Document:

EXHIBIT 4.21

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  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, IF SO REQUESTED BY THE COMPANY, BY A LEGAL OPINION
OF  COUNSEL  TO THE  TRANSFEROR  TO  SUCH  EFFECT,  WHICH  SHALL  BE  REASONABLY
ACCEPTABLE TO THE COMPANY.

                               WARRANT TO PURCHASE
                                 COMMON STOCK OF
                           INTRAOP MEDICAL CORPORATION
                                  WARRANT #CC-

         FOR VALUE  RECEIVED,  subject  to the terms and  conditions  herein set
forth,  ___________________  ("Holder")  is entitled to  purchase  from  Intraop
Medical Corporation, a Nevada corporation (the "Company"), at any time after the
Second Closing Date and prior to the Expiration  Date (as defined  below),  at a
price per share as set forth in  Section 1 hereof  (the  "Warrant  Price"),  the
number of fully paid and non-assessable shares of Common Stock of the Company as
set forth in Section 2 hereof  (the  "Shares").  For  purposes  hereof,  "Second
Closing  Date" shall have the meaning set forth in the Common  Stock and Warrant
Purchase Agreement dated as of August ___, 2007 by and among the Company and the
Investors named therein (the "Purchase Agreement").

         1. Warrant Price. The Warrant Price for each of the Shares  purchasable
hereunder  shall be Eight  Cents  ($0.08)  (the  "Warrant  Price"),  subject  to
adjustment as provided in Section 11

         2. Number of Shares.  The number of Shares  issuable  upon  exercise of
this  Warrant  shall  be  _______________________   (____________),  subject  to
adjustment as provided in Section 11.

         3. Expiration of Warrant.  Subject to earlier termination in accordance
with  Section  8 below,  this  Warrant  shall  expire  and  shall no  longer  be
exercisable after ______________, 2012 (the "Expiration Date").

         4. No  Fractional  Shares.  This  Warrant  may not be  exercised  as to
fractional Shares.

         5. No Stockholder  Rights. This Warrant shall not entitle Holder to any
of the rights of a stockholder of the Company.

<PAGE>

         6.  Reservation  of Shares.  The  Company  covenants  that,  subject to
stockholder  approval and filing of an amendment  to the  Company's  Amended and
Restated  Articles  of  Incorporation  authorizing  an increase in the number of
shares of Common  Stock  issuable  by the  Company  to  500,000,000  shares  (as
adjusted for stock splits,  combinations or other similar transactions),  during
the period this Warrant is  exercisable  it will reserve from its authorized and
unissued shares of Common Stock a sufficient number of shares to provide for the
issuance  of the  maximum  number of shares of Common  Stock  issuable  upon the
exercise of this Warrant.  The Company  agrees that its issuance of this Warrant
shall  constitute  full  authority  to its  officers to instruct  the  Company's
transfer  agent to issue the necessary  certificates  for shares of Common Stock
upon the exercise of this Warrant.

         7. Exercise of Warrant.

                  (a) This Warrant may be  exercised  by Holder,  in whole or in
part, at any time after the Second Closing Date and prior to the Expiration Date
by the  surrender  of this  Warrant  at the  principal  office  of the  Company,
together with the Subscription Form attached hereto duly completed and executed,
accompanied  by payment in full of the  aggregate  Warrant  Price for the Shares
being purchased upon such exercise.  In the event of exercise of this Warrant in
compliance with the provisions hereof,  certificates for the Shares so purchased
shall be delivered to Holder  promptly  and,  unless this Warrant has been fully
exercised or expired, a new Warrant  representing that portion of the Shares, if
any, with respect to which this Warrant will not then have been exercised, shall
be issued  to  Holder.  The  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 Holder shall be treated for all purposes as the
holder of record of such shares as of the close of business on such date.

                  In lieu of  exercising  this  Warrant  pursuant  to the  first
paragraph  of Section 7 (a),  Holder may elect to  receive  Shares  equal to the
value  of this  Warrant  (or  any  portion  thereof  remaining  unexercised)  by
surrender of this Warrant at the principal  office of the Company  together with
the Subscription Form, in which event the Company shall issue to Holder a number
of Shares computed using the following formula:

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

         Where X= the number of Shares to be issued to Holder.

               Y= the number of Shares for which this Warrant is then being
                  exercised (at the date of such exercise).

               A= the fair market value of one Share (at the date of such
                  exercise).

               B= the Warrant Price (as adjusted to the date of such exercise).

         For  purposes of this  subsection  fair market value of one Share shall
mean:

                  (i) The  average of the  closing  bid and asked  prices of the
                  Common Stock quoted in the NASDAQ  National  Market  System or
                  the Over-the-Counter market or the closing price quoted on any
                  exchange  on which the Common  Stock is listed,  whichever  is
                  applicable,  as published  in the Western  Edition of The Wall
                  Street Journal for the five (5) trading days prior to the date
                  of determination of the fair market value; or

                                       2
<PAGE>

                  (ii) If the Common Stock is not publicly traded, the per share
                  fair market value of the Common Stock shall be  determined  in
                  good  faith by the  Company's  Board of  Directors.  If Holder
                  disagrees with the  determination by the Board of Directors of
                  the fair  market  value of the  Common  Stock  then  such fair
                  market value shall be determined by an  independent  appraiser
                  selected  jointly by the Company and Holder.  The cost of such
                  appraisal shall be paid equally by the Company and Holder.

                  (b)  Issuance of certificates for the Shares upon the exercise
of this Warrant shall be made without charge to the registered holder hereof for
any issue or  transfer  tax or other  incidental  expense  with  respect  to the
issuance of such certificates,  all of which taxes and expenses shall be paid by
the Company, and such certificates shall be issued in the name of the registered
holder  of this  Warrant  or in such  name or  names as may be  directed  by the
registered  holder  of  this  Warrant;  provided,  however,  that  in the  event
certificates  for the  Shares  are to be issued in a name other than the name of
the  registered  holder of this Warrant,  this  Warrant,  when  surrendered  for
exercise,  shall be  accompanied  by the  Assignment  Form attached  hereto duly
executed by Holder hereof,  and provided  further,  that any such transfer shall
comply with Section 10 hereof.

         8. Stock Dividends and Other Distributions.  If the Company at any time
while this  Warrant  is  outstanding  and  unexpired  shall pay a dividend  with
respect to Common  Stock or make any other  distribution  with respect to Common
Stock (except for any distribution  specifically  provided for in Sections 11(a)
and 11(b)), then, in each such case, provision shall be made by the Company such
that  the  Holder   hereof  shall  receive  upon  exercise  of  this  Warrant  a
proportionate  share of any such dividend or  distribution as though it were the
holder of the Common Stock as of the record date fixed for the  determination of
the   stockholders  of  the  Company   entitled  to  receive  such  dividend  or
distribution.  The Company shall promptly after the declaration of such dividend
or  distribution,  mail to the Holder a  certificate  setting forth the terms of
such  dividend or  distribution  and the amount of stock or other  securities or
property that will become payable to the Holder upon exercise of this Warrant as
a result thereof.

         9.  [RESERVED]

         10. Transfer or Assignment of Warrant.

                  (a)  This  Warrant,  and  any  rights  hereunder,  may  not be
assigned or  transferred,  except as provided  herein and in accordance with and
subject to the provisions of (i) applicable  state securities laws, and (ii) the
Securities Act of 1933, as amended,  and the rules and  regulations  promulgated
thereunder  (such  Act  and  such  rules  and  regulations   being   hereinafter
collectively  referred to as the "Securities  Act").  Any purported  transfer or
assignment  made other than in accordance with this Section 10 shall be null and
void and of no force and effect.

                                       3
<PAGE>

                  (b) This Warrant, and any rights hereunder, may be transferred
or assigned only with the prior written  consent of the Company  (which  consent
shall not be unreasonably withheld or delayed), which shall be granted only upon
receipt by the Company of an opinion of counsel satisfactory to the Company that
(i) the  transferee is a person to whom this Warrant may be legally  transferred
without  registration  under the Securities Act, and (ii) such transfer will not
violate  any  applicable  law or  governmental  rule or  regulation,  including,
without limitation, any applicable federal or state securities law.

                  (c) The  requirements  of Sections 10(a) and 10(b) above shall
not apply to any transfer of this warrant (or the Common Stock  obtainable  upon
exercise hereof) or any part hereof (i) to a partner of the Holder if the Holder
is a  partnership  or to a member  of the  Holder  if the  Holder  is a  limited
liability company,  (ii) to a partnership of which the Holder is a partner or to
a  limited  liability  company  of which the  Holder  is a member,  (iii) to any
affiliate of the Holder;  (iv) without  consideration to the Holder's ancestors,
descendants  or spouse or to  trusts  for the  benefit  of such  persons  or the
Holder;  or (v)  pursuant  to a will or the  laws of  descent  or  distribution;
provided that, in any such transfer, if applicable,  the transferee shall on the
Company's  request  agree in writing to be bound by the terms of this warrant as
if an original Holder hereof.

                  (d)  Any  assignment  permitted  hereunder  shall  be  made by
surrender  of this  Warrant to the  Company  at its  principal  office  with the
Assignment  Form annexed  hereto duly  executed and funds  sufficient to pay any
transfer tax, if any. In such event, the Company shall, without charge,  execute
and deliver a new Warrant in the name of the assignee  named in such  instrument
of assignment and this Warrant shall be promptly canceled.

         11. Adjustments to Shares.

                  (a) If the  outstanding  shares of the Company's  Common Stock
shall be  subdivided  into a greater  number of shares or a  dividend  in Common
Stock  shall be paid in respect of Common  Stock,  the  Warrant  Price in effect
immediately  prior to such  subdivision  or at the record date of such  dividend
shall  simultaneously  with the effectiveness of such subdivision or immediately
after  the  record  date  of  such  dividend  be  proportionately   reduced.  If
outstanding  shares of Common Stock shall be combined  into a smaller  number of
shares, the Warrant Price in effect immediately prior to such combination shall,
simultaneously  with the effectiveness of such combination,  be  proportionately
increased.  When any adjustment is required to be made in the Warrant Price, the
number of shares of Common Stock  purchasable  upon the exercise of this Warrant
shall be changed to the number determined by dividing (i) an amount equal to the
number of shares issuable upon the exercise of this Warrant immediately prior to
such adjustment,  multiplied by the Warrant Price in effect immediately prior to
such  adjustment,  by (ii) the Warrant  Price in effect  immediately  after such
adjustment.

                  (b)  In  case  of  any   reclassification  or  change  of  the
outstanding securities of the Company or of any reorganization of the Company on
or after the date hereof, then and in each such case the holder of this Warrant,
upon  the  exercise   hereof  at  any  time  after  the   consummation  of  such
reclassification, change or reorganization shall be entitled to receive, in lieu
of the stock or other  securities  and  property  receivable  upon the  exercise
hereof prior to such consummation,  the stock or other securities or property to
which such holder would have been entitled upon such consummation if such holder
had exercised this Warrant  immediately  prior  thereto,  all subject to further
adjustment  as provided in Section  11(a);  and in each such case,  the terms of
this Section 11 shall be applicable  to the shares of stock or other  securities
properly receivable upon the exercise of this Warrant after such consummation.

                                       4
<PAGE>

                  (c) When any  adjustment  is required to be made in the number
of shares of Common Stock purchasable hereunder or the Warrant Price pursuant to
this Section 11, the Company  shall  promptly  mail to the Holder a  certificate
setting forth (i) a brief statement of the facts requiring such adjustment, (ii)
the Warrant Price after such  adjustment  and (iii) the kind and amount of stock
or other  securities or property  into which this Warrant  shall be  exercisable
after such adjustment.

         12. Loss, Theft,  Destruction or Mutilation of Warrant. Upon receipt by
the  Company  of  evidence  reasonably  satisfactory  to it of the loss,  theft,
destruction  or  mutilation  of this  Warrant,  and in case of  loss,  theft  or
destruction,  of indemnity or security  reasonably  satisfactory to it, and upon
reimbursement to the Company of all reasonable expenses incidental thereto,  and
upon surrender and cancellation of this Warrant, if mutilated,  the Company will
make and  deliver  a new  warrant  identical  in tenor  and date in lieu of this
Warrant.

         13.  General.  This  Warrant  shall be governed by and  interpreted  in
accordance with the laws of the State of Delaware,  except for its principles of
conflicts of laws.  The headings in this Warrant are for purposes of convenience
and reference only and shall not be deemed to constitute a part hereof.  Neither
this  Warrant  nor  any  term  hereof  may be  changed,  waived,  discharged  or
terminated  orally but rather  only by an  instrument  in writing  signed by the
Company and Holder.  All  notices and other  communications  from the Company to
Holder shall be mailed by prepaid courier or first-class registered or certified
mail,  postage  pre-paid,  to the address furnished to the Company in writing by
the last holder who shall have furnished an address to the Company in writing.

         14.  Amendment and Waiver.  Any provisions of this Warrant  (including,
without limitation, termination of exercisability) may be amended or waived, and
any and all such  amendments  or waivers  shall be binding upon Holder,  only if
approved in writing by the Company and Holder.

         Issued this ________ day of _____________, 2007.

                                       INTRAOP MEDICAL CORPORATION

                                       By:
                                           -------------------------------------
                                          Name: Donald A. Goer
                                          Title: President and
                                                 Chief Executive Officer

                                       5
<PAGE>

                                SUBSCRIPTION FORM

         The undersigned  registered owner of the Warrant which accompanies this
Subscription  Form hereby  irrevocably  (a)  exercises  such  warrant  for,  and
purchases  ______  shares of Common  Stock (the  "Shares")  of  Intraop  Medical
Corporation,  Inc., a Nevada  corporation (the "Company"),  purchasable upon the
exercise of such Warrant, and herewith makes payment therefor,  or (b) exercises
such  Warrant for ______  shares of Intraop  Medical  Corporation  Common  Stock
purchasable  under the Warrant  pursuant to the net exercise  provisions  of the
second  paragraph  of Section  7(a) of such  Warrant all at the price and on the
terms and conditions specified in such Warrant.

         1.01  Authorization.  This  exercise  constitutes  a valid and  legally
binding obligation of the undersigned, enforceable in accordance with its terms.

         1.02   Investment   Representation.   The   undersigned   acknowledges,
represents,  and  warrants  that it (a) has a  preexisting  personal or business
relationship  with the  Company,  and/or by reason of its  business or financial
experience has the capacity to protect its own interests in connection  with the
transaction,  and (b) is an  "accredited  investor"  under  Regulation  D of the
Securities  Act of  1933,  as  amended  (the  "Act").  The  undersigned  further
acknowledges that it is aware that the Shares have not been registered under the
Act,  or  qualified  under any  state's  securities  laws.  The Shares are being
acquired  for  investment  purposes  only  and  not  for  sale or with a view to
distribution of all or any part thereof.

         1.03 Access to Information.  The undersigned  represents that it has or
will have had upon  exercise of the Warrant an  opportunity  to ask questions of
and receive  answers from the Company  regarding the terms and conditions of its
purchase of the Shares  concerning  the  business,  financial  affairs and other
aspects of the  Company,  and it has further had the  opportunity  to obtain any
information (to the extent the Company possesses or can acquire such information
without unreasonable effort or expense) which it deems necessary to evaluate its
investment or to verify the accuracy of  information  otherwise  provided to it.
The  undersigned  acknowledges  that it is not relying upon any person,  firm or
corporation  (other than the Company and its officers and  directors)  in making
its  investment  or  decision  to invest  in the  Company,  and the  undersigned
represents  that it has been  solely  responsible  for its own  "due  diligence"
investigation  of the  Company  and its  management  and  business,  for its own
analysis of the merits and risks of this investment.

         1.04 Investment  Experience.  The  undersigned  represents and warrants
that by reason of its financial and business experience,  it has the capacity to
protect its interests in connection with these transactions.

         1.05 Restricted Securities. The undersigned understands that the Shares
will be characterized as "restricted  securities"  under the federal  securities
laws inasmuch as they are being  acquired from the Company in a transaction  not
involving a public offering, and that under such laws and applicable regulations
such securities may be resold without registration under the Act only in certain
limited   circumstances   and  that  otherwise  such  securities  must  be  held
indefinitely. In this connection, the undersigned represents that it is familiar
with SEC Rule 144, as presently in effect,  and the conditions which must be met
in order for that Rule to be available  for resale of  "restricted  securities,"
and understands the resale limitations imposed by the Act.

<PAGE>

         1.06 Further  Limitations on  Disposition.  Without in any way limiting
the  representations set forth above, the undersigned further agrees not to make
any disposition of all or any portion of the Shares unless and until:

                  (a) There is then in effect a  "Registration  Statement" under
the Act covering  such  proposed  disposition  and such  disposition  is made in
accordance with such Registration  Statement and any applicable  requirements of
state securities laws; or

                  (b) (i) the undersigned shall have notified the Company of the
proposed  disposition  and shall  have  furnished  the  Company  with a detailed
statement of the circumstances surrounding the proposed disposition, and (ii) if
reasonably  requested by the Company,  shall have  furnished the Company with an
opinion of counsel at undersigned's expense (except for dispositions pursuant to
Rule 144 of the Rules and Regulations under the Act which dispositions shall not
so require an opinion of counsel) reasonably  satisfactory to the Company,  that
such  disposition  will not require  registration of the Shares under the Act or
the consent of or permit from appropriate authorities under any applicable state
securities law.

                  (c)  Notwithstanding the provisions of  paragraphs (a) and (b)
above, no such  Registration  Statement or opinion of counsel shall be necessary
for a transfer by the  undersigned  to a constituent  stockholder or constituent
partner (including any constituent of a constituent) of the undersigned,  if the
transferee or transferees  agree in writing to be subject to the terms hereof to
the same extent as if they were the undersigned hereunder.

         2. RESTRICTIONS ON THE TRANSFER OF SECURITIES.

         2.01 Corporate  Securities Law. The Shares shall be transferred only in
compliance with the conditions  specified in Section 1.06,  which conditions are
intended  to  ensure  compliance  with  the  provisions  of the  Act  and  state
securities  laws with  respect  to the  transfer  of any such  securities.  Each
certificate  representing the Shares shall bear at least a legend  substantially
in the following form until such time as the conditions of such legend have been
met:

THE SECURITIES  REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933,  AS AMENDED  ("ACT"),  NOR HAVE THEY BEEN  REGISTERED  OR QUALIFIED
UNDER THE SECURITIES  LAWS OF ANY STATE.  NO TRANSFER OF SUCH SECURITIES WILL BE
PERMITTED UNLESS A REGISTRATION  STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH
TRANSFER,  THE TRANSFER IS MADE IN ACCORDANCE  WITH RULE 144 UNDER THE ACT OR AS
OTHERWISE PERMITTED BY THE COMPANY, OR IN THE OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY AND AT HOLDER'S EXPENSE,  REGISTRATION  UNDER THE ACT IS UNNECESSARY
IN ORDER FOR SUCH  TRANSFER  TO COMPLY  WITH THE ACT AND WITH  APPLICABLE  STATE
SECURITIES LAWS.

                                       2
<PAGE>

The  Company  shall,  within  ten (10) days of the  request  of any  holder of a
certificate  bearing the foregoing legend and the surrender of such certificate,
issue a new stock certificate in the name of the transferee  provided that there
has been compliance with the provisions of subsection 1.06 above.

         2.02  Additional  Legends.  The Company may also impose any  additional
legend required under  applicable  federal or state securities laws or permitted
under its bylaws and shall be  entitled  to issue stop  transfer  notices on its
books with respect to any securities  purchased  hereunder  until the conditions
set forth in the applicable legends have been met.

         Dated:
               ----------------

                                   --------------------------------------------
                                   (Signature of Registered Owner)

                                   --------------------------------------------
                                   (Name)

                                   --------------------------------------------
                                   (Street Address)

                                   --------------------------------------------
                                   (City, State, Zip Code)

                                   --------------------------------------------
                                   Social Security or Tax Identification Number

         If the number of Shares issuable upon this exercise shall not be all of
the Shares which the  undersigned is entitled to purchase in accordance with the
enclosed  Warrant,  the undersigned  requests that a new warrant  evidencing the
right to purchase  the Shares not issuable  pursuant to the  exercise  evidenced
hereby be issued in the name of and delivered to:

--------------------------------------------------------------------------------
                         (Please print name and address)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Date:                              Name of Holder:
     -----------------
                                   (Print)
                                          --------------------------------------
                                   (By)
                                       -----------------------------------------
                                   (Name:)
                                   (Title:)

                                   (Signature  must  conform in all respects to
                                   name of holder as specified on the face of
                                   the Warrant)

                                       3
<PAGE>

                               FORM OF ASSIGNMENT
                               ------------------

                 (To be signed only upon assignment of Warrant)

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto:

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

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

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

          (Name and address of assignee must be printed or typewritten)

___________ shares of Intraop Medical Corporation Common Stock purchasable under
the   within   Warrant,   hereby   irrevocably   constituting   and   appointing
______________________  Attorney  to transfer  said  Warrant on the books of the
Company, with full power of substitution in the premises.

         Dated:
                ------------

                                       --------------------------------
                                       (Signature of Registered Owner)EXHIBIT 10.34

                   COMMON STOCK AND WARRANT PURCHASE AGREEMENT
                   -------------------------------------------

         THIS COMMON STOCK AND WARRANT PURCHASE AGREEMENT  ("Agreement") is made
as of the 17th day of August, 2007 by and among INTRAOP MEDICAL  CORPORATION,  a
Nevada  corporation  (the  "Company"),  and the other  Persons  set forth on the
Schedule of Purchasers  attached hereto (each an "Investor" and collectively the
"Investors").

                                    Recitals

                  A. The Company and the Investors are executing and  delivering
this  Agreement in reliance  upon the  exemption  from  securities  registration
afforded by the provisions of Regulation D  ("Regulation  D"), as promulgated by
the Securities and Exchange  Commission  (the "SEC") under the Securities Act of
1933, as amended,  and the rules and  regulations  promulgated  thereunder  (the
"Securities Act");

                  B. The Investors  wish to purchase  from the Company,  and the
Company  wishes to sell and issue to the  Investors,  at the First  Closing  (as
defined  below) and upon the terms and  subject to the  conditions  set forth in
this Agreement,  an aggregate of 42,081,556 shares (the "Initial Shares") of the
Company's  common stock,  par value $0.001 per share (the "Common  Stock"),  and
warrants to purchase an  aggregate of  165,589,736  shares of Common  Stock,  in
substantially the form of Appendix A (the "Investor Warrants"), for an aggregate
purchase price of $3,766,524.48 (the "Initial Purchase Price");

                  C. The Investors  wish to purchase  from the Company,  and the
Company  wishes to sell and issue to the  Investors,  at the Second  Closing (as
defined  below) and upon the terms and  subject to the  conditions  set forth in
this Agreement,  an aggregate of 20,418,444 shares (the "Additional Shares" and,
together with the Initial Shares, the "Shares") of Common Stock for an aggregate
purchase price of $1,633,475.52 (the "Additional Purchase Price");

                  D.  Contemporaneous with the First Closing, the parties hereto
will  execute  and  deliver a Rights  Agreement,  in  substantially  the form of
Appendix B (the "Rights Agreement"), pursuant to which the Company will agree to
provide certain  registration rights under the Securities Act, certain rights of
participation and certain  covenants  regarding the nomination of candidates for
election to the board of directors of the Company (the "Board"); and

                  E. This  Agreement  shall be binding  upon the Company and the
Investors only upon delivery of the  signatures  pages hereto by the Company and
the Investors.

<PAGE>

                                    Agreement

                  In  consideration  of the mutual  promises made herein and for
other good and valuable consideration,  the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

         1. Definitions.  In addition to those terms defined above and elsewhere
in this Agreement, for the purposes of this Agreement, the following terms shall
have the meanings set forth below:

                  "Affiliate"  means,  with  respect  to any  Person,  any other
Person which directly or indirectly through one or more intermediaries controls,
is controlled by, or is under common control with, such Person.

                  "Business  Day" means a day,  other than a Saturday or Sunday,
on which  banks  in New York  City  are  open  for the  general  transaction  of
business.

                  "Company Warrant Repricing Agreement" means the agreement,  in
substantially  the form of Appendix C, dated the First Closing Date by and among
the  Company  and the  holders of the  Company  Warrants  pursuant  to which the
exercise price of such warrants is adjusted to $0.08 per share of Common Stock.

                  "Company  Warrants"  means those  warrants held by the holders
listed on Exhibit A to the Company Warrant Repricing Agreement.

                  "Confidential  Information" means trade secrets,  confidential
information  and  know-how  (including  but  not  limited  to  ideas,  formulae,
compositions,  processes,  procedures and  techniques,  research and development
information,  performance  specifications,   support  documentation,   drawings,
specifications,  designs,  business and marketing  plans, and supplier lists and
related information).

                  "Debenture  Conversion  and Purchase and Warrant  Cancellation
Agreement" means the agreement,  in substantially  the form of Appendix D, dated
the First Closing Date by and among the Company, the Investors and the Debenture
Holders pursuant to which (i) the Debenture  Holders will agree to convert those
certain 7%  convertible  debentures  dated  August 31,  2005,  October 25, 2005,
October  31, 2005 and  November 4, 2005 set forth on Exhibit A thereof  into the
Debenture  Shares in complete  satisfaction  of all  outstanding  principal  and
interest  on  such  debentures,  (ii)  the  Investors  will  agree  to  purchase
10,178,571  shares of Common  Stock held by the  Debenture  Holders on the First
Closing Date for an aggregate  purchase price of $1,280,000,  (iii) the Existing
Investors  will agree to terminate an  aggregate of 9,576,531  warrants  held by
them as of the First Closing Date and set forth on Exhibit C thereof in exchange
for the Debenture  Warrants and (iv) the holders of the Debenture  Warrants will
agree to exercise such warrants in full at the Second Closing.

                                       2
<PAGE>

                  "Debenture  Holders"  means  holders  of  the  7%  convertible
debentures  dated August 31, 2005,  October 25, 2005 and November 4, 2005 issued
by the Company set forth on Exhibit A to the Debenture  Conversion  and Purchase
and Warrant Cancellation Agreement.

                  "Debenture  Shares" means an aggregate of 20,178,571 shares of
the Company's Common Stock issuable upon conversion of the Debentures.

                  "Debenture   Warrants"  means  the  warrants  to  purchase  an
aggregate of 21,656,663  shares of Common Stock issued to the Debenture  Holders
pursuant to the  Debenture  Conversion  and  Purchase  and Warrant  Cancellation
Agreement.

                  "Equity  Incentive  Plan"  means  the  Company's  2005  Equity
Incentive Plan.

                  "Exchange Act" means the  Securities  Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

                  "Existing  Investors"  means the January  Noteholders and  the
Debenture Holders.

                  "Hultquist  Warrant" means the warrant to  purchase  9,530,732
shares issued to Hultquist Capital LLC.

                  "Insider Indebtedness" means certain indebtedness and payables
of the  Company set forth on Exhibit A to the  Insider  Indebtedness  Conversion
Agreement.

                  "Insider   Indebtedness   Conversion   Agreement"   means  the
agreement, in substantially the form of Appendix E, dated the First Closing Date
by and among the Company and the Insiders  pursuant to which the  Insiders  will
agree to retire the Insider Indebtedness in exchange for the Insider Warrants in
complete  satisfaction  of  all  outstanding  principal  and  interest  on  such
indebtedness.

                  "Insider  Warrants" means the warrants to purchase  19,933,388
shares  of  Common  Stock  issued  to  the  Insiders  pursuant  to  the  Insider
Indebtedness Conversion Agreement.

                  "Insiders"  means the  holders  of  certain  indebtedness  and
payables of the  Company as set forth on Exhibit A to the  Insider  Indebtedness
Conversion Agreement.

                  "Intellectual  Property"  means  all  of  the  following:  (i)
patents, patent applications,  patent disclosures and inventions (whether or not
patentable  and whether or not reduced to practice);  (ii)  trademarks,  service
marks, trade dress, trade names,  corporate names,  logos,  slogans and Internet
domain names,  together with all goodwill associated with each of the foregoing;
(iii) copyrights and copyrightable  works; and (iv) registrations,  applications
and renewals for any of the foregoing.

                  "January   Bridge  Note   Conversion   and  Warrant   Purchase
Agreement" means the agreement,  in substantially  the form of Appendix F, dated
the First  Closing  Date by and among the Company  and the  January  Noteholders
pursuant to which (i) the January Noteholders will agree to retire those certain
debentures dated January 10, 2007 set forth on Exhibit A thereto in exchange for
an  aggregate  payment of  $400,000  and the  January  Bridge  Note  Warrants in
complete  satisfaction  of  all  outstanding  principal  and  interest  on  such
debentures.

                                       3
<PAGE>

                  "January  Bridge Note Warrants" means the warrants to purchase
5,000,000 shares of Common Stock issued to the January  Noteholders  pursuant to
the January Bridge Note Conversion Agreement.

                  "January  Noteholders" means the holders of certain debentures
dated  January  10,  2007 set forth on  Exhibit  A to the  January  Bridge  Note
Conversion and Warrant Purchase Agreement.

                  "Knowledge"  means the actual  knowledge  of the  officers and
directors of the  Company,  provided  that such persons  shall have made due and
diligent  inquiry of all relevant  employees of the Company whom such  executive
officers and directors should reasonably  believe would have actual knowledge of
the matters represented.

                  "Material Adverse Effect" means an event, change or occurrence
that, individually or together with any other event, change or occurrence, has a
material  adverse  impact  on  the  financial  position,  business,  results  of
operations or prospects of the Company and its Subsidiaries, taken as a whole.

                  "MCR Capital Warrant" means the warrant to purchase  1,250,000
shares of Common Stock issued to MCR Capital Corp.

                  "Nasdaq" means The Nasdaq Stock Market, Inc.

                  "Officer and Director  Warrant  Purchase  Agreement" means the
agreement, in substantially the form of Appendix G, dated the First Closing Date
by and among the Company and the  Officers and  Directors  pursuant to which the
Officers and  Directors  will agree to  purchase,  and the Company will agree to
issue,  the Officer and Director  Warrants for an  aggregate  purchase  price of
$92,000.

                  "Officer and Director Warrants" means the warrants to purchase
1,150,000  shares of Common Stock issued to the Officers and Directors  pursuant
to the Officer and Director Warrant Purchase Agreement.

                  "Officers and Directors " means  Keith  Jacobsen,  Stephen  L.
Kessler, John Matheu, Donald A. Goer and Thomas Cook.

                  "Other  Warrants"  means (i) the January Bridge Note Warrants,
(ii) the Debenture  Warrants,  (iii) the Insider Warrants,  (iv) the Officer and
Director  Warrants,  (v) the Hultquist Warrant and (vi) the MCR Capital Warrant,
each of which shall be substantially in the form of Appendix H.

                                       4
<PAGE>

                  "Permitted   Liens"  means  (i)  mechanics',   carriers',   or
workmen's,  repairmen's  or similar  liens  arising or incurred in the  ordinary
course of business,  (ii) liens for taxes,  assessments  and other  governmental
charges  that are not due and  payable or which may  hereafter  be paid  without
penalty or which are being  contested in good faith by appropriate  proceedings,
and (iii) other  imperfections  of title or  encumbrances,  if any, that do not,
individually  or in the  aggregate,  materially  impair  the use or value of the
property to which they relate.

                  "Person"  means  an  individual,   corporation,   partnership,
limited  liability  company,  trust,  business trust,  association,  joint stock
company,  joint  venture,  sole  proprietorship,   unincorporated  organization,
governmental  authority  or any other  form of entity  not  specifically  listed
herein.

                  "Registration  Statement"  has the  meaning  set  forth in the
Rights Agreement.

                  "Securities"  means the Shares,  the Investor Warrants and the
Warrant Shares.

                  "Transaction  Documents"  means (i) this  Agreement,  (ii) the
Rights  Agreement,  (iii) the Investor  Warrants,  (iv) the January  Bridge Note
Conversion  and Warrant  Purchase  Agreement,  (v) the Debenture  Conversion and
Purchase  and Warrant  Cancellation  Agreement,  (vi) the  Insider  Indebtedness
Conversion Agreement, (vii) the Officer and Director Warrant Purchase Agreement,
(viii) the Company Warrant Repricing Agreement and (ix) the Other Warrants.

                  "Warrant Shares" mean the shares of Common Stock issuable upon
exercise of the Investor Warrants.

         2. Purchase and Sale of the Shares and the Investor Warrants.

                  2.1 Initial Shares and Investor  Warrants.  Upon the terms and
subject to the  conditions  set forth in this  Agreement,  at the First Closing,
each of the  Investors  shall,  severally  and not  jointly,  purchase,  and the
Company  shall  sell and issue to the  Investors,  the  Initial  Shares  and the
Investor  Warrants  in the  respective  amounts and at the  respective  purchase
prices set forth on the Schedule of Purchasers attached hereto (the "Schedule of
Purchasers").

                  2.2  Additional  Shares.  Upon the  terms and  subject  to the
conditions  set forth in this  Agreement,  at the  Second  Closing,  each of the
Investors shall, severally and not jointly, purchase, and the Company shall sell
and issue to the Investors,  the Additional Shares in the respective amounts and
at the respective purchase prices set forth on the Schedule of Purchasers.

         3. Closings.

                  3.1 First Closing. The purchase and sale of the Initial Shares
and the Investor  Warrants  pursuant to Section 2.1 (the "First  Closing") shall
take  place at the  offices  of Cooley  Godward  Kronish  LLP,  380  Interlocken
Crescent,  Suite 900, Broomfield,  Colorado 80021 ("Cooley") on the date hereof,
or at  such  other  location  and on such  other  date  as the  Company  and the
Investors  shall  mutually  agree (such date is  hereinafter  referred to as the
"First Closing Date").

                                       5
<PAGE>

                  3.2 Second  Closing.  The purchase and sale of the  Additional
Shares  pursuant to Section 2.2 (the "Second  Closing"  and,  together  with the
First Closing,  the "Closings") shall take place at the offices at Cooley at any
time on or before the seventh day following the  satisfaction  of the conditions
set forth in Section 6.2  hereof,  or at such other  location  and on such other
date as the  Company  and the  Investors  shall  mutually  agree  (such  date is
hereinafter referred to as the "Second Closing Date").

         4.  Representations  and Warranties of the Company.  The Company hereby
represents  and  warrants  to the  Investors  that,  except  as set forth in the
schedules delivered herewith (collectively, the "Disclosure Schedules"):

                  4.1      Organization, Good Standing and Qualification.

                           (a) The  Company  is a  corporation  duly  organized,
validly  existing and in good standing under the laws of the State of Nevada and
has all requisite  corporate power and authority to carry on its business as now
conducted  and to own  its  properties.  The  Company  is duly  qualified  to do
business as a foreign  corporation and is in good standing in each  jurisdiction
in which the  conduct of its  business or its  ownership  or leasing of property
makes such  qualification  necessary,  except  where the  failure to so qualify,
individually or in the aggregate,  would not have a Material Adverse Effect.  To
the Company's  Knowledge,  no proceeding has been instituted in any jurisdiction
revoking,  limiting or curtailing or seeking to revoke,  limit or curtail,  such
power and authority or qualification.

                           (b)  Each   subsidiary   of  the   Company   (each  a
"Subsidiary"  and  collectively  the   "Subsidiaries")  is  a  corporation  duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of its
jurisdiction  of  incorporation  and  has  all  requisite  corporate  power  and
authority to carry on its business as now conducted  and to own its  properties.
Each Subsidiary is duly qualified to do business as a foreign corporation and is
in good  standing in each  jurisdiction  in which the conduct of its business or
its ownership or leasing of property makes such qualification necessary,  except
where the failure to so qualify,  individually  or in the  aggregate,  would not
have a Material Adverse Effect.  To the Company's  Knowledge,  no proceeding has
been instituted in any jurisdiction revoking,  limiting or curtailing or seeking
to revoke, limit or curtail, such power and authority or qualification.

                  4.2  Authorization.  The Company has full corporate  power and
authority  and has taken all  requisite  action on the part of the Company,  its
officers,  directors  and  stockholders  necessary  for (i)  the  authorization,
execution and delivery of the Transaction Documents to which it is a party, (ii)
the authorization of the performance of all obligations of the Company hereunder
or thereunder and (iii) the  authorization,  issuance,  sale and delivery of the
Securities.  The  Transaction  Documents to which it is a party  constitute  the
legal,  valid and binding  obligations of the Company,  enforceable  against the
Company  in  accordance  with their  respective  terms,  subject to  bankruptcy,
insolvency, fraudulent transfer, reorganization,  moratorium and similar laws of
general applicability relating to or affecting creditors' rights generally.

                                       6
<PAGE>

                  4.3      Capitalization.

                           (a) Schedule 4.3 sets forth as of the date hereof (a)
the authorized capital stock of the Company; (b) the number of shares of capital
stock  issued  and  outstanding;  (c) the  number  of shares  of  capital  stock
available for issuance pursuant to the Company's stock plans; and (d) the number
of shares of capital  stock  issuable  and  reserved  for  issuance  pursuant to
securities  exercisable  for, or convertible into or exchangeable for any shares
of capital stock of the Company.  Schedule 4.3 also  identifies  the warrants to
purchase  shares  of Common  Stock  and  indebtedness  of the  Company  that are
outstanding as of the date hereof and that will remain  outstanding  immediately
following  the First  Closing and the  application  of the proceeds  received in
connection therewith.  All of the issued and outstanding shares of the Company's
capital stock have been duly  authorized  and validly issued and are fully paid,
nonassessable and free of preemptive rights. No Person is entitled to preemptive
or similar statutory or contractual rights with respect to any securities of the
Company. There are no outstanding warrants,  options,  convertible securities or
other rights, agreements or arrangements under which the Company is obligated to
issue equity securities.  Except as contemplated under this Agreement, there are
no contracts,  commitments,  understandings or arrangements by which the Company
is bound to issue additional  shares of capital stock of the Company or options,
securities  or rights  convertible  into shares of capital stock of the Company.
Except as provided in the Rights  Agreement,  no Person has the right to require
the Company to register any securities of the Company under the Securities  Act,
whether on a demand basis or in connection  with the  registration of securities
of the Company for its own account or for the account of any other  Person.  The
issue and sale of the  Securities  will not result in the right of any holder of
Company  securities to adjust the exercise,  conversion or exchange  price under
such securities.

                           (b) The Company owns all of the  outstanding  capital
stock of each Subsidiary free from liens,  encumbrances and defects.  All of the
issued and  outstanding  shares of capital stock of each  Subsidiary are validly
issued and are fully paid,  non-assessable  and free of  preemptive  rights.  No
Person is entitled to preemptive or similar statutory or contractual rights with
respect to any securities of any Subsidiary.  There are no outstanding warrants,
options,  convertible  securities  or other rights,  agreements or  arrangements
under which (i) any  Subsidiary is obligated to issue  additional  shares of its
capital  stock or  options,  securities  or rights  convertible  into  shares of
capital  stock of such  Subsidiary  or (ii) the Company is  obligated to sell or
otherwise dispose of shares of any Subsidiary's capital stock held by it.

                  4.4 Valid Issuance.  The Securities have been duly and validly
authorized. The Shares, when issued and paid for pursuant to this Agreement (and
subject,  in the case of the  Additional  Shares,  to  stockholder  approval and
filing of an  amendment  to the  Company's  Amended  and  Restated  Articles  of
Incorporation  authorizing  an increase in the number of shares of Common  Stock
issuable  by  the  Company  to  500,000,000   (as  adjusted  for  stock  splits,
combinations or other similar transactions)), will be validly issued, fully paid
and nonassessable, and will be free of encumbrances and restrictions (other than
those created by the Investors),  except for  restrictions on transfer set forth
in the  Transaction  Documents or imposed by  applicable  securities  laws.  The
Warrant Shares have been reserved for issuance,  subject to stockholder approval
and filing of an amendment  to the  Company's  Amended and Restated  Articles of
Incorporation  authorizing  an increase in the number of shares of Common  Stock
issuable  by  the  Company  to  500,000,000   (as  adjusted  for  stock  splits,
combinations or other similar transactions),  and, upon issuance pursuant to the
Warrants, will be validly issued, fully paid and nonassessable.

                                       7
<PAGE>

                  4.5 Consents.  The execution,  delivery and performance by the
Company  of the  Transaction  Documents  to which it is a party  and the  offer,
issuance  and sale of the  Securities  requires no consent  of,  action by or in
respect of, or filing with, any Person,  governmental  body, agency, or official
other than filings that have been made pursuant to applicable  state  securities
laws and post-sale  filings pursuant to applicable state and federal  securities
laws which the Company undertakes to file within the applicable time periods.

                  4.6 Delivery of SEC Filings. The Company has made available to
the  Investors,  through the EDGAR system,  true and complete  copies of (a) the
Company's  Annual Report on Form 10-KSB filed with the SEC on December 22, 2006,
including all exhibits thereto and documents  incorporated by reference therein,
(b) the  Company's  Quarterly  Reports  on Form  10-QSB for the  quarters  ended
December  31,  2006 and March 31,  2007,  filed with the SEC,  respectively,  on
February 14, 2007 and May 14, 2007, including all exhibits thereto and documents
incorporated by reference  therein and (c) the Company's Current Reports on Form
8-K filed with the SEC on October 6, 2006,  November 2, 2006, November 15, 2006,
January 10, 2007,  February 1, 2007,  February 2, 2007, March 20, 2007 and April
13, 2007, including all exhibits thereto and documents incorporated by reference
therein  (together,  the "SEC  Filings").  The SEC Filings are the only periodic
filings  required of the Company pursuant to the Exchange Act from September 30,
2006, through the date hereof.

                  4.7 Use of  Proceeds.  The  net  proceeds  of the  sale of the
Shares and the  Investor  Warrants  hereunder  shall be used by the  Company for
general working capital  purposes,  including,  but not limited to, the purposes
set forth on Schedule 4.3.

                  4.8      No Material Adverse Change.  Since  March  31,  2007,
there has not been:

                           (a)   any   change   in  the   consolidated   assets,
liabilities,  financial  condition  or  operating  results of the Company or any
Subsidiary  from that  reflected  in the  financial  statements  included in the
Company's  Quarterly Report on Form 10-QSB for the quarter ended March 31, 2007,
except for  changes in the  ordinary  course of  business  which would not have,
individually or in the aggregate, a Material Adverse Effect;

                           (b) any  declaration  or payment of any dividend,  or
any authorization or payment of any distribution, on any of the capital stock of
the Company or any Subsidiary, or any redemption or repurchase of any securities
of the Company or any Subsidiary (other than in connection with a termination of
employment);

                           (c) any material  damage,  destruction or loss to any
assets or properties of the Company or any Subsidiary;

                                       8
<PAGE>

                           (d)  any  waiver,  not  in  the  ordinary  course  of
business,  by the Company or any Subsidiary of a material right or of a material
debt owed to it;

                           (e)  any  change  or  amendment  to the  Articles  of
Incorporation or similar organizational  documents, as applicable,  or Bylaws of
the Company or any Subsidiary, or change to any material contract or arrangement
by which  the  Company  or any  Subsidiary  is bound or to which  its  assets or
properties is subject;

                           (f) any material  labor  difficulties  or labor union
organizing   activities  with  respect  to  employees  of  the  Company  or  any
Subsidiary;

                           (g) any  transaction  entered  into by the Company or
any Subsidiary other than in the ordinary course of business;

                           (h) the loss of the services of any key employee,  or
material  change in the  composition  or duties of the senior  management of the
Company or any Subsidiary; or

                           (i) any other  event or  condition  of any  character
that has had or would reasonably be expected to have a Material Adverse Effect.

                  4.9 SEC  Filings.  At the  time  of  filing  thereof,  the SEC
Filings  complied as to form in all material  respects with the  requirements of
the Exchange Act and did not contain any untrue  statement of a material fact or
omit to state any material fact necessary in order to make the  statements  made
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading.

                  4.10 No Conflict,  Breach,  Violation or Default.  Neither the
execution,  delivery and performance by the Company of the Transaction Documents
to  which  it is a  party  nor  the  consummation  of any  of  the  transactions
contemplated hereby (including, without limitation, the issuance and sale of the
Securities in conformance with the Transaction  Documents) will conflict with or
result in  violation  of any of the  terms and  provisions  of the  Articles  of
Incorporation or similar organizational  documents, as applicable,  or Bylaws of
the Company or any Subsidiary, both as in effect on the date hereof or will give
rise to the right to terminate or  accelerate  the due date of any payment under
or  conflict  with or  result  in a  breach  of any  term or  provision  of,  or
constitute  a default  (or any event  which with notice or lapse of time or both
would  constitute  a default)  under,  or require any consent or waiver under or
result in the execution or imposition of any lien,  charge or  encumbrance  upon
the properties or assets of the Company or any Subsidiary  pursuant to the terms
of any indenture,  mortgage,  deed of trust or other  agreement or instrument to
which the  Company or any  Subsidiary  is a party or by which the Company or any
Subsidiary  is bound or to which any of its assets or  properties  is subject or
any license, permit, statute, rule, regulation, judgment, decree or order of any
governmental  agency  or  body  or  any  court,  domestic  or  foreign,   having
jurisdiction  over  the  Company  or any  Subsidiary  or any  of its  assets  or
properties,  other  than a  conflict,  breach or  default  that would not have a
Material Adverse Effect.

                                       9
<PAGE>

                  4.11 Tax Matters.  Each of the Company and each Subsidiary has
timely prepared and filed all tax returns required to have been filed by it with
all appropriate governmental agencies and timely paid all taxes shown thereon or
otherwise owed by it, except as would not have a Material  Adverse  Effect.  The
charges,  accruals and reserves on the books of the Company and each  Subsidiary
in  respect  of taxes  for all  fiscal  periods  are  adequate  in all  material
respects,  and there are no material unpaid  assessments  against the Company or
any Subsidiary.  All taxes and other  assessments and levies that the Company or
any Subsidiary are required to withhold or to collect for payment have been duly
withheld and collected and paid to the proper governmental entity or third party
when  due.  There  are no tax  liens or  claims  pending  or,  to the  Company's
Knowledge,  threatened  against  the Company or any  Subsidiary  or any of their
respective  assets or property,  other than  Permitted  Liens.  There are no tax
audits or investigations  pending, which if adversely determined would result in
a Material  Adverse Effect.  There are no outstanding tax sharing  agreements or
other such  arrangements  between  the Company or any  Subsidiary  and any other
Person.  Neither the Company nor any  Subsidiary  has any deferred  compensation
arrangements or has paid (or is required to pay) any deferred compensation which
would be subject to Section 409A of the Internal Revenue Code.

                  4.12  Title  to  Properties.  Each  of the  Company  and  each
Subsidiary has good and  marketable  title to all properties and assets owned by
it, in each case free from liens, encumbrances and defects, other than Permitted
Liens. The Company and each Subsidiary hold any leased real or personal property
under valid and enforceable leases.  Neither the Company nor any Subsidiary owns
any real property.

                  4.13  Certificates,  Authorities  and  Permits.  Each  of  the
Company  and  each  Subsidiary  possesses  adequate   certificates,   approvals,
authorities or permits  ("Permits")  issued by  governmental  agencies or bodies
necessary to own,  lease and license its assets and  properties  and conduct the
business  now  operated  by it,  all of which are  valid  and in full  force and
effect, except where the lack of such Permits, individually or in the aggregate,
would  not  have a  Material  Adverse  Effect.  Each  of the  Company  and  each
Subsidiary  has  performed  in  all  material   respects  all  of  its  material
obligations  with respect to such Permits and no event has occurred that allows,
or after  notice  or  lapse of time,  would  allow,  revocation  or  termination
thereof.  Neither the Company nor any Subsidiary has received any written notice
of  proceedings   relating  to  the  revocation  or  modification  of  any  such
certificate, authority or permit that, if determined adversely to the Company or
such  Subsidiary,  would,  individually  or in the  aggregate,  have a  Material
Adverse Effect.

                  4.14     Labor Matters.

                           (a) Neither the Company nor any Subsidiary is a party
to or bound by any collective bargaining agreement.  Neither the Company nor any
Subsidiary has violated in any material respect any laws, regulations, orders or
contract terms,  affecting the collective bargaining rights of employees,  labor
organizations  or  any  laws,   regulations  or  orders   affecting   employment
discrimination,  equal  opportunity  employment  or employees'  health,  safety,
welfare, wages and hours.

                                       10
<PAGE>

                           (b) (i) There are no labor disputes  existing,  or to
the  Company's  Knowledge,   threatened,  involving  strikes,  slow-downs,  work
stoppages, job actions, disputes, lockouts or any other disruptions of or by the
employees  of the  Company or any  Subsidiary,  (ii)  there are no unfair  labor
practices or  petitions  for election  pending or, to the  Company's  Knowledge,
threatened before the National Labor Relations Board or any other federal, state
or local  labor  commission  relating  to the  employees  of the  Company or any
Subsidiary,  (iii) no demand for recognition or certification heretofore made by
any labor  organization  or group of  employees  is pending  with respect to the
Company  or any  Subsidiary  and (iv) to the  Company's  Knowledge,  each of the
Company and each  Subsidiary  enjoys good labor and employee  relations with its
employees.

                           (c) Each of the  Company  and each  Subsidiary  is in
compliance in all material  respects with applicable laws respecting  employment
(including  laws  relating  to   classification  of  employees  and  independent
contractors) and employment practices, terms and conditions of employment, wages
and hours, and immigration and naturalization. No claims are pending against the
Company or any Subsidiary before the Equal Employment  Opportunity Commission or
any other  administrative  body or in any court asserting any violation of Title
VII of the Civil  Rights Act of 1964,  the Age  Discrimination  Act of 1967,  42
U.S.C. ss.ss. 1981 or 1983 or any other federal,  state or local law, statute or
ordinance barring discrimination in employment.

                           (d) Neither the Company nor any Subsidiary is a party
to, or bound by, any employment or other contract or agreement that contains any
severance,  termination  pay or  change  of  control  liability  or  obligation,
including,  without  limitation,  any "excess parachute  payment," as defined in
Section 280G(b) of the Internal Revenue Code of 1986, as amended.

                  4.15     Intellectual Property.

                           (a) All Intellectual Property of the Company is valid
and  enforceable.  No Intellectual  Property owned or licensed by the Company or
any Subsidiary  that is necessary for the conduct of the business of the Company
and the  Subsidiaries  as currently  conducted or as proposed to be conducted as
described  in the SEC  Filings  is  involved  in any  cancellation,  dispute  or
litigation,  and, to the Company's Knowledge,  no such action is threatened.  No
issued  patent  owned  by the  Company  or any  Subsidiary  is  involved  in any
interference, reissue, re-examination or opposition proceeding.

                           (b) All of the in-bound  licenses and sublicenses and
consent,  royalty or other agreements concerning  Intellectual Property that are
necessary for the conduct of the business of the Company and the Subsidiaries as
currently  conducted  and as proposed to be  conducted  as  described in the SEC
Filings to which the Company or any  Subsidiary is a party (other than generally
commercially available, non-custom,  off-the-shelf software application programs
having  a  retail   acquisition   price  of  less  than   $50,000  per  license)
(collectively,  "In-Bound License Agreements") are valid and binding obligations
on the  Company  or  such  Subsidiary,  as  applicable,  and,  to the  Company's
Knowledge,  the other parties  thereto,  enforceable  in  accordance  with their
terms,  except  to  the  extent  that  enforcement  thereof  may be  limited  by
bankruptcy,  insolvency,  reorganization,  moratorium,  fraudulent conveyance or
other similar laws affecting the enforcement of creditors' rights generally, and
neither  the  Company nor any  Subsidiary  is in  material  breach of any of its
obligations under any such In-Bound License Agreements.

                                       11
<PAGE>

                           (c) Each of the Company and each  Subsidiary  owns or
has the valid right to use all of the  Intellectual  Property  that is necessary
for the conduct of its  business as  currently  conducted  and as proposed to be
conducted as described in the SEC Filings and for the ownership, maintenance and
operation of the Company's  properties and assets,  free and clear of all liens,
encumbrances, adverse claims (in each case, other than Permitted Liens) or, with
respect  to  Intellectual  Property  owned  by the  Company  or any  Subsidiary,
obligations to license such  Intellectual  Property,  other than licenses of the
Intellectual  Property owned by the Company or such  Subsidiary that are entered
into in the ordinary course of its business. To the Company's Knowledge, each of
the Company and each  Subsidiary  has a valid and  enforceable  right to use all
third party Intellectual Property and Confidential  Information used or held for
use in its business.

                           (d) The  conduct of the  business  of the Company and
the  Subsidiaries  as  currently  conducted  or as proposed to be  conducted  as
described  in the SEC  Filings,  the  use or  exploitation  of any  Intellectual
Property owned by the Company or any Subsidiary,  or to the Company's Knowledge,
the use or exploitation of any Intellectual  Property licensed by the Company or
any Subsidiary does not infringe,  misappropriate or otherwise materially impair
or conflict with (collectively,  "Infringe") any Intellectual Property rights of
any third  party  and the  Intellectual  Property  owned by the  Company  or any
Subsidiary which is necessary for the conduct of the business of the Company and
the  Subsidiaries  as currently  conducted or as proposed to be conducted as set
forth in the SEC Filings is not being Infringed by any third party.  There is no
litigation,  court order,  claim or assertion  pending or outstanding or, to the
Company's Knowledge, threatened, that seeks to limit or challenge the ownership,
use, validity or  enforceability of any Intellectual  Property owned or licensed
by the Company or any  Subsidiary or their  respective  use of any  Intellectual
Property owned by a third party.

                           (e) The consummation of the transactions contemplated
hereby and by the other  Transaction  Documents will not result in the (i) loss,
material  impairment  of or  material  restriction  on any  of the  Intellectual
Property or  Confidential  Information  owned by the  Company or any  Subsidiary
which is necessary for the conduct of its business as currently  conducted or as
proposed to be conducted as set forth in the SEC Filings or (ii) material breach
of any In-Bound License Agreement.

                           (f) Each of the Company and each Subsidiary has taken
reasonable steps to protect its respective  rights in its Intellectual  Property
and Confidential Information. Each employee and consultant who has access to the
Confidential  Information  of the Company or any  Subsidiary  necessary  for the
conduct of its  business as  currently  conducted  has  executed an agreement to
maintain the confidentiality of such Confidential Information.  To the Company's
Knowledge, and except pursuant to non-disclosure agreements entered into between
the  Company  or a  Subsidiary  and  third  parties  in the  ordinary  course of
business,  there  has  been  no  disclosure  of  the  Intellectual  Property  or
Confidential Information of the Company or any Subsidiary to any third party. To
the Company's  Knowledge,  there have been no misappropriations or infringements
by any Person of any  Intellectual  Property used in the conduct or operation of
the business of the Company or any Subsidiary.

                                       12
<PAGE>

                  4.16  Environmental  Matters.  Neither  the  Company  nor  any
Subsidiary is in violation of any statute, rule,  regulation,  decision or order
of any governmental agency or body or any court,  domestic or foreign,  relating
to the use,  disposal or release of hazardous or toxic substances or relating to
the protection or restoration of the  environment or human exposure to hazardous
or toxic substances  (collectively,  "Environmental  Laws"). Neither the Company
nor any  Subsidiary  owns or operates any real  property  contaminated  with any
substance that is subject to any Environmental  Laws, is liable for any off-site
disposal or contamination  pursuant to any Environmental  Laws, or is subject to
any claim relating to any  Environmental  Laws, which violation,  contamination,
liability or claim would reasonably be expected to have,  individually or in the
aggregate,  a Material Adverse Effect.  There is no pending or, to the Company's
Knowledge, threatened investigation that might lead to such a claim.

                  4.17  Litigation.  There are no pending  or, to the  Company's
Knowledge,  threatened actions, suits, proceedings,  inquiries or investigations
against or affecting the Company or any Subsidiary or any of their properties or
any of the  Company's  or any  Subsidiary's  officers  and  directors  in  their
capacities as such.

                  4.18 Financial  Statements.  The financial statements included
in each SEC Filing  present  fairly,  in all material  respects,  the  financial
position of the Company as of the dates shown and its results of operations  and
cash  flows for the  periods  shown,  and such  financial  statements  have been
prepared  in  conformity  with  United  States  generally  accepted   accounting
principles  applied on a consistent  basis ("GAAP")  (except as may be disclosed
therein  or in the  notes  thereto,  and,  in the  case of  quarterly  financial
statements,  as permitted by Form 10-QSB under the Exchange Act).  Except as set
forth in the  financial  statements  of the Company  included in the SEC Filings
filed prior to the date hereof,  the Company has not  incurred any  liabilities,
contingent  or  otherwise,  except  those  incurred  in the  ordinary  course of
business,  consistent  with  past  practices  since  the date of such  financial
statements, none of which, individually or in the aggregate, would reasonably be
expected to have a Material Adverse Effect.

                  4.19  Insurance  Coverage.   Each  of  the  Company  and  each
Subsidiary  maintains  in full  force  and  effect  insurance  coverage  that is
customary for comparably situated companies for the business being conducted and
properties owned or leased by the Company and the Subsidiaries.

                  4.20 Compliance with OTC Bulletin Board Continued  Eligibility
Requirements.  The Company is in compliance  with  applicable OTC Bulletin Board
continued  eligibility  requirements.  The Company has not  received any written
notice with respect to the ineligibility of the Common Stock from trading on the
OTC Bulletin Board.

                  4.21 Brokers and Finders.  No Person will have, as a result of
the  transactions  contemplated by the Transaction  Documents,  any valid right,
interest or claim for any commission,  fee or other compensation pursuant to any
agreement,  arrangement  or  understanding  entered  into by or on behalf of the
Company.

                                       13
<PAGE>

                  4.22 No  Directed  Selling  Efforts or  General  Solicitation.
Neither  the  Company  nor any Person  acting on its behalf  has  conducted  any
general  solicitation  or  general  advertising  (as  those  terms  are  used in
Regulation D under the Securities  Act) in connection  with the offer or sale of
the Securities.

                  4.23 No  Integrated  Offering.  Neither  the  Company  nor any
Person  acting on its behalf  has,  directly or  indirectly,  made any offers or
sales of any Company security or solicited any offers to buy any security, under
circumstances  that would  adversely  affect  reliance by the Company on Section
4(2)  of the  Securities  Act  for  the  exemption  from  registration  for  the
transactions contemplated hereby or would require registration of the Securities
under the  Securities  Act or would be integrated  under the Nasdaq  Marketplace
Rules.

                  4.24  Private  Placement.  Subject  to the  accuracy  of  each
Investor's  representations  in  Section  5  hereof,  the  offer and sale of the
Securities  to  the  Investors  as  contemplated   hereby  is  exempt  from  the
registration requirements of the Securities Act.

                  4.25  Questionable  Payments.  Neither  the  Company  nor  any
Subsidiary nor, to the Company's  Knowledge,  any of their directors,  officers,
employees,  agents or other  Persons  acting on  behalf  of the  Company  or any
Subsidiary, has on behalf of the Company or any Subsidiary or in connection with
its business:  (a) used any corporate funds for unlawful  contributions,  gifts,
entertainment or other unlawful  expenses  relating to political  activity;  (b)
made any direct or indirect unlawful  payments to any governmental  officials or
employees from corporate  funds;  (c)  established or maintained any unlawful or
unrecorded  fund of  corporate  monies  or other  assets;  (d) made any false or
fictitious entries on the books and records of the Company or any Subsidiary; or
(e) made any unlawful bribe,  rebate,  payoff,  influence  payment,  kickback or
other unlawful payment of any nature.

                  4.26  Transactions  with  Affiliates.  None of the officers or
directors of the Company or any Subsidiary and, to the Company's Knowledge, none
of the  employees of the Company or any  Subsidiary  is presently a party to any
transaction  with the Company or any Subsidiary  (other than as holders of stock
options and/or warrants, and for services as employees, officers and directors),
including  any  contract,  agreement  or  other  arrangement  providing  for the
furnishing  of  services  to or by,  providing  for  rental of real or  personal
property to or from,  or  otherwise  requiring  payments to or from any officer,
director or such  employee or, to the Company's  Knowledge,  any entity in which
any officer,  director, or any such employee has a substantial interest or is an
officer, director, trustee or partner.

                  4.27 Internal Controls.  The Company is in material compliance
with the provisions of the  Sarbanes-Oxley  Act of 2002 currently  applicable to
the  Company.  Each of the  Company  and each  Subsidiary  maintains a system of
internal accounting controls sufficient to provide reasonable assurance that (i)
transactions  are executed in accordance with  management's  general or specific
authorizations,   (ii)   transactions   are  recorded  as  necessary  to  permit
preparation  of financial  statements  in  conformity  with GAAP and to maintain
asset  accountability,  (iii) access to assets is permitted  only in  accordance
with  management's  general or  specific  authorization,  and (iv) the  recorded
accountability  for assets is compared  with the existing  assets at  reasonable
intervals and appropriate  action is taken with respect to any differences.  The
Company  has  established  disclosure  controls  and  procedures  (as defined in
Exchange  Act Rules  13a-15  and  15d-15)  for the  Company  and  designed  such
disclosure controls and procedures to ensure that material  information relating
to the Company and each  Subsidiary is made known to the certifying  officers by
others within those entities.  The Company's  certifying officers have evaluated
the effectiveness of the Company's  controls and procedures as of the end of the
period covered by the most recently filed periodic report under the Exchange Act
(such date, the "Evaluation  Date").  The Company presented in its most recently
filed periodic  report under the Exchange Act the  conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the Evaluation Date, there
have been no  significant  changes  in the  internal  controls  (as such term is
defined in Item 307(b) of Regulation  S-B) of the Company or any  Subsidiary or,
to the Company's  Knowledge,  in other factors that could  significantly  affect
such internal controls.  The books, records and accounts of the Company and each
Subsidiary  accurately  and  fairly  reflect,  in  all  material  respects,  the
transactions  in,  and  dispositions  of,  the  assets  of,  and the  results of
operations  of, the  Company and each  Subsidiary.  Each of the Company and each
Subsidiary  maintains  and will  continue  to  maintain  a  standard  system  of
accounting  established  and  administered  in  accordance  with  GAAP  and  the
applicable requirements of the Exchange Act.

                                       14
<PAGE>

                  4.28 Independent  Accountants.  PMB Helin Donovan,  LLP is the
Company's  independent  registered  public  accounting  firm as  required by the
Exchange Act, and the rules and regulations of the SEC thereunder.

                  4.29 Investment Company.  The Company is not and, after giving
effect to the offering and sale of the  Securities,  will not be an  "investment
company" within the meaning of the Investment Company Act of 1940, as amended.

                  4.30  Regulatory  Compliance.  Neither  the  Company  nor  any
Subsidiary is in violation of any applicable statute, rule, regulation, order or
restriction  of any domestic or foreign  government  or any  instrumentality  or
agency thereof in respect of the conduct of its business or the ownership of its
properties,  except as would not have a Material Adverse Effect. No governmental
orders,  permissions,  consents,  approvals or authorizations are required to be
obtained  and no  registrations  or  declarations  are  required  to be filed in
connection  with the execution and delivery of this Agreement or the issuance of
the Shares or the  Warrant  Shares,  except  such as have been duly and  validly
obtained or filed,  or with  respect to any filings  that must be made after the
applicable Closing, as will be filed in a timely manner.

                  4.31 Market Stabilization. The Company has not taken, nor will
it take, directly or indirectly, any action designed to or that might reasonably
be  expected  to cause or  result  in,  or that has  constituted  or that  might
reasonably be expected to constitute,  the  stabilization or manipulation of the
price of the Common Stock or any security of the Company to facilitate  the sale
or resale of any of the Securities.

                                       15
<PAGE>

                  4.32 Material Contracts. All material documents,  contracts or
other agreements of the Company and any Subsidiary required to be filed with the
SEC have been filed with the SEC and are  included  in the  exhibits  to the SEC
Filings.  The  description  of the  contracts,  documents  or  other  agreements
contained  in the SEC  Filings  (as the case  may be)  reflect  in all  material
respects the terms of the underlying contract, document or other agreement. Each
such  contract,  document or other  agreement is in full force and effect and is
valid and  enforceable by and against the Company or the applicable  Subsidiary,
as  applicable,  in  accordance  with its terms.  Neither  the  Company  nor any
Subsidiary  is in  default  in the  observance  or  performance  of any  term or
obligation  to be  performed  by it under any such  agreement,  and no event has
occurred  which  with  notice or lapse of time or both would  constitute  such a
default,  in any such  case  which  default  or  event,  individually  or in the
aggregate, would result in a Material Adverse Effect.

                  4.33 Application of Takeover Protections.  The Company and the
Board have taken all necessary action,  if any, in order to render  inapplicable
any control share acquisition,  business combination, poison pill (including any
distribution under a rights agreement) or other similar anti-takeover  provision
under the Company's Articles of Incorporation or the laws of the State of Nevada
that  are or  could  become  applicable  to the  Investors  as a  result  of the
Investors and the Company  fulfilling  their  obligations  or  exercising  their
rights under the Transaction Documents, including without limitation as a result
of the Company's issuance of the Securities and the Investors'  ownership of the
Securities.

                  4.34 FDA. As to each product  subject to the  jurisdiction  of
the U.S. Food and Drug  Administration  ("FDA") under the Federal Food, Drug and
Cosmetic  Act, as  amended,  and the  regulations  thereunder  ("FDCA")  that is
manufactured,  packaged, labeled, tested, distributed,  sold, and/or marketed by
the Company or any Subsidiary (each such product,  a "Pharmaceutical  Product"),
such Pharmaceutical Product is being manufactured,  packaged,  labeled,  tested,
distributed,  sold  and/or  marketed  by the  Company  in  compliance  with  all
applicable  requirements  under FDCA and  similar  laws,  rules and  regulations
relating to registration,  investigational use, premarket clearance,  licensure,
or  application  approval,   good  manufacturing   practices,   good  laboratory
practices,   good  clinical  practices,   product  listing,   quotas,  labeling,
advertising,  record keeping and filing of reports,  except where the failure to
be in compliance would not have a Material Adverse Effect.  There is no pending,
completed or, to the Company's  Knowledge,  threatened,  action  (including  any
lawsuit,  arbitration,  or legal or  administrative  or  regulatory  proceeding,
charge, complaint, or investigation) against the Company or any Subsidiary,  and
neither the Company nor any Subsidiary  has received any notice,  warning letter
or other communication from the FDA or any other governmental  entity, which (i)
contests the premarket clearance,  licensure,  registration, or approval of, the
uses of, the distribution of, the manufacturing or packaging of, the testing of,
the sale of, or the labeling and promotion of an  Pharmaceutical  Product,  (ii)
withdraws its approval of,  requests the recall,  suspension,  or seizure of, or
withdraws or orders the withdrawal of advertising of sales promotional materials
relating to, any  Pharmaceutical  Product,  (iii) imposes a clinical hold on any
clinical investigation by the Company or any Subsidiary, (iv) enjoins production
at any  facility  of the  Company or any  Subsidiary,  (v) enters or proposes to
enter into a consent  decree of  permanent  injunction  with the  Company or any
Subsidiary,  or (vi)  otherwise  alleges  any  violation  of any laws,  rules or
regulations by the Company or any Subsidiary,  and which, either individually or
in the aggregate, would have a Material Adverse Effect. The properties, business
and operations of the Company have been and are being  conducted in all material
respects in accordance  with all applicable  laws,  rules and regulations of the
FDA.  Neither the Company nor any  Subsidiary  has been informed by the FDA that
the FDA will prohibit the marketing,  sale,  license or use in the United States
of any product proposed to be developed,  produced or marketed by the Company or
any Subsidiary nor has the FDA expressed any concern as to approving or clearing
for  marketing  any product  being  developed or proposed to be developed by the
Company or any Subsidiary.

                                       16
<PAGE>

         5.  Representations  and  Warranties  of  the  Investors.  Each  of the
Investors  hereby,  severally  and not jointly,  represents  and warrants to the
Company that:

                  5.1  Organization  and  Existence.  Such Investor is a validly
existing  corporation,  limited partnership or limited liability company and has
all requisite  corporate,  partnership  or limited  liability  company power and
authority to invest in the Securities pursuant to this Agreement.

                  5.2 Authorization.  The execution, delivery and performance by
such Investor of the Transaction Documents to which it is a party have been duly
authorized.  Each  Transaction  Document  to which it is a party  has been  duly
executed by such  Investor,  and when  delivered by such  Investor in accordance
with the terms hereof, will constitute the valid and legally binding obligations
of such  Investor,  enforceable  against such Investor in accordance  with their
respective  terms,  subject  to  bankruptcy,  insolvency,  fraudulent  transfer,
reorganization,  moratorium and similar laws of general applicability,  relating
to or affecting creditors' rights generally.

                  5.3 Purchase  Entirely for Own Account.  The  Securities to be
received by such Investor  hereunder  will be acquired for such  Investor's  own
account,  not as  nominee  or  agent,  and  not  with a view  to the  resale  or
distribution  of any part thereof in violation of the  Securities  Act, and such
Investor has no present intention of selling,  granting any participation in, or
otherwise distributing the same in violation of the Securities Act.

                  5.4 Investment Experience.  Such Investor acknowledges that it
can bear the economic risk and complete loss of its investment in the Securities
and has such knowledge and  experience in financial or business  matters that it
is  capable  of  evaluating  the  merits  and  risks  of the  investment  in the
Securities contemplated hereby.

                  5.5  Disclosure  of  Information.  Such  Investor  has  had an
opportunity to receive all  information  related to the Company  requested by it
and to ask  questions  of and receive  answers  from the Company  regarding  the
Company,  its  business  and the terms and  conditions  of the  offering  of the
Securities. Such Investor acknowledges receipt of copies of the SEC Filings.

                  5.6 Restricted Securities.  Such Investor understands that the
Securities are  characterized as "restricted  securities" under the U.S. federal
securities  laws  inasmuch  as they are being  acquired  from the  Company  in a
transaction  not  involving  a public  offering  and that  under  such  laws and
applicable  regulations such securities may be resold without registration under
the Securities Act only in certain limited circumstances.

                                       17
<PAGE>

                  5.7 Legends.  It is understood that, except as provided below,
certificates  evidencing  the  Securities  may bear the following or any similar
legend:

                  (a)  "THE   SECURITIES   REPRESENTED   HEREBY  HAVE  NOT  BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES  ACT"),
OR ANY STATE  SECURITIES  LAWS.  THE  SECURITIES  REPRESENTED  HEREBY MAY NOT BE
TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO
THE SECURITIES ACT, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144(K), OR
(III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY  SATISFACTORY TO
IT THAT SUCH  TRANSFER  MAY  LAWFULLY  BE MADE  WITHOUT  REGISTRATION  UNDER THE
SECURITIES ACT OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS."

                  (b) If required by the  authorities of any state in connection
with the issuance of sale of the  Securities,  the legend required by such state
authority.

                  5.8  Accredited  Investor.  Such  Investor  is  an  accredited
investor as defined in Rule 501(a) of Regulation D under the Securities Act.

                  5.9 No  General  Solicitation.  Such Investor did not learn of
the  investment  in the  Securities  as a result of any  public  advertising  or
general solicitation.

                  5.10 Brokers and Finders.  No Person will have, as a result of
the  transactions  contemplated by the Transaction  Documents,  any valid right,
interest or claim against or upon the Company or an Investor for any commission,
fee  or  other   compensation   pursuant  to  any   agreement,   arrangement  or
understanding entered into by or on behalf of such Investor.

         6. Conditions to the Closings.

                  6.1      Conditions to the First Closing.

                           (a)  Conditions to the  Investors'  Obligations.  The
obligation  of each  Investor to purchase  the Initial  Shares and the  Investor
Warrants at the First Closing is subject to the satisfaction, on or prior to the
First Closing Date, of the following  conditions,  any of which may be waived by
such Investor (as to itself only):

                                    (i) The  representations and warranties made
by the Company in Section 4 hereof  shall be true and correct on the date hereof
and on the First Closing Date (except to the extent any such  representation  or
warranty   expressly   speaks  as  of  a  specific  date,  in  which  case  such
representation  or  warranty  shall be true and  correct as of such  date).  The
Company shall have performed all obligations and covenants herein required to be
performed by it on or prior to the First  Closing  Date.  The Company shall have
delivered  a  certificate,  executed  on  behalf  of the  Company  by its  Chief
Executive Officer or its Chief Financial Officer,  dated as of the First Closing
Date,  certifying to the fulfillment of the condition  specified in this Section
6.1(a)(i).

                                       18
<PAGE>

                                    (ii) The Company shall have obtained any and
all  consents,  permits,  approvals,  registrations  and  waivers  necessary  or
appropriate  for the  purchase  and sale of the Initial  Shares and the Investor
Warrants and the  consummation  of the other  transactions  contemplated  by the
Transaction  Documents to be  consummated on or prior to the First Closing Date,
including,  without limitation,  any necessary stockholder consent, all of which
shall be in full force and effect.

                                    (iii) The Company,  the Existing  Investors,
the Insiders,  and the Officers and Directors  shall have executed and delivered
the  Transaction  Documents to which they are a party and  performed all actions
required  to be  taken  by them  prior  to the  First  Closing  pursuant  to the
Transaction  Documents,  and each of the Transaction  Documents shall be in full
force and effect.

                                    (iv) No judgment,  writ, order,  injunction,
award or decree of or by any court, or judge,  justice or magistrate,  including
any bankruptcy court or judge, or any order of or by any governmental authority,
shall have been issued,  and no action or proceeding  shall have been instituted
by any governmental  authority,  enjoining or preventing the consummation of the
transactions contemplated by the Transaction Documents.

                                    (v)  The  Company  shall  have  delivered  a
certificate, executed on behalf of the Company by its Secretary, dated as of the
First Closing Date,  certifying the  resolutions  adopted by the Board approving
the  transactions  contemplated  by the  Transaction  Documents,  certifying the
current versions of the Articles of Incorporation  and Bylaws of the Company and
certifying as to the signatures and authority of Persons signing the Transaction
Documents and related documents on behalf of the Company.

                                    (vi) The  Investors  shall have  received an
opinion from Hanson, Bridgett, Marcus, Vlahos & Rudy, LLP, dated as of the First
Closing Date, in substantially the form of Appendix I.

                                    (vii) No stop order or suspension of trading
shall have been imposed by Nasdaq,  the OTC Bulletin Board, the SEC or any other
governmental  or  regulatory  body with respect to public  trading in the Common
Stock.  The Company shall not have received notice of the  ineligibility  of the
Common  Stock for trading on the OTC  Bulletin  Board or that it is violation of
any Nasdaq, OTC Bulletin Board or SEC rule,  regulation or interpretation  which
could lead to such ineligibility.

                                    (viii) The Company shall have  delivered (i)
to its  transfer  agent  irrevocable  instructions  to issue and deliver to each
Investor (or in such nominee  name(s) as designated by such Investor in writing)
certificates  evidencing  such  number  of  Initial  Shares  as set forth on the
signature  pages to this Agreement and (ii) duly executed  Investor  Warrants to
the Investors.

                                       19
<PAGE>

                                    (ix) All agreements that require the Company
to register any  securities of the Company under the  Securities  Act shall have
been  terminated,   which  shall  include  those  certain   Registration  Rights
Agreements  dated August 31, 2005,  October 25, 2005 and January 10, 2007 by and
among the Company and the other parties thereto.

                                    (x) Subject to the  occurrence  of the First
Closing,  the Board shall have been  reconstituted  such that it is comprised of
the following  members:  Rawleigh  Ralls,  Oliver Janssen,  Greg Koonsman,  John
Powers, Michael Friebe, Keith Jacobsen and Steve Kessler.

                                    (xi) Subject to the  occurrence of the First
Closing,  the Board shall have adopted  resolutions to set the size of the Board
at seven, which resolutions shall remain in full force and effect.

                           (b)  Conditions to  Obligations  of the Company.  The
Company's  obligation  to sell and issue the  Initial  Shares  and the  Investor
Warrants at the First Closing is subject to the  satisfaction on or prior to the
First  Closing Date of the following  conditions,  any of which may be waived by
the Company:

                                    (i) The  representations and warranties made
by the  Investors  in Section 5 hereof shall be true and correct in all material
respects  when made and as of the  First  Closing  Date with the same  force and
effect as if they had been made on and as of said date (except to the extent any
such representation or warranty expressly speaks as of a specific date, in which
case such  representation  or warranty shall be true and correct in all material
respects as of such specific date).

                                    (ii) The Company shall have obtained any and
all  consents,  permits,  approvals,  registrations  and  waivers  necessary  or
appropriate  for the  purchase  and sale of the Initial  Shares and the Investor
Warrants and the  consummation  of the other  transactions  contemplated  by the
Transaction  Documents to be  consummated on or prior to the First Closing Date,
including,  without limitation,  any necessary stockholder consent, all of which
shall be in full force and effect.

                                    (iii) The Investors  shall have executed and
delivered this Agreement and the Rights Agreement.

                                    (iv) No judgment,  writ, order,  injunction,
award or decree of or by any court, or judge,  justice or magistrate,  including
any bankruptcy court or judge, or any order of or by any governmental authority,
shall have been issued,  and no action or proceeding  shall have been instituted
by any governmental  authority,  enjoining or preventing the consummation of the
transactions contemplated by the Transaction Documents.

                                    (v) The Investors  shall have  delivered the
Initial Purchase Price to the Company.

                                       20
<PAGE>

                                    (vi)  The  Investors  shall  have  purchased
10,178,571  Debenture Shares from the Existing  Investors in accordance with the
terms  of  the  Debenture  Conversion  and  Purchase  and  Warrant  Cancellation
Agreement.

                  6.2      Conditions to the Second Closing.

                           (a)  Conditions to the  Investors'  Obligations.  The
obligation  of each  Investor to purchase  the  Additional  Shares at the Second
Closing is subject to the satisfaction,  on or prior to the Second Closing Date,
of the following conditions,  any of which may be waived by such Investor (as to
itself only):

                                    (i) The  representations and warranties made
by the  Company in Section 4 hereof  shall be true and  correct in all  material
respects on the date hereof and on the Second Closing Date (except to the extent
any such  representation or warranty  expressly speaks as of a specific date, in
which case such  representation or warranty shall be true and correct as of such
date).  The Company shall have performed all  obligations  and covenants  herein
required  to be  performed  by it on or prior to the Second  Closing  Date.  The
Company shall have delivered a certificate, executed on behalf of the Company by
its Chief  Executive  Officer or its Chief  Financial  Officer,  dated as of the
Second Closing Date, certifying to the fulfillment of the condition specified in
this Section 6.2(a)(i).

                                    (ii) The Company shall have obtained any and
all  consents,  permits,  approvals,  registrations  and  waivers  necessary  or
appropriate  for  the  purchase  and  sale  of the  Additional  Shares  and  the
consummation of the other transactions contemplated by the Transaction Documents
to be  consummated on or prior to the Second  Closing Date,  including,  without
limitation,  any necessary  stockholder  consent,  all of which shall be in full
force and effect.

                                    (iii) The Company,  the Existing  Investors,
the Insiders and the Officers and  Directors  shall have  performed  all actions
required  to be  taken by them  prior  to the  Second  Closing  pursuant  to the
Transaction  Documents,  and each of the Transaction  Documents shall be in full
force and effect.

                                    (iv) No judgment,  writ, order,  injunction,
award or decree of or by any court, or judge,  justice or magistrate,  including
any bankruptcy court or judge, or any order of or by any governmental authority,
shall have been issued,  and no action or proceeding  shall have been instituted
by any governmental  authority,  enjoining or preventing the consummation of the
transactions contemplated by the Transaction Documents.

                                    (v)  The  Company  shall  have  delivered  a
certificate, executed on behalf of the Company by its Secretary, dated as of the
Second Closing Date,  certifying the resolutions  adopted by the Board approving
the  transactions  contemplated  by the  Transaction  Documents,  certifying the
current versions of the Articles of Incorporation  and Bylaws of the Company and
certifying as to the signatures and authority of Persons signing the Transaction
Documents and related documents on behalf of the Company.

                                       21
<PAGE>

                                    (vi) The  Investors  shall have  received an
opinion from  Hanson,  Bridgett,  Marcus,  Vlahos & Rudy,  LLP,  dated as of the
Second Closing Date, in substantially the form of Appendix I.

                                    (vii) No stop order or suspension of trading
shall have been imposed by Nasdaq,  the OTC Bulletin Board, the SEC or any other
governmental  or  regulatory  body with respect to public  trading in the Common
Stock.  The Company shall not have received notice of the  ineligibility  of the
Common  Stock for trading on the OTC  Bulletin  Board or that it is violation of
any Nasdaq, OTC Bulletin Board or SEC rule,  regulation or interpretation  which
could lead to such ineligibility.

                                    (viii) The Company  shall have  delivered to
its  transfer  agent  irrevocable  instructions  to issue  and  deliver  to each
Investor (or in such nominee  name(s) as designated by such Investor in writing)
certificates  evidencing  such number of  Additional  Shares as set forth on the
signature pages to this Agreement.

                                    (ix) The  Company  shall  have  approved  an
increase in the shares  available for grant under the Equity Incentive Plan by a
total of 22,062,664  shares of Common Stock,  such that the available pool under
its the Equity  Incentive  Plan  immediately  following the Second Closing shall
equal 25,659,664 shares of Common Stock.

                                    (x) The  stockholders  of the Company  shall
have approved an increase in number of shares of Common Stock  authorized  under
the Company's  Articles of Incorporation to 500,000,000  shares (as adjusted for
stock splits, combinations or other similar transactions).

                                    (xi)  Since the First  Closing  Date,  there
shall have been no Material Adverse Effect.

                           (b)  Conditions to  Obligations  of the Company.  The
Company's  obligation  to sell and issue  the  Additional  Shares at the  Second
Closing is subject to the satisfaction on or prior to the Second Closing Date of
the following conditions, any of which may be waived by the Company:

                                    (i) The  representations and warranties made
by the  Investors  in Section 5 hereof shall be true and correct in all material
respects  when made and as of the  Second  Closing  Date with the same force and
effect as if they had been made on and as of said date (except to the extent any
such representation or warranty expressly speaks as of a specific date, in which
case such  representation  or warranty shall be true and correct in all material
respects as of such specific date).

                                    (ii) The Company shall have obtained any and
all  consents,  permits,  approvals,  registrations  and  waivers  necessary  or
appropriate  for  the  purchase  and  sale  of the  Additional  Shares  and  the
consummation of the other transactions contemplated by the Transaction Documents
to be  consummated on or prior to the Second  Closing Date,  including,  without
limitation,  any necessary  stockholder  consent,  all of which shall be in full
force and effect.

                                       22
<PAGE>

                                    (iii) No judgment,  writ, order, injunction,
award or decree of or by any court, or judge,  justice or magistrate,  including
any bankruptcy court or judge, or any order of or by any governmental authority,
shall have been issued,  and no action or proceeding  shall have been instituted
by any governmental  authority,  enjoining or preventing the consummation of the
transactions contemplated by the Transaction Documents.

                                    (iv) The Investors  shall have delivered the
Additional Purchase Price to the Company.

                  6.3      Termination  of  Obligations  to  Effect  the  Second
Closing;  Effects.  The  obligation  of the  Company,  on the one hand,  and the
Investors,  on the other hand, to effect the Second  Closing shall  terminate as
follows:

                           (a) Upon the mutual  written  consent of the  Company
and the Investors;

                           (b) By the Company if any of the conditions set forth
in Section 6.2(b) shall have become  incapable of fulfillment and shall not have
been waived by the Company;

                           (c) By an Investor  (with  respect to itself only) if
any of the conditions set forth in Section 6.2(a) shall have become incapable of
fulfillment and shall not have been waived by the Investor; or

                           (d) By  either  the  Company  or any  Investor  (with
respect to itself  only) if the Second  Closing  has not  occurred  prior to the
earlier  of (i)  October  31,  2007 and  (ii)  the  seventh  day  following  the
satisfaction of the conditions set forth in Section 6.2;

provided,  however,  that,  except in the case of clause  (a)  above,  the party
seeking to terminate its  obligation to effect the Second Closing shall not then
be in breach of any of its representations,  warranties, covenants or agreements
contained in this  Agreement  if such breach has  resulted in the  circumstances
giving rise to such party's  seeking to terminate  its  obligation to effect the
Second Closing.

         7. Covenants and Agreements.

                  7.1 Proxy  Statement.  Within  ten (10)  days  after the First
Closing Date, the Company will prepare, distribute and file with the SEC a proxy
statement to solicit the necessary  stockholder  approval to increase the number
of  shares  of  Common  Stock  authorized   under  the  Company's   Articles  of
Incorporation to 500,000,000 shares (as adjusted for stock splits,  combinations
or other similar transactions).

                  7.2 No Conflicting Agreements.  The Company shall not take any
action,  enter into any agreement or make any commitment  that would conflict or
interfere  in any  material  respect with the  Company's  obligations  under the
Transaction Documents.

                                       23
<PAGE>

                  7.3      Insurance.  The Company shall not  materially  reduce
the insurance coverages described in Section 4.19.

                  7.4  Compliance  with Laws.  The Company  shall  comply in all
material  respects with all  applicable  laws,  rules,  regulations,  orders and
decrees of all governmental authorities.

                  7.5  Listing of  Underlying  Shares and Related  Matters.  The
Company shall use  commercially  reasonable  efforts to continue the eligibility
and trading of its Common  Stock on the OTC Bulletin  Board and, in  accordance,
therewith,  shall use commercially  reasonable efforts to comply in all respects
with the Company's  reporting,  filing and other obligations under the bylaws or
rules of such market.

                  7.6  Termination of Covenants.  The provisions of Sections 7.2
through 7.4 shall terminate and be of no further force and effect on the date on
which the  Company's  obligations  under the Rights  Agreement  to  register  or
maintain  the  effectiveness  of  any  registration   covering  the  Registrable
Securities (as such term is defined in the Rights Agreement) shall terminate.

                  7.7 Removal of Legends.  Any legend referred to in Section 5.7
hereof stamped on a certificate  evidencing the Shares or the Warrant Shares and
the stock transfer instructions and record notations with respect to such Shares
and Warrant  Shares shall be removed and the Company  shall issue a  certificate
without such legend to the holder of such Shares and/or  Warrant Shares upon the
written  request of such holder if (i) a  Registration  Statement  covering  the
resale of the Securities  and Warrant  Shares is effective  under the Securities
Act and such request includes a representation  by the holder that the Shares or
Warrant Shares at issue have been sold pursuant to such Registration  Statement,
(ii) such  holder  provides  the Company  with an opinion of counsel  reasonably
acceptable  to the  Company to the effect that a public sale or transfer of such
securities  may be made without  registration  under the Securities Act or (iii)
such holder  provides the Company with  reasonable  assurances in writing (which
shall not  include an  opinion  of  counsel)  that such  securities  can be sold
pursuant  to Section (k) of Rule 144 under the  Securities  Act.  Following  the
receipt by the  Company of such  request  for legend  removal  under  clause (i)
above, an opinion under clause (ii) above or reasonable  assurances under clause
(iii) above, the Company shall, promptly following the receipt by the Company of
a legended  certificate  representing  such  securities,  deliver or cause to be
delivered to such holder a certificate representing such securities that is free
from all restrictive and other legends.

                  7.8 Termination of Registration Statements.  The Company shall
terminate  registration  statement  nos.  333-134927,  333-134149 and 333-131281
filed with the SEC and withdraw registration statement no. 333-143021 filed with
the SEC on or about November 30, 2007.

                                       24
<PAGE>

         8. Survival and Indemnification.

                  8.1 Survival. The representations,  warranties,  covenants and
agreements  contained in this Agreement shall survive until the date that is two
years after the later of the First  Closing  Date and the Second  Closing  Date,
except as otherwise expressly provided in this Agreement.

                  8.2 Indemnification.  The Company agrees to indemnify and hold
harmless  each  Investor  and its  Affiliates  and their  respective  directors,
officers,  employees and agents and each person who controls an Investor  within
the meaning of the  Securities  Act from and against any and all actual  losses,
claims,  damages,  liabilities  and  expenses  arising from an action by a third
party (including without limitation reasonable attorneys' fees and disbursements
and other  expenses  incurred in  connection  with  investigating,  preparing or
defending any action,  claim or proceeding,  pending or threatened and the costs
of enforcement  thereof)  (collectively,  "Losses") incurred by such Person as a
result of any breach of representation,  warranty, covenant or agreement made by
or to be performed on the part of the Company under the  Transaction  Documents.
Each Investor agrees,  severally and not jointly, to indemnify and hold harmless
the Company and its directors,  officers,  employees and agents from and against
any and all  Losses to  incurred  by such  Person  as a result of any  breach of
representation,  warranty,  covenant or agreement  made by or to be performed on
the part of such Investor under the Transaction Documents.

                  8.3  Conduct  of  Indemnification   Proceedings.   Any  Person
entitled  to  indemnification  hereunder  shall  (i) give  prompt  notice to the
indemnifying  party of any claim with respect to which it seeks  indemnification
and (ii) permit such indemnifying party to assume the defense of such claim with
counsel  reasonably  satisfactory  to the indemnified  party;  provided that any
Person  entitled  to  indemnification  hereunder  shall have the right to employ
separate  counsel and to participate in the defense of such claim,  but the fees
and expenses of such counsel  shall be at the expense of such Person  unless (a)
the  indemnifying  party has  agreed to pay such  fees or  expenses,  or (b) the
indemnifying  party shall have failed to assume the defense of such claim within
ten  (10)  Business  Days  after  written  notice  thereof  and  employ  counsel
reasonably  satisfactory to such Person or (c) in the reasonable judgment of any
such Person,  considering  the advice of counsel,  a conflict of interest exists
between such Person and the  indemnifying  party with respect to such claims (in
which case, if the Person notifies the  indemnifying  party in writing that such
Person  elects to employ  separate  counsel at the  expense of the  indemnifying
party, the indemnifying  party shall not have the right to assume the defense of
such claim on behalf of such Person); and provided, further, that the failure of
any  indemnified  party to give notice as provided  herein shall not relieve the
indemnifying party of its obligations hereunder,  except to the extent that such
failure to give notice shall materially  adversely affect the indemnifying party
in the defense of any such claim or  litigation,  but the omission so to deliver
notice to the  indemnifying  party shall not relieve it of any liability that it
may have to any  indemnified  party  otherwise  than under this Section 8. It is
understood  that the  indemnifying  party  shall  not,  in  connection  with any
proceeding in the same jurisdiction, be liable for fees or expenses of more than
one additional firm of attorneys at any time for all such  indemnified  parties.
No indemnifying  party shall,  except with the consent of the indemnified party,
which consent shall not be unreasonably withheld or delayed, consent to entry of
any  judgment  or  enter  into  any  settlement  that  does  not  include  as an
unconditional  term  thereof  the giving by the  claimant or  plaintiff  to such
indemnified  party of a release  from all  liability in respect of such claim or
litigation.

                                       25
<PAGE>

         9. Miscellaneous.

                  9.1 Successors and Assigns. This Agreement may not be assigned
by a party  hereto  without  the prior  written  consent  of the  Company or the
Investors,  as applicable,  provided,  however,  that an Investor may assign its
rights and  delegate  its duties  hereunder  in whole or in part to an Affiliate
(provided that such Affiliate shall not be a direct competitor of the Company in
the  medical  device  industry)  acquiring  some or all of its Shares or Warrant
Shares after notice duly given by such Investor to the Company, provided that no
such  assignment or  obligation  shall affect the  obligations  of such Investor
hereunder. The provisions of this Agreement shall inure to the benefit of and be
binding upon the  respective  permitted  successors  and assigns of the parties.
Nothing in this  Agreement,  express or implied,  is intended to confer upon any
party other than the parties hereto or their  respective  successors and assigns
any rights,  remedies,  obligations,  or liabilities  under or by reason of this
Agreement, except as expressly provided in this Agreement.

                  9.2 Counterparts; Faxes. This Agreement may be executed in two
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall constitute one and the same instrument.  This Agreement may
also be executed via facsimile or PDF, which shall be deemed an original.

                  9.3 Titles and  Subtitles.  The titles and  subtitles  used in
this  Agreement  are used for  convenience  only and are not to be considered in
construing or interpreting this Agreement.

                  9.4 Notices. Unless otherwise provided, any notice required or
permitted  under this  Agreement  shall be given in writing  and shall be deemed
effectively  given as hereinafter  described (i) if given by personal  delivery,
then such  notice  shall be deemed  given upon such  delivery,  (ii) if given by
facsimile  or  electronic  mail,  then such  notice  shall be deemed  given upon
receipt of  confirmation of complete  transmittal,  (iii) if given by mail, then
such notice shall be deemed given upon the earlier of (A) receipt of such notice
by the  recipient  or (B) three (3) days after such notice is deposited in first
class mail, postage prepaid, and (iv) if given by an internationally  recognized
overnight  air courier,  then such notice shall be deemed given one (1) Business
Day after delivery to such carrier.  All notices shall be addressed to the party
to be notified at the address as follows, or at such other address as such party
may designate by ten (10) days' advance written notice to the other party:

                           If to the Company:

                                   Intraop Medical Corporation
                                   570 Del Rey Avenue
                                   Sunnyvale, CA 94085
                                   Attention:  Chief Financial Officer
                                   Facsimile:  (734) 503-6529

                                       26
<PAGE>

                           With a copy to:

                                   Hanson, Bridgett, Marcus, Vlahos & Rudy, LLP
                                   425 Market Street, 26th Floor
                                   San Francisco, CA  94105
                                   Attention:  David M. Pike
                                   Facsimile: (415) 541-9366

                           If to the Investors,  to the addresses  set forth  on
the Schedule of Purchasers, with a copy to:

                                   Cooley Godward Kronish LLP
                                   380 Interlocken Crescent, Suite 900
                                   Broomfield, CO 80021
                                   Attention:  Laura M. Medina
                                   Facsimile:  (720) 566-4099

                  9.5 Expenses. The parties hereto shall pay their own costs and
expenses  in  connection  herewith.  In the event  that  legal  proceedings  are
commenced by any party to this Agreement against another party to this Agreement
in connection with this Agreement or the other Transaction Documents,  the party
or parties  that do not prevail in such  proceedings  shall  severally,  but not
jointly,  pay their pro rata share of the reasonable  attorneys'  fees and other
reasonable  out-of-pocket costs and expenses incurred by the prevailing party in
such proceedings.

                  9.6 Amendments and Waivers.  Any term of this Agreement may be
amended and the  observance of any term of this  Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively)
only with the written consent of the Company and the Investors. Any amendment or
waiver  effected in accordance  with this  paragraph  shall be binding upon each
holder of any Securities purchased under this Agreement at the time outstanding,
each future holder of all such Securities and the Company.

                  9.7 Publicity. Except as set forth below, no public release or
announcement concerning the transactions  contemplated hereby shall be issued by
the Company or the  Investors  without the prior  consent of the Company (in the
case of a release or  announcement  by the  Investors)  or the Investors (in the
case of a release or  announcement  by the Company) (which consents shall not be
unreasonably withheld or delayed), except as such release or announcement may be
required  by law or the  applicable  rules or  regulations  of  Nasdaq,  the OTC
Bulletin Board or the Securities Act.  Notwithstanding the foregoing,  not later
than three (3) trading days immediately  following the date hereof,  the Company
shall issue a press release  disclosing the  transactions  contemplated  by this
Agreement.  The Company will timely file a Current Report on Form 8-K describing
the  Transaction  Documents and  attaching  the press  release  described in the
foregoing  sentence.  In  addition,  the  Company  will make such other  filings
(including  filing the  Transaction  Documents  with the SEC) and notices in the
manner and time required by the SEC, Nasdaq or the OTC Bulletin Board.

                                       27
<PAGE>

                  9.8  Severability.  Any  provision of this  Agreement  that is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating the remaining  provisions  hereof but shall be interpreted as if it
were  written  so as to be  enforceable  to  the  maximum  extent  permitted  by
applicable law, and any such prohibition or unenforceability in any jurisdiction
shall  not  invalidate  or  render  unenforceable  such  provision  in any other
jurisdiction.  To the extent  permitted by  applicable  law, the parties  hereby
waive any  provision of law which  renders any  provision  hereof  prohibited or
unenforceable in any respect.

                  9.9 Entire Agreement.  This Agreement,  including the exhibits
and the Disclosure Schedules, and the other Transaction Documents constitute the
entire  agreement  among the parties  hereof with respect to the subject  matter
hereof and thereof and supersede all prior agreements and  understandings,  both
oral and written,  between the parties with respect to the subject matter hereof
and thereof.

                  9.10 Further Assurances. The parties shall execute and deliver
all such further  instruments  and  documents and take all such other actions as
may reasonably be required to carry out the transactions contemplated hereby and
to evidence the fulfillment of the agreements herein contained.

                  9.11 Governing Law;  Consent to  Jurisdiction;  Waiver of Jury
Trial.  This Agreement  shall be governed by, and construed in accordance  with,
the internal laws of the State of Delaware  without  regard to the choice of law
principles  thereof.  Each of the  parties  hereto  irrevocably  submits  to the
exclusive jurisdiction of the courts of the State of California located in Santa
Clara County and the United States  District Court for the Northern  District of
California for the purpose of any suit, action,  proceeding or judgment relating
to or arising out of this Agreement and the  transactions  contemplated  hereby.
Service of process in connection with any such suit, action or proceeding may be
served on each party  hereto  anywhere  in the world by the same  methods as are
specified  for the giving of notices under this  Agreement.  Each of the parties
hereto  irrevocably  consents to the  jurisdiction of any such court in any such
suit,  action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit,
action or  proceeding  brought in such courts and  irrevocably  waives any claim
that any such  suit,  action or  proceeding  brought  in any such court has been
brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO
REQUEST A TRIAL BY JURY IN ANY  LITIGATION  WITH RESPECT TO THIS  AGREEMENT  AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

                            (Signature pages follow)

                                       28
<PAGE>

                  IN WITNESS  WHEREOF,  the parties  have  executed  this Common
Stock and Warrant Purchase Agreement as of the date first above written.

The Company:                           INTRAOP MEDICAL CORPORATION

                                       By: /s/ Donald A. Goer
                                           -------------------------------------
                                       Name: Donald A. Goer
                                       Title: President and CEO

<PAGE>

         IN WITNESS  WHEREOF,  the parties have  executed  this Common Stock and
Warrant Purchase Agreement as of the date first above written.

The Investors:                         LACUNA VENTURE FUND LLLP

                                       By:   Lacuna Ventures GP LLLP
                                             Its General Partner

                                       By:   Lacuna, LLC
                                             Its General Partner

                                       By: /s/ JK Hullett
                                           -------------------------------------
                                              JK Hullett, Managing Director

                                       LACUNA HEDGE FUND LLLP

                                       By:   Lacuna Hedge GP LLLP
                                             Its General Partner

                                       By:   Lacuna, LLC
                                             Its General Partner

                                       By: /s/ JK Hullett
                                           -------------------------------------
                                              JK Hullett, Managing Director

                        [OTHER SIGNATURE PAGES TO FOLLOW]

<PAGE>

                                       /s/ Robert W. Higgins
                                       -----------------------------------------
                                       Robert W. Higgins

                                       /s/ Oliver Janssen
                                       -----------------------------------------
                                       Oliver Janssen

                                       /s/ Victor Patrick Smith
                                       -----------------------------------------
                                       Victor Patrick Smith

                                       /s/ Andrew Jaffe
                                       -----------------------------------------
                                       Andrew Jaffe

                                       Dr. Clay and Mrs. Brenda  Cockerell,
                                       JTWROS

                                       By: /s/ Clay Cockerell
                                           -------------------------------------
                                              Clay Cockerell

                                       By: /s/ Brenda Cockerell
                                           -------------------------------------
                                              Brenda Cockerell

                                       /s/  Albert DeNittis
                                       -----------------------------------------
                                       Albert DeNittis

                                       PRECEPT CAPITAL MASTER FUND, G.P.

                                       By: /s/ D. Blair Baker
                                           -------------------------------------
                                       Name: D. Blair Baker
                                             -----------------------------------
                                       Its: Managing Member
                                            ------------------------------------

<PAGE>

                                       ELLERPHUND VENTURES II, LP

                                       By: /s/ Ryan Ever
                                           -------------------------------------
                                       Name: Ryan Ever
                                             -----------------------------------
                                       Its: Managing Member
                                            ------------------------------------

                                       SANDOR CAPITAL MASTER FUND, L.P.

                                       By: /s/ John S. Lemak
                                           -------------------------------------
                                       Name: John S. Lemak
                                             -----------------------------------
                                       Its: Manager
                                            ------------------------------------

                                       VMG HOLDINGS II, LLC

                                       By: /s/ Gregory S. Koonsman
                                           -------------------------------------
                                       Name: Gregory S. Koonsman
                                             -----------------------------------
                                       Its: Principal
                                            ------------------------------------

                                       THE JOE AND BONNIE ANN BROWN
                                       2000 LIVING TRUST

                                       By: /s/ Jose Gervais
                                           -------------------------------------
                                           Jose Gervais, Trustee

                                       E.U. CAPITAL VENTURE, INC.

                                       By: /s/ Hans Morkner
                                           -------------------------------------
                                       Name: Hans Morkner
                                             -----------------------------------
                                       Its: Managing Director
                                            ------------------------------------

<PAGE>

<TABLE>
<CAPTION>
                             SCHEDULE OF PURCHASERS

                                                                    First Closing
                                                                    -------------
                                                                                 Cash          Shares
                                                                                 ----          ------
                                 Total Cash                        Shares       Purchase      Purchased
                                 ----------                        ------       --------      ---------
                                  Purchase      Cash Purchase    Purchased      Price to        from
                                  --------      -------------    ---------      --------        ----
                                  Price at       Price to the     from the      Existing      Existing
                                  --------       ------------     --------      --------      ---------
          Investors             First Closing       Company        Company      Investors     Investors    Warrants
          ---------             -------------       -------        -------      ---------     ---------    --------

<S>                              <C>             <C>             <C>          <C>             <C>          <C>
Lacuna Venture Fund LLLP
c/o Lacuna LLC
1100 Spruce Street,
Suite 202
Boulder, CO  80302               $1,510,935.47   $1,127,701.94   12,599,269   $ 383,233.53    3,047,477    49,577,765

Lacuna Hedge Fund LLLP
c/o Lacuna LLC
1100 Spruce Street,
Suite 202
Boulder, CO  80302               $1,193,639.02   $  890,884.53    9,953,422   $ 302,754.49    2,407,506    39,166,435

Ellerphund Ventures II, LP
c/o Ellerphund Capital LP
2616 Hibernia
Dallas, TX  75204                $  528,827.42   $  394,695.68    4,409,744   $ 134,131.74    1,066,617    17,352,218

Sandor Capital Master
Fund, L.P.
c/o Sandor Advisors LLC
2828 Routh Street, Ste 500
Dallas, TX  75201                $  377,733.87   $  281,925.49    3,149,817   $  95,808.38      761,869    12,394,441
</TABLE>

<TABLE>
<CAPTION>
                                                    Second Closing
                                                    --------------

                                                   Shares
                                                   ------
                                 Cash Purchase    Purchased    Aggregate    Aggregate
                                 -------------    ---------    ---------    ---------
                                  Price to        from the     Purchase      Shares
                                  --------        --------     --------      ------
                                  the Company      Company       Price      Purchased
                                  -----------      -------       -----      ---------

<S>                              <C>             <C>         <C>             <C>
Lacuna Venture Fund LLLP
c/o Lacuna LLC
1100 Spruce Street,
Suite 202
Boulder, CO  80302               $ 489,064.53    6,113,306   $2,000,000.00   71,337,817

Lacuna Hedge Fund LLLP
c/o Lacuna LLC
1100 Spruce Street,
Suite 202
Boulder, CO  80302               $ 386,360.98    4,829,512   $1,580,000.00   56,356,875

Ellerphund Ventures II, LP
c/o Ellerphund Capital LP
2616 Hibernia
Dallas, TX  75204                $ 171,172.58    2,139,657   $  700,000.00   24,968,236

Sandor Capital Master
Fund, L.P.
c/o Sandor Advisors LLC
2828 Routh Street, Ste 500
Dallas, TX  75201                $ 122,266.13    1,528,327   $  500,000.00   17,834,454
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                    First Closing
                                                                    -------------
                                                                                 Cash          Shares
                                                                                 ----          ------
                                 Total Cash                        Shares       Purchase      Purchased
                                 ----------                        ------       --------      ---------
                                  Purchase      Cash Purchase    Purchased     Price to        from
                                  --------      -------------    ---------     --------        ----
                                  Price at      Price to the      from the      Existing      Existing
                                  --------      ------------      --------      --------      ---------
          Investors             First Closing       Company        Company      Investors     Investors    Warrants
          ---------             -------------       -------        -------      ---------     ---------    --------

<S>                              <C>             <C>             <C>          <C>               <C>        <C>
Precept Capital Master
Fund, G.P.
c/o Precept Capital
Management
200 Crescent Center,
Suite 1450
Dallas, TX  75201                $ 377,733.87    $ 281,925.49    3,149,817    $  95,808.38      761,869    12,394,441

VMG Holdings II, LLC
c/o VMG Health
Three Galleria Tower
13155 Noel Road, Ste 2400
Dallas, TX  75240                $ 423,061.93    $ 315,756.54    3,527,795    $ 107,305.39      853,293    13,881,775

Oliver Janssen
c/o Hultquist Capital
One Embarcadero Center
Suite 1140
San Francisco, CA  94111         $ 151,093.55    $ 112,770.20    1,259,927    $  38,323.35      304,748     4,957,777

The Joe and Bonnie Ann
Brown 2000 Living Trust
c/o Jose Gervais
1616 Paseo Del Mar
Palos Verdes Estates, CA
90274                            $ 113,320.16    $  84,577.65      944,945    $  28,742.51      228,561     3,718,332
</TABLE>

<TABLE>
<CAPTION>
                                                    Second Closing
                                                    --------------

                                                   Shares
                                                   ------
                                 Cash Purchase    Purchased    Aggregate    Aggregate
                                 -------------    ---------    ---------    ---------
                                  Price to        from the     Purchase      Shares
                                  --------        --------     --------      ------
                                  the Company      Company       Price      Purchased
                                  -----------      -------       -----      ---------

<S>                              <C>             <C>         <C>             <C>
Precept Capital Master
Fund, G.P.
c/o Precept Capital
Management
200 Crescent Center,
Suite 1450
Dallas, TX  75201                $ 122,266.13    1,528,327   $ 500,000.00    17,834,454

VMG Holdings II, LLC
c/o VMG Health
Three Galleria Tower
13155 Noel Road, Ste 2400
Dallas, TX  75240                $ 136,938.07    1,711,726   $ 560,000.00    19,974,589

Oliver Janssen
c/o Hultquist Capital
One Embarcadero Center
Suite 1140
San Francisco, CA  94111         $  48,906.45      611,331   $ 200,000.00     7,133,783

The Joe and Bonnie Ann
Brown 2000 Living Trust
c/o Jose Gervais
1616 Paseo Del Mar
Palos Verdes Estates, CA
90274                            $  36,679.84      458,498   $ 150,000.00     5,350,336
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                    First Closing
                                                                    -------------
                                                                                 Cash          Shares
                                                                                 ----          ------
                                 Total Cash                        Shares       Purchase      Purchased
                                 ----------                        ------       --------      ---------
                                  Purchase      Cash Purchase    Purchased     Price to        from
                                  --------      -------------    ---------     --------        ----
                                  Price at      Price to the     from the      Existing      Existing
                                  --------      ------------     --------      --------      ---------
          Investors             First Closing       Company        Company      Investors     Investors    Warrants
          ---------             -------------       -------        -------      ---------     ---------    --------

<S>                              <C>              <C>              <C>        <C>               <C>        <C>
Robert W Higgins
5601 Perugia Circle
San Jose, CA  95138              $  94,433.47     $  70,481.37     787,454    $  23,952.10      190,467    3,098,610

Victor Patrick Smith
40725 Encyclopedia Circle
Fremont, CA  94538               $  75,546.77     $  56,385.09     629,963    $  19,161.68      152,374    2,478,888

Andrew Jaffe
c/o Naples Center for
Dermatology
1015 Crosspointe Drive
Naples, FL  34110-0930           $  75,546.77     $  56,385.09     629,963    $  19,161.68      152,374    2,478,888

Dr. Clay and Mrs. Brenda
Cockerell, JTWROS
4312 Arcady Avenue
Dallas, TX  75205                $  18,886.69     $  14,096.27     157,491    $   4,790.42       38,093      619,722

E.U. Capital Venture, Inc.
c/o Hans Morkner
15720 Simoni Drive
San Jose, CA 95127               $  98,210.81     $  73,300.63     818,953    $  24,910.18      198,086    3,222,555
</TABLE>

<TABLE>
<CAPTION>
                                                    Second Closing
                                                    --------------

                                                   Shares
                                                   ------
                                 Cash Purchase    Purchased    Aggregate    Aggregate
                                 -------------    ---------    ---------    ---------
                                  Price to        from the     Purchase      Shares
                                  --------        --------     --------      ------
                                  the Company      Company       Price      Purchased
                                  -----------      -------       -----      ---------

<S>                              <C>               <C>        <C>             <C>
Robert W Higgins
5601 Perugia Circle
San Jose, CA  95138              $  30,566.53      382,082    $ 125,000.00    4,458,613

Victor Patrick Smith
40725 Encyclopedia Circle
Fremont, CA  94538               $  24,453.23      305,665    $ 100,000.00    3,566,890
Andrew Jaffe
c/o Naples Center for
Dermatology
1015 Crosspointe Drive
Naples, FL  34110-0930           $  24,453.23      305,665    $ 100,000.00    3,566,890

Dr. Clay and Mrs. Brenda
Cockerell, JTWROS
4312 Arcady Avenue
Dallas, TX  75205                $   6,113.31       76,416    $  25,000.00      891,722

E.U. Capital Venture, Inc.
c/o Hans Morkner
15720 Simoni Drive
San Jose, CA 95127               $  31,789.19      397,365    $ 130,000.00    4,636,959
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                    First Closing
                                                                    -------------
                                                                                 Cash          Shares
                                                                                 ----          ------
                                 Total Cash                        Shares       Purchase      Purchased
                                 ----------                        ------       --------      ---------
                                  Purchase      Cash Purchase    Purchased     Price to        from
                                  --------      -------------    ---------     --------        ----
                                  Price at      Price to the      from the      Existing      Existing
                                  --------      ------------      --------      --------      ---------
          Investors             First Closing       Company        Company      Investors     Investors    Warrants
          ---------             -------------       -------        -------      ---------     ---------    --------

<S>                              <C>              <C>               <C>       <C>               <C>         <C>
Albert DeNittis
c/o Radiation Oncology Dept.
The Lankenau Hospital
100 Lancaster Avenue
Wynnewood, PA  19096             $  7,554.68      $  5,638.51       62,996    $  1,916.17       15,237      247,889
                                 -----------      -----------       ------    -----------       ------      -------

            Totals             $5,046,524.48    $3,766,524.48   42,081,556  $1,280,000.00   10,178,571  165,589,736
            ------
</TABLE>

<TABLE>
<CAPTION>
                                                    Second Closing
                                                    --------------

                                                   Shares
                                                   ------
                                 Cash Purchase    Purchased    Aggregate    Aggregate
                                 -------------    ---------    ---------    ---------
                                  Price to        from the     Purchase      Shares
                                  --------        --------     --------      ------
                                  the Company      Company       Price      Purchased
                                  -----------      -------       -----      ---------

<S>                               <C>               <C>        <C>              <C>
Albert DeNittis
c/o Radiation Oncology Dept.
The Lankenau Hospital
100 Lancaster Avenue
Wynnewood, PA  19096              $  2,445.32       30,567     $ 10,000.00      356,689
                                  -----------       ------     -----------      -------

                                $1,633,475.52   20,418,444   $6,680,000.00  238,268,307
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]