and the Other Notes) shall be applied
after that event in as nearly an equivalent manner as may be practicable.

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

                    (1) In the event the Maker, shall, at any time, from time to
time,  issue or sell any shares of additional  shares of common stock (otherwise
than as provided in the  foregoing  subsections  (i) through (v) of this Section
3.6(a) or pursuant to Common Stock  Equivalents  (hereafter  defined) granted or
issued prior to the Issuance Date) ("Additional  Shares of Common Stock"),  at a
price  per share  less  than the  Conversion  Price  then in  effect or  without
consideration,  then the  Conversion  Price  upon  each such  issuance  shall be
adjusted to that price  (rounded to the nearest cent)  determined by multiplying
each of the Conversion Price then in effect by a fraction:

                              (A) the  numerator  of which shall be equal to the
sum of (x) the number of shares of Common Stock outstanding immediately prior to
the  issuance of such  Additional  Shares of Common Stock plus (y) the number of
shares of Common Stock  (rounded to the nearest whole share) which the aggregate
consideration  for the total number of such Additional Shares of Common Stock so
issued would purchase at a price per share equal to the Conversion Price then in
effect, and

                              (B) the denominator of which shall be equal to the
number of shares of Common Stock  outstanding  immediately after the issuance of
such Additional Shares of Common Stock.

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

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

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

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

                              (2) in the event of any consolidation or merger of
the Maker in which the Maker is not the  surviving  corporation  or in which the

                                      -47-
<PAGE>

previously outstanding shares of Common Stock of the Maker shall be changed into
or exchanged for the stock or other securities of another corporation, or in the
event of any sale of all or  substantially  all of the  assets  of the Maker for
stock or other securities of any corporation,  the Maker shall be deemed to have
issued a number of shares of its Common Stock for stock or  securities  or other
property of the other  corporation  computed on the basis of the actual exchange
ratio on which the transaction was predicated,  and for a consideration equal to
the  fair  market  value on the date of such  transaction  of all such  stock or
securities or other property of the other  corporation.  If any such calculation
results in  adjustment  of the  applicable  Conversion  Price,  or the number of
shares of Common Stock issuable upon conversion of the Notes, the  determination
of the  applicable  Conversion  Price or the  number of  shares of Common  Stock
issuable  upon  conversion  of the  Notes  immediately  prior  to  such  merger,
consolidation  or sale,  shall be made after giving effect to such adjustment of
the number of shares of Common Stock issuable upon  conversion of the Notes.  In
the event Common Stock is issued with other shares or securities or other assets
of the Maker for consideration which covers both, the consideration  computed as
provided in this Section  3.6(viii) shall be allocated among such securities and
assets as determined  in good faith by the Board of Directors of the Maker.

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

                    (c) Certain Issues Excepted. Anything herein to the contrary
notwithstanding,  the Maker shall not be required to make any  adjustment to the
Conversion Price in connection with (i) securities  issued (other than for cash)
in connection  with a merger,  acquisition,  or  consolidation,  (ii) securities
issued pursuant to a bona fide firm underwritten  public offering of the Maker's
securities,  (iii)  securities  issued pursuant to the conversion or exercise of
convertible or excercisable  securities issued or outstanding on or prior to the
date hereof or issued  pursuant to the  Purchase  Agreement,  (iv) the shares of
Common Stock issuable upon the exercise of Warrants,  (v)  securities  issued in
connection with bona fide strategic license agreements,  partnering arrangements
or other  consulting  services so long as such issuances are not for the purpose
of raising  capital,  (vi)  Common  Stock  issued or the  issuance  or grants of
options or warrants to purchase Common Stock to any employer,  officer, director
or advisor of the Company for a period of two (2) years  following  the Issuance
Date so long as the  exercise  price of such options or warrants is greater than
$0.75,  (vii) any warrants  issued to the placement  agent and its designees for
the transactions  contemplated by the Purchase Agreement, and (viii) the payment
of any accrued  interest in shares of Common Stock  pursuant to this Note or the
Other Notes, and (ix) securities issued to CNET Networks, Inc.

                  (d) No  Impairment.  The Maker shall not, by  amendment of its
Certificate of Incorporation or through any reorganization,  transfer of assets,
consolidation,  merger,  dissolution,  issue or sale of  securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed  hereunder  by the Maker,  but will at all

                                      -48-
<PAGE>

times in good faith,  assist in the carrying out of all the  provisions  of this
Section  3.6  and in the  taking  of all  such  action  as may be  necessary  or
appropriate  in order to protect  the  Conversion  Rights of the Holder  against
impairment.  In the event a Holder  shall elect to convert any Notes as provided
herein,  the Maker cannot refuse  conversion based on any claim that such Holder
or any one  associated  or  affiliated  with such Holder has been engaged in any
violation  of law,  violation of an agreement to which such Holder is a party or
for any  reason  whatsoever,  unless,  an  injunction  from a court,  or notice,
restraining  and or  adjoining  conversion  of all or of said  Notes  shall have
issued and the Maker  posts a surety  bond for the  benefit of such Holder in an
amount equal to one hundred thirty percent (130%) of the amount of the Notes the
Holder has  elected to  convert,  which  bond shall  remain in effect  until the
completion  of  arbitration/litigation  of the dispute and the proceeds of which
shall be payable to such Holder (as liquidated  damages) in the event it obtains
judgment.

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

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

                  (g) Fractional  Shares.  No fractional  shares of Common Stock
shall be issued upon  conversion of this Note. In lieu of any fractional  shares
to which the Holder would otherwise be entitled,  the Maker shall pay cash equal
to the  product of such  fraction  multiplied  by the average of the Closing Bid
Prices of the Common Stock for the five (5) consecutive Trading Days immediately
preceding the Conversion Date.

                  (h) Reservation of Common Stock.  The Maker shall at all times
when this Note  shall be  outstanding,  reserve  and keep  available  out of its
authorized but unissued  Common Stock,  such number of shares of Common Stock as
shall from time to time be sufficient to effect the  conversion of this Note and
all interest accrued thereon; provided that the number of shares of Common Stock
so reserved  shall at no time be less than one hundred fifty  percent  (150%) of
the  number  of shares of  Common  Stock  for which  this Note and all  interest
accrued thereon is at any time  convertible.  The Maker shall, from time to time
in accordance  with Delaware law,  increase the  authorized  number of shares of
Common Stock if at any time the unissued  number of authorized  shares shall not
be sufficient to satisfy the Maker's obligations under this Section 3.6(h).

                                      -49-
<PAGE>

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

                  Section 3.7       Prepayment.

                  (a)  Prepayment  Upon an  Event  of  Default.  Notwithstanding
anything to the contrary  contained  herein,  upon the occurrence of an Event of
Default  described  in Sections  2.1(b)-(k)  hereof,  the Holder  shall have the
right, at such Holder's option,  to require the Maker to prepay in cash all or a
portion of this Note at a price equal to one  hundred ten percent  (110%) of the
aggregate  principal  amount of this Note plus all accrued  and unpaid  interest
applicable  at the time of such  request.  Nothing in this Section  3.7(a) shall
limit the Holder's rights under Section 2.2 hereof.

                  (b) Prepayment Option Upon Major  Transaction.  In addition to
all  other  rights  of  the  Holder  contained  herein,  simultaneous  with  the
occurrence of a Major Transaction (as defined below),  the Holder shall have the
right, at the Holder's  option,  to require the Maker to prepay in cash all or a
portion of the Holder's Notes at a price equal to one hundred  percent (100%) of
the aggregate principal amount of this Note plus all accrued and unpaid interest
(the "Major Transaction Prepayment Price"); provided that the Company shall have
the sole option to pay the Major Transaction  Prepayment Price in cash or shares
of  Common  Stock.  If the  Holder  elects  to  receive  payment  of  the  Major
Transaction  Prepayment  Price in shares of  Common  Stock,  the price per share
shall be based upon the Conversion Price then in effect on the day preceding the
date of  delivery  of the Notice of  Prepayment  at Option of Holder  Upon Major
Transaction (as hereafter defined) and the Holder shall have demand registration
rights with respect to such shares.

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

                  (d) Intentionally Omitted.

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

                                      -50-
<PAGE>

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

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

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

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

                              (i) so  long as any  Notes  are  outstanding,  the
effectiveness of the Registration  Statement,  after it becomes  effective,  (i)
lapses for any reason  (including,  without  limitation,  the issuance of a stop
order) or (ii) is  unavailable  to the  Holder  for sale of the shares of Common
Stock,  and such lapse or  unavailability  continues for a period of twenty (20)
consecutive Trading Days, and the shares of Common Stock into which the Holder's
Notes can be converted cannot be sold in the public  securities  market pursuant
to Rule 144(k) under the Securities  Act,  provided that the cause of such lapse
or  unavailability  is not due to factors  primarily  within the  control of the
Holder of the Notes; and provided further that a Triggering Event shall not have
occurred  if and to the  extent  the Maker  exercised  its  rights  set forth in
Section 3(n) of the Registration Rights Agreement;

                              (ii)  the   suspension   from   listing,   without
subsequent  listing  on any one of, or the  failure  of the  Common  Stock to be
listed on at least one of the OTC Bulletin  Board,  the American Stock Exchange,
the Nasdaq  National  Market,  the Nasdaq  SmallCap Market or The New York Stock
Exchange, Inc., for a period of five (5) consecutive Trading Days;

                              (iii)  the  Maker's  notice  to any  holder of the
Notes, including by way of public announcement, at any time, of its inability to
comply  (including  for any of the  reasons  described  in  Section  3.8) or its
intention  not to comply with proper  requests for  conversion of any Notes into
shares of Common Stock; or

                              (iv)  the   Maker's   failure  to  comply  with  a
Conversion Notice tendered in accordance with the provisions of this Note within
ten (10) business days after the receipt by the Maker of the Conversion  Notice;
or

                                      -51-
<PAGE>

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

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

                              (vii) the Maker consummates an underwritten public
offering; or

                              (viii)  the  Maker  breaches  any  representation,
warranty,  covenant or other term or condition of the Purchase  Agreement,  this
Note or any other agreement, document, certificate or other instrument delivered
in connection with the transactions  contemplated  thereby or hereby,  except to
the extent that such breach would not have a Material Adverse Effect (as defined
in the  Purchase  Agreement)  and except,  in the case of a breach of a covenant
which is curable, only if such breach continues for a period of a least ten (10)
business days.

                    (g) Intentionally Omitted.

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

                    (i)  Mechanics  of  Prepayment  at  Option  of  Holder  Upon
Triggering  Event.  Within  two (2)  business  days  after the  occurrence  of a
Triggering  Event,  the Maker shall deliver written notice thereof via facsimile
and  overnight  courier  ("Notice  of  Triggering  Event") to each holder of the
Notes.  At any time  after the  earlier  of a  holder's  receipt  of a Notice of
Triggering  Event and such holder  becoming  aware of a  Triggering  Event,  any
holder of this Note and the Other Notes then  outstanding  may require the Maker
to prepay  all of the Notes on a pro rata  basis by  delivering  written  notice
thereof via facsimile and overnight  courier ("Notice of Prepayment at Option of
Holder Upon  Triggering  Event") to the Maker,  which  Notice of  Prepayment  at
Option of Holder Upon Triggering Event shall indicate (i) the amount of the Note
that such holder is electing to have prepaid and (ii) the applicable  Triggering

                                      -52-
<PAGE>

Event Prepayment Price, as calculated pursuant to Section 3.7(c) above. A holder
shall only be  permitted  to require  the Maker to prepay the Note  pursuant  to
Section 3.7 hereof for the greater of a period of ten (10) days after receipt by
such holder of a Notice of  Triggering  Event or for so long as such  Triggering
Event is continuing.

                    (j) Payment of Prepayment Price. Upon the Maker's receipt of
a  Notice(s)  of  Prepayment  at  Option of Holder  Upon  Triggering  Event or a
Notice(s)  of  Prepayment  at Option of Holder Upon Major  Transaction  from any
holder of the Notes, the Maker shall immediately notify each holder of the Notes
by facsimile of the Maker's receipt of such Notice(s) of Prepayment at Option of
Holder Upon Triggering Event or Notice(s) of Prepayment at Option of Holder Upon
Major  Transaction  and each holder which has sent such a notice shall  promptly
submit to the Maker such holder's certificates representing the Notes which such
holder has  elected to have  prepaid.  The Maker shall  deliver  the  applicable
Triggering  Event  Prepayment Price to such holder within five (5) business days
after the  Maker's  receipt of a Notice of  Prepayment  at Option of Holder Upon
Triggering  Event and, in the case of a prepayment  pursuant to Section  3.7(h),
the Maker shall  deliver  the  applicable  Major  Transaction  Prepayment  Price
immediately prior to the consummation of the Major Transaction;  provided that a
holder's  original  Note shall  have been so  delivered  to the Maker;  provided
further  that if the Maker is unable to prepay  all of the Notes to be  prepaid,
the Maker shall  prepay an amount  from each  holder of the Notes being  prepaid
equal to such  holder's  pro-rata  amount  (based on the number of Notes held by
such  holder  relative  to the number of Notes  outstanding)  of all Notes being
prepaid.  If the Maker  shall  fail to prepay  all of the  Notes  submitted  for
prepayment (other than pursuant to a dispute as to the arithmetic calculation of
the  Prepayment  Price),  in addition to any remedy such holder of the Notes may
have under this Note and the Purchase Agreement, the applicable Prepayment Price
payable in respect of such Notes not prepaid  shall bear interest at the rate of
two percent (2%) per month  (prorated  for partial  months)  until paid in full.
Until the Maker pays such unpaid applicable Prepayment Price in full to a holder
of the Notes  submitted for  prepayment,  such holder shall have the option (the
"Void Optional Prepayment Option") to, in lieu of prepayment,  require the Maker
to promptly  return to such  holder(s) all of the Notes that were  submitted for
prepayment by such holder(s) under this Section 3.7 and for which the applicable
Prepayment  Price has not been paid, by sending  written  notice  thereof to the
Maker via facsimile (the "Void Optional  Prepayment  Notice").  Upon the Maker's
receipt of such Void Optional  Prepayment  Notice(s) and prior to payment of the
full applicable Prepayment Price to such holder, (i) the Notice(s) of Prepayment
at Option of Holder Upon  Triggering  Event or the  Notice(s) of  Prepayment  at
Option of Holder Upon Major  Transaction,  as the case may be, shall be null and
void with  respect to those Notes  submitted  for  prepayment  and for which the
applicable  Prepayment Price has not been paid, (ii) the Maker shall immediately
return any Notes submitted to the Maker by each holder for prepayment under this
Section 3.7(j) and for which the applicable  Prepayment  Price has not been paid
and (iii) the  Conversion  Price of such returned Notes shall be adjusted to the
lesser  of (A) the  Conversion  Price as in effect on the date on which the Void
Optional  Prepayment  Notice(s)  is  delivered  to the Maker and (B) the  lowest
Closing Bid Price during the period beginning on the date on which the Notice(s)
of  Prepayment  of Option of Holder Upon Major  Transaction  or the Notice(s) of
Prepayment  at Option of Holder Upon  Triggering  Event,  as the case may be, is
delivered  to the  Maker  and  ending  on the  date on which  the Void  Optional
Prepayment  Notice(s)  is delivered to the Maker;  provided  that no  adjustment

                                      -53-
<PAGE>

shall be made if such  adjustment  would result in an increase of the Conversion
Price then in effect. A holder's  delivery of a Void Optional  Prepayment Notice
and  exercise of its rights  following  such notice shall not effect the Maker's
obligations  to make any payments  which have accrued  prior to the date of such
notice.  Payments  provided  for in this  Section  3.7 shall  have  priority  to
payments to other stockholders in connection with a Major Transaction.

                  (k) Maker Prepayment Option.  Upon the Maker receiving written
notice from the Holder of an  adjustment  to the  Conversion  Price  pursuant to
Section 3.2(b) of this Note (the "Section 3.2(b) Notice"),  the Maker shall have
five (5) Trading Days following  receipt of the Section 3.2(b) Notice to provide
written  notice  to the  Holder  of its  intention  to prepay in cash all of the
outstanding  principal  amount of this Note together with all accrued and unpaid
interest  thereon  (the  "Maker's  Prepayment  Notice")  at a price equal to one
hundred  twenty percent  (120%) of the aggregate  principal  amount of this Note
plus any accrued but unpaid interest (the "Maker's Prepayment Price"). The Maker
shall have  thirty  (30) days to deliver  the  Maker's  Prepayment  Price to the
Holder  during  which time the Holder shall not convert this Note into shares of
Common Stock;  provided,  however, that if during the period between delivery of
the  Maker's  Prepayment  Notice and the  Maker's  Prepayment  Date (as  defined
below),  the Holder shall become  entitled to deliver a Notice of  Prepayment at
Option of Holder Upon Major  Transaction  or Notice of  Prepayment  at Option of
Holder upon  Triggering  Event,  then the such  rights of the Holder  shall take
precedence over the previously  delivered Maker Prepayment  Notice.  The Maker's
Prepayment  Notice shall state the date of prepayment which date shall be within
thirty (30) days after the Maker has  delivered  the Maker's  Prepayment  Notice
(the "Maker's  Prepayment Date"), the Maker's Prepayment Price and the principal
amount of Notes plus any accrued but unpaid interest to be prepaid by the Maker.
The Maker shall deliver the Maker's  Prepayment Price on or prior to the Maker's
Prepayment  Date. If the Maker fails to pay the Maker's  Prepayment Price by the
Maker's  Prepayment  Date,  the  prepayment  will be declared null and void, the
Maker shall lose its right to serve a Maker's Prepayment Notice pursuant to this
Section  3.7(k) in the  future  and the  interest  rate under this Note shall be
adjusted to the lesser of fifteen percent (15%) and the maximum applicable legal
rate per annum.

                  Section 3.8       Inability to Fully Convert.

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

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

                                      -54-
<PAGE>

(ii) if the Maker's  inability to fully convert is pursuant to Section 3.8(a)(x)
above,  require  the  Maker  to  issue  restricted  shares  of  Common  Stock in
accordance with such holder's Conversion Notice;

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

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

In the  event a Holder  shall  elect to  convert  any  portion  of its  Notes as
provided herein, the Maker cannot refuse conversion based on any claim that such
Holder or any one associated or affiliated  with such Holder has been engaged in
any violation of law,  violation of an agreement to which such Holder is a party
or for any reason  whatsoever,  unless,  an injunction  from a court, on notice,
restraining and or adjoining  conversion of all or of said Notes shall have been
issued and the Maker  posts a surety  bond for the  benefit of such Holder in an
amount equal to 130% of the principal amount of the Notes the Holder has elected
to  convert,  which  bond  shall  remain  in  effect  until  the  completion  of
arbitration/litigation of the dispute and the proceeds of which shall be payable
to such Holder in the event it obtains judgment.

                  (b) Mechanics of Fulfilling Holder's Election. The Maker shall
immediately  send via facsimile to the Holder,  upon receipt of a facsimile copy
of a  Conversion  Notice  from the Holder  which  cannot be fully  satisfied  as
described in Section  3.8(a) above,  a notice of the Maker's  inability to fully
satisfy the Conversion  Notice (the "Inability to Fully Convert  Notice").  Such
Inability to Fully Convert Notice shall indicate (i) the reason why the Maker is
unable to fully satisfy such holder's Conversion Notice, (ii) the amount of this
Note which cannot be converted  and (iii) the  applicable  Mandatory  Prepayment
Price.  The Holder shall  notify the Maker of its  election  pursuant to Section
3.8(a) above by delivering written notice via facsimile to the Maker ("Notice in
Response to Inability to Convert").

                  (c) Payment of Prepayment  Price. If the Holder shall elect to
have its Notes prepaid pursuant to Section  3.8(a)(i) above, the Maker shall pay
the  Mandatory  Prepayment  Price to the Holder  within  thirty (30) days of the
Maker's  receipt of the  Holder's  Notice in Response to  Inability  to Convert,
provided that prior to the Maker's receipt of the Holder's Notice in Response to
Inability to Convert the Maker has not delivered a notice to the Holder stating,
to the satisfaction of the Holder,  that the event or condition resulting in the
Mandatory  Prepayment has been cured and all Conversion  Shares  issuable to the
Holder can and will be delivered to the Holder in  accordance  with the terms of
this Note. If the Maker shall fail to pay the  applicable  Mandatory  Prepayment
Price to the  Holder  on the date that is one (1)  business  day  following  the
Maker's  receipt of the  Holder's  Notice in  Response to  Inability  to Convert
(other than  pursuant  to a dispute as to the  determination  of the  arithmetic
calculation of the Prepayment  Price),  in addition to any remedy the Holder may
have under this Note and the Purchase  Agreement,  such unpaid amount shall bear
interest at the rate of two percent (2%) per month (prorated for partial months)
until paid in full. Until the full Mandatory Prepayment Price is paid in full to
the Holder,  the Holder may (i) void the  Mandatory  Prepayment  with respect to

                                      -55-
<PAGE>

that portion of the Note for which the full Mandatory  Prepayment  Price has not
been paid,  (ii) receive back such Note,  and (iii) require that the  Conversion
Price of such  returned  Note be  adjusted  to the lesser of (A) the  Conversion
Price  as in  effect  on the date on  which  the  Holder  voided  the  Mandatory
Prepayment and (B) the lowest  Closing Bid Price during the period  beginning on
the  Conversion  Date and  ending on the date the Holder  voided  the  Mandatory
Prepayment.

                  (d) Pro-rata Conversion and Prepayment. In the event the Maker
receives a Conversion  Notice from more than one holder of the Notes on the same
day and the  Maker  can  convert  and  prepay  some,  but not all,  of the Notes
pursuant  to this  Section  3.8,  the Maker  shall  convert and prepay from each
holder of the Notes  electing  to have its Notes  converted  and prepaid at such
time an amount equal to such  holder's  pro-rata  amount (based on the principal
amount of the Notes held by such holder relative to the principal  amount of the
Notes outstanding) of all the Notes being converted and prepaid at such time.

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

                                   ARTICLE IV

                                  MISCELLANEOUS

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

Section 4.2  Governing  Law.  This Note shall be governed  by and  construed  in
accordance  with the  internal  laws of the  State of New York,  without  giving
effect to any of the  conflicts  of law  principles  which  would  result in the

                                      -56-
<PAGE>

application of the substantive law of another jurisdiction.  This Note shall not
be interpreted or construed with any presumption  against the party causing this
Note to be drafted.

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

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

Section 4.5 Enforcement Expenses. The Maker agrees to pay all costs and expenses
of  enforcement  of  this  Note,  including,   without  limitation,   reasonable
attorneys' fees and expenses.

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

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

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

                  "THIS  NOTE AND THE  SHARES  OF  COMMON  STOCK  ISSUABLE  UPON
                  CONVERSION   HEREOF  HAVE  NOT  BEEN   REGISTERED   UNDER  THE
                  SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),  OR APPLICABLE
                  STATE  SECURITIES  LAWS, AND MAY NOT BE SOLD OR TRANSFERRED IN

                                      -57-
<PAGE>

                  THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE MAKER OF AN
                  OPINION OF COUNSEL IN THE FORM, SUBSTANCE AND SCOPE REASONABLY
                  SATISFACTORY  TO THE MAKER  THAT  THIS NOTE AND THE  SHARES OF
                  COMMON STOCK ISSUABLE UPON CONVERSION HEREOF HAVE MAY BE SOLD,
                  TRANSFERRED,  HYPOTHECATED OR OTHERWISE  DISPOSED OF, UNDER AN
                  EXEMPTION  FROM  REGISTRATION  UNDER  THE ACT AND  SUCH  STATE
                  SECURITIES LAWS."

Section 4.9 Consent to Jurisdiction. Each of the Maker and the Holder (i) hereby
irrevocably submits to the exclusive  jurisdiction of the United States District
Court  sitting in the Southern  District of New York and the courts of the State
of New York located in New York county for the  purposes of any suit,  action or
proceeding  arising out of or relating to this Note and (ii) hereby waives,  and
agrees not to assert in any such suit,  action or proceeding,  any claim that it
is not  personally  subject to the  jurisdiction  of such court,  that the suit,
action or  proceeding is brought in an  inconvenient  forum or that the venue of
the suit,  action or  proceeding  is improper.  Each of the Maker and the Holder
consents  to process  being  served in any such suit,  action or  proceeding  by
mailing a copy  thereof to such party at the address in effect for notices to it
under the Purchase  Agreement and agrees that such service shall constitute good
and sufficient  service of process and notice  thereof.  Nothing in this Section
4.9  shall  affect  or limit any  right to serve  process  in any  other  manner
permitted  by law.  Each of the  Maker  and the  Holder  hereby  agree  that the
prevailing party in any suit, action or proceeding arising out of or relating to
this Note shall be entitled to reimbursement  for reasonable legal fees from the
non-prevailing party.

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

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

Section 4.12 Maker Waivers.  Except as otherwise  specifically  provided herein,
the Maker  and all  others  that may  become  liable  for all or any part of the
obligations evidenced by this Note, hereby waive presentment,  demand, notice of
nonpayment,  protest and all other  demands' and notices in connection  with the
delivery,  acceptance,  performance  and enforcement of this Note, and do hereby
consent to any number of renewals of  extensions  of the time or payment  hereof
and agree that any such renewals or extensions may be made without notice to any
such persons and without affecting their liability herein and do further consent
to the release of any person liable hereon,  all without affecting the liability
of the other persons, firms or Maker liable for the payment of this Note, AND DO
HEREBY WAIVE TRIAL BY JURY.

                                      -58-
<PAGE>

(a) No delay or  omission  on the part of the  Holder in  exercising  its rights
under this Note, or course of conduct relating hereto, shall operate as a waiver
of such  rights or any other  right of the  Holder,  nor shall any waiver by the
Holder of any such right or rights on any one occasion be deemed a waiver of the
same right or rights on any future occasion.

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

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

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

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

                                    FINANCIALCONTENT, INC.

                                    By:  /S/ Wing Yu
                                         -----------
                                    Name: Wing Yu
                                    Title:   Chief Executive Officer

                                      -59-
<PAGE>

                                    EXHIBIT A

                                WIRE INSTRUCTIONS

Payee: _______________________________________________________

Bank:  _______________________________________________________

Address: _____________________________________________________

         _____________________________________________________

Bank No.: ____________________________________________________

Account No.:  ________________________________________________

Account Name: ________________________________________________

                                      -60-
<PAGE>

>

                                     FORM OF

                              NOTICE OF CONVERSION

     (To be Executed by the Registered Holder in order to Convert the Note)

The undersigned hereby  irrevocably elects to convert $ ________________  of the
principal  amount  of the above  Note No.  ___ into  shares  of Common  Stock of
FinancialContent,  Inc. (the "Maker")  according to the conditions hereof, as of
the date written below.

Date of Conversion _______________________________________________________

Applicable Conversion Price ______________________________________________

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

___________________________

Signature_________________________________________________________________

         [Name]

Address:__________________________________________________________________

         _________________________________________________________________

                                      -61-
<PAGE>

                                    EXHIBIT C
                            FORM OF SERIES A WARRANT

                                      -62-
<PAGE>

THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE  HEREOF HAVE
NOT  BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED  (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED
OR OTHERWISE  DISPOSED OF UNLESS  REGISTERED  UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF
COUNSEL  REASONABLY  SATISFACTORY  TO  THE  ISSUER  THAT  REGISTRATION  OF  SUCH
SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED.

                          SERIES A WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                             FINANCIALCONTENT, INC.

                            Expires February 13, 2011

No.: W-A-06- __                                  Number of Shares: ___________
Date of Issuance: February 13, 2006

         FOR VALUE RECEIVED, the undersigned, FinancialContent, Inc., a Delaware
corporation  (together with its successors  and assigns,  the "Issuer"),  hereby
certifies  that  _______________________________  or its  registered  assigns is
entitled  to  subscribe  for and  purchase,  during  the  Term  (as  hereinafter
defined),  up  to  ____________________________________  (_____________)  shares
(subject to adjustment as hereinafter provided) of the duly authorized,  validly
issued, fully paid and non-assessable Common Stock of the Issuer, at an exercise
price per share equal to the Warrant Price then in effect, subject,  however, to
the  provisions  and  upon the  terms  and  conditions  hereinafter  set  forth.
Capitalized  terms used in this Warrant and not otherwise  defined  herein shall
have the respective meanings specified in Section 8 hereof.

         1. Term.  The term of this Warrant shall  commence on February 13, 2006
and shall expire at 6:00 p.m.,  eastern  time, on February 13, 2011 (such period
being the "Term").

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

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

         (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part,  by the  surrender  of this Warrant  (with the  exercise  form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment  to the  Issuer  of an  amount of  consideration  therefor  equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of

                                      -63-
<PAGE>

shares of  Warrant  Stock  with  respect  to which  this  Warrant  is then being
exercised,  payable at such Holder's  election (i) by certified or official bank
check or by wire  transfer  to an  account  designated  by the  Issuer,  (ii) by
"cashless  exercise" in accordance with the provisions of subsection (c) of this
Section  2, but only when a  registration  statement  under the  Securities  Act
providing for the resale of the Warrant Stock is not then in effect, or (iii) by
a combination of the foregoing methods of payment selected by the Holder of this
Warrant.

         (c) Cashless  Exercise.  Notwithstanding  any provisions  herein to the
contrary and  commencing  one (1) year  following the Original Issue Date if (i)
the Per Share  Market  Value of one share of Common  Stock is  greater  than the
Warrant  Price  (at the  date of  calculation  as set  forth  below)  and (ii) a
registration  statement under the Securities Act providing for the resale of the
Warrant Stock is not then in effect by the date such  registration  statement is
required to be  effective  pursuant to the  Registration  Rights  Agreement  (as
defined in the  Purchase  Agreement)  or not  effective  at any time  during the
Effectiveness  Period  (as  defined in the  Registration  Rights  Agreement)  in
accordance  with the  terms of the  Registration  Rights  Agreement,  in lieu of
exercising this Warrant by payment of cash, the Holder may exercise this Warrant
by a cashless  exercise  and shall  receive the number of shares of Common Stock
equal to an amount (as  determined  below) by  surrender  of this Warrant at the
principal  office of the Issuer  together with the properly  endorsed  Notice of
Exercise in which event the Issuer  shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

                  X = Y - (A)(Y)
                          --------
                             B

Where             X =      the number of shares of Common Stock to be issued to
                           the Holder.

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

                  A =      the Warrant Price.

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

         (d)  Issuance of Stock  Certificates.  In the event of any  exercise of
this Warrant in accordance with and subject to the terms and conditions  hereof,
(i) certificates for the shares of Warrant Stock so purchased shall be delivered
to the Holder hereof within a reasonable  time, not exceeding  three (3) Trading
Days after such exercise (the "Delivery  Date") or, at the request of the Holder
(provided that a registration  statement  under the Securities Act providing for
the resale of the Warrant Stock is then in effect),  issued and delivered to the
Depository  Trust Company ("DTC") account on the Holder's behalf via the Deposit
Withdrawal  Agent  Commission  System  ("DWAC")  within a reasonable  time,  not
exceeding three (3) Trading Days after such exercise (provided, however that the
Issuer or its  transfer  agent shall only be  obligated to issue and deliver the
shares  to the DTC on the  Holder's  behalf  via  DWAC or  certificates  free of
restrictive  legends if such exercise is in connection with a sale (as evidenced
by documentation furnished to and reasonably satisfactory to the Issuer) and the
registration  statement  providing  for  the  resale  of the  Warrant  Stock  is

                                      -64-
<PAGE>

effective,  and the Holder  hereof  shall be deemed for all  purposes  to be the
holder  of the  shares  of  Warrant  Stock so  purchased  as of the date of such
exercise and (ii) unless this Warrant has  expired,  a new Warrant  representing
the  number of shares of  Warrant  Stock,  if any,  with  respect  to which this
Warrant shall not then have been exercised  (less any amount thereof which shall
have been  canceled  in  payment  or partial  payment  of the  Warrant  Price as
hereinabove  provided) shall also be issued to the Holder hereof at the Issuer's
expense within such time.

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

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

                                      -65-
<PAGE>

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

         (h) Compliance with Securities Laws.

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

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

                  THIS  WARRANT  AND THE SHARES OF COMMON  STOCK  ISSUABLE  UPON
         EXERCISE  HEREOF HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE  "SECURITIES  ACT") OR ANY STATE  SECURITIES LAWS
         AND MAY NOT BE  SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED  OF  UNLESS
         REGISTERED   UNDER  THE  SECURITIES  ACT  AND  UNDER  APPLICABLE  STATE
         SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL
         REASONABLY  SATISFACTORY  TO  THE  ISSUER  THAT  REGISTRATION  OF  SUCH
         SECURITIES  UNDER  THE  SECURITIES  ACT AND  UNDER  THE  PROVISIONS  OF
         APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

                  (iii)  The   Issuer   agrees  to  reissue   this   Warrant  or
         certificates  representing any of the Warrant Stock, without the legend
         set forth  above if at such time,  prior to making any  transfer of any
         such  securities,  the Holder shall give  written  notice to the Issuer
         describing  the  manner  and  terms  of such  transfer.  Such  proposed
         transfer  will not be  effected  until:  (a)  either (i) the Issuer has
         received an opinion of counsel  reasonably  satisfactory to the Issuer,
         to the  effect  that the  registration  of such  securities  under  the
         Securities  Act  is not  required  in  connection  with  such  proposed
         transfer,  (ii) a  registration  statement  under  the  Securities  Act
         covering  such proposed  disposition  has been filed by the Issuer with
         the Securities and Exchange  Commission and has become  effective under
         the  Securities  Act,  (iii) the Issuer  has  received  other  evidence
         reasonably  satisfactory  to the  Issuer  that  such  registration  and
         qualification  under the Securities Act and state  securities  laws are
         not required,  or (iv) the Holder  provides the Issuer with  reasonable
         assurances  that such  security can be sold  pursuant to Rule 144 under

                                      -66-
<PAGE>

         the  Securities  Act;  and (b) either (i) the  Issuer has  received  an
         opinion of counsel reasonably satisfactory to the Issuer, to the effect
         that  registration or qualification  under the securities or "blue sky"
         laws of any state is not  required  in  connection  with such  proposed
         disposition,  or (ii) compliance with  applicable  state  securities or
         "blue sky" laws has been  effected  or a valid  exemption  exists  with
         respect  thereto.  The Issuer  will  respond to any such  notice from a
         holder  within  three (3)  business  days.  In the case of any proposed
         transfer  under  this  Section  2(h),  the Issuer  will use  reasonable
         efforts to comply with any such  applicable  state  securities or "blue
         sky"  laws,  but shall in no event be  required,  (x) to  qualify to do
         business in any state where it is not then  qualified,  (y) to take any
         action  that  would  subject  it to tax or to the  general  service  of
         process  in any state  where it is not then  subject,  or (z) to comply
         with  state  securities  or "blue  sky"  laws of any  state  for  which
         registration  by  coordination  is  unavailable  to  the  Issuer.   The
         restrictions  on transfer  contained  in this  Section 2(h) shall be in
         addition to, and not by way of limitation of, any other restrictions on
         transfer  contained in any other  section of this  Warrant.  Whenever a
         certificate  representing the Warrant Stock is required to be issued to
         a  the  Holder  without  a  legend,  in  lieu  of  delivering  physical
         certificates  representing  the Warrant  Stock,  provided  the Issuer's
         transfer agent is  participating  in the DTC Fast Automated  Securities
         Transfer  program,  the Issuer shall use its reasonable best efforts to
         cause its transfer agent to  electronically  transmit the Warrant Stock
         to the Holder by  crediting  the account of the  Holder's  Prime Broker
         with DTC through its DWAC system (to the extent not  inconsistent  with
         any provisions of this Warrant or the Purchase Agreement).

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

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

         (a) Stock Fully Paid. The Issuer  represents,  warrants,  covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise  hereunder  will,  when issued in accordance  with the
terms of this  Warrant,  be duly  authorized,  validly  issued,  fully  paid and
nonassessable  and free from all taxes,  liens and charges created by or through
the  Issuer.  The Issuer  further  covenants  and agrees  that during the period
within  which this Warrant may be  exercised,  the Issuer will at all times have
authorized  and  reserved  for the  purpose of  issuance  upon  exercise of this
Warrant a number of shares of Common Stock equal to at least one hundred  twenty
percent (120%) of the aggregate  number of shares of Common Stock to provide for
the exercise of this Warrant.

         (b) Reservation.  If any shares of Common Stock required to be reserved
for issuance  upon exercise of this Warrant or as otherwise  provided  hereunder
require registration or qualification with any governmental  authority under any
federal or state law before  such  shares may be so issued,  the Issuer  will in
good faith use its best efforts as  expeditiously  as possible at its expense to
cause such shares to be duly  registered or qualified.  If the Issuer shall list
any shares of Common Stock on any securities  exchange or market it will, at its
expense,  list thereon,  maintain and increase when necessary such listing,  of,
all  shares of Warrant  Stock from time to time  issued  upon  exercise  of this
Warrant or as otherwise provided hereunder (provided that such Warrant Stock has

                                      -67-
<PAGE>

been  registered  pursuant to a registration  statement under the Securities Act
then in effect),  and, to the extent permissible under the applicable securities
exchange  rules,  all  unissued  shares of Warrant  Stock  which are at any time
issuable  hereunder,  so long as any shares of Common  Stock shall be so listed.
The Issuer will also so list on each  securities  exchange  or market,  and will
maintain such listing of, any other  securities which the Holder of this Warrant
shall be entitled to receive  upon the  exercise of this  Warrant if at the time
any securities of the same class shall be listed on such securities  exchange or
market by the Issuer.

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

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

         4.  Adjustment  of Warrant  Price.  The price at which  such  shares of
Warrant Stock may be purchased upon exercise of this Warrant shall be subject to
adjustment  from time to time as set forth in this  Section 4. The Issuer  shall
give the Holder notice of any event described below which requires an adjustment
pursuant to this Section 4 in accordance with the notice provisions set forth in
Section 5.

                                      -68-
<PAGE>

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

                  (i) In case the Issuer after the Original  Issue Date shall do
         any of the following (each, a "Triggering  Event"):  (a) consolidate or
         merge with or into any other  Person  and the  Issuer  shall not be the
         continuing or surviving corporation of such consolidation or merger, or
         (b)  permit  any other  Person to  consolidate  with or merge  into the
         Issuer and the Issuer shall be the continuing or surviving  Person but,
         in connection with such  consolidation or merger,  any Capital Stock of
         the Issuer  shall be changed into or exchanged  for  Securities  of any
         other  Person or cash or any other  property,  or (c)  transfer  all or
         substantially  all of its properties or assets to any other Person,  or
         (d) effect a capital  reorganization or reclassification of its Capital
         Stock,  then,  and in the case of each such  Triggering  Event,  proper
         provision  shall be made so that,  upon the  basis and the terms and in
         the manner  provided in this Warrant,  the Holder of this Warrant shall
         be entitled upon the exercise hereof at any time after the consummation
         of such  Triggering  Event, to the extent this Warrant is not exercised
         prior to such  Triggering  Event,  to receive at the  Warrant  Price in
         effect  at the  time  immediately  prior  to the  consummation  of such
         Triggering  Event  in lieu  of the  Common  Stock  issuable  upon  such
         exercise  of  this  Warrant  prior  to  such  Triggering   Event,   the
         Securities,  cash and  property  to which such  Holder  would have been
         entitled upon the  consummation of such Triggering Event if such Holder
         had exercised the rights represented by this Warrant  immediately prior
         thereto  (including  the  right of a  shareholder  to elect the type of
         consideration  it will  receive upon a  Triggering  Event),  subject to
         adjustments  (subsequent to such corporate action) as nearly equivalent
         as possible to the  adjustments  provided for elsewhere in this Section
         4. Notwithstanding the foregoing to the contrary,  this Section 4(a)(i)
         shall  only  apply  if  the  surviving  entity  pursuant  to  any  such
         Triggering Event is a public company that is registered pursuant to the
         Securities  Exchange Act of 1934,  as amended,  and its common stock is
         listed or quoted on a national  exchange or the OTC Bulletin  Board. In
         the event that the  surviving  entity  pursuant to any such  Triggering
         Event  is not a  public  company  that is  registered  pursuant  to the
         Securities Exchange Act of 1934, as amended, or its common stock is not
         listed or quoted on a national exchange or the OTC Bulletin Board, then
         the Holder  shall  have the right to demand  that the Issuer pay to the
         Holder an amount  equal to the value of this  Warrant  according to the
         Black-Scholes formula.

                  (ii) Notwithstanding anything contained in this Warrant to the
         contrary and so long as the surviving entity pursuant to any Triggering
         Event is a public company that is registered pursuant to the Securities
         Exchange  Act of 1934,  as amended,  and its common  stock is listed or
         quoted on a national  exchange or the OTC Bulletin  Board, a Triggering
         Event  shall  not  be  deemed  to  have   occurred  if,  prior  to  the
         consummation  thereof, each Person (other than the Issuer) which may be
         required to deliver any Securities,  cash or property upon the exercise
         of this Warrant as provided herein shall assume, by written  instrument
         delivered  to,  and  reasonably  satisfactory  to,  the  Holder of this
         Warrant,  (A) the  obligations of the Issuer under this Warrant (and if
         the Issuer shall survive the  consummation  of such  Triggering  Event,
         such  assumption  shall be in  addition  to, and shall not  release the
         Issuer  from,  any  continuing  obligations  of the  Issuer  under this
         Warrant)  and  (B) the  obligation  to  deliver  to  such  Holder  such
         Securities,  cash or  property  as, in  accordance  with the  foregoing
         provisions  of this  subsection  (a),  such Holder shall be entitled to

                                      -69-
<PAGE>

         receive,  and such Person shall have similarly delivered to such Holder
         an  opinion  of  counsel  for  such  Person,  which  counsel  shall  be
         reasonably  satisfactory  to  such  Holder,  or in the  alternative,  a
         written  acknowledgement  executed by the President or Chief  Financial
         Officer of the  Issuer,  stating  that this  Warrant  shall  thereafter
         continue  in full  force and effect  and the terms  hereof  (including,
         without limitation, all of the provisions of this subsection (a)) shall
         be applicable to the Securities, cash or property which such Person may
         be  required  to  deliver  upon any  exercise  of this  Warrant  or the
         exercise of any rights pursuant hereto.

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

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

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

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

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

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

                           (i) cash (other than a cash  dividend  payable out of
         earnings  or  earned  surplus  legally  available  for the  payment  of
         dividends under the laws of the  jurisdiction of  incorporation  of the
         Issuer),

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

                           (iii) any warrants or other  rights to subscribe  for
         or purchase any evidences of its  indebtedness,  any shares of stock of
         any class or any other securities or property of any nature  whatsoever
         (other than cash,  Common Stock  Equivalents  or  Additional  Shares of
         Common Stock),

                                      -70-
<PAGE>

then (1) the  number  of  shares of Common  Stock  for  which  this  Warrant  is
exercisable  shall be  adjusted  to equal the product of the number of shares of
Common Stock for which this  Warrant is  exercisable  immediately  prior to such
adjustment  multiplied by a fraction (A) the numerator of which shall be the Per
Share Market Value of Common Stock at the date of taking such record and (B) the
denominator  of which  shall be such Per Share  Market  Value  minus the  amount
allocable to one share of Common Stock of any such cash so distributable  and of
the fair value (as  determined  in good faith by the Board of  Directors  of the
Issuer and supported by an opinion from an investment banking firm of recognized
national standing acceptable to (but not affiliated with) the Holder) of any and
all such  evidences  of  indebtedness,  shares of  stock,  other  securities  or
property or warrants or other  subscription or purchase rights so distributable,
and (2) the  Warrant  Price then in effect  shall be  adjusted  to equal (A) the
Warrant Price then in effect  multiplied by the number of shares of Common Stock
for which  this  Warrant  is  exercisable  immediately  prior to the  adjustment
divided  by (B) the number of shares of Common  Stock for which this  Warrant is
exercisable immediately after such adjustment.  A reclassification of the Common
Stock  (other  than a change in par value,  or from par value to no par value or
from no par value to par value)  into  shares of Common  Stock and shares of any
other class of stock shall be deemed a distribution by the Issuer to the holders
of its  Common  Stock of such  shares of such  other  class of stock  within the
meaning of this  Section  4(c) and, if the  outstanding  shares of Common  Stock
shall be changed into a larger or smaller  number of shares of Common Stock as a
part of such  reclassification,  such change  shall be deemed a  subdivision  or
combination,  as the case may be, of the  outstanding  shares  of  Common  Stock
within the meaning of Section 4(b).

         (d) Issuance of Additional Shares of Common Stock.

                  (i) In the event the Issuer  shall at any time  following  the
Original Issue Date issue any Additional  Shares of Common Stock (otherwise than
as provided in the foregoing  subsections (a) through (c) of this Section 4), at
a price  per share  less  than the  Warrant  Price  then in  effect  or  without
consideration,  then the Warrant Price upon each such issuance shall be adjusted
to that price  determined by  multiplying  the Warrant Price then in effect by a
fraction:
                           (A) the  numerator of which shall be equal to the sum
                  of (x) the  number  of  shares  of  Outstanding  Common  Stock
                  immediately prior to the issuance of such Additional Shares of
                  Common  Stock  plus (y) the  number of shares of Common  Stock
                  (rounded  to the  nearest  whole  share)  which the  aggregate
                  consideration  for the total number of such Additional  Shares
                  of Common Stock so issued would  purchase at a price per share
                  equal to the Warrant Price then in effect, and

                           (B) the  denominator  of which  shall be equal to the
                  number of shares of Outstanding Common Stock immediately after
                  the issuance of such Additional Shares of Common Stock.

                  (ii) No adjustment of the number of shares of Common Stock for
which this Warrant  shall be  exercisable  shall be made under  paragraph (i) of
Section  4(d) upon the issuance of any  Additional  Shares of Common Stock which

                                      -71-
<PAGE>

are issued pursuant to the exercise of any Common Stock Equivalents, if any such
adjustment  shall  previously  have been made upon the  issuance  of such Common
Stock Equivalents (or upon the issuance of any warrant or other rights therefor)
pursuant to Section 4(e).

(e) Issuance of Common Stock Equivalents.  If at any time the Issuer shall issue
or sell any Common Stock  Equivalents,  whether or not the rights to exchange or
convert  thereunder are  immediately  exercisable,  and the aggregate  price per
share for which Common Stock is issuable  upon such  conversion or exchange plus
the  consideration  received by the Issuer for  issuance  of such  Common  Stock
Equivalent  divided by the number of shares of Common Stock issuable pursuant to
such Common Stock  Equivalent  (the "Aggregate Per Common Share Price") shall be
less than the Warrant  Price then in effect,  or if, after any such  issuance of
Common Stock  Equivalents,  the price per share for which  Additional  Shares of
Common Stock may be issuable  thereafter is amended or adjusted,  and such price
as so amended  shall make the  Aggregate Per Common Share Price be less than the
Warrant Price in effect at the time of such  amendment or  adjustment,  then the
Warrant Price upon each such issuance or amendment shall be adjusted as provided
in Section 4(d). No further adjustment of the Warrant Price then in effect shall
be  made  under  this  Section  4(e)  upon  the  issuance  of any  Common  Stock
Equivalents  which are issued  pursuant to the exercise of any warrants or other
subscription  or  purchase  rights  therefor,   if  any  such  adjustment  shall
previously  have been made upon the  issuance of such  warrants or other  rights
pursuant to this Section 4(e). No further  adjustments of the Warrant Price then
in  effect  shall  be made  upon the  actual  issue of such  Common  Stock  upon
conversion or exchange of such Common Stock Equivalents.

(f) Superseding  Adjustment.  If, at any time after any adjustment of the number
of shares of Common Stock for which this Warrant is exercisable  and the Warrant
Price then in effect shall have been made pursuant to Section 4(e) as the result
of any  issuance  of  Common  Stock  Equivalents,  and  (i)  such  Common  Stock
Equivalents,  or the  right of  conversion  or  exchange  in such  Common  Stock
Equivalents,  shall  expire,  and  all or a  portion  of such  or the  right  of
conversion  or exchange  with  respect to all or a portion of such Common  Stock
Equivalents,  as the case may be,  shall  not have been  exercised,  or (ii) the
consideration  per share for which shares of Common Stock are issuable  pursuant
to such  Common  Stock  Equivalents  shall  be  increased,  then  such  previous
adjustment  shall be rescinded and annulled and the Additional  Shares of Common
Stock which were deemed to have been issued by virtue of the computation made in
connection  with the  adjustment  so rescinded  and annulled  shall no longer be
deemed to have been issued by virtue of such computation. Upon the occurrence of
an event set forth in this Section 4(f), there shall be a recomputation  made of
the effect of such Common  Stock  Equivalents  on the basis of: (i) treating the
number of  Additional  Shares of Common  Stock  theretofore  actually  issued or
issuable  pursuant to the previous  exercise of Common Stock  Equivalents or any
such right of conversion or exchange, as having been issued on the date or dates
of any such exercise and for the consideration  actually received and receivable
therefor,  and (ii) treating any such Common Stock Equivalents which then remain
outstanding as having been granted or issued  immediately after the time of such
increase of the  consideration  per share for which Additional  Shares of Common
Stock  are  issuable  under  such  Common  Stock  Equivalents;  whereupon  a new

                                      -72-
<PAGE>

adjustment  of the number of shares of Common  Stock for which  this  Warrant is
exercisable  and the  Warrant  Price  then in  effect  shall be made,  which new
adjustment shall supersede the previous adjustment so rescinded and annulled.

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

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

                                      -73-
<PAGE>

the Issuer for consideration  which covers both, the  consideration  computed as
provided in this Section  4(h)(i) shall be allocated  among such  securities and
assets as determined in good faith by the Board.

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

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

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

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

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

                                      -74-
<PAGE>

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

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

         7. Ownership Cap and Certain Exercise Restrictions. (a) Notwithstanding
anything to the contrary set forth in this  Warrant,  at no time may a Holder of
this Warrant exercise this Warrant if the number of shares of Common Stock to be
issued  pursuant to such exercise would exceed,  when  aggregated with all other
shares of Common  Stock owned by such Holder at such time,  the number of shares
of Common  Stock  which  would  result in such  Holder  beneficially  owning (as
determined  in  accordance  with Section 13(d) of the Exchange Act and the rules
thereunder)  in  excess of 4.9% of the then  issued  and  outstanding  shares of
Common Stock;  provided,  however,  that upon a holder of this Warrant providing
the Issuer with sixty-one (61) days notice  (pursuant to Section 12 hereof) (the
"Waiver  Notice")  that such Holder  would like to waive this  Section 7(a) with
regard to any or all  shares of Common  Stock  issuable  upon  exercise  of this
Warrant, this Section 7(a) will be of no force or effect with regard to all or a
portion of the Warrant referenced in the Waiver Notice; provided,  further, that
this provision  shall be of no further force or effect during the sixty-one (61)
days immediately preceding the expiration of the term of this Warrant.

                  (b) The Holder may not exercise  the Warrant  hereunder to the
extent  such  exercise  would  result  in the  Holder  beneficially  owning  (as
determined  in  accordance  with Section 13(d) of the Exchange Act and the rules
thereunder)  in  excess of 9.9% of the then  issued  and  outstanding  shares of
Common Stock, including shares issuable upon exercise of the Warrant held by the
Holder after application of this Section; provided,  however, that upon a holder
of this Warrant providing the Issuer with a Waiver Notice that such holder would
like to waive this Section 7(b) with regard to any or all shares of Common Stock

                                      -75-
<PAGE>

issuable upon  exercise of this Warrant,  this Section 7(b) shall be of no force
or effect with regard to those shares of Warrant Stock  referenced in the Waiver
Notice;  provided,  further, that this provision shall be of no further force or
effect during the sixty-one  (61) days  immediately  preceding the expiration of
the term of this Warrant.

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

                  "Additional Shares of Common Stock" means all shares of Common
         Stock  issued by the Issuer  after the  Original  Issue  Date,  and all
         shares of Other Common, if any, issued by the Issuer after the Original
         Issue Date,  except:  (i)  securities  issued  (other than for cash) in
         connection  with  a  merger,   acquisition,   or  consolidation,   (ii)
         securities  issued  pursuant  to a bona fide firm  underwritten  public
         offering of the Issuer's  securities,  (iii) securities issued pursuant
         to the conversion or exercise of convertible or exercisable  securities
         issued or outstanding on or prior to the date hereof or issued pursuant
         to the  Purchase  Agreement,  (iv) the Warrant  Stock,  (v)  securities
         issued  in  connection  with bona fide  strategic  license  agreements,
         partnering  arrangements or other  consulting  services so long as such
         issuances are not for the purpose of raising capital, (vi) Common Stock
         issued or the  issuance  or grants of options or  warrants  to purchase
         Common  Stock to any  employer,  officer,  director  or  advisor of the
         Issuer for a period of two (2) years  following the Original Issue Date
         so long as the  exercise  price of such  options or warrants is greater
         than $0.75,  (vii) any warrants  issued to the placement  agent and its
         designees for the transactions  contemplated by the Purchase Agreement,
         and (viii)  the  payment of any  accrued  interest  in shares of Common
         Stock  pursuant  to the  Notes,  and  (ix)  securities  issued  to CNET
         Networks, Inc.

                  "Board" shall mean the Board of Directors of the Issuer.

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

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

                  "Common  Stock" means the Common  Stock,  $0.001 par value per
         share,  of the Issuer and any other Capital Stock into which such stock
         may hereafter be changed.

                                      -76-
<PAGE>

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

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

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

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

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

                  "Issuer" means FinancialContent, Inc., a Delaware corporation,
         and its successors.

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

                  "Notes" means the senior secured convertible  promissory notes
         issued  by  the  Issuer  to the  Purchasers  pursuant  to the  Purchase
         Agreement.

                  "Original Issue Date" means February 13, 2006.

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

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

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

                                      -77-
<PAGE>

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

                  "Per Share Market Value" means on any particular  date (a) the
         last  closing  bid price per share of the Common  Stock on such date on
         the OTC Bulletin Board or another registered national stock exchange on
         which the Common Stock is then listed,  or if there is no such price on
         such date,  then the  closing bid price on such  exchange or  quotation
         system on the date nearest  preceding  such date,  or (b) if the Common
         Stock is not listed then on the OTC  Bulletin  Board or any  registered
         national  stock  exchange,  the last  closing  bid price for a share of
         Common  Stock in the  over-the-counter  market,  as reported by the OTC
         Bulletin  Board or in the National  Quotation  Bureau  Incorporated  or
         similar organization or agency succeeding to its functions of reporting
         prices) at the close of  business  on such  date,  or (c) if the Common
         Stock is not then  reported by the OTC  Bulletin  Board or the National
         Quotation  Bureau  Incorporated  (or  similar  organization  or  agency
         succeeding to its functions of reporting  prices),  then the average of
         the "Pink Sheet"  quotes for the five (5) Trading Days  preceding  such
         date of determination,  or (d) if the Common Stock is not then publicly
         traded the fair market value of a share of Common  Stock as  determined
         by an  Independent  Appraiser  selected  in good faith by the  Majority
         Holders;  provided,  however,  that the  Issuer,  after  receipt of the
         determination  by such Independent  Appraiser,  shall have the right to
         select an additional  Independent  Appraiser,  in which case,  the fair
         market  value  shall be equal to the average of the  determinations  by
         each  such  Independent  Appraiser;  and  provided,  further  that  all
         determinations  of the Per Share  Market  Value shall be  appropriately
         adjusted  for any  stock  dividends,  stock  splits  or  other  similar
         transactions during such period. The determination of fair market value
         by an Independent  Appraiser  shall be based upon the fair market value
         of the Issuer  determined on a going concern basis as between a willing
         buyer and a willing seller and taking into account all relevant factors
         determinative  of value, and shall be final and binding on all parties.
         In determining  the fair market value of any shares of Common Stock, no
         consideration  shall be given to any  restrictions  on  transfer of the
         Common Stock  imposed by  agreement  or by federal or state  securities
         laws, or to the existence or absence of, or any  limitations on, voting
         rights.

                  "Purchase  Agreement"  means  the  Note and  Warrant  Purchase
         Agreement  dated as of  February  13,  2006,  among the  Issuer and the
         Purchasers.

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

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

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

                                      -78-
<PAGE>

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

                  "Term" has the meaning specified in Section 1 hereof.

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

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

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

                  "Warrant  Price"  initially  means $1.00, as such price may be
         adjusted  from  time to time  as  shall  result  from  the  adjustments
         specified in this Warrant, including Section 4 hereto.

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

                  "Warrant  Stock" means Common Stock  issuable upon exercise of
         any Warrant or Warrants or otherwise  issuable  pursuant to any Warrant
         or Warrants.

         9. Other Notices. In case at any time:

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

                                      -79-
<PAGE>

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

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

                              (D) there shall be any capital  reorganization  by
                                  the Issuer; or

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

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

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

         10. Amendment and Waiver. Any term, covenant, agreement or condition in
this  Warrant may be amended,  or  compliance  therewith  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  by a written instrument or written instruments  executed by the
Issuer and the Majority Holders;  provided,  however,  that no such amendment or
waiver  shall  reduce the Warrant  Share  Number,  increase  the Warrant  Price,
shorten the period  during  which this  Warrant may be  exercised  or modify any
provision of this Section 10 without the consent of the Holder of this  Warrant.
No consideration shall be offered or paid to any person to amend or consent to a
waiver  or  modification  of any  provision  of this  Warrant  unless  the  same
consideration is also offered to all holders of the Warrants.

                                      -80-
<PAGE>

         11. Governing Law; Jurisdiction.  This Warrant shall be governed by and
construed in accordance with the internal laws of the State of New York, without
giving  effect to any of the conflicts of law  principles  which would result in
the  application of the substantive  law of another  jurisdiction.  This Warrant
shall not be  interpreted or construed  with any  presumption  against the party
causing this  Warrant to be drafted.  The Issuer and the Holder agree that venue
for any dispute  arising under this Warrant will lie exclusively in the state or
federal courts located in New York County, New York, and the parties irrevocably
waive any right to raise forum non  conveniens  or any other  argument  that New
York is not the proper venue. The Issuer and the Holder  irrevocably  consent to
personal  jurisdiction in the state and federal courts of the state of New York.
The  Issuer and the Holder  consent  to process  being  served in any such suit,
action or  proceeding  by mailing a copy thereof to such party at the address in
effect for notices to it under this Warrant and agrees that such  service  shall
constitute good and sufficient service of process and notice thereof. Nothing in
this  Section 11 shall  affect or limit any right to serve  process in any other
manner  permitted  by law.  The  Issuer  and the  Holder  hereby  agree that the
prevailing party in any suit, action or proceeding arising out of or relating to
this Warrant or the Purchase  Agreement,  shall be entitled to reimbursement for
reasonable  legal fees from the  non-prevailing  party. The parties hereby waive
all rights to a trial by jury.

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

If to the Issuer:          FinancialContent, Inc.
                                    400 Oyster Point Boulevard, Suite 435
                                    So. San Francisco, California 94080
                                    Attention: Chief Executive Officer
                                    Tel. No.: (650) 837-9850
                                    Fax No.: (650) 745-2677

with copies (which copies
shall not constitute notice)
to:                                 Dave Neville, Esq.

                                    Tel. No.: Fax No.:

If to any Holder:                   At the address of such Holder
                                    set forth on  Exhibit  A to this  Agreement,
                                    with copies to Holder's counsel as set forth
                                    on Exhibit A or as  specified  in writing by
                                    such Holder with copies to:

                                      -81-
<PAGE>

with copies (which copies
shall not constitute notice)
to:                                 Kramer Levin Naftalis & Frankel LLP
                                    1177 Avenue of the Americas
                                    New York, New York 10036
                                    Attention: Christopher S. Auguste
                                    Tel. No.: (212) 715-9100
                                    Fax No.: (212) 715-8000

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

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

         14.  Remedies.  The Issuer  stipulates  that the remedies at law of the
Holder of this Warrant in the event of any default or threatened  default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that,  to the fullest  extent  permitted by
law,  such  terms may be  specifically  enforced  by a decree  for the  specific
performance  of any agreement  contained  herein or by an  injunction  against a
violation of any of the terms hereof or otherwise.

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

         16.  Modification and Severability.  If, in any action before any court
or agency  legally  empowered to enforce any  provision  contained  herein,  any
provision  hereof is found to be  unenforceable,  then such  provision  shall be
deemed modified to the extent  necessary to make it enforceable by such court or
agency.  If any such provision is not  enforceable as set forth in the preceding
sentence,  the  unenforceability  of such  provision  shall not affect the other
provisions  of this  Warrant,  but this  Warrant  shall be  construed as if such
unenforceable provision had never been contained herein.

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -82-
<PAGE>

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

                                  FINANCIALCONTENT, INC.

                                  By: /S/ Wing Yu
                                      -------------
                                  Name: Wing Yu
                                  Title:    Chief Executive Officer

                                      -83-
<PAGE>

                                  EXERCISE FORM
                                SERIES A WARRANT

                             FINANCIALCONTENT, INC.

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

Dated: _________________            Signature        ___________________________

                                    Address  ___________________________________

                                             ___________________________________

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

___________________________________________________

                                   ASSIGNMENT

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

Dated: _________________            Signature        ___________________________

                                            Address  ___________________________

                                                     ___________________________

                               PARTIAL ASSIGNMENT

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

Dated: _________________            Signature        ___________________________

                                            Address  ___________________________

                                                     ___________________________

                                      -84-
<PAGE>

                           FOR USE BY THE ISSUER ONLY:

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

                                      -85-
<PAGE>

                                    EXHIBIT D
                            FORM OF SERIES B WARRANT

                                      -86-
<PAGE>

THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE  HEREOF HAVE
NOT  BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED  (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED
OR OTHERWISE  DISPOSED OF UNLESS  REGISTERED  UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF
COUNSEL  REASONABLY  SATISFACTORY  TO  THE  ISSUER  THAT  REGISTRATION  OF  SUCH
SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED.

                          SERIES B WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                             FINANCIALCONTENT, INC.

                            Expires February 13, 2011

No.: W-B-06- __                                   Number of Shares: ___________
Date of Issuance: February 13, 2006

         FOR VALUE RECEIVED, the undersigned, FinancialContent, Inc., a Delaware
corporation  (together with its successors  and assigns,  the "Issuer"),  hereby
certifies  that  _______________________________  or its  registered  assigns is
entitled  to  subscribe  for and  purchase,  during  the  Term  (as  hereinafter
defined),  up  to  ____________________________________  (_____________)  shares
(subject to adjustment as hereinafter provided) of the duly authorized,  validly
issued, fully paid and non-assessable Common Stock of the Issuer, at an exercise
price per share equal to the Warrant Price then in effect, subject,  however, to
the  provisions  and  upon the  terms  and  conditions  hereinafter  set  forth.
Capitalized  terms used in this Warrant and not otherwise  defined  herein shall
have the respective meanings specified in Section 8 hereof.

         1. Term.  The term of this Warrant shall  commence on February 13, 2006
and shall expire at 6:00 p.m.,  eastern  time, on February 13, 2011 (such period
being the "Term").

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

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

         (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part,  by the  surrender  of this Warrant  (with the  exercise  form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment  to the  Issuer  of an  amount of  consideration  therefor  equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of

                                      -87-
<PAGE>

shares of  Warrant  Stock  with  respect  to which  this  Warrant  is then being
exercised,  payable at such Holder's  election (i) by certified or official bank
check or by wire  transfer  to an  account  designated  by the  Issuer,  (ii) by
"cashless  exercise" in accordance with the provisions of subsection (c) of this
Section  2, but only when a  registration  statement  under the  Securities  Act
providing for the resale of the Warrant Stock is not then in effect, or (iii) by
a combination of the foregoing methods of payment selected by the Holder of this
Warrant.

         (c) Cashless  Exercise.  Notwithstanding  any provisions  herein to the
contrary and  commencing  one (1) year  following the Original Issue Date if (i)
the Per Share  Market  Value of one share of Common  Stock is  greater  than the
Warrant  Price  (at the  date of  calculation  as set  forth  below)  and (ii) a
registration  statement under the Securities Act providing for the resale of the
Warrant Stock is not then in effect by the date such  registration  statement is
required to be  effective  pursuant to the  Registration  Rights  Agreement  (as
defined in the  Purchase  Agreement)  or not  effective  at any time  during the
Effectiveness  Period  (as  defined in the  Registration  Rights  Agreement)  in
accordance  with the  terms of the  Registration  Rights  Agreement,  in lieu of
exercising this Warrant by payment of cash, the Holder may exercise this Warrant
by a cashless  exercise  and shall  receive the number of shares of Common Stock
equal to an amount (as  determined  below) by  surrender  of this Warrant at the
principal  office of the Issuer  together with the properly  endorsed  Notice of
Exercise in which event the Issuer  shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

                  X = Y - (A)(Y)
                          -------
                            B

Where             X =      the number of shares of Common Stock to be issued to
                           the Holder.

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

                  A =      the Warrant Price.

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

         (d)  Issuance of Stock  Certificates.  In the event of any  exercise of
this Warrant in accordance with and subject to the terms and conditions  hereof,
(i) certificates for the shares of Warrant Stock so purchased shall be delivered
to the Holder hereof within a reasonable  time, not exceeding  three (3) Trading
Days after such exercise (the "Delivery  Date") or, at the request of the Holder
(provided that a registration  statement  under the Securities Act providing for
the resale of the Warrant Stock is then in effect),  issued and delivered to the
Depository  Trust Company ("DTC") account on the Holder's behalf via the Deposit
Withdrawal  Agent  Commission  System  ("DWAC")  within a reasonable  time,  not
exceeding three (3) Trading Days after such exercise (provided, however that the
Issuer or its  transfer  agent shall only be  obligated to issue and deliver the
shares  to the DTC on the  Holder's  behalf  via  DWAC or  certificates  free of
restrictive  legends if such exercise is in connection with a sale (as evidenced
by documentation furnished to and reasonably satisfactory to the Issuer) and the

                                      -88-
<PAGE>

registration  statement  providing  for  the  resale  of the  Warrant  Stock  is
effective,  and the Holder  hereof  shall be deemed for all  purposes  to be the
holder  of the  shares  of  Warrant  Stock so  purchased  as of the date of such
exercise and (ii) unless this Warrant has  expired,  a new Warrant  representing
the  number of shares of  Warrant  Stock,  if any,  with  respect  to which this
Warrant shall not then have been exercised  (less any amount thereof which shall
have been  canceled  in  payment  or partial  payment  of the  Warrant  Price as
hereinabove  provided) shall also be issued to the Holder hereof at the Issuer's
expense within such time.

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

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

                                      -89-
<PAGE>

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

         (h) Compliance with Securities Laws.

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

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

                  THIS  WARRANT  AND THE SHARES OF COMMON  STOCK  ISSUABLE  UPON
         EXERCISE  HEREOF HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE  "SECURITIES  ACT") OR ANY STATE  SECURITIES LAWS
         AND MAY NOT BE  SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED  OF  UNLESS
         REGISTERED   UNDER  THE  SECURITIES  ACT  AND  UNDER  APPLICABLE  STATE
         SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL
         REASONABLY  SATISFACTORY  TO  THE  ISSUER  THAT  REGISTRATION  OF  SUCH
         SECURITIES  UNDER  THE  SECURITIES  ACT AND  UNDER  THE  PROVISIONS  OF
         APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

                  (iii)  The   Issuer   agrees  to  reissue   this   Warrant  or
         certificates  representing any of the Warrant Stock, without the legend
         set forth  above if at such time,  prior to making any  transfer of any
         such  securities,  the Holder shall give  written  notice to the Issuer
         describing  the  manner  and  terms  of such  transfer.  Such  proposed
         transfer  will not be  effected  until:  (a)  either (i) the Issuer has
         received an opinion of counsel  reasonably  satisfactory to the Issuer,
         to the  effect  that the  registration  of such  securities  under  the
         Securities  Act  is not  required  in  connection  with  such  proposed
         transfer,  (ii) a  registration  statement  under  the  Securities  Act
         covering  such proposed  disposition  has been filed by the Issuer with
         the Securities and Exchange  Commission and has become  effective under
         the  Securities  Act,  (iii) the Issuer  has  received  other  evidence
         reasonably  satisfactory  to the  Issuer  that  such  registration  and
         qualification  under the Securities Act and state  securities  laws are
         not required,  or (iv) the Holder  provides the Issuer with  reasonable
         assurances  that such  security can be sold  pursuant to Rule 144 under
         the  Securities  Act;  and (b) either (i) the  Issuer has  received  an

                                      -90-
<PAGE>

         opinion of counsel reasonably satisfactory to the Issuer, to the effect
         that  registration or qualification  under the securities or "blue sky"
         laws of any state is not  required  in  connection  with such  proposed
         disposition,  or (ii) compliance with  applicable  state  securities or
         "blue sky" laws has been  effected  or a valid  exemption  exists  with
         respect  thereto.  The Issuer  will  respond to any such  notice from a
         holder  within  three (3)  business  days.  In the case of any proposed
         transfer  under  this  Section  2(h),  the Issuer  will use  reasonable
         efforts to comply with any such  applicable  state  securities or "blue
         sky"  laws,  but shall in no event be  required,  (x) to  qualify to do
         business in any state where it is not then  qualified,  (y) to take any
         action  that  would  subject  it to tax or to the  general  service  of
         process  in any state  where it is not then  subject,  or (z) to comply
         with  state  securities  or "blue  sky"  laws of any  state  for  which
         registration  by  coordination  is  unavailable  to  the  Issuer.   The
         restrictions  on transfer  contained  in this  Section 2(h) shall be in
         addition to, and not by way of limitation of, any other restrictions on
         transfer  contained in any other  section of this  Warrant.  Whenever a
         certificate  representing the Warrant Stock is required to be issued to
         a  the  Holder  without  a  legend,  in  lieu  of  delivering  physical
         certificates  representing  the Warrant  Stock,  provided  the Issuer's
         transfer agent is  participating  in the DTC Fast Automated  Securities
         Transfer  program,  the Issuer shall use its reasonable best efforts to
         cause its transfer agent to  electronically  transmit the Warrant Stock
         to the Holder by  crediting  the account of the  Holder's  Prime Broker
         with DTC through its DWAC system (to the extent not  inconsistent  with
         any provisions of this Warrant or the Purchase Agreement).

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

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

         (a) Stock Fully Paid. The Issuer  represents,  warrants,  covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise  hereunder  will,  when issued in accordance  with the
terms of this  Warrant,  be duly  authorized,  validly  issued,  fully  paid and
nonassessable  and free from all taxes,  liens and charges created by or through
the  Issuer.  The Issuer  further  covenants  and agrees  that during the period
within  which this Warrant may be  exercised,  the Issuer will at all times have
authorized  and  reserved  for the  purpose of  issuance  upon  exercise of this
Warrant a number of shares of Common Stock equal to at least one hundred  twenty
percent (120%) of the aggregate  number of shares of Common Stock to provide for
the exercise of this Warrant.

         (b) Reservation.  If any shares of Common Stock required to be reserved
for issuance  upon exercise of this Warrant or as otherwise  provided  hereunder
require registration or qualification with any governmental  authority under any
federal or state law before  such  shares may be so issued,  the Issuer  will in
good faith use its best efforts as  expeditiously  as possible at its expense to
cause such shares to be duly  registered or qualified.  If the Issuer shall list
any shares of Common Stock on any securities  exchange or market it will, at its
expense,  list thereon,  maintain and increase when necessary such listing,  of,
all  shares of Warrant  Stock from time to time  issued  upon  exercise  of this
Warrant or as otherwise provided hereunder (provided that such Warrant Stock has

                                      -91-
<PAGE>

been  registered  pursuant to a registration  statement under the Securities Act
then in effect),  and, to the extent permissible under the applicable securities
exchange  rules,  all  unissued  shares of Warrant  Stock  which are at any time
issuable  hereunder,  so long as any shares of Common  Stock shall be so listed.
The Issuer will also so list on each  securities  exchange  or market,  and will
maintain such listing of, any other  securities which the Holder of this Warrant
shall be entitled to receive  upon the  exercise of this  Warrant if at the time
any securities of the same class shall be listed on such securities  exchange or
market by the Issuer.

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

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

         4.  Adjustment  of Warrant  Price.  The price at which  such  shares of
Warrant Stock may be purchased upon exercise of this Warrant shall be subject to
adjustment  from time to time as set forth in this  Section 4. The Issuer  shall
give the Holder notice of any event described below which requires an adjustment
pursuant to this Section 4 in accordance with the notice provisions set forth in
Section 5.
                                      -92-
<PAGE>

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

                  (i) In case the Issuer after the Original  Issue Date shall do
         any of the following (each, a "Triggering  Event"):  (a) consolidate or
         merge with or into any other  Person  and the  Issuer  shall not be the
         continuing or surviving corporation of such consolidation or merger, or
         (b)  permit  any other  Person to  consolidate  with or merge  into the
         Issuer and the Issuer shall be the continuing or surviving  Person but,
         in connection with such  consolidation or merger,  any Capital Stock of
         the Issuer  shall be changed into or exchanged  for  Securities  of any
         other  Person or cash or any other  property,  or (c)  transfer  all or
         substantially  all of its properties or assets to any other Person,  or
         (d) effect a capital  reorganization or reclassification of its Capital
         Stock,  then,  and in the case of each such  Triggering  Event,  proper
         provision  shall be made so that,  upon the  basis and the terms and in
         the manner  provided in this Warrant,  the Holder of this Warrant shall
         be entitled upon the exercise hereof at any time after the consummation
         of such  Triggering  Event, to the extent this Warrant is not exercised
         prior to such  Triggering  Event,  to receive at the  Warrant  Price in
         effect  at the  time  immediately  prior  to the  consummation  of such
         Triggering  Event  in lieu  of the  Common  Stock  issuable  upon  such
         exercise  of  this  Warrant  prior  to  such  Triggering   Event,   the
         Securities,  cash and  property  to which such  Holder  would have been
         entitled upon the  consummation of such Triggering Event if such Holder
         had exercised the rights represented by this Warrant  immediately prior
         thereto  (including  the  right of a  shareholder  to elect the type of
         consideration  it will  receive upon a  Triggering  Event),  subject to
         adjustments  (subsequent to such corporate action) as nearly equivalent
         as possible to the  adjustments  provided for elsewhere in this Section
         4. Notwithstanding the foregoing to the contrary,  this Section 4(a)(i)
         shall  only  apply  if  the  surviving  entity  pursuant  to  any  such
         Triggering Event is a public company that is registered pursuant to the
         Securities  Exchange Act of 1934,  as amended,  and its common stock is
         listed or quoted on a national  exchange or the OTC Bulletin  Board. In
         the event that the  surviving  entity  pursuant to any such  Triggering
         Event  is not a  public  company  that is  registered  pursuant  to the
         Securities Exchange Act of 1934, as amended, or its common stock is not
         listed or quoted on a national exchange or the OTC Bulletin Board, then
         the Holder  shall  have the right to demand  that the Issuer pay to the
         Holder an amount  equal to the value of this  Warrant  according to the
         Black-Scholes formula.

                  (ii) Notwithstanding anything contained in this Warrant to the
         contrary and so long as the surviving entity pursuant to any Triggering
         Event is a public company that is registered pursuant to the Securities
         Exchange  Act of 1934,  as amended,  and its common  stock is listed or
         quoted on a national  exchange or the OTC Bulletin  Board, a Triggering
         Event  shall  not  be  deemed  to  have   occurred  if,  prior  to  the
         consummation  thereof, each Person (other than the Issuer) which may be
         required to deliver any Securities,  cash or property upon the exercise
         of this Warrant as provided herein shall assume, by written  instrument
         delivered  to,  and  reasonably  satisfactory  to,  the  Holder of this
         Warrant,  (A) the  obligations of the Issuer under this Warrant (and if
         the Issuer shall survive the  consummation  of such  Triggering  Event,
         such  assumption  shall be in  addition  to, and shall not  release the
         Issuer  from,  any  continuing  obligations  of the  Issuer  under this
         Warrant)  and  (B) the  obligation  to  deliver  to  such  Holder  such
         Securities,  cash or  property  as, in  accordance  with the  foregoing

                                      -93-
<PAGE>

         provisions  of this  subsection  (a),  such Holder shall be entitled to
         receive,  and such Person shall have similarly delivered to such Holder
         an  opinion  of  counsel  for  such  Person,  which  counsel  shall  be
         reasonably  satisfactory  to  such  Holder,  or in the  alternative,  a
         written  acknowledgement  executed by the President or Chief  Financial
         Officer of the  Issuer,  stating  that this  Warrant  shall  thereafter
         continue  in full  force and effect  and the terms  hereof  (including,
         without limitation, all of the provisions of this subsection (a)) shall
         be applicable to the Securities, cash or property which such Person may
         be  required  to  deliver  upon any  exercise  of this  Warrant  or the
         exercise of any rights pursuant hereto.

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

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

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

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

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

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

                           (i) cash (other than a cash  dividend  payable out of
         earnings  or  earned  surplus  legally  available  for the  payment  of
         dividends under the laws of the  jurisdiction of  incorporation  of the
         Issuer),

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

                           (iii) any warrants or other  rights to subscribe  for
         or purchase any evidences of its  indebtedness,  any shares of stock of

                                      -94-
<PAGE>

         any class or any other securities or property of any nature  whatsoever
         (other than cash,  Common Stock  Equivalents  or  Additional  Shares of
         Common Stock),

then (1) the  number  of  shares of Common  Stock  for  which  this  Warrant  is
exercisable  shall be  adjusted  to equal the product of the number of shares of
Common Stock for which this  Warrant is  exercisable  immediately  prior to such
adjustment  multiplied by a fraction (A) the numerator of which shall be the Per
Share Market Value of Common Stock at the date of taking such record and (B) the
denominator  of which  shall be such Per Share  Market  Value  minus the  amount
allocable to one share of Common Stock of any such cash so distributable  and of
the fair value (as  determined  in good faith by the Board of  Directors  of the
Issuer and supported by an opinion from an investment banking firm of recognized
national standing acceptable to (but not affiliated with) the Holder) of any and
all such  evidences  of  indebtedness,  shares of  stock,  other  securities  or
property or warrants or other  subscription or purchase rights so distributable,
and (2) the  Warrant  Price then in effect  shall be  adjusted  to equal (A) the
Warrant Price then in effect  multiplied by the number of shares of Common Stock
for which  this  Warrant  is  exercisable  immediately  prior to the  adjustment
divided  by (B) the number of shares of Common  Stock for which this  Warrant is
exercisable immediately after such adjustment.  A reclassification of the Common
Stock  (other  than a change in par value,  or from par value to no par value or
from no par value to par value)  into  shares of Common  Stock and shares of any
other class of stock shall be deemed a distribution by the Issuer to the holders
of its  Common  Stock of such  shares of such  other  class of stock  within the
meaning of this  Section  4(c) and, if the  outstanding  shares of Common  Stock
shall be changed into a larger or smaller  number of shares of Common Stock as a
part of such  reclassification,  such change  shall be deemed a  subdivision  or
combination,  as the case may be, of the  outstanding  shares  of  Common  Stock
within the meaning of Section 4(b).

         (d) Issuance of Additional Shares of Common Stock.

                  (i) In the event the Issuer  shall at any time  following  the
Original Issue Date issue any Additional  Shares of Common Stock (otherwise than
as provided in the foregoing  subsections (a) through (c) of this Section 4), at
a price  per share  less  than the  Warrant  Price  then in  effect  or  without
consideration,  then the Warrant Price upon each such issuance shall be adjusted
to that price  determined by  multiplying  the Warrant Price then in effect by a
fraction:
                           (A) the  numerator of which shall be equal to the sum
                  of (x) the  number  of  shares  of  Outstanding  Common  Stock
                  immediately prior to the issuance of such Additional Shares of
                  Common  Stock  plus (y) the  number of shares of Common  Stock
                  (rounded  to the  nearest  whole  share)  which the  aggregate
                  consideration  for the total number of such Additional  Shares
                  of Common Stock so issued would  purchase at a price per share
                  equal to the Warrant Price then in effect, and

                           (B) the  denominator  of which  shall be equal to the
                  number of shares of Outstanding Common Stock immediately after
                  the issuance of such Additional Shares of Common Stock.

                  (ii) No adjustment of the number of shares of Common Stock for
which this Warrant  shall be  exercisable  shall be made under  paragraph (i) of
Section  4(d) upon the issuance of any  Additional  Shares of Common Stock which

                                      -95-
<PAGE>

are issued pursuant to the exercise of any Common Stock Equivalents, if any such
adjustment  shall  previously  have been made upon the  issuance  of such Common
Stock Equivalents (or upon the issuance of any warrant or other rights therefor)
pursuant to Section 4(e).

(g) Issuance of Common Stock Equivalents.  If at any time the Issuer shall issue
or sell any Common Stock  Equivalents,  whether or not the rights to exchange or
convert  thereunder are  immediately  exercisable,  and the aggregate  price per
share for which Common Stock is issuable  upon such  conversion or exchange plus
the  consideration  received by the Issuer for  issuance  of such  Common  Stock
Equivalent  divided by the number of shares of Common Stock issuable pursuant to
such Common Stock  Equivalent  (the "Aggregate Per Common Share Price") shall be
less than the Warrant  Price then in effect,  or if, after any such  issuance of
Common Stock  Equivalents,  the price per share for which  Additional  Shares of
Common Stock may be issuable  thereafter is amended or adjusted,  and such price
as so amended  shall make the  Aggregate Per Common Share Price be less than the
Warrant Price in effect at the time of such  amendment or  adjustment,  then the
Warrant Price upon each such issuance or amendment shall be adjusted as provided
in Section 4(d). No further adjustment of the Warrant Price then in effect shall
be  made  under  this  Section  4(e)  upon  the  issuance  of any  Common  Stock
Equivalents  which are issued  pursuant to the exercise of any warrants or other
subscription  or  purchase  rights  therefor,   if  any  such  adjustment  shall
previously  have been made upon the  issuance of such  warrants or other  rights
pursuant to this Section 4(e). No further  adjustments of the Warrant Price then
in  effect  shall  be made  upon the  actual  issue of such  Common  Stock  upon
conversion or exchange of such Common Stock Equivalents.

(h) Superseding  Adjustment.  If, at any time after any adjustment of the number
of shares of Common Stock for which this Warrant is exercisable  and the Warrant
Price then in effect shall have been made pursuant to Section 4(e) as the result
of any  issuance  of  Common  Stock  Equivalents,  and  (i)  such  Common  Stock
Equivalents,  or the  right of  conversion  or  exchange  in such  Common  Stock
Equivalents,  shall  expire,  and  all or a  portion  of such  or the  right  of
conversion  or exchange  with  respect to all or a portion of such Common  Stock
Equivalents,  as the case may be,  shall  not have been  exercised,  or (ii) the
consideration  per share for which shares of Common Stock are issuable  pursuant
to such  Common  Stock  Equivalents  shall  be  increased,  then  such  previous
adjustment  shall be rescinded and annulled and the Additional  Shares of Common
Stock which were deemed to have been issued by virtue of the computation made in
connection  with the  adjustment  so rescinded  and annulled  shall no longer be
deemed to have been issued by virtue of such computation. Upon the occurrence of
an event set forth in this Section 4(f), there shall be a recomputation  made of
the effect of such Common  Stock  Equivalents  on the basis of: (i) treating the
number of  Additional  Shares of Common  Stock  theretofore  actually  issued or
issuable  pursuant to the previous  exercise of Common Stock  Equivalents or any
such right of conversion or exchange, as having been issued on the date or dates
of any such exercise and for the consideration  actually received and receivable
therefor,  and (ii) treating any such Common Stock Equivalents which then remain
outstanding as having been granted or issued  immediately after the time of such
increase of the  consideration  per share for which Additional  Shares of Common
Stock  are  issuable  under  such  Common  Stock  Equivalents;  whereupon  a new
adjustment  of the number of shares of Common  Stock for which  this  Warrant is
exercisable  and the  Warrant  Price  then in  effect  shall be made,  which new
adjustment shall supersede the previous adjustment so rescinded and annulled.

                                      -96-
<PAGE>

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

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

                                      -97-
<PAGE>

the Issuer for consideration  which covers both, the  consideration  computed as
provided in this Section  4(h)(i) shall be allocated  among such  securities and
assets as determined in good faith by the Board.

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

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

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

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

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

                                      -98-
<PAGE>

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

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

         7. Ownership Cap and Certain Exercise Restrictions. (a) Notwithstanding
anything to the contrary set forth in this  Warrant,  at no time may a Holder of
this Warrant exercise this Warrant if the number of shares of Common Stock to be
issued  pursuant to such exercise would exceed,  when  aggregated with all other
shares of Common  Stock owned by such Holder at such time,  the number of shares
of Common  Stock  which  would  result in such  Holder  beneficially  owning (as
determined  in  accordance  with Section 13(d) of the Exchange Act and the rules
thereunder)  in  excess of 4.9% of the then  issued  and  outstanding  shares of
Common Stock;  provided,  however,  that upon a holder of this Warrant providing
the Issuer with sixty-one (61) days notice  (pursuant to Section 12 hereof) (the
"Waiver  Notice")  that such Holder  would like to waive this  Section 7(a) with
regard to any or all  shares of Common  Stock  issuable  upon  exercise  of this
Warrant, this Section 7(a) will be of no force or effect with regard to all or a
portion of the Warrant referenced in the Waiver Notice; provided,  further, that
this provision  shall be of no further force or effect during the sixty-one (61)
days immediately preceding the expiration of the term of this Warrant.

                  (b) The Holder may not exercise  the Warrant  hereunder to the
extent  such  exercise  would  result  in the  Holder  beneficially  owning  (as
determined  in  accordance  with Section 13(d) of the Exchange Act and the rules
thereunder)  in  excess of 9.9% of the then  issued  and  outstanding  shares of
Common Stock, including shares issuable upon exercise of the Warrant held by the
Holder after application of this Section; provided,  however, that upon a holder
of this Warrant providing the Issuer with a Waiver Notice that such holder would
like to waive this Section 7(b) with regard to any or all shares of Common Stock

                                      -99-
<PAGE>

issuable upon  exercise of this Warrant,  this Section 7(b) shall be of no force
or effect with regard to those shares of Warrant Stock  referenced in the Waiver
Notice;  provided,  further, that this provision shall be of no further force or
effect during the sixty-one  (61) days  immediately  preceding the expiration of
the term of this Warrant.

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

                  "Additional Shares of Common Stock" means all shares of Common
         Stock  issued by the Issuer  after the  Original  Issue  Date,  and all
         shares of Other Common, if any, issued by the Issuer after the Original
         Issue Date,  except:  (i)  securities  issued  (other than for cash) in
         connection  with  a  merger,   acquisition,   or  consolidation,   (ii)
         securities  issued  pursuant  to a bona fide firm  underwritten  public
         offering of the Issuer's  securities,  (iii) securities issued pursuant
         to the conversion or exercise of convertible or exercisable  securities
         issued or outstanding on or prior to the date hereof or issued pursuant
         to the  Purchase  Agreement,  (iv) the Warrant  Stock,  (v)  securities
         issued in connection  with bona fide  strategic  license  agreements or
         other partnering arrangements so long as such issuances are not for the
         purpose of raising capital, (vi) Common Stock issued or the issuance or
         grants of options or warrants to purchase Common Stock to any employer,
         officer,  director  or  advisor  of the  Issuer for a period of two (2)
         years  following the Original  Issue Date so long as the exercise price
         of such options or warrants is greater  than $0.75,  (vii) any warrants
         issued to the placement  agent and its  designees for the  transactions
         contemplated by the Purchase  Agreement,  and (viii) the payment of any
         accrued  interest in shares of Common Stock pursuant to the Notes,  and
         (ix) securities issued to CNET Networks, Inc.

                  "Board" shall mean the Board of Directors of the Issuer.

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

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

                  "Common  Stock" means the Common  Stock,  $0.001 par value per
         share,  of the Issuer and any other Capital Stock into which such stock
         may hereafter be changed.

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

                                     -100-
<PAGE>

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

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

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

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

                  "Issuer" means FinancialContent, Inc., a Delaware corporation,
         and its successors.

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

                  "Notes" means the senior secured convertible  promissory notes
         issued  by  the  Issuer  to the  Purchasers  pursuant  to the  Purchase
         Agreement.

                  "Original Issue Date" means February 13, 2006.

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

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

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

                                     -101-
<PAGE>

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

                  "Per Share Market Value" means on any particular  date (a) the
         last  closing  bid price per share of the Common  Stock on such date on
         the OTC Bulletin Board or another registered national stock exchange on
         which the Common Stock is then listed,  or if there is no such price on
         such date,  then the  closing bid price on such  exchange or  quotation
         system on the date nearest  preceding  such date,  or (b) if the Common
         Stock is not listed then on the OTC  Bulletin  Board or any  registered
         national  stock  exchange,  the last  closing  bid price for a share of
         Common  Stock in the  over-the-counter  market,  as reported by the OTC
         Bulletin  Board or in the National  Quotation  Bureau  Incorporated  or
         similar organization or agency succeeding to its functions of reporting
         prices) at the close of  business  on such  date,  or (c) if the Common
         Stock is not then  reported by the OTC  Bulletin  Board or the National
         Quotation  Bureau  Incorporated  (or  similar  organization  or  agency
         succeeding to its functions of reporting  prices),  then the average of
         the "Pink Sheet"  quotes for the five (5) Trading Days  preceding  such
         date of determination,  or (d) if the Common Stock is not then publicly
         traded the fair market value of a share of Common  Stock as  determined
         by an  Independent  Appraiser  selected  in good faith by the  Majority
         Holders;  provided,  however,  that the  Issuer,  after  receipt of the
         determination  by such Independent  Appraiser,  shall have the right to
         select an additional  Independent  Appraiser,  in which case,  the fair
         market  value  shall be equal to the average of the  determinations  by
         each  such  Independent  Appraiser;  and  provided,  further  that  all
         determinations  of the Per Share  Market  Value shall be  appropriately
         adjusted  for any  stock  dividends,  stock  splits  or  other  similar
         transactions during such period. The determination of fair market value
         by an Independent  Appraiser  shall be based upon the fair market value
         of the Issuer  determined on a going concern basis as between a willing
         buyer and a willing seller and taking into account all relevant factors
         determinative  of value, and shall be final and binding on all parties.
         In determining  the fair market value of any shares of Common Stock, no
         consideration  shall be given to any  restrictions  on  transfer of the
         Common Stock  imposed by  agreement  or by federal or state  securities
         laws, or to the existence or absence of, or any  limitations on, voting
         rights.

                  "Purchase  Agreement"  means  the  Note and  Warrant  Purchase
         Agreement  dated as of  February  13,  2006,  among the  Issuer and the
         Purchasers.

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

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

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

                                     -102-
<PAGE>

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

                  "Term" has the meaning specified in Section 1 hereof.

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

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

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

                  "Warrant  Price"  initially  means $1.25, as such price may be
         adjusted  from  time to time  as  shall  result  from  the  adjustments
         specified in this Warrant, including Section 4 hereto.

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

                  "Warrant  Stock" means Common Stock  issuable upon exercise of
         any Warrant or Warrants or otherwise  issuable  pursuant to any Warrant
         or Warrants.

         9. Other Notices. In case at any time:

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

                                     -103-
<PAGE>

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

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

                              (D) there shall be any capital  reorganization  by
                                  the Issuer; or

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

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

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

         10. Amendment and Waiver. Any term, covenant, agreement or condition in
this  Warrant may be amended,  or  compliance  therewith  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  by a written instrument or written instruments  executed by the
Issuer and the Majority Holders;  provided,  however,  that no such amendment or
waiver  shall  reduce the Warrant  Share  Number,  increase  the Warrant  Price,
shorten the period  during  which this  Warrant may be  exercised  or modify any
provision of this Section 10 without the consent of the Holder of this  Warrant.
No consideration shall be offered or paid to any person to amend or consent to a
waiver  or  modification  of any  provision  of this  Warrant  unless  the  same
consideration is also offered to all holders of the Warrants.

                                     -104-
<PAGE>

         11. Governing Law; Jurisdiction.  This Warrant shall be governed by and
construed in accordance with the internal laws of the State of New York, without
giving  effect to any of the conflicts of law  principles  which would result in
the  application of the substantive  law of another  jurisdiction.  This Warrant
shall not be  interpreted or construed  with any  presumption  against the party
causing this  Warrant to be drafted.  The Issuer and the Holder agree that venue
for any dispute  arising under this Warrant will lie exclusively in the state or
federal courts located in New York County, New York, and the parties irrevocably
waive any right to raise forum non  conveniens  or any other  argument  that New
York is not the proper venue. The Issuer and the Holder  irrevocably  consent to
personal  jurisdiction in the state and federal courts of the state of New York.
The  Issuer and the Holder  consent  to process  being  served in any such suit,
action or  proceeding  by mailing a copy thereof to such party at the address in
effect for notices to it under this Warrant and agrees that such  service  shall
constitute good and sufficient service of process and notice thereof. Nothing in
this  Section 11 shall  affect or limit any right to serve  process in any other
manner  permitted  by law.  The  Issuer  and the  Holder  hereby  agree that the
prevailing party in any suit, action or proceeding arising out of or relating to
this Warrant or the Purchase  Agreement,  shall be entitled to reimbursement for
reasonable  legal fees from the  non-prevailing  party. The parties hereby waive
all rights to a trial by jury.

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

If to the Issuer:                   FinancialContent, Inc.
                                    400 Oyster Point Boulevard, Suite 435
                                    So. San Francisco, California 94080
                                    Attention: Chief Executive Officer
                                    Tel. No.: (650) 837-9850
                                    Fax No.: (650) 745-2677

with copies (which copies
shall not constitute notice)
to:                                 Dave Neville, Esq.

                                    Tel. No.: Fax No.:

If to any Holder:                   At the address of such Holder
                                    set forth on  Exhibit  A to this  Agreement,
                                    with copies to Holder's counsel as set forth
                                    on Exhibit A or as  specified  in writing by
                                    such Holder with copies to:

                                     -105-
<PAGE>

with copies (which copies
shall not constitute notice)
to:                                 Kramer Levin Naftalis & Frankel LLP
                                    1177 Avenue of the Americas
                                    New York, New York 10036
                                    Attention: Christopher S. Auguste
                                    Tel. No.: (212) 715-9100
                                    Fax No.: (212) 715-8000

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

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

         14.  Remedies.  The Issuer  stipulates  that the remedies at law of the
Holder of this Warrant in the event of any default or threatened  default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that,  to the fullest  extent  permitted by
law,  such  terms may be  specifically  enforced  by a decree  for the  specific
performance  of any agreement  contained  herein or by an  injunction  against a
violation of any of the terms hereof or otherwise.

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

         16.  Modification and Severability.  If, in any action before any court
or agency  legally  empowered to enforce any  provision  contained  herein,  any
provision  hereof is found to be  unenforceable,  then such  provision  shall be
deemed modified to the extent  necessary to make it enforceable by such court or
agency.  If any such provision is not  enforceable as set forth in the preceding
sentence,  the  unenforceability  of such  provision  shall not affect the other
provisions  of this  Warrant,  but this  Warrant  shall be  construed as if such
unenforceable provision had never been contained herein.

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     -106-
<PAGE>

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

                                  FINANCIALCONTENT, INC.

                                  By: /S/  Wing Yu
                                      ----------------
                                  Name:  Wing Yu
                                  Title:   Chief Executive Officer

                                     -107-
<PAGE>

                                  EXERCISE FORM
                                SERIES B WARRANT

                             FINANCIALCONTENT, INC.

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

Dated: _________________            Signature        ___________________________

                                            Address  ___________________________

                                                     ___________________________

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

                                   ASSIGNMENT

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

Dated: _________________            Signature        ___________________________

                                            Address  ___________________________

                                                     ___________________________

                               PARTIAL ASSIGNMENT

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

Dated: _________________            Signature        ___________________________

                                            Address  ___________________________

                                                     ___________________________

                           FOR USE BY THE ISSUER ONLY:

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

                                     -108-
<PAGE>

                                    EXHIBIT E
                      FORM OF REGISTRATION RIGHTS AGREEMENT

                                     -109-
<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

                  This Registration  Rights Agreement (this "Agreement") is made
and entered into as of February 13, 2006, by and among FinancialContent, Inc., a
Delaware  corporation (the "Company"),  and the purchasers  listed on Schedule I
hereto (the "Purchasers").

                  This  Agreement is being entered into pursuant to the Note and
Warrant Purchase Agreement dated as of the date hereof among the Company and the
Purchasers (the "Purchase Agreement").

                  The Company and the Purchasers hereby agree as follows:

          1.      Definitions.

                  Capitalized  terms used and not otherwise defined herein shall
have the meanings  given such terms in the Purchase  Agreement.  As used in this
Agreement, the following terms shall have the following meanings:

                  "Advice" shall have meaning set forth in Section 3(m).

                  "Affiliate"  means,  with  respect  to any  Person,  any other
Person that directly or indirectly  controls or is controlled by or under common
control with such Person.  For the purposes of this definition,  "control," when
used with respect to any Person,  means the possession,  direct or indirect,  of
the power to direct or cause the  direction  of the  management  and policies of
such Person, whether through the ownership of voting securities,  by contract or
otherwise;  and the terms of "affiliated,"  "controlling"  and "controlled" have
meanings correlative to the foregoing.

                  "Board" shall have meaning set forth in Section 3(n).

                  "Business Day" means any day except  Saturday,  Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
state  of New  York  generally  are  authorized  or  required  by  law or  other
government actions to close.

                  "Closing  Date" means the date of the  initial  closing of the
purchase  and  sale of the  Notes  and the  Warrants  pursuant  to the  Purchase
Agreement.

                  "Commission" means the Securities and Exchange Commission.

                  "Common  Stock" means the Company's  Common Stock,  $0.001 par
value per share.

                  "Effectiveness  Date" means with  respect to the  Registration
Statement  the earlier of the one hundred  twentieth  (120th) day  following the
Closing Date or the date which is within three (3) Business  Days of the date on
which the Commission informs the Company that (i) the Commission will not review
the  Registration  Statement or (ii) the Company may request the acceleration of
the  effectiveness  of the  Registration  Statement  and the Company  makes such

                                     -110-
<PAGE>

request; provided that, if the Effectiveness Date falls on a Saturday, Sunday or
any other day which shall be a legal holiday or a day on which the Commission is
authorized  or  required  by law or  other  government  actions  to  close,  the
Effectiveness Date shall be the following Business Day.

                  "Effectiveness  Period"  shall have the  meaning  set forth in
Section 2.

                                     -111-
<PAGE>

                  "Event" shall have the meaning set forth in Section 7(d).

                  "Event Date" shall have the meaning set forth in Section 7(d).

                  "Exchange Act" means the  Securities  Exchange Act of 1934, as
amended.

                  "Filing  Date"  means the  twenty-fifth  (25th)  Business  Day
following  the  Closing  Date;  provided  that,  if the  Filing  Date falls on a
Saturday,  Sunday or any other day which  shall be a legal  holiday  or a day on
which the  Commission  is  authorized  or  required  by law or other  government
actions to close, the Filing Date shall be the following Business Day.

                  "Holder" or "Holders" means the holder or holders, as the case
may be, from time to time of Registrable Securities.

                  "Indemnified  Party"  shall  have  the  meaning  set  forth in
Section 5(c).

                  "Indemnifying  Party"  shall  have the  meaning  set  forth in
Section 5(c).

                  "Losses" shall have the meaning set forth in Section 5(a).

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

                  "Proceeding" means an action,  claim,  suit,  investigation or
proceeding   (including,   without  limitation,   an  investigation  or  partial
proceeding, such as a deposition), whether commenced or threatened.

                  "Prospectus" means the prospectus included in the Registration
Statement  (including,  without  limitation,  a  prospectus  that  includes  any
information  previously  omitted from a prospectus filed as part of an effective
registration  statement  in  reliance  upon  Rule  430A  promulgated  under  the
Securities Act), as amended or supplemented by any prospectus  supplement,  with
respect  to  the  terms  of  the  offering  of any  portion  of the  Registrable
Securities covered by the Registration  Statement,  and all other amendments and
supplements to the  Prospectus,  including  post-effective  amendments,  and all
material incorporated by reference in such Prospectus.

                  "Registrable  Securities"  means (A) one hundred fifty percent
(150%) of the number of shares of Common Stock  issuable upon  conversion of the
Notes,  including  any interest  accrued  thereon,  and (B) the shares of Common
Stock issuable upon exercise of the Warrants.

                  "Registration Statement" means the registration statements and
any additional  registration statements contemplated by Section 2, including (in
each case) the  Prospectus,  amendments  and  supplements  to such  registration

                                     -112-
<PAGE>

statement or  Prospectus,  including  pre- and  post-effective  amendments,  all
exhibits   thereto,   and  all  material   incorporated  by  reference  in  such
registration statement.

                  "Rule  144"  means  Rule  144  promulgated  by the  Commission
pursuant to the  Securities  Act, as such Rule may be amended from time to time,
or any similar rule or regulation  hereafter  adopted by the  Commission  having
substantially the same effect as such Rule.

                  "Rule  158"  means  Rule  158  promulgated  by the  Commission
pursuant to the  Securities  Act, as such Rule may be amended from time to time,
or any similar rule or regulation  hereafter  adopted by the  Commission  having
substantially the same effect as such Rule.

                  "Rule  415"  means  Rule  415  promulgated  by the  Commission
pursuant to the  Securities  Act, as such Rule may be amended from time to time,
or any similar rule or regulation  hereafter  adopted by the  Commission  having
substantially the same effect as such Rule.

                  "Rule  424"  means  Rule  424  promulgated  by the  Commission
pursuant to the  Securities  Act, as such Rule may be amended from time to time,
or any similar rule or regulation  hereafter  adopted by the  Commission  having
substantially the same effect as such Rule.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Special  Counsel"  means Kramer Levin Naftalis & Frankel LLP,
for which the Holders will be reimbursed by the Company pursuant to Section 4.

                  "Warrants"  means the  warrants to  purchase  shares of Common
Stock issued to the Purchasers pursuant to the Purchase Agreement.

         2.       Resale Registration.

                  On or prior to the Filing Date the Company  shall  prepare and
file with the  Commission a "resale"  Registration  Statement  providing for the
resale of all Registrable  Securities for an offering to be made on a continuous
basis  pursuant to Rule 415. The  Registration  Statement  shall be on Form SB-2
(except  if the  Company  is not  then  eligible  to  register  for  resale  the
Registrable Securities on Form SB-2, in which case such registration shall be on
another  appropriate  form in accordance  with the  Securities Act and the rules
promulgated  thereunder).  The Company shall (i) not permit any securities other
than the  Registrable  Securities and the securities to be listed on Schedule II
hereto  to be  included  in the  Registration  Statement  and  (ii) use its best
efforts to cause the Registration  Statement to be declared  effective under the
Securities  Act as  promptly as possible  after the filing  thereof,  but in any
event prior to the Effectiveness  Date, and to keep such Registration  Statement
continuously  effective  under  the  Securities  Act  until  such date as is the
earlier  of (x)  the  date  when  all  Registrable  Securities  covered  by such
Registration  Statement have been sold or (y) the date on which the  Registrable
Securities  may be sold  without  any  restriction  pursuant  to Rule  144(k) as
determined by the counsel to the Company  pursuant to a written  opinion letter,
addressed to the  Company's  transfer  agent to such effect (the  "Effectiveness
Period").  If at any  time  and  for  any  reason,  an  additional  Registration
Statement  is  required  to be filed  because at such time the actual  number of
shares of Common Stock into which the Notes are convertible and the Warrants are
exercisable  plus the  number of shares of Common  Stock  exceeds  the number of

                                     -113-
<PAGE>

shares of Registrable Securities remaining under the Registration Statement, the
Company  shall  have  fifteen  (15)  Business  Days  to  file  such   additional
Registration Statement, and the Company shall use its best efforts to cause such
additional  Registration Statement to be declared effective by the Commission as
soon as possible, but in no event later than sixty (60) days after filing.

         3.       Registration Procedures.

                  In  connection  with the  Company's  registration  obligations
hereunder, the Company shall:

                  (a)  Prepare and file with the  Commission  on or prior to the
Filing  Date,  a  Registration  Statement on Form SB-2 (or if the Company is not
then  eligible to register for resale the  Registrable  Securities  on Form SB-2
such  registration  shall be on another  appropriate form in accordance with the
Securities  Act and the rules  promulgated  thereunder)  in accordance  with the
method or methods of distribution thereof as specified by the Holders (except if
otherwise directed by the Holders), and use its reasonable best efforts to cause
the Registration  Statement to become effective and remain effective as provided
herein;  provided,  however,  that not less than five (5) Business Days prior to
the  filing of the  Registration  Statement  or any  related  Prospectus  or any
amendment  or  supplement   thereto   (including  any  document  that  would  be
incorporated therein by reference), the Company shall (i) furnish to the Holders
and the  Special  Counsel,  copies of all such  documents  proposed to be filed,
which documents (other than those  incorporated by reference) will be subject to
the review of such Holders and such Special Counsel, and (ii) cause its officers
and directors,  counsel and independent  certified public accountants to respond
to such inquiries as shall be necessary,  in the  reasonable  opinion of Special
Counsel,  to  conduct a  reasonable  investigation  within  the  meaning  of the
Securities  Act. The Company  shall not file the  Registration  Statement or any
such Prospectus or any amendments or supplements thereto to which the Holders of
a majority of the Registrable Securities or the Special Counsel shall reasonably
object in writing within three (3) Business Days of their receipt thereof.

                  (b) (i) Prepare and file with the Commission such  amendments,
including  post-effective  amendments,  to the Registration  Statement as may be
necessary to keep the Registration  Statement  continuously  effective as to the
applicable  Registrable  Securities for the Effectiveness Period and prepare and
file with the Commission such additional Registration Statements as necessary in
order to register for resale  under the  Securities  Act all of the  Registrable
Securities;  (ii) cause the related  Prospectus to be amended or supplemented by
any required  Prospectus  supplement,  and as so  supplemented  or amended to be
filed pursuant to Rule 424 (or any similar provisions then in force) promulgated
under the Securities Act; (iii) respond as promptly as possible, but in no event
later than ten (10) Business Days, to any comments  received from the Commission
with  respect to the  Registration  Statement  or any  amendment  thereto and as
promptly  as  possible  provide  the  Holders  true and  complete  copies of all
correspondence   from  and  to  the  Commission  relating  to  the  Registration
Statement;  and (iv) comply in all material  respects with the provisions of the
Securities  Act and the  Exchange  Act with  respect to the  disposition  of all
Registrable   Securities  covered  by  the  Registration  Statement  during  the
applicable  period in accordance with the intended methods of disposition by the
Holders thereof set forth in the Registration Statement as so amended or in such
Prospectus as so supplemented.

                                     -114-
<PAGE>

                  (c) Notify the Holders of  Registrable  Securities  to be sold
and the Special  Counsel as promptly  as  possible  (and,  in the case of (i)(A)
below,  not less than five (5) days prior to such  filing) and (if  requested by
any such  Person)  confirm such notice in writing no later than one (1) Business
Day following the day (i)(A) when a Prospectus or any  Prospectus  supplement or
post-effective  amendment to the  Registration  Statement is filed, (B) when the
Commission  notifies  the  Company  whether  there  will be a  "review"  of such
Registration  Statement and whenever the Commission  comments in writing on such
Registration Statement and (C) with respect to the Registration Statement or any
post-effective  amendment,  when  the  same has  become  effective;  (ii) of any
request by the Commission or any other Federal or state  governmental  authority
for amendments or supplements to the Registration Statement or Prospectus or for
additional  information;  (iii) of the  issuance by the  Commission  of any stop
order suspending the effectiveness of the Registration Statement covering any or
all of the Registrable  Securities or the initiation of any Proceedings for that
purpose;  (iv) if at any time any of the  representations  and warranties of the
Company  contained in any  agreement  contemplated  hereby ceases to be true and
correct in all  material  respects;  (v) of the  receipt  by the  Company of any
notification  with respect to the suspension of the  qualification  or exemption
from  qualification  of  any of  the  Registrable  Securities  for  sale  in any
jurisdiction,  or the  initiation  or  threatening  of any  Proceeding  for such
purpose;  and (vi) of the  occurrence of any event that makes any statement made
in the  Registration  Statement or  Prospectus or any document  incorporated  or
deemed to be incorporated therein by reference untrue in any material respect or
that requires any revisions to the Registration  Statement,  Prospectus or other
documents so that, in the case of the Registration  Statement or the Prospectus,
as the case may be, it will not contain any untrue  statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements  therein, in the light of the circumstances under which they
were made, not misleading.

                  (d) Use its reasonable  best efforts to avoid the issuance of,
or,  if  issued,  obtain  the  withdrawal  of,  (i)  any  order  suspending  the
effectiveness  of the  Registration  Statement  or (ii)  any  suspension  of the
qualification  (or  exemption  from  qualification)  of any  of the  Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

                  (e) If  requested  by the Holders of a majority in interest of
the Registrable Securities,  (i) promptly incorporate in a Prospectus supplement
or  post-effective  amendment to the Registration  Statement such information as
the  Company  reasonably  agrees  should be  included  therein and (ii) make all
required filings of such Prospectus supplement or such post-effective  amendment
as soon as  practicable  after the  Company  has  received  notification  of the
matters to be  incorporated  in such  Prospectus  supplement  or  post-effective
amendment.

                  (f) Furnish to each Holder and the  Special  Counsel,  without
charge,  at least one  conformed  copy of each  Registration  Statement and each
amendment thereto,  including financial statements and schedules,  all documents
incorporated or deemed to be incorporated therein by reference, and all exhibits
to the extent requested by such Person (including those previously  furnished or
incorporated by reference)  promptly after the filing of such documents with the
Commission.

                                     -115-
<PAGE>

                  (g) Promptly  deliver to each Holder and the Special  Counsel,
without charge, as many copies of the Prospectus or Prospectuses (including each
form of prospectus) and each amendment or supplement thereto as such Persons may
reasonably  request;  and  the  Company  hereby  consents  to the  use  of  such
Prospectus  and each  amendment  or  supplement  thereto by each of the  selling
Holders in connection with the offering and sale of the  Registrable  Securities
covered by such Prospectus and any amendment or supplement thereto.

                  (h) Prior to any public  offering of  Registrable  Securities,
use its  reasonable  best efforts to register or qualify or  cooperate  with the
selling Holders and the Special  Counsel in connection with the  registration or
qualification  (or exemption from such  registration or  qualification)  of such
Registrable  Securities for offer and sale under the securities or Blue Sky laws
of such  jurisdictions  within  the  United  States as any  Holder  requests  in
writing,   to  keep  each  such  registration  or  qualification  (or  exemption
therefrom) effective during the Effectiveness Period and to do any and all other
acts or  things  necessary  or  advisable  to  enable  the  disposition  in such
jurisdictions of the Registrable Securities covered by a Registration Statement;
provided,  however,  that the Company shall not be required to qualify generally
to do business in any jurisdiction  where it is not then so qualified or to take
any  action  that would  subject  it to  general  service of process in any such
jurisdiction  where it is not then so  subject  or  subject  the  Company to any
material tax in any such jurisdiction where it is not then so subject.

                  (i)  Cooperate  with the  Holders  to  facilitate  the  timely
preparation and delivery of certificates  representing Registrable Securities to
be sold pursuant to a Registration  Statement,  which certificates shall be free
of all  restrictive  legends  (provided  that the  issuance  of such  unlegended
certificates is in compliance with applicable  securities  laws),  and to enable
such Registrable  Securities to be in such  denominations and registered in such
names as any Holder may request in writing at least two (2) Business  Days prior
to any sale of Registrable Securities.

                  (j) Upon the occurrence of any event  contemplated  by Section
3(c)(vi), as promptly as possible, prepare a supplement or amendment,  including
a post-effective amendment, to the Registration Statement or a supplement to the
related  Prospectus or any document  incorporated  or deemed to be  incorporated
therein  by  reference,  and file  any  other  required  document  so  that,  as
thereafter  delivered,  neither the  Registration  Statement nor such Prospectus
will contain an 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,
in the light of the circumstances under which they were made, not misleading.

                  (k) Use its reasonable  best efforts to cause all  Registrable
Securities  relating  to the  Registration  Statement  to be  listed  on the OTC
Bulletin Board or any other securities exchange,  quotation system or market, if
any, on which similar securities issued by the Company are then listed or traded
as and when required pursuant to the Purchase Agreement.

                  (l) Comply in all material  respects with all applicable rules
and  regulations of the Commission and make generally  available to its security
holders  earning  statements  satisfying  the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 45 days after the end of any 12-month
period  (or 90 days  after the end of any  12-month  period if such  period is a
fiscal  year)  commencing  on the first day of the first  fiscal  quarter of the
Company after the effective date of the Registration Statement,  which statement
shall conform to the requirements of Rule 158.

                                     -116-
<PAGE>

                  (m) The Company may require each selling  Holder to furnish to
the  Company  information  regarding  such Holder and the  distribution  of such
Registrable Securities as is required by law to be disclosed in the Registration
Statement,  and the Company may exclude from such  registration  the Registrable
Securities of any such Holder who unreasonably fails to furnish such information
within a reasonable time after receiving such request.

                  If the Registration  Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (if such reference to such Holder by name or otherwise
is not required by the  Securities  Act or any similar  federal  statute then in
force)  the  deletion  of the  reference  to such  Holder  in any  amendment  or
supplement to the  Registration  Statement  filed or prepared  subsequent to the
time that such reference ceases to be required.

                  Each Holder covenants and agrees that (i) it will not sell any
Registrable  Securities under the  Registration  Statement until it has received
copies of the  Prospectus as then amended or  supplemented  as  contemplated  in
Section 3(g) and notice from the Company that such  Registration  Statement  and
any  post-effective  amendments thereto have become effective as contemplated by
Section 3(c) and (ii) it and its officers, directors or Affiliates, if any, will
comply  with the  prospectus  delivery  requirements  of the  Securities  Act as
applicable to them in connection with sales of Registrable  Securities  pursuant
to the Registration Statement.

                  Each  Holder  agrees by its  acquisition  of such  Registrable
Securities  that, upon receipt of a notice from the Company of the occurrence of
any  event of the kind  described  in  Section  3(c)(ii),  3(c)(iii),  3(c)(iv),
3(c)(v), 3(c)(vi) or 3(n), such Holder will forthwith discontinue disposition of
such Registrable Securities under the Registration Statement until such Holder's
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement  contemplated  by Section 3(j), or until it is advised in writing (the
"Advice")  by the  Company  that  the use of the  applicable  Prospectus  may be
resumed,  and,  in  either  case,  has  received  copies  of any  additional  or
supplemental  filings  that are  incorporated  or deemed to be  incorporated  by
reference in such Prospectus or Registration Statement.

                  (n) If (i) there is material non-public  information regarding
the Company which the  Company's  Board of Directors  (the  "Board")  reasonably
determines  not to be in the  Company's  best interest to disclose and which the
Company is not  otherwise  required to disclose,  or (ii) there is a significant
business  opportunity  (including,  but  not  limited  to,  the  acquisition  or
disposition  of assets  (other than in the  ordinary  course of business) or any
merger,  consolidation,  tender offer or other similar transaction) available to
the Company  which the Board  reasonably  determines  not to be in the Company's
best interest to disclose,  then the Company may (x) postpone or suspend  filing
of a registration  statement for a period not to exceed thirty (30)  consecutive
days or (y) postpone or suspend effectiveness of a registration  statement for a
period not to exceed twenty (20) consecutive days; provided that the Company may
not postpone or suspend  effectiveness  of a registration  statement  under this
Section  3(n) for more than  forty-five  (45) days in the  aggregate  during any
three  hundred  sixty  (360)  day  period;  provided,   however,  that  no  such
postponement or suspension  shall be permitted for  consecutive  twenty (20) day
periods arising out of the same set of facts, circumstances or transactions.

                                     -117-
<PAGE>

     4. Registration Expenses.

                  All  fees  and  expenses  incident  to the  performance  of or
compliance  with this  Agreement  by the  Company,  except as and to the  extent
specified  in this  Section 4, shall be borne by the Company  whether or not the
Registration  Statement  is filed or becomes  effective  and  whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and  expenses  referred to in the  foregoing  sentence  shall  include,  without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses  (A) with respect to filings  required to be made with the OTC
Bulletin Board and each other securities exchange or market on which Registrable
Securities are required  hereunder to be listed, (B) with respect to filing fees
required to be paid to the National Association of Securities Dealers,  Inc. and
the NASD  Regulation,  Inc. and (C) in compliance with state  securities or Blue
Sky laws (including,  without limitation,  fees and disbursements of counsel for
the  Holders  in  connection  with Blue Sky  qualifications  of the  Registrable
Securities and  determination  of the eligibility of the Registrable  Securities
for investment under the laws of such jurisdictions as the Holders of a majority
of Registrable  Securities may designate)),  (ii) printing expenses  (including,
without limitation, expenses of printing certificates for Registrable Securities
and of printing prospectuses if the printing of prospectuses is requested by the
holders of a majority of the Registrable Securities included in the Registration
Statement),  (iii)  messenger,  telephone and delivery  expenses,  (iv) fees and
disbursements of counsel for the Company and Special Counsel for the Holders, in
the  case  of the  Special  Counsel,  up to a  maximum  amount  of  $7,500,  (v)
Securities Act liability  insurance,  if the Company so desires such  insurance,
and (vi) fees and  expenses  of all other  Persons  retained  by the  Company in
connection  with  the  consummation  of the  transactions  contemplated  by this
Agreement,  including,  without  limitation,  the Company's  independent  public
accountants  (including the expenses of any comfort letters or costs  associated
with the  delivery by  independent  public  accountants  of a comfort  letter or
comfort letters).  In addition,  the Company shall be responsible for all of its
internal   expenses   incurred  in  connection  with  the  consummation  of  the
transactions contemplated by this Agreement (including,  without limitation, all
salaries  and  expenses  of its  officers  and  employees  performing  legal  or
accounting  duties),  the  expense of any annual  audit,  the fees and  expenses
incurred in  connection  with the listing of the  Registrable  Securities on any
securities exchange as required hereunder.

     5. Indemnification.

                  (a)  Indemnification  by  the  Company.   The  Company  shall,
notwithstanding  any termination of this Agreement,  indemnify and hold harmless
each Holder,  the officers,  directors,  agents,  brokers (including brokers who
offer and sell  Registrable  Securities  as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and employees of each of them,  each Person who controls any such Holder (within
the meaning of Section 15 of the  Securities  Act or Section 20 of the  Exchange
Act) and the officers,  directors, agents and employees of each such controlling
Person,  to the fullest extent permitted by applicable law, from and against any
and  all  losses,  claims,  damages,  liabilities,   costs  (including,  without
limitation,   costs  of   preparation   and   attorneys'   fees)  and   expenses
(collectively,  "Losses"), as incurred, arising out of or relating to any untrue
or alleged  untrue  statement of a material fact  contained in the  Registration

                                     -118-
<PAGE>

Statement,  any  Prospectus  or any form of  prospectus  or in any  amendment or
supplement  thereto  or in any  preliminary  prospectus,  or  arising  out of or
relating to any omission or alleged  omission of a material  fact required to be
stated therein or necessary to make the  statements  therein (in the case of any
Prospectus  or form of prospectus  or  supplement  thereto,  in the light of the
circumstances under which they were made) not misleading,  except to the extent,
but only to the extent,  that (i) such untrue  statements or omissions are based
solely upon information  regarding such Holder or such other  Indemnified  Party
furnished in writing to the Company by such Holder expressly for use therein and
(ii) that the foregoing  indemnity  agreement is subject to the condition  that,
insofar  as it  relates to any untrue  statement,  allegedly  untrue  statement,
omission or alleged  omission made in any preliminary  prospectus but eliminated
or  remedied  in  the  final  prospectus  (filed  pursuant  to  Rule  424 of the
Securities Act), such indemnity  agreement shall not inure to the benefit of any
Holder,  underwriter,  broker or other Person acting on behalf of holders of the
Registrable Securities,  from whom the Person asserting any loss, claim, damage,
liability or expense purchased the Registrable  Securities which are the subject
thereof,  if a copy of such final  prospectus  had been made  available  to such
Person and such Holder, underwriter,  broker or other Person acting on behalf of
holders  of the  Registrable  Securities  and  such  final  prospectus  was  not
delivered to such Person with or prior to the written  confirmation  of the sale
of such  Registrable  Securities  to such Person.  The Company  shall notify the
Holders  promptly of the  institution,  threat or assertion of any Proceeding of
which the Company is aware in connection with the  transactions  contemplated by
this Agreement.

                  (b) Indemnification by Holders.  Each Holder shall,  severally
and not  jointly,  indemnify  and hold  harmless  the  Company,  its  directors,
officers, agents and employees, each Person who controls the Company (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors,  officers,  agents and employees of such controlling Persons,
to the fullest extent  permitted by applicable  law, from and against all Losses
(as  determined  by a court of competent  jurisdiction  in a final  judgment not
subject to appeal or review), as incurred, arising solely out of or based solely
upon any untrue  statement  of a material  fact  contained  in the  Registration
Statement, any Prospectus,  or any form of prospectus,  or arising solely out of
or based  solely  upon any  omission  of a material  fact  required to be stated
therein  or  necessary  to make  the  statements  therein  (in  the  case of any
Prospectus  or form of prospectus  or  supplement  thereto,  in the light of the
circumstances  under which they were made) not  misleading,  to the extent,  but
only to the extent,  that such untrue  statement or omission is contained in any
information so furnished in writing by such Holder or other  Indemnifying  Party
to the Company specifically for inclusion in the Registration  Statement or such
Prospectus.  Notwithstanding  anything to the contrary  contained  herein,  each
Holder  shall be liable under this Section 5(b) for only that amount as does not
exceed the net  proceeds to such  Holder as a result of the sale of  Registrable
Securities pursuant to such Registration Statement.

                  (c) Conduct of Indemnification  Proceedings. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity  hereunder
(an  "Indemnified  Party"),  such  Indemnified  Party  promptly shall notify the
Person from whom indemnity is sought (the "Indemnifying  Party) in writing,  and
the  Indemnifying  Party  shall  assume  the  defense  thereof,   including  the
employment of counsel  reasonably  satisfactory to the Indemnified Party and the
payment of all fees and expenses  incurred in connection  with defense  thereof;
provided,  that the failure of any  Indemnified  Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to

                                     -119-
<PAGE>

this  Agreement,  except  (and  only) to the  extent  that it  shall be  finally
determined  by a court of competent  jurisdiction  (which  determination  is not
subject to appeal or further  review) that such failure  shall have  proximately
and materially adversely prejudiced the Indemnifying Party.

                  An Indemnified  Party shall have the right to employ  separate
counsel in any such  Proceeding and to participate in the defense  thereof,  but
the  fees  and  expenses  of  such  counsel  shall  be at the  expense  of  such
Indemnified  Party or Parties unless:  (1) the Indemnifying  Party has agreed in
writing to pay such fees and expenses;  or (2) the Indemnifying Party shall have
failed  promptly to assume the defense of such  Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3)
the named  parties to any such  Proceeding  (including  any  impleaded  parties)
include  both  such  Indemnified  Party  and the  Indemnifying  Party,  and such
Indemnified  Party shall have been advised by counsel (which shall be reasonably
acceptable to the  Indemnifying  Party) that a conflict of interest is likely to
exist if the same  counsel  were to  represent  such  Indemnified  Party and the
Indemnifying  Party (in which  case,  if such  Indemnified  Party  notifies  the
Indemnifying  Party in writing that it elects to employ separate  counsel at the
expense of the Indemnifying  Party,  the  Indemnifying  Party shall not have the
right to assume the defense  thereof and such counsel shall be at the expense of
the  Indemnifying  Party).  The  Indemnifying  Party shall not be liable for any
settlement of any such Proceeding  effected without its written  consent,  which
consent shall not be unreasonably  withheld or delayed.  No  Indemnifying  Party
shall,  without the prior written consent of the Indemnified  Party,  effect any
settlement of any pending  Proceeding in respect of which any Indemnified  Party
is a party,  unless such settlement  includes an  unconditional  release of such
Indemnified  Party from all  liability on claims that are the subject  matter of
such Proceeding.

              All  fees  and  expenses  of  the  Indemnified   Party  (including
reasonable  fees  and  expenses  to  the  extent  incurred  in  connection  with
investigating   or  preparing  to  defend  such   Proceeding  in  a  manner  not
inconsistent  with this  Section)  shall be paid to the  Indemnified  Party,  as
incurred,  within  ten (10)  Business  Days of  written  notice  thereof  to the
Indemnifying  Party  (regardless of whether it is ultimately  determined that an
Indemnified Party is not entitled to indemnification  hereunder;  provided, that
the  Indemnifying  Party may require  such  Indemnified  Party to  undertake  to
reimburse  all such fees and  expenses  to the extent it is  finally  judicially
determined  that  such  Indemnified  Party is not  entitled  to  indemnification
hereunder).

                  (d) Contribution. If a claim for indemnification under Section
5(a) or 5(b) is  unavailable  to an  Indemnified  Party  because of a failure or
refusal  of  a  governmental   authority  to  enforce  such  indemnification  in
accordance  with its terms (by reason of public policy or otherwise),  then each
Indemnifying  Party,  in lieu of  indemnifying  such  Indemnified  Party,  shall
contribute to the amount paid or payable by such  Indemnified  Party as a result
of such Losses,  in such  proportion as is  appropriate  to reflect the relative
benefits received by the Indemnifying  Party on the one hand and the Indemnified
Party on the other from the offering of the Notes and Warrants. If, but only if,
the allocation provided by the foregoing sentence is not permitted by applicable
law, the  allocation  of  contribution  shall be made in such  proportion  as is
appropriate  to  reflect  not  only the  relative  benefits  referred  to in the
foregoing  sentence  but  also  the  relative  fault,  as  applicable,   of  the
Indemnifying  Party  and  Indemnified  Party in  connection  with  the  actions,
statements  or  omissions  that  resulted  in such  Losses  as well as any other
relevant equitable considerations. The relative fault of such Indemnifying Party
and  Indemnified  Party shall be determined by reference to, among other things,

                                     -120-
<PAGE>

whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged  omission of a material fact, has been
taken or made by, or relates to information supplied by, such Indemnifying Party
or Indemnified  Party, and the parties'  relative intent,  knowledge,  access to
information  and  opportunity  to correct or prevent such  action,  statement or
omission.  The amount paid or payable by a party as a result of any Losses shall
be deemed to include,  subject to the limitations set forth in Section 5(c), any
reasonable  attorneys'  or other  reasonable  fees or expenses  incurred by such
party in connection with any Proceeding to the extent such party would have been
indemnified  for such fees or expenses if the  indemnification  provided  for in
this Section was  available to such party in  accordance  with its terms.  In no
event shall any selling  Holder be required to  contribute  an amount under this
Section 5(d) in excess of the net proceeds  received by such Holder upon sale of
such Holder's  Registrable  Securities  pursuant to the  Registration  Statement
giving rise to such contribution obligation.

              The parties  hereto agree that it would not be just and  equitable
if  contribution  pursuant  to this  Section  5(d) were  determined  by pro rata
allocation or by any other method of allocation  that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
No Person guilty of fraudulent  misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to  contribution  from any Person
who was not guilty of such fraudulent misrepresentation.

              The  indemnity  and  contribution  agreements  contained  in  this
Section are in addition to any liability that the Indemnifying  Parties may have
to the Indemnified Parties.  Notwithstanding  anything to the contrary contained
herein, the Holders shall be liable under this Section 5(d) for only that amount
as does not exceed the net  proceeds  to such  Holder as a result of the sale of
Registrable Securities pursuant to such Registration Statement.

         6. Rule 144.

              As long as any Holder owns any  Registrable  Securities,  Notes or
Warrants,  the Company covenants to timely file (or obtain extensions in respect
thereof and file within the applicable  grace period) all reports required to be
filed by the Company after the date hereof pursuant to Section 13(a) or 15(d) of
the  Exchange  Act and to promptly  furnish the Holders  with true and  complete
copies  of all  such  filings.  As  long  as any  Holder  owns  any  Registrable
Securities,  Notes or  Warrants,  if the Company is not required to file reports
pursuant to Section  13(a) or 15(d) of the  Exchange  Act,  it will  prepare and
furnish to the Holders  and make  publicly  available  in  accordance  with Rule
144(c)  promulgated  under the  Securities  Act annual and  quarterly  financial
statements, together with a discussion and analysis of such financial statements
in form and  substance  substantially  similar to those that would  otherwise be
required  to be included  in reports  required by Section  13(a) or 15(d) of the
Exchange Act, as well as any other  information  required  thereby,  in the time
period that such  filings  would have been  required to have been made under the
Exchange  Act.  The Company  further  covenants  that it will take such  further
action as any Holder may reasonably request all to the extent required from time
to time to  enable  such  Person  to sell  the  Registrable  Securities  without
registration  under the  Securities  Act within the limitation of the exemptions
provided by Rule 144 promulgated under the Securities Act,  including  providing
any legal opinions relating to such sale pursuant to Rule 144.

                                     -121-
<PAGE>

         7. Miscellaneous.

                  (a) Remedies.  In the event of a breach by the Company or by a
Holder,  of any of their  obligations  under this Agreement,  each Holder or the
Company,  as the case may be, in  addition to being  entitled  to  exercise  all
rights granted by law and under this Agreement,  including  recovery of damages,
will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary  damages would not provide  adequate
compensation  for any losses  incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific  performance  in respect of such breach,  it shall waive the
defense that a remedy at law would be adequate.

                  (b) No Inconsistent Agreements. Neither the Company nor any of
its  subsidiaries  has,  as of the date hereof  entered  into and  currently  in
effect,  nor shall the Company or any of its subsidiaries,  on or after the date
of this Agreement,  enter into any agreement with respect to its securities that
is  inconsistent  with the rights  granted to the Holders in this  Agreement  or
otherwise conflicts with the provisions hereof.  Except as disclosed in Schedule
2.1(c)  of  the  Purchase  Agreement,   neither  the  Company  nor  any  of  its
subsidiaries  has  previously  entered  into any  agreement  currently in effect
granting any  registration  rights with respect to any of its  securities to any
Person.  Without  limiting the generality of the foregoing,  without the written
consent  of the  Holders  of a  majority  of the  then  outstanding  Registrable
Securities,  the Company  shall not grant to any Person the right to request the
Company to register any  securities  of the Company,  under the  Securities  Act
unless the rights so granted are subject in all  respects to the prior rights in
full of the Holders set forth herein, and are not otherwise in conflict with the
provisions of this Agreement.

                  (c) No Piggyback on Registrations. Neither the Company nor any
of its security holders (other than the Holders in such capacity pursuant hereto
or as  disclosed  on Schedule  2.1(c) of the  Purchase  Agreement or Schedule II
hereto) may include securities of the Company in the Registration Statement, and
the Company shall not after the date hereof enter into any  agreement  providing
such right to any of its securityholders, unless the right so granted is subject
in all respects to the prior rights in full of the Holders set forth herein, and
is not otherwise in conflict with the provisions of this Agreement.

                  (d) Failure to File  Registration  Statement and Other Events.
The Company and the Purchasers agree that the Holders will suffer damages if the
Registration  Statement  is not  filed on or prior  to the  Filing  Date and not
declared  effective by the Commission on or prior to the Effectiveness  Date and
maintained in the manner contemplated herein during the Effectiveness  Period or
if certain other events occur. The Company and the Holders further agree that it
would not be feasible to ascertain  the extent of such  damages with  precision.
Accordingly,  if (A) the Registration  Statement is not filed on or prior to the
Filing Date, or (B) the Registration  Statement is not declared effective by the
Commission  on or prior to the  Effectiveness  Date, or (C) the Company fails to
file with the Commission a request for  acceleration in accordance with Rule 461
promulgated  under the Securities Act within three (3) Business Days of the date
that the Company is notified (orally or in writing, whichever is earlier) by the
Commission that a Registration  Statement will not be "reviewed," or not subject
to further review, or (D) the Registration  Statement is filed with and declared

                                     -122-
<PAGE>

effective  by the  Commission  but  thereafter  ceases to be effective as to all
Registrable  Securities at any time prior to the expiration of the Effectiveness
Period,  without  being  succeeded  immediately  by  a  subsequent  Registration
Statement  filed  with and  declared  effective  by the  Commission,  or (E) the
Company has breached  Section  3(n), or (F) trading in the Common Stock shall be
suspended  or if the Common Stock is delisted  from the OTC  Bulletin  Board (or
other principal exchange on which the Common Stock is traded) for any reason for
more than three (3) Business Days in the  aggregate  (any such failure or breach
being  referred  to as an "Event,"  and for  purposes of clauses (A) and (B) the
date on which such Event occurs, or for purposes of clause (C) the date on which
such three (3) Business  Day period is  exceeded,  or for purposes of clause (D)
after more than fifteen (15)  Business  Days,  or for purposes of clause (F) the
date on which such three (3) Business Day period is exceeded,  being referred to
as "Event Date"),  the Company shall pay an amount as liquidated damages to each
Holder in cash equal to one and one-half  percent  (1.5%) for the first calendar
month (prorated for shorter periods) and one and one-quarter percent (1.25%) per
calendar month thereafter (prorated for shorter periods) of the Holder's initial
investment  in the  Notes,  from the Event Date  until the  applicable  Event is
cured; provided, however, in no event shall liquidated damages be payable to any
Holder pursuant to this Section 7(d) for a period in excess of two hundred forty
(240) days from the  applicable  Event  Date.  Notwithstanding  anything  to the
contrary in this  paragraph  (e), if (i) any of the Events  described in clauses
(A), (B) or (C) shall have occurred,  (ii) on or prior to the  applicable  Event
Date,  the Company shall have exercised its rights under Section 3(n) hereof and
(iii) the  postponement  or suspension  permitted  pursuant to such Section 3(n)
shall remain  effective as of such  applicable  Event Date,  then the applicable
Event Date shall be deemed instead to occur on the second Business Day following
the termination of such postponement or suspension. For purposes of clarity, any
liquidated  damages  payable  under this Section 7(d) are not payable per Event,
but rather are the  maximum  charges  payable at any time when one or more Event
has occurred and is continuing.

                  (e) Amendments and Waivers.  The provisions of this Agreement,
including  the  provisions  of this  sentence,  may not be amended,  modified or
supplemented,  and waivers or consents to departures from the provisions  hereof
may not be given,  unless the same shall be in writing and signed by the Company
and  the  Holders  of   three-fourths   (3/4)  of  the  Registrable   Securities
outstanding.

Section  7.15  (f)  Notices.  Any  notice,  demand,  request,  waiver  or  other
communication  required or permitted to be given  hereunder  shall be in writing
and shall be  effective  (a) upon hand  delivery,  telecopy or  facsimile at the
address or number designated below (if delivered on a business day during normal
business  hours where such notice is to be received),  or the first business day
following such delivery (if delivered other than on a business day during normal
business  hours  where  such  notice  is to be  received)  or (b) on the  second
business day following  the date of mailing by express  courier  service,  fully
prepaid,  addressed to such  address,  or upon actual  receipt of such  mailing,
whichever shall first occur. The addresses for such communications shall be:

 If to the Company:            FinancialContent, Inc.
                               400 Oyster Point Boulevard, Suite 435
                               So. San Francisco, California 94080

                                     -123-
<PAGE>

                               Attention: Chief Executive Officer
                               Tel. No.: (650) 837-9850
                               Fax No.: (650) 745-2677

 with copies (which shall      Dave Neville, Esq.
 not constitute notice) to:

                               Tel. No.:
                               Fax No.:

 If to  any  Purchaser:        At  theaddress  of such  Purchaser  set  forth on
                               Exhibit  A to  this  Agreement,  with  copies  to
                               Purchaser's  counsel as set forth on Exhibit A or
                               as specified in writing by such:

 with copies (which shall      Kramer Levin Naftalis & Frankel LLP
 not constitute notice) to:    1177 Avenue of the Americas
                               New York, New York 10036
                               Attention: Christopher S. Auguste
                               Tel No.: (212) 715-9100
                               Fax No.: (212) 715-8000

                  Any party  hereto may from time to time change its address for
notices by giving at least ten (10) days written notice of such changed  address
to the other party hereto.

                  (g)  Successors and Assigns.  This Agreement  shall be binding
upon and inure to the benefit of the parties and their  successors and permitted
assigns and shall inure to the  benefit of each  Holder and its  successors  and
assigns.  The  Company  may not assign  this  Agreement  or any of its rights or
obligations  hereunder  without the prior written  consent of each Holder.  Each
Purchaser  may assign its rights  hereunder  in the manner and to the Persons as
permitted under the Purchase Agreement.

                  (h)  Assignment  of  Registration  Rights.  The rights of each
Holder  hereunder,  including the right to have the Company  register for resale
Registrable Securities in accordance with the terms of this Agreement,  shall be
automatically  assignable  by each Holder to any Affiliate of such Holder or any
other  Holder  or  Affiliate  of any other  Holder  of all or a  portion  of the
Registrable  Securities if: (i) the Holder 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 assignees is restricted
under the Securities Act and applicable state securities laws, (iv) at or before
the time the Company receives the written notice  contemplated by clause (ii) of
this Section,  the transferee or assignee  agrees in writing with the Company to
be bound by all of the provisions of this Agreement, and (v) such transfer shall
have been made in accordance  with the applicable  requirements  of the Purchase
Agreement.  In  addition,  each Holder shall have the right to assign its rights

                                     -124-
<PAGE>

hereunder  to any other  Person with the prior  written  consent of the Company,
which consent shall not be unreasonably withheld. The rights to assignment shall
apply to the Holders (and to subsequent) successors and assigns.

                  (i) Counterparts. This Agreement may be executed in any number
of  counterparts,  each of  which  when so  executed  shall be  deemed  to be an
original  and, all of which taken  together  shall  constitute  one and the same
Agreement.   In  the  event  that  any   signature  is  delivered  by  facsimile
transmission,  such  signature  shall create a valid  binding  obligation of the
party  executing  (or on whose behalf such  signature is executed) the same with
the same  force and  effect as if such  facsimile  signature  were the  original
thereof.

                  (j)  Governing  Law;  Jurisdiction.  This  Agreement  shall be
governed by and construed in  accordance  with the internal laws of the State of
New York,  without giving effect to any of the conflicts of law principles which
would result in the application of the substantive law of another  jurisdiction.
This  Agreement  shall not be  interpreted  or  construed  with any  presumption
against the party  causing  this  Agreement  to be drafted.  The Company and the
Holders agree that venue for any dispute  arising under this  Agreement will lie
exclusively in the state or federal courts located in New York County, New York,
and the parties irrevocably waive any right to raise forum non conveniens or any
other  argument  that New York is not the  proper  venue.  The  Company  and the
Holders  irrevocably  consent to personal  jurisdiction in the state and federal
courts of the state of New York. The Company and the Holders  consent to process
being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address in effect for notices to it under this  Agreement  and
agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing in this Section 7(j) shall affect or limit any right
to serve  process in any other  manner  permitted  by law.  The  Company and the
Holders hereby agree that the prevailing party in any suit, action or proceeding
arising out of or  relating to the this  Agreement  or the  Purchase  Agreement,
shall  be  entitled  to  reimbursement   for  reasonable  legal  fees  from  the
non-prevailing party. The parties hereby waive all rights to a trial by jury.

                  (k)  Cumulative  Remedies.  The remedies  provided  herein are
cumulative and not exclusive of any remedies provided by law.

                  (l)  Severability.   If  any  term,  provision,   covenant  or
restriction  of  this  Agreement  is  held  to  be  invalid,  illegal,  void  or
unenforceable in any respect, the remainder of the terms, provisions,  covenants
and  restrictions  set forth  herein  shall  remain in full force and effect and
shall in no way be affected,  impaired or  invalidated,  and the parties  hereto
shall use their  reasonable  efforts to find and employ an alternative  means to
achieve the same or substantially  the same result as that  contemplated by such
term, provision,  covenant or restriction.  It is hereby stipulated and declared
to be the  intention of the parties that they would have  executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

                  (m) Headings. The headings herein are for convenience only, do
not  constitute  a part of this  Agreement  and  shall not be deemed to limit or
affect any of the provisions hereof.

                                     -125-
<PAGE>

                  (n) Shares Held by the Company  and its  Affiliates.  Whenever
the  consent or approval of Holders of a  specified  percentage  of  Registrable
Securities is required hereunder,  Registrable Securities held by the Company or
its  Affiliates  (other than any Holder or  transferees or successors or assigns
thereof  if such  Holder is deemed  to be an  Affiliate  solely by reason of its
holdings of such  Registrable  Securities)  shall not be counted in  determining
whether  such  consent or  approval  was given by the  Holders of such  required
percentage.

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     -126-
<PAGE>

         IN WITNESS  WHEREOF,  the parties hereto have caused this  Registration
Rights Agreement to be duly executed by their respective  authorized  persons as
of the date first indicated above.

                                     FINANCIALCONTENT, INC.

                                     By: /S/  Wing Yu
                                     Name:  Wing Yu
                                     Title:    Chief Executive Officer

                                     PURCHASER:

                                     By: /S/ David Propis
                                     Name:  David Propis
                                     Title:   Manager - Jade Special Strategy

                                     -127-
<PAGE>

Section 7.16      Schedule I

Section 7.17      List of Purchasers

Section 7.18

Section 7.19

Section 7.20      Schedule II

Section 7.21      Securities  Permitted  to  be  Included  on  the  Registration
                  Statement

1.       Shares of Common Stock issuable upon the exercise of warrants  issuable
         to the  placement  agent  and its  designees  in  connection  with  the
         transactions contemplated by the Purchase Agreement.

2.       Shares  of Common  Stock  issuable  upon  conversion  of the  Company's
         outstanding  Series A Preferred  Stock,  Series B  Preferred  Stock and
         Series C Preferred Stock.

                                     -128-
<PAGE>

                                    EXHIBIT F
                           FORM OF SECURITY AGREEMENT

                                     -129-
<PAGE>

                               SECURITY AGREEMENT

         SECURITY  AGREEMENT (as amended,  restated,  supplemented  or otherwise
modified from time to time in accordance herewith and including all attachments,
exhibits and schedules hereto, the "Agreement"),  dated as of February 13, 2006,
made by FinancialContent, Inc., a Delaware corporation (the "Grantor"), in favor
of the secured parties listed on Exhibit A to this Agreement and their permitted
successors and assigns (collectively, the "Secured Parties").

         WHEREAS,  Grantor  has issued or will  issue  separate  senior  secured
convertible  promissory notes to the Secured Parties (the "Notes") pursuant to a
Note  and  Warrant  Purchase  Agreement,  dated as of  February  13,  2006  (the
"Purchase Agreement"), by and among Grantor and the Secured Parties; and

         WHEREAS,  the Secured  Parties  and the Grantor  agree that the Grantor
execute and deliver to the Secured  Parties a security  agreement  providing for
the grant to the  Secured  Parties  of a  continuing  security  interest  in all
personal  property  and assets of the  Grantor,  all in  substantially  the form
hereof to secure all Obligations (hereinafter defined).

         NOW, THEREFORE, the parties agree as follows:

                                   Definitions

         Definition of Terms Used Herein.  All capitalized terms used herein and
not  defined  herein  have the  respective  meanings  provided  therefor  in the
Purchase Agreement or the Notes, as applicable. All terms defined in the Uniform
Commercial  Code  (hereinafter  defined) as in effect from time to time and used
herein  and  not  otherwise  defined  herein  (whether  or not  such  terms  are
capitalized) have the same definitions herein as specified therein.

         Definition of Certain Terms Used Herein. As used herein,  the following
terms have the following meanings:

         "Collateral"  means all  accounts  receivable  of the  Grantor  and all
personal  and  fixed  property  of every  kind and  nature,  including,  without
limitation,  all furniture,  fixtures,  equipment, raw materials,  inventory, as
extracted collateral,  or other goods, accounts,  contract rights, rights to the
payment of money,  insurance  refund claims and all other  insurance  claims and
proceeds,  tort claims, chattel paper,  documents,  instruments,  securities and
other investment  property,  deposit accounts,  rights to proceeds of letters of
credit and all general intangibles including, without limitation, all tax refund
claims, license fees, patents, patent licenses, patent applications, trademarks,
trademark licenses, trademark applications,  trade names, copyrights,  copyright
licenses,   copyright   applications,   rights  to  sue  and  recover  for  past
infringement of patents, trademarks and copyrights,  computer programs, computer
software, engineering drawings, service marks, customer lists, goodwill, and all
licenses,  permits,  agreements  of any kind or  nature  pursuant  to which  the
Grantor  possesses,  uses or has  authority to possess or use property  (whether
tangible or  intangible) of others or others  possess,  use or have authority to
possess or use property (whether tangible or intangible) of the Grantor, and all
recorded  data of any kind or  nature,  regardless  of the  medium of  recording
including, without limitation, all books and records, software, writings, plans,
specifications and schematics,  whether now owned or hereinafter acquired by the
Grantor; and all proceeds and products of each of the foregoing.

                                     -130-
<PAGE>

         "Default"  means any event or  circumstance  which,  with the giving of
notice,  the lapse of time, or both, would (if not cured,  waived,  or otherwise
remedied during such time) constitute an Event of Default.

         "Event of Default" has the meaning specified in the Notes.

         "Indemnitees" has the meaning specified in Section 7.5(b).

         "Lien" means: (i) any interest in property  securing an obligation owed
to, or a claim by, a Person other than the owner of the  property,  whether such
interest is based on the common  law,  statute,  or  contract,  and  including a
security  interest,  charge,  claim,  or lien arising  from a mortgage,  deed of
trust,  encumbrance,  pledge,  hypothecation,  assignment,  deposit arrangement,
agreement,  security  agreement,  conditional  sale or trust receipt or a lease,
consignment or bailment for security  purposes;  (ii) to the extent not included
under  clause  (i),  any   reservation,   exception,   encroachment,   easement,
right-of-way,  covenant, condition,  restriction, lease or other title exception
or encumbrance  affecting property;  and (iii) any contingent or other agreement
to provide any of the foregoing.

         "Notes" has the meaning  assigned to such term in the first  recital of
this Agreement.

         "Obligations"   means  all  indebtedness,   liabilities,   obligations,
covenants and duties of the Grantor to the Secured Parties of every kind, nature
and  description,  direct or indirect,  absolute or contingent,  due or not due,
contractual or tortious, liquidated or unliquidated, arising by operation of law
or otherwise,  now existing of hereafter arising under or in connection with the
Notes, this Agreement or the other Transaction Documents.

         "Registered   Organization"   means  an  entity   formed  by  filing  a
registration  document with a United States  Governmental  Authority,  such as a
corporation, limited partnership or limited liability company.

         "Security  Interest"  has the meaning  specified in Section 2.1 of this
Agreement.

         "Uniform  Commercial Code" means the Uniform  Commercial Code from time
to time in effect in the State of New York.

                                Security Interest

         Security Interest. As security for the payment and performance, in full
of the Obligations, and any extensions,  renewals, modifications or refinancings
of the Obligations,  the Grantor hereby bargains,  sells, conveys, assigns, sets
over, mortgages, pledges, hypothecates and transfers to the Secured Parties, and
hereby grants to the Secured Parties,  their successors and assigns,  a security
interest in, all of such  Grantor's  right,  title and interest in, to and under
the  Collateral  and  all   hereinafter   acquired   Collateral  (the  "Security
Interest").

         No  Assumption  of  Liability.  The  Security  Interest  is  granted as
security only and shall not subject the Secured  Parties to, or in any way alter
or modify, any obligation or liability of the Grantor with respect to or arising
out of the Collateral.

                                     -131-
<PAGE>

                         Representations and Warranties

         The Grantor represents and warrants to the Secured Parties that:

         Title and Authority. The Grantor has good and valid rights in and title
to the  Collateral  with  respect to which it has  purported to grant a security
interest  hereunder  and has full power and  authority  to grant to the  Secured
Parties  the  Security  Interest  and  to  execute,   deliver  and  perform  its
obligations in accordance with the terms of this Agreement,  without the consent
or approval  of any other  Person  other than any consent or approval  which has
been obtained.

         Filings;   Actions  to  Achieve  Perfection.   Fully  executed  Uniform
Commercial Code financing statements  (including fixture filings, as applicable)
or  other  appropriate  filings,   recordings  or  registrations   containing  a
description  of the Collateral  have been  delivered to the Secured  Parties for
filing in each United States  governmental,  municipal or other office specified
in Schedule A, which are all the filings,  recordings and registrations that are
necessary  to publish  notice of and protect the  validity of and to establish a
legal,  valid and first  priority  perfected  security  interest in favor of the
Secured Parties in respect of all Collateral in which the Security  Interest may
be perfected by filing,  recording or  registration in the United States (or any
political  subdivision  thereof) and its  territories  and  possessions,  and no
further or subsequent filing, refiling, recording, rerecording,  registration or
reregistration is necessary in any such  jurisdiction,  except as provided under
applicable  law with respect to the filing of  continuation  statements  or with
respect to the filing of  amendments or new filings to reflect the change of the
Grantor's name, location, identity or corporate structure. The Grantor's name is
listed in the preamble of this  Agreement  identically  to how it appears on its
certificate of incorporation or other organizational documents.

         Validity  and  Priority of Security  Interest.  The  Security  Interest
constitutes  (a) a legal and valid first priority  security  interest in all the
Collateral securing the payment and performance of the Obligations,  (b) subject
only to the  filings  described  in  Section  3.2  above  and  other  previously
perfected  security  interests in the Collateral  listed on Schedule 3.3 to this
Agreement  ("Existing  Liens"),  a perfected first priority security interest in
all  Collateral  in  which a  security  interest  may be  perfected  by  filing,
recording  or  registration  in  the  United  States  pursuant  to  the  Uniform
Commercial  Code or other  applicable law in the United States (or any political
subdivision  thereof) and its  territories and possessions or any other country,
state or nation (or any political subdivision thereof). The Security Interest is
and shall be subordinate to any other Existing Lien on any of the Collateral.

         Absence  of  Other  Liens.  The  Grantor's  Collateral  is owned by the
Grantor free and clear of any Lien other than Existing Liens.  Without  limiting
the  foregoing  and except as set forth on Schedule 3.4 to this  Agreement,  the
Grantor has not filed or consented to any filing of any  financing  statement or
similar  filing in favor of any  Person  other  than the  Secured  Parties,  nor
permitted  the  granting  or  assignment  of a security  interest  or  permitted
perfection  of any security  interest in the  Collateral  in favor of any Person
other  than  the  Secured  Parties.  The  Grantor's  having  possession  of  all
instruments, certificates and cash constituting Collateral from time to time and
the filing of  financing  statements  in the  offices  referred to in Schedule A
hereto  results in the  perfection  of such  security  interest.  Such  Security
Interest is, or in the case of  Collateral  in which the Grantor  obtain  rights
after the date hereof,  will be, a perfected,  first priority security interest.
Such notices, filings and all other action necessary or desirable to perfect and
protect such security interest have been duly taken.

                                     -132-
<PAGE>

         Valid and Binding  Obligation.  This Agreement  constitutes  the legal,
valid and binding obligation of the Grantor,  enforceable against the Grantor in
accordance  with its terms,  except (i) as  limited  by  applicable  bankruptcy,
insolvency,  reorganization,  moratorium,  and other laws of general application
affecting  enforcement of creditors' rights  generally,  (ii) as limited by laws
relating to the  availability of specific  performance,  injunctive  relief,  or
other equitable remedies, and (iii) to the extent the indemnification provisions
contained  in this  Agreement  may be  limited  by  applicable  federal or state
securities laws.

                                    Covenants

         Change of Name; Location of Collateral; Place of Business, State of
         Formation or Organization.
         -----------------------------------------------------------------------

                  The Grantor  shall  notify the  Secured  Parties in writing at
         least eleven (11) days prior to any change (i) in its corporate name or
         in any trade name used to identify it in the conduct of its business or
         in the ownership of its  properties,  (ii) in the location of its chief
         executive office, its principal place of business,  any office in which
         it  maintains  books or  records  relating  to  Collateral  owned by it
         (including the establishment of any such new office or facility), (iii)
         in its  identity or corporate  structure  such that a filed filing made
         under the Uniform  Commercial  Code becomes  misleading  or (iv) in its
         Federal Taxpayer Identification Number. Furthermore,  the Grantor shall
         not effect or permit any change  referred to in the preceding  sentence
         unless all filings have been made under the Uniform  Commercial Code or
         otherwise  that  are  required  in order  for the  Secured  Parties  to
         continue at all times following such change to have a valid,  legal and
         perfected first priority security interest in all the Collateral.

                  Without  limiting  Section  4.1(a),  without the prior written
         consent of the Secured Parties in each instance,  the Grantor shall not
         change its (i) principal residence, if it is an individual,  (ii) place
         of  business,  if it  has  only  one  place  of  business  and is not a
         Registered  Organization,  (iii) principal place of business, if it has
         more than one place of business and is not a  Registered  Organization,
         or (iv) state of incorporation,  formation or organization,  if it is a
         Registered Organization.

         Records. The Grantor shall maintain,  at its own cost and expense, such
complete and accurate  records with respect to the Collateral  owned by it as is
consistent  with its current  practices and in accordance  with such prudent and
standard  practices used in industries  that are the same as or similar to those
in which the Grantor is engaged, but in any event to include complete accounting
records  indicating all payments and proceeds  received with respect to any part
of the  Collateral,  and,  at such  time or times  as the  Secured  Parties  may
reasonably  request,  promptly to prepare  and deliver to the Secured  Parties a
duly  certified  schedule or  schedules in form and detail  satisfactory  to the
Secured  Parties  showing  the  identity,  amount  and  location  of any and all
Collateral.

         Periodic Certification; Notice of Changes. In the event there should at
any time be any change in the information represented and warranted herein or in
the documents and instruments executed and delivered in connection herewith, the
Grantor shall  immediately  notify the Secured Parties in writing of such change
(this notice requirement shall be in extension of and shall not limit or relieve
the Grantor of any other covenants hereunder).

                                     -133-
<PAGE>

         Protection of Security. The Grantor shall, at its own cost and expense,
take any and all actions necessary to defend title to the Collateral against all
persons  and to defend  the  Security  Interest  of the  Secured  Parties in the
Collateral and the priority thereof against any Lien.

         Inspection and  Verification.  The Secured  Parties and such persons as
the Secured Parties may reasonably designate shall have the right to inspect the
Collateral,  all records  related  thereto (and to make extracts and copies from
such records) and the premises upon which any of the  Collateral is located,  to
discuss  the  Grantor's  affairs  with  the  officers  of the  Grantor  and  its
independent  accountants and to verify under reasonable procedures the validity,
amount, quality,  quantity,  value, condition and status of, or any other matter
relating  to,  the  Collateral,  including,  in the  case of  collateral  in the
possession of any third Person, by contacting any account debtor or third Person
possessing  such  Collateral  for the  purpose  of making  such a  verification.
Out-of-pocket  expenses in connection with any inspections by representatives of
the Secured  Parties shall be (a) the obligations of the Grantor with respect to
any inspection after the Secured Parties' demand payment of the Notes or (b) the
obligation of the Secured Parties in any other case.

         Taxes;   Encumbrances.   At  their  option,  the  Secured  Parties  may
discharge,  Liens other than Existing  Liens at any time levied or placed on the
Collateral and may pay for the maintenance and preservation of the Collateral to
the  extent the  Grantor  fails to do so and the  Grantor  shall  reimburse  the
Secured  Parties on demand for any payment  made or any expense  incurred by the
Secured Parties pursuant to the foregoing authorization; provided, however, that
nothing in this Section  shall be  interpreted  as excusing the Grantor from the
performance  of, or imposing any  obligation  on the Secured  Parties to cure or
perform,  any  covenants or other  obligation of the Grantor with respect to any
Lien or maintenance or preservation of Collateral as set forth herein.

         Use and Disposition of Collateral. The Grantor shall not make or permit
to be made an  assignment,  pledge or  hypothecation  of any Collateral or shall
grant any other Lien in  respect of the  Collateral  without  the prior  written
consent of the Secured Parties.  The Grantor shall not make or permit to be made
any transfer of any  Collateral  other than with  respect to Existing  Liens and
other liens approved by the Secured  Parties and the Grantor shall remain at all
times in possession of the Collateral owned by it.

         Insurance/Notice  of Loss. Within a reasonable period of time following
the date of this Agreement, Grantor, at its own expense, shall maintain or cause
to be maintained insurance covering physical loss or damage to the Collateral as
described on Schedule 4.8 to this  Agreement.  In extension of the foregoing and
without  limitation,  such insurance  shall be payable to the Secured Parties as
loss payee under a "standard"  loss payee clause,  and the Secured Parties shall
be listed as an "additional  insured" on Grantor's general liability  insurance.
Such insurance shall not be terminated, cancelled or not renewed for any reason,
including  non-payment  of  insurance  premiums,  unless the insurer  shall have
provided  the Secured  Parties at least 30 days prior  written  notice.  Grantor
irrevocably  makes,  constitutes  and  appoints  the  Secured  Parties  (and all
officers, employees or agents designated by the Secured Parties) as its true and
lawful agent and  attorney-in-fact  for the purpose,  at any time  following the
Secured  Parties'  demand  for  payment of the Notes,  of making,  settling  and
adjusting claims in respect of Collateral under policies of insurance, endorsing
the name of Grantor on any check, draft, instrument or other item of payment for
the proceeds of such policies of insurance and for making all determinations and

                                     -134-
<PAGE>

decisions with respect  thereto.  In the event that Grantor at any time or times
shall fail to obtain or  maintain  any of the  policies  of  insurance  required
hereby or to pay any  premium in whole or part  relating  thereto,  the  Secured
Parties may, without waiving or releasing any obligation or liability of Grantor
hereunder,  in their sole  discretion,  obtain and  maintain  such  policies  of
insurance and pay such premium and take any other  actions with respect  thereto
as the Secured Parties deem advisable. All sums disbursed by the Secured Parties
in  connection  and  in  accordance  with  this  Section,  including  reasonable
attorneys' fees, court costs, expenses and other charges relating thereto, shall
be  payable  upon  demand,  by  Grantor  to the  Secured  Parties  and  shall be
additional Obligations secured hereby. Grantor shall promptly notify the Secured
Parties if any material  portion of the  Collateral  owned or held by Grantor is
damaged or destroyed.  The proceeds of any casualty  insurance in respect of any
casualty loss of any of the Collateral  shall (i) so long as the Secured Parties
have not  demanded  payment of the Notes,  be  disbursed  to Grantor  for direct
application by Grantor solely to the repair or replacement of Grantor's property
so damaged or  destroyed,  and (ii) in all other  circumstances,  be held by the
Secured Parties as cash collateral for the Obligations. The Secured Parties may,
at  their  sole  option,  disburse  from  time to time  all or any  part of such
proceeds  so held as cash  collateral,  upon such  terms and  conditions  as the
Secured Parties may reasonably prescribe,  for direct application by the Secured
Parties solely to the repair or replacement of Grantor's  property so damaged or
destroyed,  or  Grantor  may  apply  all or any  part  of such  proceeds  to the
Obligations.

         Legend.  Grantor shall legend,  in form and manner  satisfactory to the
Secured Parties, its accounts and its books, records and documents evidencing or
pertaining thereto with an appropriate  reference to the fact that such accounts
have been  assigned to the Secured  Parties and that the Secured  Parties have a
security interest therein.

                      Further Assurances; Power of Attorney

         Further  Assurances.  Grantor  shall,  at  its  own  expense,  execute,
acknowledge, deliver and cause to be duly filed all such further instruments and
documents and take all such actions as the Secured Parties may from time to time
reasonably request to better assure, preserve,  protect and perfect the Security
Interest and the rights and remedies  created  hereby,  including the payment of
any fees and taxes  required in  connection  with the  execution and delivery of
this  Agreement,  the  granting of the  Security  Interest and the filing of any
financing   statements   (including  fixture  filings)  or  other  documents  in
connection  herewith or therewith.  If any amount payable under or in connection
with any of the Collateral  shall be or become  evidenced by any promissory note
or other  instrument,  such note or instrument shall be immediately  pledged and
delivered to the Secured Parties,  duly endorsed in a manner satisfactory to the
Secured Parties.

         Power of Attorney.

                  Grantor  hereby  irrevocably  (as  a  power  coupled  with  an
interest)  constitutes  and  appoints  the  Secured  Parties  and all  officers,
employees or agents designated by the Secured Parties, its attorney-in-fact with
full power of substitution, for the benefit of the Secured Parties,

                           to take all  appropriate  action and to  execute  all
         documents  and  instruments  that  may be  necessary  or  desirable  to
         accomplish  the purposes of this  Agreement,  and without  limiting the

                                     -135-
<PAGE>

         generality of the  foregoing,  Grantor  hereby grants the power to file
         one  or  more  financing   statements   (including   fixture  filings),
         continuation  statements,  filings  with the United  States  Patent and
         Trademark  Office or United States  Copyright  Office (or any successor
         office or any similar office in any other  country) or other  documents
         for the purpose of  perfecting,  confirming,  continuing,  enforcing or
         protecting  the  Security  Interest  granted by  Grantor,  without  the
         signature  of  Grantor,  and naming  Grantor as debtor and the  Secured
         Parties as secured party; and

                           at any time following the Secured Parties' demand for
         payment of the Notes (i) to receive, endorse, assign and/or deliver any
         and all  notes,  acceptances,  checks,  drafts,  money  orders or other
         evidences of payment  relating to the  Collateral  or any part thereof;
         (ii) to demand, collect,  receive payment of, give receipt for and give
         discharges and releases of all or any of the Collateral;  (iii) to sign
         the name of Grantor on any invoice or bill of lading relating to any of
         the Collateral;  (iv) to send  verifications of accounts to any account
         debtor or any other Person  liable for an account;  (v) to commence and
         prosecute any and all suits, actions or proceedings at law or in equity
         in any court of competent  jurisdiction to collect or otherwise realize
         on all or any of the  Collateral or to enforce any rights in respect of
         any Collateral; (vi) to settle, compromise,  compound, adjust or defend
         any  actions,  suits  or  proceeding  relating  to  all  or  any of the
         Collateral;  and (vii) to use, sell, assign, transfer, pledge, make any
         agreement  with  respect  to or  otherwise  deal with all or any of the
         Collateral,  and to do all other acts and things necessary to carry out
         the purposes of this  Agreement,  as fully and completely as though the
         Secured  Parties  were the  absolute  owner of the  Collateral  for all
         purposes;  provided,  however,  that nothing herein  contained shall be
         construed as requiring or  obligating  the Secured  Parties to make any
         commitment  or to make any inquiry as to the nature or  sufficiency  of
         any payment received by the Secured Parties,  or to present or file any
         claim or notice,  or to take any action with respect to the  Collateral
         or any part  thereof  or the  moneys  due or to become  due in  respect
         thereof or any property covered thereby, and no action taken or omitted
         to be taken by the Secured  Parties with respect to the  Collateral  or
         any part thereof shall give rise to any defense, counterclaim or offset
         in favor of  Grantor  or to any claim or  action  against  the  Secured
         Parties.

                  The  provisions  of this  Article  shall in no  event  relieve
Grantor of any of its  obligations  hereunder  with respect to the Collateral or
any part thereof or impose any  obligation on the Secured  Parties to proceed in
any particular manner with respect to the Collateral or any part thereof,  or in
any way limit the exercise by the Secured  Parties of any other or further right
which it may have on the date of this Agreement or hereafter, whether hereunder,
by law or otherwise.

                                    Remedies

         Remedies upon Default.

                  Upon the occurrence and during the  continuance of an Event of
         Default,  Grantor  agrees to deliver each item of its Collateral to the
         Secured  Parties on demand,  and it is agreed that the Secured  Parties
         shall have the right to take any of or all the following actions at the
         same or  different  times  (but at all times  subject  to any  Existing
         Liens):  with or without legal process and with or without prior notice
         or demand for  performance,  to take  possession of the  Collateral and

                                     -136-
<PAGE>

         without  liability  for  trespass  to  enter  any  premises  where  the
         Collateral  may be located for the purpose of taking  possession  of or
         removing the Collateral,  exercise  Grantor's right to bill and receive
         payment for  completed  work and,  generally,  to exercise  any and all
         rights afforded to a secured party under the Uniform Commercial Code or
         other applicable law. Without limiting the generality of the foregoing,
         Grantor agrees that the Secured  Parties shall have the right,  subject
         to the mandatory  requirements  of applicable law, to sell or otherwise
         dispose of all or any part of the Collateral, at public or private sale
         or at any broker's board or on any securities exchange,  for cash, upon
         credit  or for  future  delivery  as the  Secured  Parties  shall  deem
         appropriate.  The Secured  Parties shall be authorized at any such sale
         (if it deems it advisable to do so) to restrict the prospective bidders
         or  purchasers  to persons who will  represent  and agree that they are
         purchasing  the Collateral for their own account for investment and not
         with a view to the distribution or sale thereof,  and upon consummation
         of any such sale the  Secured  Parties  shall have the right to assign,
         transfer  and  deliver  to the  purchaser  or  purchasers  thereof  the
         Collateral so sold. Each such purchaser at any such sale shall hold the
         property sold  absolutely,  free from any claim or right on the part of
         Grantor, and Grantor hereby waives (to the extent permitted by law) all
         rights of redemption,  stay and appraisal  which Grantor now has or may
         at any time in the future  have  under any rule of law or  statute  now
         existing or hereafter enacted.

                  The Secured  Parties shall give Grantor ten (10) days' written
         notice (which Grantor agrees is reasonable notice within the meaning of
         Section  9-504(3)  of the  Uniform  Commercial  Code)  of  the  Secured
         Parties' intention to make any sale of Collateral.  Such notice, in the
         case of a public  sale,  shall  state  the time and place for such sale
         and,  in the  case of a sale at a  broker's  board  or on a  securities
         exchange, shall state the board or exchange at which such sale is to be
         made and the day on which the  Collateral,  or  portion  thereof,  will
         first be offered  for sale at such board or  exchange.  Any such public
         sale shall be held at such time or times within ordinary business hours
         and at such place or places as the Secured Parties may fix and state in
         the notice (if any) of such sale. At any such sale, the Collateral,  or
         portion thereof, to be sold may be sold in one lot as an entirety or in
         separate  parcels,  as the  Secured  Parties  may (in  their  sole  and
         absolute  discretion)  determine.  The  Secured  Parties  shall  not be
         obligated to make any sale of any Collateral if it shall  determine not
         to do so, regardless of the fact that notice of sale of such Collateral
         shall have been  given.  The Secured  Parties  may,  without  notice or
         publication, adjourn any public or private sale or cause the same to be
         adjourned from time to time by announcement at the time and place fixed
         for sale, and such sale may,  without  further  notice,  be made at the
         time and place to which the same was so adjourned.  In case any sale of
         all or any  part of the  Collateral  is made on  credit  or for  future
         delivery, the Collateral so sold may be retained by the Secured Parties
         until the sale price is paid by the  purchaser or  purchasers  thereof,
         but the Secured  Parties shall not incur any liability in case any such
         purchaser  or  purchasers  shall  fail  to  take  up and  pay  for  the
         Collateral  so sold and, in case of any such failure,  such  Collateral
         may be sold again upon like  notice.  At any public  (or, to the extent
         permitted by law,  private)  sale made  pursuant to this  Section,  the
         Secured Parties may bid for or purchase,  free (to the extent permitted
         by law) from any right of redemption,  stay,  valuation or appraisal on
         the part of  Grantor  (all said  rights  being also  hereby  waived and
         released to the extent  permitted by law),  the  Collateral or any part
         thereof  offered  for sale and may make  payment on account  thereof by

                                     -137-
<PAGE>

         using  any claim  then due and  payable  to the  Secured  Parties  from
         Grantor as a credit against the purchase price, and the Secured Parties
         may, upon compliance with the terms of sale,  hold,  retain and dispose
         of such property without further  accountability  to Grantor  therefor.
         For purposes hereof, a written  agreement to purchase the Collateral or
         any portion  thereof  shall be treated as a sale  thereof;  the Secured
         Parties shall be free to carry out such sale pursuant to such agreement
         and Grantor  shall not be entitled to the return of the  Collateral  or
         any portion  thereof  subject  thereto,  notwithstanding  the fact that
         after the Secured Parties shall have entered into such an agreement all
         Obligations have been paid in full. As an alternative to exercising the
         power of sale herein conferred upon it, the Secured Parties may proceed
         by a suit or suits at law or in equity to foreclose  this Agreement and
         to sell the Collateral or any portion thereof pursuant to a judgment or
         decree of a court or courts having  competent  jurisdiction or pursuant
         to a proceeding by a court-appointed receiver.

         Application of Proceeds.  The Secured  Parties shall apply the proceeds
of any  collection  or  sale  of  the  Collateral,  as  well  as any  Collateral
consisting of cash, as follows:

                  FIRST,  to the payment of all costs and  expenses  incurred by
the Secured  Parties in connection  with such collection or sale or otherwise in
connection  with this Agreement or any of the  Obligations,  including all court
costs and the fees and expenses of its agents and legal  counsel,  and any other
costs or  expenses  incurred  in  connection  with the  exercise of any right or
remedy  hereunder,  under  the  Purchase  Agreement,  the  Notes  and the  other
Transaction Documents;

                  SECOND, to the payment in full of the Obligations; and

                  THIRD, to Grantor, its successors or assigns, or to whomsoever
may be  lawfully  entitled  to  receive  the  same,  or as a court of  competent
jurisdiction may otherwise direct.

         Subject to the  foregoing,  the  Secured  Parties  shall have  absolute
discretion as to the time of application of such proceeds, moneys or balances in
accordance with this  Agreement.  Upon any sale of the Collateral by the Secured
Parties  (including  pursuant  to a power of sale  granted by statute or under a
judicial  proceeding),  the receipt of any such proceeds,  moneys or balances by
the  Secured  Parties or of the  officer  making the sale shall be a  sufficient
discharge to the  purchaser or  purchasers  of the  Collateral  so sold and such
purchaser or purchasers  shall not be obligated to see to the application of any
part of the purchase  money paid over to the Secured  Parties or such officer or
be answerable in any way for the misapplication thereof.

         Grant of  License  to Use  Intellectual  Property.  For the  purpose of
enabling the Secured  Parties to exercise rights and remedies under this Article
at such time as the Secured Parties shall be lawfully  entitled to exercise such
rights  and  remedies,   Grantor  hereby  grants  to  the  Secured   Parties  an
irrevocable,  non-exclusive  license  (exercisable without payment of royalty or
other  compensation  to  Grantor)  to use,  license  or  sub-license  any of the
Collateral  consisting of intellectual  property now owned or hereafter acquired
by Grantor,  and wherever the same may be located, and including in such license
reasonable  access  to all  media  in which  any of the  licensed  items  may be
recorded  or stored  and to all  computer  software  and  programs  used for the

                                     -138-
<PAGE>

compilation or printout thereof.  The use of such license by the Secured Parties
may be  exercised,  at the option of the Secured  Parties,  only  following  the
Secured Parties' demand for payment of the Notes.

                                  Miscellaneous

         Notices. All communications and notices hereunder to the Grantor and to
the Secured Parties shall (except as otherwise expressly permitted herein) be in
writing and delivered to the Grantor or the Secured Parties, as the case may be,
as provided in the Purchase Agreement.

         Security  Interest   Absolute.   All  rights  of  the  Secured  Parties
hereunder,  the Security Interest and all obligations of Grantor hereunder shall
be  absolute  and  unconditional  irrespective  of (a) any lack of  validity  or
enforceability of the Purchase Agreement, the Notes, any Transaction Document or
any agreement with respect to any of the  Obligations or any other  agreement or
instrument relating to any of the foregoing,  (b) any change in the time, manner
or place of payment of, or in any other term of, all or any of the  Obligations,
or any other  amendment  or waiver of or any consent to any  departure  from the
Purchase Agreement,  the Notes, any Transaction  Document or any other agreement
or instrument,  (c) any exchange, release or non-perfection of any Lien on other
collateral,  or any  release  or  amendment  or  waiver of or  consent  under or
departure  from  any  guarantee,  securing  or  guaranteeing  all  or any of the
Obligations,  or (d) any other  circumstance  that might otherwise  constitute a
defense  available to, or a discharge of, Grantor in respect of the  Obligations
or this Agreement.

         Survival of Agreement. All covenants,  agreements,  representations and
warranties made by Grantor herein and in the  certificates or other  instruments
prepared or delivered in connection  with or pursuant to this Agreement shall be
considered to have been relied upon by the Secured Parties and shall survive the
making of the loan and the execution and delivery to the Secured  Parties of the
Notes,  regardless of any investigation  made by the Secured Parties or on their
behalf;  and shall continue in full force and effect until this Agreement  shall
terminate.

         Binding  Effect;  Several  Agreement;   Successors  and  Assigns.  This
Agreement  shall  become  effective  as to  Grantor  when a  counterpart  hereof
executed on behalf of Grantor shall have been  delivered to the Secured  Parties
and a  counterpart  hereof  shall have been  executed  on behalf of the  Secured
Parties,  and thereafter  shall be binding upon Grantor and the Secured  Parties
and their respective  successors and assigns,  and shall inure to the benefit of
Grantor, the Secured Parties and their respective successors and assigns, except
that  Grantor  shall  not have the right to assign  or  transfer  its  rights or
obligations  hereunder or any interest herein or in the Collateral (and any such
assignment or transfer shall be void) except as expressly  contemplated  by this
Agreement, the Purchase Agreement, the Notes or the other Transaction Documents.

         Secured Parties' Fees and Expense; Indemnification.

                  Grantor  agrees to pay upon demand to the Secured  Parties the
         amount of any and all  reasonable  expenses,  including all  reasonable
         fees, disbursements and other charges of its counsel and of any experts
         or agents,  which the Secured  Parties may incur in connection with (i)
         the administration of this Agreement  (including the customary fees and
         charges of the Secured  Parties for any audits  conducted by them or on
         their behalf with respect to the accounts inventory),  (ii) the custody
         or  preservation  of,  or  the  sale  of,   collection  from  or  other

                                     -139-
<PAGE>

         realization upon any of the Collateral, (iii) the exercise, enforcement
         or protection of any of the rights of the Secured Parties  hereunder or
         (iv) the failure of Grantor to perform or observe any of the provisions
         hereof.

                  Grantor agrees to indemnify the Secured Parties and the agent,
         contractors  and employees of the Secured  Parties  (collectively,  the
         "Indemnitees")  against,  and hold each of them harmless  from, any and
         all  losses,  claims,   damages,   liabilities  and  related  expenses,
         including reasonable fees,  disbursements and other charges of counsel,
         incurred by or asserted  against any of them arising out of, in any way
         connected  with,  or  as a  result  of,  the  execution,  delivery,  or
         performance   of  this   Agreement  or  any   agreement  or  instrument
         contemplated  hereby  or  any  claim,   litigation,   investigation  or
         proceeding  relating  hereto or to the  Collateral,  whether or not any
         Indemnitee is a party thereto;  provided that such indemnity shall not,
         as to any  Indemnitee,  be  available  to the extent that such  losses,
         claims,  damages,  liabilities or related  expenses are determined by a
         court of competent  jurisdiction by final and nonappealable judgment to
         have resulted from the gross  negligence or willful  misconduct of such
         Indemnitee.

                  Any  such  amounts  payable  as  provided  hereunder  shall be
         additional  Obligations  secured hereby. The provisions of this Section
         shall remain  operative and in full force and effect  regardless of the
         termination of this Agreement, the Purchase Agreement, the Notes or the
         other  Transaction  Documents,  the  consummation  of the  transactions
         contemplated  hereby,  the  repayment  of any of the  Obligations,  the
         invalidity  or  unenforceability  of any  term  or  provision  of  this
         Agreement,  the Purchase Agreement,  the Notes or the other Transaction
         Documents,  or any  investigation  made by or on behalf of the  Secured
         Parties. All amounts due under this Section shall be payable on written
         demand therefor.

         GOVERNING  LAW.  THIS  AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH THE  INTERNAL  LAWS OF THE  STATE OF NEW YORK,  WITHOUT  GIVING
EFFECT TO ANY OF THE  CONFLICTS  OF LAW  PRINCIPLES  WHICH  WOULD  RESULT IN THE
APPLICATION OF THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION. THIS AGREEMENT SHALL
NOT BE INTERPRETED OR CONSTRUED WITH ANY  PRESUMPTION  AGAINST THE PARTY CAUSING
THIS AGREEMENT TO BE DRAFTED.

         Waivers; Amendment.

                  No failure or delay of the Secured  Parties in exercising  any
power or right hereunder shall operate as a waiver thereof, nor shall any single
or  partial  exercise  of  any  such  right  or  power,  or any  abandonment  or
discontinuance of steps to enforce such a right or power,  preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Secured Parties  hereunder and under the Purchase  Agreement
are  cumulative  and are not exclusive of any rights or remedies that they would
otherwise  have.  No waiver of any  provisions of this  Agreement,  the Purchase
Agreement,  the Notes or the  other  Transaction  Documents  or  consent  to any
departure by Grantor  therefrom shall in any event be effective  unless the same
shall be permitted by paragraph (b) below, and then such waiver or consent shall
be effective only in the specific  instance and for the purpose for which given.
No notice to or demand on Grantor in any case shall entitle Grantor to any other
or further notice or demand in similar or other circumstances.

                                     -140-
<PAGE>

                  Neither this Agreement nor any provision hereof may be waived,
amended or modified  except  pursuant to an agreement or agreements,  in writing
entered into by the Secured Parties and Grantor.

         WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES,  TO THE FULLEST
EXTENT  PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY  LITIGATION  DIRECTLY OR  INDIRECTLY  ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT,  THE PURCHASE AGREEMENT OR THE NOTES. EACH PARTY
HERETO (A)  CERTIFIES  THAT NO  REPRESENTATIVE,  AGENT OR  ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED,  EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE  EVENT OF  LITIGATION,  SEEK TO  ENFORCE  THE  FOREGOING  WAIVER  AND (B)
ACKNOWLEDGES  THAT IT AND THE OTHER  PARTIES  HERETO HAVE BEEN  INDUCED TO ENTER
INTO THIS AGREEMENT,  THE PURCHASE  AGREEMENT AND THE NOTES, AS APPLICABLE,  BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

         Severability.  In the event any one or more of the provisions contained
in this  Agreement  should be held  invalid,  illegal  or  unenforceable  in any
respect,  the validity,  legality and enforceability of the remaining provisions
contained  herein shall not in any way be affected or impaired thereby (it being
understood  that  the  invalidity  of a  particular  provision  in a  particular
jurisdiction shall not in and of itself affect the validity of such provision in
any other jurisdiction).  The parties shall endeavor in good-faith  negotiations
to  replace  the  invalid,   illegal  or  unenforceable  provisions  with  valid
provisions  the  economic  effect of which comes as close as possible to that of
the invalid, illegal or unenforceable provisions.

         Counterparts.   This   Agreement   may  be  executed  in  two  or  more
counterparts,  each of which shall  constitute an original but all of which when
taken together shall  constitute but one contract.  Each party shall be entitled
to rely on a facsimile  signature of any other party  hereunder as if it were an
original.

                                     -141-
<PAGE>

         Jurisdiction; Consent to Service of Process.

                  Grantor hereby irrevocably and  unconditionally  submits,  for
         itself and its property,  to the  nonexclusive  jurisdiction of any New
         York  State  court or  Federal  court of the  United  States of America
         sitting in New York City, and any appellate court from any thereof,  in
         any action or proceeding  arising out of or relating to this Agreement,
         the Purchase  Agreement or the Notes, or for recognition or enforcement
         of any judgment,  and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding  may be heard and  determined  in such New York State or, to
         the extent permitted by law, in such Federal court. Each of the parties
         hereto  agrees that a final  judgment in any such action or  proceeding
         shall be conclusive and may be enforced in other  jurisdictions by suit
         on the judgment or in any other manner provided by law. Nothing in this
         Agreement shall affect any right that the Secured Parties may otherwise
         have to bring any action or proceeding relating to this Agreement,  the
         Purchase  Agreement,  the  Notes  or the  other  Transaction  Documents
         against Grantor or its properties in the courts of any jurisdiction.

                  Grantor hereby irrevocably and unconditionally  waives, to the
         fullest  extent it may legally  and  effectively  do so, any  objection
         which it may now or hereafter  have to the laying of venue of any suit,
         action or proceeding arising out of or relating to this Agreement,  the
         Purchase Agreement, the Notes or the other Transaction Documents in any
         New York State or Federal  court.  Each of the  parties  hereto  hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of  an  inconvenient  forum  to  the  maintenance  of  such  action  or
         proceeding in any such court.

                  Each party to this Agreement  irrevocably  consents to service
         of process in the manner  provided for notices in Section 7.1.  Nothing
         in this  Agreement will affect the right of any party to this Agreement
         to process in any other manner permitted by law.

         Termination.  This Agreement and the Security  Interest shall terminate
when all the  Obligations  have been  paid in full,  at which  time the  Secured
Parties shall execute and deliver to Grantor, at Grantor's expense,  all Uniform
Commercial Code termination statements and similar documents which Grantor shall
reasonably  request to evidence such termination.  Any execution and delivery of
termination  statements  or documents  pursuant to this Section shall be without
recourse to or warranty by the Secured Parties.

         Prejudgment  Remedy Waiver.  Grantor  acknowledges that this Agreement,
the Purchase Agreement, the Notes and the other Transaction Documents evidence a
commercial  transaction and that it could, under certain  circumstances have the
right,  to notice of and hearing on the right of the Secured Parties to obtain a
prejudgment  remedy,  such as  attachment,  garnishment  and/or  replevin,  upon
commencing  any  litigation  against  Grantor.  Notwithstanding,  Grantor hereby
waives all rights to notice,  judicial  hearing or prior court order to which it
might   otherwise  have  the  right  under  any  state  or  federal  statute  or
constitution  in  connection  with the  obtaining by the Secured  Parties of any
prejudgment  remedy by reason of this  Agreement,  the Purchase  Agreement,  the
Notes,  the other  Transaction  Documents or by reason of the Obligations or any
renewals or  extensions  of the same.  Grantor also waives any and all objection
which it might otherwise assert, now or in the future, to the exercise or use by
the  Secured  Parties of any right of setoff,  repossession  or self help as may
presently exist under statute or common law.

                                     -142-
<PAGE>

                            [SIGNATURE PAGES FOLLOW]

                                     -143-
<PAGE>

         IN WITNESS  WHEREOF,  the  parties  have duly  executed  this  Security
Agreement as of the day and year first written above.

                              FINANCIALCONTENT, INC.

                              By: /S/ Wing Yu
                                  ---------------------
                              Name:   Wing Yu
                              Title: Chief Executive Officer

SECURED PARTY:

                              By: /S/ David Propis
                                  ---------------------
                              Name:  David Propis
                              Title:    Manager - Jade Special Strategy

                                     -144-
<PAGE>

                                    EXHIBIT A
                                 Secured Parties

                                     -145-
<PAGE>

                                   SCHEDULE A
        State of Incorporation; Chief Executive Office; Filing Locations

State of Incorporation:
Delaware

Chief Executive Office:
400 Oyster Point Boulevard, Suite 435
So. San Francisco, California 94080

Filing Locations:
Secretary of State of the State of Delaware

                                     -146-
<PAGE>

                                  SCHEDULE 3.3
                                 Existing Liens

None

                                     -147-
<PAGE>

SCHEDULE 3.4
                             Absence of Other Liens

None

                                     -148-
<PAGE>

SCHEDULE 4.8
                                    Insurance

                                     -149-
<PAGE>

                                    EXHIBIT G
                 FORM OF IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

                             FINANCIALCONTENT, INC.

                                                    as of _______________, 2006

[Name and address of Transfer Agent]
Attn:  _____________

Ladies and Gentlemen:

         Reference is made to that certain Note and Warrant  Purchase  Agreement
(the  "Purchase  Agreement"),  dated  as of  February  13,  2006,  by and  among
FinancialContent,   Inc.,  a  Delaware  corporation  (the  "Company"),  and  the
purchasers named therein (collectively,  the "Purchasers") pursuant to which the
Company is issuing to the Purchasers senior secured convertible promissory notes
(the "Notes") and warrants (the  "Warrants") to purchase shares of the Company's
common stock, $0.001 par value per share (the "Common Stock"). This letter shall
serve as our irrevocable  authorization  and direction to you (provided that you
are the  transfer  agent of the Company at such time) to issue  shares of Common
Stock upon conversion of the Notes (the "Conversion Shares") and exercise of the
Warrants (the "Warrant Shares") to or upon the order of a Purchaser from time to
time  upon (i)  surrender  to you of a  properly  completed  and  duly  executed
Conversion  Notice or Exercise Notice,  as the case may be, in the form attached
hereto  as  Exhibit  I and  Exhibit  II,  respectively,  (ii) in the case of the
conversion  of Notes,  a copy of the Note (with the  original  delivered  to the
Company)  representing  the Notes  being  converted  or, in the case of Warrants
being exercised, a copy of the Warrants (with the original Warrants delivered to
the Company) being exercised (or, in each case, an  indemnification  undertaking
with respect to such Notes or the  Warrants in the case of their loss,  theft or
destruction),  and (iii) delivery of a treasury order or other appropriate order
duly executed by a duly authorized  officer of the Company.  So long as you have
previously received (x) written  confirmation from counsel to the Company that a
registration  statement  covering  resales of the  Conversion  Shares or Warrant
Shares,  as  applicable,  has been  declared  effective  by the  Securities  and
Exchange  Commission  (the "SEC") under the  Securities  Act of 1933, as amended
(the "1933 Act"), and no subsequent  notice by the Company or its counsel of the
suspension  or  termination  of  its  effectiveness  and  (y)  a  copy  of  such
registration statement, the Conversion Shares or the Warrant Shares, as the case
may be, were sold  pursuant to the  Registration  Statement,  then  certificates
representing the Conversion  Shares and the Warrant Shares,  as the case may be,
shall not bear any legend restricting  transfer of the Conversion Shares and the
Warrant  Shares,  as the case may be,  thereby  and should not be subject to any
stop-transfer  restriction.  Provided,  however, that if you have not previously
received  (i)  written   confirmation   from  counsel  to  the  Company  that  a
registration  statement  covering  resales of the  Conversion  Shares or Warrant
Shares,  as  applicable,  has been declared  effective by the SEC under the 1933
Act, and (ii) a copy of such registration  statement,  then the certificates for
the Conversion Shares and the Warrant Shares shall bear the following legend:

                 "THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN
                 REGISTERED  UNDER THE  SECURITIES  ACT OF 1933, AS AMENDED (THE
                 SECURITIES  ACT"), OR ANY STATE  SECURITIES LAWS AND MAY NOT BE
                 SOLD,  TRANSFERRED OR OTHERWISE  DISPOSED OF UNLESS  REGISTERED
                 UNDER THE SECURITIES ACT OR APPLICABLE  STATE  SECURITIES LAWS,
                 OR FINANCIALCONTENT, INC. SHALL HAVE RECEIVED AN OPINION OF ITS
                 COUNSEL  THAT   REGISTRATION  OF  SUCH  SECURITIES   UNDER  THE
                 SECURITIES  ACT AND UNDER THE  PROVISIONS OF  APPLICABLE  STATE
                 SECURITIES LAWS IS NOT REQUIRED."

                                     -150-
<PAGE>

and,  provided  further,  that the  Company  may from time to time notify you to
place  stop-transfer  restrictions on the certificates for the Conversion Shares
and the  Warrant  Shares  in the event a  registration  statement  covering  the
Conversion Shares and the Warrant Shares is subject to amendment for events then
current.

         A form of  written  confirmation  from  counsel to the  Company  that a
registration statement covering resales of the Conversion Shares and the Warrant
Shares has been  declared  effective  by the SEC under the 1933 Act is  attached
hereto as Exhibit III.

         Please be advised that the  Purchasers  are relying upon this letter as
an  inducement  to enter into the  Purchase  Agreement  and,  accordingly,  each
Purchaser is a third party beneficiary to these instructions.

         Please execute this letter in the space  indicated to acknowledge  your
agreement  to act in  accordance  with these  instructions.  Should you have any
questions concerning this matter, please contact me at ___________.

                                            Very truly yours,

                                            FINANCIALCONTENT, INC.

                                            By:
                                               ---------------------------------

                                            Name:
                                                  ------------------------------
                                            Title:
                                                    ----------------------------

ACKNOWLEDGED AND AGREED:

[TRANSFER AGENT]

By:
         -----------------------------------------------------
Name:
         -----------------------------------------------------
Title:
         -----------------------------------------------------
Date:
         ------------------

                                     -151-
<PAGE>

                                    EXHIBIT I

                             FINANCIALCONTENT, INC.
                                CONVERSION NOTICE

     (To be Executed by the Registered Holder in order to Convert the Note)

The undersigned hereby  irrevocably elects to convert $ ________________  of the
principal  amount  of the above  Note No.  ___ into  shares  of Common  Stock of
FINANCIALCONTENT,  INC. (the "Maker")  according to the conditions hereof, as of
the date written below.

Date of Conversion _____________________________________________________________

Applicable Conversion Price ____________________________________________________

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

Signature_______________________________________________________________________

         [Name]

Address:________________________________________________________________________

        ________________________________________________________________________

                                     -152-
<PAGE>
                                   EXHIBIT II

                             FORM OF EXERCISE NOTICE

                                  EXERCISE FORM

                             FINANCIALCONTENT, INC.

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

Dated: _________________            Signature __________________________________
                                    Address   __________________________________
                                              __________________________________

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

                                   ASSIGNMENT

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

Dated: _________________            Signature __________________________________
                                    Address   __________________________________
                                              __________________________________

                               PARTIAL ASSIGNMENT

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

Dated: _________________            Signature __________________________________
                                    Address   __________________________________
                                              __________________________________

                           FOR USE BY THE ISSUER ONLY:

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

                                     -153-
<PAGE>

                                   EXHIBIT III

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[Name and address of Transfer Agent]
Attn:  _____________

                  Re:      FinancialContent, Inc.

Ladies and Gentlemen:

         We are counsel to  FinancialContent,  Inc., a Delaware corporation (the
"Company"),  and have  represented  the Company in connection  with that certain
Note and Warrant  Purchase  Agreement  (the "Purchase  Agreement"),  dated as of
February 13, 2006,  by and among the Company and the  purchasers  named  therein
(collectively,  the  "Purchasers")  pursuant to which the Company  issued to the
Purchasers  senior  secured  convertible  promissory  notes  (the  "Notes")  and
warrants (the  "Warrants")  to purchase  shares of the  Company's  common stock,
$0.001  par value per share  (the  "Common  Stock").  Pursuant  to the  Purchase
Agreement,  the Company has also entered into a  Registration  Rights  Agreement
with the Purchasers (the "Registration Rights Agreement"),  dated as of February
13, 2006, pursuant to which the Company agreed,  among other things, to register
the Registrable  Securities (as defined in the Registration  Rights  Agreement),
including the shares of Common Stock  issuable upon  conversion of the Notes and
exercise of the  Warrants,  under the  Securities  Act of 1933,  as amended (the
"1933 Act"). In connection with the Company's obligations under the Registration
Rights  Agreement,  on  February  13,  2006,  the Company  filed a  Registration
Statement on Form SB-2 (File No.  333-________) (the  "Registration  Statement")
with the Securities and Exchange  Commission  (the "SEC") relating to the resale
of the Registrable  Securities  which names each of the present  Purchasers as a
selling stockholder thereunder.

         In connection  with the  foregoing,  we advise you that a member of the
SEC's  staff has  advised  us by  telephone  that the SEC has  entered  an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF  EFFECTIVENESS]  on [ENTER DATE OF  EFFECTIVENESS]  and we have no knowledge,
after  telephonic  inquiry of a member of the SEC's  staff,  that any stop order
suspending its  effectiveness  has been issued or that any  proceedings for that
purpose are pending  before,  or  threatened  by, the SEC and  accordingly,  the
Registrable  Securities  are available for resale under the 1933 Act pursuant to
the Registration Statement.

                                           Very truly yours,

                                           [COMPANY COUNSEL]

                                           By:
                                              ----------------------------------

cc:      [LIST NAMES OF PURCHASERS]

                                     -154-
<PAGE>

                                    EXHIBIT H
                                 FORM OF OPINION

         1. The Company is a corporation duly incorporated, validly existing and
in good  standing  under the laws of the State of Delaware and has the requisite
corporate  power to own,  lease and operate its  properties  and assets,  and to
carry on its business as presently conducted. The Company is duly qualified as a
foreign corporation to do business and is in good standing in every jurisdiction
in which the failure to so qualify would have a Material Adverse Effect.

         2. The Company has the requisite corporate power and authority to enter
into and perform its obligations  under the  Transaction  Documents and to issue
the Notes,  the Warrants and the Common Stock  issuable  upon  conversion of the
Notes and exercise of the Warrants.  The execution,  delivery and performance of
each of the Transaction  Documents by the Company and the  consummation by it of
the transactions  contemplated  thereby have been duly and validly authorized by
all necessary  corporate  action and no further consent or  authorization of the
Company,  its Board of Directors or its  stockholders  is required.  Each of the
Transaction  Documents have been duly executed and delivered,  and the Notes and
the Warrants  have been duly  executed,  issued and delivered by the Company and
each of the  Transaction  Documents  constitutes  a  legal,  valid  and  binding
obligation of the Company enforceable against the Company in accordance with its
respective  terms.  The Common Stock  issuable upon  conversion of the Notes and
exercise of the  Warrants  are not subject to any  preemptive  rights  under the
Certificate of Incorporation or the Bylaws.

         3. The Notes and the  Warrants  have been  duly  authorized  and,  when
delivered against payment in full as provided in the Purchase Agreement, will be
validly  issued,  fully  paid and  nonassessable.  The  shares of  Common  Stock
issuable  upon  conversion  of the Notes and exercise of the Warrants  have been
duly authorized and reserved for issuance, and when delivered upon conversion or
against  payment  in  full  as  provided  in the  Notes  and  the  Warrants,  as
applicable, will be validly issued, fully paid and nonassessable.

         4. The execution,  delivery and  performance of and compliance with the
terms of the Transaction  Documents and the issuance of the Notes,  the Warrants
and the Common Stock  issuable upon  conversion of the Notes and exercise of the
Warrants do not (a) violate any provision of the Certificate of Incorporation or
Bylaws,  (b)  conflict  with,  or  constitute  a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of  termination,  amendment,  acceleration  or  cancellation  of, any
material agreement,  mortgage,  deed of trust,  indenture,  note, bond, license,
lease  agreement,  instrument  or obligation to which the Company is a party and
which is set  forth on  Schedule  I, (c)  create  or  impose a lien,  charge  or
encumbrance on any property of the Company under any agreement or any commitment
which is set forth on Schedule I to which the Company is a party or by which the
Company  is bound or by which any of its  respective  properties  or assets  are
bound,  or (d) result in a violation  of any  Federal,  state,  local or foreign
statute,  rule,  regulation,  order,  judgment,  injunction or decree (including
Federal and state securities laws and regulations)  applicable to the Company or
by which any property or asset of the Company is bound or affected,  except,  in
all cases other than violations  pursuant to clauses (a) and (d) above, for such
conflicts, default, terminations,  amendments,  acceleration,  cancellations and
violations  as would  not,  individually  or in the  aggregate,  have a Material
Adverse Effect.

                                     -155-
<PAGE>

         5. No consent, approval or authorization of or designation, declaration
or filing with any governmental authority on the part of the Company is required
under  Federal,  state or local law, rule or  regulation in connection  with the
valid execution,  delivery and performance of the Transaction Documents,  or the
offer, sale or issuance of the Notes, the Warrants and the Common Stock issuable
upon  conversion of the Notes and exercise of the Warrants other than filings as
may be required by applicable  Federal and state securities laws and regulations
and any applicable stock exchange rules and regulations.

         6. To our knowledge,  there is no action, suit, claim, investigation or
proceeding  pending or  threatened  against  the  Company  which  questions  the
validity of the Purchase Agreement or the transactions  contemplated  thereby or
any action  taken or to be taken  pursuant  thereto.  There is no action,  suit,
claim,  investigation or proceeding  pending,  or to our knowledge,  threatened,
against or involving  the Company or any of its  properties or assets and which,
if adversely  determined,  is reasonably  likely to result in a Material Adverse
Effect.  To  our  knowledge,   there  are  no  outstanding  orders,   judgments,
injunctions,  awards or decrees  of any court,  arbitrator  or  governmental  or
regulatory  body against the Company or any officers or directors of the Company
in their capacities as such.

         7. Assuming that all of the Purchasers'  representations and warranties
in the Purchase  Agreement  are complete and accurate,  the offer,  issuance and
sale of the Notes  and the  Warrants  and the  offer,  issuance  and sale of the
Common Stock issuable upon  conversion of the Notes and exercise of the Warrants
are exempt from the registration  requirements of the Securities Act of 1933, as
amended.

         8. The Company is not, and as a result of and immediately  upon Closing
will not be, an "investment company" or a company "controlled" by an "investment
company," within the meaning of the Investment Company Act of 1940, as amended.

         9. The  Security  Agreement  will create a valid  security  interest in
favor of the  Purchasers  in such assets of the Company  that is subject to such
Security Agreement.

                                     -156-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]