Document:

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT AND
HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE
"SECURITIES  ACT").  THESE  SECURITIES  MAY NOT BE SOLD  OR  TRANSFERRED  IN THE
ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION  THEREFROM UNDER THE SECURITIES ACT
OR UNDER STATE  SECURITIES  LAWS.  THIS WARRANT AND THE WARRANT SHARES  ISSUABLE
UPON EXERCISE OF THIS WARRANT MAY NOT BE PLEDGED, SOLD, ASSIGNED, TRANSFERRED OR
OTHERWISE DISPOSED OF EXCEPT PURSUANT TO THE EXPRESS PROVISIONS OF THIS WARRANT,
AND NO SALE, ASSIGNMENT, TRANSFER, OR OTHER DISPOSITION OF THIS WARRANT SHALL BE
VALID OR EFFECTIVE  UNLESS AND UNTIL SUCH  PROVISIONS  SHALL HAVE BEEN  COMPLIED
WITH.

                                              Date of Issuance: October 28, 2003

                               VITAL LIVING, INC.
                             Stock Purchase Warrant
                          (Void after October 27, 2008)

     Vital  Living,  Inc.,  a Nevada  corporation  (the  "Company"),  for  value
received,  hereby  certifies  and agrees that  _____________  or its  registered
assigns (the "Registered Holder"),  is entitled,  subject to the terms set forth
below,  to  purchase  from the  Company,  at any time or from time to time on or
after the date hereof (the "Date of Issuance")  and on or before the fifth (5th)
anniversary  of the Date of Issuance  at not later than 5:00 p.m.  New York time
(such date and time, the  "Expiration  Time"),  ___________  (___________)  duly
authorized, validly issued, fully paid and nonassessable shares of the Company's
common  stock,  $0.001  par value per share (the  "Common  Stock") at an initial
exercise price equal to $___ per share,  subject to adjustment in certain cases
as described herein. The shares  purchasable upon exercise of this Warrant,  and
the  purchase  price per share,  are  hereinafter  referred  to as the  "Warrant
Shares" and the  "Exercise  Price,"  respectively.  The term  "Warrant"  as used
herein  shall  include  this  Warrant  and  any  other  warrants   delivered  in
substitution or exchange therefor, as provided herein.

     This  Warrant  is  issued  pursuant  to that  certain  Securities  Purchase
Agreement of even date  herewith by and among the Company and certain  investors
set forth therein (the "Securities Purchase Agreement").

     The  Warrant   Shares  are   entitled  to  the  benefits  of  that  certain
registration  rights  agreement  of even date  herewith  between the Company and
certain investors named therein (the "Registration Rights Agreement").

<PAGE>

     1. Exercise.

     1.1. Method of Exercise

          (a) This Warrant may be exercised by the Registered  Holder,  in whole
or in part, by surrendering this Warrant,  with a Notice of Exercise in the form
of Annex A hereto (the "Notice of Exercise")  duly  executed by such  Registered
Holder or by such Registered Holder's duly authorized attorney, at the principal
office of the Company set forth on the signature  page hereto,  or at such other
office or  agency as the  Company  may  designate  in  writing  (the  "Company's
Office"),  accompanied by payment in full, in lawful money of the United States,
of the  Exercise  Price  payable  in  respect of the number of shares of Warrant
Shares purchased upon such exercise.

          (b) Each  exercise  of this  Warrant  shall  be  deemed  to have  been
effected  immediately  prior to the  close of  business  on the day on which the
appropriate  Annex form shall be dated and directed to the Company (as evidenced
by the  applicable  postmark or other  evidence of  transmittal)  as provided in
Section 1(a) hereof.  At such time, the person or persons in whose name or names
any  certificates  for Warrant  Shares shall be issuable  upon such  exercise as
provided  in Section  1(c)  hereof  shall be deemed to have become the holder or
holders of record of the Warrant Shares represented by such certificates.

          (c) As soon as practicable after the exercise of this Warrant, in full
or in part, and in any event within ten (10) days  thereafter,  the Company,  at
its  expense,  will  cause to be issued in the name of,  and  delivered  to, the
Registered Holder, or as such Registered Holder (upon payment by such Registered
Holder of any applicable transfer taxes) may direct:

               (i) a certificate or certificates  for the number of full Warrant
Shares to which such  Registered  Holder  shall be entitled  upon such  exercise
plus,  in lieu of any  fractional  share to which such  Registered  Holder would
otherwise  be  entitled,  cash in an amount  determined  pursuant  to  Section 4
hereof; and

               (ii) in case such  exercise  is in part  only,  a new  warrant or
warrants (dated the date hereof) of like tenor, representing in the aggregate on
the face or faces  thereof the number of Warrant  Shares equal  (without  giving
effect to any adjustment therein) to the number of such shares called for on the
face of this Warrant minus the number of such shares purchased by the Registered
Holder upon such  exercise as provided in Section 3 hereof or received  pursuant
to Section 1.2 hereof.

     1.2.  Exercise  by  Surrender  of  Warrant.  At any time  after the  Target
Effective Date when the Registration Statement (as such terms are defined in the
Registration  Rights  Agreement) is not effective,  in addition to the method of
payment  set  forth  in  Section  1.1 and in lieu of any cash  payment  required
thereunder,  the Warrant may be  exercised  by  surrendering  the Warrant in the
manner  specified in this Section 1, together with  irrevocable  instructions to
the Company to issue in exchange  for the Warrant the number of shares of Common
Stock  equal  to the  product  of (x) the  number  of  shares  of  Common  Stock
underlying the Warrants multiplied by (y) a fraction,  the numerator of which is
the Market Value (as defined  below) of the Common Stock less the Exercise Price
and the  denominator of which is such Market Value.  As used herein,  the phrase
"Market  Value" at any date shall be deemed to be the last  reported sale price,

<PAGE>

or, in case no such  reported  sale takes place on such day,  the average of the
last reported sale prices for the last three (3) trading days, in either case as
officially  reported by the principal  securities exchange or "over the counter"
(including  on the pink sheets or bulletin  board)  exchange on which the Common
Stock is listed or admitted to trading, or, if the Common Stock is not listed or
admitted  to  trading  on any  national  securities  exchange  or sold "over the
counter",  the average closing bid price as furnished by the NASD through Nasdaq
or similar organization if Nasdaq is no longer reporting such information, or if
the  Common  Stock is not  quoted on  Nasdaq,  as  determined  in good  faith by
resolution  of  the  Board  of  Directors  of the  Company,  based  on the  best
information available to it.

     2. Shares to be Fully Paid;  Reservation of Shares.  The Company  covenants
and agrees that all shares of Common Stock which may be issued upon the exercise
of the rights represented by this Warrant will, upon issuance by the Company, be
validly issued,  fully paid and  nonassessable,  and free from preemptive rights
and free from all taxes,  liens and charges  with respect  thereto.  The Company
further  covenants  and agrees  that,  from and after the Date of  Issuance  and
during the period  within  which the rights  represented  by this Warrant may be
exercised, the Company will at all times have authorized, and reserve, free from
preemptive  rights,  out of its authorized but unissued  shares of Common Stock,
solely for the purpose of effecting the exercise of this  Warrant,  a sufficient
number of shares of Common  Stock to  provide  for the  exercise  of the  rights
represented by this Warrant.

     3. Fractional  Shares.  The Company shall not be required upon the exercise
of this Warrant to issue any  fractional  shares,  but shall make an  adjustment
therefor in cash on the basis of the Market Value for each  fractional  share of
the  Company's  Common  Stock  which  would be  issuable  upon  exercise of this
Warrant.

     4. Requirements for Transfer.

     (a) Warrant  Register.  The Company will  maintain a register (the "Warrant
Register")  containing  the  names and  addresses  of the  Registered  Holder or
Registered Holders. Any Registered Holder of this Warrant or any portion thereof
may change its address as shown on the Warrant Register by written notice to the
Company requesting such change, and the Company shall promptly make such change.
Until this Warrant is  transferred on the Warrant  Register of the Company,  the
Company may treat the Registered  Holder as shown on the Warrant Register as the
absolute owner of this Warrant for all purposes,  notwithstanding  any notice to
the  contrary,  provided,  however,  that if and when this  Warrant is  properly
assigned in blank,  the Company may,  but shall not be  obligated  to, treat the
bearer hereof as the absolute owner hereof for all purposes, notwithstanding any
notice to the contrary.

     (b) Warrant  Agent.  The Company may, by written  notice to the  Registered
Holder,  appoint an agent for the purpose of  maintaining  the Warrant  Register
referred to in Section 4(a) hereof,  issuing the Common Stock  issuable upon the
exercise of this Warrant, exchanging this Warrant, replacing this Warrant or any
or all of the foregoing. Thereafter, any such registration,  issuance, exchange,
or replacement, as the case may be, may be made at the office of such agent.

     (c) Transfer. Subject to the provisions of this Section 4, this Warrant and
all rights hereunder are  transferable,  in whole or in part, upon the surrender
of this Warrant with a properly  executed  Assignment Form in substantially  the
form attached hereto as Annex B (the  "Assignment")  at the principal  office of
the Company.
<PAGE>

     (d) Exchange of Warrant  Upon a Transfer.  On surrender of this Warrant for
exchange,  properly  endorsed on the Assignment and subject to the provisions of
this Warrant and with the  limitations on assignments and transfers as contained
in this Section 4, the Company at its expense  shall issue to or on the order of
the  Registered  Holder a new warrant or warrants of like tenor,  in the name of
the Registered  Holder or as the Registered Holder (on payment by the Registered
Holder of any applicable  transfer  taxes) may direct,  for the number of shares
issuable upon exercise hereof.

     5. Adjustment.

     (a) Computation of Adjusted Exercise Price. Except as hereinafter provided,
in case the Company  shall at any time after the date  hereof  issue or sell any
shares of its Stock (as defined in Section  5(g)),  other than the  issuances or
sales  referred to in Section 5(h) hereof,  for a  consideration  per share less
than the Exercise Price in effect  immediately  prior to the issuance or sale of
such shares,  or without  consideration,  then  forthwith  upon such issuance or
sale,  the Exercise Price shall (until another such issuance or sale) be reduced
to the price (calculated to the nearest full cent) equal to the quotient derived
by  dividing  (A) an  amount  equal  to the  sum of (X) the  product  of (a) the
Exercise Price in effect immediately prior to such issuance or sale,  multiplied
by (b) the total number of shares of Stock outstanding immediately prior to such
issuance or sale, plus (Y) the aggregate of the amount of all consideration,  if
any, received by the Company upon such issuance or sale, by (B) the total number
of  shares  of  Stock  outstanding  immediately  after  such  issuance  or sale;
provided,  however,  that in no event  shall  the  Exercise  Price  be  adjusted
pursuant to this  computation  to an amount in excess of the  Exercise  Price in
effect  immediately  prior  to  such  computation,  except  in  the  case  of  a
combination of outstanding shares of Stock, as provided by Section 5(c) hereof.

     For the purposes of this Section 5 the term  Exercise  Price shall mean the
Exercise  Price  per  share set  forth on the  first  page of this  Warrant,  as
adjusted from time to time pursuant to the provisions of this Section 5.

          (i) For purposes of any computation to be made in accordance with this
Section 5(a), the following provisions shall be applicable:

          (ii)  In case  of the  issuance  or sale  of  shares  of  Stock  for a
consideration  part or all of  which  shall  be  cash,  the  amount  of the cash
consideration,  shall be deemed to be the amount of cash received by the Company
for such  shares  (or,  if  shares  of Stock  are  offered  by the  Company  for
subscription,  the subscription price, or, if either of such securities shall be
sold to  underwriters  or dealers  for public  offering  without a  subscription
price, the public offering price,  before  deducting  therefrom any compensation
paid or  discount  allowed  in the sale,  underwriting  or  purchase  thereof by
underwriters  or  dealers  or  other  persons  or  entities  performing  similar
services), or any expenses incurred in connection therewith and less any amounts
payable  to  security  holders  or any  affiliate  thereof,  including,  without

<PAGE>

limitation, any employment agreement,  royalty,  consulting agreement,  covenant
not to compete,  earnout or  contingent  payment  right or similar  arrangement,
agreement or understanding,  whether oral or written;  all such amounts shall be
valued at the  aggregate  amount  payable  thereunder  whether such payments are
absolute or contingent and irrespective of the period or uncertainty of payment,
the rate of interest, if any, or the contingent nature thereof.

(iii) In case of the  issuance  or sale  (otherwise  than as a dividend or other
distribution on any stock of the Company) of shares of Stock for a consideration
part or all of which shall be other than cash,  the amount of the  consideration
therefor  other than cash shall be deemed to be the value of such  consideration
as determined in good faith by the Board of Directors of the Company.

          (iv) Shares of Stock issuable by way of dividend or other distribution
on any  capital  stock  of the  Company  shall be  deemed  to have  been  issued
immediately  after the opening of business on the day  following the record date
for the determination of stockholders entitled to receive such dividend or other
distribution and shall be deemed to have been issued without consideration.

          (v)  The  reclassification  of  securities  of the Company  other than
shares of Stock into  securities  including  shares of Stock  shall be deemed to
involve the issuance of such shares of Stock for  consideration  other than cash
immediately  prior  to  the  close  of  business  on  the  date  fixed  for  the
determination of security holders entitled to receive such shares, and the value
of the  consideration  allocable to such shares of Stock shall be  determined as
provided in Section 5(v).

          (vi) The number of shares of Stock at any one time  outstanding  shall
include  the  aggregate  number  of  shares  issued  or  issuable   (subject  to
readjustment  upon  the  actual  issuance  thereof)  upon the  exercise  of then
outstanding  options,   rights,   warrants,  and  convertible  and  exchangeable
securities.

     (b) Options, Rights, Warrants and Convertible and Exchangeable Securities.

          (i) In case the Company  shall at any time after the date hereof issue
options,  rights or  warrants  to  subscribe  for shares of Stock,  or issue any
securities  convertible  into  or  exchangeable  for  shares  of  Stock,  for  a
consideration per share less than the Exercise Price in effect immediately prior
to the  issuance  of such  options,  rights,  warrants  or such  convertible  or
exchangeable securities, or without consideration,  the Exercise Price in effect
immediately  prior to the  issuance of such  options,  rights,  warrants or such
convertible or exchangeable securities,  as the case may be, shall be reduced to
a price  determined by making a computation in accordance with the provisions of
Section 5(a) hereof, provided that:

          (ii) The aggregate  maximum number of shares of Stock, as the case may
be, issuable under such options, rights or warrants shall be deemed to be issued
and outstanding at the time such options,  rights or warrants were issued, for a
consideration equal to the minimum purchase price per share provided for in such
options,  rights or warrants  at the time of  issuance,  plus the  consideration
(determined in the same manner as consideration received on the issue or sale of

<PAGE>

shares in  accordance  with the terms of the Warrant),  if any,  received by the
Company for such options,  rights or warrants.  The aggregate  maximum number of
shares of Stock  issuable  upon  conversion  or exchange of any  convertible  or
exchangeable securities shall be deemed to be issued and outstanding at the time
of  issuance  of  such  securities,   and  for  a  consideration  equal  to  the
consideration  (determined in the same manner as  consideration  received on the
issue or sale of shares of Stock in  accordance  with the terms of the  Warrant)
received by the Company for such securities, plus the minimum consideration,  if
any,  receivable by the Company upon the conversion or exchange thereof.  If any
change  shall occur in the price per share  provided  for in any of the options,
rights or warrants referred to in subsection, or in the price per share at which
the securities  referred to in this subsection are  exchangeable,  such options,
rights or warrants or exchange  rights,  as the case may be,  shall be deemed to
have expired or terminated  on the date when such price change became  effective
in respect to shares not theretofore issued pursuant to the exercise or exchange
thereof,  and the  Company  shall be  deemed to have  issued  upon such date new
options,  rights or  warrants  or  exchangeable  securities  at the new price in
respect of the number of shares  issuable  upon the  exercise  of such  options,
rights  or  warrants  or  the  conversion  or  exchange  of  such   exchangeable
securities.

     (c) Subdivision and Combination.  If the Company at any time subdivides (by
any   stock   split,   stock   dividend,    recapitalization,    reorganization,
reclassification  or  otherwise)  the  shares of Stock  subject  to  acquisition
hereunder  into a greater number of shares,  then,  after the date of record for
effecting such  subdivision,  the Exercise Price in effect  immediately prior to
such  subdivision  will be  proportionately  reduced and the number of shares of
Common  Stock  subject to  acquisition  upon  exercise of this  Warrant  will be
proportionately increased. If the Company at any time combines (by reverse stock
split,  recapitalization,  reorganization,  reclassification  or otherwise)  the
shares of Stock  subject  to  acquisition  hereunder  into a  smaller  number of
shares,  then,  after the date of record for  effecting  such  combination,  the
Exercise  Price  in  effect  immediately  prior  to  such  combination  will  be
proportionately  increased  and the number of shares of Common Stock  subject to
acquisition upon exercise of this Warrant will be proportionately decreased.

     (d) Merger or  Consolidation.  In case of any  consolidation of the Company
with,  or merger of the Company  into any other  corporation,  or in case of any
sale or  conveyance  of all or  substantially  all of the assets of the  Company
other than in  connection  with a plan of complete  liquidation  of the Company,
then  as a  condition  of such  consolidation,  merger  or  sale or  conveyance,
adequate  provision  will be made  whereby the  Registered  Holder will have the
right to acquire and receive upon exercise of this Warrant in lieu of the shares
of Common Stock immediately theretofore subject to acquisition upon the exercise
of this Warrant, such shares of stock,  securities or assets as may be issued or
payable  with respect to or in exchange for the number of shares of Common Stock
immediately  theretofore  subject to acquisition and receivable upon exercise of
this  Warrant had such  consolidation,  merger or sale or  conveyance  not taken
place. In any such case, the Company will make  appropriate  provision to insure
that the  provisions  of this Section 5 hereof will  thereafter be applicable as
nearly as may be in  relation  to any shares of stock or  securities  thereafter
deliverable upon the exercise of this Warrant.

     (e) Notice of  Adjustment.  Upon the occurrence of any event which requires
any  adjustment  of the Exercise  Price,  then and in each such case the Company
shall give notice thereof to the Registered Holder, which notice shall state the
Exercise Price resulting from such  adjustment and the increase or decrease,  if

<PAGE>

any, in the number of Warrant  Shares  purchasable  at such price upon exercise,
setting forth in reasonable  detail the method of calculation and the facts upon
which such calculation is based.

     (f)  Adjustment  in  Number of  Securities.  Upon  each  adjustment  of the
Exercise  Price  pursuant  to the  provisions  of this  Section 5, the number of
securities  issuable  upon the exercise of each Warrant shall be adjusted to the
nearest  full amount by  multiplying  a number  equal to the  Exercise  Price in
effect  immediately  prior to such  adjustment  by the number of Warrant  Shares
issuable upon exercise of the Warrants  immediately prior to such adjustment and
dividing the product so obtained by the adjusted Exercise Price.

     (g)  Definition  of Stock.  For the  purpose  of this  Agreement,  the term
"Stock"  shall  mean (i) the class of stock  designated  as Common  Stock in the
Amended and Restated  Articles of Incorporation of the Company as may be amended
as of the  date  hereof,  or (ii)  any  other  class  of  stock  resulting  from
successive  changes  or  reclassifications  of such Stock  consisting  solely of
changes in par value, or from par value to no par value, or from no par value to
par value.

     (h) No Adjustment of Exercise Price in Certain Cases.  No adjustment of the
Exercise Price shall be made:

          (i) Upon  issuance or sale of this Warrant or Warrant  Shares,  or the
other  Warrants and Warrant Shares issued in connection  herewith,  or shares of
Common Stock issuable upon exercise of other options,  warrants and  convertible
securities outstanding as of the date hereof.

          (ii) Upon the issuance or sale of any shares of capital stock,  or the
grant of options exercisable therefor, issued or issuable after the date of this
Warrant,  to directors,  officers,  employees,  advisers and  consultants of the
Company or any  subsidiary  pursuant to any  incentive  or  non-qualified  stock
option plan or agreement,  stock purchase plan or agreement,  stock  restriction
agreement  or  restricted  stock plan,  employee  stock  ownership  plan (ESOP),
consulting  agreement,  stock appreciation right (SAR), stock depreciation right
(SDR),  bonus stock  arrangement,  or such other similar  compensatory  options,
issuances, arrangements, agreements or plans approved by the Board of Directors.

          (iii) Upon the issuance of any shares of capital stock or the grant of
warrants or options (or the  exercise  thereof) as  consideration  for  mergers,
acquisitions,  strategic alliances and other commercial transactions, other than
in connection with a financing transaction.

          (iv) If the  amount  of said  adjustment  shall be less than two cents
($0.02) per security issuable upon exercise of this Warrant, provided,  however,
that in such case any  adjustment  that would  otherwise be required  then to be
made shall be carried forward and shall be made at the time of and together with
the next subsequent  adjustment  which,  together with any adjustment so carried
forward,  shall amount to at least two cents ($0.02) per security  issuable upon
exercise of this Warrant.

<PAGE>

     6. No  Impairment.  The Company  will not, by  amendment  of its charter or
through reorganization,  consolidation,  merger, dissolution,  sale of assets or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this  Warrant  but will at all  times  carry out all such
terms and take all such action as may be reasonably  necessary or appropriate in
order to protect the rights of the holder of this Warrant against impairment.

     7.  Liquidating  Dividends and Other  Distributions.  If the Company pays a
dividend or makes a distribution  on the Common Stock payable  otherwise than in
cash out of earnings or earned surplus  (determined in accordance with generally
accepted accounting principles) except for a stock dividend payable in shares of
Common  Stock  (a  "Liquidating  Dividend")  or  otherwise  distributes  to  its
stockholders  any  assets,   properties,   rights,   evidence  of  indebtedness,
securities  whether  issued by the Company or by another,  or any other thing of
value,  then the Company will pay or distribute to the Registered Holder of this
Warrant,  upon the exercise hereof,  in addition to the Warrant Shares purchased
upon such  exercise,  either (i) the  Liquidating  Dividend that would have been
paid to such  Registered  Holder  if he had been the  owner  of  record  of such
Warrant Shares immediately prior to the date on which a record is taken for such
Liquidating  Dividend or, if no record is taken, the date as of which the record
holders of Common Stock  entitled to such  dividends or  distribution  are to be
determined or (ii) the same property, assets, rights, evidences of indebtedness,
securities  or any other thing of value that the  Registered  Holder  would have
been entitled to receive at the time of such  distribution as if the Warrant had
been exercised immediately prior to such distribution.

     8. Notices of Record Date, Etc. In case:

     (a) the Company  shall take a record of the holders of its Common Stock (or
other stock or  securities  at the time  deliverable  upon the  exercise of this
Warrant) for the purpose of  entitling or enabling  them to receive any dividend
or other distribution,  or to receive any right to subscribe for or purchase any
shares of stock of any class or any other  securities,  or to receive  any other
right; or of any capital  reorganization of the Company, any reclassification of
the capital  stock of the Company,  any  consolidation  or merger of the Company
with or into another  corporation (other than a consolidation or merger in which
the Company is the surviving  entity),  or any transfer of all or  substantially
all  of  the  assets  of  the  Company;  or  of  the  voluntary  or  involuntary
dissolution,  liquidation  or winding-up of the Company,  then, and in each such
case,  the Company will mail or cause to be mailed to the  Registered  Holder of
this  Warrant a notice  specifying,  as the case may be, (i) the date on which a
record is to be taken for the purpose of such dividend,  distribution  or right,
and stating the amount and character of such dividend, distribution or right, or
(ii)  the  effective  date  on  which  such  reorganization,   reclassification,
consolidation,  merger, transfer,  dissolution,  liquidation or winding-up is to
take  place,  and the time,  if any is to be fixed,  as of which the  holders of
record  of  Common  Stock  (or  such  other  stock  or  securities  at the  time
deliverable  upon the  exercise of this  Warrant)  shall be entitled to exchange
their shares of Common Stock (or such other stock or securities)  for securities
or  other  property  deliverable  upon  such  reorganization,  reclassification,
consolidation,  merger, transfer,  dissolution,  liquidation or winding-up.  The
Company will use its  reasonable  best efforts to cause such notice to be mailed
at least ten (10) days prior to the record date or effective  date for the event
specified in such notice  unless such prior  notice is waived by the  Registered
Holder.

<PAGE>

     9. No Rights of  Stockholders.  Subject to other  Sections of this Warrant,
the  Registered  Holder shall not be entitled to vote,  to receive  dividends or
subscription  rights, nor shall anything contained herein be construed to confer
upon the Registered  Holder,  as such, any of the rights of a stockholder of the
Company,  including  without  limitation  any right to vote for the  election of
directors  or upon any matter  submitted  to  stockholders,  to give or withhold
consent to any corporate action (whether upon any recapitalization,  issuance of
stock,  reclassification  of stock, change of par value or change of stock to no
par value, consolidation, merger, conveyance, or otherwise), to receive notices,
or otherwise, until the Warrant shall have been exercised as provided herein.

     10.   Replacement   of  Warrant.   Upon  receipt  of  evidence   reasonably
satisfactory  to the Company of the loss,  theft,  destruction  or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of an
indemnity agreement  reasonably  satisfactory to the Company, or (in the case of
mutilation)  upon surrender and  cancellation of this Warrant,  the Company will
issue, in lieu thereof, a new Warrant of like tenor.

     11. Mailing of Notices,  Etc. All notices and other communications from the
Company to the Registered  Holder of this Warrant shall be mailed by first-class
certified or registered mail,  postage prepaid,  to the address furnished to the
Company in writing by the last Registered  Holder of this Warrant who shall have
furnished  an  address  to  the  Company  in  writing.  All  notices  and  other
communications  from the  Registered  Holder of this  Warrant  or in  connection
herewith to the Company shall be mailed by  first-class  certified or registered
mail,  postage prepaid,  to the Company at its principal office set forth below.
If the Company should at any time change the location of its principal office to
a place other than as set forth below,  then it shall give prompt written notice
to the  Registered  Holder of this Warrant and thereafter all references in this
Warrant to the location of its principal  office at the particular time shall be
as so specified in such notice.

     12.  Change or Waiver.  Any term of this  Warrant  may be changed or waived
only by an instrument in writing  signed by the party against which  enforcement
of the change or waiver is sought.

     13.  Headings.  The  headings in this Warrant are for purposes of reference
only and shall not limit or  otherwise  affect the meaning of any  provision  of
this Warrant.

     14.  Severability.  If any  provision of this  Warrant  shall be held to be
invalid and unenforceable,  such invalidity or unenforceability shall not affect
any other provision of this Warrant.
<PAGE>

     15.  Governing  Law and  Submission to  Jurisdiction.  This Warrant will be
governed by and construed in  accordance  with the laws of the State of New York
without regard to principles of conflict or choice of laws of any  jurisdiction.
The parties hereby agree that any action, proceeding or claim against it arising
out of, or relating in any way to this Warrant  shall be brought and enforced in
the  courts  of  the  State  of  New  York,  and  irrevocably   submit  to  such
jurisdiction, which jurisdiction shall be exclusive.

     16. Certificate. Upon request by the Registered Holder of this Warrant, the
Company  shall  promptly  deliver to such holder a  certificate  executed by its
President  or  Chief  Financial  Officer  setting  forth  the  total  number  of
outstanding  shares of capital stock,  convertible debt instruments and options,
rights,  warrants or other  agreements  relating to the purchase of such capital
stock or  convertible  debt  instruments,  together with its  calculation of the
number of shares remaining available for issuance upon exercise of this Warrant,
and a certificate of the accuracy of the statements set forth therein.

     17.  Supplements and Amendments.  The Company and the Registered Holder may
from  time to time  supplement  or  amend  this  Warrant  in  order  to cure any
ambiguity,  to correct or supplement any provision contained herein which may be
defective  or  inconsistent  with any  provision  herein,  or to make any  other
provisions in regard to matters or questions arising hereunder which the Company
and the Holder may deem necessary or desirable.

     18.  Successors.  All the covenants and provisions of this Warrant shall be
binding upon and inure to the benefit of the Company and the  Registered  Holder
and their respective successors and assigns hereunder.

     19. Benefits of this Warrant. Nothing in this Warrant shall be construed to
give to any  person,  entity  or  corporation  other  than the  Company  and the
Registered  Holder of the  Warrant  Certificate  any legal or  equitable  right,
remedy or claim under this  Warrant;  and this Warrant shall be for the sole and
exclusive  benefit  of the  Company  and the  Registered  Holder of the  Warrant
Certificate.

     20.   Counterparts.   This  Warrant  may  be  executed  in  any  number  of
counterparts and each such counterpart shall for all purposes be deemed to be an
original,  and such counterparts shall together  constitute but one and the same
instrument.

<PAGE>

     IN WITNESS WHEREOF, VITAL LIVING, INC. has caused this Warrant to be signed
by its duly authorized  officers under its corporate seal and to be dated on the
day and year first written above.

                           VITAL LIVING, INC.

                           By:_________________________________

                           Name: Stuart A. Benson
                           Title:   President

                           Principal Office:      5080 North 40th Street
                                                  Suite 105
                                                  Phoenix, AZ 85018
                                                  Telecopier No.: (602) 952-7129

<PAGE>

                                     ANNEX A

                             NOTICE OF EXERCISE FORM

To:                                                                    Dated:

     In  accordance  with the  Warrant  enclosed  with this Form of  Election to
Purchase,  the undersigned hereby  irrevocably elects to purchase  _____________
shares of common stock  ("Common  Stock"),  $.001 par value per share,  of Vital
Living, Inc.  ("Company") and encloses herewith $________ in cash,  certified or
official bank check or checks or other  immediately  available funds,  which sum
represents  the  aggregate  Exercise  Price (as defined in the  Warrant) for the
number of shares of Common  Stock to which  this Form of  Election  to  Purchase
relates,  together with any applicable taxes payable by the undersigned pursuant
to the Warrant.

                                       or

     In  accordance  with the  Warrant  enclosed  with this Form of  Election to
Purchase,  the undersigned hereby  irrevocably  elects to purchase  ____________
shares of common stock  ("Common  Stock"),  $.001 par value per share,  of Vital
Living, Inc. ("Company") by surrender of the unexercised portion of the attached
Warrant (with a "Market Value" of $____).

     The  undersigned  hereby  represents,  warrants  to, and agrees  with,  the
Company that:

          (i) He is  acquiring  the  Warrant  Shares for his own account and not
     with a view towards the distribution thereof;

          (ii) He has received a copy of all reports and  documents  required to
     be filed by the Company  with the  Commission  pursuant  to the  Securities
     Exchange Act of 1934, as amended, within the last 12 months and all reports
     issued by the Company to its stockholders;

          (iii)  He  understands  that he must  bear  the  economic  risk of the
     investment  in the  Warrant  Shares,  which  cannot be sold unless they are
     registered  under  the  Securities  Act of  1933  (the  "1933  Act")  or an
     exemption  therefrom is available  thereunder and that the Company is under
     no obligation to register the Warrant Shares for sale under the 1933 Act;

          (iv) He is aware that the  Company  shall place stop  transfer  orders
     with its transfer  agent against the transfer of the Warrant  Shares in the
     absence of  registration  under the 1933 Act or an  exemption  therefrom as
     provided herein;

                                                 Signature:
                                                 Address:

<PAGE>

                                     ANNEX B

                                 ASSIGNMENT FORM

     FOR VALUE RECEIVED, _________________________________ hereby sells, assigns
and transfers all of the rights of the  undersigned  under the attached  Warrant
with respect to the number of shares of Common Stock  covered  thereby set forth
below, unto:

Name of Assignee                  Address                         No. of Shares

                                          Dated:

                                          Signature:
                                                    -
                                          Dated:

                                          Witness:SECURITY AGREEMENT

     AGREEMENT  dated as of December 15, 2003,  between  VITAL  LIVING,  INC., a
Nevada  corporation,  having an address at 5080  North 40th  Street,  Suite 105,
Phoenix,  Arizona  85018 (the  "Company"),  the persons and  entities  listed on
Schedule I hereto,  as  Schedule  I may be amended  from time to time to include
Additional Investors (as defined in Section 6.7) in accordance with Sections 6.7
of this Agreement (the "Investors") and HCFP/BRENNER SECURITIES,  LLC, having an
address at 888 Seventh  Avenue,  17th Floor,  New York, New York 10106, as Agent
(as hereinafter defined).

                              W I T N E S S E T H:
                               - - - - - - - - - -

                                   ARTICLE I
                 THE SENIOR FINANCING/GRANT OF SECURITY INTEREST

     SECTION 1.1 Private  Offering of Senior  Notes and  Warrants.  Concurrently
with the execution of this  Agreement,  the Company has  consummated  an initial
closing of a private offering ("Offering") of its 12% senior secured convertible
notes in the  aggregate  principal  amount of $3,087,738  ("Initial  Notes") and
warrants  ("Initial  Warrants") to purchase a 3,087,738  shares of the Company's
Common Stock.  Subsequent closings may take place at which the Company may issue
additional  notes of like tenor to the Initial  Notes  ("Additional  Notes") and
additional warrants ("Other Warrants") will be issued. At any subsequent closing
of the  Offering,  the  Additional  Investors  (as defined in Section  6.7) will
become  parties to this  Agreement in  accordance  with Section 6.7. The Initial
Notes and  Additional  Notes are  hereinafter  referred to  collectively  as the
"Notes"  and  individually  as a  "Note."  The  Initial  Warrants  and the Other
Warrants are  collectively  referred to as the "Warrants" and  individually as a
"Warrant."  HCFP/Brenner  Securities,  LLC is acting as the agent for all of the
Investors in the Offering ("Agent").  This Security Agreement is being signed in
connection with the Offering to secure the indebtedness underlying the Notes.

     SECTION 1.2 Notes.  Concurrently with the execution of this Agreement,  the
Company has executed and  delivered to each  Investor,  a Note in the  principal
amount of such Investor's investment in the Offering.
<PAGE>

     SECTION 1.3 Grant of Security Interest.  In consideration of the receipt of
the funds raised in the Offering and to secure the Company's obligation to repay
to the Investors the principal amount and interest represented by the Notes, the
Company  hereby grants to the  Investors a continuing  first  priority  security
interest in and to all of the assets of the  Company,  whether now or  hereafter
existing or now owned or hereafter acquired and wherever located,  of every kind
and  description,  tangible or  intangible,  including,  but not limited to, all
goods, equipment,  inventory,  documents,  accounts,  deposit accounts,  chattel
paper, instruments,  investment property, money, general intangibles (including,
but not  limited  to,  intellectual  property  and all rights  relating  to such
intellectual property),  credits, claims, demands and any other property, rights
and interests of the Company,  all substitutions  and replacements  therefor and
all products and proceeds  thereof,  new value  thereof or proceeds of insurance
thereon  (collectively,   "Collateral").   Notwithstanding  the  foregoing,  the
Investors  acknowledge  and agree that the lien  granted  by the  Company to the
Investors in the Collateral may be subordinated to the extent  necessary for the
Company to obtain a financing secured only by the Company's accounts  receivable
and inventory ("Allowed Financing").

     The  security  interest  granted  herein to each  Investor is an  undivided
interest in the Collateral as a tenant-in-common with every other Investor. Each
Investor  may realize upon the  Collateral,  subject to and in  accordance  with
Section 4 hereof,  to the extent of its Investment  Percentage  (as  hereinafter
defined),  as  computed  from  time to  time.  The  amount  of  each  Investor's
"Investment  Percentage"  shall  be the  percentage  computed  by  dividing  the
outstanding  principal and interest owed to such Investor  pursuant to its Note,
by the  aggregate  outstanding  principal and interest owed to all the Investors
pursuant to the Notes.

     SECTION 1.4 Financing  Statements.  The Agent,  for itself and on behalf of
each of the Investors,  is hereby authorized by the Company to sign on behalf of
the  Company  and file  any  documents,  including,  without  limitation,  UCC-1
financing  statements  and/or any other  documents  with any domestic or foreign
government  or regulatory  office or agency,  including the United States Patent
and Trademark  Office,  to perfect  and/or  record the security  interest in the
Collateral  granted  herein  and to file Form  UCC-3  Amendments,  Releases  and
Termination Statements.

                                       2
<PAGE>

     SECTION 1.5  Assignment.  The rights under this  Agreement and the security
interest  granted  hereby  only may be assigned  or  transferred  by an Investor
together with the Note in accordance with the terms thereof.

                                   ARTICLE II
                         REPRESENTATIONS OF THE COMPANY

     SECTION 2.1 In order to induce the  Investors  to lend money to the Company
and purchase the Notes and Warrants,  the Company hereby represents and warrants
to the Investors as follows:

     (a) The Company  has full power to execute  and deliver the Notes,  and the
other  agreements,  instruments and documents  contemplated  hereby and thereby,
including  without  limitation a Uniform  Commercial  Code  Financing  Statement
(collectively the "Other Security Documents"),  and to incur and perform all the
obligations provided for herein and therein.

     (b) The obligations of the Company under this Agreement constitute, and the
obligations of the Company under the Other Security  Documents when executed and
delivered  pursuant  hereto  will  constitute,  the  valid and  legally  binding
obligations  of the  Company  ranking  senior  in all  respects  with all  other
obligations of the Company and enforceable in accordance  with their  respective
terms,  except  (i)  as  such  enforceability  may  be  limited  by  bankruptcy,
insolvency,   reorganization   or  similar  laws  affecting   creditors'  rights
generally,  (ii)  as  enforceability  of  any  indemnification  or  contribution
provision may be limited under the federal and state  securities laws, and (iii)
that the  remedy of  specific  performance  and  injunctive  and other  forms of
equitable relief may be subject to the equitable  defenses and to the discretion
of  the  court   before   which  any   proceeding   therefor   may  be  brought.
Notwithstanding the foregoing,  the lien granted by the Company to the Investors
may be subordinated to the extent necessary to secure the Allowed Financing.

     (c)  The  execution,  delivery  and  performance  by the  Company  of  this
Agreement  and the  Other  Security  Documents  does  not  contravene  any  law,
regulation,  order  or  contractual  restriction  binding  on or  affecting  the
Company, its business or properties.

                                       3
<PAGE>

     (d) No  authorization  or approval or other  action by, and no notice to or
filing with, any  governmental  authority or regulatory body is required for the
due execution,  delivery and performance by the Company of this Agreement or the
matters  contemplated  herein  and for  the  Investors  to  enjoy  the  benefits
conferred hereby except such filings as may be necessary to perfect the security
interest granted the Investors hereunder and under the Other Security Documents.

     (e) The Company is the sole beneficial  owner of the  Collateral.  The lien
granted by the Company to the Investors in the  Collateral  is a first  priority
security  interest,  subject  to such  lien  being  subordinated  to the  extent
necessary  to  secure  the  Allowed  Financing.  There  are no other  mortgages,
pledges, liens, security interests,  claims, encumbrances or charges of any kind
("Encumbrances")  on any of the  Collateral,  other than the liens  permitted by
Section 3.2(b) hereof.

     (f) The  issuance of the Notes and the  granting of a security  interest in
the  Collateral  to the Investors  are  contemporaneous  exchanges for new value
given by the Investors to the Company in an amount equivalent to the value given
by the Company to the Investors.

                                  ARTICLE III
                             THE COMPANY'S COVENANTS

     SECTION 3.1  Affirmative  Covenants.  The Company hereby  covenants that so
long as this  Agreement  remains in effect or any amount due  hereunder or under
the Notes remains outstanding and unpaid, it will, unless otherwise consented to
in writing by Majority Consent of the Note holders (as defined in Section 5.7):

     (a) Do all things  necessary  to preserve and keep in full force and effect
its corporate existence,  including, without limitation, all licenses or similar
qualifications  required by it to engage in its business in all jurisdictions in
which it is at the time so  engaged;  and  continue to engage in business of the
same  general type as  conducted  as of the date  hereof;  and (ii)  continue to
conduct its business  substantially  as now conducted or as otherwise  permitted
hereunder;

                                       4
<PAGE>

     (b)  Pay  and  discharge  promptly  when  due all  taxes,  assessments  and
governmental  charges or levies imposed upon it or upon its income or profits or
in  respect  of its  property  before the same  shall  become  delinquent  or in
default, which, if unpaid, might reasonably be expected to give rise to liens or
charges upon such  properties or any part  thereof,  unless,  in each case,  the
validity  or amount  thereof is being  contested  in good  faith by  appropriate
proceedings  and the Company  has  maintained  adequate  reserves  with  respect
thereto in accordance with GAAP;

     (c) Comply in all material respects with all federal,  state and local laws
and regulations,  orders, judgments, decrees,  injunctions,  rules, regulations,
permits,   licenses,   authorizations   and   requirements   applicable   to  it
(collectively,   "Requirements")  of  all  governmental   bodies,   departments,
commissions,  boards,  companies or associations insuring the premises,  courts,
authorities, officials or officers which are applicable to the Company or any of
its properties,  except where the failure to so comply would not have a material
adverse  effect  ("Material  Adverse  Effect")  on  the  Company  or  any of its
properties;  provided,  however,  that nothing provided herein shall prevent the
Company from contesting the validity or the application of any Requirements;

     (d) Keep proper  records and books of account  with respect to its business
activities,  in  which  proper  entries,   reflecting  all  of  their  financial
transactions,  are made in accordance with GAAP. Such books and records shall be
open at reasonable  times and upon  reasonable  notice to the inspection of each
Investor and the Agent;

     (e) Notify the Agent and the  Investors in writing,  promptly upon learning
thereof, of any litigation or administrative  proceeding commenced or threatened
against the Company which involve a claim in excess of $50,000;

     (f) Promptly pay and  discharge  all taxes,  assessments  and  governmental
charges or levies  imposed upon it or upon its income and  profits,  or upon any
properties  belonging  to it  before  the same  shall be in  default;  provided,
however, that the Company shall not be required to pay any such tax, assessment,
charge or levy which is being contested in good faith by proper  proceedings and
adequate reserves for the accrual of same are maintained if required by GAAP;

                                       5
<PAGE>

     (g) Maintain at all times, preserve,  protect and keep its property used or
useful  in the  conduct  of its  business  in good  repair,  working  order  and
condition,  and from  time  make  all  needful  and  proper  repairs,  renewals,
replacements  and  improvement  thereof as shall be  reasonably  required in the
conduct of its business;

     (h) To the  extent  necessary  for  the  operation  of its  business,  keep
adequately  insured by financially sound reputable  insurers,  all property of a
character usually insured by similar corporations and carry such other insurance
as is usually carried by similar corporations;

     (i) Defend the title to the Collateral  against all persons and against all
claims and demands whatsoever;

     (j) Keep the Collateral free and clear of all further  Encumbrances  except
as authorized herein;

     (k) On at least  twenty (20) days  notice in writing by the Agent,  furnish
further  assurance of title,  execute any written agreement or do any other acts
necessary to effectuate the purposes and provisions of this  Agreement,  execute
any  instrument  or statement  required by law or otherwise in order to perfect,
continue or terminate the security interest of the Investors,  in the Collateral
and pay all costs of filing in connection therewith;

     (l) Retain  possession of the  Collateral and not remove,  sell,  exchange,
assign,  loan, deliver,  lease,  license,  mortgage or otherwise dispose of same
outside of the normal course of business  without the prior  written  consent of
the Agent; and

     (m) Promptly  give notice in writing to the Agent and the  Investors of the
occurrence  of any default or Event of Default (as  hereinafter  defined)  under
this  Agreement  or of any  default  under  any  other  material  instrument  or
agreement to which it is a party.

     SECTION 3.2 Negative  Covenants.  The Company hereby covenants that so long
as this  Agreement  remains in effect or any amount due  hereunder  or under the
Notes remains outstanding and unpaid, it will not, unless otherwise consented to

                                       6
<PAGE>

in writing by the Majority Consent of the Note holders:

     (a)  Create,   incur,   assume  or  suffer  to  exist,   any   indebtedness
(institutional  or  otherwise)  except  (i)  under  the  Notes,  (ii)  which  is
subordinate  in right of payment to the Notes and (iii) in  connection  with the
Allowed Financing;

     (b) Create,  incur,  assume or suffer to exist, any Encumbrance upon any of
its  property  (tangible or  intangible)  or assets,  income or profits  secured
hereunder,  whether  now  owned or  hereafter  acquired,  except  for (i)  liens
contemplated by this Agreement and the Other Security Documents;  (ii) statutory
liens; (iii) purchase money liens and other liens granted in the ordinary course
of business on equipment,  fixtures and similar property;  and (iv) liens which,
singly or in the aggregate,  would not be reasonably expected to have a Material
Adverse  Effect;

     (c)  Guarantee,  assume or otherwise  become  responsible  for (directly or
indirectly) the indebtedness for borrowed funds,  performance,  obligations,  of
any person, or the agreement by the Company or any of its subsidiaries to do any
of the foregoing;

     (d) Except  for the  Company's  existing  obligations  with  respect to its
outstanding classes of preferred stock, declare or pay, directly and indirectly,
any dividends or make any distributions,  whether in cash, property,  securities
or a  combination  thereof,  with respect to (whether by reduction of capital or
otherwise)  any shares of its capital  stock,  except for  dividends  payable in
shares of common stock or preferred stock;

     (e)  Consummate  any merger,  combination  or  consolidation  involving the
Company  (whether in one  transaction  or a related series of  transactions)  in
which the Company is not the  surviving  entity,  or the Company is the survivor
but the owners of the voting  stock of the Company  before the  transaction  own
less than 50% of the voting stock of the Company after the transaction, or sell,
lease, transfer or assign to any persons or otherwise dispose of (whether in one
transaction or a related series of transactions) all or substantially all of its
consolidated properties or assets (whether now owned or hereafter acquired);

                                       7
<PAGE>

     (f) Purchase or acquire any stock, obligations, assets or securities of, or
any interest in, or make any capital  contribution  or loan or advance of money,
credit or property to, any other  person  (excluding,  for the purposes  hereof,
customary  advances  made to the Company's  officers,  director and employees to
cover business expenses), or make any other investments, except that the Company
may  purchase  or  acquire  (i)  other  businesses,  whether  by  asset or stock
acquisition or merger; (ii) existing subsidiaries or subsidiaries formed for the
purposes of facilitating  acquisitions or carrying out the ordinary  business of
the Company;  (iii)  certificates of deposits of any commercial banks registered
to do business in any state of the United States  having  capital and surplus in
excess of $50,000,000; (iv) readily marketable, direct obligations of the United
States  government or any agency  thereof which are backed by the full faith and
credit of the United  States;  and (v)  investments in prime  commercial  paper;
provided, however, that in each case mentioned in (iii), (iv) or (v) above, such
obligations  shall  mature  not more than 180 days from the date of  acquisition
thereof; and

     (g) Sell,  transfer,  discount  or  otherwise  dispose of any claim or debt
owing to it, including,  without limitation,  any notes,  accounts receivable or
other rights to receive payment, except for reasonable  consideration and in the
ordinary course of business.

                                   ARTICLE IV
                              DEFAULT; ACCELERATION

     SECTION  4.1 Events of  Default.  The  occurrence  of any of the  following
events shall constitute an Event of Default hereunder:

     (a) the Company shall (i) fail to pay any amounts owed under the Notes when
due  (provided  such  failure  has not been cured  within 10 days  after  notice
thereof)  or (ii)  have an  event  of  default  occur  and be  continuing  under
indebtedness  of the Company of more than  $250,000  (other than the Notes) such
that the holders of such  indebtedness  have declared the outstanding  principal
and accrued interest to be immediately due and payable; or

                                       8
<PAGE>

     (b) if the Company shall:

          (i) admit in writing its inability to pay its debts  generally as they
     become due;

          (ii) file a petition in bankruptcy or a petition to take  advantage of
     any insolvency act;

          (iii) make an assignment for the benefit of creditors;

          (iv)  consent to the  appointment  of a  receiver  of the whole or any
     substantial part of its assets;

          (v) on a petition in  bankruptcy  filed  against it, be  adjudicated a
     bankrupt; or

          (vi) file a petition or answer seeking  reorganization  or arrangement
     under the Federal bankruptcy laws or any other applicable law or statute of
     the United States of America or any State, district or territory thereof;

     (c) if a court of competent jurisdiction shall enter an order, judgment, or
decree  appointing,  without the consent of the Company, a receiver of the whole
or any substantial  part of the Company's  assets,  and such order,  judgment or
decree shall not be vacated or set aside or stayed  within 90 days from the date
of entry thereof;

     (d) if,  under the  provisions  of any  other law for the  relief or aid of
debtors, any court of competent  jurisdiction shall assume custody or control of
the whole or any  substantial  part of  Company's  assets  and such  custody  or
control  shall  not be  terminated  or  stayed  within  90 days from the date of
assumption of such custody or control; or

     (e) the Company  shall  default (and not cure within 10 days after  written
notice  of  such  default)  in the  performance  of,  or  violate  any  material
representation or warranty contained in this Agreement,  the Securities Purchase
Agreement pursuant to which the Notes were issued and/or the Registration Rights
Agreement or in any written statement pursuant thereto or hereto, or any report,
financial  statement or  certificate  made or delivered to the  Investors by the
Company  shall be untrue or incorrect in any  material  respect,  as of the date
when made or deemed made.

                                       9
<PAGE>

     SECTION 4.2 Acceleration. In addition to any other remedies provided by the
Notes,  upon the  occurrence of an Event of Default,  the  Investors  and/or the
Agent on behalf of the Investors may, by notice to the Company,  take any or all
of the following actions,  without prejudice to the rights of the holders of any
Other Notes, to enforce the Investors'  claims against the Company:  (i) declare
the principal of and any accrued  interest and all other  amounts  payable under
the Notes to be due and payable,  whereupon the same shall become  forthwith due
and payable without  presentment,  demand,  protest or other notice of any kind,
all of which are  hereby  waived by the  Company,  (ii)  enforce  or cause to be
enforced  any  remedy  provided  under  this  Agreement  or the  Other  Security
Documents,  or (iii) exercise any other remedies  available at law or in equity,
including specific  performance of any covenant or other agreement  contained in
this Agreement.  In addition to any other remedies  provided by the Notes,  upon
the  occurrence  of an Event of  Default  as set  forth in  Section  4.1 of this
Agreement, then without prejudice to the rights and remedies specified in clause
(iii) above,  the Notes and other  obligations  of the Company  pursuant to this
Agreement shall  automatically  be immediately due and payable with interest and
other fees, if any, thereon without notice, demand or any other act by the Agent
or any Investor.

     SECTION 4.3 Remedies.

     (a) On the occurrence of an Event of Default and/or  acceleration  pursuant
to Section 4.2, the  Investors and the Agent on behalf of the  Investors,  shall
have the following  rights and remedies,  which are cumulative in nature and are
in  addition  to the  rights  set forth in the  Notes  and shall be  immediately
available to the Investors:

          (i) All rights and remedies provided by law, including but not limited
     to those provided by the Uniform  Commercial  Code, and equitable  remedies
     for specific performance and injunctive relief;

          (ii) All rights and remedies provided in this Agreement; and

                                       10
<PAGE>

          (iii) All rights and remedies provided in the Notes and Other Security
     Documents.

     (b) Upon any default by the Company hereunder,  the Investors and the Agent
on behalf of the Investors,  shall have all the rights,  remedies and privileges
with respect to repossession, retention and sale of any or all of the Collateral
of the Company and disposition of the proceeds as are accorded by the applicable
sections of the Uniform Commercial Code.

     (c) Upon any default by the Company hereunder and upon demand of the Agent,
the Company shall  assemble the Collateral and make it available to the Agent at
the place and at the time designated in the demand.

                                    ARTICLE V
                                    THE AGENT

     SECTION 5.1 Authorization.

     (a) Each Investor has irrevocably authorized the Agent, as agent hereunder,
to take such  action on its behalf and as its agent  under this  Agreement,  the
Note  executed in favor of such  Investor  and all other  documents  executed in
connection therewith,  and to exercise such powers as are specifically delegated
to it hereunder  and  thereunder,  including,  without  limitation,  powers with
respect to the  enforcement  and  collection of the  obligations  underlying the
Notes,  and to exercise such other powers as are reasonably  incidental  thereto
and the Agent has agreed to act in such capacity;  provided,  however,  that the
Agent shall not,  without the express  authorization  of the Majority Consent of
the Note holders,  be  authorized to waive any payment  default under the Notes.
Notwithstanding  anything to the contrary  herein,  the Agent is  authorized  to
enter into any  intercreditor or other agreement or other  instruments on behalf
of the  Investors  with  respect to the  Collateral,  including  agreements  and
instruments necessary to implement the Allowed Financing.

     (b) Except as set forth in subparagraph (a) directly above, the Agent shall
not be required to, but may, in its sole discretion,  exercise any discretion or
take any action,  but shall be  required  to act or to refrain  from acting (and
shall be fully  protected  in so  acting or  refraining  from  acting)  upon the
instructions of the Majority Consent of the Note holders,  and such instructions
shall be binding upon all the Investors; provided, however, that the Agent shall
not be required to take any action which exposes the Agent to personal liability
or which is contrary to this Agreement or applicable law.

                                       11

<PAGE>

     SECTION 5.2 Notices.

     (a) The Agent shall transmit promptly to each Investor each notice received
by it from the Company hereunder which the Company is not required to furnish to
the Investors and each Investor shall transmit promptly to the Agent each notice
received by it from the Company which is not otherwise  required to be delivered
to the Agent by the terms hereof.  The Agent shall be under no obligation toward
any Investor to ascertain or inquire as to the  performance or observance of any
of the terms,  covenants or conditions hereof to be performed or observed by the
Company,  but the Agent and each Investor shall  promptly  notify one another of
any Event of Default of which it has actual knowledge.

     (b) Each Investor  expressly  authorizes  the Agent to collect all sums due
such Investor under this Agreement and the Other Security Documents,  other than
regular  principal and interest  payments made by the Company on the Notes.  The
Agent shall promptly disburse to the Investors (in proportion to the outstanding
Investment  Percentage of each Investor) any such available funds received by it
for the benefit of the Investors.

     SECTION 5.3 Exculpation. In exercising its duties and powers hereunder, the
Agent shall exercise the same care which it would exercise in dealing with loans
for its own account,  but neither the Agent nor any of its directors,  officers,
employees or  attorneys  shall be  responsible  for the truth or accuracy of any
representations  or  warranties  given  or  made  herein  or for  the  validity,
effectiveness,  sufficiency or  enforceability  of this Agreement,  or any Other
Security Documents, and the Agent or any of its directors,  officers,  employees
or attorneys shall not be liable to any of the Investors for any action taken or
omitted  to be taken by it or any of them  under  this  Agreement  or the  Other
Security Documents.  Each of the Investors  represents and warrants to the Agent
that it has made its own independent judgment with respect to entering into this
Agreement and the Other  Security  Documents  and  undertaking  its  obligations
hereunder  and  thereunder.  Each  Investor  also  acknowledges  that  it  will,
independently  and without  reliance  upon the Agent or any other  Investor  and

                                       12
<PAGE>

based on such  documents and  information  as it shall deem  appropriate  at the
time,  continue to make its own credit  decisions in taking or not taking action
under this Agreement and the Other Security Documents. Except for the accounting
for monies actually received by it hereunder, the Agent shall have no duty as to
any  Collateral  or as to the taking of any necessary  steps to preserve  rights
against prior parties or any other rights pertaining to the Collateral.  Neither
the Agent nor any of its principals, directors, officers, employees or attorneys
shall have any  responsibility  (1) to the  Company on account of the failure or
delay  in  performance  or  breach  of any  Investor  of any of its  obligations
hereunder,  or (2) to any  Investor  on  account  of the  failure of or delay in
performance  or  breach  by any  other  Investor  or the  Company  of any of its
obligations hereunder.

     SECTION 5.4 Reliance. The Agent, as Agent hereunder,  (a) shall be entitled
to  rely on any  communication,  instrument  or  document  believed  by it to be
genuine  or  correct  and to have been  signed  or sent by a person  or  persons
believed  by it to be the proper  person or  persons;  (b) shall be  entitled to
consult  with  legal  counsel,   independent   public   accountants   and  other
professional  advisers  and experts  selected by it, and shall not be liable for
any action taken or omitted to be taken in good faith by it in  accordance  with
the advice of such  counsel,  accountants  or experts;  (c) makes no warranty or
representation  to any Investor and shall not be responsible to any Investor for
any statements, warranties or representations made in or in connection with this
Agreement;  (d) shall not have any duty to  ascertain  or to  inquire  as to the
performance  or observance of any of the terms,  covenants or conditions of this
Agreement on the part of the Company or to inspect the property  (including  the
books and records) of the Company;  (e) shall not be responsible to any Investor
for  the  due  execution,  legality,  validity,   enforceability,   genuineness,
sufficiency  or venue of this  Agreement  or any other  instrument  or  document
furnished  pursuant hereto; and (f) shall incur no liability under or in respect
of  this  Agreement  by  acting  upon  notice,  consent,  certificate  or  other
instrument  or writing  (which may be by telegram,  telecopier,  cable or telex)
believed by it to be genuine and signed or sent by the proper party or parties.

                                       13
<PAGE>

     SECTION 5.5  Expenses  and  Indemnification.  Each  Investor  agrees (a) to
reimburse the Agent, as agent hereunder,  on demand, pro rata in accordance with
its Investment  Percentage,  for all expenses  incurred by the Agent,  including
reasonable  attorneys'  fees, in  connection  with the  preparation,  execution,
operation  and  enforcement  of,  or  legal  advice  in  respect  of  rights  or
responsibilities  under, this Agreement and any document delivered in connection
herewith,  to the  extent  that  such  expenses  are not  timely  reimbursed  or
reimbursable  by the Company,  and (b) to indemnify  and hold harmless the Agent
and any of its principals, directors, officers or employees, on demand, pro rata
in accordance with its Investment Percentage,  from and against all liabilities,
obligations,  losses,  damages,  penalties,  actions,  judgments,  suits, costs,
expenses or disbursements of any kind or nature  whatsoever which may be imposed
on, incurred by, or asserted against the Agent in any way relating to or arising
out of the Other Security  Documents or any action taken or omitted by the Agent
under the Other  Security  Documents,  to the  extent  that  expenses  and costs
incurred by it in  connection  with such  liability  are not  reimbursed  by the
Company;  provided  that no  Investor  shall be liable  for any  portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements  resulting from the Agent's gross negligence or
willful misconduct.

     SECTION 5.6 Other  Investors.  None of the Investors  shall be deemed to be
agent of any other Investors;  none of such Investors or any of their respective
directors, officers or employees shall have any responsibility to the Company on
account of the failure or delay in  performance  or breach of any other Investor
of any of its  obligations  hereunder or to any other Investor on account of the
failure  of or delay in  performance  or  breach by any  other  Investor  or the
Company of its obligations hereunder.

     SECTION 5.7 Removal or  Resignation  of Agent.  The Agent may resign at any
time by giving  written  notice thereof to the Investors and the Company and may
be removed at any time, with or without cause,  by the "Majority  Consent of the
Note holders"  (defined  below),  and upon any such  resignation  or removal the
Majority Consent of the Note holders shall have the right to appoint a successor
Agent.  "Majority  Consent  of the Note  holders"  shall  mean any  Investor  or
Investors  holding Notes  evidencing,  in the aggregate,  an amount equal to not
less than 50.1% of the aggregate principal amount of all Notes then outstanding.
If no successor  Agent shall have been so  appointed by the Majority  Consent of
the Note holders,  and shall have accepted such appointment,  within thirty (30)
days after the retiring  Agent's giving of notice of resignation or the Majority

                                       14
<PAGE>

Consent of the Note holders'  removal of the retiring  Agent,  then the retiring
Agent may,  on behalf of the  Investors,  appoint a  successor  Agent.  Upon the
acceptance by a successor  Agent of its  appointment  as Agent  hereunder,  such
successor  Agent  shall  thereupon  succeed  to and become  vested  with all the
rights,  powers,  privileges and duties of the retiring Agent,  and the retiring
Agent shall be discharged from its duties and obligations  under this Agreement.
After any  retiring  Agent's  resignation  or removal  hereunder  as Agent,  the
provisions  of this Section 5 shall inure to its benefit as to any actions taken
or omitted to be taken by it while it was Agent under this Agreement.

     SECTION  5.8 Fees and  Expenses of Agent.  Upon any Event of  Default,  the
reasonable  attorneys'  fees and the  legal  and other  expenses  for  pursuing,
searching for, receiving,  taking, keeping, storing, advertising for the sale of
and selling the Collateral incurred by the Agent shall be chargeable to and paid
by the Company.

                                   ARTICLE VI
                                  MISCELLANEOUS

     SECTION 6.1 Notices.  Any and all  notices,  requests,  demands,  consents,
approvals  or other  communications  required or permitted to be given under any
provision of this  Agreement  shall be in writing and shall be deemed given upon
personal delivery or the mailing thereof by first class, registered or certified
mail, return receipt requested,  postage prepaid, by telecopier or facsimile, or
by overnight  delivery  service or by courier service to the addresses listed at
the head of this  Agreement  with respect to the Company and with respect to the
Investors to the respective addresses and/or telecopier/facsimile numbers listed
on Schedule I hereto.  Any party may change its address for the purposes of this
Agreement by notice to the other party given as aforesaid.

     SECTION 6.2 No Waiver;  Cumulative Remedies.  No failure to exercise and no
delay in exercising, on the part of the Investors, any right, power or privilege
hereunder or under the Notes or any Other Security  Documents shall operate as a
waiver thereof;  nor shall any single or partial exercise of any right, power or

                                       15
<PAGE>

privilege  hereunder  preclude  any other or  further  exercise  thereof  or the
exercise of any other right, power or privilege.  The rights and remedies herein
provided are cumulative and not exclusive of any rights or remedies  provided by
law. No modification, or waiver of any provision of this Agreement or the Notes,
no consent to any departure by the Company from the provisions hereof or thereof
shall be  effective  unless the same  shall be  effective  only in the  specific
instance and for the purpose for which it is given.  The provisions set forth in
Articles III and IV of this Agreement may be waived by written  Majority Consent
of the Note  holders.  No notice to the Company shall entitle the Company to any
other or  further  notice in other or  similar  circumstances  unless  expressly
provided for herein.  No course of dealing between the Company and the Investors
shall  operate  as a waiver of any of the  rights of the  Investors  under  this
Agreement.

     SECTION 6.3 Captions.  The captions of the various sections and subsections
of this Agreement have been inserted only for the purposes of  convenience,  and
shall not be deemed in any manner to modify, explain, enlarge or restrict any of
the provisions of this Agreement.

     SECTION  6.4  Payment  of Fees.  The  Company  agrees  to pay all costs and
expenses of the Investors  and the Agent in enforcing or  preserving  any of the
rights and remedies  available to the Investors under this Agreement,  the Notes
or under any other documents,  instruments or writings executed and delivered to
the Investors or the Agent in connection herewith including, without limitation,
legal fees, costs and  disbursements  of the Investors' or Agent's  attorneys in
the enforcement thereof.

     SECTION 6.5 Liability for  Deficiency.  The Company shall remain liable for
any deficiency relating to the obligations underlying the Notes resulting from a
sale of the Collateral and shall pay any such deficiency forthwith on demand.

     SECTION 6.6 Survival of Agreements.  All  agreements,  representations  and
warranties made herein and in any certificates  delivered  pursuant hereto shall
survive the  execution and delivery of this  Agreement,  the Notes and the Other
Security  Documents,  and shall  continue  in full  force and  effect  until the
indebtedness of the Company under the Notes and all other obligations  hereunder
and  thereunder  have been paid in full.  The  provisions  of Section  1.3 shall
survive the exercise of the Investors' rights under the Notes.

                                       16
<PAGE>

     SECTION 6.7  Additional  Investors.  In the event that, at any time or from
time to time,  the  Company  holds an  additional  closing  with  respect to the
Offering and issues Additional Notes to additional  investors  (collectively the
"Additional  Investors"  and  individually  an  "Additional  Investor"),   as  a
condition  precedent  to such  closing  and Note  issuance,  the  Company  shall
countersign a copy of this Agreement with each Additional Investor and each such
Additional  Investor  shall agree to sign a copy of this  Agreement  (for and on
behalf of  himself or itself,  his or its legal  representatives  and his or its
transferees  and  assigns)  thereby  agreeing  to be  bound  by  all  applicable
provisions  of  this  Agreement  as a party  hereto  and in the  capacity  of an
Investor.  Except as provided  herein,  upon any such  additional  closing  with
respect  to the  Offering  and  Note  issuance,  all  references  herein  to the
Investors  or to any  Investor  shall  thereafter  be  deemed  to  include  such
Additional Investor,  and upon such closing, each such Additional Investor shall
be added to Schedule I.

     SECTION  6.8  Amendments.  Except as set forth  above in Section  6.7,  the
Company and Agent may amend this Agreement only by written agreement between the
Company  and the Agent  upon  receipt of  written  Majority  Consent of the Note
holders;  provided, that no such amendment shall have the effect of modifying in
any manner the definition of "Majority Consent of the Note holders" set forth in
Section 5.7.

     SECTION  6.9 Third  Party  Beneficiary.  To the extent  that the Agent,  in
accordance  with Section 5.1(a) herein,  enters into any agreement or instrument
pursuant to which a third party is granted  senior  rights to the  Collateral or
any portion  thereof,  the parties hereto agree that such third party shall be a
third party beneficiary of this Agreement.

     SECTION 6.10  Successors and Assigns.  This Agreement shall be binding upon
and inure to the benefit of the Company and the Investors  and their  respective
successors  and assigns,  except that the Company may not transfer or assign any
of its rights or interests  hereunder  without the prior written  consent of the
Investors,  which  consent may be given or withheld in the  Investors'  absolute
discretion.  An Investor may assign this  Agreement  and its rights or interests
hereunder in accordance with Section 1.5 hereof.

                                       17
<PAGE>

     SECTION  6.11  Construction  of  Agreement;  Jurisdiction  and Venue.  This
Agreement, the Notes and Other Security Documents and the rights and obligations
of the parties  hereunder and thereunder shall be governed by, and construed and
interpreted in accordance with, the law of the State of New York, without regard
to  principles  of  conflicts  of law.  THE  COMPANY AND EACH  INVESTOR,  IN ANY
LITIGATION  IN WHICH ANY  INVESTOR  OR THE  COMPANY  SHALL BE AN ADVERSE  PARTY,
WAIVES TRIAL BY JURY,  WAIVES THE RIGHT TO CLAIM THAT A FORUM OR VENUE SPECIFIED
HEREIN IS AN  INCONVENIENT  FORUM OR VENUE AND WAIVES THE RIGHT TO INTERPOSE ANY
SETOFF, DEDUCTION OR COUNTERCLAIM OF ANY NATURE OR DESCRIPTION,  AND IRREVOCABLY
CONSENTS TO THE JURISDICTION OF THE NEW YORK STATE SUPREME COURT,  COUNTY OF NEW
YORK, AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK
IN ANY SUCH  SUIT,  ACTION OR  PROCEEDING,  AND THE  COMPANY  AND EACH  INVESTOR
FURTHER AGREE TO ACCEPT AND ACKNOWLEDGE SERVICE OF ANY AND ALL PROCESS WHICH MAY
BE SERVED UPON THEM IN ANY SUCH SUIT, ACTION OR PROCEEDING CERTIFIED MAIL TO THE
ADDRESS AS SET FORTH ON THE COVER OF THIS  AGREEMENT WITH RESPECT TO THE COMPANY
AND ON SCHEDULE I HERETO WITH RESPECT TO THE INVESTORS. If any of the provisions
of this Agreement shall be or become illegal or unenforceable under any law, the
other provisions shall remain in full force and effect.

     SECTION 6.12 Interest.  Anything in the  Agreement,  the Notes or the Other
Security  Documents to the contrary  notwithstanding,  the  Investors  shall not
charge, take or receive, and the Company shall not be obligated to pay, interest
in excess of the maximum rate from time to time permitted by applicable law.

     SECTION 6.13 Currency. All amounts of currency expressed hereunder or under
the Notes or the Other Security Documents shall refer to United States dollars.

                                       18

<PAGE>

     SECTION 6.14  Counterparts.  This  Agreement may be signed in any number of
counterparts  with the same effect as if the signatures to each counterpart were
upon a single instrument,  and all such counterparts together shall be deemed an
original of this Agreement.

                                       19
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                            VITAL LIVING, INC.

                                            By:_________________________________
                                                     [Name and Title]

                                            HCFP/BRENNER SECURITIES, LLC, AGENT

                                            By:_________________________________
                                                     [Name and Title]

                                            INVESTORS LISTED ON SCHEDULE I

                                       20
<PAGE>

                          [COUNTERPART SIGNATURE PAGE]

         IN WITNESS WHEREOF, the following party hereto has executed this
Security Agreement, dated as of December _____, 2003, indicating its intent to
be bound by the terms and conditions of the Security Agreement, as of the date
set forth below.

                                             ______________________________
                                                 [NAME OF INVESTOR]

Date:_______________________________      By:______________________________
                                                 Name:
                                                 Title:
                                                 Address for Notices:

ACCEPTED AS OF

December __, 2003

                               VITAL LIVING, INC.

By:______________________________________
Name:
Title:

                                       21
<PAGE>

                                   SCHEDULE I

                                LIST OF INVESTORS

                                                 Telephone and
Name                       Address               Facsimile Number

                                       i

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