o\ue000 Written\ue000 communications\ue000 pursuant\ue000 to\ue000 Rule\ue000 425\ue000 under\ue000 the\ue000 Securities\ue000 Act\ue000 (17\ue000 CFR\ue000 230.425)
o\ue000 Soliciting\ue000 material\ue000 pursuant\ue000 to\ue000 Rule\ue000 14a-12\ue000 under\ue000 the\ue000 Exchange\ue000 Act\ue000 (17\ue000 CFR\ue000 240.14a-12)
o\ue000 Pre-commencement\ue000 communications\ue000 pursuant\ue000 to\ue000 Rule\ue000 14d-2(b)\ue000 under\ue000 the\ue000 Exchange\ue000 Act\ue000 (17\ue000 CFR\ue000 240.14d-2(b))
o\ue000 Pre-commencement\ue000 communications\ue000 pursuant\ue000 to\ue000 Rule\ue000 13e-4(c)\ue000 under\ue000 the\ue000 Exchange\ue000 Act\ue000 (17\ue000 CFR\ue000 240.13e-4(c))

Statements\ue000 in\ue000 this\ue000 Current\ue000 Report\ue000 on\ue000 Form\ue000 8-K\ue000 (including\ue000 the\ue000 exhibits)\ue000 that\ue000 are\ue000 not\ue000 purely\ue000 historical\ue000 facts,\ue000 including\ue000 statements
regarding\ue000 Smart\ue000 Move,\ue000 Inc.\u2019s\ue000 beliefs,\ue000 expectations,\ue000 intentions\ue000 or\ue000 strategies\ue000 for\ue000 the\ue000 future,\ue000 may\ue000 be\ue000 \u201cforward-looking\ue000 statements\u201d
under\ue000 the\ue000 Private\ue000 Securities\ue000 Litigation\ue000 Reform\ue000 Act\ue000 of\ue000 1995.\ue000 Forward-looking\ue000 statements\ue000 include\ue000 statements\ue000 regarding\ue000 expected
financing\ue000 or\ue000 funding\ue000 transactions\ue000 and\ue000 any\ue000 statements\ue000 identified\ue000 by\ue000 forward\ue000 looking\ue000 terms\ue000 such\ue000 as\ue000 \u201cmay,\u201d\ue000 \u201cwill,\u201d\ue000 \u201cwould,\u201d
\u201cexpect,\u201d\ue000 \u201cplan,\u201d\ue000 \u201canticipate\u201d\ue000 or\ue000 \u201cproject.\u201d\ue000 These\ue000 statements\ue000 are\ue000 subject\ue000 to\ue000 risks\ue000 and\ue000 uncertainties\ue000 which\ue000 could\ue000 cause\ue000 actual
results\ue000 to\ue000 differ\ue000 materially\ue000 from\ue000 such\ue000 statements,\ue000 including,\ue000 among\ue000 others,\ue000 risks\ue000 relating\ue000 to\ue000 general\ue000 economic\ue000 conditions\ue000 affecting
the\ue000 Company\u2019s\ue000 operations\ue000 or\ue000 the\ue000 demand\ue000 for\ue000 its\ue000 services\ue000 and\ue000 any\ue000 delay\ue000 or\ue000 failure\ue000 of\ue000 the\ue000 Company\ue000 to\ue000 complete\ue000 any\ue000 funding\ue000 or
financing\ue000 transaction\ue000 at\ue000 levels\ue000 sufficient\ue000 to\ue000 meet\ue000 its\ue000 working\ue000 capital\ue000 requirements.\ue000 Smart\ue000 Move\ue000 has\ue000 included\ue000 a\ue000 discussion\ue000 of\ue000 these
and\ue000 other\ue000 pertinent\ue000 risk\ue000 factors\ue000 in\ue000 its\ue000 Annual\ue000 Report\ue000 on\ue000 Form-KSB\ue000 for\ue000 2007\ue000 and\ue000 in\ue000 Quarterly\ue000 Reports\ue000 on\ue000 Form\ue000 10-Q\ue000 for\ue000 the\ue000 first,
second\ue000 and\ue000 third\ue000 quarters\ue000 of\ue000 2008.\ue000 Smart\ue000 Move\ue000 disclaims\ue000 any\ue000 intention\ue000 or\ue000 obligation\ue000 to\ue000 update\ue000 or\ue000 revise\ue000 any\ue000 forward-looking
statements,\ue000 whether\ue000 as\ue000 a\ue000 result\ue000 of\ue000 new\ue000 information,\ue000 future\ue000 events\ue000 or\ue000 otherwise.

On\ue000 February\ue000 17,\ue000 2009,\ue000 Smart\ue000 Move,\ue000 Inc.\ue000 (the\ue000 \u201cCompany\u201d)\ue000 entered\ue000 into\ue000 the\ue000 material\ue000 agreement\ue000 described\ue000 in\ue000 Item\ue000 2.03,\ue000 below,\ue000 by which\ue000 the\ue000 Company\ue000 obtained\ue000 gross\ue000 loan\ue000 proceeds\ue000 of\ue000 $350,000.\ue000 The\ue000 Company\ue000 and\ue000 the\ue000 Investors\ue000 also\ue000 entered\ue000 into\ue000 a\ue000 Note\ue000 in\ue000 the form\ue000 attached\ue000 hereto\ue000 as\ue000 Exhibit\ue000 4.1.

The\ue000 Audit\ue000 Committee\ue000 of\ue000 the\ue000 Board\ue000 of\ue000 Directors\ue000 of\ue000 Smart\ue000 Move,\ue000 Inc.\ue000 reviewed\ue000 the\ue000 terms\ue000 of\ue000 the\ue000 proposed\ue000 transaction,\ue000 which\ue000 include
participation\ue000 of\ue000 a\ue000 related\ue000 person\ue000 who\ue000 is\ue000 not\ue000 an\ue000 officer\ue000 or\ue000 director\ue000 of\ue000 the\ue000 Company,\ue000 to\ue000 determine\ue000 whether\ue000 the\ue000 arrangements\ue000 would
be\ue000 consistent\ue000 with\ue000 the\ue000 best\ue000 interests\ue000 of\ue000 the\ue000 Company\ue000 and\ue000 its\ue000 stockholders.\ue000 Based\ue000 upon\ue000 the\ue000 transaction\ue000 terms\ue000 and\ue000 conditions\ue000 to\ue000 be
applicable\ue000 under\ue000 the\ue000 terms\ue000 of\ue000 agreement\ue000 proposed,\ue000 the\ue000 Company\u2019s\ue000 current\ue000 need\ue000 for\ue000 funding\ue000 to\ue000 maintain\ue000 operations\ue000 and\ue000 its\ue000 delays
in\ue000 securing\ue000 equity\ue000 capital\ue000 at\ue000 higher\ue000 targeted\ue000 levels,\ue000 the\ue000 Committee\ue000 concluded\ue000 that\ue000 the\ue000 transaction\ue000 terms\ue000 proposed\ue000 are\ue000 fair\ue000 and
reasonable\ue000 under\ue000 all\ue000 of\ue000 the\ue000 circumstances,\ue000 and\ue000 are\ue000 in,\ue000 or\ue000 not\ue000 inconsistent\ue000 with,\ue000 the\ue000 best\ue000 interests\ue000 of\ue000 the\ue000 Company\ue000 and\ue000 its
stockholders.\ue000 The\ue000 Committee\ue000 also\ue000 noted\ue000 that\ue000 the\ue000 terms\ue000 were\ue000 no\ue000 less\ue000 favorable\ue000 to\ue000 the\ue000 Company\ue000 than\ue000 terms\ue000 that\ue000 would\ue000 be
obtainable\ue000 at\ue000 the\ue000 current\ue000 time\ue000 by\ue000 the\ue000 Company\ue000 for\ue000 a\ue000 comparable\ue000 transaction\ue000 in\ue000 arms\u2019\ue000 length\ue000 dealings\ue000 negotiated\ue000 in\ue000 good\ue000 faith\ue000 with
unrelated\ue000 third\ue000 parties.\ue000 The\ue000 Committee\ue000 took\ue000 into\ue000 account\ue000 in\ue000 its\ue000 determination\ue000 that\ue000 shares\ue000 that\ue000 would\ue000 be\ue000 issuable\ue000 to\ue000 the\ue000 investors
under\ue000 the\ue000 convertible\ue000 notes\ue000 and\ue000 warrants\ue000 would\ue000 be\ue000 dilutive\ue000 due\ue000 to\ue000 the\ue000 current\ue000 low\ue000 market\ue000 price\ue000 of\ue000 the\ue000 Company\u2019s\ue000 common\ue000 stock.
The\ue000 Committee\ue000 also\ue000 noted\ue000 that\ue000 these\ue000 investors\ue000 currently\ue000 hold\ue000 notes\ue000 in\ue000 the\ue000 principal\ue000 amount\ue000 of\ue000 $9,217,500\ue000 which\ue000 are\ue000 secured\ue000 by
operating\ue000 assets\ue000 of\ue000 the\ue000 Company,\ue000 and\ue000 that\ue000 these\ue000 previously\ue000 issued\ue000 and\ue000 outstanding\ue000 secured\ue000 notes\ue000 are\ue000 technically\ue000 in\ue000 default,\ue000 and
without\ue000 continued\ue000 forbearance\ue000 of\ue000 these\ue000 holders\ue000 to\ue000 exercise\ue000 their\ue000 rights\ue000 as\ue000 secured\ue000 parties,\ue000 the\ue000 Company\ue000 could\ue000 not\ue000 continue\ue000 its

On\ue000 February\ue000 17,\ue000 2009,\ue000 a\ue000 Bridge\ue000 Loan\ue000 Agreement\ue000 in\ue000 the\ue000 form\ue000 attached\ue000 as\ue000 Exhibit\ue000 4.1,\ue000 was\ue000 entered\ue000 into\ue000 between\ue000 the\ue000 Company\ue000 and
investors\ue000 for\ue000 a\ue000 short\ue000 term\ue000 loan\ue000 in\ue000 the\ue000 principal\ue000 amount\ue000 of\ue000 $350,000\ue000 bearing\ue000 interest\ue000 at\ue000 12%\ue000 per\ue000 annum,\ue000 with\ue000 a\ue000 maturity\ue000 date\ue000 of
March\ue000 31,\ue000 2009.\ue000 The\ue000 loan\ue000 is\ue000 secured\ue000 to\ue000 the\ue000 extent\ue000 of\ue000 principal\ue000 and\ue000 interest\ue000 by\ue000 SmartVault\ue000 containers\ue000 and\ue000 the\ue000 tool\ue000 mold\ue000 on\ue000 a\ue000 pro\ue000 rata
and\ue000 pari\ue000 passu\ue000 basis\ue000 with\ue000 holders\ue000 of\ue000 security\ue000 in\ue000 the\ue000 same\ue000 assets\ue000 with\ue000 respect\ue000 to\ue000 $9,217,500\ue000 of\ue000 existing\ue000 indebtedness.\ue000 The\ue000 loan
bears\ue000 interest\ue000 at\ue000 the\ue000 rate\ue000 of\ue000 12%\ue000 per\ue000 annum,\ue000 payable\ue000 at\ue000 maturity.\ue000 The\ue000 Company\ue000 paid\ue000 a\ue000 placement\ue000 agent\ue000 that\ue000 is\ue000 a\ue000 registered\ue000 FINRA
broker\ue000 a\ue000 fee\ue000 equal\ue000 to\ue000 6%\ue000 of\ue000 the\ue000 gross\ue000 proceeds\ue000 at\ue000 the\ue000 closing\ue000 of\ue000 the\ue000 bridge\ue000 loan.\ue000 The\ue000 terms\ue000 of\ue000 the\ue000 bridge\ue000 loan\ue000 include\ue000 conditional
issuances\ue000 of\ue000 restricted\ue000 securities\ue000 to\ue000 the\ue000 lender\ue000 as\ue000 described\ue000 in\ue000 Item\ue000 3.02.\ue000 The\ue000 Company\ue000 and\ue000 the\ue000 Investor\ue000 also\ue000 entered\ue000 into\ue000 a\ue000 Note,\ue000 a
copy\ue000 of\ue000 the\ue000 form\ue000 of\ue000 which\ue000 is\ue000 attached\ue000 hereto\ue000 as\ue000 Exhibit\ue000 4.2.

In\ue000 connection\ue000 with\ue000 the\ue000 bridge\ue000 loan\ue000 funding\ue000 described\ue000 in\ue000 Items\ue000 1.02\ue000 and\ue000 2.03\ue000 above,\ue000 and\ue000 as\ue000 additional\ue000 risk-related\ue000 consideration
agreed\ue000 to\ue000 be\ue000 paid\ue000 to\ue000 the\ue000 lender\ue000 for\ue000 making\ue000 the\ue000 short-term\ue000 loan,\ue000 the\ue000 Company\ue000 issued\ue000 its\ue000 secured\ue000 12%\ue000 Notes\ue000 and\ue000 also\ue000 agreed,
subject\ue000 to\ue000 satisfaction\ue000 of\ue000 approval\ue000 requirements\ue000 to\ue000 issue\ue000 restricted\ue000 common\ue000 stock\ue000 upon\ue000 conversion\ue000 of\ue000 the\ue000 Notes\ue000 along\ue000 with
warrants\ue000 to\ue000 purchase\ue000 common\ue000 stock,\ue000 also\ue000 constituting\ue000 restricted\ue000 securities.\ue000 The\ue000 stated\ue000 Maturity\ue000 Date\ue000 is\ue000 March\ue000 31,\ue000 2009.\ue000 The
warrants\ue000 issued\ue000 to\ue000 investors\ue000 cover\ue000 a\ue000 right\ue000 to\ue000 purchase\ue000 an\ue000 aggregate\ue000 39,375,000\ue000 shares\ue000 at\ue000 an\ue000 exercise\ue000 price\ue000 of\ue000 $0.04\ue000 of\ue000 the
Company\u2019s\ue000 common\ue000 stock.\ue000 The\ue000 lenders\ue000 are\ue000 accredited\ue000 investors\ue000 as\ue000 defined\ue000 in\ue000 Rule\ue000 501(a)\ue000 of\ue000 Regulation\ue000 D,\ue000 as\ue000 amended,\ue000 under\ue000 the
Securities\ue000 Act\ue000 of\ue000 1933,\ue000 as\ue000 amended\ue000 (\u201cthe\ue000 1933\ue000 Act\u201d)\ue000 and\ue000 the\ue000 Company\ue000 relied\ue000 upon\ue000 the\ue000 exemption\ue000 from\ue000 securities\ue000 registration
afforded\ue000 by\ue000 the\ue000 provisions\ue000 of\ue000 Rule\ue000 506\ue000 of\ue000 Regulation\ue000 D,\ue000 under\ue000 the\ue000 Securities\ue000 Act\ue000 of\ue000 1933.\ue000 A\ue000 placement\ue000 agent\ue000 fee\ue000 equal\ue000 to\ue000 6%\ue000 of
the\ue000 gross\ue000 bridge\ue000 loan\ue000 proceeds\ue000 was\ue000 paid\ue000 by\ue000 the\ue000 Company\ue000 to\ue000 a\ue000 registered\ue000 FINRA\ue000 broker\ue000 at\ue000 the\ue000 Closing.

THIS\ue000 NOTE\ue000 HAS\ue000 NOT\ue000 BEEN\ue000 REGISTERED\ue000 WITH\ue000 THE\ue000 SECURITIES\ue000 AND\ue000 EXCHANGE\ue000 COMMISSION\ue000 OR\ue000 THE\ue000 SECURITIES
COMMISSION\ue000 OF\ue000 ANY\ue000 STATE\ue000 IN\ue000 RELIANCE\ue000 UPON\ue000 AN\ue000 EXEMPTION\ue000 FROM\ue000 REGISTRATION\ue000 UNDER\ue000 THE\ue000 SECURITIES\ue000 ACT
OF\ue000 1933,\ue000 AS\ue000 AMENDED\ue000 (THE\ue000 \u201cSECURITIES\ue000 ACT\u201d),\ue000 AND,\ue000 ACCORDINGLY,\ue000 MAY\ue000 NOT\ue000 BE\ue000 OFFERED\ue000 OR\ue000 SOLD\ue000 EXCEPT
PURSUANT\ue000 TO\ue000 AN\ue000 EFFECTIVE\ue000 REGISTRATION\ue000 STATEMENT\ue000 UNDER\ue000 THE\ue000 SECURITIES\ue000 ACT\ue000 OR\ue000 PURSUANT\ue000 TO\ue000 AN
AVAILABLE\ue000 EXEMPTION\ue000 FROM,\ue000 OR\ue000 IN\ue000 A\ue000 TRANSACTION\ue000 NOT\ue000 SUBJECT\ue000 TO,\ue000 THE\ue000 REGISTRATION\ue000 REQUIREMENTS\ue000 OF
THE\ue000 SECURITIES\ue000 ACT\ue000 AND\ue000 IN\ue000 ACCORDANCE\ue000 WITH\ue000 APPLICABLE\ue000 STATE\ue000 SECURITIES\ue000 LAWS.

THIS\ue000 NOTE\ue000 is\ue000 one\ue000 of\ue000 a\ue000 duly\ue000 authorized\ue000 issue\ue000 of\ue000 Notes\ue000 of\ue000SMART\ue000 MOVE,\ue000 INC.,\ue000 a\ue000 Delaware\ue000 corporation,\ue000 (the\ue000 \u201cCompany\u201d), designated\ue000 as\ue000 its\ue000 Series\ue000 2009\ue000 12%\ue000 Convertible\ue000 Notes\ue000 (the\ue000 \u201cNotes\u201d)\ue000 due\ue000 on\ue000 March\ue000 31,\ue000 2009\ue000 (the\ue000 \u201cMaturity\ue000 Date\u201d),\ue000 in\ue000 an\ue000 aggregate principal\ue000 amount\ue000 of\ue000 $_____\ue000 plus\ue000 accrued\ue000 but\ue000 unpaid\ue000 interest.