Document:

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AND MAY NOT
BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR COMPLIANCE WITH AN AVAILABLE EXEMPTION
FROM REGISTRATION. THE COMPANY MAY REFUSE TO AUTHORIZE ANY TRANSFER OF THE
SECURITIES IN RELIANCE ON AN EXEMPTION FROM REGISTRATION UNTIL IT HAS RECEIVED
AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
REGISTRATION IS NOT REQUIRED.

THE COMPANY IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OF STOCK OR MORE THAN ONE
SERIES OF ANY CLASS OF STOCK. THE DESIGNATIONS, PREFERENCES AND RELATIVE,
PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF THE SHARES OF EACH CLASS OR
SERIES THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH
RIGHTS, ARE SET FORTH IN THE ARTICLES OF INCORPORATION OF THE COMPANY. A COPY OF
SAID ARTICLES OF INCORPORATION WILL BE FURNISHED FREE OF CHARGE TO THE HOLDER OF
THIS CERTIFICATE UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF MAY BE
TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE
COMPANY AND THE HOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
COMPANY.

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                      BIOFORCE NANOSCIENCES HOLDINGS, INC.

                              Expires June 10, 2013

Date of Issuance: June 10, 2008                       Number of Shares: ________

      FOR VALUE RECEIVED, the undersigned, BioForce Nanosciences Holdings, Inc.,
a Nevada corporation (together with its successors and assigns, the "Issuer"),
hereby certifies that ________________ or its registered assigns is entitled to
subscribe for and purchase, during the Term (as hereinafter defined), up to
_____________ Thousand (________) shares (subject to adjustment as hereinafter
provided, the "Warrant Share Number") of the duly authorized, validly issued,
fully paid and non-assessable Common Stock of the Issuer, at an exercise price

                                      -1-
<PAGE>

per share equal to the Warrant Price then in effect, subject, however, to the
provisions and upon the terms and conditions hereinafter set forth. Capitalized
terms used in this Warrant and not otherwise defined herein shall have the
respective meanings specified in Section 8 hereof.

      1. Term. The term of this Warrant shall commence on June 10, 2008 and
shall expire at 6:00 p.m., eastern time, on June 10, 2013 (such period being the
"Term").

      2. Method of Exercise; Payment; Issuance of New Warrant; Transfer and
Exchange.

      (a) Time of Exercise. The purchase rights represented by this Warrant may
be exercised in whole or in part during the Term.

      (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised (the "Exercise Price"), payable at Holder's election (i) by certified
or official bank check or by wire transfer to an account designated by the
Issuer, (ii) by "cashless exercise" in accordance with the provisions of
subsection (c) of this Section 2, but only when a registration statement under
the Securities Act providing for the resale of the Warrant Stock is not then in
effect, or (iii) by a combination of the foregoing methods of payment selected
by the Holder of this Warrant.

      (c) Voluntary Cashless Exercise. Commencing one (1) year following the
Original Issue Date if (i) the Per Share Market Value of one share of Common
Stock is greater than the Warrant Price (at the date of calculation as set forth
below) and (ii) a registration statement under the Securities Act providing for
the resale of the Warrant Stock is not in effect, in lieu of exercising this
Warrant by payment of cash, the Holder may exercise this Warrant by a cashless
exercise and shall receive the number of restricted shares of Common Stock equal
to an amount (as determined below) by surrender of this Warrant at the principal
office of the Issuer together with the properly endorsed Notice of Exercise in
which event the Issuer shall issue to the Holder a number of restricted shares
of Common Stock computed using the following formula:

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

Where      X =    the number of restricted shares of Common Stock to be issued
                  to the Holder.

           Y =    the number of shares of Common Stock purchasable upon exercise
                  of all of the Warrant or, if only a portion of the Warrant is
                  being exercised, the portion of the Warrant being exercised.

           A =    the Warrant Price.

           B =    the Per Share Market Value of one share of Common Stock.

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<PAGE>

      (c) Issuance of Stock Certificates. In the event of any exercise of this
Warrant in accordance with and subject to the terms and conditions hereof,
certificates for the shares of Warrant Stock so purchased shall be dated the
date of such exercise and delivered to the Holder hereof within a reasonable
time, not exceeding three (3) Trading Days after the Issuer and its transfer
agent have received from the Holder this Warrant, a duly executed exercise form,
the Exercise Price and all fees and expenses required hereby in support of such
exercise (the "Delivery Date") or, at the request of the Holder (provided that a
registration statement under the Securities Act providing for the resale of the
Warrant Stock is then in effect), issued and delivered to the Depository Trust
Company ("DTC") account on the Holder's behalf via the Deposit Withdrawal Agent
Commission System ("DWAC") no later than the Delivery Date, and the Holder
hereof shall be deemed for all purposes to be the holder of the shares of
Warrant Stock so purchased as of the date of such exercise. Notwithstanding the
foregoing to the contrary, the Issuer or its transfer agent shall only be
obligated to issue and deliver the shares to the DTC on the Holder's behalf via
DWAC if such exercise is in connection with a sale and the Issuer and its
transfer agent are participating with DTC through the DWAC system. The Holder
shall deliver this original Warrant (or an indemnification undertaking with
respect to such Warrant in the case of its loss, theft or destruction), along
with a duly executed exercise form, the Exercise Price and all fees and expenses
required hereby in support of such exercise, at such time that this Warrant is
exercised. If this Warrant shall have been exercised in part, the Issuer shall
deliver to the Holder by the Delivery Date a new Warrant evidencing the rights
of Holder to purchase the unpurchased Warrant Shares called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant.

      (d) Transferability of Warrant. Subject to Section 2(e) hereof, this
Warrant may be transferred by a Holder, in whole or in part, without the consent
of the Issuer. If transferred pursuant to this paragraph, this Warrant may be
transferred on the books of the Issuer by the Holder hereof in person or by duly
authorized attorney, upon surrender of this Warrant at the principal office of
the Issuer, properly endorsed (by the Holder executing an assignment in the form
attached hereto) and upon payment of any necessary transfer tax or other
governmental charge imposed upon such transfer. This Warrant is exchangeable at
the principal office of the Issuer for new Warrants to purchase the same
aggregate number of shares of Warrant Stock, each new Warrant to represent the
right to purchase such number of shares of Warrant Stock as the Holder shall
designate at the time of such exchange. All Warrants issued on transfers or
exchanges shall be dated the Original Issue Date and shall be identical with
this Warrant except as to the number of shares of Warrant Stock issuable
pursuant thereto.

      (e) Compliance with Securities Laws.

            (i) The Holder of this Warrant, by acceptance hereof, acknowledges
      that this Warrant and the shares of Warrant Stock to be issued upon

                                      -3-
<PAGE>

      exercise hereof are being acquired solely for the Holder's own account and
      not as a nominee for any other party, and for investment, and that the
      Holder will not offer, sell or otherwise dispose of this Warrant or any
      shares of Warrant Stock to be issued upon exercise hereof except pursuant
      to an effective registration statement, or an exemption from registration,
      under the Securities Act and any applicable state securities laws.

            (ii) Except as provided in paragraph (iii) below, this Warrant and
      all certificates representing shares of Warrant Stock issued upon exercise
      hereof shall be stamped or imprinted with a legend in substantially the
      following form:

            THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
            UNDER THE UNITED STATES SECURITIES ACT OF 1933, AND MAY
            NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
            HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF
            UNDER SUCH ACT OR COMPLIANCE WITH AN AVAILABLE EXEMPTION
            FROM REGISTRATION. THE COMPANY MAY REFUSE TO AUTHORIZE ANY
            TRANSFER OF THE SECURITIES IN RELIANCE ON AN EXEMPTION
            FROM REGISTRATION UNTIL IT HAS RECEIVED AN OPINION OF
            COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT
            SUCH REGISTRATION IS NOT REQUIRED.

            THE COMPANY IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OF
            STOCK OR MORE THAN ONE SERIES OF ANY CLASS OF STOCK. THE
            DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING,
            OPTIONAL OR OTHER SPECIAL RIGHTS OF THE SHARES OF EACH
            CLASS OR SERIES THEREOF AND THE QUALIFICATIONS,
            LIMITATIONS OR RESTRICTIONS OF SUCH RIGHTS, ARE SET FORTH
            IN THE ARTICLES OF INCORPORATION OF THE COMPANY. A COPY OF
            SAID ARTICLES OF INCORPORATION WILL BE FURNISHED FREE OF
            CHARGE TO THE HOLDER OF THIS CERTIFICATE UPON WRITTEN
            REQUEST TO THE SECRETARY OF THE COMPANY.

            THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY
            IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE
            COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE
            WITH THE SECRETARY OF THE COMPANY.

                                 -4-
<PAGE>

            (iii) The Issuer agrees to reissue this Warrant or certificates
      representing any shares of the Warrant Stock without the legend set forth
      above, if at such time, prior to making any transfer of any such
      securities, the Holder shall give written notice to the Issuer describing
      the manner and terms of such transfer. Such proposed transfer will not be
      effected until: (a) either (i) the Issuer has received an opinion of
      counsel reasonably satisfactory to the Issuer, to the effect that the
      registration of such securities under the Securities Act is not required
      in connection with such proposed transfer, (ii) a registration statement
      under the Securities Act covering such proposed disposition has been filed
      by the Issuer with the Securities and Exchange Commission and has become
      effective under the Securities Act and the Holder has represented that the
      shares of Warrant Stock have been or will be sold, (iii) the Issuer has
      received other evidence reasonably satisfactory to the Issuer that such
      registration and qualification under the Securities Act and state
      securities laws are not required, or (iv) the Holder provides the Issuer
      with reasonable assurances that such security can be sold pursuant to Rule
      144 under the Securities Act; and (b) either (i) the Issuer has received
      an opinion of counsel, reasonably satisfactory to the Issuer, to the
      effect that registration or qualification under the securities or "blue
      sky" laws of any state is not required in connection with such proposed
      disposition, or (ii) compliance with applicable state securities or "blue
      sky" laws has been effected or a valid exemption exists with respect
      thereto. The Issuer will respond to any such notice from the Holder within
      three (3) Trading Days. In the case of any proposed transfer under this
      Section 2(e), the Issuer will use reasonable efforts to comply with any
      such applicable state securities or "blue sky" laws, but shall in no event
      be required, (x) to qualify to do business in any state where it is not
      then qualified, (y) to take any action that would subject it to tax or to
      the general service of process in any state where it is not then subject,
      or (z) to comply with state securities or "blue sky" laws of any state for
      which registration by coordination is unavailable to the Issuer. The
      restrictions on transfer contained in this Section 2(e) shall be in
      addition to, and not by way of limitation of, any other restrictions on
      transfer contained in any other section of this Warrant. Whenever a
      certificate representing the shares of Warrant Stock is required to be
      issued to a the Holder without a legend, in lieu of delivering physical
      certificates representing the shares of Warrant Stock, the Issuer shall
      use its reasonable best efforts to cause its transfer agent to
      electronically transmit the shares of Warrant Stock to the Holder by
      crediting the account of the Holder's prime broker with DTC through its
      DWAC system (to the extent not inconsistent with any provisions of this
      Warrant or the Purchase Agreement). Notwithstanding the foregoing to the
      contrary, the Issuer or its transfer agent shall only be obligated to
      issue and deliver the shares to the DTC on the Holder's behalf via DWAC if
      such exercise is in connection with a sale and the Issuer and its transfer
      agent are participating in DTC through the DWAC system.

      (f) Accredited Investor Status. In no event may the Holder exercise this
Warrant in whole or in part unless the Holder is an "accredited investor" as
defined in Regulation D under the Securities Act.

                                      -5-
<PAGE>

      3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.

      (a) Stock Fully Paid. The Issuer represents, warrants, covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise hereunder will, when issued in accordance with the
terms of this Warrant, be duly authorized, validly issued, fully paid and
nonassessable and free from all taxes, liens and charges created by or through
the Issuer. The Issuer further covenants and agrees that during the period
within which this Warrant may be exercised, the Issuer will at all times have
authorized and reserved for the purpose of issuance upon exercise of this
Warrant a sufficient number of shares of Common Stock to provide for the
exercise of this Warrant.

      (b) Listing. The Issuer shall list the shares of Warrant Stock on the OTC
Bulletin Board (or any other securities exchange, quotation system or market, if
any, on which shares of Common Stock issued by the Company are then listed or
traded).

      (c) Covenants. The Issuer shall not by any action including, without
limitation, amending the Articles of Incorporation or the by-laws of the Issuer,
or through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other action, avoid or seek to
avoid the observance or performance of any of the terms of this Warrant, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such actions as may be necessary or appropriate to protect
the rights of the Holder hereof against dilution (to the extent specifically
provided herein) or impairment. Without limiting the generality of the
foregoing, the Issuer will (i) not permit the par value, if any, of its Common
Stock to exceed the then effective Warrant Price, (ii) not amend or modify any
provision of the Articles of Incorporation or by-laws of the Issuer in any
manner that would adversely affect the rights of the Holders of the Warrants,
(iii) take all such action as may be reasonably necessary in order that the
Issuer may validly and legally issue fully paid and nonassessable shares of
Common Stock, free and clear of any liens, claims, encumbrances and restrictions
(other than as provided herein) upon the exercise of this Warrant, and (iv) use
its best efforts to obtain all such authorizations, exemptions or consents from
any public regulatory body having jurisdiction thereof as may be reasonably
necessary to enable the Issuer to perform its obligations under this Warrant.

      (d) Loss, Theft, Destruction of Warrants. Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft, destruction
or mutilation of any Warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity or security satisfactory to the Issuer
or, in the case of any such mutilation, upon surrender and cancellation of such
Warrant, the Issuer will make and deliver, in lieu of such lost, stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

                                      -6-
<PAGE>

      4. Adjustment of Warrant Price and Number of Shares Issuable Upon
Exercise. The Warrant Price and the Warrant Share Number shall be subject to
adjustment from time to time as set forth in this Section 4. The Issuer shall
give the Holder notice of any event described below which requires an adjustment
pursuant to this Section 4 in accordance with the notice provisions set forth in
Section 5.

      (a) Recapitalization, Reorganization, Reclassification, Consolidation,
Merger or Sale.

            (i) In case the Issuer after the Original Issue Date shall do any of
      the following (each, a "Triggering Event"): (a) consolidate or merge with
      or into any other Person and the Issuer shall not be the continuing or
      surviving corporation of such consolidation or merger, or (b) permit any
      other Person to consolidate with or merge into the Issuer and the Issuer
      shall be the continuing or surviving Person but, in connection with such
      consolidation or merger, any Capital Stock of the Issuer shall be changed
      into or exchanged for Securities of any other Person or cash or any other
      property, or (c) transfer all or substantially all of its properties or
      assets to any other Person, or (d) effect a capital reorganization or
      reclassification of its Capital Stock, then, and in the case of each such
      Triggering Event, proper provision shall be made to the Warrant Price and
      the Warrant Share Number so that, upon the basis and the terms and in the
      manner provided in this Warrant, the Holder of this Warrant shall be
      entitled, upon the exercise hereof at any time after the consummation of
      such Triggering Event (to the extent this Warrant is not exercised prior
      to such Triggering Event), to receive at the Warrant Price (as adjusted to
      take into account the consummation of such Triggering Event), in lieu of
      the Common Stock issuable upon such exercise of this Warrant prior to such
      Triggering Event, the Securities, cash and property to which such Holder
      would have been entitled upon the consummation of such Triggering Event if
      such Holder had exercised the rights represented by this Warrant
      immediately prior thereto (including the right, if any, of a shareholder
      to elect the type of consideration it will receive in connection with the
      Triggering Event), subject to adjustments (subsequent to such corporate
      action) as nearly equivalent as possible to the adjustments provided for
      elsewhere in this Section 4. Immediately upon the occurrence of a
      Triggering Event, the Issuer shall notify the Holder in writing of such
      Triggering Event and provide the calculations in determining the number of
      shares of Warrant Stock, if any, issuable upon exercise of the new warrant
      and the adjusted Warrant Price. Upon the Holder's request, the continuing
      or surviving corporation as a result of such Triggering Event shall issue
      to the Holder a new warrant of like tenor, if any, evidencing the right to
      purchase the adjusted number of shares of Warrant Stock and the adjusted
      Warrant Price pursuant to the terms and provisions of this Section
      4(a)(i). Notwithstanding the foregoing to the contrary, this Section
      4(a)(i) shall only apply if the surviving entity pursuant to any such
      Triggering Event is a company that has a class of equity securities
      registered pursuant to the Securities Exchange Act of 1934, as amended,
      and its common stock is listed or quoted on a national securities
      exchange, national automated quotation system or the OTC Bulletin Board.

            (ii) In the event that the Holder has elected not to exercise this
      Warrant prior to the consummation of a Triggering Event, so long as the
      surviving entity pursuant to any Triggering Event is a company that has a

                                      -7-
<PAGE>

      class of equity securities registered pursuant to the Securities Exchange
      Act of 1934, as amended, and its common stock is listed or quoted on a
      national securities exchange, national automated quotation system or the
      OTC Bulletin Board, the surviving entity and/or each Person (other than
      the Issuer) which may be required to deliver any Securities, cash or
      property upon the exercise of this Warrant as provided herein shall
      assume, by written instrument delivered to, and reasonably satisfactory
      to, the Holder of this Warrant, (A) the obligations of the Issuer under
      this Warrant (and if the Issuer shall survive the consummation of such
      Triggering Event, such assumption shall be in addition to, and shall not
      release the Issuer from, any continuing obligations of the Issuer under
      this Warrant) and (B) the obligation to deliver to the Holder such
      Securities, cash or property as, in accordance with the foregoing
      provisions of this subsection (a), the Holder shall be entitled to
      receive; and the surviving entity and/or each such Person shall have
      similarly delivered to the Holder an opinion of counsel for the surviving
      entity and/or each such Person, which counsel shall be reasonably
      satisfactory to such Holder, or in the alternative, a written
      acknowledgement executed by the President or Chief Financial Officer of
      the Issuer, stating that this Warrant shall thereafter continue in full
      force and effect and the terms hereof (including, without limitation, all
      of the provisions of this subsection (a)) shall be applicable to the
      Securities, cash or property which the surviving entity and/or each such
      Person may be required to deliver upon any exercise of this Warrant or the
      exercise of any rights pursuant hereto.

      (b) Stock Dividends, Subdivisions and Combinations. If at any time the
Issuer shall:

            (i) make or issue or set a record date for the holders of the Common
      Stock for the purpose of entitling them to receive a dividend payable in,
      or other distribution of, shares of Common Stock,

            (ii) subdivide its outstanding shares of Common Stock into a larger
      number of shares of Common Stock, or

            (iii) combine its outstanding shares of Common Stock into a smaller
      number of shares of Common Stock,

then (1) the Warrant Share Number immediately after the occurrence of any such
event shall be adjusted to equal the number of shares of Common Stock which a
record holder of the same number of shares of Common Stock for which this
Warrant is exercisable immediately prior to the occurrence of such event would
own or be entitled to receive after the happening of such event, and (2) the
Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price
then in effect multiplied by (B) the Warrant Share Number immediately prior to
the adjustment divided by (B) the Warrant Share Number immediately after such
adjustment.

      (c) Certain Other Distributions. If at any time the Issuer shall make or
issue or set a record date for the holders of the Common Stock for the purpose
of entitling them to receive any dividend or other distribution of:

                                      -8-
<PAGE>

            (i) cash (other than a cash dividend payable out of earnings or
      earned surplus legally available for the payment of dividends under the
      laws of the jurisdiction of incorporation of the Issuer),

            (ii) any evidences of its indebtedness, any shares of stock of any
      class or any other securities or property of any nature whatsoever (other
      than cash, Common Stock Equivalents or Additional Shares of Common Stock),
      or

            (iii) any warrants or other rights to subscribe for or purchase any
      evidences of its indebtedness, any shares of stock of any class or any
      other securities or property of any nature whatsoever (other than cash,
      Common Stock Equivalents or Additional Shares of Common Stock),

then (1) the number of shares of Common Stock for which this Warrant is
exercisable shall be adjusted to equal the product of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
adjustment multiplied by a fraction (A) the numerator of which shall be the Per
Share Market Value of Common Stock at the date of taking such record and (B) the
denominator of which shall be such Per Share Market Value minus the amount
allocable to one share of Common Stock of any such cash so distributable and of
the fair value (as determined in good faith by the Board and supported by an
opinion from an investment banking firm mutually agreed upon by the Issuer and
the Holder) of any and all such evidences of indebtedness, shares of stock,
other securities or property or warrants or other subscription or purchase
rights so distributable, and (2) the Warrant Price then in effect shall be
adjusted to equal (A) the Warrant Price then in effect multiplied by the number
of shares of Common Stock for which this Warrant is exercisable immediately
prior to the adjustment divided by (B) the number of shares of Common Stock for
which this Warrant is exercisable immediately after such adjustment. A
reclassification of the Common Stock (other than a change in par value, or from
par value to no par value or from no par value to par value) into shares of
Common Stock and shares of any other class of stock shall be deemed a
distribution by the Issuer to the holders of its Common Stock of such shares of
such other class of stock within the meaning of this Section 4(c) and, if the
outstanding shares of Common Stock shall be changed into a larger or smaller
number of shares of Common Stock as a part of such reclassification, such change
shall be deemed a subdivision or combination, as the case may be, of the
outstanding shares of Common Stock within the meaning of Section 4(b).

      (d) Issuance of Additional Shares of Common Stock.

            (i) In the event the Issuer shall at any time following the Original
Issue Date issue any Additional Shares of Common Stock (otherwise than as
provided in the foregoing subsections (a) through (c) of this Section 4), at a
price per share less than the Warrant Price then in effect or without
consideration, then the Warrant Price upon each such issuance shall be adjusted
to that price determined by multiplying the Warrant Price then in effect by a
fraction:

                                      -9-
<PAGE>

                  (A) the numerator of which shall be equal to the sum of (x)
            the number of shares of Outstanding Common Stock immediately prior
            to the issuance of such Additional Shares of Common Stock plus (y)
            the number of shares of Common Stock (rounded to the nearest whole
            share) which the aggregate consideration received by the Issuer for
            such Additional Shares of Common Stock would purchase at a price per
            share equal to the Warrant Price then in effect, and

                  (B) the denominator of which shall be equal to the number of
            shares of Outstanding Common Stock immediately after the issuance of
            such Additional Shares of Common Stock.

            (ii) If the Warrant Price is adjusted as a result of Section
4(d)(i), the Warrant Share Number shall be adjusted to equal (a) the Warrant
Price previously in effect multiplied by (b) the Warrant Share Number
immediately prior to the adjustment, divided by (c) the adjusted Warrant Price.
However, no adjustment of the Warrant Share Number shall be made under this
paragraph upon the issuance of any Additional Shares of Common Stock which are
issued pursuant to the exercise of any Common Stock Equivalents, if any such
adjustment shall previously have been made upon the issuance of such Common
Stock Equivalents (or upon the issuance of any warrant or other rights therefor)
pursuant to Section 4(e).

      (e) Issuance of Common Stock Equivalents. If at any time the Issuer shall
take a record of the holders of its Common Stock for the purpose of entitling
them to receive a distribution of, or shall in any manner (whether directly or
by assumption in a merger in which the Issuer is the surviving corporation)
issue or sell, any Common Stock Equivalents, whether or not the rights to
exchange or convert thereunder are immediately exercisable, and the price per
share for which Additional Shares of Common Stock are issuable upon conversion
or exchange thereof shall be less than the Warrant Price in effect immediately
prior to the time of such issue or sale, or if, after any such issuance of
Common Stock Equivalents, the price per share for which Additional Shares of
Common Stock may be issued thereunder is amended or adjusted, and such price as
so amended shall be less than the Warrant Price in effect at the time of such
amendment or adjustment, then the Warrant Price and the Warrant Share Number
then in effect shall be adjusted as provided in Section 4(d). No further
adjustments of the Warrant Share Number and the Warrant Price then in effect
shall be made upon the actual issue of such Common Stock upon conversion or
exchange of such Common Stock Equivalents.

      (f) Superseding Adjustment. If, at any time after any adjustment of the
Warrant Share Number and the Warrant Price then in effect shall have been made
pursuant to Section 4(e) as the result of any issuance of Common Stock
Equivalents, and (i) such Common Stock Equivalents, or the right of conversion
or exchange associated with such Common Stock Equivalents, shall expire, and all
or a portion of such or the right of conversion or exchange with respect to all
or a portion of such Common Stock Equivalents, as the case may be, shall not
have been exercised, or (ii) the consideration per share for which shares of
Common Stock are issuable pursuant to such Common Stock Equivalents shall be
increased, then such previous adjustment shall be rescinded and annulled and the
Additional Shares of Common Stock which were deemed to have been issued by
virtue of the computation made in connection with such prior adjustment so

                                      -10-
<PAGE>

rescinded and annulled shall no longer be deemed to have been issued by virtue
of such computation. Upon the occurrence of an event set forth in this Section
4(f), there shall be a recomputation made of the effect of such Common Stock
Equivalents on the basis of: (i) treating the number of Additional Shares of
Common Stock theretofore actually issued or issuable pursuant to the previous
exercise of Common Stock Equivalents or any such right of conversion or
exchange, as having been issued on the date or dates of any such exercise and
for the consideration actually received and receivable therefor, and (ii)
treating any such Common Stock Equivalents which then remain outstanding as
having been granted or issued immediately after the time of such increase of the
consideration per share for which Additional Shares of Common Stock are issuable
under such Common Stock Equivalents; whereupon a new adjustment of the Warrant
Share Number and the Warrant Price then in effect shall be made, which new
adjustment shall supersede the previous adjustment so rescinded and annulled.

      (h) Other Provisions applicable to Adjustments under this Section. The
following provisions shall be applicable to the making of adjustments of the
Warrant Share Number and the Warrant Price then in effect provided for in this
Section 4:

            (i) Computation of Consideration. To the extent that any Additional
Shares of Common Stock or any Common Stock Equivalents (or any warrants or other
rights therefor) shall be issued for cash consideration, the consideration
received by the Issuer therefor shall be the amount of the cash received by the
Issuer therefor, or, if such Additional Shares of Common Stock or Common Stock
Equivalents are offered by the Issuer for subscription, the subscription price,
or, if such Additional Shares of Common Stock or Common Stock Equivalents are
sold to underwriters or dealers for public offering without a subscription
offering, the initial public offering price (in any such case subtracting any
amounts paid or receivable for accrued interest or accrued dividends and without
taking into account any compensation, discounts or expenses paid or incurred by
the Issuer for and in the underwriting of, or otherwise in connection with, the
issuance thereof). In connection with any merger or consolidation in which the
Issuer is the surviving corporation (other than any consolidation or merger in
which the previously outstanding shares of Common Stock of the Issuer shall be
changed to or exchanged for the stock or other securities of another
corporation), the amount of consideration therefore shall be deemed to be the
fair value, as determined reasonably and in good faith by the Board, of such
portion of the assets and business of the nonsurviving corporation as the Board
may determine to be attributable to such shares of Common Stock or Common Stock
Equivalents, as the case may be. The consideration for any Additional Shares of
Common Stock issuable pursuant to any warrants or other rights to subscribe for
or purchase the same shall be the consideration received by the Issuer for
issuing such warrants or other rights plus the additional consideration payable
to the Issuer upon exercise of such warrants or other rights. The consideration
for any Additional Shares of Common Stock issuable pursuant to the terms of any
Common Stock Equivalents shall be the consideration received by the Issuer for
issuing warrants or other rights to subscribe for or purchase such Common Stock
Equivalents, plus the consideration paid or payable to the Issuer in respect of
the subscription for or purchase of such Common Stock Equivalents, plus the
additional consideration, if any, payable to the Issuer upon the exercise of the
right of conversion or exchange associated with such Common Stock Equivalents.
In the event of any consolidation or merger of the Issuer in which the Issuer is

                                      -11-
<PAGE>

not the surviving corporation or in which the previously outstanding shares of
Common Stock of the Issuer shall be changed into or exchanged for the stock or
other securities of another corporation, or in the event of any sale of all or
substantially all of the assets of the Issuer for stock or other securities of
any corporation, the Issuer shall be deemed to have issued a number of shares of
its Common Stock for stock or securities or other property of the other
corporation computed on the basis of the actual exchange ratio on which the
transaction was predicated, and for a consideration equal to the fair market
value on the date of such transaction of all such stock or securities or other
property of the other corporation. In the event any consideration received by
the Issuer for any securities consists of property other than cash, the fair
market value thereof at the time of issuance or as otherwise applicable shall be
as determined in good faith by the Board. In the event Common Stock is issued
with other shares or securities or other assets of the Issuer for consideration
which covers both, the consideration computed as provided in this Section
4(h)(i) shall be allocated among such securities and assets as determined in
good faith by the Board.

            (ii) When Adjustments to Be Made. The adjustments required by this
Section 4 shall be made whenever and as often as any specified event requiring
an adjustment shall occur, except that any adjustment of the Warrant Share
Number that would otherwise be required may be postponed (except in the case of
a subdivision or combination of shares of the Common Stock, as provided for in
Section 4(b)) up to, but not beyond the date of exercise if such adjustment
either by itself or with other adjustments not previously made adds or subtracts
less than one percent (1%) of the Warrant Share Number immediately prior to the
making of such adjustment. Any adjustment representing a change of less than
such minimum amount (except as aforesaid) which is postponed shall be carried
forward and made as soon as such adjustment, together with other adjustments
required by this Section 4 and not previously made, would result in a minimum
adjustment or on the date of exercise. For the purpose of any adjustment, any
specified event shall be deemed to have occurred at the close of business on the
date of its occurrence.

            (iii) Fractional Interests. In computing adjustments under this
Section 4, fractional interests in Common Stock shall be taken into account to
the nearest one one-hundredth (1/100th) of a share.

            (iv) When Adjustment Not Required. If the Issuer shall take a record
of the holders of its Common Stock for the purpose of entitling them to receive
a dividend or distribution or subscription or purchase rights and shall,
thereafter and before the distribution to stockholders thereof, legally abandon
its plan to pay or deliver such dividend, distribution, subscription or purchase
rights, then thereafter no adjustment shall be required by reason of the taking
of such record and any such adjustment previously made in respect thereof shall
be rescinded and annulled.

      (i) Form of Warrant after Adjustments. The form of this Warrant need not
be changed because of any adjustments in the Warrant Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

      (j) Escrow of Warrant Stock. If after any property becomes distributable
pursuant to this Section 4 by reason of the taking of any record of the holders

                                      -12-
<PAGE>

of Common Stock, but prior to the occurrence of the event for which such record
is taken, the Holder exercises this Warrant, any shares of Common Stock
otherwise issuable upon exercise of this Warrant because of an adjustment to the
Warrant Share Number or the Warrant Price resulting from such event shall be
deemed the last shares of Common Stock for which this Warrant is exercised
(notwithstanding any other provision to the contrary herein) and such shares or
other property shall be held in escrow for the Holder by the Issuer to be issued
to the Holder upon and to the extent that the event actually takes place, upon
payment of the then-current Exercise Price. Notwithstanding any other provision
to the contrary herein, if the event for which such record was taken fails to
occur or is rescinded, then such escrowed shares shall be cancelled by the
Issuer and escrowed property returned.

      5. Notice of Adjustments. Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to Section 4 hereof (for purposes of this
Section 5, each an "adjustment"), the Issuer shall cause its Chief Financial
Officer to prepare and execute a certificate setting forth, in reasonable detail
and to extent such is not material non-public information, the event requiring
the adjustment, the amount of the adjustment, the method by which such
adjustment was calculated (including a description of the basis on which the
Board made any determination hereunder), and the Warrant Price and Warrant Share
Number after giving effect to such adjustment, and shall cause copies of such
certificate to be delivered to the Holder of this Warrant promptly after each
adjustment. Any dispute between the Issuer and the Holder of this Warrant with
respect to the matters set forth in such certificate may at the option of the
Holder of this Warrant be submitted to a national or regional accounting firm
reasonably acceptable to the Issuer and the Holder. The firm selected by the
Holder as provided in the preceding sentence shall be instructed to deliver a
written opinion as to such matters to the Issuer and the Holder within thirty
(30) days after submission to it of such dispute. Such opinion shall be final
and binding on the parties hereto. The costs and expenses of the initial
accounting firm shall be paid equally by the Issuer and the Holder.

      6. Fractional Shares. No fractional shares of Warrant Stock will be issued
in connection with any exercise hereof, but in lieu of such fractional shares,
the Issuer shall round the number of shares to be issued upon exercise up to the
nearest whole number of shares.

      1. 7. Registration Rights. If at any time when there is not an effective
Registration Statement covering the Warrant Shares, the Company shall determine
to prepare and file with the Commission a registration statement relating to an
offering for its own account or the account of others under the Securities Act
of any of its equity securities, other than on Form S-4 or Form S-8 (each as
promulgated under the Securities Act) or their then equivalents relating to
equity securities to be issued solely in connection with any acquisition of any
entity or business or equity securities issuable in connection with stock option
or other employee benefit plans, the Company shall send to each Holder written
notice of such determination and, if within thirty (30) days after receipt of
such notice, or within such shorter period of time as may be specified by the
Company in such written notice as may be necessary for the Company to comply
with its obligations with respect to the timing of the filing of such
registration statement, any such Holder shall so request in writing, (which
request shall specify the Warrant Shares intended to be disposed of by the

                                      -13-
<PAGE>

Purchasers), the Company will cause the registration under the Securities Act of
all Warrant Shares which the Company has been so requested to register by the
Holder, to the extent requisite to permit the disposition of the Warrant Shares
so to be registered, provided that if at any time after giving written notice of
its intention to register any securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company
shall determine for any reason not to register or to delay registration of such
securities, the Company may, at its election, give written notice of such
determination to such Holder and, thereupon, (i) in the case of a determination
not to register, shall be relieved of its obligation to register any Warrant
Shares in connection with such registration, and (ii) in the case of a
determination to delay registering, shall be permitted to delay registering any
Warrant Shares being registered pursuant to this Section 7 for the same period
as the delay in registering such other securities. The Company shall include in
such registration statement all or any part of such Warrant Shares such Holder
requests to be registered; provided, however, that the Company shall not be
required to register any Warrant Shares pursuant to this Section 7 that are
eligible for sale pursuant to Rule 144(k) of the Securities Act. In the case of
an underwritten public offering, if the managing underwriter(s) or
underwriter(s) should reasonably object to the inclusion of the Warrant Shares
in such registration statement, then if the Company after consultation with the
managing underwriter should reasonably determine that the inclusion of such
Warrant Shares would materially adversely affect the offering contemplated in
such registration statement, and based on such determination recommends
inclusion in such registration statement of fewer or none of the Warrant Shares
of the Holders, then (x) the number of Warrant Shares of the Holders included in
such registration statement shall be reduced pro-rata among such Holders (based
upon the number of Warrant Shares requested to be included in the registration),
if the Company after consultation with the underwriter(s) recommends the
inclusion of fewer Warrant Shares, or (y) none of the Warrant Shares of the
Holders shall be included in such registration statement, if the Company after
consultation with the underwriter(s) recommends the inclusion of none of such
Warrant Shares; provided, however, that if securities are being offered for the
account of other persons or entities as well as the Company, such reduction
shall not represent a greater fraction of the number of Warrant Shares intended
to be offered by the Holders than the fraction of similar reductions imposed on
such other persons or entities (other than the Company). Nothing in this section
shall limit the registration rights that the Purchase may have under any other
agreement.

      8. Definitions. For the purposes of this Warrant, the following terms have
the following meanings:

            "Additional Shares of Common Stock" means all shares of Common Stock
      issued by the Issuer after the Original Issue Date, and all shares of
      Other Common, if any, issued by the Issuer after the Original Issue Date,
      except: (i) securities issued (other than for cash) in connection with a
      merger, acquisition, or consolidation, (ii) securities issued pursuant to
      the conversion or exercise of convertible or exercisable securities issued
      or outstanding on or prior to the date of the Purchase Agreement or issued
      pursuant to the Purchase Agreement (so long as the conversion or exercise
      price in such securities are not amended to lower such price and/or
      adversely affect the Holders), (iii) the Warrant Stock, (iv) securities

                                      -14-
<PAGE>

      issued in connection with bona fide strategic license agreements or other
      partnering arrangements so long as such issuances are not for the purpose
      of raising capital, (v) Common Stock issued or the issuance or grants of
      options to purchase Common Stock pursuant to the Issuer's stock option
      plans and employee stock purchase plans outstanding as they exist on the
      date of the Purchase Agreement, and (vi) Common Stock issued as payment of
      dividends on the Series A Convertible Preferred Stock.

            "Articles of Incorporation" means the Articles of Incorporation of
      the Issuer as in effect on the Original Issue Date, and as hereafter from
      time to time amended, modified, supplemented or restated in accordance
      with the terms hereof and thereof and pursuant to applicable law.

            "Board" shall mean the Board of Directors of the Issuer.

            "Capital Stock" means and includes (i) any and all shares,
      interests, participations or other equivalents of or interests in (however
      designated) corporate stock, including, without limitation, shares of
      preferred or preference stock, (ii) all partnership interests (whether
      general or limited) in any Person which is a partnership, (iii) all
      membership interests or limited liability company interests in any limited
      liability company, and (iv) all equity or ownership interests in any
      Person of any other type.

            "Common Stock" means the Common Stock, $0.001 par value per share,
      of the Issuer and any other Capital Stock into which such stock may
      hereafter be changed.

            "Common Stock Equivalent" means any Convertible Security, warrant,
      option or other right to subscribe for or purchase any Additional Shares
      of Common Stock or any Convertible Security.

            "Convertible Securities" means evidences of shares of Capital Stock
      or other Securities which are or may be at any time convertible into or
      exchangeable for Additional Shares of Common Stock. The term "Convertible
      Security" means one of the Convertible Securities.

            "Governmental Authority" means any governmental, regulatory or
      self-regulatory entity, department, body, official, authority, commission,
      board, agency or instrumentality, whether federal, state or local, and
      whether domestic or foreign.

            "Holders" mean the Persons who shall from time to time own any
      Warrant. The term "Holder" means one of the Holders.

            "Independent Appraiser" means a nationally recognized or major
      regional investment banking firm or firm of independent certified public
      accountants of recognized standing (which may be the firm that regularly
      examines the financial statements of the Issuer) that is regularly engaged
      in the business of appraising the Capital Stock or assets of corporations
      or other entities as going concerns, and which is not affiliated with
      either the Issuer or the Holders.

                                      -15-
<PAGE>

            "Issuer" means BioForce Nanosciences Holdings, Inc., a Nevada
      corporation, and its successors.

            "Majority Holders" means at any time the Holders of Warrants
      exercisable for a majority of the shares of Warrant Stock issuable under
      the Warrants at the time outstanding.

            "Original Issue Date" means June 10, 2007.

            "OTC Bulletin Board" means the over-the-counter electronic bulletin
      board.

            "Other Common" means any other Capital Stock of the Issuer of any
      class which shall be authorized at any time after the date of this Warrant
      (other than Common Stock) and which shall have the right to participate in
      the distribution of earnings and assets of the Issuer without limitation
      as to amount.

            "Outstanding Common Stock" means, at any given time, the aggregate
      amount of outstanding shares of Common Stock, assuming full exercise,
      conversion or exchange (as applicable) of all options, warrants and other
      Securities which are convertible into or exercisable or exchangeable for,
      and any right to subscribe for, shares of Common Stock that are
      outstanding at such time.

            "Person" means an individual, corporation, limited liability
      company, partnership, joint stock company, trust, unincorporated
      organization, joint venture, Governmental Authority or other entity of
      whatever nature.

            "Per Share Market Value" means on any particular date (a) the last
      closing bid price per share of the Common Stock on such date on the OTC
      Bulletin Board or another registered national stock exchange on which the
      Common Stock is then listed, or if there is no such price on such date,
      then the closing bid price on such exchange or quotation system on the
      date nearest preceding such date, or (b) if the Common Stock is not listed
      then on the OTC Bulletin Board or any registered national stock exchange,
      the last closing bid price for a share of Common Stock in the
      over-the-counter market, as reported by the National Quotation Bureau
      Incorporated (or similar organization or agency succeeding to its
      functions of reporting prices) at the close of business on such date, or
      (c) if the Common Stock is not then reported by the OTC Bulletin Board or
      the National Quotation Bureau Incorporated (or similar organization or
      agency succeeding to its functions of reporting prices), then the average
      of the "Pink Sheet" quotes for the five (5) Trading Days preceding such
      date of determination, or (d) if the Common Stock is not then publicly
      traded the fair market value of a share of Common Stock as determined by
      an Independent Appraiser selected in good faith by the Majority Holders,
      at the Holders sole expense; provided, however, that the Issuer, after

                                      -16-
<PAGE>

      receipt of the determination by such Independent Appraiser, shall have the
      right to select an additional Independent Appraiser (at its sole expense),
      in which case, the fair market value shall be equal to the average of the
      determinations by each such Independent Appraiser; and provided, further
      that all determinations of the Per Share Market Value shall be
      appropriately adjusted for any stock dividends, stock splits or other
      similar transactions during such period. The determination of fair market
      value by an Independent Appraiser shall be based upon the fair market
      value of the Issuer determined on a going concern basis as between a
      willing buyer and a willing seller and taking into account all relevant
      factors determinative of value, and shall be final and binding on all
      parties. In determining the fair market value of any shares of Common
      Stock, no consideration shall be given to any restrictions on transfer of
      the Common Stock imposed by agreement or by federal or state securities
      laws, or to the existence or absence of, or any limitations on, voting
      rights.

            "Purchase Agreement" means the Convertible Secured Promissory Note
      and Warrant Purchase Agreement dated as of June 10, 2007, among the Issuer
      and the Purchasers.

            "Purchasers" means the purchasers of the Convertible Secured
      Promissory Notes and the Warrants issued by the Issuer pursuant to the
      Purchase Agreement.

            "Securities" means any debt or equity securities of the Issuer,
      whether now or hereafter authorized, any instrument convertible into or
      exchangeable for Securities or a Security, and any option, warrant or
      other right to purchase or acquire any Security. "Security" means one of
      the Securities.

            "Securities Act" means the Securities Act of 1933, as amended, or
      any similar federal statute then in effect.

            "Subsidiary" means any corporation at least 50% of whose outstanding
      Voting Stock shall at the time be owned directly or indirectly by the
      Issuer or by one or more of its Subsidiaries, or by the Issuer and one or
      more of its Subsidiaries.

            "Term" has the meaning specified in Section 1 hereof.

            "Trading Day" means (a) a day on which the Common Stock is traded on
      the OTC Bulletin Board, or (b) if the Common Stock is not traded on the
      OTC Bulletin Board, a day on which the Common Stock is quoted in the
      over-the-counter market as reported by the National Quotation Bureau
      Incorporated (or any similar organization or agency succeeding its
      functions of reporting prices); provided, however, that in the event that
      the Common Stock is not listed or quoted as set forth in (a) or (b)
      hereof, then Trading Day shall mean any day except Saturday, Sunday and
      any day which shall be a legal holiday or a day on which banking
      institutions in the State of Delaware are authorized or required by law or
      other government action to close.

                                      -17-
<PAGE>

            "Voting Stock" means, as applied to the Capital Stock of any
      corporation, Capital Stock of any class or classes (however designated)
      having ordinary voting power for the election of a majority of the members
      of the board of directors (or other governing body) of such corporation,
      other than Capital Stock having such power only by reason of the happening
      of a contingency.

            "Warrants" means the Warrants issued and sold pursuant to the
      Purchase Agreement, including, without limitation, this Warrant, and any
      other warrants of like tenor issued in substitution or exchange for any
      thereof pursuant to the provisions of Section 2(b), 2(c), 2(d) or 2(e)
      hereof or of any of such other Warrants.

            "Warrant Price" initially means $0.30, as such price may be adjusted
      from time to time as shall result from the adjustments specified in this
      Warrant, including Section 4 hereto.

            "Warrant Stock" means Common Stock issuable upon exercise of any
      Warrant or Warrants or otherwise issuable pursuant to any Warrant or
      Warrants.

      9. Other Notices. In case at any time:

            (A)   the Issuer shall make any distributions to the holders of
                  Common Stock; or

            (B)   the Issuer shall authorize the granting to all holders of its
                  Common Stock of rights to subscribe for or purchase any shares
                  of Capital Stock of any class or other rights; or

            (C)   there shall be any reclassification of the Capital Stock of
                  the Issuer; or

            (D)   there shall be any capital reorganization by the Issuer; or

            (E)   there shall be any (i) consolidation or merger involving the
                  Issuer or (ii) sale, transfer or other disposition of all or
                  substantially all of the Issuer's property, assets or business
                  (except a merger or other reorganization in which the Issuer
                  shall be the surviving corporation and its shares of Capital
                  Stock shall continue to be outstanding and unchanged and
                  except a consolidation, merger, sale, transfer or other
                  disposition involving a wholly-owned Subsidiary); or

            (F)   there shall be a voluntary or involuntary dissolution,
                  liquidation or winding-up of the Issuer or any partial
                  liquidation of the Issuer or distribution to holders of Common
                  Stock;

                                      -18-
<PAGE>

then, in each of such cases, the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer shall close or a record shall
be taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than ten (10) days prior
to the record date or the date on which the Issuer's transfer books are closed
in respect thereto. This Warrant entitles the Holder to receive copies of all
financial and other information distributed or required to be distributed to the
holders of the Common Stock.

      10. Amendment and Waiver. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Majority Holders; provided, however, that no such amendment or
waiver shall reduce the Warrant Share Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised or modify any
provision of this Section 11 without the consent of the Holder of this Warrant.
No consideration shall be offered or paid to any person to amend or consent to a
waiver or modification of any provision of this Warrant unless the same
consideration is also offered to all Holders.

      11. Governing Law; Jurisdiction. This Warrant shall be governed by and
construed in accordance with the internal laws of the State of Delaware, without
giving effect to any of the conflicts of law principles which would result in
the application of the substantive law of another jurisdiction. This Warrant
shall not be interpreted or construed with any presumption against the party
causing this Warrant to be drafted. The Issuer and the Holder agree that venue
for any dispute arising under this Warrant will lie exclusively in the state or
federal courts located in the State of Delaware, and the parties irrevocably
waive any right to raise forum non conveniens or any other argument that
Delaware is not the proper venue. The Issuer and the Holder irrevocably consent
to personal jurisdiction in the state and federal courts of the State of
Delaware. The Issuer and the Holder consent to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the
address in effect for notices to it under this Warrant and agrees that such
service shall constitute good and sufficient service of process and notice
thereof. Nothing in this Section 12 shall affect or limit any right to serve
process in any other manner permitted by law. The Issuer and the Holder hereby
agree that the prevailing party in any suit, action or proceeding arising out of
or relating to this Warrant or the Purchase Agreement, shall be entitled to
reimbursement for reasonable legal fees from the non-prevailing party. The
parties hereby unconditionally and irrevocably waive all rights to a trial by
jury in any suit, action or proceeding arising out of or relating to this
Warrant or the transactions contemplated hereby.

                                      -19-
<PAGE>

      12. Notices. Any notice, demand, request, waiver or other communication
required or permitted to be given hereunder shall be in writing and shall be
effective (a) upon delivery when sent by hand delivery, telecopy or facsimile at
the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first
business day following such delivery (if delivered other than on a business day
during normal business hours where such notice is to be received) or (b) on the
second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur. The addresses for such communications
shall be:

If to the Issuer:                   BioForce Nanosciences Holdings, Inc.
                                    1615 Golden Aspen Drive, Suite 101
                                    Ames, Iowa, 50010
                                    Attn: Chief Executive Officer
                                    Tel. No.: (515) 233-8333
                                    Fax No.:  (515) 233-8337

with copies (which copies
shall not constitute notice)
to:                                 Sonnenschein, Nath & Rosenthal, LLP
                                    101 JFK Parkway
                                    Short Hills, NJ 07078-2708
                                    Attention: Jeffrey A. Baumel, Esq.
                                    Tel. No.:  (973) 912-7100
                                    Fax No.:  (973) 912-7199

If to any Holder:                   At the address of such Holder set forth on
                                    Exhibit A to the Purchase Agreement or as
                                    specified in writing by such Holder.

      Any party hereto may from time to time change its address for notices by
giving written notice of such changed address to the other party hereto.

      13. Warrant Agent. The Issuer may, by written notice to the Holder of this
Warrant, appoint an agent having an office in Ardmore, Pennsylvania for the
purpose of issuing shares of Warrant Stock on the exercise of this Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any
such issuance, exchange or replacement, as the case may be, shall be made at
such office by such agent.

      14. Remedies. Each of the Issuer and the Holder (the "Defaulting Party")
stipulates to the other (the "Harmed Party") that the remedies at law of the

                                      -20-
<PAGE>

Harmed Party in the event of any default or threatened default by the Defaulting
Party in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that, to the fullest extent permitted by
law, such terms may be specifically enforced by a decree for the specific
performance of any agreement contained herein or by an injunction against a
violation of any of the terms hereof or otherwise.

      15. Successors and Assigns. This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the Holders of
Warrant Stock issued pursuant hereto, and shall be enforceable by any such
Holder or Holder of Warrant Stock.

      16. Modification and Severability. If, in any action before any court or
agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be unenforceable, then such provision shall be
deemed modified to the extent necessary to make it enforceable by such court or
agency. If any such provision is not enforceable as set forth in the preceding
sentence, the unenforceability of such provision shall not affect the other
provisions of this Warrant, but this Warrant shall be construed as if such
unenforceable provision had never been contained herein.

      17. Headings. The headings of the Sections of this Warrant are for
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -21-
<PAGE>

      IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and
year first above written.

                                            BIOFORCE NANOSCIENCES HOLDINGS, INC.

                                            By:
                                                --------------------------------
                                                Name: Gregory D. Brown
                                                Title:  Chief Financial Officer
Accepted and Agreed:

--------------------------
Holder:
By:
Title:

                                      -22-
<PAGE>

                              WARRANT EXERCISE FORM

                      BIOFORCE NANOSCIENCES HOLDINGS, INC.

The undersigned _______________, pursuant to the provisions of the within
Warrant, hereby elects to purchase _____ shares of Common Stock of BioForce
Nanosciences Holdings, Inc. covered by the within Warrant.

Dated: _________________            Signature   ___________________________

                                    Address     _____________________

                                                _____________________

Number of shares of Common Stock beneficially owned or deemed beneficially owned
by the Holder on the date of Exercise: _________________________

The undersigned is an "accredited investor" as defined in Regulation D under the
Securities Act of 1933, as amended.

The Holder shall pay the sum of $________ by certified or official bank check
(or via wire transfer) to the Issuer in accordance with the terms of the
Warrant.

                                      -23-
<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________            Signature   ___________________________

                                    Address     _____________________

                                                _____________________

                                      -24-
<PAGE>

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Stock
evidenced by the within Warrant together with all rights therein, and does
irrevocably constitute and appoint ___________________, attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________            Signature   ___________________________

                                    Address     _____________________

                                                _____________________

                                      -25-CONVERTIBLE SECURED PROMISSORY NOTE AND WARRANT PURCHASE

                                    AGREEMENT

                            Dated as of June 10, 2008

                                      among

                      BIOFORCE NANOSCIENCES HOLDINGS, INC.

                                       and

                       THE PURCHASERS LISTED ON EXHIBIT A

<PAGE>

                 CONVERTIBLE SECURED PROMISSORY NOTE AND WARRANT
                               PURCHASE AGREEMENT

      This CONVERTIBLE SECURED PROMISSORY NOTE AND WARRANT PURCHASE AGREEMENT
(the "Agreement") is dated as of June 4, 2008 by and among BioForce Nanosciences
Holdings, Inc., a Nevada corporation (the "Company"), and each of the Purchasers
of Units, as described below, whose names are set forth on Exhibit A hereto
(individually, a "Purchaser" and collectively, the "Purchasers").

      The parties hereto agree as follows:

                                    ARTICLE I

                           Purchase and Sale of Units

            Section 1.1 Purchase and Sale of Notes. Upon the following terms and
conditions, the Company shall issue and sell to the Purchasers, and each of the
Purchasers shall purchase from the Company, the number of units (the "Units"),
consisting of: (i) $1.00 in face amount of the Company's convertible secured
promissory notes (the "Notes"), in substantially the form attached hereto as
Exhibit B-1, convertible into shares of the Company's common stock, par value
$0.001 per share (the "Common Stock"), and (ii) three warrants, in substantially
the form attached hereto as Exhibit B-2 (the " Warrant"), set forth opposite
such Purchaser's name on Exhibit A hereto. The Company and the Purchasers are
executing and delivering this Agreement in accordance with and in reliance upon
the exemption from securities registration afforded by Rule 506 of Regulation D
("Regulation D") as promulgated by the United States Securities and Exchange
Commission (the "Commission") under the Securities Act of 1933, as amended (the
"Securities Act"), or Section 4(2) of the Securities Act.

            Section 1.2 Warrants. Each of the Warrants shall have a term of five
(5) years, have an exercise price per share equal to the Warrant Price (as
defined in the applicable Warrant) and shall be exercisable as stated in the
applicable Warrant.

            Section 1.3 Conversion Shares. The Company has authorized and has
reserved and covenants to continue to reserve, free of preemptive rights and
other similar contractual rights of stockholders, a number of shares of Common
Stock equal to one hundred twenty percent (120%) of the number of shares of
Common Stock as shall from time to time be sufficient to effect the conversion
of all of the Convertible Secured Promissory Notes and exercise of the Warrants
then outstanding. Any shares of Common Stock issuable upon conversion of the
Convertible Secured Promissory Notes and exercise of the Warrants (and such
shares when issued) are herein referred to as the "Conversion Shares" and the
"Warrant Shares", respectively. The Conversion Shares and the Warrant Shares are
sometimes collectively referred to as the "Shares".

            Section 1.4 Purchase Price and Closing. Subject to the terms and
conditions hereof, in consideration of and in express reliance upon the
representations, warranties, covenants, terms and conditions of this Agreement,
the Company agrees to issue and sell to the Purchasers and the Purchasers,
severally but not jointly, agree to purchase the Units for $1.00 per unit, and

                                       2
<PAGE>

for an aggregate purchase price of Three Hundred Thousand Dollars ($300,000)
(the "Purchase Price"). The closing of the purchase and sale of the Units to be
acquired by the Purchasers from the Company under this Agreement shall take
place at the offices of Sonnenschein, Nath & Rosenthal, LLP, 101 JFK Parkway,
Short Hills, NJ 07078-2708 (the "Closing") at 10:00 a.m., New York time (i) on
or before June 10, 2008; provided, that all of the conditions set forth in
Article IV hereof and applicable to the Closing shall have been fulfilled or
waived in accordance herewith, or (ii) at such other time and place or on such
date as the Purchasers and the Company may agree upon (the "Closing Date").
Subject to the terms and conditions of this Agreement, at the Closing the
Company shall deliver or cause to be delivered to each Purchaser (x) a
Convertible Secured Promissory Note corresponding to the number of Units set
forth opposite the name of such Purchaser on Exhibit A hereto, (y) Warrants
corresponding to the number of Units as is set forth opposite the name of such
Purchaser on Exhibit A attached hereto and (z) any other documents required to
be delivered pursuant to Article IV hereof. At the Closing, each Purchaser shall
deliver its Purchase Price in the manner indicated on Exhibit A.

                                   ARTICLE II

                         Representations and Warranties

            Section 2.1 Representations and Warranties of the Company. The
Company hereby represents and warrants to the Purchasers, as of the date hereof
and the Closing Date (except as set forth on the Disclosure Schedule prepared in
connection with this Agreement (the "Disclosure Schedule") with each numbered
section of the Disclosure Schedule corresponding to the section number herein),
as follows:

            (a) Organization, Good Standing and Power. The Company is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Nevada and has the requisite corporate power to own, lease
and operate its properties and assets and to conduct its business as it is now
being conducted. The Company does not have any subsidiaries except as set forth
in the Company's Form 10-KSB for the year ended December 31, 2007, including the
accompanying financial statements (the "Form 10-KSB"), or in the Company's Form
10-QSB for the fiscal quarter ended March 31, 2008 (the "Form 10-QSB"). The
Company and each such subsidiary is duly qualified as a foreign corporation to
do business and is in good standing in every jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification
necessary except for any jurisdiction(s) (alone or in the aggregate) in which
the failure to be so qualified will not have a Material Adverse Effect (as
defined in Section 2.1(c) hereof) on the Company's financial condition.

            (b) Authorization; Enforcement. The Company has the requisite
corporate power and authority to enter into and perform this Agreement, the
Notes, and the Warrants (collectively the "Transaction Documents") and to issue
and sell the Notes, Shares and Warrants in accordance with the terms hereof. The
execution, delivery and performance of the Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby

                                       3
<PAGE>

have been duly and validly authorized by all necessary corporate action, or will
be so authorized prior to the Closing, and no further consent or authorization
of the Company or its Board of Directors or stockholders will be required as of
the Closing. This Agreement has been duly executed and delivered by the Company,
and constitutes a valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditor's rights and remedies or by
other equitable principles of general application.

            (c) Capitalization. The authorized capital stock of the Company and
the shares thereof currently issued and outstanding as of the date hereof are
set forth in Section 2.1(c) of the Disclosure Schedule. All of the outstanding
shares of the Common Stock and Series A Convertible Preferred Stock (the
"Preferred Shares") have been duly and validly authorized. Except as set forth
on the Disclosure Schedule hereto, no shares of Common Stock are entitled to
preemptive rights or registration rights and there are no outstanding options,
warrants, scrip, rights to subscribe to, call or commitments of any character
whatsoever relating to, or securities or rights convertible into, any shares of
capital stock of the Company. There are no contracts, commitments,
understandings, or arrangements by which the Company is or may become bound to
issue additional shares of the capital stock of the Company or options,
securities or rights convertible into shares of capital stock of the Company.
The Company is not a party to any agreement granting registration or
anti-dilution rights to any person with respect to any of its equity or debt
securities. The Company is not a party to, and it has no knowledge of, any
agreement restricting the voting or transfer of any shares of the capital stock
of the Company. The offer and sale of all capital stock, convertible securities,
rights, warrants, or options of the Company issued prior to the Closing complied
with all applicable Federal and state securities laws, and no stockholder has a
right of rescission or claim for damages with respect thereto which would have a
Material Adverse Effect (as defined below). The Company has furnished or made
available to the Purchasers true and correct copies of the Company's Articles of
Incorporation as in effect on the date hereof (the "Articles"), and the
Company's Bylaws as in effect on the date hereof (the "Bylaws"). For the
purposes of this Agreement, "Material Adverse Effect" means any material adverse
effect on the business, operations, properties, prospects, or financial
condition of the Company and its subsidiaries and/or any condition,
circumstance, or situation that would prohibit or otherwise materially interfere
with the ability of the Company to perform any of its obligations under this
Agreement in any material respect.

            (d) Issuance of Shares. The Notes and the Warrants to be issued at
the Closing have been duly authorized by all necessary corporate action, or will
be so authorized prior to the Closing. When the Conversion Shares and the
Warrant Shares are issued in accordance with the terms of the Notes and the
Warrants, respectively, such shares will be duly authorized by all necessary
corporate action and validly issued and outstanding, fully paid and
nonassessable, and the holders shall be entitled to all rights accorded to a
holder of Common Stock.

            (e) No Conflicts. The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the Company of the

                                       4
<PAGE>

transactions contemplated herein and therein do not and will not (i) violate any
provision of the Company's Articles or Bylaws, (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, mortgage, deed of trust,
indenture, note, bond, license, lease agreement, instrument or obligation to
which the Company is a party or by which it or its properties or assets are
bound, (iii) create or impose a lien, mortgage, security interest, charge or
encumbrance of any nature on any property of the Company under any agreement or
any commitment to which the Company is a party or by which the Company is bound
or by which any of its respective properties or assets are bound, or (iv) result
in a violation of any federal, state, local or foreign statute, rule,
regulation, order, judgment or decree (including Federal and state securities
laws and regulations) applicable to the Company or any of its subsidiaries or by
which any property or asset of the Company or any of its subsidiaries are bound
or affected, except, in all cases other than violations pursuant to clauses (i)
and (iv) above, for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the
aggregate, have a Material Adverse Effect. The business of the Company and its
subsidiaries is not being conducted in violation of any laws, ordinances or
regulations of any governmental entity, except for possible violations which
singularly or in the aggregate do not and will not have a Material Adverse
Effect. The Company is not required under Federal, state or local law, rule or
regulation to obtain any consent, authorization or order of, or make any filing
or registration with, any court or governmental agency in order for it to
execute, deliver or perform any of its obligations under the Transaction
Documents, or issue and sell the Notes, the Warrants, the Conversion Shares and
the Warrant Shares in accordance with the terms hereof or thereof (other than
any filings which may be required to be made by the Company with the Commission
or state securities administrators subsequent to the Closing, and any
registration statement which may be filed pursuant hereto); provided that, for
purposes of the representation made in this sentence, the Company is assuming
and relying upon the accuracy of the relevant representations and agreements of
the Purchasers herein.

            (f) Commission Documents, Financial Statements. The Company is a
voluntary filer pursuant to Section 15(d) of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), and the Company has timely filed all
reports, schedules, forms, statements and other documents required to be filed
by it with the Commission pursuant to the reporting requirements of the Exchange
Act, including material filed pursuant to Section 13(a) or 15(d) of the Exchange
Act (all of the foregoing including filings incorporated by reference therein
being referred to herein as the "Commission Documents"). The Company has
delivered or made available to each of the Purchasers true and complete copies
of the Commission Documents. The Company has not provided to the Purchasers any
material non-public information or other information which, according to
applicable law, rule or regulation, was required to have been disclosed publicly
by the Company but which has not been so disclosed, other than with respect to
the transactions contemplated by this Agreement. At the times of their
respective filings, the Form 10-KSB and the Form 10-QSB complied in all material
respects with the requirements of the Exchange Act and the rules and regulations
of the Commission promulgated thereunder and other federal, state and local
laws, rules and regulations applicable to such documents, and, as of their
respective dates, none of the Form 10-KSB and the Form 10-QSB contained any
untrue statement of a material fact or omitted to state a material fact required

                                       5
<PAGE>

to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading. The
financial statements of the Company included in the Commission Documents comply
as to form in all material respects with applicable accounting requirements and
the published rules and regulations of the Commission or other applicable rules
and regulations with respect thereto. Such financial statements have been
prepared in accordance with United States generally accepted accounting
principles ("GAAP") applied on a consistent basis during the periods involved
(except (i) as may be otherwise indicated in such financial statements or the
notes thereto or (ii) in the case of unaudited interim statements, to the extent
they may not include footnotes or may be condensed or summary statements), and
fairly present in all material respects the financial position of the Company
and its subsidiaries as of the dates thereof and the results of operations and
cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments).

            (g) Subsidiaries. The Disclosure Schedule hereto sets forth each
subsidiary of the Company, showing the jurisdiction of its incorporation or
organization and showing the percentage of each person's ownership. For the
purposes of this Agreement, "subsidiary" shall mean any corporation or other
entity of which at least a majority of the securities or other ownership
interest having ordinary voting power (absolutely or contingently) for the
election of directors or other persons performing similar functions are at the
time owned directly or indirectly by the Company and/or any of its other
subsidiaries. All of the outstanding shares of capital stock of each subsidiary
have been duly authorized and validly issued, and are fully paid and
nonassessable. There are no outstanding preemptive, conversion or other rights,
options, warrants or agreements granted or issued by or binding upon any
subsidiary for the purchase or acquisition of any shares of capital stock of any
subsidiary or any other securities convertible into, exchangeable for or
evidencing the rights to subscribe for any shares of such capital stock. Neither
the Company nor any subsidiary is subject to any obligation (contingent or
otherwise) to repurchase or otherwise acquire or retire any shares of the
capital stock of any subsidiary or any convertible securities, rights, warrants
or options of the type described in the preceding sentence. Neither the Company
nor any subsidiary is party to, nor has any knowledge of, any agreement
restricting the voting or transfer of any shares of the capital stock of any
subsidiary.

            (h) No Material Adverse Change. Since March 31, 2008, the Company
has not experienced or suffered any Material Adverse Effect.

            (i) No Undisclosed Liabilities. Neither the Company nor any of its
subsidiaries has any liabilities, obligations, claims or losses (whether
liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent
or otherwise) other than those incurred in the ordinary course of the Company's
or its subsidiaries respective businesses since March 31, 2008 and which,
individually or in the aggregate, do not or would not have a Material Adverse
Effect on the Company or its subsidiaries.

            (j) No Undisclosed Events or Circumstances. No event or circumstance
has occurred or exists with respect to the Company or its subsidiaries or their
respective businesses, properties, prospects, operations or financial condition,
which, under applicable law, rule or regulation, requires public disclosure or
announcement by the Company but which has not been so publicly announced or
disclosed.

                                       6
<PAGE>

            (k) Indebtedness. The Form 10-KSB or Form 10-QSB sets forth as of a
recent date all outstanding secured and unsecured Indebtedness of the Company or
any subsidiary, or for which the Company or any subsidiary has commitments. For
the purposes of this Agreement, "Indebtedness" shall mean (a) any liabilities
for borrowed money or amounts owed in excess of $100,000 (other than trade
accounts payable incurred in the ordinary course of business), (b) all
guaranties, endorsements and other contingent obligations in respect of
Indebtedness of others, whether or not the same are or should be reflected in
the Company's balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $25,000 due under leases required to be
capitalized in accordance with GAAP. Neither the Company nor any subsidiary is
in default with respect to any Indebtedness.

            (l) Title to Assets. Each of the Company and the subsidiaries has
good and marketable title to all of its real and personal property reflected in
the Form 10-KSB or Form 10-QSB, free and clear of any mortgages, pledges,
charges, liens, security interests or other encumbrances, except for those
disclosed in the Form 10-KSB or Form 10-QSB, statutory liens for which the
payment of current taxes are not yet delinquent, or such that, individually or
in the aggregate, do not cause a Material Adverse Effect. All leases of the
Company and each of its subsidiaries are valid and subsisting and, to its
knowledge, in full force and effect.

            (m) Actions Pending. There is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or any other proceeding
pending or, to the knowledge of the Company, threatened against the Company or
any subsidiary which questions the validity of this Agreement or any of the
other Transaction Documents or the transactions contemplated hereby or thereby
or any action taken or to be taken pursuant hereto or thereto. Except as set
forth in the Form 10-KSB or Form 10-QSB, there is no action, suit, claim,
investigation, arbitration, alternate dispute resolution proceeding or any other
proceeding pending or, to the knowledge of the Company, threatened, against or
involving the Company, any subsidiary or any of their respective properties or
assets. There are no outstanding orders, judgments, injunctions, awards or
decrees of any court, arbitrator or governmental or regulatory body against the
Company or any subsidiary or any officers or directors of the Company or
subsidiary in their capacities as such.

            (n) Compliance with Law. The business of the Company and the
subsidiaries has been and is presently being conducted in accordance with all
applicable federal, state and local governmental laws, rules, regulations and
ordinances, except for such noncompliance that, individually or in the
aggregate, would not cause a Material Adverse Effect. The Company and each of
its subsidiaries have all franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals necessary for the
conduct of its business as now being conducted by it unless the failure to
possess such franchises, permits, licenses, consents and other governmental or
regulatory authorizations and approvals, individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.

            (o) Taxes. The Company and each of the subsidiaries has accurately
prepared and filed all federal, state and other tax returns required by law to

                                       7
<PAGE>

be filed by it, has paid or made provisions for the payment of all taxes shown
to be due and all additional assessments, and adequate provisions have been and
are reflected in the financial statements of the Company and the subsidiaries
for all current taxes and other charges to which the Company or any subsidiary
is subject and which are not currently due and payable. None of the federal
income tax returns of the Company or any subsidiary have been audited by the
Internal Revenue Service. The Company has no knowledge of any additional
assessments, adjustments or contingent tax liability (whether federal or state)
of any nature whatsoever, whether pending or threatened against the Company or
any subsidiary for any period, nor of any basis for any such assessment,
adjustment or contingency.

            (p) Certain Fees. No brokers, finders or financial advisory fees or
commissions will be payable by the Company or any subsidiary or any Purchaser
with respect to the transactions contemplated by this Agreement.

            (q) Disclosure. Neither this Agreement or the Disclosure Schedule
nor any other documents, certificates or instruments furnished to the Purchasers
by or on behalf of the Company or any subsidiary in connection with the
transactions contemplated by this Agreement contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements made herein or therein, in the light of the circumstances under which
they were made herein or therein, not misleading. It is understood that this
representation is qualified by the fact that the Company has not delivered to
the Purchasers, and has not been requested to deliver, a private placement or
similar memorandum or any written disclosure of the types of information
customarily furnished to purchasers of securities.

            (r) Operation of Business. The Company and each of the subsidiaries
owns or possesses all patents, trademarks, domain names (whether or not
registered) and any patentable improvements or copyrightable derivative works
thereof, websites and intellectual property rights relating thereto, service
marks, trade names, copyrights, licenses and authorizations as set forth in the
Form 10-KSB or Form 10-QSB, and all rights with respect to the foregoing, which
are necessary for the conduct of its business as now conducted without any
conflict with the rights of others.

            (s) Environmental Compliance. The Company and each of its
subsidiaries have obtained all material approvals, authorization, certificates,
consents, licenses, orders and permits or other similar authorizations of all
governmental authorities, or from any other person, that are required under any
Environmental Laws. The Form 10-KSB or Form 10-QSB describes all material
permits, licenses and other authorizations issued under any Environmental Laws
to the Company or its subsidiaries. "Environmental Laws" shall mean all
applicable laws relating to the protection of the environment including, without
limitation, all requirements pertaining to reporting, licensing, permitting,
controlling, investigating or remediating emissions, discharges, releases or
threatened releases of hazardous substances, chemical substances, pollutants,
contaminants or toxic substances, materials or wastes, whether solid, liquid or
gaseous in nature, into the air, surface water, groundwater or land, or relating
to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of hazardous substances, chemical substances, pollutants,
contaminants or toxic substances, material or wastes, whether solid, liquid or
gaseous in nature. The Company has all necessary governmental approvals required

                                       8
<PAGE>

under all Environmental Laws and used in its business or in the business of any
of its subsidiaries. The Company and each of its subsidiaries are also in
compliance with all other limitations, restrictions, conditions, standards,
requirements, schedules and timetables required or imposed under all
Environmental Laws. Except for such instances as would not individually or in
the aggregate have a Material Adverse Effect, there are no past or present
events, conditions, circumstances, incidents, actions or omissions relating to
or in any way affecting the Company or its subsidiaries that violate or may
violate any Environmental Law after the Closing Date or that may give rise to
any environmental liability, or otherwise form the basis of any claim, action,
demand, suit, proceeding, hearing, study or investigation (i) under any
Environmental Law, or (ii) based on or related to the manufacture, processing,
distribution, use, treatment, storage (including without limitation underground
storage tanks), disposal, transport or handling, or the emission, discharge,
release or threatened release of any hazardous substance.

            (t) Books and Record Internal Accounting Controls. The books and
records of the Company and its subsidiaries accurately reflect in all material
respects the information relating to the business of the Company and the
subsidiaries, the location and collection of their assets, and the nature of all
transactions giving rise to the obligations or accounts receivable of the
Company or any subsidiary. The Company and each of its subsidiaries maintain a
system of internal accounting controls sufficient, in the judgment of the
Company, 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
actions is taken with respect to any differences.

            (u) Material Agreements. Neither the Company nor any subsidiary is a
party to any written or oral contract, instrument, agreement, commitment,
obligation, plan or arrangement, a copy of which would be required to be filed
with the Commission as an exhibit to a registration statement on Form S-3 or
applicable form (collectively, "Material Agreements") if the Company or any
subsidiary were registering securities under the Securities Act. The Company and
each of its subsidiaries has in all material respects performed all the
obligations required to be performed by them to date under the foregoing
agreements, have received no notice of default and are not in default under any
Material Agreement now in effect, the result of which could cause a Material
Adverse Effect. No written or oral contract, instrument, agreement, commitment,
obligation, plan or arrangement of the Company or of any subsidiary limits or
shall limit the payment of dividends on the Company's Preferred Shares, other
preferred stock, if any, or its Common Stock.

            (v) Transactions with Affiliates. Except as set forth in the
Commission Documents, there are no loans, leases, agreements, contracts, royalty
agreements, management contracts or arrangements or other continuing
transactions between (a) the Company or any subsidiary on the one hand, and (b)
on the other hand, any officer, employee, consultant or director of the Company,
or any of its subsidiaries, or any person owning any capital stock of the
Company or any subsidiary or any member of the immediate family of such officer,
employee, consultant, director or stockholder or any corporation or other entity
controlled by such officer, employee, consultant, director or stockholder, or a
member of the immediate family of such officer, employee, consultant, director
or stockholder.

                                       9
<PAGE>

            (w) Securities Act of 1933. Based in material part upon the
representations herein of the Purchasers, the Company has complied and will
comply with all applicable federal and state securities laws in connection with
the offer, issuance and sale of the Notes, Shares and Warrants hereunder.
Neither the Company nor, to its knowledge, anyone acting on its behalf, directly
or indirectly, has or will, prior to the Closing Date sell, offer to sell or
solicit offers to buy any of the Notes, Shares or Warrants to, or solicit offers
with respect thereto from, or enter into any preliminary conversations or
negotiations relating thereto with, any person, or has taken or will, prior to
the Closing Date, take any action so as to bring the issuance and sale of any of
the Notes, Shares and Warrants under the registration provisions of the
Securities Act and applicable state securities laws, and neither the Company nor
any of its affiliates, nor, to its knowledge, any person acting on its or their
behalf, has engaged in any form of general solicitation or general advertising
(within the meaning of Regulation D under the Securities Act) in connection with
the offer or sale of any of the Notes, Shares and Warrants.

            (x) Governmental Approvals. Except for the filing of any notice
prior or subsequent to the Closing Date that may be required under applicable
state and/or Federal securities laws (which if required, shall be filed on a
timely basis), including the filing of a Form D, no authorization, consent,
approval, license, exemption of, filing or registration with any court or
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, is or will be necessary for, or in connection with, the
execution or delivery of the Notes and the Warrants, or for the performance by
the Company of its obligations under the Transaction Documents.

            (y) Employees. Neither the Company nor any subsidiary has any
collective bargaining arrangements or agreements covering any of its employees.
Neither the Company nor any subsidiary has any employment contract, agreement
regarding proprietary information, non-competition agreement, non-solicitation
agreement, confidentiality agreement, or any other similar contract or
restrictive covenant, relating to the right of any officer, employee or
consultant to be employed or engaged by the Company or such subsidiary. No
officer, consultant or key employee of the Company or any subsidiary whose
termination, either individually or in the aggregate, could have a Material
Adverse Effect, has terminated or, to the knowledge of the Company, has any
present intention of terminating his or her employment or engagement with the
Company or any subsidiary.

            (z) Absence of Certain Developments. Except as set forth in the Form
10-KSB, the Form 10-QSB or on Schedule 2.1(c) hereto, since March 31, 2008,
neither the Company nor any subsidiary has:

                  (i) issued any stock, bonds or other corporate securities or
any rights, options or warrants with respect thereto;

                  (ii) borrowed any amount or incurred or become subject to any
liabilities (absolute or contingent) except current liabilities incurred in the
ordinary course of business which are comparable in nature and amount to the

                                       10
<PAGE>

current liabilities incurred in the ordinary course of business during the
comparable portion of its prior fiscal year, as adjusted to reflect the current
nature and volume of the Company's or such subsidiary's business;

                  (iii) discharged or satisfied any lien or encumbrance or paid
any obligation or liability (absolute or contingent), other than current
liabilities paid in the ordinary course of business;

                  (iv) declared or made any payment or distribution of cash or
other property to stockholders with respect to its stock, or purchased or
redeemed, or made any agreements so to purchase or redeem, any shares of its
capital stock;

                  (v) sold, assigned or transferred any other tangible assets,
or canceled any debts or claims, except in the ordinary course of business;

                  (vi) sold, assigned or transferred any patent rights,
trademarks, trade names, copyrights, trade secrets or other intangible assets or
intellectual property rights, or disclosed any proprietary confidential
information to any person except to customers in the ordinary course of business
or to the Purchasers or their representatives;

                  (vii) suffered any substantial losses or waived any rights of
material value, whether or not in the ordinary course of business, or suffered
the loss of any material amount of prospective business;

                  (viii) made any changes in employee compensation except in the
ordinary course of business and consistent with past practices;

                  (ix) made capital expenditures or commitments therefor that
aggregate in excess of $100,000;

                  (x) entered into any other transaction other than in the
ordinary course of business, or entered into any other material transaction,
whether or not in the ordinary course of business;

                  (xi) made charitable contributions or pledges in excess of
$25,000;

                  (xii) suffered any material damage, destruction or casualty
loss, whether or not covered by insurance;

                  (xiii) experienced any material problems with labor or
management in connection with the terms and conditions of their employment;

                  (xiv) effected any two or more events of the foregoing kind
which in the aggregate would be material to the Company or its subsidiaries; or

                  (xv) entered into an agreement, written or otherwise, to take
any of the foregoing actions.

                                       11
<PAGE>

            (aa) Public Utility Holding Company Act and Investment Company Act
Status. The Company is not a "holding company" or a "public utility company" as
such terms are defined in the Public Utility Holding Company Act of 1935, as
amended. The Company is not, and as a result of and immediately upon the Closing
will not be, an "investment company" or a company "controlled" by an "investment
company," within the meaning of the Investment Company Act of 1940, as amended.

            (bb) ERISA. No liability to the Pension Benefit Guaranty Corporation
has been incurred with respect to any Plan (as defined below) by the Company or
any of its subsidiaries which is or would be materially adverse to the Company
and its subsidiaries. The execution and delivery of this Agreement and the
issuance and sale of the Notes and Warrants will not involve any transaction
which is subject to the prohibitions of Section 406 of ERISA or in connection
with which a tax could be imposed pursuant to Section 4975 of the Internal
Revenue Code of 1986, as amended, provided that, if any of the Purchasers, or
any person or entity that owns a beneficial interest in any of the Purchasers,
is an "employee pension benefit plan" (within the meaning of Section 3(2) of
ERISA) with respect to which the Company is a "party in interest" (within the
meaning of Section 3(14) of ERISA), the requirements of Sections 407(d)(5) and
408(e) of ERISA, if applicable, are met. As used in this Section 2.1(ac), the
term "Plan" shall mean an "employee pension benefit plan" (as defined in Section
3 of ERISA) which is or has been established or maintained, or to which
contributions are or have been made, by the Company or any subsidiary or by any
trade or business, whether or not incorporated, which, together with the Company
or any subsidiary, is under common control, as described in Section 414(b) or
(c) of the Code.

            (cc) Dilutive Effect. The Company understands and acknowledges that
its obligation to issue Conversion Shares upon conversion of the Notes in
accordance with this Agreement and the Certificate of Designation and its
obligations to issue the Warrant Shares upon the exercise of the Warrants in
accordance with this Agreement and the Warrants, is, in each case, absolute and
unconditional regardless of the dilutive effect that such issuance may have on
the ownership interest of other stockholders of the Company.

            (dd) No Integrated Offering. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales of any security or solicited any offers to
buy any security under circumstances that would cause the offering of the Shares
pursuant to this Agreement to be integrated with prior offerings by the Company
for purposes of the Securities Act which would prevent the Company from selling
the Shares pursuant to Rule 506 under the Securities Act, or any applicable
exchange-related stockholder approval provisions, nor will the Company or any of
its affiliates or subsidiaries take any action or steps that would cause the
offering of the Shares to be integrated with other offerings. The Company does
not have any registration statement pending before the Commission or currently
under the Commission's review and since August 31, 2007, the Company has not
offered or sold any of its equity securities or debt securities convertible into
shares of Common Stock.

            (ee) Sarbanes-Oxley Act. The Company is in compliance with the
applicable provisions of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley

                                       12
<PAGE>

Act"), and the rules and regulations promulgated thereunder, that are effective,
and intends to comply with other applicable provisions of the Sarbanes-Oxley
Act, and the rules and regulations promulgated thereunder, upon the
effectiveness of such provisions.

            (ff) Independent Nature of Purchasers. The Company acknowledges that
the obligations of each Purchaser under the Transaction Documents are several
and not joint with the obligations of any other Purchaser, and no Purchaser
shall be responsible in any way for the performance of the obligations of any
other Purchaser under the Transaction Documents. The Company acknowledges that
the decision of each Purchaser to purchase securities pursuant to this Agreement
has been made by such Purchaser independently of any other purchase and
independently of any information, materials, statements or opinions as to the
business, affairs, operations, assets, properties, liabilities, results of
operations, condition (financial or otherwise) or prospects of the Company or of
its Subsidiaries which may have made or given by any other Purchaser or by any
agent or employee of any other Purchaser, and no Purchaser or any of its agents
or employees shall have any liability to any Purchaser (or any other person)
relating to or arising from any such information, materials, statements or
opinions. The Company acknowledges that nothing contained herein, or in any
Transaction Document, and no action taken by any Purchaser pursuant hereto or
thereto, shall be deemed to constitute the Purchasers as a partnership, an
association, a joint venture or any other kind of entity, or create a
presumption that the Purchasers are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by the
Transaction Documents. The Company acknowledges that each Purchaser shall be
entitled to independently protect and enforce its rights, including without
limitation, the rights arising out of this Agreement or out of the other
Transaction Documents, and it shall not be necessary for any other Purchaser to
be joined as an additional party in any proceeding for such purpose. The Company
acknowledges that for reasons of administrative convenience only, the
Transaction Documents have been prepared by counsel and such counsel does not
represent the Purchasers, who have retained their own individual counsel with
respect to the transactions contemplated hereby. The Company acknowledges that
it has elected to provide all Purchasers with the same terms and Transaction
Documents for the convenience of the Company and not because it was required or
requested to do so by the Purchasers. The Company acknowledges that such
procedure with respect to the Transaction Documents in no way creates a
presumption that the Purchasers are in any way acting in concert or as a group
with respect to the Transaction Documents or the transactions contemplated
hereby or thereby.

            (gg) Transfer Agent. The name, address, telephone number, fax
number, contact person and email address of the Company's transfer agent is set
forth on Schedule 2.1(gg) hereto. Section 2.2 Representations and Warranties of
the Purchasers. Each of the Purchasers hereby makes the following
representations and warranties to the Company with respect solely to itself and
not with respect to any other Purchaser:

            (a) Organization and Standing of the Purchasers. If the Purchaser is
an entity, such Purchaser is a corporation or partnership duly incorporated or
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization.

                                       13
<PAGE>

            (b) Authorization and Power. Each Purchaser has the requisite power
and authority to enter into and perform this Agreement and to purchase the Notes
and Warrants being sold to it hereunder. The execution, delivery and performance
of this Agreement by such Purchaser and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate or partnership action, and no further consent or
authorization of such Purchaser or its Board of Directors, stockholders, or
partners, as the case may be, is required. This Agreement has been duly
authorized, executed and delivered by such Purchaser and constitutes, or shall
constitute when executed and delivered, a valid and binding obligation of the
Purchaser enforceable against the Purchaser in accordance with the terms
thereof.

            (c) No Conflicts. The execution, delivery and performance of this
Agreement and the consummation by such Purchaser of the transactions
contemplated hereby and thereby or relating hereto do not and will not (i)
result in a violation of such Purchaser's charter documents or bylaws or other
organizational documents or (ii) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of any agreement, indenture or instrument or obligation to which
such Purchaser is a party or by which its properties or assets are bound, or
result in a violation of any law, rule, or regulation, or any order, judgment or
decree of any court or governmental agency applicable to such Purchaser or its
properties (except for such conflicts, defaults and violations as would not,
individually or in the aggregate, have a material adverse effect on such
Purchaser). Such Purchaser is not required under any foreign, Federal, state or
local law, rule or regulation to obtain any consent, authorization or order of,
or make any filing or registration with, any court or governmental agency in
order for it to execute, deliver or perform any of its obligations under this
Agreement or to purchase the Notes or acquire the Warrants in accordance with
the terms hereof or thereof, provided that to the extent a representation made
in this sentence relies on a relevant representation or agreement of the
Company, such Purchaser is assuming and relying upon the accuracy of the
relevant representations and agreements of the Company herein.

            (d) Acquisition for Investment. Each Purchaser is acquiring the
Notes and the Warrants solely for its own account for the purpose of investment
and not with a view to or for sale in connection with distribution. Each
Purchaser does not have a present intention to sell the Notes or the Warrants,
nor a present arrangement (whether or not legally binding) or intention to
effect any distribution of the Notes or the Warrants to or through any person or
entity; provided, however, that by making the representations herein and subject
to Section 2.2(h) below, such Purchaser does not agree to hold the Notes, Shares
or Warrants for any minimum or other specific term and reserves the right to
dispose of the Notes, Shares or Warrants at any time in accordance with the
applicable provisions of the Transaction Documents and Federal, foreign and
state securities laws applicable to such disposition. Each Purchaser
acknowledges that it is able to bear the financial risks associated with an
investment in the Notes and the Warrants and that it has been given full access
to such records of the Company and the subsidiaries and to the officers of the
Company and the subsidiaries and received such information as it has deemed
necessary or appropriate to conduct its due diligence investigation and has
sufficient knowledge and experience in investing in companies similar to the
Company in terms of the Company's stage of development so as to be able to
evaluate the risks and merits of its investment in the Company.

                                       14
<PAGE>

            (e) Status of Purchasers. Such Purchaser is an "accredited investor"
as defined in Regulation D promulgated under the Securities Act. Such Purchaser
is not required to be registered as a broker-dealer under Section 15 of the
Exchange Act and such Purchaser is not a broker-dealer. Such Purchaser has not
been formed for the specific purpose of acquiring the Notes and the Warrants.

            (f) Opportunities for Additional Information. Each Purchaser
acknowledges that such Purchaser has had the opportunity to ask questions of and
receive answers from, or obtain additional information from, the executive
officers of the Company concerning the financial and other affairs of the
Company, and to the extent deemed necessary in light of such Purchaser's
personal knowledge of the Company's affairs, such Purchaser has asked such
questions and received answers to the full satisfaction of such Purchaser, and
such Purchaser desires to invest in the Company.

            (g) No General Solicitation. Each Purchaser acknowledges that the
Notes and the Warrants were not offered to such Purchaser by means of any form
of general or public solicitation or general advertising, or publicly
disseminated advertisements or sales literature, including (i) any
advertisement, article, notice or other communication published in any
newspaper, magazine, or similar media, or broadcast over television or radio, or
(ii) any seminar or meeting to which such Purchaser was invited by any of the
foregoing means of communications.

            (h) Rule 144. Such Purchaser understands that the Notes, Shares and
Warrants must be held indefinitely unless such Notes, Shares and Warrants are
registered under the Securities Act or an exemption from registration is
available. Such Purchaser acknowledges that such Purchaser is familiar with Rule
144 of the rules and regulations of the Commission, as amended, promulgated
pursuant to the Securities Act ("Rule 144"), and that such person has been
advised that Rule 144 permits resales only under certain circumstances. Such
Purchaser understands that to the extent that Rule 144 is not available, such
Purchaser will be unable to sell any Notes, Shares and Warrants without either
registration under the Securities Act or the existence of another exemption from
such registration requirement. Such Purchaser acknowledges that the Company has
no obligation to register or qualify the Notes, Shares and Warrants for resale
except as set forth in the Transaction Documents. Such Purchaser further
acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Notes,
Shares and Warrants, and on requirements relating to the Company which are
outside of the Purchaser's control, and which the Company is under no obligation
and may not be able to satisfy.

            (i) General. Such Purchaser understands that the Notes and the
Warrants are being offered and sold in reliance on a transactional exemption
from the registration requirement of Federal and state securities laws and the
Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of such Purchaser set
forth herein in order to determine the applicability of such exemptions and the
suitability of such Purchaser to acquire the Notes and the Warrants.

                                       15
<PAGE>

            (j) Independent Investment. Except as may be disclosed in any
filings with the Commission by the Purchasers under Section 13 and/or Section 16
of the Exchange Act, no Purchaser has agreed to act with any other Purchaser for
the purpose of acquiring, holding, voting or disposing of the Notes and the
Warrants purchased hereunder for purposes of Section 13(d) under the Exchange
Act, and each Purchaser is acting independently with respect to its investment
in the Notes and the Warrants.

            (k) Trading Activities. No Purchaser nor any of its affiliates has
an open short position in the Common Stock and each Purchaser agrees that it
shall not, and that it will cause its affiliates not to, engage in any short
sales with respect to the Common Stock.

            (l) Foreign Investors. If a Purchaser is not a United States person
(as defined by Section 7701(a)(30) of the Code), such Purchaser hereby
represents that it has satisfied itself as to the full observance of the laws of
its jurisdiction in connection with any invitation to subscribe for the Notes
and the Warrants or any use of this Agreement, including (i) the legal
requirements within its jurisdiction for the purchase of the Notes and the
Warrants, (ii) any foreign exchange restrictions applicable to such purchase,
(iii) any governmental or other consents that may need to be obtained, and (iv)
the income tax and other tax consequences, if any, that may be relevant to the
purchase, holding, redemption, sale, or transfer of the Units, the Notes and the
Warrants. The Purchaser's subscription and payment for and continued beneficial
ownership of the Notes and the Warrants will not violate any applicable
securities or other laws of the Purchaser's jurisdiction.

            (m) Residence. If the Purchaser is an individual, then such
Purchaser resides in the state or province identified in the address of the
Purchaser set forth on Exhibit A; if the Purchaser is a partnership,
corporation, limited liability company or other entity, then the office or
offices of the Purchaser in which its principal place of business is located is
identified in the address or addresses of the Purchaser set forth on Exhibit A.

                                   ARTICLE III

                                    Covenants

            Section 3.1 Covenants of the Company. The Company covenants with
each of the Purchasers as follows, which covenants are for the benefit of the
Purchasers and their permitted assignees (as defined herein):

            a. Securities Compliance. The Company shall notify the Commission in
accordance with their rules and regulations, of the transactions contemplated by
any of the Transaction Documents, including filing a Form D with respect to the
Notes, Warrants, and Shares as required under Regulation D, and shall take all
other necessary action and proceedings as may be required and permitted by
applicable law, rule and regulation, for the legal and valid issuance of the
Notes, the Warrants, and the Shares to the Purchasers or subsequent holders.

                                       16
<PAGE>

            b. Registration and Listing. The Company shall comply in all
respects with its reporting and filing obligations under the Exchange Act, to
comply with all requirements related to any registration statement filed
pursuant to this Agreement, and to not take any action or file any document
(whether or not permitted by the Securities Act or the rules promulgated
thereunder) to terminate or suspend such registration or to terminate or suspend
its reporting and filing obligations under the Exchange Act or Securities Act,
except as permitted herein or therein. The Company will take all action
necessary to continue the listing or trading of its Common Stock on the OTC
Bulletin Board or other exchange or market on which the Common Stock is trading.
Subject to the terms of the Transaction Documents, the Company further covenants
that it will take such further action as the Purchasers may reasonably request,
all to the extent required from time to time to enable the Purchasers to sell
the Shares without registration under the Securities Act within the limitation
of the exemptions provided by Rule 144 promulgated under the Securities Act.
Upon the request of the Purchasers, the Company shall deliver to the Purchasers
a written certification of a duly authorized officer as to whether it has
complied with such requirements.

            c. Inspection Rights. The Company shall permit, during normal
business hours and upon reasonable request and reasonable notice, each Purchaser
or any employees, agents or representatives thereof, so long as such Purchaser
shall be obligated hereunder to purchase the Notes or shall beneficially own any
Notes, or shall own Conversion Shares which, in the aggregate, represent more
than 2% of the total combined voting power of all voting securities then
outstanding, for purposes reasonably related to such Purchaser's interests as a
stockholder to examine and make reasonable copies of and extracts from the
records and books of account of, and visit and inspect the properties, assets,
operations and business of the Company and any subsidiary, and to discuss the
affairs, finances and accounts of the Company and any subsidiary with any of its
officers, consultants, directors, and key employees.

            d. The Company shall comply, and cause each subsidiary to comply,
with all applicable laws, rules, regulations and orders, noncompliance with
which could have a Material Adverse Effect.

            e. Keeping of Records and Books of Account. The Company shall keep
and cause each subsidiary to keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently
applied, reflecting all financial transactions of the Company and its
subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

            f. Reporting Requirements. If the Commission ceases making periodic
reports filed under the Exchange Act available via the Internet, then at a
Purchaser's request the Company shall furnish the following to such Purchaser so
long as such Purchaser shall beneficially own any Notes that have not been fully
converted or any Warrants that have not been fully exercised: (i) Quarterly

                                       17
<PAGE>

Reports filed with the Commission on Form 10-QSB as soon as practical after the
document is filed with the Commission, and in any event within five (5) business
days after the document is filed with the Commission; (ii) Annual Reports filed
with the Commission on Form 10-KSB as soon as practical after the document is
filed with the Commission, and in any event within five (5) business days after
the document is filed with the Commission; and (iii) Copies of all notices and
information, including without limitation notices and proxy statements in
connection with any meetings, that are provided to holders of shares of Common
Stock, within five (5) business days after the document is filed with the
Commission.

            g. Other Agreements. The Company shall not enter into any agreement
in which the terms of such agreement would restrict or impair the right or
ability to perform of the Company or any subsidiary from performing under any
Transaction Document.

            h. Subsequent Financings. The Company shall not issue any
Indebtedness ranking either senior to or pari-passu with the Notes while at
least 50% of the original principal amount of the Notes remains outstanding
without the consent of the holders of at least 75% of the principal amount of
the then outstanding Notes.

            i. Distributions. So long as any Notes or Warrants remain
outstanding, the Company agrees that it shall not (i) declare or pay any
dividends or make any distributions to any holder(s) of Common Stock or (ii)
purchase or otherwise acquire for value, directly or indirectly, any Common
Stock or other equity security of the Company.

            j. Use of Proceeds. The net proceeds from the sale of the Shares
hereunder shall be used by the Company for working capital, sales and marketing,
and general corporate purposes, and not to redeem any Common Stock or securities
convertible, exercisable or exchangeable into Common Stock or to settle any
outstanding litigation.

            k. Reservation of Shares. So long as any of the Notes or Warrants
remain outstanding, the Company shall take all action necessary to at all times
have authorized, and reserved for the purpose of issuance, no less than one
hundred twenty percent (120%) the aggregate number of shares of Common Stock
needed to provide for the issuance of the Conversion Shares and the Warrant
Shares.

            l. Transfer Agent Instructions. The Company shall issue irrevocable
instructions to its transfer agent, and any subsequent transfer agent, to issue
certificates, registered in the name of each Purchaser or its respective
nominee(s), for the Conversion Shares and the Warrant Shares in such amounts as
specified from time to time by each Purchaser to the Company upon conversion of
the Notes or exercise of the Warrants in the form of Exhibit F attached hereto
(the "Irrevocable Transfer Agent Instructions"). Prior to registration of the
Conversion Shares and the Warrant Shares under the Securities Act, all such
certificates shall bear the restrictive legend specified in Section 5.1 of this
Agreement. The Company warrants that no instruction other than the Irrevocable
Transfer Agent Instructions referred to in this Section 3.1(l) will be given by
the Company to its transfer agent and that the Shares shall otherwise be freely
transferable on the books and records of the Company as and to the extent
provided in this Agreement. If a Purchaser provides the Company with an opinion
of counsel, in a generally acceptable form, to the effect that a public sale,

                                       18
<PAGE>

assignment or transfer of the Shares may be made without registration under the
Securities Act or the Purchaser provides the Company with reasonable assurances
that the Shares can be sold pursuant to Rule 144 without any restriction as to
the number of securities acquired as of a particular date that can then be
immediately sold, the Company shall permit the transfer, and, in the case of the
Conversion Shares and the Warrant Shares, promptly instruct its transfer agent
to issue one or more certificates in such name and in such denominations as
specified by such Purchaser and without any restrictive legend. The Company
acknowledges that a breach by it of its obligations under this Section 3.1(l)
will cause irreparable harm to the Purchasers by vitiating the intent and
purpose of the transaction contemplated hereby. Accordingly, the Company
acknowledges that the remedy at law for a breach of its obligations under this
Section 3.1(l) will be inadequate and agrees, in the event of a breach or
threatened breach by the Company of the provisions of this Section 3.1(l), that
the Purchasers shall be entitled, in addition to all other available remedies,
to an order and/or injunction restraining any breach and requiring immediate
issuance and transfer, without the necessity of showing economic loss and
without any bond or other security being required.

            m. Disposition of Assets. So long as the Notes remain outstanding,
neither the Company nor any Subsidiary shall sell, transfer or otherwise dispose
of any of its properties, assets and rights including, without limitation, its
software and intellectual property, to any person except for sales to customers
in the ordinary course of business or with the prior written consent of the
holders of a majority of the Notes then outstanding.

            n. Reporting Status. So long as a Purchaser beneficially owns any of
the Shares, the Company shall timely file all reports required to be filed with
the Commission pursuant to the Exchange Act, and the Company shall not terminate
its status as an issuer required to file reports under the Exchange Act even if
the Exchange Act or the rules and regulations thereunder would permit such
termination.

            o. Disclosure of Material Information. The Company covenants and
agrees that neither it nor any other person acting on its behalf has provided or
will provide any Purchaser or its agents or counsel with any information that
the Company believes constitutes material non-public information, unless prior
thereto such Purchaser shall have executed a written agreement regarding the
confidentiality and use of such information. The Company understands and
confirms that each Purchaser shall be relying on the foregoing representations
in effecting transactions in securities of the Company.

            p. Pledge of Securities. The Company acknowledges and agrees that
the Shares may be pledged by a Purchaser in connection with a bona fide margin
agreement or other loan or financing arrangement that is secured by the Common
Stock. The pledge of Common Stock shall not be deemed to be a transfer, sale or
assignment of the Common Stock hereunder, and no Purchaser effecting a pledge of
Common Stock shall be required to provide the Company with any notice thereof or
otherwise make any delivery to the Company pursuant to this Agreement or any
other Transaction Document; provided that a Purchaser and its pledgee shall be
required to comply with the provisions of Article V hereof in order to effect a
sale, transfer or assignment of Common Stock to such pledgee. At the Purchasers'
expense, the Company hereby agrees to execute and deliver such documentation as
a pledgee of the Common Stock may reasonably request in connection with a pledge
of the Common Stock to such pledgee by a Purchaser.

                                       19
<PAGE>

            q. Form SB-2 Eligibility. The Company currently meets the
"registrant eligibility" and transaction requirements set forth in the general
instructions to Form SB-2 applicable to "resale" registrations on Form SB-2 and
the Company shall file all reports required to be filed by the Company with the
Commission in a timely manner. Section 3.2

            Section 3.2 Covenants of the Purchasers.

            a. Trading Activities. Each of the Purchasers covenants with the
Company that for so long as such Purchaser owns the Warrants or the Shares, and
for a period of six (6) months thereafter, (i) such Purchaser's trading
activities with respect to the Shares shall be in compliance with all applicable
federal, state and foreign securities laws, and (ii) such Purchaser agrees that
it shall not, and it will cause its Affiliates (as defined below) not to, engage
in any short sales with respect to the Common Stock.

            b. Confidentiality. Each Purchaser agrees that such Purchaser will
keep confidential and will not disclose, divulge, or use for any purpose (other
than to monitor its investment in the Company) any confidential information
obtained from the Company pursuant to the terms of the Transaction Documents,
unless such confidential information (i) is known or becomes known to the public
in general (other than as a result of a breach of this Section 3.2(b) by such
Purchaser), (ii) is or has been independently developed or conceived by the
Purchaser without use of the Company's confidential information, or (iii) is or
has been made known or disclosed to the Purchaser by a third party without a
breach of any obligation of confidentiality such third party may have to the
Company; provided, however, that a Purchaser may disclose confidential
information (x) to its attorneys, accountants, consultants, and other
professionals to the extent necessary to obtain their services in connection
with monitoring its investment in the Company; (y) to any Affiliate, partner,
member, stockholder, or wholly owned subsidiary of such Purchaser in the
ordinary course of business, provided that such Purchaser informs such Person
that such information is confidential and directs such Person to maintain the
confidentiality of such information; or (z) as may otherwise be required by law,
provided that the Purchaser promptly notifies the Company of such disclosure and
takes reasonable steps to minimize the extent of any such required disclosure.
For purposes of this Agreement, "Affiliate" means, with respect to any specified
person or entity (collectively, a "Person"), any other Person who, directly or
indirectly, controls, is controlled by, or is under common control with such
Person, including without limitation any general partner, managing member,
officer or director of such Person, or, in the case of natural persons, any
Immediate Family Member of such Person. For purposes of this Agreement,
"Immediate Family Member" means a child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, of a natural person referred to herein.

            Section 3.3 Restrictions on Transfer.

                                       20
<PAGE>

            a. The Notes, the Warrants and the Shares shall not be sold,
pledged, or otherwise transferred, and the Company shall not recognize and shall
issue stop-transfer instructions to its transfer agent with respect to any such
sale, pledge, or transfer, except upon the conditions specified in this
Agreement (including without limitation Section 5.1), which conditions are
intended to ensure compliance with the provisions of the Securities Act. A
transferring Purchaser will cause any proposed purchaser, pledgee, or transferee
of the Notes, the Warrants and the Shares held by such Purchaser to agree to
take and hold such securities subject to the provisions and upon the conditions
specified in this Agreement and to provide information reasonably requested by
the Company about such purchaser, pledgee or transferee. The Purchasers consent
to the Company making a notation in its records and giving instructions to any
transfer agent in order to implement the restrictions on transfer set forth in
this Section 3.3.

                                   ARTICLE IV

                                   CONDITIONS

            Section 4.1 Conditions Precedent to the Obligation of the Company to
Sell the Shares. The obligation hereunder of the Company to issue and sell the
Notes and the Warrants to the Purchasers is subject to the satisfaction or
waiver, at or before the Closing, of each of the conditions set forth below.
These conditions are for the Company's sole benefit and may be waived by the
Company at any time in its sole discretion.

            (a) Accuracy of Each Purchaser's Representations and Warranties. The
representations and warranties of each Purchaser shall be true and correct in
all respects as of the date when made and as of the Closing Date as though made
at that time, except for representations and warranties that are expressly made
as of a particular date, which shall be true and correct in all respects as of
such date.

            (b) Performance by the Purchasers. Each Purchaser shall have
performed, satisfied and complied in all respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by such Purchaser at or prior to the Closing.

            (c) No Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.

            (d) Delivery of Purchase Price. The Purchase Price for the Units has
been delivered to the Company at the Closing Date.

            (e) Delivery of Transaction Documents. The Transaction Documents
have been duly executed and delivered by the Purchasers to the Company.

                                       21
<PAGE>

            (f) Qualifications. All authorizations, approvals or permits, if
any, of any governmental authority or regulatory body of the United States or of
any state that are required in connection with the lawful issuance and sale of
the Notes and the Warrants pursuant to this Agreement shall be obtained and
effective as of the Closing.

            Section 4.2 Conditions Precedent to the Obligation of the Purchasers
to Purchase the Units. The obligation hereunder of each Purchaser to acquire and
pay for the Units is subject to the satisfaction or waiver, at or before the
Closing, of each of the conditions set forth below. These conditions are for
each Purchaser's sole benefit and may be waived by such Purchaser at any time in
its sole discretion.

            (a) Accuracy of the Company's Representations and Warranties. Each
of the representations and warranties of the Company in this Agreement shall be
true and correct in all respects as of the date when made and as of the Closing
Date as though made at that time (except for representations and warranties that
are expressly made as of a particular date), which shall be true and correct in
all respects as of such date.

            (b) Performance by the Company. The Company shall have performed,
satisfied and complied in all respects with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing.

            (c) No Suspension, Etc. Trading in the Company's Common Stock shall
not have been suspended by the Commission or the OTC Bulletin Board (except for
any suspension of trading of limited duration agreed to by the Company, which
suspension shall be terminated prior to the applicable Closing), and, at any
time prior to the Closing Date, trading in securities generally as reported by
Bloomberg Financial Markets ("Bloomberg") shall not have been suspended or
limited, or minimum prices shall not have been established on securities whose
trades are reported by Bloomberg, or on the New York Stock Exchange, nor shall a
banking moratorium have been declared either by the United States or New York
State authorities, nor shall there have occurred any material outbreak or
escalation of hostilities or other national or international calamity or crisis
of such magnitude in its effect on, or any material adverse change in any
financial market which, in each case, in the judgment of such Purchaser, makes
it impracticable or inadvisable to purchase the Notes and Warrants.

            (d) No Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.

            (e) No Proceedings or Litigation. No action, suit or proceeding
before any arbitrator or any governmental authority shall have been commenced,
and no investigation by any governmental authority shall have been threatened,
against the Company or any subsidiary, or any of the officers, directors or

                                       22
<PAGE>

affiliates of the Company or any subsidiary seeking to restrain, prevent or
change the transactions contemplated by this Agreement, or seeking damages in
connection with such transactions.

            (f) Certificates. The Company shall have executed and delivered to
the Purchasers the certificates (in such denominations as such Purchaser shall
request) for the Notes and the Warrants being acquired by such Purchaser at the
Closing (in such denominations as such Purchaser shall request).

            (g) Resolutions. The Board of Directors of the Company shall have
adopted resolutions consistent with Section 2.1(b) hereof in a form reasonably
acceptable to such Purchaser (the "Resolutions").

            (h) Reservation of Shares. As of the Closing Date, the Company shall
have reserved out of its authorized and unissued Common Stock, solely for the
purpose of effecting the conversion of the Notes and the exercise of the
Warrants, a number of shares of Common Stock equal to one hundred twenty percent
(120%) of the aggregate number of Conversion Shares issuable upon conversion of
the Notes outstanding on the Closing Date and the number of Warrant Shares
issuable upon exercise of the number of Warrants assuming such Warrants were
granted on the Closing Date.

            (i) Secretary's Certificate. The Company shall have delivered to
such Purchaser a secretary's certificate, dated as of the Closing Date, as to
(i) the Resolutions, (ii) the Articles, (iii) the Bylaws, and (iii) the
authority and incumbency of the officers of the Company executing the
Transaction Documents and any other documents required to be executed or
delivered in connection therewith.

            (j) Officer's Certificate. The Company shall have delivered to the
Purchasers a certificate of an executive officer of the Company, dated as of the
Closing Date, confirming the accuracy of the Company's representations,
warranties and covenants as of such Closing Date and confirming the compliance
by the Company with the conditions precedent set forth in Section 4.2 as of the
Closing Date.

            (k) Material Adverse Effect. No Material Adverse Effect shall have
occurred at or before the Closing Date.

            (i) Qualifications. All authorizations, approvals or permits, if
any, of any governmental authority or regulatory body of the United States or of
any state that are required in connection with the lawful issuance and sale of
the Notes and the Warrants pursuant to this Agreement shall be obtained and
effective as of the Closing.

                                       23
<PAGE>

                                    ARTICLE V

                            Stock Certificate Legend

            Section 5.1 Legend. Each certificate representing the Notes and
Warrants, and, if appropriate, securities issued upon conversion thereof, shall
be stamped or otherwise imprinted with a legend substantially in the following
form (in addition to any legend required by applicable state securities or "blue
sky" laws):

      THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
      THE UNITED STATES SECURITIES ACT OF 1933, AND MAY NOT BE SOLD,
      TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED ABSENT AN
      EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR COMPLIANCE WITH
      AN AVAILABLE EXEMPTION FROM REGISTRATION. THE COMPANY MAY REFUSE
      TO AUTHORIZE ANY TRANSFER OF THE SECURITIES IN RELIANCE ON AN
      EXEMPTION FROM REGISTRATION UNTIL IT HAS RECEIVED AN OPINION OF
      COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
      REGISTRATION IS NOT REQUIRED.

      THE COMPANY IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OF STOCK
      OR MORE THAN ONE SERIES OF ANY CLASS OF STOCK. THE DESIGNATIONS,
      PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER
      SPECIAL RIGHTS OF THE SHARES OF EACH CLASS OR SERIES THEREOF AND
      THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH RIGHTS,
      ARE SET FORTH IN THE ARTICLES OF INCORPORATION OF THE COMPANY. A
      COPY OF SAID ARTICLES OF INCORPORATION WILL BE FURNISHED FREE OF
      CHARGE TO THE HOLDER OF THIS CERTIFICATE UPON WRITTEN REQUEST TO
      THE SECRETARY OF THE COMPANY.

      THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN
      ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY
      AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE
      SECRETARY OF THE COMPANY.

      The Company agrees to reissue certificates representing any of the Shares,
without the legend set forth above if at such time, prior to making any transfer
of any such securities, such holder thereof shall give written notice to the
Company describing the manner and terms of such transfer and removal as the
Company may reasonably request. Such proposed transfer and removal will not be
effected until: (a) either (i) the Company has received a written opinion of
legal counsel who shall, and whose legal opinion shall be, reasonably
satisfactory to the Company, addressed to the Company, to the effect that the
registration of such Shares under the Securities Act is not required in
connection with such proposed transfer, (ii) a registration statement under the
Securities Act covering such proposed disposition has been filed by the Company
with the Commission and has become effective under the Securities Act, (iii) the
Company has received other evidence reasonably satisfactory to the Company that
such registration and qualification under the Securities Act and state
securities laws are not required, or (iv) the holder provides the Company with

                                       24
<PAGE>

reasonable assurances reasonably satisfactory to counsel to the Company, that
such security can be sold pursuant to Rule 144 under the Securities Act; and (b)
either (i) the Company has received a written opinion of legal counsel who
shall, and whose legal opinion shall be reasonably satisfactory to the Company,
addressed to the Company to the effect that registration or qualification under
the securities or "blue sky" laws of any state is not required in connection
with such proposed disposition, or (ii) the Company has received other evidence
reasonably satisfactory to the Company that compliance with applicable state
securities or "blue sky" laws has been effected or a valid exemption exists with
respect thereto. The Company will respond to any such notice from a holder
within five (5) business days. In the case of any proposed transfer under this
Section 5.1, the Company will use commercially reasonable efforts to comply with
any such applicable state securities or "blue sky" laws, but shall in no event
be required, (x) to qualify to do business in any state where it is not then
qualified, (y) to take any action that would subject it to tax or to the general
service of process in any state where it is not then subject, or (z) to comply
with state securities or "blue sky" laws of any state for which registration by
coordination is unavailable to the Company. The restrictions on transfer
contained in this Section 5.1 shall be in addition to, and not by way of
limitation of, any other restrictions on transfer contained in any other section
of this Agreement. Whenever a certificate representing the Shares is required to
be issued to a Purchaser without a legend, in lieu of delivering physical
certificates representing the applicable Shares (provided that a registration
statement under the Securities Act providing for the resale of the Shares is
then in effect and such request is in connection with a sale), the Company shall
cause its transfer agent to electronically transmit such Shares to a Purchaser
by crediting the account of such Purchaser's Prime Broker with the Depository
Trust Company ("DTC") through its Deposit Withdrawal Agent Commission ("DWAC")
system (to the extent not inconsistent with any provisions of this Agreement)
provided that the Company and the Company's transfer agent are participating in
DTC through the DWAC system.

                                   ARTICLE VI

                                 Indemnification

            Section 6.1 General Indemnity. The Company agrees to indemnify and
hold harmless the Purchasers (and their respective directors, officers,
managers, partners, members, shareholders, affiliates, agents, successors and
assigns) from and against any and all losses, liabilities, deficiencies, costs,
damages and expenses (including, without limitation, reasonable attorneys' fees,
charges and disbursements) incurred by the Purchasers solely as a result and to
the extent of a material inaccuracy in or breach of the representations,
warranties or covenants made by the Company herein. Each Purchaser severally but
not jointly agrees to indemnify and hold harmless the Company and its directors,
officers, affiliates, agents, successors and assigns from and against any and
all losses, liabilities, deficiencies, costs, damages and expenses (including,
without limitation, reasonable attorneys' fees, charges and disbursements)
incurred by the Company solely as result and to the extent of a material
inaccuracy in or breach of the representations, warranties or covenants made by
such Purchaser herein. In addition, each Purchaser agrees to indemnify and to
hold harmless the Company from any liability for any commission or compensation
in the nature of a finder's or broker's fee arising from the transactions
contemplated by this Agreement (and the costs and expenses of defending against

                                       25
<PAGE>

such liability or asserted liability) for which each Purchaser or any of its
officers, employees, or representatives is responsible. The maximum aggregate
liability of each Party pursuant to its indemnification obligations under this
Article VI shall not exceed the portion of the Purchase Price paid by such
Purchaser hereunder.

            Section 6.2 Indemnification Procedure. Any party entitled to
indemnification under this Article VI (an "indemnified party") will promptly
give written notice to the indemnifying party of any matters giving rise to a
claim for indemnification; provided, that the failure of any party entitled to
indemnification hereunder to give notice as provided herein shall not relieve
the indemnifying party of its obligations under this Article VI except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought against an
indemnified party in respect of which indemnification is sought hereunder, the
indemnifying party shall be entitled to participate in and, unless in the
reasonable judgment of the indemnified party a conflict of interest between it
and the indemnifying party may exist with respect of such action, proceeding or
claim, to assume the defense thereof with counsel reasonably satisfactory to the
indemnified party. In the event that the indemnifying party advises an
indemnified party that it will contest such a claim for indemnification
hereunder, or fails, within thirty (30) days of receipt of any indemnification
notice to notify, in writing, such person of its election to defend, settle or
compromise, at its sole cost and expense, any action, proceeding or claim (or
discontinues its defense at any time after it commences such defense), then the
indemnified party may, at its option, defend, settle or otherwise compromise or
pay such action or claim. In any event, unless and until the indemnifying party
elects in writing to assume and does so assume the defense of any such claim,
proceeding or action, the indemnified party's costs and expenses arising out of
the defense, settlement or compromise of any such action, claim or proceeding
shall be losses subject to indemnification hereunder. The indemnified party
shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or claim by the indemnifying party and
shall furnish to the indemnifying party all information reasonably available to
the indemnified party which relates to such action or claim. The indemnifying
party shall keep the indemnified party fully apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto. If
the indemnifying party elects to defend any such action or claim, then the
indemnified party shall be entitled to participate in such defense with counsel
of its choice at its sole cost and expense. The indemnifying party shall not be
liable for any settlement of any action, claim or proceeding effected without
its prior written consent, which consent shall not be unreasonably withheld.
Notwithstanding anything in this Article VI to the contrary, the indemnifying
party shall not, without the indemnified party's prior written consent, settle
or compromise any claim or consent to entry of any judgment in respect thereof
which imposes any future obligation on the indemnified party or which does not
include, as an unconditional term thereof, the giving by the claimant or the
plaintiff to the indemnified party of a release from all liability in respect of
such claim. The indemnification required by this Article VI shall be made by
periodic payments of the amount thereof during the course of investigation or
defense, as and when bills are received or expense, loss, damage or liability is
incurred, so long as the indemnified party irrevocably agrees to refund such
moneys if it is ultimately determined by a court of competent jurisdiction that

                                       26
<PAGE>

such party was not entitled to indemnification. The indemnity agreements
contained herein shall be in addition to (a) any cause of action or similar
rights of the indemnified party against the indemnifying party or others, and
(b) any liabilities the indemnifying party may be subject to pursuant to the
law.

                                   ARTICLE VII

                                  Miscellaneous

            Section 7.1 Fees and Expenses. Except as otherwise set forth in this
Agreement and the other Transaction Documents, each party shall pay the fees and
expenses of its advisors, counsel, accountants and other experts, if any, and
all other expenses, incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement, provided
that the Company shall pay the Purchasers' attorneys' fees and expenses
(including disbursements and out-of-pocket expenses) incurred in connection with
(i) the preparation, negotiation, execution and delivery of this Agreement and
the other Transaction Documents and the transactions contemplated thereunder,
which payment shall be made at Closing, and (ii) any amendments, modifications
or waivers of this Agreement or any of the other Transaction Documents requested
by the Company. The Company shall also pay to the Purchasers all reasonable fees
and expenses incurred by the Purchasers in connection with the enforcement of
this Agreement or any of the other Transaction Documents, including, without
limitation, all reasonable attorneys' fees and expenses.

            Section 7.2 Specific Enforcement, Consent to Jurisdiction; Waiver of
Jury Trial.

            (a) The Company and the Purchasers acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement or the other Transaction Documents were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent or
cure breaches of the provisions of this Agreement or the Registration Rights
Agreement and to enforce specifically the terms and provisions hereof or
thereof, this being in addition to any other remedy to which any of them may be
entitled by law or equity.

            (b) Each of the Company and the Purchasers (i) hereby irrevocably
submits to the jurisdiction of the United States District Court sitting in the
Delaware and the courts of the State of Delaware for the purposes of any suit,
action or proceeding arising out of or relating to this Agreement or any of the
other Transaction Documents or the transactions contemplated hereby or thereby
and (ii) hereby waives, and agrees not to assert in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
such court, that the suit, action or proceeding is brought in an inconvenient
forum or that the venue of the suit, action or proceeding is improper. Each of
the Company and the Purchasers consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the
address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof. Nothing in this Section 7.2 shall affect or limit any right to serve
process in any other manner permitted by law.

                                       27
<PAGE>

            (c) Waiver of Jury Trial. EACH OF THE PARTIES HEREBY UNCONDITIONALLY
AND IRREVOCABLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

            Section 7.3 Entire Agreement; Amendment. This Agreement and the
Transaction Documents contains the entire understanding and agreement of the
parties with respect to the matters covered hereby and, except as specifically
set forth herein or in the Transaction Documents, neither the Company nor any of
the Purchasers makes any representations, warranty, covenant or undertaking with
respect to such matters and they supersede all prior understandings and
agreements with respect to said subject matter, all of which are merged herein.
No provision of this Agreement may be waived or amended other than by a written
instrument signed by the Company and the holders of at least seventy-five
percent (75%) of the Preferred Shares then outstanding, and no provision hereof
may be waived other than by an a written instrument signed by the party against
whom enforcement of any such amendment or waiver is sought. No such amendment
shall be effective to the extent that it applies to less than all of the holders
of the Preferred Shares then outstanding. No consideration shall be offered or
paid to any person to amend or consent to a waiver or modification of any
provision of any of the Transaction Documents unless the same consideration is
also offered to all of the parties to the Transaction Documents or holders of
Preferred Shares, as the case may be.

            Section 7.4 Notices. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery by telex (with correct answer back
received), telecopy or facsimile at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

           If to the Company:              BioForce Nanosciences Holdings, Inc.
                                           1615 Golden Aspen Drive, Suite 101
                                           Ames, Iowa, 50010
                                           Attn: Chief Executive Officer
                                           Tel. No.: (515) 233-8333
                                           Fax No.:  (515) 233-8337

           with copies (which shall not    Sonnenschein, Nath & Rosenthal, LLP
           constitute notice) to:          101 JFK Parkway
                                           Short Hills, NJ 07078-2708
                                           Attention: Jeffrey A. Baumel, Esq.
                                           Tel. No.:  (973) 912-7100
                                           Fax No.:  (973) 912-7199

           If to any Purchaser:            At the address of such Purchaser
                                           set forth on Exhibit A to this
                                           Agreement

                                       28
<PAGE>

      Any party hereto may from time to time change its address for notices by
giving at least ten (10) days written notice of such changed address to the
other party hereto.

            Section 7.5 Waivers. No waiver by either party of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any other
provisions, condition or requirement hereof, nor shall any delay or omission of
any party to exercise any right hereunder in any manner impair the exercise of
any such right accruing to it thereafter.

            Section 7.6 Headings. The article, section and subsection headings
in this Agreement are for convenience only and shall not constitute a part of
this Agreement for any other purpose and shall not be deemed to limit or affect
any of the provisions hereof.

            Section 7.7 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and assigns.

            Section 7.8 No Third Party Beneficiaries. This Agreement is intended
for the benefit of the parties hereto and their respective permitted successors
and assigns and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

            Section 7.9 Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware, without
giving effect to any of the conflicts of law principles which would result in
the application of the substantive law of another jurisdiction. This Agreement
shall not be interpreted or construed with any presumption against the party
causing this Agreement to be drafted.

            Section 7.10 Survival. The representations and warranties of the
Company and the Purchasers shall survive the execution and delivery hereof and
the Closing until the first anniversary of the Closing Date, except the
agreements and covenants set forth in Articles I, III, V, VI and VII of this
Agreement shall survive the execution and delivery hereof and the Closing
hereunder.

            Section 7.11 Counterparts. This Agreement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an
original and, all of which taken together shall constitute one and the same
Agreement and shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being understood that all
parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid binding
obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile signature
were the original thereof.

                                       29
<PAGE>

            Section 7.12 Publicity. The Company agrees that it will not
disclose, and will not include in any public announcement, the name of the
Purchasers without the consent of the Purchasers unless and until such
disclosure is required by law or applicable regulation, and then only to the
extent of such requirement.

            Section 7.13 Severability. The provisions of this Agreement and the
Transaction Documents are severable and, in the event that any court of
competent jurisdiction shall determine that any one or more of the provisions or
part of the provisions contained in this Agreement or the Transaction Documents
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision or part of a provision of this Agreement or the Transaction
Documents and such provision shall be reformed and construed as if such invalid
or illegal or unenforceable provision, or part of such provision, had never been
contained herein, so that such provisions would be valid, legal and enforceable
to the maximum extent possible.

            Section 7.14 Further Assurances. From and after the date of this
Agreement, upon the request of any Purchaser or the Company, each of the Company
and the Purchasers shall execute and deliver such instrument, documents and
other writings as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this Agreement, the
Notes, the Conversion Shares, the Warrants, and the Warrant Shares.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       30
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officer as of the date first above
written.

                                          BIOFORCE NANOSCIENCES HOLDINGS, INC.

                                          By:
                                              ----------------------------------
                                              Name:  Gregory D. Brown
                                              Title: Chief Financial Officer

                                          PURCHASER

                                          By:
                                              ----------------------------------
                                              Name:
                                              Title:

<PAGE>

                                EXHIBIT A to the
            CONVERTIBLE SECURED PROMISSORY NOTE AND WARRANT PURCHASE
                                  AGREEMENT FOR
                      BIOFORCE NANOSCIENCES HOLDINGS, INC.

<TABLE>
<CAPTION>
                                                                         Method of Purchase Price Payment
                                                   Number of        ----------------------------------------
Name and Address of Purchaser                   Units Purchased     Wire Transfer(1)       Note Surrender(2)
-----------------------------                   ---------------     ----------------       -----------------
<S>                                                <C>                <C>                     <C>
FCPR SGAM AI Biotechnology Fund                    200,000.00         $200,000.00                  $0.00
Immueble SGAM
170 Place Henri Renault
Paris La Defense, Cedex, France 92043

Mr. Kerry M. Frey                                   33,333.33          $23,333.33             $10,000.00
6248 N. Lakewood Drive
Chicago, IL 60660

Dr. Eric R. Henderson                               33,333.33          $23,333.33             $10,000.00
3725 Mathews Road
Ames, IA 50014

Mr. Gregory D. Brown                                33,333.33          $23,333.33             $10,000.00
5614 Thunder Road
Ames, IA 50014
</TABLE>

(1) Wire transfer will be made in immediately available funds to an account
designated by the Company

(2) Notes to be surrendered are promissory notes evidencing cash advances made
to the Company on May 28, 2008 and May 29, 2008

<PAGE>

                               EXHIBIT B-1 to the
            CONVERTIBLE SECURED PROMISSORY NOTE AND WARRANT PURCHASE
                                  AGREEMENT FOR
                      BIOFORCE NANOSCIENCES HOLDINGS, INC.

                   FORM OF CONVERTIBLE SECURED PROMISSORY NOTE

<PAGE>

                               EXHIBIT B-2 to the
            CONVERTIBLE SECURED PROMISSORY NOTE AND WARRANT PURCHASE
                                  AGREEMENT FOR
                      BIOFORCE NANOSCIENCES HOLDINGS, INC.

                                 FORM OF WARRANT

<PAGE>

                                EXHIBIT C to the
            CONVERTIBLE SECURED PROMISSORY NOTE AND WARRANT PURCHASE
                                  AGREEMENT FOR
                      BIOFORCE NANOSCIENCES HOLDINGS, INC.

                           TRANSFER AGENT INSTRUCTIONS

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