Document:

Exhibit
      10.15

    
 

    THIS
      NOTE, THE SHARES OF COMMON STOCK AND/OR OTHER SECURITIES ISSUABLE UPON
      CONVERSION OF THIS NOTE (THE “SECURITIES”) HAVE BEEN ACQUIRED FOR INVESTMENT
      PURPOSES ONLY AND MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) SHALL HAVE BECOME
      EFFECTIVE WITH RESPECT THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION
      OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT
      REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED
      TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS
      LEGEND SHALL BE ENDORSED UPON ANY NOTE ISSUED IN EXCHANGE FOR THIS NOTE AND
      ANY
      SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE.

    

    

    XA,
      INC.

    

    11%
      Senior Secured Convertible Promissory Note

    

    

    
      	
              Bridge
                Note No.: 8

            	
              June
                29, 2007

            

    

    

    

    

    FOR
      VALUE
      RECEIVED, XA, Inc., a Nevada corporation (collectively with all of its
      Subsidiaries, as defined in the SPA (as defined below), the “Company”)
      with
      its principal executive office at 875 North Michigan Avenue, Suite 2626,
      Chicago, IL 60611, promises to pay to the order of Vision Opportunity Master
      Fund, Ltd. (the “Payee”
or
      the
“Holder
      of this Note”)
      or
      registered assigns on the earlier of (i) June 29, 2008; or (ii) if so
      elected by the Payee, upon consummation by the Company of a merger, combination
      or sale of substantially all of its assets or the purchase by a single entity
      or
      person or group of affiliated entities or persons of more than fifty (50%)
      percent of the voting stock of the Company (the “Maturity
      Date”),
      the
      principal amount of Two
      Hundred Thousand ($200,000)
      (the
“Principal
      Amount”)
      in
      such coin or currency of the United States of America as at the time of payment
      shall be legal tender for the payment of public and private debts. Interest
      on
      this Note shall accrue on the Principal Amount outstanding from time to time
      at
      a rate per annum computed in accordance with Section 3
      hereof
      and shall be payable on the Maturity Date, or earlier upon conversion of this
      Note in accordance with the provisions of Section 6
      hereof
      (or as may otherwise be provided in this Note). Nothing in item (ii) of
      this paragraph shall be construed as the consent by the holder of this Note
      to
      any action otherwise prohibited by the terms of this Note or as a waiver of
      any
      such prohibition.

    

    This
      Note
      is secured by a Security Agreement dated the date hereof (the “Security
      Agreement”)
      of the
      Company in favor of the Payee and all other Noteholders covering certain
      collateral (the “Collateral”),
      all
      as more particularly described and provided therein, and is entitled to the
      benefits thereof. The Security Agreement, the Uniform Commercial Code financing
      statements in connection with the Security Agreement and any and all other
      documents executed and delivered by the Company to the Payee under which the
      Payee is granted liens on assets of the Company are collectively referred to
      as
      the “Security
      Documents.”

    

    Each
      payment by the Company pursuant to this Note shall be made without set-off
      or
      counterclaim and in immediately available funds.

    
      
        
        

      

      
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    The
      Company (i) waives presentment, demand, protest or notice of any kind in
      connection with this Note and (ii) agrees, in the event of an Event of
      Default, to pay to the holder of this Note, on demand, all costs and expenses
      (including reasonable legal fees and expenses) incurred in connection with
      the
      enforcement and collection of this Note.

    

    This
      Note, and Prior Notes on substantially similar terms issued in August, September
      and October 2006 in the aggregate amount of $2,700,000 (the “Prior
      Notes”)
      and
      other identical Notes in the aggregate principal amount of up to $500,000 (the
      “Follow
      On Notes”
and
      collectively the “Notes”)
      are
      (were) issued by the Company in connection with a private placement (the
“Bridge
      Financing”)
      by the
      Company of its of Notes and Warrants pursuant and in accordance with (x) a
      Securities Purchase Agreement dated the date hereof by and among the Company
      and
      the Payee (the “SPA”),
      and
      (y) a prior Securities Purchase Agreement relating to the Prior Notes, copies
      of
      which are available for inspection at the Company’s principal office.
      Notwithstanding any provision to the contrary contained herein, this Note is
      subject and entitled to certain terms, conditions, covenants and agreements
      contained in the SPA. Any transferee of this Note, by its acceptance hereof,
      assumes the obligations of the Payee in the SPA with respect to the conditions
      and procedures for transfer of this Note. Reference to the SPA shall in no
      way
      impair the absolute and unconditional obligation of the Company to pay both
      principal hereof and interest hereon as provided herein.

    

    1. No
      Prepayment.
      This
      Note may not be prepaid prior to the Maturity Date (except as otherwise provided
      by Section 6, herein).

    

    2. Investment
      Warrants.
      In
      consideration for the loan evidenced by this Note, the Company shall issue
      to
      the holders of the Note five-year Investment Warrants to purchase in the
      aggregate 200,000 shares of the Company’s common stock, $.001 par value per
      share (the “Common
      Stock”)
      at an
      exercise price of $.30 per share (the “Investment
      Warrants”).
      The
      Holder of this Note may at any time that this Note remains outstanding present
      this Note to the Company in payment of the exercise price of all or any portion
      of the Investment Warrants. The Holder of this Note is purchasing $200,000
      in
      Follow On Notes (which represents a portion of the full amount of the Follow
      On
      Notes being offered) and is being granted an aggregate of 200,000 five-year
      Investment Warrants in connection with such investment.

    

    3. Computation
      of Interest.

    

    A. Base
      Interest Rate.
      Subject
      to Subsections 3B
      and 3C
      below,
      the outstanding Principal Amount shall bear interest at the rate of eleven
      (11%)
      percent per annum.

    

    B. Penalty
      Interest.
      In the
      event the Note is not repaid on the Maturity Date, the rate of interest
      applicable to the unpaid Principal Amount shall be adjusted to eighteen (18%)
      percent per annum from the date of default until repayment; provided, that
      in no
      event shall the interest rate exceed the Maximum Rate provided in Section 3C
      below.

    

    C. Maximum
      Rate.
      In the
      event that it is determined that, under the laws relating to usury applicable
      to
      the Company or the indebtedness evidenced by this Note (“Applicable
      Usury Laws”),
      the
      interest charges and fees payable by the Company in connection herewith or
      in
      connection with any other document or instrument executed and delivered in
      connection herewith cause the effective interest rate applicable to the
      indebtedness evidenced by this Note to exceed the maximum rate allowed by law
      (the “Maximum
      Rate”),
      then
      such interest shall be recalculated for the period in question and any excess
      over the Maximum Rate paid with respect to such period shall be credited,
      without further agreement or notice, to the Principal Amount outstanding
      hereunder to reduce said balance by such amount with the same force and effect
      as though the Company had specifically designated such extra sums to be so
      applied to principal and the Payee had agreed to accept such extra payment(s)
      as
      a premium-free prepayment. All such deemed prepayments shall be applied to
      the
      principal balance payable at maturity. In no event shall any agreed-to or actual
      exaction as consideration for this Note exceed the limits imposed or provided
      by
      Applicable Usury Laws in the jurisdiction in which the Company is resident
      applicable to the use or detention of money or to forbearance in seeking its
      collection in the jurisdiction in which the Company is
      resident.

    
      
        
        

      

      
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    4. Covenants
      of Company.
      For the
      purposes of this Section 4, the term “Company” shall include all of the
      Subsidiaries (as defined in the SPA).

    

    A. Affirmative
      Covenants.
      The
      Company covenants and agrees that, so long as this Note shall be outstanding,
      it
      will perform the obligations set forth in this Section 4A,
      unless
      it has otherwise obtained the prior written consent of the Payee:

    

    (i) Taxes
      and Levies.
      The
      Company will promptly pay and discharge all taxes, assessments, and governmental
      charges or levies imposed upon the Company or upon its income and profits,
      or
      upon any of its property, before the same shall become delinquent, as well
      as
      all claims for labor, materials and supplies which, if unpaid, might become
      a
      lien or charge upon such properties or any part thereof; provided,
      however,
      that
      the Company shall not be required to pay and discharge any such tax, assessment,
      charge, levy or claim so long as the validity thereof shall be contested in
      good
      faith by appropriate proceedings and the Company shall set aside on its books
      adequate reserves in accordance with generally accepted accounting principles
      (“GAAP”)
      with
      respect to any such tax, assessment, charge, levy or claim so
      contested;

    

    (ii) Maintenance
      of Existence.
      The
      Company will do or cause to be done all things reasonably necessary to preserve
      and keep in full force and effect its corporate existence, rights and franchises
      and comply with all laws applicable to the Company, except where the failure
      to
      comply could not reasonably be expected to have a material adverse effect on
      the
      Company;

    

    (iii) Maintenance
      of Property.
      The
      Company will at all times maintain, preserve, protect and keep such property
      material to the conduct of its business in good repair, working order and
      condition, and from time to time make all needful and proper repairs, renewals,
      replacements and improvements thereto as shall be reasonably required in the
      conduct of its business;

    

    (iv) Insurance.
      The
      Company will, to the extent necessary for the operation of its business, keep
      adequately insured by financially sound reputable insurers, all property of
      a
character
      usually insured by similar corporations and carry such other insurance as is
      usually carried by similar corporations;

    
      
        
        

      

      
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    (v) Books
      and Records.
      The
      Company will at all times keep true and correct books, records and accounts
      reflecting all of its business affairs and transactions in accordance with
      GAAP.
      Such books and records shall be open at reasonable times and upon reasonable
      notice to the inspection of the Payee or its agents, subject to the execution
      by
      such persons of a reasonable non-disclosure agreement;

    

    (vi) Underlying
      Securities.
      The
      Company agrees to keep reserved such number of shares of Common Stock as will
      permit full conversion of the Notes at any time or from time to time at the
      Conversion Price (as defined herein);

    

    (vii) Notice
      of Certain Events.
      The
      Company will give prompt written notice (with a description in reasonable
      detail) to the Payee of:

     

    (a) the
      occurrence of any Event of Default (as defined in Section 5
      hereof),
      or any event which, with the giving of notice or the lapse of time, would
      constitute an Event of Default, or an event of default under any document or
      instrument evidencing or governing any indebtedness of the Company and the
      delivery of any notice effecting the acceleration of any such indebtedness;
      and

    

    (b) the
      occurrence of any litigation, arbitration or governmental investigation or
      proceeding not previously disclosed by the Company to the Payee in writing
      which
      has been instituted or, to the knowledge of the Company, is threatened, against
      the Company or to which any of its properties, assets or revenues is subject
      which, if adversely determined, would reasonably be expected to have a material
      adverse effect on the Company;

    

    (c) any
      material adverse development which shall occur in any litigation, arbitration
      or
      governmental investigation or proceeding previously disclosed by the Company
      to
      the Payee; and

    

    (viii) Security
      Interests.
      The
      Company shall perform any and all acts and execute any and all documents
      (including, without limitation, the execution, amendment or supplementation
      of
      any financing statement and continuation statement) for filing under the
      provisions of the Uniform Commercial Code (the “UCC”),
      and
      the rules and regulations thereunder, or any other statute, rule or regulation
      of any applicable jurisdiction which are necessary (and/or advisable at the
      request of the Holders or its counsel) in order to maintain in favor of the
      holders of the Notes, a valid and perfected lien on the Collateral (as defined
      in the Security Agreement), subject only to the Prior Purchasers’ (as defined in
      the SPA) and the prior first priority security interest of LaSalle Bank National
      Association liens.

    

    (ix) Access.
      The
      Company will grant holders of this Note access to Company facilities and
      personnel during normal business hours and with reasonable advance notification.
      The Company will deliver to the Holders annual, quarterly financial statements
      and copies
      of
      other financial and other documents and/or information reasonably requested
      by
      the Holder. 

    
      
        
        

      

      
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    (x)
      Non-Public
      Information.
      The
      Company represents, covenants and agrees that neither it nor any other person
      acting on its behalf has provided or will provide any Holder or its agents
      or
      counsel with any information that the Company believes constitutes material
      non-public information (other than with respect to the transactions contemplated
      by this Agreement), unless prior thereto such Holder shall have been provided
      with notice of the Company’s intent to provide such information, and shall have
      expressly agreed to accept such information. The Company understands and
      confirms that each Holder shall be relying on the foregoing representations
      in
      effecting transactions in securities of the Company.

    

    B. Negative
      Covenants.
      The
      Company covenants and agrees that, so long as this Note shall be outstanding,
      it
      will perform the obligations set forth in this Section 4B
      unless
      it has otherwise obtained the prior written consent of all Holders:

    

    (i)  Liquidation,
      Dissolution.
      The
      Company will not liquidate or dissolve, consolidate with, or merge into or
      with,
      any other corporation or other entity, except that any wholly-owned subsidiary
      may merge with another wholly-owned subsidiary or with the Company (so long
      as
      the Company is the surviving entity and no Event of Default shall occur as
      a
      result thereof). 

    

    (ii) Sales
      of Assets.
      The
      Company will not sell, transfer, lease or otherwise dispose of, or grant
      options, warrants or other rights with respect to, all or a substantial part
      of
      its properties or assets (an “Asset
      Transaction”)
      to any
      person or entity, provided that
      this
      clause (ii) shall not restrict any disposition made in the ordinary
      course of business and consisting of:

    

    (a)
      capital goods that are obsolete or have no remaining useful life;
      or

    

    (b)
      finished goods inventories.

    

    (iii) Redemptions.
      The
      Company will not redeem or repurchase any outstanding securities of the
      Company.

    

    (iv) Indebtedness.
      Without
      the express consent of the Holder, so
      long as
      this Note is outstanding, the Company shall not, and the Company shall not
      permit any of its Subsidiaries to, directly or indirectly, incur or guarantee,
      assume or suffer to exist any indebtedness, other than the (i) indebtedness
      evidenced by this Note and the other Notes, (ii) the Permitted Senior
      Indebtedness (as defined in the Security Agreement), (iii) indebtedness incurred
      through a Private Offering, and (iv) any Subsequent Financing in which the
      holders of the Rights Option shall invest. 

    

    (v) Right
      of First Refusal.
      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 each Holder
      of
      the Notes of the terms and conditions of any proposed indebtedness or any offer
      or sale to, or exchange with, any third party of any debt or equity securities
      (a “Subsequent
      Financing”).
      Such
      notice shall describe, in reasonable detail, the proposed Subsequent Financing,
      the
      names and investment amounts of all investors participating in the Subsequent
      Financing (if known), and all of the terms and conditions thereof and proposed
      definitive documentation to be entered into in connection therewith. The notice
      shall provide each Holder of the Notes an option (the “Rights
      Option”),
      during the five (5) days following delivery of such notice, to inform the
      Company whether such Holder of the Notes will participate up to its pro
      rata portion
      in such Subsequent Financing on the same, absolute terms and conditions
      contemplated by such Subsequent Financing. If any Holder of the Notes elects
      not
      to participate in any such Subsequent Financing, the other Holders of the Notes
      may therein participate on a pro
      rata
      basis.
      If the Company does not receive notice of exercise of the Rights Option from
      the
      Holder of the Notes within five (5) days of such Holder of the Notes receiving
      such notice, 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 Holder of the Notes. 

    
      
        
        

      

      
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    (vi)  Negative
      Pledge.
      Except
      for the other Follow On Notes, the Company will not hereafter create, incur,
      assume or suffer to exist any mortgage, pledge, hypothecation, assignment,
      security interest, encumbrance, lien (statutory or other), preference, priority
      or other security agreement or preferential arrangement of any kind or nature
      whatsoever (including any conditional sale or other title retention agreement
      and any financing lease) (each, a “Lien”)
      upon
      any of its property, revenues or assets, whether now owned or hereafter
      acquired, except:

    

    (a) Liens
      for
      taxes, assessments or other governmental charges or levies not at the time
      delinquent or thereafter payable without penalty or being contested in good
      faith by appropriate proceedings and for which adequate reserves in accordance
      with GAAP shall have been set aside on its books;

    

    (b) Liens
      of
      carriers, warehousemen, mechanics, materialman and landlords incurred in the
      ordinary course of business for sums not overdue or being contested in good
      faith by appropriate proceedings and for which adequate reserves in accordance
      with GAAP shall have been set aside on its books;

    

    (c) Liens
      (other than Liens arising under the Employee Retirement Income Security Act
      of
      1974, as amended, or Section 412(n) of the Internal Revenue Code of 1986,
      as amended) incurred in the ordinary course of business in connection with
      workers’ compensation, unemployment insurance or other forms of governmental
      insurance or benefits, or to secure performance of tenders, statutory
      obligations, leases and contracts (other than for borrowed money) entered into
      in the ordinary course of business or to secure obligations on surety or appeal
      bonds; 

    

    (d) judgment
      Liens in existence less than thirty (30) days after the entry thereof or with
      respect to which execution has been stayed;

    

    (e) Liens
      in
      the nature of zoning restrictions, easements and rights or restrictions of
      record on the use of real property which do not materially detract from its
      value or impair its use;

    
      
        
        

      

      
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    (f) Liens
      arising by operation of law in favor of the owner or sublessor of leased
      premises and confined to the property rented;

    

    (g) Liens
      arising from any litigation or proceeds which is being contested in good faith
      by appropriate proceedings, provided, however, that no execution or levy has
      been made; and

    

    (h) Liens
      which secure indebtedness permitted by Section 4B(iv).

    

    (vii) Investments.
      The
      Company will not purchase, own, invest in or otherwise acquire, directly or
      indirectly, any stock or other securities or make or permit to exist any
      investment or capital contribution or acquire any interest whatsoever in any
      other person or entity or permit to exist any loans or advances for such
      purposes except for investments in direct obligations of the United States
      of
      America or any agency thereof, obligations guaranteed by the United States
      of
      America and certificates of deposit or other obligations of any bank or trust
      company organized under the laws of the United States or any state thereof
      and
      having capital and surplus of at least $500,000,000; provided, however, that
      nothing contained in this clause (vii) shall preclude the Company from making
      acquisitions for the purpose of expanding its business.

    

    (viii) Guaranteed
      Indebtedness.
      The
      Company shall not create, incur, assume and/or permit to exist any Guaranteed
      Indebtedness (as defined below) to any bank, lender, or any other person in
      connection with any credit facilities extended by such creditors to the Company
      and/or any of its Subsidiaries (as defined in the SPA), and/or in connection
      with any other contracts or agreements. “Guaranteed
      Indebtedness”
shall
      mean as to any person, any obligation of such person guaranteeing, providing
      comfort or otherwise supporting any indebtedness, lease, dividend, or other
      obligation of any other person in any manner, including any obligation or
      arrangement of such person to (1) purchase or repurchase any such primary
      obligation, (2) advance or supply funds for the purchase or payment of any
      primary obligation or to maintain working capital or otherwise to maintain
      working solvency or any balance sheet condition; (3) purchase property,
      securities or services primarily for the purpose of assuring the owner of any
      such obligation of the ability of the Company to make payment of such
      obligation; (4) protect the beneficiary of such arrangement from loss; or (5)
      indemnify the owner of such obligation against loss. 

    

    (ix) Transactions
      with Affiliates.
      Other
      than as may be expressly permitted in the SPA, neither the Company nor its
      subsidiaries shall repay any indebtedness or enter into any transaction,
      including, without limitation, the purchase, sale, lease or exchange of
      property, real or personal, the purchase or sale of any security, the borrowing
      or lending of any money, or the rendering of any service, with any person or
      entity affiliated with the Company (including officers, directors and
      shareholders owning three (3%) percent or more of the Company’s outstanding
      capital stock); provided,
      however,
      that
      the provisions of this Section 4(B)(xi) shall not apply to the provision of
      legal services by David M. Loev or the The Loev Law Firm, PC.

    

    (x) Dividends.
      The
      Company will not accrue, declare or pay any cash dividends or distributions,
      whether accrued or otherwise, on its outstanding capital stock, provided, however,
      that nothing herein contained shall prevent the Company from effecting a stock
      split or declaring or paying any dividend consisting solely of shares of any
      class of Common Stock to the holders of shares of such class of Common Stock,
      provided that (i) such stock split or stock dividend is effected equally
      across all classes of Common Stock and (ii) the holder of the Note
      participates in such events as if the holder had converted the Note immediately
      prior to such event into the number of shares of Common Stock he would be
      entitled to receive if he had so converted.

    
      
        
        

      

      
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    (xi) The
      Company will not make or create any direct and/or indirect
      subsidiaries.

    

    (xii) Other
      than expressly permitted in the SPA, or pursuant to a Private Offering, the
      Company shall not issue any additional securities.

    

    (xiii) Other
      than as expressly permitted in the SPA, the Company shall not provide and/or
      pay
      any cash bonus or other compensation to any of its employees, officers,
      directors and/or consultants in excess of what is expressly permitted in their
      respective employment agreements (or if no agreements are in place, other than
      what has been historically paid).

    

    5. Events
      of Default.

    

    A. 
      The term
“Event
      of Default”
shall
      mean any of the events set forth in this Section 5A:

    

    (i) Non-Payment
      of Obligations.
      The
      Company shall default in the payment of the principal or accrued interest on
      this Note when and as the same shall become due and payable, whether by
      acceleration or otherwise (and solely with respect to a default in the payment
      of accrued interest on this Note, such default is continuing for five (5)
      days).

    

    (ii) Non-Performance
      of Affirmative Covenants.
      The
      Company shall default in the due observance or performance of any material
      covenant set forth in Section 4A,
      which
      default shall continue uncured for five (5) business days.

    

    (iii) Non-Performance
      of Negative Covenants.
      The
      Company shall default in the due observance or performance of any covenant
      set
      forth in Section 4B,
      which
      default shall continue uncured for two (2) business days.

    

    (iv) Bankruptcy,
      Insolvency, etc.
      The
      Company shall:

    

    (a) generally
      fail or be unable to pay, or admit in writing its inability to pay, its debts
      as
      they become due;

    

    (b) 
      apply
      for, consent to, or acquiesce in, the appointment of a trustee, receiver,
      sequestrator or other custodian for the Company or any of its property, or
      make
      a general assignment for the benefit of creditors;

    
      
        
        

      

      
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    (c) in
      the
      absence of such application, consent or acquiesce in, permit or suffer to exist
      the appointment of a trustee, receiver, sequestrator or other custodian for
      the
      Company or for any part of its property, and such trustee, receiver,
      sequestrator or other custodian shall not be discharged within thirty (30)
      days;

    

    (d) permit
      or
      suffer to exist the commencement of any bankruptcy, reorganization, debt
      arrangement or other case or proceeding under any bankruptcy or insolvency
      law,
      or any dissolution, winding up or liquidation proceeding, in respect of the
      Company, and, if such case or proceeding is not commenced by the Company or
      converted to a voluntary case, such case or proceeding shall be consented to
      or
      acquiesced in by the Company or shall result in the entry of an order for relief
      or shall remain for sixty (60) days undismissed; or

    

    (e) take
      any
      corporate action authorizing, or in furtherance of, any of the
      foregoing;

    

    (v) Cross-Default.
      The
      Company shall default in the payment when due (including any applicable grace
      period) of any amount payable under any other obligation of the Company for
      money borrowed in excess of $50,000, or of its non-payment under such
      obligations, which default shall continue uncured for three (3) business days;
      

    

    (vi) Cross-Acceleration.
      Any
      indebtedness for borrowed money of the Company or any subsidiary in an aggregate
      principal amount exceeding $50,000 (1) shall be duly declared to be or
      shall become due and payable prior to the stated maturity thereof or
      (2) shall not be paid as and when the same becomes due and payable
      including any applicable grace period;

    

    (vii) Judgments.
      A
      judgment which, with other such outstanding judgments against the Company and
      its subsidiaries (in each case to the extent not covered by insurance), exceeds
      an aggregate of $50,000, shall be rendered against the Company or any subsidiary
      and, within twenty (20) days after entry thereof, such judgment shall not have
      been vacated, discharged or otherwise satisfied or execution thereof stayed
      pending appeal, or, within thirty (30) days after the expiration of any such
      stay, such judgment shall not have been discharged or otherwise satisfied;
      and

    

    (viii) Transaction
      Documents.
      The
      Company shall violate any material representation, warranty, covenant, agreement
      or obligation set forth in the SPA, the Security Documents, the Registration
      Rights Agreement dated as of the date hereof among the Company and the Payee
      (the “Registration
      Rights Agreement”),
      and/or
      the Investment Warrant and such default is continuing for five (5)
      days;

    

    (ix) Security
      Agreement.
      If an
      event of default shall occur for any reason under the Security Agreement;
      and

    

    (x) Security
      Documents.
      If any
      Security Document shall cease to be in full force and effect, or shall cease
      to
      give the holder of this Note and the other holders of Notes the liens, rights,
      powers and privileges purported to be created thereby (including, without
      limitation, in all cases,
      a
      first priority perfected security interest in, and lien on, all of the
      Collateral (as defined in the Security Agreement) subject thereto), superior
      to
      and prior to the rights of all third persons and subject to no other liens
      (except to the extent expressly permitted herein or in the Security Agreement),
      which default shall continue uncured for two (2) business
      days.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    B. Action
      if Bankruptcy.
      If any
      Event of Default described in clauses (iv)(1) through (e) of Section 5A
      shall
      occur, the outstanding Principal Amount of this Note and all other obligations
      hereunder shall automatically be and become immediately due and payable, without
      notice or demand.

    

    C. Action
      if Other Event of Default.
      If any
      Event of Default (other than any Event of Default described in clauses (iv)(a)
      through (e) of Section 5A) shall occur for any reason, whether voluntary or
      involuntary, and be continuing, the Holders may, upon notice to the Company,
      declare all or any portion of the outstanding Principal Amount of the Notes
      together with interest accrued thereon to be due and payable and any or all
      other obligations hereunder to be due and payable, whereupon the full unpaid
      Principal Amount (or any portion thereof so demanded), such accrued interest
      and
      any and all other such obligations which shall be so declared due and payable
      shall be and become immediately due and payable, without further notice, demand,
      or presentment.

    

    D. Remedies.
      In case
      any Event of Default shall occur and be continuing, the Payee may proceed to
      protect and enforce its rights by a proceeding seeking the specific performance
      of any covenant or agreement contained in this Note or in aid of the exercise
      of
      any power granted in this Note or may proceed to enforce the payment of this
      Note or to enforce any other legal or equitable rights as such holder shall
      determine.

    

    6. Conversions.
      

    

    A. [Intentionally
      removed].

    

    B. Optional
      Conversion.
      Notwithstanding anything to the contrary contained in Section 6 hereof or
      elsewhere, the Holder, at its sole option, shall have the right to convert
      from
      time to time, any and/or all of the Principal Amount and all accrued, but unpaid
      Interest on this Note into shares of Common Stock (the “Conversion
      Shares”),
      at
      the Conversion Price (the “Optional
      Conversion Right”)
      by
      submitting a written notice (the “Optional
      Conversion Election Form”),
      in
      the form of Exhibit
      A
      annexed
      hereto, electing to exercise its optional conversion rights (the “Optional
      Conversion”).
      

     

    C. Conversion
      Price.
      The
      number of Conversion Shares to be issued upon conversion of the Principal Amount
      and/or Interest shall be determined by dividing the Conversion Amount (as
      defined below) by the applicable Conversion Price (as defined in below). The
      term “Conversion
      Amount”
means,
      with respect to any conversion of this Note, the sum of (i) the Principal
      Amount, and (ii) accrued but unpaid Interest through the date of conversion
      that
      the holder is electing to so convert. The “Conversion
      Price”
shall
      be (subject to anti-dilution adjustments as provided in this Note) the lesser
      of
      (i) $0.50; and (ii) fifty (50%) percent of the effective per share sale price
      of
      the Common Stock (or, alternatively, the conversion price and/or exercise price
      if Common Stock is not sold
      directly) in any Private Offering (as defined in the Registration Rights
      Agreement (as defined in the SPA)); provided,
      however,
      that
      the Conversion Price shall not be less than $0.25 per share (subject to the
      anti-dilution adjustments provided in this Note). 

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    D. Conversion
      Mechanics.

    

    (i) Surrender
      of Note Upon Conversion.
      Notwithstanding
      anything to the contrary set forth herein, upon the exercise of Holders Optional
      Conversion Right in accordance with the terms of Section
      6
      of this
      Note, the Holder shall be required to physically surrender this Note (or any
      affidavit of lost Note) to the Company in order to receive the Conversion Shares
      due upon conversion of this Note by the Company. In the event of the partial
      conversion of the Optional Conversion Right, the Company agrees to provide
      Holder a new Note, which shall total the then remaining amount of indebtedness
      owed.

     

    (ii) Delivery
      of Common Stock Upon Conversion. Upon
      receipt by the Company of this Note (or any affidavit of lost Note) and provided
      the Holder has converted any portion of this Note in accordance with the
      requirements of Section
      6
      of this
      Note, the Company shall issue and deliver or cause to be issued and delivered
      to
      or upon the order of the Holder certificates for the Conversion Shares no later
      than two (2) business days after such receipt (the “Deadline”).
      

     

    E. Concerning
      the Shares.
      Conversion Shares may not be sold or transferred unless (i) such shares are
      sold
      pursuant to an effective registration statement under the Act or (ii) the
      Company or its transfer agent shall have been furnished with an opinion of
      counsel (which opinion shall be in form, substance and scope customary for
      opinions of counsel in comparable transactions) to the effect that the shares
      to
      be sold or transferred may be sold or transferred pursuant to an exemption
      from
      such registration or (iii) such shares are sold or transferred pursuant to
      Rule 144 under the Act (or a successor rule) (“Rule
      144”)
      or
      (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of
      the Holder who agrees to sell or otherwise transfer the shares only in
      accordance with this Note and who is an accredited investor. Except as otherwise
      provided in the SPA, until such time as the Conversion Shares have been
      registered under the Act as contemplated by the Registration Rights Agreement
      or
      otherwise may be sold pursuant to Rule 144 without any restriction as to the
      number of securities as of a particular date that can then be immediately sold,
      each certificate for Conversion Shares that has not been so included in an
      effective registration statement or that has not been sold pursuant to an
      effective registration statement or an exemption that permits removal of the
      legend, shall bear a legend substantially in the following form, as
      appropriate:

    

    “THESE
      SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
      OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”),
      AND,
      ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
      EXEMPTION FROM, OR IN A TRANSACTION
      NOT SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
      ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION
      OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
      REASONABLY ACCEPTABLE TO THE COMPANY.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    The
      legend set forth above shall be removed and the Company shall issue to the
      Holder a new certificate therefor free of any transfer legend if (i) the Company
      or its transfer agent shall have received an opinion of counsel, in form,
      substance and scope customary for opinions of counsel in comparable
      transactions, to the effect that a public sale or transfer of such Common Stock
      may be made without registration under the Securities Act and the shares are
      so
      sold or transferred, (ii) such Holder provides the Company or its transfer
      agent
      with reasonable assurances that the Conversion Shares can be sold pursuant
      to
      Rule 144 or Rule 144(k) or (iii) if the Conversion Shares are registered for
      resale under an effective registration statement filed under the Act. Nothing
      in
      this Note shall limit the Company’s obligation under the Registration Rights
      Agreement. Failure to delivery certificates with the legend for Conversion
      Shares shall result in certain payments to the Holder as set forth in the
      SPA.

     

    F. Status
      as Shareholder. Upon
      submission of this Note by the Holder and the satisfaction of the Conversion
      Conditions by the Holder, (i) the shares covered thereby shall be deemed
      Conversion Shares and (ii) the Holder’s rights as a Holder of this Note shall
      cease and terminate, excepting only the right to receive certificates for the
      Conversion Shares and to any remedies provided herein or otherwise available
      at
      law or in equity to such Holder because of a failure by the Company to comply
      with the terms of this Note. Notwithstanding the foregoing, if a Holder has
      not
      received certificates for all Conversion Shares prior to the second
      (2nd)
      business day after the expiration of the Deadline with respect to any reason,
      then (unless the Holder otherwise elects to retain its status as a holder of
      Common Stock by so notifying the Company) the Holder shall regain the rights
      of
      a Holder of this Note and the Company shall, as soon as practicable, return
      such
      unconverted Note to the Holder or, if the Note has not been surrendered, adjust
      its records to reflect that such portion of this Note has not been converted.
      In
      all cases, the Holder shall retain all of its rights and remedies for the
      Company’s failure to convert this Note.

     

    7. Anti-Dilution
      Provisions.
      The
      Conversion Price in effect at any time and the number and kind of securities
      issuable upon conversion of this Note shall be subject to adjustment from time
      to time upon the happening of certain events as follows:

     

    A. Adjustment
      for Stock Splits and Combinations.
      If the
      Company at any time or from time to time on or after the date of the issuance
      of
      this Note (the “Original
      Issuance Date”)
      effects a subdivision of the outstanding Common Stock, the Conversion Price
      then
      in effect immediately before that subdivision shall be proportionately
      decreased, and conversely, if the Company at any time or from time to time
      on or
      after the Original Issuance Date combines the outstanding shares of Common
      Stock
      into a smaller number of shares, the Conversion
      Price
      then in effect immediately before the combination shall be proportionately
      increased. Any adjustment under this Section
      7A shall
      become effective at the close of business on the date the subdivision or
      combination becomes effective.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    B. Adjustment
      for Certain Dividends and Distributions.
      If the
      Company at any time or from time to time on or after the Original Issuance
      Date
      makes or fixes a record date for the determination of holders of Common Stock
      entitled to receive, a dividend or other distribution payable in additional
      shares of Common Stock, then and in each such event the Conversion Price then
      in
      effect shall be decreased as of the time of such issuance or, in the event
      such
      record date is fixed, as of the close of business on such record date, by
      multiplying the Conversion Price then in effect by a fraction (1) the numerator
      of which is 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 (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;
provided,
      however,
      that if
      such record date is 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 recomputed accordingly as of the close of business on such record
      date
      and thereafter the Conversion Price shall be adjusted pursuant to this
Section 7B
      as of
      the time of actual payment of such dividends or distributions.

     

    C. Adjustments
      for Other Dividends and Distributions.
      In the
      event the Company at any time or from time to time on or after the Original
      Issuance Date makes, or fixes a record date for the determination of holders
      of
      Common Stock entitled to receive, a dividend or other distribution payable
      in
      securities of the Company other than shares of Common Stock, then and in each
      such event provision shall be made so that the Holders of Notes shall receive
      upon conversion thereof, in addition to the number of shares of Common Stock
      receivable thereupon, the amount of securities of the Company which they would
      have received had their Notes been converted into Common Stock on the date
      of
      such event and had they thereafter, during the period from the date of such
      event to and including the conversion date, retained such securities receivable
      by them as aforesaid during such period, subject to all other adjustments called
      for during such period under this Section
      7
      with
      respect to the rights of the Holders of the Notes. 

     

    D. Adjustment
      for Reclassification, Exchange and Substitution.
      In the
      event that at any time or from time to time on or after the Original Issuance
      Date, the Common Stock issuable upon the conversion of the Notes is changed
      into
      the same or a different number of shares of any class or classes of stock,
      whether by recapitalization, reclassification or otherwise (other than a
      subdivision or combination of shares or stock dividend or a reorganization,
      merger, consolidation or sale of assets, provided for elsewhere in this
Section
      7),
      then
      and in any such event each Holder of Notes shall have the right thereafter
      to
      convert such Notes to receive the kind and amount of stock and other securities
      and property receivable upon such recapitalization, reclassification or other
      change, by holders of the maximum number of shares of Common Stock for which
      such Notes could have been converted immediately prior to such recapitalization,
      reclassification or change, all subject to further adjustment as provided
      herein.

     

    E. Sale
      of Shares Below Conversion Price:

     

    (i) If
      at any
      time or from time to time following the Original Issuance Date, the Company
      issues or sells, or is deemed by the express provisions of this Section
      7E
      to have
      issued or sold, Additional Shares of Common Stock (as hereinafter defined),
      other than as a dividend or
      other
      distribution on any class of stock and other than upon a subdivision or
      combination of shares of Common Stock, in either case as provided in
Section
      7A
      or
      Section 7C
      above,
      for an Effective Price (as hereinafter defined) less than the then existing
      Conversion Price, then and in each such case the then existing Conversion Price
      shall be reduced, as of the opening of business on the date of such issue or
      sale, to a price equal to the Effective Price for such Additional Shares of
      Common Stock.  

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (ii) For
      the
      purpose of making any adjustment required under Section 7E,
      the
      consideration received by the Company for any issue or sale of securities shall
      (I) to the extent it consists of cash be computed at the amount of cash
      received by the Company, (II) to the extent it consists of property other
      than cash, be computed at the fair value of that property as determined in
      good
      faith by the board of directors of the Company (the “Board”),
      (III) if Additional Shares of Common Stock, Convertible Securities (as
      hereinafter defined) or rights or options to purchase either Additional Shares
      of Common Stock or Convertible Securities are issued or sold together with
      other
      stock or securities or other assets of the Company for a consideration which
      covers both, be computed as the portion of the consideration so received that
      may be reasonably determined in good faith by the Board to be allocable to
      such
      Additional Shares of Common Stock, Convertible Securities or rights or options,
      and (IV) be computed after reduction for all expenses payable by the
      Company in connection with such issue or sale.

     

    (iii) For
      the
      purpose of the adjustment required under Section 7E,
      if the
      Company issues or sells any rights, warrants or options for the purchase of,
      or
      stock or other securities convertible into or exchangeable for, Additional
      Shares of Common Stock (such convertible or exchangeable stock or securities
      being hereinafter referred to as “Convertible
      Securities”)
      and if
      the Effective Price of such Additional Shares of Common Stock is less than
      the
      Conversion Price then in effect, then in each case the Company shall be deemed
      to have issued at the time of the issuance of such rights, warrants, options
      or
      Convertible Securities the maximum number of Additional Shares of Common Stock
      issuable upon exercise, conversion or exchange thereof and to have received
      as
      consideration for the issuance of such shares an amount equal to the total
      amount of the consideration, if any, received by the Company for the issuance
      of
      such rights, warrants, options or Convertible Securities, plus, in the case
      of
      such rights, warrants or options, the minimum amounts of consideration, if
      any,
      payable to the Company upon the exercise of such rights, warrants or options,
      plus, in the case of Convertible Securities, the minimum amounts of
      consideration, if any, payable to the Company (other than by cancellation of
      liabilities or obligations evidenced by such Convertible Securities) upon the
      conversion or exchange thereof. No further adjustment of the Conversion Price,
      adjusted upon the issuance of such rights, warrants, options or Convertible
      Securities, shall be made as a result of the actual issuance of Additional
      Shares of Common Stock on the exercise of any such rights, warrants or options
      or the conversion or exchange of any such Convertible Securities. If any such
      rights or options or the conversion or exchange privilege represented by any
      such Convertible Securities shall expire without having been exercised, the
      Conversion Price adjusted upon the issuance of such rights, warrants, options
      or
      Convertible Securities shall be readjusted to the Conversion Price which would
      have been in effect had an adjustment been made on the basis that the only
      Additional Shares of Common Stock so issued were the Additional Shares of Common
      Stock, if any, actually issued or sold on the exercise of such rights, warrants,
      or options or rights of conversion or exchange of such Convertible Securities,
      and such Additional Shares of Common Stock, if any, were issued or sold for
      the
      consideration actually received
      by the Company upon such exercise, plus the consideration, if any, actually
      received by the Company for the granting of all such rights, warrants, or
      options, whether or not exercised, plus the consideration received for issuing
      or selling the Convertible Securities actually converted or exchanged, plus
      the
      consideration, if any, actually received by the Company (other than by
      cancellation of liabilities or obligations evidenced by such Convertible
      Securities) on the conversion or exchange of such Convertible
      Securities.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (iv) For
      the
      purpose of the adjustment required under Section 7E,
      if the
      Company issues or sells, or is deemed by the express provisions of this
Section 7 to
      have issued or sold, any rights or options for the purchase of Convertible
      Securities and if the Effective Price of the Additional Shares of Common Stock
      underlying such Convertible Securities is less than the Conversion Price then
      in
      effect, then in each such case the Company shall be deemed to have issued at
      the
      time of the issuance of such rights or options the maximum number of Additional
      Shares of Common Stock issuable upon conversion or exchange of the total amount
      of Convertible Securities covered by such rights or options and to have received
      as consideration for the issuance of such Additional Shares of Common Stock
      an
      amount equal to the amount of consideration, if any, received by the Company
      for
      the issuance of such rights, warrants or options, plus the minimum amounts
      of
      consideration, if any, payable to the Company upon the exercise of such rights,
      warrants or options, plus the minimum amount of consideration, if any, payable
      to the Company (other than by cancellation of liabilities or obligations
      evidenced by such Convertible Securities) upon the conversion or exchange of
      such Convertible Securities. No further adjustment of the Conversion Price,
      adjusted upon the issuance of such rights, warrants or options, shall be made
      as
      a result of the actual issuance of the Convertible Securities upon the exercise
      of such rights, warrants or options or upon the actual issuance of Additional
      Shares of Common Stock upon the conversion or exchange of such Convertible
      Securities. The provisions of paragraph (iii) above for the readjustment of
      the Conversion Price upon the expiration of rights, warrants or options or
      the
      rights of conversion or exchange of Convertible Securities shall apply
mutatis mutandis
      to the
      rights, warrants options and Convertible Securities referred to in this
      paragraph (iv).

     

    (v) “Additional
      Shares of Common Stock”
shall
      mean all shares of Common Stock (or any debt or equity securities convertible
      or
      exercisable into Common Stock) issued by the Company on or after the Original
      Issuance Date, whether or not subsequently reacquired or retired by the Company,
      other than (I) the Conversion Shares and the shares of Common Stock
      issuable upon exercise of the Warrants (the “Underlying
      Shares”),
      (II) shares of Common Stock issuable upon exercise of warrants, options and
      convertible securities outstanding as of the Original Issuance Date (provided
      that the terms of such warrants, options and convertible securities are not
      modified after the Original Issuance Date to adjust the exercise price),
      (III) shares of Common Stock issued pursuant to any event for which
      adjustment is made to the Conversion Price under Section 7
      hereof
      or to the exercise price under the anti-dilution provisions of any securities
      outstanding as of the Original Issuance Date (including the Investment
      Warrants), and (IV) 25,000 shares of common stock which the Company has
      previously agreed to issue to its legal counsel, David M. Loev (as disclosed
      in
      its SEC filings, which shares have not been issued to date). The “Effective
      Price”
of
      Additional Shares of Common Stock shall mean the quotient determined by dividing
      the total number of Additional Shares of Common Stock issued or sold, or deemed
      to have been issued or sold by the Company under this Section 7E,
      into
      the aggregate consideration received, or deemed to have
      been
      received, by the Company for such issue under this Section 7E,
      for
      such Additional Shares of Common Stock.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (vi) Other
      than a reduction pursuant to its applicable anti-dilution provisions, any
      reduction in the conversion price of any Convertible Security, whether
      outstanding on the Original Issuance Date or thereafter, or the price of any
      option, warrant or right to purchase Common Stock or any Convertible Security
      (whether such option, warrant or right is outstanding on the Original Issuance
      Date or thereafter), to an Effective Price less than the current Conversion
      Price, shall be deemed to be an issuance of such Convertible Security and all
      such options, warrants or rights at such Effective Price, and the provisions
      of
Section 7E
      (iii),
      (iv)
      and
(v)
      shall
      apply thereto mutatis mutandis.

     

    (vii) Any
      time
      an adjustment is made to the Conversion Price pursuant to Section 7E,
      a
      corresponding proportionate change shall be made to the number of shares of
      Common Stock issuable upon conversion of this Note.

     

    F. No
      Adjustments in Certain Circumstances.
      No
      adjustment in the Conversion Price shall be required unless such adjustment
      would require an increase or decrease of at least one ($0.01) cent in such
      price; provided,
      however,
      that
      any adjustments which by reason of this Section 7F
      are not
      required to be made shall be carried forward and taken into account in any
      subsequent adjustment required to be made hereunder. All calculations under
      this
Section 7F
      shall be
      made to the nearest cent or to the nearest one-hundredth of a share, as the
      case
      may be.

     

    8. Amendments.
      This
      Note may not be modified or amended in any manner except in writing executed
      by
      the Company and all Holders of the Notes.

    

    B. No
      failure or delay on the part of the Payee in exercising any power or right
      under
      this Note shall operate as a waiver thereof, nor shall any single or partial
      exercise of any such power or right preclude any other or further exercise
      thereof or the exercise of any other power or right. No notice to or demand
      on
      the Company in any case shall entitle it to any notice or demand in similar
      or
      other circumstances. No waiver or approval by the Payee shall, except as may
      be
      otherwise stated in such waiver or approval, be applicable to subsequent
      transactions. No waiver or approval hereunder shall require any similar or
      dissimilar waiver or approval thereafter to be granted hereunder.

    

    C. To
      the
      extent that the Company makes a payment or payments to the Payee, and such
      payment or payments or any part thereof are subsequently for any reason
      invalidated, set aside and/or required to be repaid to a trustee, receiver
      or
      any other party under any bankruptcy law, state or federal law, common law
      or
      equitable cause, then to the extent of such recovery, the obligation or part
      thereof originally intended to be satisfied, and all rights and remedies
      therefor, shall be revived and continued in full force and effect as if such
      payment had not been made or such enforcement or setoff had not
      occurred.

    

    D. After
      any
      waiver, amendment or supplement under this section becomes effective, the
      Company shall mail to the holders of the Notes a copy thereof.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    9. Ownership
      Cap and Certain Conversion Restriction.
      Notwithstanding
      anything to the contrary set forth in Section 9 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) of the Exchange Act
      and
      the rules thereunder) more than 9.9% 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 (the "Waiver Notice") that the Holder would like
      to
      waive this Section 9 with regard to any or all shares of Common Stock issuable
      upon conversion of this Note, this Section 9 will be of no force or effect
      with
      regard to all or a portion of the Note referenced in the Waiver Notice.

     

    10. Miscellaneous.

    

    A. Parties
      in Interest.
      All
      covenants, agreements and undertakings in this Note binding upon the Company
      or
      the Payee shall bind and inure to the benefit of the successors and permitted
      assigns of the Company and the Payee, respectively, whether so expressed or
      not.

    

    B. Governing
      Law.
      This
      Note shall be governed by and construed exclusively in accordance with the
      laws
      of the State of New York without regard to the conflicts of laws principles
      thereof. The parties hereto hereby agree that any suit or proceeding arising
      directly and/or indirectly pursuant to or under this instrument or the
      consummation of the transactions contemplated hereby, shall be brought solely
      in
      a federal or state court located in the City, County and State of New York.
      By
      its execution hereof, the parties hereby covenant and irrevocably submit to
      the
in personam
      jurisdiction of the federal and state courts located in the City, County and
      State of New York and agrees that any process in any such action may be served
      upon any of them personally, or by certified mail or registered mail upon them
      or their agent, return receipt requested, with the same full force and effect
      as
      if personally served upon them in New York City. The parties hereto waive any
      claim that any such jurisdiction is not a convenient forum for any such suit
      or
      proceeding and any defense or lack of in personam
      jurisdiction with respect thereto. In the event of any such action or
      proceeding, the party prevailing therein shall be entitled to payment from
      the
      other party hereto of its reasonable and documented counsel fees and
      disbursements in an amount judicially determined.

    

    C. Notices.
      All
      notices and other communications from the Company to the Holder of this Note
      shall be mailed by first class, registered or certified mail, postage prepaid,
      and/or a nationally recognized overnight courier service to the address
      furnished to the Company in writing by the Holder.

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    D. Notice
      of Certain Transactions.
      In case
      at any time:

    

    (i) The
      Company shall declare any dividend upon, or other distribution in respect of,
      its Common Stock; or

    

    (ii) The
      Company shall offer for subscription to the holders of its Common Stock any
      additional shares of stock of any class or any other securities convertible
      into
      shares of stock or any rights to subscribe thereto; or

    

    (iii) There
      shall be any capital reorganization or reclassification of the capital stock
      of
      the Company, or a sale of all or substantially all of the assets of the Company,
      or a consolidation or merger of the Company with another corporation (other
      than
      a merger with a subsidiary in which merger the Company is the continuing
      corporation and which does not result in any reclassification); or

    

    (iv) There
      shall be a voluntary or involuntary dissolution; liquidation or winding-up
      of
      the Company;

    

    then,
      in
      any one or more of said cases, the Company shall cause to be mailed to the
      Payee
      at the earliest practicable time (and, in any event not less than twenty (20)
      days before any record date or other date set for definitive action), written
      notice of the date on which the books of the Company shall close or a record
      shall be taken for such dividend, distribution or subscription rights or such
      reorganization, reclassification, sale, consolidation, merger or dissolution,
      liquidation or winding-up shall take place, as the case may be. Such notice
      shall also set forth such facts as shall indicate the effect of such action
      (to
      the extent such effect may be known at the date of such notice) on the
      Conversion Price and the kind and amount of the shares of stock and other
      securities and property deliverable upon the conversion of this Note. Such
      notice shall also specify the date as of which the holders of the Common Stock
      of record shall participate in said dividend, distribution or subscription
      rights or shall be entitled to exchange their Common Stock for securities or
      other property deliverable upon such reorganization, reclassification, sale,
      consolidation, merger or dissolution, liquidation or winding-up, as the case
      may
      be.

    

    Nothing
      herein shall be construed as the consent of the holder of this Note to any
      action otherwise prohibited by the terms of this Note or as a waiver of any
      such
      prohibition.

    

    E. Reservation
      of Shares.
      The
      Company covenants and agrees that it will at all times have authorized and
      reserved, solely for the purpose of such possible conversion, out of its
      authorized but unissued shares, a sufficient number of shares of its Common
      Stock to provide for the exercise in full of the conversion rights contained
      in
      this Note.

    

    F. Validity
      of Stock.
      All
      shares of Common Stock which may be issued upon conversion of this Note will,
      upon issuance by the Company in accordance with the terms of this Note, be
      validly issued, free from all taxes and liens with respect to the issuance
      thereof (other than those created by the holders), free from all pre-emptive
      or
      similar rights and fully paid and non-assessable. 

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    G. Cash
      Payments.
      No
      fractional shares (or scrip representing fractional shares) of Common Stock
      shall be issued upon conversion of this Note. In the event that the conversion
      of this Note would result in the issuance of a fractional share of Common Stock,
      the Company shall pay a cash adjustment in lieu of such fractional share to
      the
      holder of this Note based upon the Conversion Price. 

    

    H. Stamp
      Taxes, etc.
      The
      Company shall pay all documentary, stamp or other transactional taxes
      attributable to the issuance or delivery of shares of Common Stock, upon
      conversion of this Note; provided,
      however,
      that
      the Company shall not be required to pay any taxes which may be payable in
      respect of any transfer involved in the issuance or delivery of any certificate
      for such shares in a name other than that of the holder of this Note, and the
      Company shall not be required to issue or deliver any such certificate unless
      and until the person requesting the issuance thereof shall have paid to the
      Company the amount of such tax or shall have established to the Company’s
      satisfaction that such tax has been paid.

    

    I. Waiver
      of Jury Trial.
      THE
      PAYEE AND THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
      ANY
      RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
      HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS NOTE OR ANY OTHER
      DOCUMENT OR INSTRUMENT EXECUTED AND DELIVERED IN CONNECTION HEREWITH, OR ANY
      COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN),
      OR
      ACTIONS OF THE PAYEE OR THE COMPANY. THIS PROVISION IS A MATERIAL INDUCEMENT
      FOR
      THE PAYEE’S PURCHASING THIS NOTE.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      this
      Note has been executed and delivered on the date specified above by the duly
      authorized representative of the Company.

     

    

    

    
      	 	
              XA,
                INC.

            
	 	 
	 	 
	 	 
	 	
              By:
                /s/ Joseph Wagner

            
	 	
              Name:
                Joseph Wagner

            
	 	
              Title:
                President & CEO

            

    

    

    

    

    

    

    

    

    

    
 

    

    

    $200,000

    

    

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

    

    EXHIBIT
      A

    
 

    Optional
      Conversion Election Form

    

    

    ____________,
      200_

    

    XA,
      Inc.

    875
      North
      Michigan Avenue, Suite 2626

    Chicago,
      IL 60611

    

    Re: Optional
      Conversion of Promissory Note

    Gentlemen:

    You
      are
      hereby notified that, pursuant to, and upon the terms and conditions of that
      certain Senior Secured Convertible Promissory Note of XA, Inc. (the
“Company”),
      in
      the principal amount of $_______________ (the “Note”),
      held
      by me, I hereby elect to exercise my right of Optional Conversion (as such
      term
      in defined in the Note), effective as of the date of this writing.

    

    Please
      provide me with all applicable instructions for the Optional Conversion of
      the
      Note, and issue certificate(s) for the applicable shares of the Company’s Common
      Stock issuable upon the Optional Conversion, in the name of the person provided
      below.

    

    

    
      	 	
              Very
                truly yours,

            
	 	 
	 	 
	 	
              ___________________________

            
	 	
              Name:

            

    

    

    

    Please
      issue certificate(s) for Common Stock as follows:

    

    ______________________________________________
      

    Name

    

    ______________________________________________
      

    Address

    

    ______________________________________________
      

    Social
      Security No. of Shareholder

     

     

     

     

     

    
      
        
        

      

      
        21Warrant with Vision Opportunity Master Fund, Ltd. ($0.30 initial exercise price)
      (June 29, 2007)

    Exhibit
      10.16

    
 

    THIS
      WARRANT AND ANY SHARES OF COMMON STOCK ISSUED UPON EXERCISE HEREOF HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED
      FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
      DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE AFFECTED WITHOUT AN
      EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL THAT
      SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED.

     

    

     

    XA,
      INC.

     

    WARRANT
      TO PURCHASE

     

    200,000
      SHARES

     

    OF
      COMMON STOCK

     

    (SUBJECT
      TO ADJUSTMENT)

     

    (Void
      after June 29, 2012)

     

     

     

    
      	
              Bridge
                Warrant No: 8

               

            	
              June
                29, 2007

               

            

    

    

     

    This
      certifies that for value, Vision Opportunity Master Fund, Ltd., or registered
      assigns (the ”Holder”),
      is
      entitled, subject to the terms set forth below, at any time from and after
      June
      29, 2007 (the “Original Issuance
      Date”)
      and
      before 5:00 p.m., Eastern Time, on June 29, 2012 (the “Expiration
      Date”),
      to
      purchase from XA,
      Inc.,
      a
      Nevada corporation (the “Company”),
      Two
      Hundred Thousand
      (200,000) shares
      (subject to adjustment as described herein), of common stock, par value $0.001
      per share, of the Company (the “Common
      Stock”),
      upon
      surrender hereof, at the principal office of the Company referred to below,
      with
      a duly executed subscription form in the form attached hereto as Exhibit A
      and
      simultaneous payment therefor in lawful, immediately available money of the
      United States or otherwise as hereinafter provided, at an initial exercise
      price
      per share of $0.30 (the “Purchase
      Price”).
      The
      Purchase Price is subject to further adjustment as provided in Section
      4
      below.
      The term “Common
      Stock”
shall
      include, unless the context otherwise requires, the stock and other securities
      and property at the time receivable upon the exercise of this Warrant. The
      term
“Warrant,”
as
      used herein, shall mean this Warrant and any other Warrants delivered in
      substitution or exchange therefor as provided herein. 

    

    This
      Warrant is being issued by the Company together with an 11% Senior Secured
      Convertible Promissory Note in the amount of $200,000 (the “Note”)
      pursuant to the terms and conditions set forth in the Securities Purchase
      Agreement dated the date hereof by and between the Holder and the Company (the
      “SPA”),
      in
      connection with the sale by the Company of $500,000 aggregate principal amount
      of Notes (the “Follow
      On Notes”).
      

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    1. Exercise.
      This
      Warrant may be exercised at any time or from time to time from and after the
      Original Issuance Date and before 5:00 p.m., Eastern Time, on June 29,
      2012, unless such Warrant is terminated pursuant to Section
      6,
      below,
      on any business day, for the full number of shares of Common Stock called for
      hereby, by surrendering it at the principal office of the Company, at 875 North
      Michigan Avenue, Suite 2626, Chicago, IL 60611, with the subscription form
      duly
      executed, together with payment in an amount equal to (a) the number of
      shares of Common Stock called for on the face of this Warrant, multiplied
      (b) by the Purchase Price. Payment of the Purchase Price may be made at
      Holder’s choosing either: (1) by payment in immediately available funds; or (2)
      in lieu of any cash payment, if this Warrant is exercised on a date when a
      Registration Statement (as defined in the Registration Rights Agreement),
      covering the resale of the shares of Common Stock issuable upon exercise of
      this
      Warrant has not been declared effective by the Securities and Exchange
      Commission (the “Commission”),
      or is
      no longer in effect, and the Fair Market Value (as defined below) is equal
      to or
      greater than the Purchase Price, in exchange for the number of shares of Common
      Stock equal to the product of (x) the number of shares to which the Warrants
      are
      being exercised multiplied by (y) a fraction, the numerator of which is the
      Purchase Price and the denominator of which is the Fair Market Value (as defined
      below). This Warrant may be exercised for less than the full number of shares
      of
      Common Stock at the time called for hereby, except that the number of shares
      receivable upon the exercise of this Warrant as a whole, and the sum payable
      upon the exercise of this Warrant as a whole, shall be proportionately reduced.
      Upon a partial exercise of this Warrant in accordance with the terms hereof,
      this Warrant shall be surrendered, and a new Warrant of the same tenor and
      for
      the purchase of the number of such shares not purchased upon such exercise
      shall
      be issued by the Company to Holder without any charge therefor. A Warrant shall
      be deemed to have been exercised immediately prior to the close of business
      on
      the date of its surrender for exercise as provided above, and the person
      entitled to receive the shares of Common Stock issuable upon such exercise
      shall
      be treated for all purposes as the holder of such shares of record as of the
      close of business on such date. Within two (2) business days after such date,
      the Company shall issue and deliver to the person or persons entitled to receive
      the same a certificate or certificates for the number of full shares of Common
      Stock issuable upon such exercise, together with cash, in lieu of any fraction
      of a share, equal to such fraction of the then Fair Market Value on the date
      of
      exercise of one full share of Common Stock.  

     

    “Fair
      Market Value”
shall
      mean, as of any date: (i) if shares of the Common Stock are listed on a
      national securities exchange, the average of the closing prices as reported
      for
      composite transactions during the ten (10) consecutive trading days preceding
      the trading day immediately prior to such date or, if no sale occurred on a
      trading day, then the mean between the closing bid and asked prices on such
      exchange on such trading day; (ii) if shares of the Common Stock are not so
      listed but are traded on the NASDAQ National Market (“NNM”),
      the
      average of the closing prices as reported on the NNM during the ten (10)
      consecutive trading days preceding the trading day immediately prior to such
      date or, if no sale occurred on a trading day, then the mean between the highest
      bid and lowest asked prices as of the close of business on such trading day,
      as
      reported on the NNM; or if applicable, the Nasdaq Capital Market (“NCM”),
      (iii)
      if not then included for quotation on the NNM or the NCM, the average of the
      highest reported bid and lowest reported asked prices as reported by the OTC
      Bulletin Board of the National Quotation Bureau, as the case may be; or
      (iv) if the shares of the Common Stock are not then publicly traded, the
      fair market price of the Common Stock as determined in good faith by
      the
      independent members of the Board of Directors of the Company and the Holders
      of
      all Warrants.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2. Shares
      Fully Paid; Payment of Taxes.
      All
      shares of Common Stock issued upon the exercise of this Warrant shall be validly
      issued, fully paid and non-assessable, and the Company shall pay all taxes
      and
      other governmental charges (other than income taxes to the holder) that may
      be
      imposed in respect of the issue or delivery thereof.

     

    3. Transfer
      and Exchange.
      (a)
      Neither this Warrant nor the Common Stock to be issued upon exercise hereof
      (the
“Warrant
      Shares”)
      have
      been registered under the Act or any state securities laws (“Blue
      Sky Laws”).
      This
      Warrant has been acquired for investment purposes and not with a view to
      distribution or resale and may not be sold or otherwise transferred without:
      (i)
      an effective registration statement for such Warrant under the Act and such
      applicable Blue Sky Laws; or (ii) an opinion of counsel reasonably satisfactory
      to the Company that registration is not required under the Act or under any
      applicable Blue Sky Laws. 

     

    (b) Upon
      compliance with applicable federal and state securities laws as set forth in
      Section
      3(a),
      above,
      this Warrant and all rights hereunder are transferable, in whole or in part,
      on
      the books of the Company maintained for such purpose at its Principal Office
      by
      the Holder in person or by duly authorized attorney, upon surrender of this
      Warrant together with a completed and executed assignment form in the form
      attached hereto as Exhibit B,
      and
      payment of any necessary transfer tax or other governmental charge imposed
      upon
      such transfer. Upon any partial transfer, the Company will issue and deliver
      to
      the assignee a new Warrant with respect to the shares of Common Stock for which
      it is exercisable that have been transferred, and will deliver to the Holder
      a
      new Warrant or Warrants with respect to the shares of Common Stock not so
      transferred. A Warrant may be transferred only by the procedure set forth
      herein. No transfer shall be effective until such transfer is recorded on the
      books of the Company, provided that such transfer is recorded promptly by the
      Company, and until such transfer on such books, the Company shall treat the
      registered Holder hereof as the owner of the Warrant for all
      purposes.

     

    (c) This
      Warrant is exchangeable at the Principal Office for two or more new Warrants,
      each in the form of this Warrant, to purchase the same aggregate number of
      shares of Common Stock, each new Warrant to represent the right to purchase
      such
      number of shares as the Holder shall designate at the time of such exchange,
      but
      which shall not exceed the total number of shares for which this Warrant may
      be
      from time to time exercisable.

     

    (d) Transfer
      of the Warrant Shares issued upon the exercise of this Warrant shall be
      restricted in the same manner and to the same extent as the Warrant, and the
      certificates representing such Warrant Shares shall bear substantially the
      following legend, until such Warrant Shares have been registered under the
      Act
      or may be removed as otherwise permitted under the Act:

     

    “THE
      SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE
      STATE SECURITIES LAW
      AND
      MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE ACT OR
      SUCH
      APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD
      THERETO, OR (ii) IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY,
      REGISTRATION UNDER THE ACT OR SUCH APPLICABLE STATE SECURITIES LAWS IS NOT
      REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER.”

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (e) The
      Holder and the Company agree to execute such other documents and instruments
      as
      counsel to the Company deems necessary to effect the compliance of the issuance
      of this Warrant and any Warrant Shares issued upon exercise hereof with
      applicable federal and state securities laws, including compliance with
      applicable exemptions from the registration requirements of such
      laws.

     

    4. Anti-Dilution
      Provisions.
      The
      Purchase Price in effect at any time and the number and kind of securities
      issuable upon conversion of this Warrant shall be subject to adjustment from
      time to time upon the happening of certain events as follows:

     

    A.  Adjustment
      for Stock Splits and Combinations.
      If the
      Company at any time or from time to time on or after the date of Warrant
      issuance (the “Original
      Issuance Date”)
      effects a subdivision of the outstanding Common Stock, the Purchase Price then
      in effect immediately before that subdivision shall be proportionately
      decreased, and conversely, if the Company at any time or from time to time
      on or
      after the Original Issuance Date combines the outstanding shares of Common
      Stock
      into a smaller number of shares, the Purchase Price then in effect immediately
      before the combination shall be proportionately increased. Any adjustment under
      this Section
      4(A) shall
      become effective at the close of business on the date the subdivision or
      combination becomes effective.

     

    B.  Adjustment
      for Certain Dividends and Distributions.
      If the
      Company at any time or from time to time on or after the Original Issuance
      Date
      makes or fixes a record date for the determination of holders of Common Stock
      entitled to receive, a dividend or other distribution payable in additional
      shares of Common Stock, then and in each such event the Purchase Price then
      in
      effect shall be decreased as of the time of such issuance or, in the event
      such
      record date is fixed, as of the close of business on such record date, by
      multiplying the Purchase Price then in effect by a fraction (1) the numerator
      of
      which is 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 (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;
provided,
      however,
      that if
      such record date is fixed and such dividend is not fully paid or if such
      distribution is not fully made on the date fixed therefor, the Purchase Price
      shall be recomputed accordingly as of the close of business on such record
      date
      and thereafter the Purchase Price shall be adjusted pursuant to this
Section 4(B)
      as of
      the time of actual payment of such dividends or distributions.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    C.  Adjustments
      for Other Dividends and Distributions.
      In the
      event the Company at any time or from time to time on or after the Original
      Issuance Date makes, or fixes a record date for the determination of holders
      of
      Common Stock entitled to receive, a dividend or other distribution payable
      in
      securities of the Company other than shares of Common Stock, then and in each
      such event provision shall be made so that the Holders of Warrants shall receive
      upon exercise thereof, in addition to the number of shares of Common Stock
      receivable thereupon, the amount of securities of the Company which they would
      have received had their Warrants been exercised into Common Stock on the date
      of
      such event and had they thereafter, during the period from the date of such
      event to and including the conversion date, retained such securities receivable
      by them as aforesaid during such period, subject to all other adjustments called
      for during such period under this Section
      4
      with
      respect to the rights of the Holders of the Warrants.

     

    D.  Adjustment
      for Reclassification, Exchange and Substitution.
      In the
      event that at any time or from time to time on or after the Original Issuance
      Date, the Common Stock issuable upon the exercise of the Warrants is changed
      into the same or a different number of shares of any class or classes of stock,
      whether by recapitalization, reclassification or otherwise (other than a
      subdivision or combination of shares or stock dividend or a reorganization,
      merger, consolidation or sale of assets, provided for elsewhere in this
Section 4),
      then
      and in any such event each Holder of Warrants shall have the right thereafter
      to
      exercise such Warrant to receive the kind and amount of stock and other
      securities and property receivable upon such recapitalization, reclassification
      or other change, by holders of the maximum number of shares of Common Stock
      for
      which such Warrants could have been exercised immediately prior to such
      recapitalization, reclassification or change, all subject to further adjustment
      as provided herein.

     

    E. 
      Recapitalization, Reorganization, Reclassification, Consolidation, Merger or
      Sale. 

     

    (i)
      In
      case the Company after the Original Issuance Date shall do any of the following
      (each, a "Triggering
      Event"):
      (a)
      consolidate or merge with or into any other individual or entity (“Person”)and
      the
      Company 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 Company and the Company shall be the continuing or surviving
      Person but, in connection with such consolidation or merger, any common or
      preferred stock (“Capital
      Stock”)
      of the
      Company 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 to the Exercise Price and
      the
      number of shares of Warrant Shares that may be purchased upon exercise of this
      Warrant 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
      Exercise Price as adjusted to take into account 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,
      and the
      Exercise Price shall be adjusted to equal the product of (A) the closing price
      of the common stock of the continuing or surviving corporation as a result
      of
      such Triggering Event as of the date immediately preceding the date of the
      consummation of such Triggering Event multiplied by (B) the quotient of (i)
      the
      Exercise Price divided by (ii) the per share Fair Market Value of the Common
      Stock as of the date immediately preceding the Original Issuance Date;
provided,
      however,
      the
      Holder at its option may elect to receive an amount in cash equal to the lesser
      of (a) the value of this Warrant calculated in accordance with the Black-Scholes
      formula; and (b) $1.00 (subject to adjustment in the event the Company affects
      a
      stock split) per Warrant Share. Immediately upon the occurrence of a Triggering
      Event, the Company shall notify the Holder in writing of such Triggering Event
      and provide the calculations in determining the number of shares of Warrant
      Shares issuable upon exercise of the new warrant and the adjusted Exercise
      Price. Upon the Holder’s request, the continuing or surviving corporation as a
      result of such Triggering Event shall issue to the Holder a new warrant of
      like
      tenor evidencing the right to purchase the adjusted number of shares of Warrant
      Shares and the adjusted Exercise Price pursuant to the terms and provisions
      of
      this Section
      4(E)(i).
      Notwithstanding the foregoing to the contrary, this Section
      4(E)(i)
      shall
      only apply if the surviving entity pursuant to any such Triggering Event is
      a
      company that has a class of equity securities registered
      pursuant to the Securities Exchange Act of 1934, as amended, and its common
      stock is listed or quoted on a national securities exchange, national automated
      quotation system 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 securities exchange, national
      automated quotation system or the OTC Bulletin Board, then the Holder shall
      have
      the right to demand that the Company pay to the Holder an amount in cash equal
      to the value of this Warrant calculated in accordance with the Black-Scholes
      formula.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (ii) In
      the
      event that the Holder has elected not to exercise this Warrant prior to the
      consummation of a Triggering Event and has also elected not to receive an amount
      in cash equal to the value of this Warrant calculated in accordance with the
      Black-Scholes formula pursuant to the provisions of Section
      4(E)(i)
      above
      (and subject to the limit described in Section
      4(E)(i),
      above),
      so long as the surviving entity pursuant to any Triggering Event is a company
      that has a class of equity securities registered
      pursuant to the Securities Exchange Act of 1934, as amended, and its common
      stock is listed or quoted on a national securities exchange, national automated
      quotation system or the OTC Bulletin Board,
      the
      surviving entity and/or each Person (other than the Company) 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 Company under this Warrant (and if the Company shall survive the
      consummation of such Triggering Event, such assumption shall be in addition
      to,
      and shall not release the Company from, any continuing obligations of the
      Company 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
      (ii),
      such
      Holder shall be entitled to receive, and the surviving entity and/or each such
      Person shall have similarly delivered to such Holder an opinion of counsel
      for
      the surviving entity and/or each 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 Company, 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
      (ii))
      shall
      be applicable to the Securities, cash or property which the surviving entity
      and/or each such Person may be required to deliver upon any exercise of this
      Warrant or the exercise of any rights pursuant hereto.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    F.  Sale
      of Shares Below Purchase Price:

     

    (1) 
      If at
      any time or from time to time following the Original Issuance Date, the Company
      issues or sells, or is deemed by the express provisions of this Section 4(F)
      to have
      issued or sold, Additional Shares of Common Stock (as hereinafter defined),
      other than as a dividend or other distribution on any class of stock and other
      than upon a subdivision or combination of shares of Common Stock, in either
      case
      as provided in Section 4(A)
      above,
      for an Effective Price (as hereinafter defined) less than the then existing
      Purchase Price, then and in each such case the then existing Purchase Price
      shall be reduced, as of the opening of business on the date of such issue or
      sale, to a price equal to the Effective Price for such Additional Shares of
      Common Stock.

     

    (2) For
      the
      purpose of making any adjustment required under Section 4(F),
      the
      consideration received by the Company for any issue or sale of securities shall
      (I) to the extent it consists of cash be computed at the amount of cash
      received by the Company, (II) to the extent it consists of property other
      than cash, be computed at the fair value of that property as determined in
      good
      faith by the board of directors of the Company (the “Board”),
      (III) if Additional Shares of Common Stock, Convertible Securities (as
      hereinafter defined) or rights or options to purchase either Additional Shares
      of Common Stock or Convertible Securities are issued or sold together with
      other
      stock or securities or other assets of the Company for a consideration which
      covers both, be computed as the portion of the consideration so received that
      may be reasonably determined in good faith by the Board to be allocable to
      such
      Additional Shares of Common Stock, Convertible Securities or rights or options,
      and (IV) be computed after reduction for all expenses payable by the
      Company in connection with such issue or sale.

     

    (3) For
      the
      purpose of the adjustment required under Section 4(F),
      if the
      Company issues or sells any rights, warrants or options for the purchase of,
      or
      stock or other securities convertible into or exchangeable for, Additional
      Shares of Common Stock (such convertible or exchangeable stock or securities
      being hereinafter referred to as “Convertible
      Securities”)
      and if
      the Effective Price of such Additional Shares of Common Stock is less than
      the
      Purchase Price then in effect, then in each case the Company shall be deemed
      to
      have issued at the time of the issuance of such rights, warrants, options or
      Convertible Securities the maximum number of Additional Shares of Common Stock
      issuable upon exercise, conversion or exchange thereof and to have received
      as
      consideration for the issuance of such shares an amount equal to the total
      amount of the consideration, if any, received by the Company for the issuance
      of
      such rights, warrants, options or Convertible Securities, plus, in the case
      of
      such rights, warrants or options, the minimum amounts of consideration, if
      any,
      payable to the Company upon the exercise of such rights, warrants or options,
      plus, in the case of Convertible Securities, the minimum amounts of
      consideration, if any, payable to the Company (other than by cancellation of
      liabilities or obligations evidenced by such Convertible Securities) upon the
      conversion or exchange thereof. No further adjustment of the Purchase Price,
      adjusted upon the issuance of such rights, warrants, options or Convertible
      Securities, shall be made as a result of the
      actual issuance of Additional Shares of Common Stock on the exercise of any
      such
      rights, warrants or options or the conversion or exchange of any such
      Convertible Securities. If any such rights or options or the conversion or
      exchange privilege represented by any such Convertible Securities shall expire
      without having been exercised, the Purchase Price adjusted upon the issuance
      of
      such rights, warrants, options or Convertible Securities shall be readjusted
      to
      the Purchase Price which would have been in effect had an adjustment been made
      on the basis that the only Additional Shares of Common Stock so issued were
      the
      Additional Shares of Common Stock, if any, actually issued or sold on the
      exercise of such rights, warrants, or options or rights of conversion or
      exchange of such Convertible Securities, and such Additional Shares of Common
      Stock, if any, were issued or sold for the consideration actually received
      by
      the Company upon such exercise, plus the consideration, if any, actually
      received by the Company for the granting of all such rights, warrants, or
      options, whether or not exercised, plus the consideration received for issuing
      or selling the Convertible Securities actually converted or exchanged, plus
      the
      consideration, if any, actually received by the Company (other than by
      cancellation of liabilities or obligations evidenced by such Convertible
      Securities) on the conversion or exchange of such Convertible
      Securities.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (4) For
      the
      purpose of the adjustment required under Section 4(F),
      if the
      Company issues or sells, or is deemed by the express provisions of this
Section 4 to
      have issued or sold, any rights or options for the purchase of Convertible
      Securities and if the Effective Price of the Additional Shares of Common Stock
      underlying such Convertible Securities is less than the Purchase Price then
      in
      effect, then in each such case the Company shall be deemed to have issued at
      the
      time of the issuance of such rights or options the maximum number of Additional
      Shares of Common Stock issuable upon conversion or exchange of the total amount
      of Convertible Securities covered by such rights or options and to have received
      as consideration for the issuance of such Additional Shares of Common Stock
      an
      amount equal to the amount of consideration, if any, received by the Company
      for
      the issuance of such rights, warrants or options, plus the minimum amounts
      of
      consideration, if any, payable to the Company upon the exercise of such rights,
      warrants or options, plus the minimum amount of consideration, if any, payable
      to the Company (other than by cancellation of liabilities or obligations
      evidenced by such Convertible Securities) upon the conversion or exchange of
      such Convertible Securities. No further adjustment of the Purchase Price,
      adjusted upon the issuance of such rights, warrants or options, shall be made
      as
      a result of the actual issuance of the Convertible Securities upon the exercise
      of such rights, warrants or options or upon the actual issuance of Additional
      Shares of Common Stock upon the conversion or exchange of such Convertible
      Securities. The provisions of paragraph (3) above for the readjustment of
      the Purchase Price upon the expiration of rights, warrants or options or the
      rights of conversion or exchange of Convertible Securities shall apply
mutatis mutandis
      to the
      rights, warrants options and Convertible Securities referred to in this
      paragraph (4).

     

    (5) “Additional
      Shares of Common Stock”
shall
      mean all shares of Common Stock (or any debt or equity securities convertible
      or
      exercisable into Common Stock) issued by the Company on or after the Original
      Issuance Date, whether or not subsequently reacquired or retired by the Company,
      other than (I) the Warrant Shares, (II) the shares of Common Stock issuable
      upon conversion of the Note, (III) shares of Common Stock issuable upon
      exercise of warrants, options and convertible securities outstanding as of
      the
      Original Issuance Date (provided that the terms of such warrants, options and
      convertible securities are not
      modified after the Original Issuance Date to adjust the exercise price),
      (IV) shares of Common Stock issued pursuant to any event for which
      adjustment is made to the Purchase Price under Section 4
      hereof
      or to the exercise price under the anti-dilution provisions of any securities
      outstanding as of the Original Issuance Date (including the Notes), and
      (V) 25,000 shares of common stock which the Company has previously agreed
      to issue to its legal counsel, David M. Loev (as disclosed in its SEC filings,
      which shares have not been issued to date). The “Effective
      Price”
of
      Additional Shares of Common Stock shall mean the quotient determined by dividing
      the total number of Additional Shares of Common Stock issued or sold, or deemed
      to have been issued or sold by the Company under this Section 4F,
      into
      the aggregate consideration received, or deemed to have been received, by the
      Company for such issue under this Section 4F,
      for
      such Additional Shares of Common Stock.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (6) Other
      than a reduction pursuant to its applicable anti-dilution provisions, any
      reduction in the conversion price of any Convertible Security, whether
      outstanding on the Original Issuance Date or thereafter, or the price of any
      option, warrant or right to purchase Common Stock or any Convertible Security
      (whether such option, warrant or right is outstanding on the Original Issuance
      Date or thereafter), to an Effective Price less than the current Purchase Price,
      shall be deemed to be an issuance of such Convertible Security and all such
      options, warrants or rights at such Effective Price, and the provisions of
      Sections 4(F)(3),
      (4)
      and
(5)
      shall
      apply thereto mutatis mutandis.

     

    (7) Any
      time
      an adjustment is made to the Purchase Price pursuant to Section
      4(F),
      a
      corresponding proportionate change shall be made to the number of shares of
      Common Stock issuable upon conversion of this Warrant.

     

    G.  No
      Adjustments in Certain Circumstances.
      No
      adjustment in the Purchase Price shall be required unless such adjustment would
      require an increase or decrease of at least one ($0.01) cent in such price;
      provided,
      however,
      that
      any adjustments which by reason of this Section 4(G)
      are not
      required to be made shall be carried forward and taken into account in any
      subsequent adjustment required to be made hereunder. All calculations under
      this
Section 4(G)
      shall be
      made to the nearest cent or to the nearest one-hundredth of a share, as the
      case
      may be.

     

    5. Notices
      of Record Date.
      In
      case:

     

    A. the
      Company shall take a record of the holders of its Common Stock (or other stock
      or securities at the time receivable upon the exercise of the Warrants) for
      the
      purpose of entitling them to receive any dividend or other distribution, or
      any
      right to subscribe for or purchase any shares of stock of any class or any
      other
      securities, or to receive any other right, or

     

    B. of
      any
      capital reorganization of the Company, any reclassification of the capital
      stock
      of the Company, any consolidation or merger of the Company with or into another
      corporation, or any conveyance of all or substantially all of the assets of
      the
      Company to another corporation, or

     

    C. of
      any
      voluntary dissolution, liquidation or winding-up of the Company; then, and
      in
      each such case, the Company will mail or cause to be mailed to each holder
      of a
      Warrant at the time outstanding a notice specifying, as the case may be,
      (a) the date on which a record is to be
      taken
      for the purpose of such dividend, distribution or right, and stating the amount
      and character of such dividend, distribution or right, or (b) the date on
      which such reorganization, reclassification, consolidation, merger, conveyance,
      dissolution, liquidation or winding-up is expected to take place, and the time,
      if any is to be fixed, as of which the holders of record of Common Stock (or
      such stock or securities at the time receivable upon the exercise of the
      Warrants) shall be entitled to exchange their shares of Common Stock (or such
      other stock or securities) for securities or other property deliverable upon
      such reorganization, reclassification, consolidation, merger, conveyance,
      dissolution, liquidation or winding-up, such notice shall be mailed at least
      ten
      (10) days prior to the date therein specified.

     

    
      6. [Intentionally
        removed.]

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    7. Loss
      or Mutilation.
      Upon
      receipt by the Company of evidence satisfactory to it (in the exercise of
      reasonable discretion) of the ownership of and the loss, theft, destruction
      or
      mutilation of any Warrant and (in the case of loss, theft or destruction) of
      indemnity satisfactory to it (in the exercise of reasonable discretion), and
      (in
      the case of mutilation) upon surrender and cancellation thereof, the Company
      will execute and deliver in lieu thereof a new Warrant of like
      tenor.

     

    8. Reservation
      of Common Stock.
      The
      Company shall at all times reserve and keep available for issue upon the
      exercise of Warrants such number of its authorized but unissued shares of Common
      Stock as will be sufficient to permit the exercise in full of all outstanding
      Warrants. All of the shares of Commons Stock issuable upon the exercise of
      the
      rights represented by this Warrant will, upon issuance and receipt of the
      Purchase Price therefor, be fully paid and nonassessable, and free from all
      preemptive rights, rights of first refusal or first offer, taxes, liens and
      charges of whatever nature, with respect to the issuance thereof.

     

    9. Registration
      Rights Agreement.
      The
      Holder of this Warrant is entitled to have a portion of the Warrant Shares
      registered for resale under the Act, pursuant to and in accordance with the
      Registration Rights Agreement dated as of the date hereof by and between the
      Holder and the Company.

     

    10. No
      Rights as Stockholder Conferred by Warrants.
      The
      Warrant shall not entitle the Holder hereof to any of the rights, either at
      law
      or in equity, of a stockholder of the Company. The Holder shall, upon the
      exercise thereof, not be entitled to any dividend that may have accrued or
      which
      may previously have been paid with respect to shares of stock issuable upon
      the
      exercise of the Warrant, except as may otherwise be provided in Section
      4
      hereof.

     

    11. Notices.
      All
      notices and other communications from the Company to the Holder of this Warrant
      shall be mailed by first class, registered or certified mail, postage prepaid,
      and/or a nationally recognized overnight courier service to the address
      furnished to the Company in writing by the Holder.

     

    12. Change;
      Modifications; Waiver.
      No
      terms of this Warrant may be amended, waived or modified except by the express
      written consent of the Company and the holders of not less than 50.1% of the
      shares of Common Stock then issuable under outstanding Warrants issued in
      connection with the Company’s August, September, and October 2006 warrants, and
      June 2007 warrants;
      provided,
      however,
      that no
      such amendment or waiver shall reduce the Warrant Share Number, increase the
      Purchase Price, shorten the period during which this Warrant may be exercised
      or
      modify any provision of this Section
      12
      without
      the consent of the Holder of this Warrant. Notwithstanding the foregoing
      sentence, the Purchase Price will be subject to adjustment in the event of
      a
      forward or reverse stock split. 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.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    13. Endorsement
      of Warrants.
      The
      Warrant when presented or surrendered for exchange, transfer or registration
      shall be accompanied (if so required by the Company) by an assignment in the
      form attached hereto as Exhibit
      B
      or such
      other written instrument of transfer, in form satisfactory to the Company,
      duly
      executed by the registered Holder or by his duly authorized
      attorney.

     

    14. Agreement
      of Warrant Holders.
      The
      Holder, and to the extent that portions of this Warrant are assigned and there
      is more than one Holder of warrants exercisable for the Warrant Shares, every
      holder of a Warrant, by accepting the same, consents and agrees with the Company
      and with all other Warrant holders that: (a) the Warrants are transferable
      only
      as permitted by Section
      3
      above;
      (b) the Warrants are transferable only on the registry books of the Company
      as
      herein provided; and (c) the Company may deem and treat the person in whose
      name
      the Warrant certificate is registered as the absolute owner thereof and of
      the
      Warrants evidenced thereby for all purposes whatsoever, and the Company shall
      not be affected by any notice to the contrary.

     

    15. Payment
      of Taxes.
      The
      Company will pay all stamp, transfer and other similar taxes payable in
      connection with the original issuance of this Warrant and the shares of Common
      Stock issuable upon exercise thereof, provided, however, that the Company shall
      not be required to (i) pay any such tax which may be payable in respect of
      any
      transfer involving the transfer and delivery of this Warrant or the issuance
      or
      delivery of certificates for shares of Common Stock issuable upon exercise
      thereof in a name other than that of the registered Holder of this Warrant
      or
      (ii) issue or deliver any certificate for shares of Common Stock upon the
      exercise of this Warrant until any such tax required to be paid under clause
      (i)
      shall have been paid, all such tax being payable by the holder of this Warrant
      at the time of surrender.

     

    16. Ownership
      Cap and Exercise Restriction.
      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 9.9% of the then issued
      and
      outstanding shares of Common Stock; provided,
      however,
      that
      upon a holder of this Warrant providing the Company with sixty-one (61) days
      notice (pursuant to Section
      13
      hereof)
      (the "Waiver
      Notice")
      that
      such Holder would like to waive this Section
      7
      with
      regard to any or all shares of Common Stock issuable upon exercise of this
      Warrant, this Section
      7
      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.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    17. Fractional
      Interest.
      The
      Company shall not be required to issue fractional shares of Common Stock on
      the
      exercise of this Warrant. If more than one Warrant shall be presented for
      exercise at the same time by the Holder, the number of full shares of Common
      Stock which shall be issuable upon such exercise shall be computed on the basis
      of the aggregate number of shares of Common Stock acquirable on exercise of
      the
      Warrants so presented. If any fraction of a share of Common Stock would, except
      for the provisions of this Section
      17,
      be
      issuable on the exercise of any Warrant (or specified portion thereof), the
      Company shall pay an amount in cash calculated by it to be equal to the Purchase
      Price per share multiplied by such fraction computed to the nearest whole cent.
      The Holder by his acceptance of this Warrant expressly waives any and all rights
      to receive any fraction of a share of Common Stock or a stock certificate
      representing a fraction of a share of Common Stock.

     

    18. Entire
      Agreement.
      This
      Warrant constitutes the full and entire understanding and agreement among the
      parties with regard to the subject matter hereof and no party shall be liable
      or
      bound to any other party in any manner by any representations, warranties,
      covenants or agreements except as specifically set forth herein.

     

    19. Successors
      and Assigns.
      All
      covenants and provisions of this Warrant by or for the benefit of the Company
      or
      the Holder of this Warrant shall bind and inure to the benefit of their
      respective successors, permitted assigns, heirs and personal
      representatives.

     

    20. Termination.
      This
      Warrant shall terminate at 5:00 p.m., Eastern Time, on the Expiration Date
      or
      upon such earlier date on which all of this Warrant has been exercised (the
      “Termination
      Date”).

     

    21. Headings.
      The
      headings in this Warrant are for purposes of convenience in reference only,
      and
      shall not be deemed to constitute a part hereof.

     

    22. Governing
      Law, Etc.
      This
      Agreement shall be governed by and construed exclusively in accordance with
      the
      internal laws of the State of New York without regard to the conflicts of laws
      principles thereof. The parties hereto hereby irrevocably agree that any suit
      or
      proceeding arising directly and/or indirectly pursuant to or under this
      Agreement, shall be brought solely in a federal or state court located in the
      City, County and State of New York. By its execution hereof, the parties hereby
      covenant and irrevocably submit to the in personam
      jurisdiction of the federal and state courts located in the City, County and
      State of New York and agree that any process in any such action may be served
      upon any of them personally, or by certified mail or registered mail upon them
      or their agent, return receipt requested, with the same full force and effect
      as
      if personally served upon them in New York City. The parties hereto waive any
      claim that any such jurisdiction is not a convenient forum for any such suit
      or
      proceeding and any defense or lack of in personam
      jurisdiction with respect thereto. In the event of any such action or
      proceeding, the party prevailing therein shall be entitled to payment from
      the
      other party hereto of all of its reasonable legal fees and
      expenses.

     

    Remainder
      of Page Intentionally Left Blank

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    WARRANT
      SIGNATURE PAGE

     

    

     

    

     

    Dated:
      June ___, 2007

     

    
      	 	 
	 	
              XA,
                INC.

            
	 	 
	 	 
	 	
              By:
                /s/ Joseph Wagner

            
	 	
              Name:
                Joseph Wagner

            
	 	
              Title:
                President & CEO

            

    

    

     

    

     

    

     

     

    

     

    

     

    200,000
      Shares

    

     

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    SUBSCRIPTION
      FORM

     

    (To
      be
      executed only upon exercise of Warrant)

     

    

     

    The
      undersigned registered owner of this Warrant irrevocably exercises this Warrant
      and purchases _______ shares of the Common Stock of XA, Inc., purchasable with
      this Warrant, and herewith makes payment therefor (either in cash or pursuant
      to
      the cashless exercise provisions set forth in Section
      1
      of the
      Warrant), all at the price and on the terms and conditions specified in this
      Warrant.

     

    Dated:     

    

    

    

    
      	 	                                                                          
               
	 	
              (Signature
                of Registered Owner

            
	 	 
	 	 
	 	                                                                             
	 	
              (Street
                Address)

            
	 	 
	 	 
	 	                                                                             
	 	
              (City
                / State / Zip Code)

            

    

    

    

    

     

    
      
        
           

        

        
        

      

      
        14

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      B

     

    FORM
      OF ASSIGNMENT

     

    

     

    FOR
      VALUE RECEIVED
      the
      undersigned registered owner of this Warrant hereby sells, assigns and transfers
      unto the Assignee named below all of the rights of the undersigned under the
      within Warrant, with respect to the number of shares of Common Stock set forth
      below:

     

    
      	
              Name
                of Assignee

               

            	
              Address

               

            	
              Number
                of Shares

               

            
	
                                                 
                 

            	
              
                
                                                     
                                      
                    

                

              

            	
              
                                                   
                                       
                  

              

            
	 	
              
                                                   
                                    
                  

              

            	 
	 	
              
                                                   
                                    
                  

              

            	 

    

    

    and
      does
      hereby irrevocably constitute and appoint __________________________ Attorney
      to
      make such transfer on the books of XA, Inc., maintained for the purpose, with
      full power of substitution in the premises.

     

    Dated:                                                         
           

     

    

     

    
      	 	                                                                       
               
	 	
              (Signature)

            
	 	 
	 	                                                                          
	 	
              (Witness)

            
	 	 

    

    

    The
      undersigned Assignee of the Warrant hereby makes to XA, Inc., as of the date
      hereof, with respect to the Assignee, all of the representations and warranties
      made by the Holder, and the undersigned Assignee agrees to be bound by all
      the
      terms and conditions of the Warrant and the XA, Inc. Registration Rights
      Agreement, dated as of ______ __, 2006, by and between XA, Inc. and the
      Holder.

    

    

    Dated:                                                                

    

    

    

    
      	 	                                                                           
	 	
              (Signature)

            

    

    

    

    
      
        
        

      

      
        15

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