CALLABLE SECURED CONVERTIBLE NOTE

                                                                         EX-10.5



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



                        CALLABLE SECURED CONVERTIBLE NOTE

Clinton Township, Michigan
September 15, 2006                                                    $[_______]

         FOR  VALUE  RECEIVED,   MIDNIGHT  HOLDINGS  GROUP,   INC.,  a  Delaware
corporation  (hereinafter called the "BORROWER"),  hereby promises to pay to the
order of  [______________]  or  registered  assigns  (the  "HOLDER")  the sum of
$[_______],  on September 15, 2009 (the "MATURITY DATE"), and to pay interest on
the unpaid  principal  balance hereof at the rate of ten percent (10%) per annum
from  September  15,  2006 (the  "ISSUE  DATE")  until the same  becomes due and
payable, whether at maturity or upon acceleration or by prepayment or otherwise.
Any  amount of  principal  or  interest  on this Note which is not paid when due
shall bear interest at the rate of fifteen  percent (15%) per annum from the due
date  thereof  until  the  same is paid  ("DEFAULT  INTEREST").  Interest  shall
commence accruing on the issue date, shall be computed on the basis of a 365-day
year and the actual  number of days  elapsed and shall be payable,  quarterly on
March 31, June 30,  September 30 and  December 31 of each year  beginning on the
last day of the first full quarter after Issue Date.  All payments due hereunder
(to the extent not converted into common stock,  $.00005 par value per share, of
the Borrower (the "COMMON  STOCK") in accordance with the terms hereof) shall be
made in lawful money of the United States of America. All payments shall be made
at such  address as the Holder shall  hereafter  give to the Borrower by written
notice made in accordance with the provisions of this Note.  Whenever any amount
expressed  to be due by the  terms of this Note is due on any day which is not a
business day, the same shall instead be due on the next  succeeding day which is
a business  day and, in the case of any  interest  payment date which is not the
date on which this Note is paid in full,  the  extension of the due date thereof
shall not be taken  into  account  for  purposes  of  determining  the amount of
interest due on such date. As used in this Note,  the term  "business day" shall
mean any day other than a Saturday, Sunday or a day on which commercial banks in
the city of New York,  New York are  authorized  or required by law or executive
order to


<PAGE>

remain closed.  Each  capitalized term used herein,  and not otherwise  defined,
shall have the meaning  ascribed  thereto in that  certain  Securities  Purchase
Agreement,  dated September 15, 2006, pursuant to which this Note was originally
issued (the "PURCHASE AGREEMENT").

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

         The following terms shall apply to this Note:

                          ARTICLE I. CONVERSION RIGHTS

                  1.1  CONVERSION  RIGHT.  The Holder  shall have the right from
time to time,  and at any time on or prior to the  earlier  of (i) the  Maturity
Date and (ii) the date of payment of the  Default  Amount (as defined in Article
III) pursuant to Section 1.6(a) or Article III, the Optional  Prepayment  Amount
(as defined in Section 5.1) or (iii) any payments  pursuant to Section 1.7, each
in respect of the remaining outstanding principal amount of this Note to convert
all or any part of the outstanding and unpaid principal amount of this Note into
fully paid and  non-assessable  shares of Common  Stock,  as such  Common  Stock
exists on the Issue Date, or any shares of capital stock or other  securities of
the  Borrower  into  which  such  Common  Stock  shall  hereafter  be changed or
reclassified  at the conversion  price (the  "CONVERSION  PRICE")  determined as
provided herein (a "CONVERSION");  PROVIDED, HOWEVER, that in no event shall the
Holder be entitled to convert any portion of this Note in excess of that portion
of this Note  upon  conversion  of which the sum of (1) the  number of shares of
Common Stock  beneficially  owned by the Holder and its  affiliates  (other than
shares  of Common  Stock  which may be deemed  beneficially  owned  through  the
ownership  of the  unconverted  portion  of the  Notes  or  the  unexercised  or
unconverted  portion of any other security of the Borrower  (including,  without
limitation,  the  warrants  issued  by the  Borrower  pursuant  to the  Purchase
Agreement)  subject to a limitation on  conversion or exercise  analogous to the
limitations  contained  herein)  and (2) the  number of  shares of Common  Stock
issuable  upon the  conversion of the portion of this Note with respect to which
the  determination  of this proviso is being made,  would  result in  beneficial
ownership by the Holder and its affiliates of more than 4.9% of the  outstanding
shares of Common Stock. For purposes of the proviso to the immediately preceding
sentence,  beneficial  ownership  shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended,  and Regulations 13D-G
thereunder,  except as  otherwise  provided in clause (1) of such  proviso.  The
number of shares of Common Stock to be issued upon each  conversion of this Note
shall be determined by dividing the Conversion  Amount (as defined below) by the
applicable  Conversion  Price then in effect on the date specified in the notice
of  conversion,  in the form  attached  hereto  as  Exhibit  A (the  "NOTICE  OF
CONVERSION"), delivered to the Borrower by the Holder in accordance with Section
1.4 below;  provided that the Notice of Conversion is submitted by facsimile (or
by other means resulting in, or reasonably expected to result in, notice) to the
Borrower  before 6:00 p.m., New York, New York time on such conversion date (the
"CONVERSION  DATE").  The term  "CONVERSION  AMOUNT" means,  with respect to any
conversion of this Note, the sum of (1) the principal  amount of this Note to be
converted in such 


                                       2
<PAGE>

conversion  PLUS (2) accrued  and unpaid  interest,  if any,  on such  principal
amount at the interest rates  provided in this Note to the Conversion  Date PLUS
(3) Default  Interest,  if any, on the  amounts  referred to in the  immediately
preceding  clauses (1) and/or (2) PLUS (4) at the Holder's  option,  any amounts
owed to the Holder  pursuant  to Sections  1.3 and 1.4(g)  hereof or pursuant to
Section  2(c)  of  that  certain  Registration  Rights  Agreement,  dated  as of
September  15, 2006,  executed in connection  with the initial  issuance of this
Note and the other  Notes  issued on the Issue  Date (the  "REGISTRATION  RIGHTS
AGREEMENT").

                  1.2 CONVERSION PRICE.

                           (a) CALCULATION OF CONVERSION  PRICE.  The Conversion
Price  shall be the  lesser of (i) the  Variable  Conversion  Price (as  defined
herein) and (ii) the Fixed  Conversion  Price (as defined herein)  (subject,  in
each case, to equitable  adjustments for stock splits, stock dividends or rights
offerings  by  the  Borrower  relating  to  the  Borrower's  securities  or  the
securities of any  subsidiary of the Borrower,  combinations,  recapitalization,
reclassifications,   extraordinary   distributions  and  similar  events).   The
"VARIABLE  CONVERSION  PRICE" shall mean the  Applicable  Percentage (as defined
herein) multiplied by the Market Price (as defined herein). "MARKET PRICE" means
the average of the lowest  three (3) Trading  Prices (as defined  below) for the
Common Stock  during the twenty (20)  Trading Day period  ending one Trading Day
prior to the date the  Conversion  Notice is sent by the Holder to the  Borrower
via facsimile (the "CONVERSION  DATE").  "TRADING PRICE" means, for any security
as of any date,  the intraday  trading  price on the  Over-the-Counter  Bulletin
Board (the  "OTCBB")  as  reported  by a  reliable  reporting  service  mutually
acceptable to and  hereafter  designated by Holders of a majority in interest of
the Notes and the Borrower or, if the OTCBB is not the principal  trading market
for such security,  the intraday trading price of such security on the principal
securities  exchange or trading  market where such  security is listed or traded
or, if no intraday  trading  price of such  security is  available in any of the
foregoing  manners,  the average of the  intraday  trading  prices of any market
makers for such  security  that are listed in the "pink  sheets" by the National
Quotation  Bureau,  Inc.  If the Trading  Price  cannot be  calculated  for such
security on such date in the manner provided  above,  the Trading Price shall be
the fair market value as mutually  determined by the Borrower and the holders of
a majority in interest of the Notes being converted for which the calculation of
the Trading Price is required in order to determine the Conversion Price of such
Notes.  "TRADING DAY" shall mean any day on which the Common Stock is traded for
any  period on the  OTCBB,  or on the  principal  securities  exchange  or other
securities  market on which the Common Stock is then being  traded.  "APPLICABLE
PERCENTAGE" shall mean 25%; provided,  however,  that the Applicable  Percentage
shall be increased to (i) 30% in the event that the  Registration  Statement (as
defined in the Registration  Rights  Agreement) is filed on or before the Filing
Date (as defined in the Registration Rights Agreement) and (ii) 40% in the event
that  the  Registration   Statement  (as  defined  in  the  Registration  Rights
Agreement) becomes effective on or before the Effectiveness Deadline (as defined
in the Registration Rights Agreement).

                           (b)  CONVERSION  PRICE  DURING  MAJOR  ANNOUNCEMENTS.
Notwithstanding  anything  contained in Section  1.2(a) to the contrary,  in the
event  the  Borrower  (i)  makes  a  public  announcement  that  it  intends  to
consolidate  or merge with any other  corporation  (other than a merger in which
the Borrower is the surviving or continuing corporation and its capital stock is
unchanged)  or sell or transfer  all or  substantially  all of the assets of the
Borrower or (ii) any person,  group or entity (including the Borrower)  publicly


                                       3
<PAGE>

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

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

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


                                       4
<PAGE>

Stock in accordance  with the terms hereof until (and at the Holder's  option at
any time after) the date additional shares of Common Stock are authorized by the
Borrower  to permit  such  conversion,  at which  time the  Conversion  Price in
respect  thereof  shall  be  the  lesser  of (i)  the  Conversion  Price  on the
Conversion  Default Date (as defined below) and (ii) the Conversion Price on the
Conversion  Date  thereafter  elected  by the  Holder  in  respect  thereof.  In
addition,  the Borrower shall pay to the Holder  payments  ("CONVERSION  DEFAULT
PAYMENTS") for a Conversion Default in the amount of (x) the SUM OF (1) the then
outstanding  principal  amount of this Note PLUS (2) accrued and unpaid interest
on the unpaid principal amount of this Note through the  Authorization  Date (as
defined below) PLUS (3) Default Interest,  if any, on the amounts referred to in
clauses (1) and/or (2), MULTIPLIED BY (y) .24, MULTIPLIED BY (z) (N/365),  where
N = the  number of days from the day the holder  submits a Notice of  Conversion
giving rise to a Conversion Default (the "CONVERSION  DEFAULT DATE") to the date
(the  "AUTHORIZATION  DATE") that the Borrower authorizes a sufficient number of
shares of Common Stock to effect  conversion of the full  outstanding  principal
balance of this Note.  The  Borrower  shall use its best  efforts to authorize a
sufficient number of shares of Common Stock as soon as practicable following the
earlier  of (i) such time that the  Holder  notifies  the  Borrower  or that the
Borrower  otherwise  becomes aware that there are or likely will be insufficient
authorized  and  unissued  shares to allow full  conversion  thereof  and (ii) a
Conversion  Default.  The  Borrower  shall  send  notice  to the  Holder  of the
authorization of additional shares of Common Stock, the  Authorization  Date and
the  amount  of  Holder's  accrued  Conversion  Default  Payments.  The  accrued
Conversion  Default  Payments for each  calendar  month shall be paid in cash or
shall be  convertible  into Common  Stock (at such time as there are  sufficient
authorized  shares of Common Stock) at the applicable  Conversion  Price, at the
Borrower's option, as follows:

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

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

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


                                       5
<PAGE>


                  1.4 METHOD OF CONVERSION.

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

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

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

                           (d)  DELIVERY OF COMMON STOCK UPON  CONVERSION.  Upon
receipt by the Borrower  from the Holder of a facsimile  transmission  (or other
reasonable  means  of  communication)  of a Notice  of  Conversion  meeting  the
requirements  for conversion as provided in this Section 1.4, the Borrower shall
issue and  deliver or cause to be issued and  delivered  to or upon the order of
the Holder  certificates  for the Common  Stock  issuable  upon such  conversion
within five (5)  business  days after such receipt  (and,  solely in the case of
conversion of the entire unpaid principal amount hereof, surrender of this Note)
(such second  business day being  hereinafter  referred to as the "DEADLINE") in
accordance with the terms hereof and the Purchase Agreement (including,  without
limitation,  in accordance with the requirements of Section 2(g) of the Purchase
Agreement  that  certificates  for shares of Common Stock issued on or after the


                                       6
<PAGE>

effective date of the Registration  Statement upon conversion of this Note shall
not bear any restrictive legend).

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

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

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


                                       7
<PAGE>

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

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

                  The legend set forth above  shall be removed and the  Borrower
shall issue to the Holder a new certificate therefor free of any transfer legend
if (i) the  Borrower or its  transfer  agent  shall have  received an opinion of
counsel,  in form,  substance  and scope