Document:

EXHIBIT 10.7

THE SECURITIES  REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT  THERETO UNDER SUCH ACT AND APPLICABLE  LAWS OR
AN EXEMPTION FROM THE REGISTRATION  REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS
OR AN OPINION OF COUNSEL  SATISFACTORY TO THE COMPANY THAT SUCH  REGISTRATION IS
NOT REQUIRED.

WARRANT ISSUE DATE:  December 6, 2004

                    WARRANT TO PURCHASE SERIES A COMMON STOCK
                                       OF
                               SWISS MEDICA, INC.

      This certifies  that, for value received,  STRATEGIC  EQUITY CORP., or its
registered assigns ("HOLDER"), is entitled,  subject to the terms and conditions
set forth  herein,  to purchase  from Swiss  Medica,  Inc.  (the  "COMPANY"),  a
Delaware  corporation,  350,000  shares of Series A Common  Stock of the Company
(the "SERIES A COMMON  STOCK").  The term "WARRANT" as used herein shall include
this Warrant, which is issued pursuant to that certain Note and Warrant Purchase
Agreement by and among the Company and the Holder,  dated as of December 6, 2004
(the  "PURCHASE  AGREEMENT")  as the  same  may  from  time to time be  amended,
modified or supplemented, and any warrants delivered in substitution or exchange
therefor as provided herein.

      1. TERM OF WARRANT.  Subject to the terms and conditions set forth herein,
this  Warrant  shall  be  exercisable,  in whole  or in  part,  during  the term
commencing on the Warrant Issue Date set forth above (the "WARRANT ISSUE DATE"),
and  ending at 5:00 p.m.,  Eastern  Standard  Time,  on the day prior to the 5th
anniversary of the Warrant Issue Date (the "Term").

      2.  EXERCISE  PRICE.  The  exercise  price at which  this  Warrant  may be
exercised  shall be equal to $0.42  per  share,  as such  Exercise  Price may be
adjusted from time to time pursuant to Section 9 hereof (the "EXERCISE PRICE").

      3. EXERCISE OF WARRANT.

            (a) Method of Exercise.  The  purchase  rights  represented  by this
Warrant are  exercisable by the Holder in whole or in part, at any time, or from
time to time,  during the Term,  by the surrender of this Warrant and the Notice
of Exercise  annexed hereto duly completed and executed on behalf of the Holder,
at the  principal  office of the Company (or such other  office or agency of the
Company as it may designate by notice in writing to the Holder at the address of
the Holder  appearing on the books of the  Company),  along with full payment of
the aggregate Exercise Price, in cash or by check acceptable to the Company,  in
lawful United States currency.

<PAGE>

            (b) Issuance of Shares.  This  Warrant  shall be deemed to have been
exercised  immediately  prior  to the  close  of  business  on the  date  of its
surrender for exercise as provided above, and the person entitled to receive the
shares of Series A Common Stock issuable upon such exercise shall be treated for
all  purposes as the holder of record of such shares as of the close of business
on such date. As promptly as  practicable on or after such date and in any event
within ten (10) business days thereafter, the Company at its expense shall issue
and deliver to the person or persons  entitled to receive the same a certificate
or  certificates  for the number of shares  issuable upon such exercise.  In the
event that this Warrant is  exercised  in part,  the Company at its expense will
execute and deliver a new  Warrant of like tenor  exercisable  for the number of
shares for which this Warrant may then be exercised.

      4. NO FRACTIONAL  SHARES.  No  fractional  shares shall be issued upon the
exercise of this Warrant.  In lieu of any  fractional  share to which the Holder
would otherwise be entitled (after  aggregating all shares that are being issued
upon such exercise), the Company shall make a cash payment equal to the Exercise
Price of one share multiplied by such fraction.

      5. REPLACEMENT OF WARRANT. On receipt of evidence reasonably  satisfactory
to the Company of the loss,  theft,  destruction  or mutilation of this Warrant,
and upon delivery of an indemnity agreement reasonably  satisfactory in form and
substance to the Company, the Company shall execute and deliver, in lieu of this
Warrant, a new warrant of like tenor and amount.

      6. NO RIGHTS AS STOCKHOLDERS.  The Holder shall not be entitled to vote or
receive  dividends or be deemed the holder of Series A Common Stock or any other
securities  of the  Company  that may at any time be  issuable  on the  exercise
hereof for any  purpose,  nor shall  anything  contained  herein be construed to
confer  upon the  Holder,  as such,  any of the rights of a  stockholder  of the
Company or any right to vote for the  election of  directors  or upon any matter
submitted to stockholders at any meeting thereof or to give or withhold  consent
to any corporate action (whether upon any  recapitalization,  issuance of stock,
reclassification  of stock,  change of par  value,  or change of stock to no par
value, consolidation,  merger, conveyance, or otherwise) or to receive notice of
meetings, or to receive dividends or subscription rights or otherwise until this
Warrant shall have been exercised as provided herein.

      7. COMPLIANCE WITH SECURITIES LAWS.

            (a) The Holder of this Warrant,  by acceptance hereof,  acknowledges
that this  Warrant  and the  shares of Series A Common  Stock to be issued  upon
exercise hereof are being acquired for investment,  and that the Holder will not
offer,  sell or  otherwise  dispose  of this  Warrant  or any shares of Series A
Common Stock to be issued upon exercise hereof except under  circumstances  that
will not result in a violation of the Act or any state securities laws.

            (b) This Warrant and all shares of Series A Common Stock issued upon
exercise hereof shall be stamped or imprinted with a legend in substantially the
following form (in addition to any legend required by state securities laws):

                                      -2-
<PAGE>

      THE  SECURITIES  REPRESENTED  HEREBY  HAVE NOT BEEN  REGISTERED  UNDER THE
      SECURITIES  ACT OF 1933, AS AMENDED,  OR ANY APPLICABLE  STATE  SECURITIES
      LAWS, AND MAY NOT BE SOLD,  OFFERED FOR SALE,  PLEDGED OR  HYPOTHECATED IN
      THE ABSENCE OF A  REGISTRATION  STATEMENT IN EFFECT WITH  RESPECT  THERETO
      UNDER SUCH ACT AND APPLICABLE  LAWS OR AN EXEMPTION FROM THE  REGISTRATION
      REQUIREMENTS  OF SUCH ACT AND  APPLICABLE  LAWS OR AN  OPINION  OF COUNSEL
      SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

      8. AMENDMENTS AND WAIVERS.

            (a)  Except as  otherwise  provided  herein,  this  Warrant,  or any
provision  hereof,  may be amended,  waived,  discharged or terminated only by a
statement  in  writing  signed by the party  against  which  enforcement  of the
change, waiver, discharge or termination is sought.

            (b) Any term or  condition  of this  Warrant may be amended with the
written consent of the Company and the Holder.

            (c) No  waivers  of,  or  exceptions  to,  any  term,  condition  or
provision of this Warrant, in any one or more instances,  shall be deemed to be,
or construed as, a further or continuing  waiver of any such term,  condition or
provision.

      9. ADJUSTMENTS.  The Exercise Price and the shares  purchasable  hereunder
are subject to adjustment from time to time as follows:

            (a) Merger,  Sale of Assets,  etc. If at any time while this Warrant
is exercisable and unexpired there shall be (i) a  reorganization  (other than a
combination,  reclassification,  exchange  or  subdivision  of shares  otherwise
provided for herein), (ii) a merger or consolidation of the Company with or into
another  corporation  in which the  Company is not the  surviving  entity,  or a
reverse  triangular  merger in which the Company is the surviving entity but the
shares of the  Company's  capital  stock  outstanding  immediately  prior to the
merger are converted by virtue of the merger into other property, whether in the
form of  securities,  cash or  otherwise,  or  (iii) a sale or  transfer  of the
Company's  properties  and assets as, or  substantially  as, an  entirety to any
other  corporation  or other  entity,  then,  as a part of such  reorganization,
merger, consolidation,  sale or transfer, lawful provision shall be made so that
the holder of this Warrant shall thereafter be entitled to receive upon exercise
of this  Warrant,  during the period  specified  herein and upon  payment of the
Exercise Price then in effect, the number of shares of stock or other securities
or property of the successor  corporation  or other entity  resulting  from such
reorganization, merger, consolidation, merger, sale or transfer that a holder of
the shares deliverable upon exercise of this Warrant would have been entitled to
receive in such reorganization,  consolidation, merger, sale or transfer if this
Warrant  had been  exercised  immediately  before such  reorganization,  merger,
consolidation,  sale or transfer,  all subject to further adjustment as provided
in this Section.  The foregoing  provision of this Section shall similarly apply
to successive reorganizations,  consolidations, mergers, sales and transfers and
to the stock or securities of any other  corporation or other entity that are at
the time receivable upon the exercise of this Warrant.

                                      -3-
<PAGE>

            (b)  Reclassification,  etc. If the Company,  at any time while this
Warrant is  exercisable  and  unexpired,  by  reclassification  of securities or
otherwise,  shall change any of the securities as to which purchase rights under
this  Warrant  exist into the same or a different  number of  securities  of any
other class or classes,  this Warrant  shall  thereafter  represent the right to
acquire such number and kind of  securities  as would have been  issuable as the
result of such change with  respect to the  securities  that were subject to the
purchase rights under this Warrant immediately prior to such reclassification or
other change and the Exercise Price therefor  shall be  appropriately  adjusted,
all subject to further adjustment as provided in this Section.

            (c) Split,  Subdivision or Combination of Shares.  If the Company at
any time while this Warrant is exercisable and unexpired shall split,  subdivide
or combine the securities as to which purchase  rights under this Warrant exist,
into a different  number of securities of the same class, the Exercise Price for
such  securities  shall be  proportionately  decreased in the case of a split or
subdivision or  proportionately  increased in the case of a combination  and the
number of such securities  shall be  proportionately  increased in the case of a
split or subdivision or proportionately decreased in the case of a combination.

            (d)  Adjustments  for  Dividends  in Stock or  other  Securities  or
Property. If while this Warrant is exercisable and unexpired, the holders of the
securities  as to which  purchase  rights  under this Warrant  exist  (including
without  limitation  securities  into which such securities may be converted) at
the time shall  have  received,  or, on or after the  record  date fixed for the
determination of eligible  stockholders,  shall have become entitled to receive,
without  payment  therefor,  other or  additional  stock or other  securities or
property  (other than cash) of the Company by way of dividend,  then and in each
case,  this Warrant  shall  represent  the right to acquire,  in addition to the
number of shares of the security  receivable upon exercise of this Warrant,  and
without  payment of any additional  consideration  therefor,  the amount of such
other or additional  stock or other  securities or property (other than cash) of
the Company that such holder would hold on the date of such exercise had it been
the holder of record of the security  receivable  upon  exercise of this Warrant
(or upon such  conversion)  on the date  hereof and had  thereafter,  during the
period from the date hereof to and including the date of such exercise, retained
such shares  and/or all other  additional  stock  available  by it as  aforesaid
during such  period,  giving  effect to all  adjustments  called for during such
period by the provisions of this Section.

            (e) Calculations.  All calculations under this Section shall be made
to the nearest four decimal points.

      10. SATURDAYS,  SUNDAYS AND HOLIDAYS. If the last or appointed day for the
taking of any action or the  expiration of any right  granted  herein shall be a
Saturday,  Sunday or legal  holiday  under the laws of the United  States,  then
(notwithstanding  anything  herein to the contrary)  such action may be taken or
such right may be exercised on the next  succeeding  day that is not a Saturday,
Sunday or legal holiday.

      11.  GOVERNING  LAW.  This Warrant  shall be governed by and  construed in
accordance with the laws of the State of Delaware  applicable to agreements made
and to be performed entirely within such State,  without regard to the conflicts
of law principles of such State.

                                      -4-
<PAGE>

      12.  BINDING  EFFECT.  The terms of this Warrant shall be binding upon and
inure  to the  benefit  of the  Company  and the  Holder  and  their  respective
successors and assigns.

      IN WITNESS  WHEREOF,  SWISS  MEDICA,  INC.  has caused this  Warrant to be
executed by its officers thereunto duly authorized.

                                   SWISS MEDICA, INC.

                                   By: /s/ Raghu Kilambi
                                       --------------------------------------
                                       Raghu Kilambi, Chief Executive Officer

                                      -5-
<PAGE>

                               NOTICE OF EXERCISE

      (1) The undersigned hereby (A) elects to purchase _______ shares of Series
A Common Stock of SWISS MEDICA, INC., pursuant to the provisions of Section 3(a)
of the attached Warrant,  and tenders herewith payment of the purchase price for
such shares in full.

      (2) In  exercising  this  Warrant,  the  undersigned  hereby  confirms and
acknowledges that the shares of Series A Common Stock to be issued upon exercise
hereof are being  acquired for  investment,  and that the  undersigned  will not
offer,  sell or  otherwise  dispose of any such shares of Series A Common  Stock
except under circumstances that will not result in a violation of the Securities
Act of 1933, as amended, or any applicable state securities laws.

      (3) Please issue a certificate or certificates representing said shares of
Series A Common Stock in the name of the undersigned or in such other name as is
specified below:

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

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

      (4) Please issue a new Warrant for the unexercised portion of the attached
Warrant in the name of the  undersigned  or in such  other name as is  specified
below:

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

-------    ------------------------
(Date)     (Signature================================================================================

                                  EXHIBIT 10.8

                               SWISS MEDICA, INC.

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

                       Note and Warrant Purchase Agreement

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

                             Dated: December 6, 2004

================================================================================

<PAGE>

                       NOTE AND WARRANT PURCHASE AGREEMENT

      THIS NOTE AND WARRANT PURCHASE  AGREEMENT (this  "Agreement") is effective
as of  December  6,  2004,  by  and  between  Swiss  Medica,  Inc.,  a  Delaware
corporation (the "Company") and Strategic Equity Corp. (the "Lender").

      1. The Loans, Notes and Warrant.

            1.1 The Loans and Notes. Subject to the terms and conditions of this
Agreement,  Lender  agrees to loan the Company an aggregate of $600,000  CAD, in
two equal  installments  of  $300,000  CAD (less the  Financing  Fee (as defined
below)) with the first  installment  being delivered to the Company on or before
December  6,  2004 (the  "First  Advance"),  and the  second  installment  being
delivered to the Company on or before January 3, 2005 (the "Second Advance," and
together with the First Advance,  the "Advances" or the "Loan").  The Loan shall
be governed by the terms and conditions of, and repaid in accordance  with, this
Agreement and two Promissory  Notes each in the principal amount of $300,000 CAD
(the "Notes"),  in the forms  attached  hereto as Exhibit A and Exhibit B, to be
issued by the Company to Lender to evidence  each of the  Advances  the first of
which such Notes (the "December Note"), shall be executed  concurrently with the
December  Closing  (as  defined  below)  and the second of which such Notes (the
"January  Note")  shall be executed  concurrently  with the January  Closing.1.2
Security. The Notes will be secured by a Security Agreement in the form attached
hereto  as  Exhibit  C (the  "Security  Agreement").  Pursuant  to the  Security
Agreement,  the  Company  shall file on behalf of the  Lender,  UCC-1  Financing
Statements and such equivalent forms pursuant to the Personal  Property Security
Act (the "Filings"),  as applicable, in (a) Delaware, and (b) each of the states
in the United  States and  provinces  in Canada  listed on Schedule  1.2,  which
constitute  all states and provinces in which the Company owns personal and real
property  assets (the  "Assets").  The Company  shall  provide  Lender with file
stamped  copies of all Filings  within five (5) days after receipt  thereof from
the applicable government office

            1.3 The Financing Fee. In connection  with each of the First Advance
and the Second  Advance,  the Company  shall pay Lender a financing fee equal to
two percent (2%) of the amount of such  Advance,  or $6,000 CAD (the  "Financing
Fee"),  and such amount shall be deducted  directly from the principal amount of
such advance.

            1.4 The Warrant. Subject to the terms of this Agreement, the Company
shall  issue to Lender a warrant to  purchase  350,000  shares of the  Company's
Class A Common  Stock,  having an exercise  price per share equal to the average
closing bid price of the  Company's  Class A Common Stock (the  "Warrants"),  as
shown  on the  Over-the-Counter  Bulletin  Board,  for  the  five  trading  days
immediately  preceding the date of the December Closing. The Warrant shall be in
the form  attached  hereto as Exhibit D and issued on, and dated as of, the date
of the December  Closing.  The Company  agrees to, within ninety (90) days after
the  December  Closing,  file with the United  States  Securities  and  Exchange
Commission, and to use its best efforts to cause to be declared effective within
one  hundred  eighty  (180)  days after the  December  Closing,  a  registration
statement in such form that the Company is eligible to use to register the Class
A Common Stock  underlying  the Warrant for resale under the  Securities  Act of
1933.

                                      -1-
<PAGE>

      2.  Representations  and  Warranties  of the Company.  The Company  hereby
represents and warrants to Lender as follows:

            2.1  Organization,  Standing and Power. The Company is a corporation
duly  incorporated,  validly existing and in good standing under the laws of the
State of Delaware and has all  requisite  corporate  power and authority to own,
lease and operate its properties and to carry on its business as contemplated to
be conducted.

            2.2  Authority  and  Enforceability.  The Company has all  requisite
corporate  power and  authority  to execute and deliver  this  Agreement  and to
perform  fully its  obligations  hereunder.  The  execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby have been
duly  authorized by all necessary  corporate  action on the part of the Company.
This Agreement has been duly executed and delivered by the Company and, assuming
this  Agreement  constitutes a valid and binding  agreement of the other parties
hereto, this Agreement  constitutes a legal, valid and binding obligation of the
Company,  enforceable against the Company in accordance with its terms,  subject
to  applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or  other
similar  laws now or  hereafter  in effect  relating  to  creditors'  rights and
remedies generally and subject,  as to enforceability,  to general principles of
equity,  regardless of whether  enforceability  is considered in a proceeding at
law or in equity.  When executed and delivered,  the Notes and the Warrant shall
be duly executed and delivered by the Company and, shall constitute legal, valid
and  binding  obligations  of the  Company,  enforceable  against the Company in
accordance  with their  terms,  subject to  applicable  bankruptcy,  insolvency,
reorganization,  moratorium  or other  similar  laws now or  hereafter in effect
relating  to  creditors'  rights  and  remedies  generally  and  subject,  as to
enforceability,   to  general  principles  of  equity,   regardless  of  whether
enforceability is considered in a proceeding at law or in equity.

            2.3  Compliance  With  Other  Instruments.  The  Company  is  not in
violation or default of any term of its charter documents,  each as amended,  or
of any provision of any mortgage, indenture,  agreement,  instrument or contract
to which it is party or by which it is bound or of any judgment,  decree,  order
or writ other than any such  violation  that would not,  individually  or in the
aggregate,  have a  material  adverse  effect  on the  Company.  The  execution,
delivery,  and  performance  of and  compliance  with  this  Agreement,  and the
transactions   contemplated  herein,  will  not  result  in  any  such  material
violation,  or be in conflict  with or  constitute a material  default under any
such term, or result in the creation of any mortgage,  pledge, lien, encumbrance
or charge upon any of the properties or assets of the Company or the suspension,
revocation,  impairment,  forfeiture  or  nonrenewal  of  any  permit,  license,
authorization or approval applicable to the Company,  its business or operations
or any of its assets or properties.

            2.4 Location of Assets and Liens. Schedule 2.4 sets forth each state
in the United States and each  province in Canada,  in which Assets are located.
The Company has good and marketable  title to the Assets and there is no lien or
encumbrance on any of the Assets except for such liens or encumbrances listed on
Schedule 2.4 hereto,  or any lien or encumbrance  imposed by law in the ordinary
course of business for assessments not yet due and payable.

                                      -2-
<PAGE>

            2.5   Brokers.   The  Company  has  no  contract,   arrangement   or
understanding  with any  broker,  finder or similar  agent  with  respect to the
transactions contemplated by this Agreement.

            2.6 Litigation. There is no pending or, to the best knowledge of the
Company,  threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company,
or any of its  affiliates  that would affect the execution by the Company or the
performance by the Company of its obligations under the Agreement other than the
Gleiss  Lutz Hootz  action  referred  to in the  Company's  10QSB filed with the
United  States  Securities  and Exchange  Commission  on November 10, 2004.  The
Company  agrees to provide a  Litigation  search for the states of Delaware  and
Texas and the Canadian provinces of British Columbia and Ontario within five (5)
days of the December Closing to the Lender in support of this

            2.7  Reporting  Company.  The  Company  is a  publicly-held  company
subject to reporting  obligations pursuant to the Securities and Exchange Act of
1934,  as  amended  (the  "Act"),  and has a class of common  shares  registered
pursuant to the Act.  Pursuant  to the  provisions  of the Act,  the Company has
timely  filed all reports and other  materials  required to be filed  thereunder
with the United States  Securities and Exchange  Commission during the preceding
twelve (12) months.

      3. Representations and Warranties of Lender.  Lender hereby represents and
warrants that:

            3.1 Authorization. Lender has full power and authority to enter into
this  Agreement,  and when executed,  this Agreement will constitute a valid and
legally binding obligation of Lender, enforceable in accordance with its terms.

            3.2 Purchase Entirely for Own Account. The Notes and the Warrant and
any Common Stock  issuable  upon  conversion of the Warrant  (collectively,  the
"Securities") will be acquired for investment for Lender's own account, not as a
nominee or agent,  and not with a view to the resale or distribution of any part
thereof,  and the Lender has no  present  intention  of  selling,  granting  any
participation  in, or otherwise  distributing the same. The Lender does not have
any contract,  undertaking,  agreement or  arrangement  with any person to sell,
transfer or grant  participation  in any of the  Securities to such person or to
any third  person.  The Lender has full power and  authority  to enter into this
Agreement.

            3.3  Disclosure of  Information.  The Lender has received all of the
information  it considers  necessary  or  appropriate  for  deciding  whether to
purchase the Note and the Warrant.  The Lender has had an opportunity to ask all
questions  and  receive all answers  from the  Company  regarding  the terms and
conditions of the offering and sale of the Note and the Warrant.

            3.4 Investment  Experience.  The Lender is an investor in securities
of bulletin  board and small cap companies and  acknowledges  that it is able to
fend for itself and bear the  economic  risk of its  investment,  including  the
complete loss  thereof,  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 Note and the Warrant.  The Lender has not been  organized for
the purpose of acquiring the Securities.

                                      -3-
<PAGE>

            3.5 Accredited Lender. The Lender is an "accredited investor" within
the meaning of the  Securities  and  Exchange  Rule 501(a) of  Regulation  D, as
presently in effect.

            3.6 Restricted  Securities.  The Lender understands that the Warrant
and the common stock  underlying  the Warrant are  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  Securities  Act  of  1933,  as  amended  (the
"Securities  Act"), only in certain limited  circumstances.  In this connection,
the Lender is familiar  with Rule 144, as presently in effect,  and  understands
the resale  limitations  imposed  thereby and by the Securities  Act. The Lender
understands  Rule 144 is not currently  available for the sale of the Securities
and may never be so available.

            3.7 Further Limitations on Disposition.  Without in any way limiting
the  representations  set forth above, the Lender further agrees not to make any
disposition  of all or any  portion  of the  Securities  (other  than the  valid
exercise or conversion thereof in accordance with their respective terms) unless
and until:

                  (a) There is then in effect a Registration Statement under the
Securities Act covering such proposed disposition,  and such disposition is made
in accordance with such Registration Statement; or

                  (b) (i) the Lender  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
requested by the Company,  the Lender shall have  furnished  the Company with an
opinion  of  counsel,   reasonably   satisfactory  to  the  Company,  that  such
disposition  will not require  registration  of such shares under the Securities
Act or registration or qualification under any applicable state securities laws.

            3.8 Legends.  Lender  understands  and agrees that the  certificates
evidencing the  Securities may bear the following  legend or a similar legend of
like tenor:

      "THESE  SECURITIES  HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF
      1933, AS AMENDED,  OR THE  SECURITIES  LAWS OF ANY STATE.  THEY MAY NOT BE
      SOLD,  OFFERED  FOR SALE,  PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE OF A
      REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH
      ACT OR AN  OPINION  OF  COUNSEL  SATISFACTORY  TO THE  COMPANY  THAT  SUCH
      REGISTRATION IS NOT REQUIRED."

      4. The Closings4.1  Time and Place.  The purchase and sale of the December
Note shall take place on December 6, 2004 (the "December  Closing") at such time
and place as the parties  shall  mutually  agree.  The  purchase and sale of the
January  Note shall take place on January 3, 2005 (the  "January  Closing,"  and
together with the December  Closing,  the  "Closings") at such time and place as
the parties shall mutually agree.

                                      -4-
<PAGE>

            4.2 Closing  Deliveries.  At the December Closing,  the Company will
deliver to Lender the duly executed  December  Note and the Warrant,  and Lender
shall wire transfer  $294,000.00 CAD to the Company's bank account  according to
the wire transfer  instructions attached hereto as Exhibit E (the "Wire Transfer
Instructions").  At the January Closing,  the Company will deliver to Lender the
duly executed  January Note, and Lender shall wire transfer  $294,000.00  CAD to
the Company's bank account according to the Wire Transfer Instructions.

            4.3  Conditions  to  Lender's  Obligations  at  the  Closings.   The
obligations  of Lender at the  Closings  are subject to the  fulfillment,  on or
prior to the Closings, of each of the following conditions,  any of which may be
waived in whole or in part by the Lender:

                  (a) The  representations and warranties made by the Company in
this  Agreement  shall be true and  correct  when  made,  and  shall be true and
correct on the dates of the  Closings  with the same force and effect as if they
had been made on and as of such dates.

                  (b) The Company  shall have  performed  and complied  with all
agreements,  obligations  and  conditions  contained in this  Agreement that are
required to be performed or complied  with by it on or prior to the dates of the
Closings.

                  (c) Except for the notices  required or  permitted to be filed
after the dates of Closings pursuant to applicable  federal and state securities
laws,  the Company shall have obtained all  governmental  approvals  required in
connection with the lawful sale and issuance of the Notes and the Warrant.

                  (d) At the Closings, the sale and issuance by the Company, and
the purchase by Lender,  of the Notes and the Warrant shall be legally permitted
by all laws and regulations to which the Lender and/or the Company are subject.

            4.4  Conditions to the Company's  Obligations  at the Closings.  The
Company's obligation to issue and sell the Notes and the Warrant at the Closings
is subject to the fulfillment, to the Company's satisfaction, on or prior to the
dates of the Closings, of the following  conditions,  any of which may be waived
in whole or in part by the Company:

                  (a) The  representations  and warranties made by the Lender in
this  Agreement  shall be true and  correct  when  made,  and  shall be true and
correct on the dates of the  Closings  with the same force and effect as if they
had been made on and as of such dates.

                  (b) Except for any notices  required or  permitted to be filed
after the dates of Closings  pursuant to applicable  federal or state securities
laws,  the Company shall have obtained all  governmental  approvals  required in
connection with the lawful sale and issuance of the Securities.

                  (c) At the Closings, the sale and issuance by the Company, and
the purchase by Lender,  of the Notes and the Warrant shall be legally permitted
by all laws and regulations to which the Lender and/or the Company are subject.

                                      -5-
<PAGE>

            5. Expenses.  The Company shall  reimburse the Lender for legal fees
incurred  by  Lender  in  completing  the  transactions   contemplated  by  this
Agreement, within 10 days of receiving proper documentation for such expenses.

            6.  Default.  The  Company  agrees  that  if any  representation  or
warranty  made by the  Company  herein is found or deemed to be  breached by the
Company such breach shall be considered an event of Default and the Lender shall
have the remedies available in accordance with the Agreement, the Notes, and the
Security Agreement dated December 6, 2004.

      7. Miscellaneous.

            7.1Waivers and Amendments.  Any provision of this Agreement,  any of
the Notes, and the Warrant may be amended,  waived or modified (either generally
or in a particular instance,  either retroactively or prospectively,  and either
for a specified period of time or indefinitely), upon the written consent of the
Company and the Lender.

            7.2 Governing Law. This  Agreement,  the Notes and the Warrant shall
be governed by and construed in accordance with Delaware law,  without regard to
the conflict of laws provisions thereof.

            7.3 Successors and Assigns.  Except as otherwise  expressly provided
herein,  the  provisions  hereof  shall  inure to the benefit of, and be binding
upon,  the  successors,  assigns,  heirs,  executors and  administrators  of the
parties hereto.

            7.4  Entire  Agreement.   This  Agreement  (including  the  exhibits
attached  hereto),  the Notes and the  Warrant  constitute  the full and  entire
understanding  and  agreement  between the parties  with regard to the  subjects
hereof and thereof.

            7.5  Notices.  Any  notice  or  communication  required  to be given
hereunder may be delivered by hand, deposited with an overnight courier, sent by
confirmed  facsimile,  or mailed by  registered  or  certified  mail,  if to the
Company, to its Chief Executive Officer at its corporate headquarters, and if to
the Lender, to its President at Suite 300, 630 - 8th Avenue SW, Calgary, Alberta
T2P 1G6.  Notice shall be deemed  received on the date sent if sent by facsimile
or personal  delivery;  three days after the date sent if sent by  registered or
certified mail; and one day after the date it is sent by overnight courier.

            7.6  Severability  of  this  Agreement.  If any  provision  of  this
Agreement   shall  be   judicially   determined   to  be  invalid,   illegal  or
unenforceable,  the  validity,  legality  and  enforceability  of the  remaining
provisions shall not in any way be affected or impaired thereby.

            7.7  Counterparts.  This  Agreement may be executed in any number of
counterparts,  each of which  shall be an  original,  but all of which  together
shall be deemed to constitute one instrument.

                                      -6-
<PAGE>

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

                                  COMPANY:

                                  SWISS MEDICA, INC.
                                  a Delaware corporation

                                  By: /s/ Raghu N. Kilambi
                                      -----------------------------------------
                                      Raghu N. Kilambi, Chief Executive Officer

                                      Swiss Medica, Inc.
                                      53 Yonge Street, 3rd Floor
                                      Toronto, Ontario, Canada  M5E 1J3
                                      Attn:  Raghu Kilambi

                                  LENDER:

                                  STRATEGIC EQUITY CORP.

                                  By: /s/ David Bulloch
                                      -----------------------------------------
                                      David Bulloch

                                  Title:
                                        -------------------------------------

                                        Strategic Equity Corp.
                                        Suite 300, 630 - 8th Avenue SW
                                        Calgary, Alberta  T2P 1G6
                                        Attn: David Bulloch

                                      -7-
<PAGE>

                                    EXHIBIT A

                                  DECEMBER NOTE

                                       A-1

<PAGE>

                                    EXHIBIT B

                                  JANUARY NOTE

                                      B-1

<PAGE>

                                    EXHIBIT C

                               SECURITY AGREEMENT

                                       C-1

<PAGE>

                                    EXHIBIT D

                                     WARRANT

                                       D-1

<PAGE>

                                    EXHIBIT E

                           WIRE TRANSFER INSTRUCTIONS

         Bank of Montreal
         First Canadian Place
         Toronto, Ontario
         M5X 1A3

         Bank No.:    001
         Transit:    00022
         Account No.:       1386256
         Account Name:    Swiss Medica Inc.

                                       E-1

<PAGE>

                                    Security

         Texas

         Ontario

         British Columbia

                                  Schedule 1.2

<PAGE>

                                  Schedule 2.4

                          Location of Assets and Liens

      Texas, USA - no liens or encumbrances Ontario, Canadano liens or
      encumbrances

      British Columbia, Canada no liens or encumbrances

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